NEW YORK, Oct. 21 /PRNewswire-FirstCall/ -- Cohen & Steers,
Inc. (NYSE: CNS) reported income from continuing operations
attributable to common shareholders of $7.5 million, or $0.18 per
share (diluted and basic), for the quarter ended September 30,
2009, compared with a loss from continuing operations attributable
to common shareholders of $754,000, or $0.02 per share (diluted and
basic), for the quarter ended September 30, 2008. Total revenue for
the third quarter of 2009 was $33.8 million, a decrease of 30.9%
from $48.9 million for the third quarter of 2008. The third quarter
2008 results from continuing operations attributable to common
shareholders included the previously disclosed after-tax expense of
$0.20 per share associated with losses recorded on
available-for-sale securities and a $0.04 per share increase to tax
expense associated primarily with available-for-sale securities.
After adjusting for these items, earnings per share from continuing
operations attributable to common shareholders would have been
$0.22 for the quarter ended September 30, 2008. For the nine months
ended September 30, 2009, the company recorded a loss from
continuing operations attributable to common shareholders of $13.3
million, or $0.32 per share (diluted and basic), compared with
income from continuing operations attributable to common
shareholders of $27.1 million, or $0.64 per diluted share and $0.65
per basic share, for the nine months ended September 30, 2008. The
2009 results include the previously disclosed after-tax expenses of
$0.69 per share due to other-than-temporary impairment charges
recorded during the period. After adjusting for these items,
earnings per share would have been $0.38 per share for the nine
months ended September 30, 2009. The 2008 results included the loss
on available-for-sale securities and the increase to tax expense
mentioned above. After adjusting for these items, earnings per
share would have been $0.88 per share for the nine months ended
September 30, 2008. Total revenue was $83.7 million for the nine
months ended September 30, 2009, a decrease of 46.7% from $156.9
million for the 2008 period. The decline in revenue was primarily
attributable to lower average assets under management. Assets Under
Management Assets under management were $22.5 billion as of
September 30, 2009, an increase of 37.8% from $16.3 billion at June
30, 2009 and a decrease of 8.7% from $24.6 billion at September 30,
2008. The increase from June 30, 2009 was due to market
appreciation of $4.4 billion and net inflows of $1.8 billion. The
decrease from September 30, 2008 was due to market depreciation of
$2.8 billion, partially offset by net inflows of $705 million.
Average assets under management were $19.5 billion for the quarter
ended September 30, 2009, an increase of 33.1% from $14.6 billion
for the quarter ended June 30, 2009 and a decrease of 25.7% from
$26.2 billion for the quarter ended September 30, 2008. Open-end
mutual funds had net inflows of $386 million during the quarter
ended September 30, 2009, compared with net inflows of $161 million
during the quarter ended June 30, 2009 and net outflows of $321
million during the quarter ended September 30, 2008. Average assets
under management for open-end mutual funds were $5.1 billion for
the quarter ended September 30, 2009, an increase of 34.7% from
$3.8 billion for the quarter ended June 30, 2009 and a decrease of
29.7% from $7.3 billion for the quarter ended September 30, 2008.
Closed-end mutual funds had inflows of $180 million during the
quarter ended September 30, 2009 through an increase in the use of
the funds' credit facility. Average assets under management for
closed-end mutual funds were $4.8 billion for the quarter ended
September 30, 2009, an increase of 23.5% from $3.9 billion for the
quarter ended June 30, 2009 and a decrease of 48.2% from $9.2
billion for the quarter ended September 30, 2008. Institutional
separate accounts had net inflows of $1.2 billion during the
quarter ended September 30, 2009, compared with net inflows of $782
million during the quarter ended June 30, 2009 and net outflows of
$144 million during the quarter ended September 30, 2008. Average
assets under management for institutional separate accounts were
$9.6 billion for the quarter ended September 30, 2009, an increase
of 37.5% from $7.0 billion for the quarter ended June 30, 2009 and
a decrease of 1.3% from $9.7 billion for the quarter ended
September 30, 2008. "We are encouraged by the growth in our assets
under management this quarter," said Martin Cohen, co-chairman and
co-chief executive officer of Cohen & Steers. "Our strong
investment performance and global distribution network put us in an
excellent position to benefit as the economy improves and investor
confidence increases." Results From Continuing Operations Total
revenue was $33.8 million for the three months ended September 30,
2009, a decrease of 30.9% from $48.9 million for the three months
ended September 30, 2008. Operating expenses were $28.0 million for
the three months ended September 30, 2009, a decrease of 19.8% from
$34.9 million for the three months ended September 30, 2008.
