Cohen & Steers, Inc. : Cohen & Steers Reports First Quarter 2012 Results
04/18/2012| 04:35pm US/Eastern
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NEW YORK, April 18, 2012 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported income attributable to common shareholders of $18.1 million, or $0.41 per share (diluted and basic), for the quarter ended March 31, 2012, compared with income attributable to common shareholders of $13.0 million, or $0.30 per share (diluted and basic), for the quarter ended March 31, 2011. Total revenue for the first quarter of 2012 was $63.7 million, an increase of 16.4% from $54.8 million for the first quarter of 2011.
Assets Under Management
Assets under management were $44.9 billion as of March 31, 2012, an increase of 8.7% from $41.3 billion at December 31, 2011 and an increase of 18.0% from $38.0 billion at March 31, 2011. The increase from December 31, 2011 was due to market appreciation of $4.0 billion, partially offset by net outflows of $425 million. The increase from March 31, 2011 was due to net inflows of $5.2 billion, primarily into U.S. real estate strategies, and market appreciation of $1.7 billion. Average assets under management were $43.0 billion for the quarter ended March 31, 2012, an increase of 6.8% from $40.3 billion for the quarter ended December 31, 2011 and an increase of 19.2% from $36.1 billion for the quarter ended March 31, 2011.
Assets under management for institutional accounts were $26.6 billion as of March 31, 2012, an increase of 4.8% from $25.4 billion at December 31, 2011 and an increase of 21.3% from $21.9 billion at March 31, 2011. The increase from December 31, 2011 was due to market appreciation of $2.6 billion, partially offset by net outflows of $1.4 billion, primarily from global/international real estate strategies associated with subadvisory relationships. The increase from March 31, 2011 was due to net inflows of $3.5 billion, primarily into subadvisory relationships, and market appreciation of $1.2 billion. Average assets under management for institutional accounts were $25.9 billion for the quarter ended March 31, 2012, an increase of 3.8% from $24.9 billion for the quarter ended December 31, 2011 and an increase of 25.2% from $20.7 billion for the quarter ended March 31, 2011.
Assets under management for open-end mutual funds were $11.6 billion as of March 31, 2012, an increase of 20.5% from $9.6 billion at December 31, 2011 and an increase of 23.4% from $9.4 billion at March 31, 2011. The increase from December 31, 2011 was due to market appreciation of $1.0 billion and net inflows of $938 million. The increase from March 31, 2011 was due to net inflows of $1.7 billion and market appreciation of $480 million. Average assets under management for open-end mutual funds were $10.6 billion for the quarter ended March 31, 2012, an increase of 15.2% from $9.2 billion for the quarter ended December 31, 2011 and an increase of 20.0% from $8.8 billion for the quarter ended March 31, 2011.
Assets under management for closed-end mutual funds were $6.7 billion as of March 31, 2012, an increase of 6.5% from $6.3 billion at December 31, 2011 and a decrease of 0.2% from $6.7 billion at March 31, 2011. The increase from December 31, 2011 was due to market appreciation of $409 million. Average assets under management for closed-end mutual funds were $6.6 billion for the quarter ended March 31, 2012, an increase of 6.0% from $6.2 billion for the quarter ended December 31, 2011 and a decrease of 0.8% from $6.6 billion for the quarter ended March 31, 2011.
Financial Highlights (Unaudited)
Three Months Ended
(in thousands, except per share data or as noted)
------------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
---- ---- ----
Revenue $63,730 $59,416 $54,755
Expenses $38,334 $36,617 $35,842
Operating income $25,396 $22,799 $18,913
Operating margin 39.8% 38.4% 34.5%
Total non-
operating income $3,017 $2,409 $975
Net income
attributable to
common
shareholders $18,054 $16,047 $12,975
Diluted earnings
per share
attributable to
common
shareholders $0.41 $0.36 $0.30
Assets under
management, end
of period (in
millions) $44,890 $41,284 $38,030
Average assets
under management
for period (in
millions) $43,008 $40,286 $36,087
Total revenue for the first quarter of 2012 was $63.7 million, an increase of 7.3% from $59.4 million for the fourth quarter of 2011, primarily due to higher average assets under management. Operating expenses for the first quarter of 2012 were $38.3 million, an increase of 4.7% from $36.6 million for the fourth quarter of 2011, primarily due to increases in employee compensation and benefits, distribution and service fees and general and administrative expenses. Operating income was $25.4 million for the three months ended March 31, 2012, compared with operating income of $22.8 million for the three months ended December 31, 2011. The company's operating margin increased to 39.8% for the first quarter of 2012 compared with 38.4% for the three months ended December 31, 2011 due to decreases in the compensation to revenue and G&A to revenue ratios. Non-operating income was $3.0 million for the three months ended March 31, 2012, compared with non-operating income of $2.4 million for the three months ended December 31, 2011, primarily due to increased gains from the company's seed investments.
