COHEN & STEERS, INC. 
By NEW YORK, Jan. 26, 2011 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported net income attributable to common shareholders of $12.8 million, or $0.29 per diluted share and $0.30 per basic share, for the quarter ended December 31, 2010, compared with net income attributable to common shareholders of $11.6 million, or $0.27 per share (diluted and basic) for the quarter ended December 31, 2009. Total revenue for the fourth quarter of 2010 was $51.8 million, an increase of 29.9% from $39.9 million for the fourth quarter of 2009.
The fourth quarter 2010 results included an after-tax expense of approximately $0.06 per share associated primarily with the payment of an additional compensation agreement entered into in connection with the offering of Cohen & Steers Select Preferred and Income Fund, Inc., a closed-end mutual fund, and an after-tax gain of approximately $0.03 per share due to recoveries on the sale of securities. After adjusting for these items, earnings per share would have been $0.32 for the quarter ended December 31, 2010.
For the year ended December 31, 2010, the company recorded net income attributable to common shareholders of $46.4 million, or $1.07 per diluted share and $1.09 per basic share, compared with a net loss attributable to common shareholders of $1.7 million, or $0.04 per share (diluted and basic) for 2009. The 2010 results included after-tax gains of approximately $0.17 per share primarily due to recoveries on the sale of securities and the above mentioned after-tax expense of approximately $0.06 per share. After adjusting for these items, earnings per share would have been $0.96 for the year ended December 31, 2010. The 2009 results included after-tax expenses of $0.69 per share due to impairment charges. After adjusting for these items, earnings per share would have been $0.65 for the year ended December 31, 2009. Total revenue was $183.7 million for the year ended December 31, 2010, an increase of 48.7% from $123.6 million for the year ended December 31, 2009.
Assets Under Management
Assets under management were $34.5 billion as of December 31, 2010, an increase of 10.3% from $31.2 billion at September 30, 2010 and an increase of 39.0% from $24.8 billion at December 31, 2009. The increase from September 30, 2010 was due to market appreciation of $1.8 billion and net inflows of $1.4 billion. The increase from December 31, 2009 was due to market appreciation of $4.8 billion and net inflows of $4.8 billion. Average assets under management were $32.8 billion for the quarter ended December 31, 2010, an increase of 13.3% from $29.0 billion for the quarter ended September 30, 2010 and an increase of 42.7% from $23.0 billion for the quarter ended December 31, 2009.
Assets under management for open-end mutual funds were $8.5 billion as of December 31, 2010, an increase of 11.1% from $7.6 billion at September 30, 2010 and an increase of 35.0% from $6.3 billion at December 31, 2009. The increase from September 30, 2010 was due to market appreciation of $513 million and net inflows of $333 million. The increase from December 31, 2009 was due to market appreciation of $1.4 billion and net inflows of $798 million. Average assets under management for open-end mutual funds were $8.0 billion for the quarter ended December 31, 2010, an increase of 13.6% from $7.0 billion for the quarter ended September 30, 2010 and an increase of 37.2% from $5.8 billion for the quarter ended December 31, 2009.
Assets under management for closed-end mutual funds were $6.4 billion as of December 31, 2010, an increase of 7.6% from $5.9 billion at September 30, 2010 and an increase of 14.6% from $5.5 billion at December 31, 2009. The increase from September 30, 2010 was primarily due to the launch of Cohen & Steers Select Preferred and Income Fund, Inc., which raised $279 million, and market appreciation of $211 million. The increase from December 31, 2009 was due to market appreciation of $546 million and net inflows of $261 million. Average assets under management for closed-end mutual funds were $6.1 billion for the quarter ended December 31, 2010, an increase of 7.7% from $5.7 billion for the quarter ended September 30, 2010 and an increase of 14.5% from $5.4 billion for the quarter ended December 31, 2009.
Assets under management for institutional separate accounts were $19.6 billion as of December 31, 2010, an increase of 10.9% from $17.7 billion as of September 30, 2010 and an increase of 51.5% from $13.0 billion at December 31, 2009. The increase from September 30, 2010 was due to market appreciation of $1.1 billion and net inflows of $819 million, primarily from subadvisory relationships. The increase from December 31, 2009 was due to net inflows of $3.8 billion, primarily from subadvisory relationships, and market appreciation of $2.9 billion. Average assets under management for institutional separate accounts were $18.7 billion for the quarter ended December 31, 2010, an increase of 15.1% from $16.2 billion for the quarter ended September 30, 2010 and an increase of 58.2% from $11.8 billion for the quarter ended December 31, 2009.
