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 fourth quarter and full year ended December 31, 2023.
Summary Operating Results
|
Three Months Ended |
|
Twelve Months Ended |
($ in thousands) |
12/31/23 |
|
9/30/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
|
|
|
|
|
|
|
|
|
|
Net trading |
$ |
7,809 |
|
|
$ |
7,491 |
|
|
$ |
9,644 |
|
|
$ |
30,926 |
|
|
$ |
40,009 |
|
Asset management |
|
1,919 |
|
|
|
1,788 |
|
|
|
1,761 |
|
|
|
7,337 |
|
|
|
9,004 |
|
New issue and advisory |
|
18,722 |
|
|
|
7,247 |
|
|
|
4,235 |
|
|
|
28,264 |
|
|
|
24,721 |
|
Principal transactions and other revenue |
|
6,014 |
|
|
|
595 |
|
|
|
(3,190 |
) |
|
|
16,454 |
|
|
|
(29,347 |
) |
Total revenues |
|
34,464 |
|
|
|
17,121 |
|
|
|
12,450 |
|
|
|
82,981 |
|
|
|
44,387 |
|
Compensation and benefits |
|
16,335 |
|
|
|
15,219 |
|
|
|
8,970 |
|
|
|
52,092 |
|
|
|
50,290 |
|
Non-compensation operating expenses |
|
6,680 |
|
|
|
6,006 |
|
|
|
6,251 |
|
|
|
24,028 |
|
|
|
22,060 |
|
Operating income (loss) |
|
11,449 |
|
|
|
(4,104 |
) |
|
|
(2,771 |
) |
|
|
6,861 |
|
|
|
(27,963 |
) |
Interest expense, net |
|
(1,619 |
) |
|
|
(1,685 |
) |
|
|
(1,179 |
) |
|
|
(6,526 |
) |
|
|
(4,982 |
) |
Income (loss) from equity method affiliates |
|
17,217 |
|
|
|
(702 |
) |
|
|
(6,401 |
) |
|
|
15,609 |
|
|
|
(20,931 |
) |
Income (loss) before income tax expense (benefit) |
|
27,047 |
|
|
|
(6,491 |
) |
|
|
(10,351 |
) |
|
|
15,944 |
|
|
|
(53,876 |
) |
Income tax expense (benefit) |
|
166 |
|
|
|
(755 |
) |
|
|
1,260 |
|
|
|
5,545 |
|
|
|
4,794 |
|
Net income (loss) |
|
26,881 |
|
|
|
(5,736 |
) |
|
|
(11,611 |
) |
|
|
10,399 |
|
|
|
(58,670 |
) |
Less: Net income (loss) attributable to the non-convertible
non-controlling interest |
|
11,054 |
|
|
|
1,936 |
|
|
|
(4,223 |
) |
|
|
19,590 |
|
|
|
(23,203 |
) |
Enterprise net income (loss) |
|
15,827 |
|
|
|
(7,672 |
) |
|
|
(7,388 |
) |
|
|
(9,191 |
) |
|
|
(35,467 |
) |
Less: Net income (loss) attributable to the convertible
non-controlling interest |
|
11,279 |
|
|
|
(7,249 |
) |
|
|
(4,387 |
) |
|
|
(4,078 |
) |
|
|
(22,078 |
) |
Net income (loss) attributable to Cohen & Company Inc. |
$ |
4,548 |
|
|
$ |
(423 |
) |
|
$ |
(3,001 |
) |
|
$ |
(5,113 |
) |
|
$ |
(13,389 |
) |
Fully diluted net income (loss) per share |
$ |
2.97 |
|
|
$ |
(0.28 |
) |
|
$ |
(2.10 |
) |
|
$ |
(3.38 |
) |
|
$ |
(9.43 |
) |
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax income (loss) |
$ |
15,993 |
|
|
$ |
(8,427 |
) |
|
$ |
(6,128 |
) |
|
$ |
(3,646 |
) |
|
$ |
(30,673 |
) |
Fully diluted adjusted pre-tax income (loss) per share |
$ |
2.88 |
|
|
$ |
(1.52 |
) |
|
$ |
(1.13 |
) |
|
$ |
(0.66 |
) |
|
$ |
(5.62 |
) |
|
|
|
|
|
|
|
|
|
|
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, “During most of 2023, the high interest rate
environment negatively impacted our investment banking, trading,
and commercial real estate businesses, however, Cohen & Company
Capital Markets was able to close four significant investment
banking transactions in the fourth quarter. Also, we recognized
substantial income from our equity method investments in the
sponsors of four SPACs that closed their business combinations
during the fourth quarter. The banking transactions and the
earnings from our equity method investments drove our $16 million
of adjusted pre-tax income in the quarter. In addition, recently we
announced the appointment of George Holstead as Managing Director
and Head of the Middle Markets Group in JVB’s Boca Raton office,
and we are excited to expand our trading platform. Looking ahead,
we believe that we are well positioned going into the new year, and
we remain focused on enhancing long-term, sustained value for our
stockholders, including through continued payment of our quarterly
dividend.”
