COHEN & STEERS, INC. NEW YORK, April 15, 2015 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported net income attributable to common stockholders of $20.8 million, or $0.45 per diluted share and $0.46 per basic share, for the quarter ended March 31, 2015, compared with $19.4 million, or $0.43 per diluted share and $0.44 per basic share, for the quarter ended March 31, 2014. Total revenue for the first quarter of 2015 was $83.8 million, an increase of 15.1% from $72.8 million for the first quarter of 2014.
Financial Highlights (Unaudited)
For the Periods
(in thousands, except per share data) Three Months Ended % Change From
------------------ -------------
March 31, 2015 December 31, 2014 March 31, 2014 December 31, March 31,
2014
2014
Revenue $83,815 $81,842 $72,835 2.4% 15.1%
Expenses $49,266 $49,492 $45,239 (0.5%) 8.9%
Operating income $34,549 $32,350 $27,596 6.8% 25.2%
Operating margin 41.2% 39.5% 37.9% 169 bps 333 bps
Total non-operating (loss) income $(1,552) $(4,541) $3,181 * *
Net income attributable to common stockholders $20,816 $15,698 $19,445 32.6% 7.1%
Diluted earnings per share attributable to common stockholders $0.45 $0.34 $0.43 32.3% 5.9%
* Not meaningful
Revenue
Revenue for the first quarter of 2015 was $83.8 million, an increase of $2.0 million from $81.8 million for the fourth quarter of 2014. Higher average assets under management in institutional accounts and open-end mutual funds, partially offset by two fewer days in the quarter, resulted in the following revenue increases:
-- $1.2 million from open-end mutual funds; and
-- $636,000 from institutional accounts.
Expenses
Expenses for the first quarter of 2015 were $49.3 million, a decrease of $226,000 from $49.5 million for the fourth quarter of 2014. The change was primarily due to:
-- Lower general and administrative expenses of $403,000, primarily due to
lower sponsored conference expenses; and
-- Higher distribution and service fees of $389,000, primarily due to
higher average assets under management in open-end mutual funds,
partially offset by two fewer days in the quarter.
Operating Margin
The company's operating margin increased to 41.2% for the first quarter of 2015 compared with 39.5% for the three months ended December 31, 2014.
Non-operating Income
Non-operating loss for the first quarter of 2015 decreased $3.0 million to $1.6 million from a loss of $4.5 million for the fourth quarter of 2014, primarily due to lower realized and unrealized losses on the company's seed investments. The non-operating loss included net losses attributable to redeemable noncontrolling interest of $45,000 and $525,000 for the quarters ended March 31, 2015 and December 31, 2014, respectively.
Assets Under Management Highlights (Unaudited)
March 31, 2015 Compared with December 31, 2014
(in millions) Assets Under Management
As of
-----
By Investment
Vehicle March 31, December 31, % Change
2015 2014
--- ---- ----
Institutional
accounts $26,704 $26,201 1.9%
Open-end mutual
funds 18,062 17,131 5.4%
Closed-end funds 9,900 9,805 1.0%
----- -----
Total $54,666 $53,137 2.9%
======= =======
By Investment
Strategy
-------------
U.S. real estate $29,289 $28,357 3.3%
Global/
international
real estate 10,189 10,184 0.0%
Preferred
securities 6,732 6,342 6.1%
Global listed
infrastructure 5,701 5,697 0.1%
Large cap value 1,374 1,288 6.7%
Other 1,381 1,269 8.8%
----- -----
Total $54,666 $53,137 2.9%
======= =======
Assets under management were $54.7 billion at March 31, 2015, an increase of $1.5 billion from $53.1 billion at December 31, 2014. The increase from December 31, 2014 was attributable to market appreciation of $2.0 billion, partially offset by net outflows of $451 million.
Institutional Accounts
Assets under management in institutional accounts were $26.7 billion as of March 31, 2015, an increase of 1.9% from $26.2 billion at December 31, 2014. The change from December 31, 2014 was due to the following:
-- Market appreciation of $1.1 billion, including $745 million from U.S.
real estate and $365 million from global/international real estate;
-- Net outflows of $429 million from subadvisory relationships, including
$241 million from U.S. real estate, $135 million from
global/international real estate, $110 million from preferred securities
and $94 million from global listed infrastructure, partially offset by
net inflows of $83 million into large cap value and $68 million into
commodities (included in "Other" in the above table); and
-- Net outflows of $189 million from advisory relationships, including $152
million from U.S. real estate and $134 million from preferred
securities, partially offset by net inflows of $115 million into global
listed infrastructure.