Operating income was $5.8 million for the three months ended
September 30, 2009, a decrease of 58.5% from $14.0 million for the
three months ended September 30, 2008. Non-operating income was
$4.2 million for the three months ended September 30, 2009,
compared with non-operating loss of $10.0 million for the three
months ended September 30, 2008. The 2008 period included the
previously disclosed loss on available-for-sale securities of $10.5
million. Excluding this item, non-operating income would have been
$464,000 for the three months ended September 30, 2008. Pretax
income was $10.0 million for the three months ended September 30,
2009, compared with pretax income of $4.0 million for the three
months ended September 30, 2008. Excluding the aforementioned
losses on available-for-sale securities, pretax income would have
been $14.5 million for the three months ended September 30, 2008.
Total revenue was $83.7 million for the nine months ended September
30, 2009, a decrease of 46.7% from $156.9 million for the nine
months ended September 30, 2008. Operating expenses were $77.3
million for the nine months ended September 30, 2009, a decrease of
23.8% from $101.5 million for the nine months ended September 30,
2008. Operating income was $6.4 million for the nine months ended
September 30, 2009, a decrease of 88.5% from $55.4 million for the
nine months ended September 30, 2008. Non-operating loss was $17.5
million for the nine months ended September 30, 2009, compared with
non-operating loss of $6.6 million for the nine months ended
September 30, 2008. Excluding the previously disclosed
other-than-temporary impairment charges of $32.2 million and $10.5
million, non-operating income would have been $14.7 million and
$3.9 million for the nine months ended September 30, 2009 and 2008,
respectively. Pretax loss was $11.1 million for the nine months
ended September 30, 2009, compared with pretax income of $48.8
million for the nine months ended September 30, 2008. Excluding the
aforementioned other-than-temporary impairment charge, pretax
income would have been $21.1 million and $59.3 million for the nine
months ended September 30, 2009 and 2008, respectively. Balance
Sheet Information As of September 30, 2009, cash, cash equivalents,
investments, available-for-sale and seed capital investments
(excluding cash and marketable securities attributable to the
consolidation of the company's long-short global real estate fund)
were $179 million. As of September 30, 2009, stockholders' equity
was $271 million and the company had no long-term or short-term
debt. Conference Call Information Cohen & Steers will hold a
conference call tomorrow, October 22, 2009 at 11:00 a.m. (ET) to
discuss the company's third quarter results. Investors and analysts
can access the live conference call by dialing (866) 672-2663
(domestic) or (973) 582-2772 (international); passcode: 35587855.
Participants should plan to register at least 10 minutes before the
conference call begins. A replay of the call will be available for
two weeks starting at approximately 2:00 p.m. (ET) on October 22,
2009 and can be accessed at (800) 642-1687 (domestic) or (706)
645-9291 (international); passcode: 35587855. Internet access to
the Web cast, which includes audio (listen-only), will be available
on the company's Web site at http://www.cohenandsteers.com/ under
"Corporate Info." The Web cast will be archived on the Web site for
two weeks. About Cohen & Steers, Inc. Cohen & Steers is a
manager of income-oriented equity portfolios specializing in U.S.
and international real estate securities, large cap value stocks,
listed infrastructure and utilities, and preferred securities. The
company also manages alternative investment strategies such as
hedged real estate securities portfolios and private real estate
multimanager strategies for qualified investors. Headquartered in
New York City, with offices in London, Brussels, Hong Kong and
Seattle, Cohen & Steers serves individual and institutional
investors through a broad range of investment vehicles.