Financial Highlights
- Net income attributable to Cohen
& Company Inc. was $4.5 million, or $2.97 per diluted share,
for the three months ended December 31, 2023, compared to net loss
of $0.4 million, or $0.28 per diluted share, for the three months
ended September 30, 2023, and net loss of $3.0 million, or $2.10
per diluted share, for the three months ended December 31, 2022.
Adjusted pre-tax income was $16.0 million, or $2.88 per diluted
share, for the three months ended December 31, 2023, compared to
adjusted pre-tax loss of $8.4 million, or $1.52 per diluted share,
for the three months ended September 30, 2023, and adjusted pre-tax
loss of $6.1 million, or $1.13 per diluted share, for the three
months ended December 31, 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 $34.5 million for the
three months ended December 31, 2023, compared to $17.1 million for
the prior quarter and $12.5 million for the prior year quarter.
- Net trading revenue was $7.8
million for the three months ended December 31, 2023, up $0.3
million from the prior quarter and down $1.8 million from the prior
year quarter. The increase from the prior quarter was due primarily
to higher trading revenue by our corporate, agency, and municipal
groups, partially offset by our mortgage groups. The decrease from
the prior year quarter was due primarily to lower trading revenue
by our mortgage groups, partially offset by our agency and
municipal groups.
- Asset management revenue was $1.9
million for the three months ended December 31, 2023, up slightly
from both the prior and prior year quarters. The increase from both
prior quarters is primarily related to increased assets under
management in our European funds as well as a commercial real
estate servicing agreement entered into in November 2023.
- New issue and advisory revenue was
$18.7 million for the three months ended December 31, 2023, up
$11.5 million from the prior quarter and $14.5 million from the
prior year quarter. In the current quarter, the Cohen & Company
Capital Markets investment banking team generated $18.6 million and
the insurance origination team generated $0.1 million of the new
issue and advisory revenue.
- Principal transactions and other
revenue was $6.0 million for the three months ended December 31,
2023, compared to $0.6 million in the prior quarter and negative
$3.2 million in the prior year quarter. In all quarters presented,
the principal transactions and other revenue was primarily due to
mark-to-market adjustments on the Company’s principal investment
portfolio.
- Compensation and benefits expense
during the three months ended December 31, 2023 increased $1.1
million from the prior quarter and $7.4 million from the prior year
quarter. The number of Company employees was 118 as of December 31,
2023, compared to 114 as of September 30, 2023, and 121 as of
December 31, 2022.
- Interest expense during the three
months ended December 31, 2023 was comparable to the prior quarter
and increased $0.4 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 and redeemable
financial instrument.