Balance Sheet Information
As of March 31, 2012, cash, cash equivalents and investments were $174 million. As of March 31, 2012, stockholders' equity was $243 million and the company had no long-term or short-term debt.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, April 19, 2012 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) 769-9015 (U.S.) or (212) 231-2912 (international); passcode: 21588381. 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 19, 2012 and can be accessed at (800) 633-8284 (U.S.) or (402) 977-9140 (international); passcode: 21588381. Internet access to the webcast, which includes audio (listen-only), will be available on the company's website at www.cohenandsteers.com under "Corporate Info." The webcast will be archived on the website for two weeks.
About Cohen & Steers
Founded in 1986, Cohen & Steers is a leading global investment management firm focused on global real estate securities, global listed infrastructure, real assets, large cap value stocks, 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, Tokyo and Seattle, Cohen & Steers serves institutional and individual 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, 2011, 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 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 Operations (Unaudited)
For the Periods Ended
(in thousands, except per share data)
Three Months Ended % Change From
------------------ -------------
March 31, December 31, March 31, December 31, March 31,
2011 2011 2011
2012 2011
---- ----
Revenue
Investment advisory and administration fees $58,155 $55,310 $51,052
Distribution and service fees 2,501 2,260 2,415
Portfolio consulting and other 3,074 1,846 1,288
----- ----- -----
Total revenue 63,730 59,416 54,755 7.3% 16.4%
------ ------ ------
Expenses
Employee compensation and benefits 21,668 20,694 19,986
Distribution and service fees 6,237 5,758 5,754
General and administrative 8,537 8,380 8,573
Depreciation and amortization 1,396 1,296 1,186
Amortization, deferred commissions 496 489 343
--- --- ---
Total expenses 38,334 36,617 35,842 4.7% 7.0%
------ ------ ------
Operating income 25,396 22,799 18,913 11.4% 34.3%
------ ------ ------
Non-operating income
Interest and dividend income - net 621 269 184
Gain (loss) from trading securities - net 1,721 495 (378)
Gain from available-for-sale securities - net 687 154 358
Equity in earnings (losses) of affiliates 772 1,614 (14)
Other (784) (123) 825
---- ---- ---
Total non-operating income 3,017 2,409 975 25.2% 209.4%
----- ----- ---
Income before provision for income taxes 28,413 25,208 19,888 12.7% 42.9%
Provision for income taxes 10,155 9,134 6,986
------ ----- -----
Net income 18,258 16,074 12,902 13.6% 41.5%
Less: Net (income) loss attributable to (204) (27) 73
redeemable noncontrolling interest
Net income attributable to common shareholders $18,054 $16,047 $12,975 12.5% 39.1%
======= ======= =======
Earnings per share attributable to common
shareholders
Basic $0.41 $0.37 $0.30 11.6% 37.4%
===== ===== =====
Diluted $0.41 $0.36 $0.30 11.9% 37.2%
===== ===== =====
Weighted average shares outstanding
Basic 43,601 43,249 43,051
====== ====== ======
Diluted 44,386 44,141 43,781
====== ====== ======
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Vehicle
For the Periods Ended
(in millions)
Three Months Ended % Change From
------------------ -------------
March 31, December 31, March 31, December 31, March 31,
2011 2011
2012 2011 2011
---- ---- ----
Institutional Accounts
----------------------
Assets under management, beginning of period $25,380 $24,026 $19,625
------- ------- -------
Inflows 1,070 498 1,529
Outflows (2,433) (1,598) (321)
------ ------ ----
Net (outflows) inflows (1,363) (1,100) 1,208
Market appreciation 2,591 2,454 1,098
----- ----- -----
Total increase 1,228 1,354 2,306
----- ----- -----
Assets under management, end of period $26,608 $25,380 $21,931 4.8% 21.3%
======= ======= =======