Financial Highlights (Unaudited)
(in thousands, except per share data or as noted)
Three Months Ended Year Ended
------------------ ----------
December 31, September December December
2010 30, 2010 31, 2010 31, 2009
------------- --------- --------- --------
Revenue $51,790 $46,372 $183,738 $123,553
Expenses $38,737 $32,400 $130,952 $105,990
Operating income $13,053 $13,972 $52,786 $17,563
Operating margin 25.2% 30.1% 28.7% 14.2%
Total non-operating
income (loss) $5,134 $4,489 $12,708 $(13,409)
Net income (loss)
attributable to common
shareholders $12,751 $13,163 $46,397 $(1,710)
Diluted earnings (loss)
per share attributable
to common shareholders $0.29 $0.30 $1.07 $(0.04)
Assets under
management, end of
period (in millions) $34,462 $31,239 $34,462 $24,785
Average assets under
management for period
(in millions) $32,809 $28,961 $28,428 $17,443
Total revenue was $51.8 million for the three months ended December 31, 2010, an increase of 11.7% from $46.4 million for the three months ended September 30, 2010, primarily due to higher average assets under management. Operating expenses were $38.7 million for the three months ended December 31, 2010, an increase of 19.6% from $32.4 million for the three months ended September 30, 2010, primarily due to increases in distribution and service fees and general and administrative resulting from costs associated with the launch of Cohen & Steers Select Preferred and Income Fund, Inc. and a proportionate increase in employee compensation and benefits in line with the increase in revenue. After adjusting for the launch costs of approximately $4.1 million, operating expenses would have been $34.6 million for the three months ended December 31, 2010. Operating income was $13.1 million for the three months ended December 31, 2010, compared with operating income of $14.0 million for the three months ended September 30, 2010. After adjusting for the launch costs mentioned above, operating income would have been $17.2 million for the three months ended December 31, 2010. The company's operating margin decreased to 25.2% for the three months ended December 31, 2010 compared with 30.1% for the three months ended September 30, 2010, primarily due to the increase in the launch costs. After adjusting for the launch costs, the company's operating margin would have been 33.1% for the three months ended December 31, 2010. Non-operating income was $5.1 million for the three months ended December 31, 2010, an increase of 14.4% from $4.5 million for the three months ended September 30, 2010, primarily due to an increase in equity in earnings from the company's seed investments.
Balance Sheet Information
As of December 31, 2010, cash, cash equivalents and investments were $197 million. As of December 31, 2010, stockholders' equity was $233 million and the company had no long-term or short-term debt.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, January 27, 2011 at 11:00 a.m. (ET) to discuss the company's fourth quarter and full year results. Investors and analysts can access the live conference call by dialing (800) 769-9015 (domestic) or (212) 231-2913 (international); passcode: 21507638. 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 January 27, 2011 and can be accessed at (800) 633-8284 (domestic) or (402) 977-9140 (international); passcode: 21507638. Internet access to the webcast, which includes audio (listen-only), will be available on the company's Web site at www.cohenandsteers.com under "Corporate Info." The webcast will be archived on the Web site for two weeks.
About Cohen & Steers, Inc.
