Cohen & Company Inc. (NYSE American: COHN), a financial
services firm specializing in an expanding range of capital markets
and asset management services, today reported financial results for
its third quarter ended September 30, 2023.
Summary Operating Results
|
|
|
|
($ in thousands) |
Three Months Ended |
|
|
Nine Months Ended |
|
|
9/30/23 |
|
|
6/30/23 |
|
|
9/30/22 |
|
|
9/30/23 |
|
|
9/30/22 |
|
Net trading |
$ 7,491 |
|
|
$ 7,416 |
|
|
$ 7,966 |
|
|
$ 23,117 |
|
|
$ 30,365 |
|
Asset management |
1,788 |
|
|
1,605 |
|
|
3,456 |
|
|
5,418 |
|
|
7,243 |
|
New issue and advisory |
7,247 |
|
|
1,395 |
|
|
13,235 |
|
|
9,542 |
|
|
20,486 |
|
Principal transactions and other revenue |
595 |
|
|
12,156 |
|
|
(1,192 |
) |
|
10,440 |
|
|
(26,157 |
) |
Total revenues |
17,121 |
|
|
22,572 |
|
|
23,465 |
|
|
48,517 |
|
|
31,937 |
|
Compensation and benefits |
15,219 |
|
|
10,001 |
|
|
15,227 |
|
|
35,757 |
|
|
41,320 |
|
Non-compensation operating
expenses |
6,006 |
|
|
5,572 |
|
|
5,390 |
|
|
17,348 |
|
|
15,809 |
|
Operating income (loss) |
(4,104 |
) |
|
6,999 |
|
|
2,848 |
|
|
(4,588 |
) |
|
(25,192 |
) |
Interest expense, net |
(1,685 |
) |
|
(1,630 |
) |
|
(1,346 |
) |
|
(4,907 |
) |
|
(3,803 |
) |
Income (loss) from equity
method affiliates |
(702 |
) |
|
(511 |
) |
|
618 |
|
|
(1,608 |
) |
|
(14,530 |
) |
Income (loss) before income tax expense (benefit) |
(6,491 |
) |
|
4,858 |
|
|
2,120 |
|
|
(11,103 |
) |
|
(43,525 |
) |
Income tax expense
(benefit) |
(755 |
) |
|
5,550 |
|
|
1,761 |
|
|
5,379 |
|
|
3,534 |
|
Net income (loss) |
(5,736 |
) |
|
(692 |
) |
|
359 |
|
|
(16,482 |
) |
|
(47,059 |
) |
Less: Net income (loss) attributable to the non-convertible
non-controlling interest |
1,936 |
|
|
6,503 |
|
|
(109 |
) |
|
8,536 |
|
|
(18,980 |
) |
Enterprise net income (loss) |
(7,672 |
) |
|
(7,195 |
) |
|
468 |
|
|
(25,018 |
) |
|
(28,079 |
) |
Less: Net income (loss) attributable to the convertible
non-controlling interest |
(7,249 |
) |
|
(594 |
) |
|
1,387 |
|
|
(15,357 |
) |
|
(17,691 |
) |
Net income (loss) attributable to Cohen & Company Inc. |
$ (423 |
) |
|
$ (6,601 |
) |
|
$ (919 |
) |
|
$ (9,661 |
) |
|
$ (10,388 |
) |
Fully diluted net income (loss) per share |
$ (0.28 |
) |
|
$ (4.34 |
) |
|
$ (0.64 |
) |
|
$ (6.40 |
) |
|
$ (7.33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax income
(loss) |
$ (8,427 |
) |
|
$ (1,645 |
) |
|
$ 2,229 |
|
|
$ (19,639 |
) |
|
$ (24,545 |
) |
Fully diluted adjusted pre-tax
income (loss) per share |
$ (1.52 |
) |
|
$ (0.30 |
) |
|
$ 0.41 |
|
|
$ (3.55 |
) |
|
$ (4.49 |
) |
Adjusted pre-tax income (loss) is not a measure recognized under
U.S. generally accepted accounting principles (“GAAP”). See Note 1
below.