Forward-Looking Statements This press release and other statements
that Cohen & Steers may make may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
which reflect the company's current views with respect to, among
other things, its operations and financial performance. You can
identify these forward-looking statements by the use of words such
as "outlook," "believes," "expects," "potential," "continues,"
"may," "will," "should," "seeks," "approximately," "predicts,"
"intends," "plans," "estimates," "anticipates" or the negative
versions of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties. Accordingly, there are or will be important factors
that could cause actual outcomes or results to differ materially
from those indicated in these statements. The company believes that
these factors include, but are not limited to, those described in
the "Risk Factors" section of the company's Annual Report on Form
10-K for the year ended December 31, 2008, which is accessible on
the Securities and Exchange Commission's Web site at sec.gov and on
the company's Web site at http://www.cohenandsteers.com/. These
factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release. The company undertakes no obligation to publicly
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise. Cohen &
Steers, Inc. and Subsidiaries Condensed Consolidated Statements of
Income (Unaudited) For the Periods Ended (in thousands, except per
share data) Three Months Ended % Change From
------------------------------ ------------------ September June
September June September 30, 30, 30, 30, 30, 2009 2009 2008 2009
2008 --------- ----- --------- ----- --------- Revenue Investment
advisory and administration fees $30,929 $23,997 $43,558
Distribution and service fees 2,019 1,695 4,201 Portfolio
consulting and other 879 663 1,178 --- --- ----- Total revenue
33,827 26,355 48,937 28.4% (30.9%) ------ ------ ------ Expenses
Employee compensation and benefits 15,956 14,916 17,815
Distribution and service fees 3,837 3,132 7,017 General and
administrative 6,990 6,668 8,458 Depreciation and amortization
1,072 1,028 1,019 Amortization, deferred commissions 157 188 624
--- --- --- Total expenses 28,012 25,932 34,933 8.0% (19.8%) ------
------ ------ Operating income 5,815 423 14,004 * (58.5%) ----- ---
------ Non-operating income Interest and dividend income - net 100
660 1,608 Income (loss) from marketable securities - net 3,526
(6,349) (11,548) Foreign currency gain (loss) - net 586 326 (90)
--- --- --- Total non- operating income (loss) 4,212 (5,363)
(10,030) * * ----- ------ ------- Income (loss) from continuing
operations before provision for income taxes 10,027 (4,940) 3,974 *
* Provision for income taxes 2,065 971 4,728 ----- --- ----- Income
(loss) from continuing operations 7,962 (5,911) (754) * * Loss from
discontinued operations, net of tax - (5) (806) * * --- -- ---- Net
income (loss) 7,962 (5,916) (1,560) * * Less: Net income
attributable to redeemable noncontrolling interest (417) (505) -
---- ---- --- Net income (loss) attributable to common shareholders
$7,545 $(6,421) $(1,560) * * ====== ======= ======= Earnings per
share - Basic: Income (loss) from continuing operations
attributable to common shareholders $0.18 $(0.15) $(0.02) * * -----
------ ------ Loss from discontinued operations, net of tax,
attributable to common shareholders $- $(0.00) $(0.02) 0.0%
(100.0%) --- ------ ------ Net income (loss) attributable to common
shareholders $0.18 $(0.15) $(0.04) * * ----- ------ ------ Earnings
per share - Diluted: Income (loss) from continuing operations
attributable to common shareholders $0.18 $(0.15) $(0.02) * * -----
------ ------ Loss from discontinued operations, net of tax,
attributable to common shareholders $- $(0.00) $(0.02) 0.0%
(100.0%) --- ------ ------ Net income (loss) attributable to common
shareholders $0.18 $(0.15) $(0.04) * * ----- ------ ------ Weighted
average shares outstanding Basic 42,396 42,360 41,889 ====== ======
====== Diluted 42,633 42,360 41,889 ====== ====== ====== * Not
meaningful Cohen & Steers, Inc. and Subsidiaries Condensed
Consolidated Statements of Income (Unaudited) For the Periods Ended
(in thousands, except per share data) Nine Months Ended % Change
From ---------------------- ------------- September September
September 30, 30, 30, 2009 2008 2008 --------- --------- ---------
Revenue Investment advisory and administration fees $75,999
$138,102 Distribution and service fees 5,321 14,777 Portfolio
consulting and other 2,362 4,055 ----- ----- Total revenue 83,682
156,934 (46.7%) ------ ------- Expenses Employee compensation and