- Income from equity method
affiliates for the three months ended December 31, 2023 was $17.2
million, compared to loss from equity method affiliates of $0.7
million for the prior quarter and loss from equity method
affiliates of $6.4 million for the prior year quarter. The increase
in the current quarter was primarily driven by $17.5 million of
income from our equity method investments in the sponsors of four
special purpose acquisition companies (SPACs) that closed their
business combinations during the fourth quarter of 2023, which
resulted in an increase in value of the founder shares to which we
are entitled to an allocation from the sponsors. For the three
months ended December 31, 2023, there was an offsetting credit
recorded in the net income (loss) attributable to the
non-convertible non-controlling interest line item of $4.9 million
related to the four SPACs that closed their business combinations
during the fourth quarter of 2023.
- Income tax expense for the three
months ended December 31, 2023 was $0.2 million, compared to income
tax benefit of $0.8 million in the prior quarter, and income tax
expense of $1.3 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 December 31, 2023, total
equity was $91.8 million, compared to $94.0 million as of December
31, 2022; the non-convertible non-controlling interest component of
total equity was $9.6 million as of December 31, 2023 and $17
thousand as of December 31, 2022. Thus, the total equity excluding
the non-convertible non-controlling interest component was $82.2
million as of December 31, 2023, an $11.8 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
April 5, 2024, to stockholders of record as of March 22, 2024. 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 fourth quarter and full year 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 leading boutique
investment bank that provides innovative strategic and financial
advice in M&A, capital markets, and SPAC advisory. The Asset
Management segment manages assets through collateralized debt
obligations, managed accounts, and investment funds. As of December
31, 2023, the Company managed approximately $2.4 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
Company’s 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 |
|
Twelve Months Ended |
|
|
|
12/31/23 |
|
9/30/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Net trading |
$ |
7,809 |
|
|
$ |
7,491 |
|
|
$ |
9,644 |
|
|
$ |
30,926 |
|
|
$ |
40,009 |
|
|
|
Asset management |
|
1,919 |
|
|
|
1,788 |
|
|
|
1,761 |
|
|
|
7,337 |
|
|
|
9,004 |
|
|
|
New issue and advisory |
|
18,722 |
|
|
|
7,247 |
|
|
|
4,235 |
|
|
|
28,264 |
|
|
|
24,721 |
|
|
|
Principal transactions and other revenue |
|
6,014 |
|
|
|
595 |
|
|
|
(3,190 |
) |
|
|
16,454 |
|
|
|
(29,347 |
) |
|
|
Total revenues |
|
34,464 |
|
|
|
17,121 |
|
|
|
12,450 |
|
|
|
82,981 |
|
|
|
44,387 |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
16,335 |
|
|
|
15,219 |
|
|
|
8,970 |
|
|
|
52,092 |
|
|
|
50,290 |
|
|
|
Business development, occupancy, equipment |
|
1,317 |
|
|
|
1,268 |
|
|
|
1,299 |
|
|
|
5,204 |
|
|
|
5,076 |
|
|
|
Subscriptions, clearing, and execution |
|
2,088 |
|
|
|
2,409 |
|
|
|
2,249 |
