COHEN & STEERS, INC. NEW YORK, April 20, 2016 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported net income attributable to common stockholders of $18.1 million, or $0.39 per share (diluted and basic), for the quarter ended March 31, 2016, compared with $20.8 million, or $0.45 per diluted share and $0.46 per basic share, for the quarter ended March 31, 2015. Total revenue for the first quarter of 2016 was $79.7 million, a decrease of 4.9% from $83.8 million for the first quarter of 2015.
The first quarter 2016 results included a non-cash after-tax expense of approximately $0.03 per share associated with the accelerated vesting of certain restricted stock units. After adjusting for this item, diluted earnings per share would have been $0.42 for the quarter ended March 31, 2016.
Financial Highlights (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,
2016 2015 2015 2015 2015
---- ---- ---- ---- ----
Revenue $79,681 $81,671 $83,815 (2.4%) (4.9%)
Expenses $51,374 $51,319 $49,266 0.1% 4.3%
Operating income $28,307 $30,352 $34,549 (6.7%) (18.1%)
Operating margin 35.5% 37.2% 41.2% (164) bps (570) bps
Total non-operating income (loss) (1) $643 $(12,078) $(1,552) * *
Net income attributable to common stockholders $18,083 $5,879 $20,816 207.6% (13.1%)
Diluted earnings per share attributable to common $0.39 $0.13 $0.45 206.1% (13.5%)
stockholders
________________________
* Not meaningful
(1) Includes net income/(loss) attributable to redeemable
noncontrolling interest for the periods presented.
Revenue
Revenue for the first quarter of 2016 was $79.7 million, a decrease of $2.0 million from $81.7 million for the fourth quarter of 2015. Lower average assets under management in closed-end funds and one less day in the quarter resulted in the following decreases in investment advisory and administration fees:
-- Institutional account revenue decreased $0.2 million to $21.3 million
for the first quarter of 2016;
-- Open-end fund revenue decreased $0.7 million to $33.5 million for the
first quarter of 2016; and
-- Closed-end fund revenue decreased $1.3 million to $18.3 million for the
first quarter of 2016.
Expenses
Expenses for the first quarter of 2016 were $51.4 million, an increase of $0.1 million from $51.3 million for the fourth quarter of 2015. Changes in expenses were primarily:
-- Higher employee compensation and benefits expenses of $0.6 million,
primarily attributable to the accelerated vesting of certain restricted
stock units partially offset by lower incentive compensation when
compared with the fourth quarter of 2015;
-- Lower general and administrative expenses of $0.7 million, primarily due
to lower costs associated with hosted and sponsored events and lower
fund organizational expenses, partially offset by an increase in
recruiting fees; and
-- Higher depreciation and amortization of $0.4 million, primarily due to
the obsolescence of certain fixed assets.
Operating Margin
The company's operating margin decreased to 35.5% for the first quarter of 2016 from 37.2% for the fourth quarter of 2015.
Non-operating Income
Non-operating income for the first quarter of 2016 was $0.6 million, compared with non-operating loss of $12.1 million for the fourth quarter of 2015. The change was primarily due to net unrealized gains on the company's seed investments in the first quarter of 2016 compared with net unrealized losses during the fourth quarter of 2015. The fourth quarter of 2015 included unrealized losses that were primarily due to a change in accounting classification and an other-than-temporary impairment on certain seed investments.
Assets Under Management Highlights (Unaudited)
March 31, 2016 Compared with December 31, 2015
(in millions) Assets Under Management
As of
-----
By Investment Vehicle March 31, December 31, % Change
2016 2015
--- ---- ----
Institutional accounts $27,857 $26,105 6.7%
Open-end funds 18,146 17,460 3.9%
Closed-end funds 9,056 9,029 0.3%
Total $55,059 $52,594 4.7%
======= =======
By Investment Strategy
----------------------
U.S. real estate $29,069 $27,814 4.5%
Global/international real
estate 10,152 9,476 7.1%
Preferred securities 8,099 7,705 5.1%
Global listed infrastructure 5,272 5,147 2.4%
Other 2,467 2,452 0.6%
Total $55,059 $52,594 4.7%
======= =======
Assets under management were $55.1 billion as of March 31, 2016, an increase of $2.5 billion from $52.6 billion at December 31, 2015. The increase from December 31, 2015 was attributable to net inflows of $1.4 billion and market appreciation of $1.9 billion, partially offset by distributions of $0.9 billion.