Cohen & Steers is a manager of portfolios specializing in U.S. and international real estate securities, large cap value stocks, listed infrastructure and utilities, 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 and Seattle, Cohen & Steers serves individual and institutional 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, 2009, which is accessible on the Securities and Exchange Commission's Web site at www.sec.gov and on the company's Web site 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
------------------
September December
December 31, 2010 30, 2010 31, 2009
----------------- --------- --------
Revenue
Investment advisory and
administration fees $48,008 $42,909 $36,567
Distribution and service
fees 2,419 2,259 2,224
Portfolio consulting and
other 1,363 1,204 1,080
Total revenue 51,790 46,372 39,871
------ ------ ------
Expenses
Employee compensation and
benefits 20,198 18,085 14,915
Distribution and service
fees 8,425 5,065 4,629
General and
administrative 8,683 7,880 7,860
Depreciation and
amortization 1,138 1,126 1,101
Amortization, deferred
commissions 293 244 178
Total expenses 38,737 32,400 28,683
------ ------ ------
Operating income 13,053 13,972 11,188
------ ------ ------
Non-operating income
Interest and dividend
income -net 182 710 444
Gain from trading
securities -net - - 2,413
Gain from available-for-
sale securities - net 1,961 2,124 996
Equity in earnings of
affiliates 2,825 1,005 340
Other 166 650 (113)
Total non-operating
income 5,134 4,489 4,080
----- ----- -----
Income before provision
for income taxes 18,187 18,461 15,268
Provision for income
taxes 5,436 5,298 3,256
Net income 12,751 13,163 12,012
Less: Net income
attributable to
redeemable
noncontrolling interest - - (367)
Net income attributable
to common shareholders $12,751 $13,163 $11,645
======= ======= =======
Earnings per share
attributable to common
shareholders
Basic $0.30 $0.31 $0.27
===== ===== =====
Diluted $0.29 $0.30 $0.27
===== ===== =====
Weighted average shares
outstanding
Basic 42,770 42,756 42,400
====== ====== ======
Diluted 43,608 43,217 42,737
====== ====== ======
% Change From
-------------
September December
30, 2010 31, 2009
--------- --------
Revenue
Investment advisory and administration fees
Distribution and service fees
Portfolio consulting and other
Total revenue 11.7% 29.9%
Expenses
Employee compensation and benefits
Distribution and service fees
General and administrative
Depreciation and amortization
Amortization, deferred commissions
Total expenses 19.6% 35.1%
Operating income (6.6%) 16.7%
Non-operating income
Interest and dividend income - net
Gain from trading securities - net
Gain from available-for-sale securities -
net
Equity in earnings of affiliates
Other
Total non-operating income 14.4% 25.8%
Income before provision for income taxes (1.5%) 19.1%
Provision for income taxes
Net income (3.1%) 6.2%
Less: Net income attributable to redeemable
noncontrolling interest
Net income attributable to common
shareholders (3.1%) 9.5%
Earnings per share attributable to common
shareholders
Basic (3.2%) 8.6%
Diluted (4.0%) 7.3%
Weighted average shares outstanding
Basic
Diluted
Cohen & Steers, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
For the Periods Ended
(in thousands, except per share data)
Year Ended
----------
December December
31, 2010 31, 2009 % Change
-------- -------- --------
Revenue
Investment advisory and
administration fees $169,844 $112,566
Distribution and service fees 9,078 7,545
Portfolio consulting and other 4,816 3,442
Total revenue 183,738 123,553 48.7%
------- -------
Expenses
Employee compensation and benefits 71,658 57,962
Distribution and service fees 22,631 14,668
General and administrative 31,173 28,350
Depreciation and amortization 4,531 4,221
Amortization, deferred commissions 959 789
Total expenses 130,952 105,990 23.6%
------- -------
Operating income 52,786 17,563 200.6%
------ ------
Non-operating income
Interest and dividend income -net 1,453 1,870
(Loss) gain from trading securities
-net (182) 14,055
Gain (loss) from available-for-
sale securities - net 7,564 (30,245)
Equity in earnings of affiliates 3,010 340
Other 863 571