benefits 43,047 50,399 Distribution and service fees 10,039 20,383
General and administrative 20,490 24,271 Depreciation and
amortization 3,120 2,811 Amortization, deferred commissions 611
3,637 --- ----- Total expenses 77,307 101,501 (23.8%) ------
------- Operating income 6,375 55,433 (88.5%) ----- ------
Non-operating income Interest and dividend income - net 1,426 4,816
Loss from marketable securities - net (19,574) (11,856) Foreign
currency gain - net 669 410 ----- ----- Total non-operating loss
(17,479) (6,630) * ------- ------ (Loss) income from continuing
operations before provision for income taxes (11,104) 48,803 *
Provision for income taxes 1,234 21,666 ----- ------ (Loss) income
from continuing operations (12,338) 27,137 * Loss from discontinued
operations, net of tax (10) (2,117) (99.5%) --- ------ Net (loss)
income (12,348) 25,020 * Less: Net income attributable to
redeemable noncontrolling interest (1,007) - ------ --- Net (loss)
income attributable to common shareholders $(13,355) $25,020 *
======== ======= Earnings per share - Basic: (Loss) income from
continuing operations attributable to common shareholders $(0.32)
$0.65 * ------ ----- Loss from discontinued operations, net of tax,
attributable to common shareholders $(0.00) $(0.05) (99.5%) ------
------ Net (loss) income attributable to common shareholders
$(0.32) $0.60 * ------ ----- Earnings per share - Diluted: (Loss)
income from continuing operations attributable to common
shareholders $(0.32) $0.64 * ------ ----- Loss from discontinued
operations, net of tax, attributable to common shareholders $(0.00)
$(0.05) (99.5%) ------ ------ Net (loss) income attributable to
common shareholders $(0.32) $0.59 * ------ ----- Weighted average
shares outstanding Basic 42,319 41,881 ====== ====== Diluted 42,319
42,136 ====== ====== * Not meaningful Cohen & Steers, Inc. and
Subsidiaries Assets Under Management (Unaudited) For the Periods
Ended (in millions) Three Months Ended % Change From
--------------------------------- ------------------ September June
September June September 30, 30, 30, 30, 30, 2009 2009 2008 2009
2008 --------- ---- --------- ---- --------- Open-End Mutual Funds
--------------- Assets under management, beginning of period $4,238
$3,102 $7,644 ------ ------ ------ Inflows 747 431 622 Outflows
(361) (270) (943) ---- ---- ---- Net inflows (outflows) 386 161
(321) Market appreciation (depreciation) 1,279 975 (374) ----- ---
---- Total increase (decrease) 1,665 1,136 (695) ----- ----- ----
Assets under management, end of period $5,903 $4,238 $6,949 39.3%
(15.1%) ====== ====== ====== Average assets under management for
period $5,122 $3,803 $7,288 34.7% (29.7%) ====== ====== ======
Closed-End Mutual Funds ------------- Assets under management,
beginning of period $4,213 $3,029 $9,531 ------ ------ ------
Inflows 180 448 - Market appreciation (depreciation) 799 736 (961)
--- --- ---- Total increase (decrease) 979 1,184 (961) --- -----
---- Assets under management, end of period $5,192 $4,213 $8,570
23.2% (39.4%) ====== ====== ====== Average assets under management
for period $4,759 $3,855 $9,191 23.5% (48.2%) ====== ====== ======
Institutional Separate Accounts ------------------ Assets under
management, beginning of period $7,869 $5,469 $9,785 ------ ------
------ Inflows 1,634 954 314 Outflows (449) (172) (458) ---- ----
---- Net inflows (outflows) 1,185 782 (144) Market appreciation
(depreciation) 2,344 1,618 (536) ----- ----- ---- Total increase
(decrease) 3,529 2,400 (680) ----- ----- ---- Assets under
management, end of period $11,398 $7,869 $9,105 44.8% 25.2% =======
====== ====== Average assets under management for period $9,583
$6,970 $9,706 37.5% (1.3%) ====== ====== ====== Total ------ Assets
under management, beginning of period $16,320 $11,600 $26,960
------- ------- ------- Inflows 2,561 1,833 936 Outflows (810)
(442) (1,401) ---- ---- ------ Net inflows (outflows) 1,751 1,391
(465) Market appreciation (depreciation) 4,422 3,329 (1,871) -----
----- ------ Total increase (decrease) 6,173 4,720 (2,336) -----
----- ------ Assets under management, end of period $22,493 $16,320
$24,624 37.8% (8.7%) ======= ======= ======= Average assets under
management for period $19,464 $14,628 $26,185 33.1% (25.7%) =======
======= ======= Cohen & Steers, Inc. and Subsidiaries Assets
Under Management (Unaudited) For the Periods Ended (in millions)
Nine Months Ended % Change From -----------------------
------------- September September September 30, 30, 30, 2009 2008
2008 --------- -------- --------- Open-End Mutual Funds
--------------------- Assets under management, beginning of period
