Cohen & Steers Reports First Quarter 2012 Results

Assets Under Management Reach Record $44.9 billion

News provided by

Cohen & Steers, Inc.

Apr 18, 2012, 04:30 ET

NEW YORK, April 18, 2012 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported income attributable to common shareholders of $18.1 million, or $0.41 per share (diluted and basic), for the quarter ended March 31, 2012, compared with income attributable to common shareholders of $13.0 million, or $0.30 per share (diluted and basic), for the quarter ended March 31, 2011. Total revenue for the first quarter of 2012 was $63.7 million, an increase of 16.4% from $54.8 million for the first quarter of 2011.

Assets Under Management

Assets under management were $44.9 billion as of March 31, 2012, an increase of 8.7% from $41.3 billion at December 31, 2011 and an increase of 18.0% from $38.0 billion at March 31, 2011. The increase from December 31, 2011 was due to market appreciation of $4.0 billion, partially offset by net outflows of $425 million. The increase from March 31, 2011 was due to net inflows of $5.2 billion, primarily into U.S. real estate strategies, and market appreciation of $1.7 billion. Average assets under management were $43.0 billion for the quarter ended March 31, 2012, an increase of 6.8% from $40.3 billion for the quarter ended December 31, 2011 and an increase of 19.2% from $36.1 billion for the quarter ended March 31, 2011.

Assets under management for institutional accounts were $26.6 billion as of March 31, 2012, an increase of 4.8% from $25.4 billion at December 31, 2011 and an increase of 21.3% from $21.9 billion at March 31, 2011. The increase from December 31, 2011 was due to market appreciation of $2.6 billion, partially offset by net outflows of $1.4 billion, primarily from global/international real estate strategies associated with subadvisory relationships. The increase from March 31, 2011 was due to net inflows of $3.5 billion, primarily into subadvisory relationships, and market appreciation of $1.2 billion. Average assets under management for institutional accounts were $25.9 billion for the quarter ended March 31, 2012, an increase of 3.8% from $24.9 billion for the quarter ended December 31, 2011 and an increase of 25.2% from $20.7 billion for the quarter ended March 31, 2011.

Assets under management for open-end mutual funds were $11.6 billion as of March 31, 2012, an increase of 20.5% from $9.6 billion at December 31, 2011 and an increase of 23.4% from $9.4 billion at March 31, 2011. The increase from December 31, 2011 was due to market appreciation of $1.0 billion and net inflows of $938 million. The increase from March 31, 2011 was due to net inflows of $1.7 billion and market appreciation of $480 million. Average assets under management for open-end mutual funds were $10.6 billion for the quarter ended March 31, 2012, an increase of 15.2% from $9.2 billion for the quarter ended December 31, 2011 and an increase of 20.0% from $8.8 billion for the quarter ended March 31, 2011.

Assets under management for closed-end mutual funds were $6.7 billion as of March 31, 2012, an increase of 6.5% from $6.3 billion at December 31, 2011 and a decrease of 0.2% from $6.7 billion at March 31, 2011. The increase from December 31, 2011 was due to market appreciation of $409 million. Average assets under management for closed-end mutual funds were $6.6 billion for the quarter ended March 31, 2012, an increase of 6.0% from $6.2 billion for the quarter ended December 31, 2011 and a decrease of 0.8% from $6.6 billion for the quarter ended March 31, 2011.

Financial Highlights (Unaudited)

Three Months Ended

(in thousands, except per share data or as noted)

March 31,

 2012

December 31,

 2011

March 31,

 2011

Revenue

$

63,730

$

59,416

$

54,755

Expenses

$

38,334

$

36,617

$

35,842

Operating income

$

25,396

$

22,799

$

18,913

Operating margin

39.8

%

38.4

%

34.5

%

Total non-operating income

$

3,017

$

2,409

$

975

Net income attributable to common shareholders

$

18,054

$

16,047

$

12,975

Diluted earnings per share attributable to common shareholders

$

0.41

$

0.36

$

0.30

Assets under management, end of period (in millions)

$

44,890

$

41,284

$

38,030

Average assets under management for period (in millions)

$

43,008

$

40,286

$

36,087

Total revenue for the first quarter of 2012 was $63.7 million, an increase of 7.3% from $59.4 million for the fourth quarter of 2011, primarily due to higher average assets under management. Operating expenses for the first quarter of 2012 were $38.3 million, an increase of 4.7% from $36.6 million for the fourth quarter of 2011, primarily due to increases in employee compensation and benefits, distribution and service fees and general and administrative expenses. Operating income was $25.4 million for the three months ended March 31, 2012, compared with operating income of $22.8 million for the three months ended December 31, 2011. The company's operating margin increased to 39.8% for the first quarter of 2012 compared with 38.4% for the three months ended December 31, 2011 due to decreases in the compensation to revenue and G&A to revenue ratios. Non-operating income was $3.0 million for the three months ended March 31, 2012, compared with non-operating income of $2.4 million for the three months ended December 31, 2011, primarily due to increased gains from the company's seed investments.

Balance Sheet Information

As of March 31, 2012, cash, cash equivalents and investments were $174 million. As of March 31, 2012, stockholders' equity was $243 million and the company had no long-term or short-term debt.