Open-end Mutual Funds
Assets under management for open-end mutual funds were $18.1 billion as of March 31, 2015, an increase of 5.4% from $17.1 billion at December 31, 2014. The change from December 31, 2014 was due to the following:
-- Market appreciation of $764 million, including $546 million from U.S.
real estate, $120 million from global/international real estate and $96
million from preferred securities; and
-- Net inflows of $167 million, including net inflows of $459 million into
preferred securities, partially offset by net outflows of $257 million
from global/international real estate and $59 million from U.S. real
estate.
Closed-end Funds
Assets under management for closed-end funds were $9.9 billion as of March 31, 2015, an increase of 1.0% from $9.8 billion at December 31, 2014. The increase from December 31, 2014 was due to market appreciation of $95 million.
Balance Sheet Information
As of March 31, 2015, cash, cash equivalents and investments were $158 million. As of March 31, 2015, stockholders' equity was $228 million and the company had no debt.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, April 16, 2015 at 11:00 a.m. (ET) to discuss the company's first quarter results. Investors and analysts can access the live conference call by dialing 800-272-5460 (U.S.) or +1-303-223-2683 (international); passcode: 21766723. 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 1:00 p.m. (ET) on April 16, 2015 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21766723. Internet access to the webcast, which includes audio (listen-only), will be available on the company's website at www.cohenandsteers.com under "Company - Investor Relations." The webcast will be archived on the website for one month.
About Cohen & Steers
Founded in 1986, Cohen & Steers is a leading global investment manager with a long history of innovation and a focus on real assets, including real estate, infrastructure and commodities, along with preferred securities and other income solutions. Headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle, Cohen & Steers serves institutional and individual investors around the world.
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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the company's current views with respect to, among other things, the company's 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 forward-looking statements. The company believes that these factors include, but are not limited to, the risks described in the "Risk Factors" section of the company's Annual Report on Form 10-K for the year ended December 31, 2014 ("Form 10-K"), which is accessible on the Securities and Exchange Commission's website at www.sec.gov and on the company's website at www.cohenandsteers.com. These factors are not exhaustive and should be read in conjunction with the other cautionary statements that are included in the company's Form 10-K and other filings with the Securities and Exchange Commission. 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 Operations (Unaudited)
For the Periods
(in thousands, except per share data)
Three Months Ended % Change From
------------------ -------------
March 31, December 31, March 31, December 31, March 31,
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Revenue
Investment advisory and administration fees $77,752 $76,063 $67,564
Distribution and service fees 3,906 3,715 3,470
Portfolio consulting and other 2,157 2,064 1,801
----- ----- -----
Total revenue 83,815 81,842 72,835 2.4% 15.1%
------ ------ ------
Expenses
Employee compensation and benefits 25,983 26,142 24,035
Distribution and service fees 9,251 8,862 8,304
General and administrative 12,463 12,866 11,093
Depreciation and amortization 1,052 1,169 1,262
Amortization of deferred commissions 517 453 545
--- --- ---
Total expenses 49,266 49,492 45,239 (0.5%) 8.9%
------ ------ ------
Operating income 34,549 32,350 27,596 6.8 % 25.2%
------ ------ ------
Non-operating income
Interest and dividend income-net 299 617 239
(Loss) gain from trading investments-net (451) (2,622) 983
Gain from available-for-sale investments-net 100 153 1,076
Equity in (losses) earnings of affiliates (1,081) (2,748) 935
Other (losses) income (419) 59 (52)
---- --- ---
Total non-operating (loss) income (1,552) (4,541) 3,181 * *
------ ------ -----
Income before provision for income taxes 32,997 27,809 30,777 18.7% 7.2%
Provision for income taxes 12,226 12,636 11,177
------ ------ ------
Net income 20,771 15,173 19,600 36.9% 6.0%
Less: Net loss (income) attributable to 45 525 (155)
redeemable noncontrolling interest
Net income attributable to common stockholders $20,816 $15,698 $19,445 32.6% 7.1%