|
|
|
8,965 |
|
|
|
8,274 |
|
|
|
Professional services and other operating |
|
3,145 |
|
|
|
2,189 |
|
|
|
2,560 |
|
|
|
9,296 |
|
|
|
8,153 |
|
|
|
Depreciation and amortization |
|
130 |
|
|
|
140 |
|
|
|
143 |
|
|
|
563 |
|
|
|
557 |
|
|
|
Total operating expenses |
|
23,015 |
|
|
|
21,225 |
|
|
|
15,221 |
|
|
|
76,120 |
|
|
|
72,350 |
|
|
|
Operating income (loss) |
|
11,449 |
|
|
|
(4,104 |
) |
|
|
(2,771 |
) |
|
|
6,861 |
|
|
|
(27,963 |
) |
|
|
Non-operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(1,619 |
) |
|
|
(1,685 |
) |
|
|
(1,179 |
) |
|
|
(6,526 |
) |
|
|
(4,982 |
) |
|
|
Income (loss) from equity method affiliates |
|
17,217 |
|
|
|
(702 |
) |
|
|
(6,401 |
) |
|
|
15,609 |
|
|
|
(20,931 |
) |
|
|
Income (loss) before income tax expense (benefit) |
|
27,047 |
|
|
|
(6,491 |
) |
|
|
(10,351 |
) |
|
|
15,944 |
|
|
|
(53,876 |
) |
|
|
Income tax expense (benefit) |
|
166 |
|
|
|
(755 |
) |
|
|
1,260 |
|
|
|
5,545 |
|
|
|
4,794 |
|
|
|
Net income (loss) |
|
26,881 |
|
|
|
(5,736 |
) |
|
|
(11,611 |
) |
|
|
10,399 |
|
|
|
(58,670 |
) |
|
|
Less: Net income (loss) attributable to the non-convertible
non-controlling interest |
|
11,054 |
|
|
|
1,936 |
|
|
|
(4,223 |
) |
|
|
19,590 |
|
|
|
(23,203 |
) |
|
|
Enterprise net income (loss) |
|
15,827 |
|
|
|
(7,672 |
) |
|
|
(7,388 |
) |
|
|
(9,191 |
) |
|
|
(35,467 |
) |
|
|
Less: Net income (loss) attributable to the convertible
non-controlling interest |
|
11,279 |
|
|
|
(7,249 |
) |
|
|
(4,387 |
) |
|
|
(4,078 |
) |
|
|
(22,078 |
) |
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
4,548 |
|
|
$ |
(423 |
) |
|
$ |
(3,001 |
) |
|
$ |
(5,113 |
) |
|
$ |
(13,389 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
4,548 |
|
|
$ |
(423 |
) |
|
$ |
(3,001 |
) |
|
$ |
(5,113 |
) |
|
$ |
(13,389 |
) |
|
|
Basic shares outstanding |
|
1,522 |
|
|
|
1,522 |
|
|
|
1,429 |
|
|
|
1,513 |
|
|
|
1,420 |
|
|
|
Net income (loss) attributable to Cohen & Company Inc. per
share |
$ |
2.99 |
|
|
$ |
(0.28 |
) |
|
$ |
(2.10 |
) |
|
$ |
(3.38 |
) |
|
$ |
(9.43 |
) |
|
|
Fully Diluted |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
4,548 |
|
|
$ |
(423 |
) |
|
$ |
(3,001 |
) |
|
$ |
(5,113 |
) |
|
$ |
(13,389 |
) |
|
|
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 |
$ |
4,548 |
|
|
$ |
(1,558 |
) |
|
$ |
(3,001 |
) |
|
$ |
(5,113 |
) |
|
$ |
(13,389 |
) |
|
|
Basic shares outstanding |
|
1,522 |
|
|
|
1,522 |
|
|
|
1,429 |
|
|
|
1,513 |
|
|
|
1,420 |
|
|
|
Unrestricted Operating LLC membership units exchangeable into COHN
shares |
|
- |
|
|
|
4,014 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Additional dilutive shares |
|
9 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Fully diluted shares outstanding (1) |
|
1,531 |
|
|
|
5,536 |
|
|
|
1,429 |
|
|
|
1,513 |
|
|
|
1,420 |
|
|
|
Fully diluted net income (loss) per share |
$ |
2.97 |
|
|
$ |
(0.28 |
) |
|
$ |
(2.10 |
) |
|
$ |
(3.38 |
) |
|
$ |
(9.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
$ |
4,548 |
|
|
$ |
(423 |
) |
|
$ |
(3,001 |
) |
|
$ |
(5,113 |
) |
|
$ |
(13,389 |
) |
|
|
Addback (deduct): Income tax expense (benefit) |
|
166 |
|
|
|
(755 |
) |
|
|
1,260 |
|
|
|
5,545 |
|
|
|
4,794 |
|
|
|