Lester Brafman, Chief Executive Officer of Cohen
& Company, said, “Our results were mixed during the third
quarter, driven by stronger new issue and advisory revenue and
weaker principal transactions revenue. Of the $7.2 million new
issue and advisory revenue, $6.0 million was generated by the Cohen
& Company Capital Markets investment banking team and $1.2
million was generated by the European origination team. Our
principal transactions revenue was negatively affected by the $6.8
million write-off of our investment in Stoa USA Inc. / FlipOS, a
property technology company, which was impacted by the changing US
housing market. We are optimistic about the future and hope to see
more realization of our deal pipeline in the near term, and remain
focused on enhancing stockholder value including through continued
payment of our quarterly dividend.”
Financial Highlights
- Net loss attributable to Cohen
& Company Inc. was $0.4 million, or $0.28 per diluted share,
for the three months ended September 30, 2023, compared to net loss
of $6.6 million, or $4.34 per diluted share, for the three months
ended June 30, 2023, and net loss of $0.9 million, or $0.64 per
diluted share, for the three months ended September 30, 2022.
Adjusted pre-tax loss was $8.4 million, or $1.52 per diluted share,
for the three months ended September 30, 2023, compared to adjusted
pre-tax loss of $1.6 million, or $0.30 per diluted share, for the
three months ended June 30, 2023, and adjusted pre-tax income of
$2.2 million, or $0.41 per diluted share, for the three months
ended September 30, 2022. Adjusted pre-tax income (loss) and
adjusted pre-tax income (loss) per diluted share are not measures
recognized under GAAP. See Note 1 below.
- Revenues were $17.1 million for the
three months ended September 30, 2023, compared to $22.6 million
for the prior quarter and $23.5 million for the prior year quarter.
- Net trading revenue was $7.5
million for the three months ended September 30, 2023, similar to
the prior quarter and down $0.5 million from the prior year
quarter. The decrease from the prior year quarter was due primarily
to lower trading revenue by our corporate, primary CD, and
municipal groups, partially offset by our treasury and mortgage
groups.
- Asset management revenue was $1.8
million for the three months ended September 30, 2023, up $0.2
million from the prior quarter and down $1.7 million from the prior
year quarter. The decrease from the prior year quarter was due
primarily to the successful auction of an Alesco CDO in September
2022, and the accompanying $1.6 million of subordinated management
fees in arrears that were recorded in the prior year quarter.
- New issue and advisory revenue was
$7.2 million for the three months ended September 30, 2023, up $5.9
million from the prior quarter and down $6.0 million from the prior
year quarter. In the current quarter, the Cohen & Company
Capital Markets investment banking team generated $6.0 million and
the European insurance origination team generated $1.2 million of
the new issue and advisory revenue.
- Principal transactions and other
revenue was $0.6 million for the three months ended September 30,
2023, compared to $12.2 million in the prior quarter and negative
$1.2 million in the prior year quarter. The current quarter
includes negative $6.8 million from the write down of our
investment in Stoa USA Inc. / FlipOS. During September 2019 through
March 2023, the Company invested a cumulative $0.8 million of cash
in Stoa USA Inc. / FlipOS, the value of which was increased by
positive mark-to-market adjustments when Stoa USA Inc. / FlipOS
received additional rounds of private equity funding in 2021 and
2022. During the third quarter of 2023, Stoa USA Inc. / FlipOS
ceased operations.
- Compensation and benefits expense
during the three months ended September 30, 2023 increased $5.2
million from the prior quarter and was even with the prior year
quarter. The number of Company employees was 114 as of September
30, 2023, compared to 117 as of June 30, 2023, and 122 as of
September 30, 2022.
- Interest expense during the three
months ended September 30, 2023 was comparable to the prior quarter
and increased $0.3 million from the prior year quarter. The
increase from the prior year quarter was primarily due to higher
interest on our trust preferred securities debt.
- Loss from equity method affiliates
for the three months ended September 30, 2023 was $0.7 million,
compared to loss from equity method affiliates of $0.5 million for
the prior quarter and income from equity method affiliates of $0.6
million for the prior year quarter.
- Income tax benefit for the three
months ended September 30, 2023 was $0.8 million, compared to
income tax expense of $5.6 million in the prior quarter, and income
tax expense of $1.8 million in the prior year quarter. The Company
will continue to evaluate its operations on a quarterly basis and
may adjust the valuation allowance applied against the Company's
net operating loss and net capital loss tax assets. Future
adjustments could be material and may result in additional tax
benefit or tax expense.