======= ======= =======
Earnings per share attributable to common
stockholders
Basic $0.46 $0.35 $0.44 31.5% 5.6%
===== ===== =====
Diluted $0.45 $0.34 $0.43 32.3% 5.9%
===== ===== =====
Dividends declared per share
Quarterly $0.25 $0.22 $0.22 13.6% 13.6%
===== ===== =====
Special $ - $1.00 $ - * *
=== === ===== === ===
Weighted average shares outstanding
Basic 45,241 44,852 44,633
====== ====== ======
Diluted 45,980 45,866 45,483
====== ====== ======
* Not meaningful
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Vehicle
For the Periods
(in millions)
Three Months Ended % Change From
------------------ -------------
March 31, December 31, March 31, December 31, March 31,
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Institutional Accounts
----------------------
Assets under management, beginning of period $26,201 $23,941 $22,926
------- ------- -------
Inflows 617 1,077 432
Outflows (1,235) (1,345) (652)
------ ------ ----
Net outflows (618) (268) (220)
Market appreciation 1,121 2,528 1,773
----- ----- -----
Total increase 503 2,260 1,553
--- ----- -----
Assets under management, end of period $26,704 $26,201 $24,479 1.9% 9.1%
======= ======= =======
Percentage of total assets under management 48.8% 49.3% 49.9%
==== ==== ====
Average assets under management for period $27,080 $25,589 $23,858 5.8% 13.5%
======= ======= =======
Open-end Mutual Funds
---------------------
Assets under management, beginning of period $17,131 $16,116 $14,016
------- ------- -------
Inflows 1,642 1,368 1,523
Outflows (1,475) (1,894) (1,419)
------ ------ ------
Net inflows (outflows) 167 (526) 104
Market appreciation 764 1,541 1,028
--- ----- -----
Total increase 931 1,015 1,132
--- ----- -----
Assets under management, end of period $18,062 $17,131 $15,148 5.4% 19.2%
======= ======= =======
Percentage of total assets under management 33.0% 32.2% 30.9%
==== ==== ====
Average assets under management for period $17,963 $16,986 $14,607 5.8% 23.0%
======= ======= =======
Closed-end Funds
----------------
Assets under management, beginning of period $9,805 $9,638 $8,965
------ ------ ------
Inflows - - -
Outflows - - -
--- --- ---
Net inflows - - -
Market appreciation 95 167 439
--- --- ---
Total increase 95 167 439
--- --- ---
Assets under management, end of period $9,900 $9,805 $9,404 1.0% 5.3%
====== ====== ======
Percentage of total assets under management 18.1% 18.5% 19.2%
==== ==== ====
Average assets under management for period $9,978 $9,830 $9,241 1.5% 8.0%
====== ====== ======
Total
-----
Assets under management, beginning of period $53,137 $49,695 $45,907
------- ------- -------
Inflows 2,259 2,445 1,955
Outflows (2,710) (3,239) (2,071)
------ ------ ------
Net outflows (451) (794) (116)
Market appreciation 1,980 4,236 3,240
----- ----- -----
Total increase 1,529 3,442 3,124
----- ----- -----
Assets under management, end of period $54,666 $53,137 $49,031 2.9% 11.5%
======= ======= =======
Average assets under management for period $55,021 $52,405 $47,706 5.0% 15.3%
======= ======= =======
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management - Institutional Accounts (Unaudited)
By Account Type
For the Periods
(in millions)
Three Months Ended % Change From
------------------ -------------
March 31, December 31, March 31, December 31, March 31,
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Subadvisory
-----------
Assets under management, beginning of period $18,857 $17,092 $16,693
------- ------- -------
Inflows 419 969 311
Outflows (848) (1,138) (487)
---- ------ ----
Net outflows (429) (169) (176)
Market appreciation 814 1,934 1,407
--- ----- -----
Total increase 385 1,765 1,231
--- ----- -----
Assets under management, end of period $19,242 $18,857 $17,924 2.0% 7.4%
======= ======= =======
Percentage of institutional assets under management 72.1% 72.0% 73.2%
==== ==== ====
Average assets under management for period $19,526 $18,371 $17,480 6.3% 11.7%
======= ======= =======
Advisory
--------
Assets under management, beginning of period $7,344 $6,849 $6,233
------ ------ ------
Inflows 198 108 121
Outflows (387) (207) (165)
---- ---- ----
Net outflows (189) (99) (44)
Market appreciation 307 594 366
--- --- ---
Total increase 118 495 322
--- --- ---
Assets under management, end of period $7,462 $7,344 $6,555 1.6% 13.8%
====== ====== ======
Percentage of institutional assets under management 27.9% 28.0% 26.8%
==== ==== ====
Average assets under management for period $7,554 $7,218 $6,378 4.7% 18.4%
====== ====== ======
Total Institutional Accounts
----------------------------
Assets under management, beginning of period $26,201 $23,941 $22,926
------- ------- -------