Institutional Accounts
Assets under management in institutional accounts were $27.9 billion as of March 31, 2016, an increase of 6.7% from $26.1 billion at December 31, 2015. The change from December 31, 2015 was due to the following:
-- Market appreciation of $1.2 billion, including $699 million from U.S.
real estate and $341 million from global/international real estate;
-- Net inflows of $813 million into subadvisory accounts, including $768
million into U.S. real estate, $53 million into preferred securities and
$28 million into global listed infrastructure, partially offset by net
outflows of $53 million from global/international real estate;
-- Net inflows of $377 million into advisory accounts, including $510
million into global/international real estate, partially offset by net
outflows of $95 million from U.S. real estate; and
-- Distributions out of subadvisory accounts in Japan of $653 million
including $606 million from U.S. real estate and $42 million from
global/international real estate.
Open-end Funds
Assets under management for open-end funds were $18.1 billion as of March 31, 2016, an increase of 3.9% from $17.5 billion at December 31, 2015. The change from December 31, 2015 was due to the following:
-- Market appreciation of $495 million, including $402 million from U.S.
real estate and $67 million from global/international real estate;
-- Net inflows of $324 million, including net inflows of $417 million into
preferred securities, partially offset by net outflows of $149 million
from global/international real estate; and
-- Distributions of $133 million, including $71 million from preferred
securities and $60 million from U.S. real estate.
Closed-end Funds
Assets under management for closed-end funds were $9.1 billion as of March 31, 2016, an increase of 0.3% from $9.0 billion at December 31, 2015. The increase from December 31, 2015 was due to market appreciation of $235 million, partially offset by distributions of $122 million and outflows of $86 million related to a decrease in a fund's outstanding leverage.
Balance Sheet Information
As of March 31, 2016, cash, cash equivalents and seed investments were $186 million. As of March 31, 2016, stockholders' equity was $238 million and the company had no debt.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, April 21, 2016 at 10:00 a.m. (ET) to discuss the company's first quarter results. Investors and analysts can access the live conference call by dialing 800-616-4707 (U.S.) or +1-303-223-2691 (international); passcode: 21809164. Participants should plan to register at least 10 minutes before the conference call begins. The presentation that will be reviewed as part of the conference call will be available on the company's website at www.cohenandsteers.com under "Company - Press Releases."
A replay of the call will be available for two weeks starting at approximately 12:00 p.m. (ET) on April 21, 2016 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21809164. 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
Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle.
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 management'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, 2015 (the 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,
2016 2015 2015 2015 2015
---- ---- ---- ---- ----
Revenue
Investment advisory and administration fees $73,088 $75,269 $77,752
Distribution and service fees 4,233 4,120 3,906
Portfolio consulting and other 2,360 2,282 2,157
-----
Total revenue 79,681 81,671 83,815 (2.4%) (4.9%)
------ ------ ------
Expenses
Employee compensation and benefits 28,040 27,440 25,983
Distribution and service fees 8,702 8,976 9,251
General and administrative 12,735 13,390 12,463
Depreciation and amortization 1,897 1,513 1,569
Total expenses 51,374 51,319 49,266 0.1% 4.3%
------ ------ ------
Operating income 28,307 30,352 34,549 (6.7%) (18.1%)
------ ------ ------
Non-operating income
Interest and dividend income-net 542 560 299
Gain (loss) from seed investments-net 190 (12,587) (1,432)
Other losses (89) (51) (419)
--- --- ----
Total non-operating income (loss) 643 (12,078) (1,552) * *
--- ------- ------
Income before provision for income taxes 28,950 18,274 32,997 58.4% (12.3%)
Provision for income taxes 11,083 12,446 12,226
------ ------ ------
Net income 17,867 5,828 20,771 206.6% (14.0%)
Less: Net loss attributable to redeemable 216 51 45
noncontrolling interest
Net income attributable to common $18,083 $5,879 $20,816 207.6% (13.1%)
stockholders
Earnings per share attributable to common
stockholders
Basic $0.39 $0.13 $0.46 205.7% (14.2%)
===== ===== =====
Diluted $0.39 $0.13 $0.45 206.1% (13.5%)
===== ===== =====
Dividends declared per share
Quarterly $0.26 $0.25 $0.25 4.0% 4.0%
===== ===== =====
Special $ - $0.50 $ - * *