$4,280 $8,900 ------ ------ Inflows 1,502 2,170 Outflows (1,031)
(2,892) ------ ------ Net inflows (outflows) 471 (722) Market
appreciation (depreciation) 1,152 (1,229) ----- ------ Total
increase (decrease) 1,623 (1,951) ----- ------ Assets under
management, end of period $5,903 $6,949 (15.1%) ====== ======
Average assets under management for period $4,094 $7,968 (48.6%)
====== ====== Closed-End Mutual Funds -----------------------
Assets under management, beginning of period $4,278 $10,274 ------
------- Inflows 628 - Outflows (395) - ---- --- Net inflows 233 -
Market appreciation (depreciation) 681 (1,704) --- ------ Total
increase (decrease) 914 (1,704) --- ------ Assets under management,
end of period $5,192 $8,570 (39.4%) ====== ====== Average assets
under management for period $4,112 $9,710 (57.7%) ====== ======
Institutional Separate Accounts ---------------------- Assets under
management, beginning of period $6,544 $10,612 ------ -------
Inflows 3,110 1,407 Outflows (748) (1,676) ---- ------ Net inflows
(outflows) 2,362 (269) Market appreciation (depreciation) 2,492
(1,238) ----- ------ Total increase (decrease) 4,854 (1,507) -----
------ Assets under management, end of period $11,398 $9,105 25.2%
======= ====== Average assets under management for period $7,386
$10,293 (28.2%) ====== ======= Total ------ Assets under
management, beginning of period $15,102 $29,786 ------- -------
Inflows 5,240 3,577 Outflows (2,174) (4,568) ------ ------ Net
inflows (outflows) 3,066 (991) Market appreciation (depreciation)
4,325 (4,171) ----- ------ Total increase (decrease) 7,391 (5,162)
----- ------ Assets under management, end of period $22,493 $24,624
(8.7%) ======= ======= Average assets under management for period
$15,592 $27,971 (44.3%) ======= ======= Cohen & Steers, Inc.
and Subsidiaries Assets Under Management (Unaudited) By Investment
Category (in millions) As of As of As of September June September
30, 2009 30, 2009 30, 2008 ---------- --------- ---------- Open-End
Mutual Funds --------------------- U.S. Real Estate $3,512 $2,362
$3,998 International Real Estate 1,960 1,535 2,420 Large Cap Value
163 154 125 Preferreds 15 8 16 Utilities and Listed Infrastructure
86 71 80 Other 167 108 310 ------ ------ ------ Assets under
management, end of period $5,903 $4,238 $6,949 ====== ====== ======
Closed-End Mutual Funds ----------------------- U.S. Real Estate
$1,730 $1,233 $3,424 International Real Estate 134 68 214 Large Cap
Value 241 212 485 Preferreds 1,253 1,123 1,848 Utilities and Listed
Infrastructure 1,275 1,080 1,615 Other 559 497 984 ------ ------
------ Assets under management, end of period $5,192 $4,213 $8,570
====== ====== ====== Institutional Separate Accounts
------------------------------- U.S. Real Estate $4,571 $2,997
$4,514 International Real Estate 4,143 2,825 2,912 Large Cap Value
1,831 1,351 714 Preferreds 724 479 513 Utilities and Listed
Infrastructure 38 12 12 Other 91 205 440 ------- ------ ------
Assets under management, end of period $11,398 $7,869 $9,105
======= ====== ====== Total ------ U.S. Real Estate $9,813 $6,592
$11,936 International Real Estate 6,237 4,428 5,546 Large Cap Value
2,235 1,717 1,324 Preferreds 1,992 1,610 2,377 Utilities and Listed
Infrastructure 1,399 1,163 1,707 Other 817 810 1,734 -------
------- ------- Assets under management, end of period $22,493
$16,320 $24,624 ======= ======= ======= Cohen & Steers, Inc.
and Subsidiaries Other Fee Earning Assets (Unaudited) (in millions)
As of As of As of September June September 30, 2009 30, 2009 30,
2008 ---------- --------- ---------- Unified Managed Accounts
------------------------ ---- ---- ---- Other fee earning assets,
end of period $414 $268 $206 ==== ==== ==== Exchange Traded Funds
--------------------- ------ ------ ------ Other fee earning
assets, end of period $1,676 $1,104 $2,539 ====== ====== ======
Unit Investment Trusts ---------------------- ------ ------ ------
Other fee earning assets, end of period $1,298 $1,124 $1,259 ======
====== ====== Total ------ ------ ------ ------ Other fee earning
assets, end of period $3,388 $2,496 $4,004 ====== ====== ======
Note: Other fee earning assets are defined as assets for which the
company provides investment advice but for which the company has no
discretion to execute trades, and therefore are not included in the
company's reported assets under management. DATASOURCE: Cohen &
Steers, Inc. CONTACT: Matthew S. Stadler, Executive Vice President,
Chief Financial Officer, Cohen & Steers, Inc., +1-212-446-9168
Web Site: http://www.cohenandsteers.com/
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