Inflows 617 1,077 432
Outflows (1,235) (1,345) (652)
------ ------ ----
Net outflows (618) (268) (220)
Market appreciation 1,121 2,528 1,773
----- ----- -----
Total increase 503 2,260 1,553
--- ----- -----
Assets under management, end of period $26,704 $26,201 $24,479 1.9% 9.1%
======= ======= =======
Average assets under management for period $27,080 $25,589 $23,858 5.8% 13.5%
======= ======= =======
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Strategy
For the Periods
(in millions)
Three Months Ended % Change From
------------------ -------------
March 31, December 31, March 31, December 31, March 31,
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
U.S. Real Estate
----------------
Assets under management, beginning of period $28,357 $26,226 $23,116
------- ------- -------
Inflows 813 695 756
Outflows (1,265) (2,183) (829)
------ ------ ----
Net outflows (452) (1,488) (73)
Market appreciation 1,384 3,619 2,208
----- ----- -----
Total increase 932 2,131 2,135
--- ----- -----
Assets under management, end of period $29,289 $28,357 $25,251 3.3% 16.0%
======= ======= =======
Percentage of total assets under management 53.6% 53.4% 51.5%
==== ==== ====
Average assets under management for period $29,627 $27,998 $24,362 5.8% 21.6%
======= ======= =======
Global/International Real Estate
--------------------------------
Assets under management, beginning of period $10,184 $9,677 $9,498
------- ------ ------
Inflows 264 408 485
Outflows (744) (583) (664)
---- ---- ----
Net outflows (480) (175) (179)
Market appreciation 485 682 402
--- --- ---
Total increase 5 507 223
--- --- ---
Assets under management, end of period $10,189 $10,184 $9,721 0.0% 4.8%
======= ======= ======
Percentage of total assets under management 18.6% 19.2% 19.8%
==== ==== ====
Average assets under management for period $10,429 $10,021 $9,595 4.1% 8.7%
======= ======= ======
Preferred Securities
--------------------
Assets under management, beginning of period $6,342 $5,766 $4,722
------ ------ ------
Inflows 684 783 358
Outflows (469) (271) (180)
---- ---- ----
Net inflows 215 512 178
Market appreciation 175 64 226
--- --- ---
Total increase 390 576 404
--- --- ---
Assets under management, end of period $6,732 $6,342 $5,126 6.1% 31.3%
====== ====== ======
Percentage of total assets under management 12.3% 11.9% 10.5%
==== ==== ====
Average assets under management for period $6,597 $6,150 $4,946 7.3% 33.4%
====== ====== ======
Global Listed Infrastructure
----------------------------
Assets under management, beginning of period $5,697 $5,611 $4,714
------ ------ ------
Inflows 208 251 302
Outflows (157) (84) (224)
---- --- ----
Net inflows 51 167 78
Market (depreciation) appreciation (47) (81) 280
--- --- ---
Total increase 4 86 358
--- --- ---
Assets under management, end of period $5,701 $5,697 $5,072 12.4%
0.1%
Percentage of total assets under management 10.4% 10.7% 10.3%
==== ==== ====
Average assets under management for period $5,685 $5,701 $5,011 (0.3%) 13.5%
====== ====== ======
Large Cap Value
---------------
Assets under management, beginning of period $1,288 $1,260 $2,907
------ ------ ------
Inflows 99 45 9
Outflows (28) (57) (155)
--- --- ----
Net inflows (outflows) 71 (12) (146)
Market appreciation 15 40 96
--- --- ---
Total increase (decrease) 86 28 (50)
--- --- ---
Assets under management, end of period $1,374 $1,288 $2,857 6.7% (51.9%)
====== ====== ======
Percentage of total assets under management 2.5% 2.4% 5.8%
=== === ===
Average assets under management for period $1,358 $1,251 $2,822 8.6% (51.9%)
====== ====== ======
Other
-----
Assets under management, beginning of period $1,269 $1,155 $950
------ ------ ----
Inflows 191 263 45
Outflows (47) (61) (19)
--- --- ---
Net inflows 144 202 26
Market (depreciation) appreciation (32) (88) 28
--- --- ---
Total increase 112 114 54
--- --- ---
Assets under management, end of period $1,381 $1,269 $1,004 8.8% 37.5%
====== ====== ======
Percentage of total assets under management 2.5% 2.4% 2.0%
=== === ===
Average assets under management for period $1,325 $1,284 $970 3.2% 36.6%
====== ====== ====
Total
-----
Assets under management, beginning of period $53,137 $49,695 $45,907
------- ------- -------
Inflows 2,259 2,445 1,955
Outflows (2,710) (3,239) (2,071)
------ ------ ------
Net outflows (451) (794) (116)
Market appreciation 1,980 4,236 3,240
----- ----- -----
Total increase 1,529 3,442 3,124
----- ----- -----
$54,666 $53,137 $49,031 2.9% 11.5%
Assets under management, end of period
Average assets under management for period $55,021 $52,405 $47,706 5.0% 15.3%
======= ======= =======
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SOURCE Cohen & Steers, Inc.
