EX-99.1 2 dex991.htm PRESS RELEASE DATED APRIL 22, 2009 Press release dated April 22, 2009
Cohen & Steers, Inc.    LOGO

280 Park Avenue

   

New York, NY 10017-1216

   

Tel (212) 832-3232

   
Contact:   

Matthew S. Stadler

   

Executive Vice President

   

Chief Financial Officer

   

Cohen & Steers, Inc.

   

Tel (212) 446-9168

   

COHEN & STEERS REPORTS FIRST QUARTER

2009 RESULTS

NEW YORK, NY, April 22, 2009—Cohen & Steers, Inc. (NYSE: CNS) reported a loss from continuing operations attributable to common shareholders of $14.5 million, or $0.34 per share (diluted and basic), for the quarter ended March 31, 2009, compared with income from continuing operations attributable to common shareholders of $13.9 million, or $0.33 per share (diluted and basic), for the quarter ended March 31, 2008. Total revenue for the first quarter of 2009 was $23.5 million, a decrease of 56.1% from $53.6 million for the first quarter of 2008.

The first quarter 2009 results from continuing operations attributable to common shareholders include an after-tax expense of approximately $0.39 per share due to the previously disclosed other-than-temporary impairment charges recorded on available-for-sale securities, primarily from investments in preferred securities. After adjusting for this item, earnings per share would have been $0.05 for the quarter ended March 31, 2009.

Assets Under Management

Assets under management were $11.6 billion as of March 31, 2009, a decrease of 23.2% from $15.1 billion at December 31, 2008 and a decrease of 59.4% from $28.6 billion at March 31, 2008. The decrease from December 31, 2008 was due to market depreciation of $3.4 billion and net outflows of $76 million. The decrease from March 31, 2008 was due to market depreciation of $14.1 billion and net outflows of $2.9 billion. Average assets under management were $12.7 billion for the quarter ended March 31, 2009, a decrease of 19.4% from $15.7 billion for the quarter ended December 31, 2008 and a decrease of 55.5% from $28.5 billion for the quarter ended March 31, 2008.

The company recorded net outflows of $395 million from closed-end mutual funds during the quarter ended March 31, 2009, which resulted primarily from the redemption of auction market preferred securities. Average assets under management for closed-end mutual funds were $3.7 billion for the quarter ended March 31, 2009, a decrease of 25.6% from $5.0 billion for the quarter ended December 31, 2008 and a decrease of 62.2% from $9.8 billion for the quarter ended March 31, 2008.

The company recorded net outflows of $76 million from open-end mutual funds during the quarter ended March 31, 2009. Average assets under management for open-end mutual funds were $3.4 billion for the quarter ended March 31, 2009, a decrease of 24.6% from $4.5 billion for the quarter ended December 31, 2008 and a decrease of 58.9% from $8.2 billion for the quarter ended March 31, 2008.

Institutional separate accounts had net inflows of $395 million during the quarter ended March 31, 2009. Average assets under management for institutional separate accounts were $5.6 billion for the quarter ended March 31, 2009, a decrease of 10.7% from $6.3 billion for the quarter ended December 31, 2008 and a decrease of 46.6% from $10.5 billion for the quarter ended March 31, 2008.

“Despite the continued challenges presented by the global market environment and economy, we continue to be encouraged by the results from our asset gathering efforts,” said Martin Cohen, co-chairman and co-chief executive officer of Cohen & Steers. “We experienced our second consecutive quarter of net inflows into our institutional separate accounts and have a very promising pipeline. And net outflows from our retail channels continue to decrease.”

Results From Continuing Operations

Total revenue was $23.5 million for the three months ended March 31, 2009, a decrease of 56.1% from $53.6 million for the three months ended March 31, 2008. Operating expenses were $23.4 million for the three months ended March 31, 2009, a decrease of 30.2% from $33.5 million for the three months ended March 31, 2008. Operating income was $137,000 for the three months ended March 31, 2009, compared with $20.1 million for the three months ended March 31, 2008. Non-operating loss was $16.3 million for the three months ended March 31, 2009, compared with non-operating income of $2.0 million for the three months ended March 31, 2008. Excluding the other-than-temporary impairment charge of $18.2 million, non-operating income would have been $1.9 million for the three months ended March 31, 2009. Pretax loss was $16.2 million for the three months ended March 31, 2009, compared with pretax income of $22.1 million for March 31, 2008. Excluding the aforementioned other-than-temporary impairment charge, pretax income would have been $2.0 million for the three months ended March 31, 2009.

 

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Balance Sheet Information

As of March 31, 2009, cash, cash equivalents, investments, available-for-sale and seed capital investments (excluding cash and marketable securities attributable to the consolidation of the company’s long-short global real estate fund) were $144 million. As of March 31, 2009, stockholders’ equity was $231 million and the company had no long-term or short-term debt.