Total non-operating income (loss) 12,708 (13,409) *
------ -------
Income before provision for income
taxes 65,494 4,154 *
Provision for income taxes 19,089 4,490
Net income (loss) 46,405 (336) *
Less: Net income attributable to
redeemable noncontrolling interest (8) (1,374)
Net income (loss) attributable to
common shareholders $46,397 $(1,710) *
======= =======
Earnings (loss) per share
attributable to common shareholders
Basic $1.09 $(0.04) *
===== ======
Diluted $1.07 $(0.04) *
===== ======
Weighted average shares outstanding
Basic 42,715 42,339
====== ======
Diluted 43,227 42,339
====== ======
* Not meaningful
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management by Investment Vehicle (Unaudited)
For the Periods Ended
(in millions)
Three Months Ended
------------------
December 31, September 30, December 31,
2010 2010 2009
------------ ------------- ------------
Open-End Mutual Funds
---------------------
Assets under
management, beginning
of period $7,638 $6,595 $5,903
------ ------ ------
Inflows 880 641 610
Outflows (547) (608) (564)
---- ---- ----
Net inflows 333 33 46
Market appreciation 513 1,010 336
--- ----- ---
Total increase 846 1,043 382
--- ----- ---
Assets under
management, end of
period $8,484 $7,638 $6,285
====== ====== ======
Average assets under
management for period $7,994 $7,039 $5,827
====== ====== ======
Closed-End Mutual
Funds
-----------------
Assets under
management, beginning
of period $5,903 $5,315 $5,192
------ ------ ------
Inflows 299 41 -
Outflows (60) (12) -
--- --- ---
Net inflows 239 29 -
Market appreciation 211 559 354
--- --- ---
Total increase 450 588 354
--- --- ---
Assets under
management, end of
period $6,353 $5,903 $5,546
====== ====== ======
Average assets under
management for period $6,144 $5,703 $5,364
====== ====== ======
Institutional Separate
Accounts
----------------------
Assets under
management, beginning
of period $17,698 $14,332 $11,398
------- ------- -------
Inflows 1,411 1,840 1,406
Outflows (592) (798) (558)
---- ---- ----
Net inflows 819 1,042 848
Market appreciation 1,108 2,324 708
----- ----- ---
Total increase 1,927 3,366 1,556
----- ----- -----
Assets under
management, end of
period (1) $19,625 $17,698 $12,954
======= ======= =======
Average assets under
management for period $18,671 $16,219 $11,805
======= ======= =======
Total
-----
Assets under
management, beginning
of period $31,239 $26,242 $22,493
------- ------- -------
Inflows 2,590 2,522 2,016
Outflows (1,199) (1,418) (1,122)
------ ------ ------
Net inflows 1,391 1,104 894
Market appreciation 1,832 - 3,893 - 1,398
----- ----- -----
Total increase 3,223 4,997 2,292
----- ----- -----
Assets under
management, end of
period $34,462 $31,239 $24,785
======= ======= =======
Average assets under
management for period $32,809 $28,961 $22,996
======= ======= =======
% Change From
-------------
September December
30, 2010 31, 2009
--------- --------
Open-End Mutual Funds
---------------------
Assets under management, beginning of
period
Inflows
Outflows
Net inflows
Market appreciation
Total increase
Assets under management, end of period 11.1% 35.0%
Average assets under management for
period 13.6% 37.2%
Closed-End Mutual Funds
-----------------------
Assets under management, beginning of
period
Inflows
Outflows
Net inflows
Market appreciation
Total increase
Assets under management, end of period 7.6% 14.6%
Average assets under management for
period 7.7% 14.5%
Institutional Separate Accounts
-------------------------------
Assets under management, beginning of
period
Inflows
Outflows
Net inflows
Market appreciation
Total increase
Assets under management, end of period
(1) 10.9% 51.5%
Average assets under management for
period 15.1% 58.2%
Total
-----
Assets under management, beginning of
period
Inflows
Outflows
Net inflows
Market appreciation
Total increase
Assets under management, end of period 10.3% 39.0%
Average assets under management for
period 13.3% 42.7%
1 As of December 31, 2010, September 30, 2010 and December 31, 2009,
assets under management from institutional separate accounts
included $152 million, $217 million and $36 million, respectively,
of assets invested in the company's alternative strategy.