=== === ===== === ===
Weighted average shares outstanding
Basic 45,808 45,524 45,241
====== ====== ======
Diluted 46,195 45,969 45,980
====== ====== ======
* 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,
2016 2015 2015 2015 2015
---- ---- ---- ---- ----
Institutional Accounts
----------------------
Assets under management, beginning of period $26,105 $24,645 $26,201
------- ------- -------
Inflows 1,772 1,023 925
Outflows (582) (475) (1,004)
---- ---- ------
Net inflows (outflows) 1,190 548 (79)
Market appreciation 1,215 1,495 1,121
Distributions (653) (583) (539)
---- ---- ----
Total increase 1,752 1,460 503
----- ----- ---
Assets under management, end of period $27,857 $26,105 $26,704 6.7% 4.3%
======= ======= =======
Percentage of total assets under management 50.6% 49.6% 48.8%
==== ==== ====
Average assets under management for period $25,775 $25,655 $27,080 0.5% (4.8%)
======= ======= =======
Open-end Funds
--------------
Assets under management, beginning of period $17,460 $16,141 $17,131
------- ------- -------
Inflows 2,022 2,263 1,726
Outflows (1,698) (1,319) (1,475)
------ ------ ------
Net inflows 324 944 251
Market appreciation 495 871 796
Distributions (133) (496) (116)
---- ---- ----
Total increase 686 1,319 931
--- ----- ---
Assets under management, end of period $18,146 $17,460 $18,062 3.9% 0.5%
======= ======= =======
Percentage of total assets under management 33.0% 33.2% 33.0%
==== ==== ====
Average assets under management for period $17,099 $17,114 $17,963 (0.1%) (4.8%)
======= ======= =======
Closed-end Funds
----------------
Assets under management, beginning of period $9,029 $8,958 $9,805
------ ------ ------
Inflows - - -
Outflows (86) (34) -
--- --- ---
Net outflows (86) (34) -
Market appreciation 235 237 222
Distributions (122) (132) (127)
---- ---- ----
Total increase 27 71 95
--- --- ---
Assets under management, end of period $9,056 $9,029 $9,900 0.3% (8.5%)
====== ====== ======
Percentage of total assets under management 16.4% 17.2% 18.1%
==== ==== ====
Average assets under management for period $8,743 $9,198 $9,978 (4.9%) (12.4%)
====== ====== ======
Total
-----
Assets under management, beginning of period $52,594 $49,744 $53,137
------- ------- -------
Inflows 3,794 3,286 2,651
Outflows (2,366) (1,828) (2,479)
------ ------ ------
Net inflows 1,428 1,458 172
Market appreciation 1,945 2,603 2,139
Distributions (908) (1,211) (782)
---- ------ ----
Total increase 2,465 2,850 1,529
----- ----- -----
Assets under management, end of period $55,059 $52,594 $54,666 4.7% 0.7%
======= ======= =======
Average assets under management for period $51,617 $51,967 $55,021 (0.7%) (6.2%)
======= ======= =======
Current period amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. Prior period amounts have been reclassified to conform with current period presentation.
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,
2016 2015 2015 2015 2015
---- ---- ---- ---- ----
Subadvisory
-----------
Assets under management, beginning of period $18,540 $17,500 $18,857
------- ------- -------
Inflows 1,073 841 727
Outflows (260) (353) (617)
---- ---- ----
Net inflows 813 488 110
Market appreciation 882 1,135 814
Distributions (653) (583) (539)
---- ---- ----
Total increase 1,042 1,040 385
Assets under management, end of period $19,582 $18,540 $19,242 5.6% 1.8%
======= ======= =======
Percentage of institutional assets under management 70.3% 71.0% 72.1%
==== ==== ====
Average assets under management for period $18,057 $18,180 $19,526 (0.7%) (7.5%)
======= ======= =======
Advisory
--------
Assets under management, beginning of period $7,565 $7,145 $7,344
------ ------ ------
Inflows 699 182 198
Outflows (322) (122) (387)
---- ---- ----
Net inflows (outflows) 377 60 (189)
Market appreciation 333 360 307
Total increase 710 420 118
Assets under management, end of period $8,275 $7,565 $7,462 9.4% 10.9%
====== ====== ======
Percentage of institutional assets under management 29.7% 29.0% 27.9%
==== ==== ====
Average assets under management for period $7,718 $7,475 $7,554 3.3% 2.2%
====== ====== ======
Total Institutional Accounts
----------------------------
Assets under management, beginning of period $26,105 $24,645 $26,201
------- ------- -------
Inflows 1,772 1,023 925
Outflows (582) (475) (1,004)
---- ---- ------
Net inflows (outflows) 1,190 548 (79)
Market appreciation 1,215 1,495 1,121
Distributions (653) (583) (539)
----
Total increase 1,752 1,460 503
----- ----- ---
Assets under management, end of period $27,857 $26,105 $26,704 6.7% 4.3%
======= ======= =======
Average assets under management for period $25,775 $25,655 $27,080 0.5% (4.8%)
======= ======= =======
Current period amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. Prior period amounts have been reclassified to conform with current period presentation.