Average assets under management for period $25,884 $24,932 $20,671 3.8% 25.2%
======= ======= =======
Open-End Mutual Funds
---------------------
Assets under management, beginning of period $9,619 $8,612 $8,484
------ ------ ------
Inflows 1,682 908 1,147
Outflows (744) (817) (640)
---- ---- ----
Net inflows 938 91 507
Market appreciation 1,031 916 399
----- --- ---
Total increase 1,969 1,007 906
----- ----- ---
Assets under management, end of period $11,588 $9,619 $9,390 20.5% 23.4%
======= ====== ======
Average assets under management for period $10,567 $9,170 $8,803 15.2% 20.0%
======= ====== ======
Closed-End Mutual Funds
-----------------------
Assets under management, beginning of period $6,285 $5,979 $6,353
------ ------ ------
Inflows - - 129
Outflows - (59) -
--- --- ---
Net (outflows) inflows - (59) 129
Market appreciation 409 365 227
--- --- ---
Total increase 409 306 356
--- --- ---
Assets under management, end of period $6,694 $6,285 $6,709 6.5% (0.2)%
====== ====== ======
Average assets under management for period $6,557 $6,184 $6,613 6.0% (0.8)%
====== ====== ======
Total
-----
Assets under management, beginning of period $41,284 $38,617 $34,462
------- ------- -------
Inflows 2,752 1,406 2,805
Outflows (3,177) (2,474) (961)
------ ------ ----
Net (outflows) inflows (425) (1,068) 1,844
Market appreciation 4,031 3,735 1,724
----- ----- -----
Total increase 3,606 2,667 3,568
----- ----- -----
Assets under management, end of period $44,890 $41,284 $38,030 8.7% 18.0%
======= ======= =======
Average assets under management for period $43,008 $40,286 $36,087 6.8% 19.2%
======= ======= =======
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management - Institutional Accounts (Unaudited)
By Investment Relationship
For the Periods Ended
(in millions)
Three Months Ended % Change From
------------------ -------------
March 31, December 31, March 31, December 31, March 31,
2011 2011 2011
2012 2011
---- ----
Subadvisory
-----------
Assets under management, beginning of period $19,073 $18,266 $13,334
------- ------- -------
Inflows 365 349 1,323
Outflows (1,735) (1,429) (206)
------ ------ ----
Net (outflows) inflows (1,370) (1,080) 1,117
Market appreciation 1,902 1,887 773
----- ----- ---
Total increase 532 807 1,890
--- --- -----
Assets under management, end of period $19,605 $19,073 $15,224 2.8% 28.8%
======= ======= =======
Average assets under management for period $19,476 $18,795 $14,128 3.6% 37.9%
======= ======= =======
Advisory
--------
Assets under management, beginning of period $6,307 $5,760 $6,291
------ ------ ------
Inflows 705 149 206
Outflows (698) (169) (115)
---- ---- ----
Net inflows (outflows) 7 (20) 91
Market appreciation 689 567 325
--- --- ---
Total increase 696 547 416
--- --- ---
Assets under management, end of period $7,003 $6,307 $6,707 11.0% 4.4%
====== ====== ======
Average assets under management for period $6,408 $6,137 $6,543 4.4% (2.1)%
====== ====== ======
Total Institutional Accounts
----------------------------
Assets under management, beginning of period $25,380 $24,026 $19,625
------- ------- -------
Inflows 1,070 498 1,529
Outflows (2,433) (1,598) (321)
------ ------ ----
Net (outflows) inflows (1,363) (1,100) 1,208
Market appreciation 2,591 2,454 1,098
----- ----- -----
Total increase 1,228 1,354 2,306
----- ----- -----
Assets under management, end of period $26,608 $25,380 $21,931 4.8% 21.3%
======= ======= =======
Average assets under management for period $25,884 $24,932 $20,671 3.8% 25.2%
======= ======= =======
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Strategy
For the Periods Ended
(in millions)
Three Months Ended % Change From
------------------ -------------
March 31, December 31, March 31, December 31, March 31,
2011 2011 2011
2012 2011
---- ----
U.S. Real Estate
----------------
Assets under management, beginning of period $18,505 $16,099 $10,506
------- ------- -------
Inflows 1,690 749 1,352
Outflows (488) (513) (504)