Total Equity and Dividend Declaration
- As of September 30, 2023, total
equity was $72.7 million, compared to $94.0 million as of December
31, 2022; the non-convertible non-controlling interest component of
total equity was $6.2 million as of September 30, 2023 and $17
thousand as of December 31, 2022. Thus, the total equity excluding
the non-convertible non-controlling interest component was $66.5
million as of September 30, 2023, a $27.5 million decrease from
$94.0 million as of December 31, 2022.
- The Company’s Board of Directors
has declared a quarterly dividend of $0.25 per share, payable on
December 1, 2023, to stockholders of record as of November 17,
2023. The Board of Directors will continue to evaluate the dividend
policy each quarter, and future decisions regarding dividends may
be impacted by quarterly operating results and the Company’s
capital needs.
Update on Quarterly Conference Calls
Cohen & Company will not conduct quarterly
conference calls for the foreseeable future. The Company intends to
continue its practice of issuing earnings releases in connection
with the filing of its quarterly and annual reports. Investors can
find contact information at the bottom of this release should they
have any questions about the third quarter results or the
Company.
About Cohen & Company
Cohen & Company is a financial services
company specializing in an expanding range of capital markets and
asset management services. Cohen & Company’s operating segments
are Capital Markets, Asset Management, and Principal Investing. The
Capital Markets segment consists of fixed income sales, trading,
and gestation repo financing as well as new issue placements in
corporate and securitized products, and advisory services,
operating primarily through Cohen & Company’s subsidiaries,
J.V.B. Financial Group, LLC in the United States and Cohen &
Company Financial (Europe) S.A. in Europe. A division of JVB, Cohen
& Company Capital Markets is the Company’s full-service
boutique investment bank with a focus on mergers and acquisitions,
capital markets, and SPAC advisory services. The Asset Management
segment manages assets through collateralized debt obligations,
managed accounts, and investment funds. As of September 30, 2023,
the Company managed approximately $2.0 billion in primarily fixed
income assets in a variety of asset classes including US and
European trust preferred securities, subordinated debt, and
corporate loans. The Principal Investing segment is comprised
primarily of investments the Company holds related to its SPAC
franchise and other investments the Company has made for the
purpose of earning an investment return rather than investments
made to support its trading or other capital markets business
activity. For more information, please visit
www.cohenandcompany.com.
Note 1: Adjusted pre-tax income
(loss) and adjusted pre-tax income (loss) per share are non-GAAP
measures of performance. Please see the discussion under “Non-GAAP
Measures” below. Also see the tables below for the reconciliations
of non-GAAP measures of performance to their corresponding GAAP
measures of performance.
Forward-looking Statements
This communication contains certain statements,
estimates, and forecasts with respect to future performance and
events. These statements, estimates, and forecasts are
“forward-looking statements.” In some cases, forward-looking
statements can be identified by the use of forward-looking
terminology such as “may,” “might,” “will,” “should,” “expect,”
“plan,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” “seek,” or “continue” or the negatives thereof or
variations thereon or similar terminology. All statements other
than statements of historical fact included in this communication
are forward-looking statements and are based on various underlying
assumptions and expectations and are subject to known and unknown
risks, uncertainties, and assumptions, and may include projections
of our future financial performance based on our growth strategies
and anticipated trends in our business. These statements are based
on our current expectations and projections about future events.