Addback (deduct): Net income (loss) attributable to the convertible
non-controlling interest |
|
11,279 |
|
|
|
(7,249 |
) |
|
|
(4,387 |
) |
|
|
(4,078 |
) |
|
|
(22,078 |
) |
|
|
Adjusted pre-tax income (loss) |
|
15,993 |
|
|
|
(8,427 |
) |
|
|
(6,128 |
) |
|
|
(3,646 |
) |
|
|
(30,673 |
) |
|
|
Net interest attributable to convertible debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
327 |
|
|
|
Enterprise pre-tax income (loss) for fully diluted adjusted pre-tax
income (loss) per share calculation |
$ |
15,993 |
|
|
$ |
(8,427 |
) |
|
$ |
(6,128 |
) |
|
$ |
(3,646 |
) |
|
$ |
(30,346 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted fully diluted shares outstanding (2) |
|
5,546 |
|
|
|
5,545 |
|
|
|
5,424 |
|
|
|
5,533 |
|
|
|
5,398 |
|
|
|
Fully diluted adjusted pre-tax income (loss) per share |
$ |
2.88 |
|
|
$ |
(1.52 |
) |
|
$ |
(1.13 |
) |
|
$ |
(0.66 |
) |
|
$ |
(5.62 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
|
|
|
(unaudited) |
|
December 31, 2022 |
|
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
10,650 |
|
|
$ |
29,101 |
|
|
|
Receivables from brokers, dealers, and clearing agencies |
|
66,801 |
|
|
|
140,933 |
|
|
|
Due from related parties |
|
772 |
|
|
|
787 |
|
|
|
Other receivables |
|
5,373 |
|
|
|
9,527 |
|
|
|
Investments - trading |
|
181,328 |
|
|
|
211,828 |
|
|
|
Other investments, at fair value |
|
72,217 |
|
|
|
28,022 |
|
|
|
Receivables under resale agreements |
|
408,408 |
|
|
|
437,692 |
|
|
|
Investment in equity method affiliates |
|
14,241 |
|
|
|
8,929 |
|
|
|
Deferred income taxes |
|
1,580 |
|
|
|
6,934 |
|
|
|
Goodwill |
|
109 |
|
|
|
109 |
|
|
|
Right-of-use asset - operating leases |
|
7,541 |
|
|
|
9,647 |
|
|
|
Other assets |
|
3,741 |
|
|
|
3,546 |
|
|
|
Total assets |
$ |
772,761 |
|
|
$ |
887,055 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Payables to brokers, dealers, and clearing agencies |
$ |
111,085 |
|
|
$ |
134,985 |
|
|
|
Accounts payable and other liabilities |
|
8,115 |
|
|
|
11,439 |
|
|
|
Accrued compensation |
|
17,268 |
|
|
|
12,434 |
|
|
|
Trading securities sold, not yet purchased |
|
65,751 |
|
|
|
133,957 |
|
|
|
Other investments sold, not yet purchased, at fair value |
|
24,742 |
|
|
|
78 |
|
|
|
Securities sold under agreements to repurchase |
|
408,203 |
|
|
|
452,797 |
|
|
|
Operating lease liability |
|
8,216 |
|
|
|
10,447 |
|
|
|
Redeemable financial instruments |
|
7,868 |
|
|
|
7,868 |
|
|
|
Debt |
|
29,716 |
|
|
|
29,024 |
|
|
|
Total liabilities |
|
680,964 |
|
|
|
793,029 |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Voting non-convertible preferred stock |
|
27 |
|
|
|
27 |
|
|
|
Common stock |
|
19 |
|
|
|
17 |
|
|
|
Additional paid-in capital |
|
74,594 |
|
|
|
72,801 |
|
|
|
Accumulated other comprehensive loss |
|
(944 |
) |
|
|
(955 |
) |
|
|
Accumulated deficit |
|
(32,014 |
) |
|
|
(25,151 |
) |
|
|
Total stockholders' equity |
|
41,682 |
|
|
|
46,739 |
|
|
|
Non-controlling interest |
|
50,115 |
|
|
|
47,287 |
|
|
|
Total equity |
|
91,797 |
|
|
|
94,026 |
|
|
|
Total liabilities and equity |
$ |
772,761 |
|
|
$ |
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 |
|
|
|
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