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management by Investment Vehicle (Unaudited)
For the Periods Ended
(in millions)
Year Ended
----------
December 31, December 31, %
2010 2009 Change
------------ ------------ -------
Open-End Mutual Funds
---------------------
Assets under management,
beginning of period $6,285 $4,280
------ ------
Inflows 2,915 2,112
Outflows (2,117) (1,595)
------ ------
Net inflows 798 517
Market appreciation 1,401 1,488
----- -----
Total increase 2,199 2,005
----- -----
Assets under management, end of
period $8,484 $6,285 35.0%
====== ======
Average assets under management
for period $6,984 $4,527 54.3%
====== ======
Closed-End Mutual Funds
-----------------------
Assets under management,
beginning of period $5,546 $4,278
------ ------
Inflows 340 628
Outflows (79) (395)
--- ----
Net inflows 261 233
Market appreciation 546 1,035
--- -----
Total increase 807 1,268
--- -----
Assets under management, end of
period $6,353 $5,546 14.6%
====== ======
Average assets under management
for period $5,754 $4,425 30.0%
====== ======
Institutional Separate Accounts
-------------------------------
Assets under management,
beginning of period $12,954 $6,544
------- ------
Inflows 6,116 4,516
Outflows (2,327) (1,306)
------ ------
Net inflows 3,789 3,210
Market appreciation 2,882 3,200
----- -----
Total increase 6,671 6,410
----- -----
Assets under management, end of
period (1) $19,625 $12,954 51.5%
======= =======
Average assets under management
for period $15,690 $8,491 84.8%
======= ======
Total
-----
Assets under management,
beginning of period $24,785 $15,102
------- -------
Inflows 9,371 7,256
Outflows (4,523) (3,296)
------ ------
Net inflows 4,848 3,960
Market appreciation 4,829 - 5,723
----- -----
Total increase 9,677 9,683
----- -----
Assets under management, end of
period $34,462 $24,785 39.0%
======= =======
Average assets under management
for period $28,428 $17,443 63.0%
======= =======
1 As of December 31, 2010 and December 31, 2009, assets under
management from institutional separate accounts included $152
million and $36 million, respectively, of assets invested in the
company's alternative strategy.
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management by Investment Category (Unaudited)
(in millions)
As of As of
December September As of December
31, 2010 30, 2010 31, 2009
-------- --------- --------------
Open-End Mutual
Funds
---------------
U.S. Real Estate $5,430 $4,824 $3,750
International Real
Estate 2,320 2,184 2,046
Large Cap Value 231 193 197
Preferreds 171 35 13
Listed
Infrastructure
and Utilities 118 106 100
Other 214 296 179
Assets under
management, end
of period $8,484 $7,638 $6,285
====== ====== ======
Closed-End Mutual
Funds
-----------------
U.S. Real Estate $1,815 $1,735 $1,818
International Real
Estate 238 195 175
Large Cap Value 213 203 264
Preferreds 1,768 1,481 1,186
Listed
Infrastructure
and Utilities 2,056 2,025 1,396
Other 263 264 707
Assets under
management, end
of period $6,353 $5,903 $5,546
====== ====== ======
Institutional
Separate Accounts
------------------
U.S. Real Estate $7,855 $6,906 $5,016
International Real
Estate 6,750 6,134 4,822
Large Cap Value 3,053 2,834 1,929
Preferreds 1,054 1,068 846
Listed
Infrastructure
and Utilities 350 162 119
Other 563 594 222
Assets under
management, end
of period (1) $19,625 $17,698 $12,954
======= ======= =======
Total
-----
U.S. Real Estate $15,100 $13,465 $10,584
International Real
Estate 9,308 8,513 7,043
Large Cap Value 3,497 3,230 2,390
Preferreds 2,993 2,584 2,045
Listed
Infrastructure
and Utilities 2,524 2,293 1,615
Other 1,040 1,154 1,108
Assets under
management, end
of period $34,462 $31,239 $24,785
======= ======= =======
1 As of December 31, 2010, September 30, 2010 and December 31, 2009,
assets under management from institutional separate accounts
included $152 million, $217 million and $36 million, respectively,
of assets invested in the company's alternative strategy.
Cohen & Steers, Inc. and Subsidiaries
Other Fee Earning Assets (Unaudited)
(in millions)
As of December As of September As of December
31, 2010 30, 2010 31, 2009
-------------- --------------- --------------
Unified Managed
Accounts, end of
period $555 $536 $447
==== ==== ====
Exchange Traded
Funds, end of period $2,284 $2,332 $1,886
====== ====== ======
Unit Investment
Trusts, end of
period $1,428 $1,389 $1,309
====== ====== ======
Total, end of period $4,267 $4,257 $3,642
====== ====== ======
Note: Other fee earning assets are defined as assets for which the
company provides investment advice but for which the company has no
discretion to execute trades, and therefore are not included in the
company's reported assets under management.
SOURCE Cohen & Steers, Inc.