There are important factors that could cause our actual results,
level of activity, performance, or achievements to differ
materially from the results, level of activity, performance, or
achievements expressed or implied in the forward-looking statements
including, but not limited to, those discussed under the heading
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition” in our filings with the Securities and
Exchange Commission (“SEC”), which are available at the SEC’s
website at www.sec.gov and our website at
www.cohenandcompany.com/investor-relations/sec-filings. Such risk
factors include the following: (a) a decline in general economic
conditions or the global financial markets, including those caused
by inflation, raising interest rates, and the current geopolitical
situation, (b) losses caused by financial or other problems
experienced by third parties, (c) losses due to unidentified or
unanticipated risks, (d) a lack of liquidity, i.e., ready access to
funds for use in our businesses, (e) the ability to attract and
retain personnel, (f) litigation and regulatory issues, (g)
competitive pressure, (h) an inability to generate incremental
income from new or expanded businesses, (i) unanticipated market
closures or effects due to inclement weather or other disasters,
(j) losses (whether realized or unrealized) on our principal
investments, (k) the possibility that payments to the Company of
subordinated management fees from its CDOs will continue to be
deferred or will be discontinued, (l) the possibility that the
stockholder rights plan may fail to preserve the value of the
Company’s deferred tax assets, whether as a result of the
acquisition by a person of 5% of the Company’s common stock or
otherwise, (m) the Company’s reduction in the volume of its
investments into SPACs, (n) the difficulty in identifying potential
business combinations as a result of increased competition in the
SPAC market, (o) the value of our holdings of founders shares in
post-business combination companies is volatile and may decline and
the possibility that significant portions of the founder shares may
remain restricted for a long period of time, (p) the possibility
that the Company will stop paying quarterly dividends to its
stockholders, (q) the possibility that the Company will incur
additional losses liquidating collateral related to a reverse repo
with now bankrupt First Guaranty Mortgage Corporation, and (r) the
impacts of rising interest rates and inflation. As a result, there
can be no assurance that the forward-looking statements included in
this communication will prove to be accurate or correct. In light
of these risks, uncertainties, and assumptions, the future
performance or events described in the forward-looking statements
in this communication might not occur. Accordingly, you should not
rely upon forward-looking statements as a prediction of actual
results and we do not undertake any obligation to update any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Cautionary Note Regarding Quarterly Financial
Results
Due to the nature of our business, our revenue
and operating results may fluctuate materially from quarter to
quarter. Accordingly, revenue and net income in any particular
quarter may not be indicative of future results. Further, our
employee compensation arrangements are in large part
incentive-based and, therefore, will fluctuate with revenue. The
amount of compensation expense recognized in any one quarter may
not be indicative of such expense in future periods. As a result,
we suggest that annual results may be the most meaningful gauge for
investors in evaluating our business performance.
|
COHEN & COMPANY INC. |
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|
|
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
9/30/23 |
|
6/30/23 |
|
9/30/22 |
|
9/30/23 |
|
9/30/22 |