Conference Call Information

Cohen & Steers will hold a conference call tomorrow, April 23, 2009 at 11:00 a.m. (ET) to discuss the company’s first quarter results. Investors and analysts can access the live conference call by dialing (866) 672-2663 (domestic) or (973) 582-2772 (international); passcode: 95364270. 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 2:00 p.m. (ET) on April 23, 2009 and can be accessed at (800) 642-1687 (domestic) or (706) 645-9291 (international); passcode: 95364270. Internet access to the Web cast, which includes audio (listen-only), will be available on the company’s Web site at cohenandsteers.com under “Corporate Info.” The Web cast will be archived on the Web site for two weeks.

About Cohen & Steers, Inc.

Cohen & Steers is a manager of income-oriented equity portfolios specializing in U.S. and international real estate securities, large cap value stocks, utilities and listed infrastructure, and preferred securities. The company also offers alternative investment strategies such as hedged real estate securities portfolios and private real estate multimanager strategies. 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.

 

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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, 2008, which is accessible on the Securities and Exchange Commission’s Web site at 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.

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Cohen & Steers, Inc. and Subsidiaries

Condensed Consolidated Statements of Income (Unaudited)

For the Periods Ended

(in thousands, except per share data)

 

     Three Months Ended     % Change From  
     March 31,
2009		     December 31,
2008		     March 31,
2008		     December 31,
2008		     March 31,
2008		  

Revenue

           

Investment advisory and administration fees

    $ 21,073     $ 25,768     $ 46,643      

Distribution and service fees

      1,607       2,278       5,374      

Portfolio consulting and other

      820       850       1,570      
                            

Total revenue

      23,500       28,896       53,587     (18.7 )%   (56.1 )%
                            

Expenses

           

Employee compensation and benefits

      12,175       12,150       16,103      

Restructuring and impairment

      —         5,586       —        

Distribution and service fees

      3,070       3,736       6,622      

General and administrative

      6,832       7,971       7,776      

Depreciation and amortization

      1,020       1,074       953      

Amortization, deferred commissions

      266       519       1,996      
                            

Total expenses

      23,363       31,036       33,450     (24.7 )%   (30.2 )%
                            

Operating income (loss)

      137       (2,140 )     20,137     *     (99.3 )%
                            

Non-operating income

           

Interest and dividend income

      666       1,094       1,598      

(Loss) gain from marketable securities - net

      (16,751 )     (2,112 )     56      

Foreign currency gain (loss) - net

      (243 )     235       355      
                            

Total non-operating (loss) income

      (16,328 )     (783 )     2,009     *     *  
                            

(Loss) income from continuing operations before provision for income taxes

      (16,191 )     (2,923 )     22,146     *     *  

(Benefit) provision for income taxes

      (1,802 )     (844 )     8,290      
                            

(Loss) income from continuing operations

      (14,389 )     (2,079 )     13,856     *     *  

Loss from discontinued operations, net of tax

      (5 )     (4,880 )     (856 )   (99.9 )%   (99.4 )%
                            

Net (loss) income

      (14,394 )     (6,959 )     13,000     *     *  

Less: Net income attributable to redeemable noncontrolling interest

      (85 )     —         —        
                            

Net (loss) income attributable to common shareholders

    $ (14,479 )   $ (6,959 )   $ 13,000      
                            

Earnings per share - Basic:

           

(Loss) income from continuing operations attributable to common shareholders

    $ (0.34 )   $ (0.05 )   $ 0.33     *     *  
                            

(Loss) income from discontinued operations, net of tax, attributable to common shareholders

    $ (0.00 )   $ (0.12 )   $ (0.02 )   (99.9 )%   (99.4 )%
                            

Net (loss) income attributable to common shareholders

    $ (0.34 )   $ (0.17 )   $ 0.31     *     *  
                            

Earnings per share - Diluted:

           

(Loss) income from continuing operations attributable to common shareholders

    $ (0.34 )   $ (0.05 )   $ 0.33     *     *  
                            

(Loss) income from discontinued operations, net of tax, attributable to common shareholders

    $ (0.00 )   $ (0.12 )   $ (0.02 )   (99.9 )%   (99.4 )%
                            

Net (loss) income attributable to common shareholders

    $ (0.34 )   $ (0.17 )   $ 0.31     *     *  
                            

Weighted average shares outstanding

           

Basic

      42,198       41,813       41,903      
                            

Diluted

      42,198       41,813       42,134      
                            

 

* Not meaningful

 

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Cohen & Steers, Inc. and Subsidiaries

Assets Under Management (Unaudited)

For the Periods Ended

(in millions)

 

     Three Months Ended     % Change From  
     March 31,
2009		     December 31,
2008		     March 31,
2008		     December 31,
2008		     March 31,
2008		  

Closed-End Mutual Funds

           

Assets under management, beginning of period

    $ 4,278     $ 8,570     $ 10,274      
                            

Net outflows

      (395 )     (2,098 )     —        

Market depreciation

      (854 )     (2,194 )     (550 )    
                            

Total decrease

      (1,249 )     (4,292 )     (550 )    
                            