---- ---- ----
Net inflows 1,202 236 848
Market appreciation 1,864 2,170 679
----- ----- ---
Total increase 3,066 2,406 1,527
----- ----- -----
Assets under management, end of period $21,571 $18,505 $12,033 16.6% 79.3%
======= ======= =======
Average assets under management for period $19,853 $17,339 $11,240 14.5% 76.6%
======= ======= =======
Global/International Real Estate
--------------------------------
Assets under management, beginning of period $13,409 $13,734 $15,438
------- ------- -------
Inflows 701 343 1,072
Outflows (2,266) (1,624) (454)
------ ------ ----
Net (outflows) inflows (1,565) (1,281) 618
Market appreciation 1,395 956 676
----- --- ---
Total (decrease) increase (170) (325) 1,294
---- ---- -----
Assets under management, end of period $13,239 $13,409 $16,732 (1.3)% (20.9)%
======= ======= =======
Average assets under management for period $13,367 $13,822 $15,900 (3.3)% (15.9)%
======= ======= =======
Large Cap Value Stocks
----------------------
Assets under management, beginning of period $3,876 $3,470 $3,673
------ ------ ------
Inflows 10 145 113
Outflows (355) (116) (82)
---- ---- ---
Net (outflows) inflows (345) 29 31
Market appreciation 452 377 194
--- --- ---
Total increase 107 406 225
--- --- ---
Assets under management, end of period $3,983 $3,876 $3,898 2.8% 2.2%
====== ====== ======
Average assets under management for period $3,920 $3,718 $3,806 5.4% 3.0%
====== ====== ======
Global Infrastructure
---------------------
Assets under management, beginning of period $3,010 $2,919 $2,870
------ ------ ------
Inflows 22 17 174
Outflows (17) (73) (17)
--- --- ---
Net inflows (outflows) 5 (56) 157
Market appreciation 145 147 98
--- --- ---
Total increase 150 91 255
--- --- ---
Assets under management, end of period $3,160 $3,010 $3,125 5.0% 1.1%
====== ====== ======
Average assets under management for period $3,121 $2,970 $2,983 5.1% 4.6%
====== ====== ======
Preferred Securities
--------------------
Assets under management, beginning of period $1,964 $1,803 $1,292
------ ------ ------
Inflows 293 152 216
Outflows (51) (52) (13)
--- --- ---
Net inflows 242 100 203
Market appreciation 138 61 53
--- --- ---
Total increase 380 161 256
--- --- ---
Assets under management, end of period $2,344 $1,964 $1,548 19.3% 51.4%
====== ====== ======
Average assets under management for period $2,174 $1,894 $1,463 14.8% 48.6%
====== ====== ======
Other
-----
Assets under management, beginning of period $520 $592 $683
---- ---- ----
Inflows 36 - 10
Outflows - (96) (23)
--- --- ---
Net inflows (outflows) 36 (96) (13)
Market appreciation 37 24 24
--- --- ---
Total increase (decrease) 73 (72) 11
--- --- ---
Assets under management, end of period $593 $520 $694 14.0% (14.6)%
==== ==== ====
Average assets under management for period $573 $543 $695 5.5% (17.6)%
==== ==== ====
Total
-----
Assets under management, beginning of period $41,284 $38,617 $34,462
------- ------- -------
Inflows 2,752 1,406 2,937
Outflows (3,177) (2,474) (1,093)
------ ------ ------
Net (outflows) inflows (425) (1,068) 1,844
Market appreciation 4,031 3,735 1,724
----- ----- -----
Total increase 3,606 2,667 3,568
----- ----- -----
Assets under management, end of period $44,890 $41,284 $38,030 8.7% 18.0%
======= ======= =======
Average assets under management for period $43,008 $40,286 $36,087 6.8% 19.2%
======= ======= =======
Cohen & Steers, Inc. and
Subsidiaries
Assets Under Advisement
(Unaudited)
(in millions)
As of
-----
March 31, December 31, March 31,
2012 2011 2011
---- ---- ----
Model-Based
Strategies $5,245 $2,009 $554
------ ------ ----
Exchange Traded
Funds $2,835 $2,380 $2,558
------ ------ ------
Unit Investment
Trusts $1,217 $1,233 $1,421
------ ------ ------
Total $9,297 $5,622 $4,533
====== ====== ======
Note: Assets under advisement are defined as assets for which the company does not provide active management.
SOURCE Cohen & Steers, Inc.
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