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net trading |
$ |
7,491 |
|
|
$ |
7,416 |
|
|
$ |
7,966 |
|
|
$ |
23,117 |
|
|
$ |
30,365 |
|
|
|
|
|
Asset management |
|
1,788 |
|
|
|
1,605 |
|
|
|
3,456 |
|
|
|
5,418 |
|
|
|
7,243 |
|
|
|
|
|
New issue and advisory |
|
7,247 |
|
|
|
1,395 |
|
|
|
13,235 |
|
|
|
9,542 |
|
|
|
20,486 |
|
|
|
|
|
Principal transactions and other revenue |
|
595 |
|
|
|
12,156 |
|
|
|
(1,192 |
) |
|
|
10,440 |
|
|
|
(26,157 |
) |
|
|
|
|
Total revenues |
|
17,121 |
|
|
|
22,572 |
|
|
|
23,465 |
|
|
|
48,517 |
|
|
|
31,937 |
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
15,219 |
|
|
|
10,001 |
|
|
|
15,227 |
|
|
|
35,757 |
|
|
|
41,320 |
|
|
|
|
|
Business development, occupancy, equipment |
|
1,268 |
|
|
|
1,318 |
|
|
|
1,234 |
|
|
|
3,887 |
|
|
|
3,777 |
|
|
|
|
|
Subscriptions, clearing, and execution |
|
2,409 |
|
|
|
2,343 |
|
|
|
2,112 |
|
|
|
6,877 |
|
|
|
6,025 |
|
|
|
|
|
Professional services and other operating |
|
2,189 |
|
|
|
1,762 |
|
|
|
1,905 |
|
|
|
6,151 |
|
|
|
5,593 |
|
|
|
|
|
Depreciation and amortization |
|
140 |
|
|
|
149 |
|
|
|
139 |
|
|
|
433 |
|
|
|
414 |
|
|
|
|
|
Total operating expenses |
|
21,225 |
|
|
|
15,573 |
|
|
|
20,617 |
|
|
|
53,105 |
|
|
|
57,129 |
|
|
|
|
|
Operating income (loss) |
|
(4,104 |
) |
|
|
6,999 |
|
|
|
2,848 |
|
|
|
(4,588 |
) |
|
|
(25,192 |
) |
|
|
|
|
Non-operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(1,685 |
) |
|
|
(1,630 |
) |
|
|
(1,346 |
) |
|
|
(4,907 |
) |
|
|
(3,803 |
) |
|
|
|
|
Income (loss) from equity method affiliates |
|
(702 |
) |
|
|
(511 |
) |
|
|
618 |
|
|
|
(1,608 |
) |
|
|
(14,530 |
) |
|
|
|
|
Income (loss) before income tax expense (benefit) |
|
(6,491 |
) |
|
|
4,858 |
|
|
|
2,120 |
|
|
|
(11,103 |
) |
|
|
(43,525 |
) |
|
|
|
|
Income tax expense (benefit) |
|
(755 |
) |
|
|
5,550 |
|
|
|
1,761 |
|
|
|
5,379 |
|
|
|
3,534 |
|
|
|
|
|
Net income (loss) |
|
(5,736 |
) |
|
|
(692 |
) |
|
|
359 |
|
|
|
(16,482 |
) |
|
|
(47,059 |
) |
|
|
|
|
Less: Net income (loss) attributable to the non-convertible
non-controlling interest |
|
1,936 |
|
|
|
6,503 |
|
|
|
(109 |
) |
|
|
8,536 |
|
|
|
(18,980 |
) |
|
|
|
|
Enterprise net income (loss) |
|
(7,672 |
) |
|
|
(7,195 |
) |
|
|
468 |
|
|
|
(25,018 |
) |
|
|
(28,079 |
) |
|
|
|
|
Less: Net income (loss) attributable to the convertible
non-controlling interest |
|
(7,249 |
) |
|
|
(594 |
) |
|
|
1,387 |
|
|
|
(15,357 |
) |
|
|
(17,691 |
) |
|
|
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
(423 |
) |
|
$ |
(6,601 |
) |
|
$ |
(919 |
) |
|
$ |
(9,661 |
) |
|
$ |
(10,388 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Cohen & Company Inc. |
$ |
(423 |
) |
|
$ |
(6,601 |
) |
|
$ |
(919 |
) |
|
$ |
(9,661 |
) |
|
$ |
(10,388 |
) |
|
|
|
|
Basic shares
outstanding |
|
1,522 |
|
|
|
1,520 |
|
|
|
1,429 |
|
|
|
1,510 |
|
|
|
1,417 |
|
|
|
|
|
Net income
(loss) attributable to Cohen & Company Inc. per share |
$ |
(0.28 |
) |
|
$ |
(4.34 |
) |
|
$ |
(0.64 |
) |
|
$ |
(6.40 |
) |
|
$ |
(7.33 |
) |
|
|
|
|
Fully
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Cohen & Company Inc. |
$ |
(423 |
) |
|
$ |
(6,601 |
) |
|
$ |
(919 |
) |
|
$ |
(9,661 |
) |
|
$ |
(10,388 |
) |
|
|
|
|
Net income
(loss) attributable to the convertible non-controlling
interest |
|
(7,249 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Income tax
and conversion adjustment |
|
6,114 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Net income
(loss) attributable to Cohen & Company Inc. for fully diluted
net income (loss) per share calculation |
$ |
(1,558 |
) |
|
$ |
(6,601 |
) |
|
$ |
(919 |
) |
|
$ |
(9,661 |
) |
|
$ |
(10,388 |
) |
|
|
|
|
Basic shares
outstanding |
|
1,522 |
|
|
|
1,520 |
|
|
|
1,429 |
|
|
|
1,510 |
|
|
|
1,417 |
|
|
|
|
|
Unrestricted
Operating LLC membership units exchangeable into COHN shares |
|
4,014 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Fully