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,
2016 2015 2015 2015 2015
---- ---- ---- ---- ----
U.S. Real Estate
----------------
Assets under management, beginning of period $27,814 $25,812 $28,357
------- ------- -------
Inflows 1,739 1,679 1,168
Outflows (1,004) (673) (1,078)
------ ---- ------
Net inflows 735 1,006 90
Market appreciation 1,227 1,976 1,430
Distributions (707) (980) (588)
---- ---- ----
Total increase 1,255 2,002 932
----- ----- ---
Assets under management, end of period $29,069 $27,814 $29,289 4.5% (0.8%)
======= ======= =======
Percentage of total assets under management 52.8% 52.9% 53.6%
==== ==== ====
Average assets under management for period $26,990 $27,195 $29,627 (0.8%) (8.9%)
======= ======= =======
Global/International Real Estate
--------------------------------
Assets under management, beginning of period $9,476 $9,379 $10,184
------ ------ -------
Inflows 777 155 275
Outflows (468) (449) (702)
---- ---- ----
Net inflows (outflows) 309 (294) (427)
Market appreciation 409 448 488
Distributions (42) (57) (56)
--- --- ---
Total increase 676 97 5
Assets under management, end of period $10,152 $9,476 $10,189 7.1% (0.4%)
======= ====== =======
Percentage of total assets under management 18.4% 18.0% 18.6%
==== ==== ====
Average assets under management for period $9,444 $9,605 $10,429 (1.7%) (9.4%)
====== ====== =======
Preferred Securities
--------------------
Assets under management, beginning of period $7,705 $6,877 $6,342
------ ------ ------
Inflows 1,135 1,145 709
Outflows (661) (427) (467)
---- ---- ----
Net inflows 474 718 242
Market appreciation 25 209 228
Distributions (105) (99) (80)
---- --- ---
Total increase 394 828 390
Assets under management, end of period $8,099 $7,705 $6,732 5.1% 20.3%
====== ====== ======
Percentage of total assets under management 14.7% 14.6% 12.3%
==== ==== ====
Average assets under management for period $7,799 $7,343 $6,597 6.2% 18.2%
====== ====== ======
Global Listed Infrastructure
----------------------------
Assets under management, beginning of period $5,147 $5,212 $5,697
------ ------ ------
Inflows 91 201 209
Outflows (178) (136) (157)
---- ---- ----
Net (outflows) inflows (87) 65 52
Market appreciation (depreciation) 253 (75) (4)
Distributions (41) (55) (44)
--- --- ---
Total increase (decrease) 125 (65) 4
--- ---
Assets under management, end of period $5,272 $5,147 $5,701 2.4% (7.5%)
====== ====== ======
Percentage of total assets under management 9.6% 9.8% 10.4%
=== === ====
Average assets under management for period $5,002 $5,324 $5,685 (6.0%) (12.0%)
====== ====== ======
Other
-----
Assets under management, beginning of period $2,452 $2,464 $2,557
------ ------ ------
Inflows 52 106 290
Outflows (55) (143) (75)
--- ---- ---
Net (outflows) inflows (3) (37) 215
Market appreciation (depreciation) 31 45 (3)
Distributions (13) (20) (14)
--- --- ---
Total increase (decrease) 15 (12) 198
Assets under management, end of period $2,467 $2,452 $2,755 0.6% (10.5%)
====== ====== ======
Percentage of total assets under management 4.5% 4.7% 5.0%
=== === ===
Average assets under management for period $2,382 $2,500 $2,683 (4.7%) (11.2%)
====== ====== ======
Total
-----
Assets under management, beginning of period $52,594 $49,744 $53,137
------- ------- -------
Inflows 3,794 3,286 2,651
Outflows (2,366) (1,828) (2,479)
------ ------ ------
Net inflows 1,428 1,458 172
Market appreciation 1,945 2,603 2,139
Distributions (908) (1,211) (782)
---- ------ ----
Total increase 2,465 2,850 1,529
Assets under management, end of period $55,059 $52,594 $54,666 4.7% 0.7%
======= ======= =======
Average assets under management for period $51,617 $51,967 $55,021 (0.7%) (6.2%)
======= ======= =======
Current period amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. Prior period amounts have been reclassified to conform with current period presentation.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cohen--steers-reports-first-quarter-2016-results-300254958.html
SOURCE Cohen & Steers, Inc.