Assets under management, end of period

    $ 3,029     $ 4,278     $ 9,724     (29.2 )%   (68.9 )%
                            

Average daily net assets for period

    $ 3,723     $ 5,006     $ 9,839     (25.6 )%   (62.2 )%
                            

Open-End Mutual Funds

           

Assets under management, beginning of period

    $ 4,280     $ 6,949     $ 8,900      
                            

Inflows

      324       495       888      

Outflows

      (400 )     (968 )     (1,131 )    
                            

Net outflows

      (76 )     (473 )     (243 )    

Market depreciation

      (1,102 )     (2,196 )     (225 )    
                            

Total decrease

      (1,178 )     (2,669 )     (468 )    
                            

Assets under management, end of period

    $ 3,102     $ 4,280     $ 8,432     (27.5 )%   (63.2 )%
                            

Average daily net assets for period

    $ 3,357     $ 4,455     $ 8,167     (24.6 )%   (58.9 )%
                            

Institutional Separate Accounts

           

Assets under management, beginning of period

    $ 6,544     $ 9,105     $ 10,612      
                            

Inflows

      522       609       317      

Outflows

      (127 )     (399 )     (600 )    
                            

Net inflows (outflows)

      395       210       (283 )    

Market (depreciation) appreciation

      (1,470 )     (2,771 )     85      
                            

Total decrease

      (1,075 )     (2,561 )     (198 )    
                            

Assets under management, end of period

    $ 5,469     $ 6,544     $ 10,414     (16.4 )%   (47.5 )%
                            

Average daily net assets for period

    $ 5,605     $ 6,280     $ 10,500     (10.7 )%   (46.6 )%
                            

Total

           

Assets under management, beginning of period

    $ 15,102     $ 24,624     $ 29,786      
                            

Inflows

      846       1,104       1,205      

Outflows

      (922 )     (3,465 )     (1,731 )    
                            

Net outflows

      (76 )     (2,361 )     (526 )    

Market depreciation

      (3,426 )     (7,161 )     (690 )    
                            

Total decrease

      (3,502 )     (9,522 )     (1,216 )    
                            

Assets under management, end of period

    $ 11,600     $ 15,102     $ 28,570     (23.2 )%   (59.4 )%
                            

Average daily net assets for period

    $ 12,685     $ 15,741     $ 28,506     (19.4 )%   (55.5 )%
                            

 

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Cohen & Steers, Inc. and Subsidiaries

Assets Under Management (Unaudited)

By Investment Category

(in millions)

 

     As of March 31,
2009		    As of December 31,
2008		    As of March 31,
2008

Closed-End Mutual Funds

         

U.S. Real Estate

    $ 774    $ 1,377    $ 3,753

International Real Estate

      46      72      419

Preferreds

      774      1,056      2,102

Large Cap Value

      178      190      320

Utilities and Infrastructure

      827      999      2,199

Other

      430      584      931
                    

Assets under management, end of period

    $ 3,029    $ 4,278    $ 9,724
                    

Open-End Mutual Funds

         

U.S. Real Estate

    $ 1,671    $ 2,415    $ 4,126

International Real Estate

      1,099      1,487      3,814

Preferreds

      8      11      10

Large Cap Value

      128      146      125

Utilities and Infrastructure

      48      68      97

Other

      148      153      260
                    

Assets under management, end of period

    $ 3,102    $ 4,280    $ 8,432
                    

Institutional Separate Accounts

         

U.S. Real Estate

    $ 2,051    $ 3,046    $ 5,179

International Real Estate

      1,947      2,160      3,845

Preferreds

      421      508      686

Large Cap Value

      713      595      419

Utilities and Infrastructure

      10      11      19

Other

      327      224      266
                    

Assets under management, end of period

    $ 5,469    $ 6,544    $ 10,414
                    

Total

         

U.S. Real Estate

    $ 4,496    $ 6,838    $ 13,058

International Real Estate

      3,092      3,719      8,078

Preferreds

      1,203      1,575      2,798

Large Cap Value

      1,019      931      864

Utilities and Infrastructure

      885      1,078      2,315

Other

      905      961      1,457
                    

Assets under management, end of period

    $ 11,600    $ 15,102    $ 28,570
                    

 

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Cohen & Steers, Inc. and Subsidiaries

Other Fee Earning Assets (Unaudited)

(in millions)

 

     As of March 31,
2009		    As of December 31,
2008		    As of March 31,
2008

Unified Managed Accounts

         
                    

Other fee earning assets, end of period

    $ 178    $ 179    $ 188
                    

Exchange Traded Funds

         
                    

Other fee earning assets, end of period

    $ 828    $ 1,511    $ 2,129
                    

Unit Investment Trusts

         
                    

Other fee earning assets, end of period

    $ 904    $ 1,005    $ 1,605
                    

Total

         
                    

Other fee earning assets, end of period

    $ 1,910    $ 2,695    $ 3,922
                    

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 our reported assets under management.

 

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