diluted shares outstanding (1) |
|
5,536 |
|
|
|
1,520 |
|
|
|
1,429 |
|
|
|
1,510 |
|
|
|
1,417 |
|
|
|
|
|
Fully
diluted net income (loss) per share |
$ |
(0.28 |
) |
|
$ |
(4.34 |
) |
|
$ |
(0.64 |
) |
|
$ |
(6.40 |
) |
|
$ |
(7.33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted pre-tax income (loss) to net income
(loss) attributable to Cohen & Company Inc. and calculations of
per share amounts |
|
|
|
Net income
(loss) attributable to Cohen & Company Inc. |
$ |
(423 |
) |
|
$ |
(6,601 |
) |
|
$ |
(919 |
) |
|
$ |
(9,661 |
) |
|
$ |
(10,388 |
) |
|
|
|
|
Addback
(deduct): Income tax expense (benefit) |
|
(755 |
) |
|
|
5,550 |
|
|
|
1,761 |
|
|
|
5,379 |
|
|
|
3,534 |
|
|
|
|
|
Addback
(deduct): Net income (loss) attributable to the convertible
non-controlling interest |
|
(7,249 |
) |
|
|
(594 |
) |
|
|
1,387 |
|
|
|
(15,357 |
) |
|
|
(17,691 |
) |
|
|
|
|
Adjusted
pre-tax income (loss) |
|
(8,427 |
) |
|
|
(1,645 |
) |
|
|
2,229 |
|
|
|
(19,639 |
) |
|
|
(24,545 |
) |
|
|
|
|
Net interest
attributable to convertible debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
327 |
|
|
|
|
|
Enterprise
pre-tax income (loss) for fully diluted adjusted pre-tax income
(loss) per share calculation |
$ |
(8,427 |
) |
|
$ |
(1,645 |
) |
|
$ |
2,229 |
|
|
$ |
(19,639 |
) |
|
$ |
(24,218 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully diluted shares outstanding (2) |
|
5,545 |
|
|
|
5,535 |
|
|
|
5,394 |
|
|
|
5,528 |
|
|
|
5,389 |
|
|
|
|
|
Fully
diluted adjusted pre-tax income (loss) per share |
$ |
(1.52 |
) |
|
$ |
(0.30 |
) |
|
$ |
0.41 |
|
|
$ |
(3.55 |
) |
|
$ |
(4.49 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) When the fully diluted net income (loss) per share is
anti-dilutive, the basic shares outstanding are presented on this
line item. |
(2) Adjusted fully diluted shares outstanding includes (a) weighted
average unrestricted and restricted Operating LLC units
exchangeable into COHN shares and (b) weighted average unrestricted
and restricted shares, even during periods when the corresponding
GAAP calculation of fully diluted shares outstanding above does not
include them. The Operating LLC units are always included because
the non-GAAP measure of performance, adjusted pre-tax income
(loss), always includes net income (loss) attributable to the
corresponding convertible interest. |
COHEN & COMPANY INC. |
|
CONSOLIDATED BALANCE SHEETS |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
September 30.
2023 |
|
|
|
|
|
(unaudited) |
|
December 31, 2022 |
|
|
|
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
13,350 |
|
|
$ |
29,101 |
|
|
|
|
Receivables from brokers, dealers, and clearing agencies |
|
106,740 |
|
|
|
140,933 |
|
|
|
|
Due from related parties |
|
800 |
|
|
|
787 |
|
|
|
|
Other receivables |
|
5,947 |
|
|
|
9,527 |
|
|
|
|
Investments - trading |
|
193,476 |
|
|
|
211,828 |
|
|
|
|
Other investments, at fair value |
|
40,324 |
|
|
|
28,022 |
|
|
|
|
Receivables under resale agreements |
|
418,134 |
|
|
|
437,692 |
|
|
|
|
Investment in equity method affiliates |
|
8,760 |
|
|
|
8,929 |
|
|
|
|
Deferred income taxes |
|
1,735 |
|
|
|
6,934 |
|
|
|
|
Goodwill |
|
109 |
|
|
|
109 |
|
|
|
|
Right-of-use asset - operating leases |
|
8,055 |
|
|
|
9,647 |
|
|
|
|
Other assets |
|
3,569 |
|
|
|
3,546 |
|
|
|
|
Total assets |
$ |
800,999 |
|
|
$ |
887,055 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Payables to brokers, dealers, and clearing agencies |
$ |
129,773 |
|
|
$ |
134,985 |
|
|
|
|
Accounts payable and other liabilities |
|
6,217 |
|
|
|
11,439 |
|
|
|
|
Accrued compensation |
|
14,337 |
|
|
|
12,434 |
|
|
|
|
Trading securities sold, not yet purchased |
|
95,755 |
|
|
|
133,957 |
|
|
|
|
Other investments sold, not yet purchased, at fair value |
|
18,131 |
|
|
|
78 |
|
|
|
|
Securities sold under agreements to repurchase |
|
417,946 |
|
|
|
452,797 |
|
|
|
|
Operating lease liability |
|
8,772 |
|
|
|
10,447 |
|
|
|
|
Redeemable financial instruments |
|
7,868 |
|
|
|
7,868 |
|
|
|
|
Debt |
|
29,479 |
|
|
|
29,024 |
|
|
|
|
Total liabilities |
|
728,278 |
|
|
|
793,029 |
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Voting non-convertible preferred stock |
|
27 |
|
|
|
27 |
|
|
|
|
Common stock |
|
18 |
|
|
|
17 |
|
|
|
|
Additional paid-in capital |
|
74,264 |
|
|
|
72,801 |
|
|
|
|
Accumulated other comprehensive loss |
|
(972 |
) |
|
|
(955 |
) |
|
|
|
Accumulated deficit |
|
(36,181 |
) |
|
|
(25,151 |
) |
|
|
|
Total stockholders' equity |
|
37,156 |
|
|
|
46,739 |
|
|
|
|
Non-controlling interest |
|
35,565 |
|
|
|
47,287 |
|
|
|
|
Total equity |
|
72,721 |
|
|
|
94,026 |
|
|
|
|
Total liabilities and equity |
$ |
800,999 |
|
|
$ |
887,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
Adjusted pre-tax income (loss) and adjusted
pre-tax income (loss) per diluted share
Adjusted pre-tax income (loss) is not a
financial measure recognized by GAAP. Adjusted pre-tax income
(loss) represents net income (loss) attributable to Cohen &
Company Inc., computed in accordance with GAAP, excluding income
tax expense (benefit), plus the net income (loss) attributable to
the convertible non-controlling interest. Income tax expense
(benefit) has been excluded because a pre-tax measurement of
enterprise earnings that includes net income (loss) attributable to
the convertible non-controlling interest is a useful and
appropriate measure of performance. Furthermore, our income tax
expense (benefit) has been, and we expect it will continue to be, a
substantially non-cash item for the foreseeable future, generated
from adjustments in our valuation allowance applied to the
Company’s gross deferred tax assets. Convertible non-controlling
interest is added back to adjusted pre-tax income because the
underlying Cohen & Company, LLC equity units are convertible
into Cohen & Company Inc. shares. Adjusted pre-tax income
(loss) per diluted share is calculated by dividing adjusted pre-tax
income (loss) by diluted shares outstanding, both of which include
adjustments used in the corresponding calculation in accordance
with GAAP.
We present adjusted pre-tax income (loss) and
related per diluted share amounts in this release because we
consider them to be useful and appropriate supplemental measures of
our performance. Adjusted pre-tax income (loss) and related per
diluted share amounts help us to evaluate our performance without
the effects of certain GAAP calculations that may not have a direct
cash or recurring impact on our current operating performance. In
addition, our management uses adjusted pre-tax income (loss) and
related per diluted share amounts to evaluate the performance of
our enterprise operations. Adjusted pre-tax income (loss) and
related per diluted share amounts, as we define them, are not
necessarily comparable to similarly named measures of other
companies and may not be appropriate measures for performance
relative to other companies. Adjusted pre-tax income (loss) should
not be assessed in isolation from or construed as a substitute for
net income (loss) attributable to Cohen & Company Inc. prepared
in accordance with GAAP. Adjusted pre-tax income (loss) is not
intended to represent and should not be considered to be a more
meaningful measure than, or an alternative to, measures of
operating performance as determined in accordance with GAAP.
Contact: |
|
|
|
Investors - |
Media |
Cohen & Company Inc. |
Joele Frank, Wilkinson Brimmer
Katcher |
Joseph W. Pooler, Jr. |
Zach Genirs |
Executive Vice President and |
212-355-4449 |
Chief Financial Officer |
zgenirs@joelefrank.com |
215-701-8952 |
|
investorrelations@cohenandcompany.com |
|
Cohen & (AMEX:COHN)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Cohen & (AMEX:COHN)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024