Conference Call Information

Cohen & Steers will host a conference call tomorrow, April 19, 2012 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 (800) 769-9015 (U.S.) or (212) 231-2912 (international); passcode: 21588381. 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 April 19, 2012 and can be accessed at (800) 633-8284 (U.S.) or (402) 977-9140 (international); passcode: 21588381. Internet access to the webcast, which includes audio (listen-only), will be available on the company's website at www.cohenandsteers.com under "Corporate Info."  The webcast will be archived on the website for two weeks.

About Cohen & Steers

Founded in 1986, Cohen & Steers is a leading global investment management firm focused on global real estate securities, global listed infrastructure, real assets, large cap value stocks, 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, Tokyo and Seattle, Cohen & Steers serves institutional and individual 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, 2011, which is accessible on the Securities and Exchange Commission's website at www.sec.gov and on the company's website at www.cohenandsteers.com. These factors 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

% Change From

March 31,

 2012

December 31, 2011

March 31,

2011

December 31, 2011

March 31, 2011

Revenue








Investment advisory and administration fees

$

58,155

$

55,310

$

51,052




Distribution and service fees

2,501

2,260

2,415




Portfolio consulting and other

3,074

1,846

1,288




Total revenue

63,730

59,416

54,755

7.3

%

16.4

%

Expenses








Employee compensation and benefits

21,668

20,694

19,986




Distribution and service fees

6,237

5,758

5,754




General and administrative

8,537

8,380

8,573




Depreciation and amortization

1,396

1,296

1,186




Amortization, deferred commissions

496

489

343




Total expenses

38,334

36,617

35,842

4.7

%

7.0

%

Operating income

25,396

22,799

18,913

11.4

%

34.3

%

Non-operating income








Interest and dividend income - net

621

269

184




Gain (loss) from trading securities - net

1,721

495

(378)




Gain from available-for-sale securities - net

687

154

358




Equity in earnings (losses) of affiliates

772

1,614

(14)




Other

(784)

(123)

825




Total non-operating income

3,017

2,409

975

25.2

%

209.4

%

Income before provision for income taxes

28,413

25,208

19,888

12.7

%

42.9

%

Provision for income taxes

10,155

9,134

6,986




Net income

18,258

16,074

12,902

13.6

%

41.5

%

Less: Net (income) loss attributable to

redeemable noncontrolling interest

(204)

(27)

73




Net income attributable to common shareholders

$

18,054

$

16,047

$

12,975

12.5

%

39.1

%










Earnings per share attributable to common

shareholders








Basic

$

0.41

$

0.37

$

0.30

11.6

%

37.4

%

Diluted

$

0.41

$

0.36

$

0.30

11.9

%

37.2

%

Weighted average shares outstanding








Basic

43,601

43,249

43,051




Diluted

44,386

44,141

43,781




 

 

Cohen & Steers, Inc. and Subsidiaries







Assets Under Management (Unaudited)







By Investment Vehicle








For the Periods Ended








(in millions)









Three Months Ended

% Change From

March 31,

2012

December 31,

2011

March 31,

2011

December 31, 2011

March 31, 2011

Institutional Accounts








Assets under management, beginning of period

$

25,380

$

24,026

$

19,625




   Inflows

1,070

498

1,529




   Outflows

(2,433)

(1,598)

(321)




   Net (outflows) inflows

(1,363)

(1,100)

1,208




   Market appreciation

2,591

2,454

1,098




   Total increase

1,228

1,354

2,306




Assets under management, end of period

$

26,608

$

25,380

$

21,931

4.8

%

21.3

%

Average assets under management for period

$

25,884

$

24,932

$

20,671

3.8

%

25.2

%










Open-End Mutual Funds








Assets under management, beginning of period

$

9,619

$

8,612

$

8,484




   Inflows

1,682

908

1,147




   Outflows

(744)

(817)

(640)




   Net inflows

938

91

507




   Market appreciation

1,031

916

399




   Total increase

1,969

1,007

906




Assets under management, end of period

$

11,588

$

9,619

$

9,390

20.5

%

23.4

%

Average assets under management for period

$

10,567

$

9,170

$

8,803

15.2

%

20.0

%










Closed-End Mutual Funds








Assets under management, beginning of period

$

6,285

$

5,979

$

6,353




   Inflows

—

—

129




   Outflows

—

(59)

—




   Net (outflows) inflows

—

(59)

129




   Market appreciation

409

365

227




   Total increase

409

306

356




Assets under management, end of period

$

6,694

$

6,285

$

6,709

6.5

%

(0.2)

%

Average assets under management for period

$

6,557

$

6,184

$

6,613

6.0

%

(0.8)

%










Total








Assets under management, beginning of period

$

41,284

$

38,617

$

34,462




   Inflows

2,752

1,406

2,805




   Outflows

(3,177)

(2,474)

(961)




   Net (outflows) inflows

(425)

(1,068)

1,844




   Market appreciation

4,031

3,735

1,724




   Total increase

3,606

2,667

3,568




Assets under management, end of period

$

44,890

$

41,284

$

38,030

8.7

%

18.0

%

Average assets under management for period

$

43,008

$

40,286

$

36,087

6.8

%

19.2

%

 

 

Cohen & Steers, Inc. and Subsidiaries







Assets Under Management - Institutional Accounts (Unaudited)





By Investment Relationship








For the Periods Ended








(in millions)









Three Months Ended

% Change From

March 31,

2012

December 31, 2011

March 31,

2011

December 31, 2011

March 31, 2011

Subadvisory








Assets under management, beginning of period

$

19,073

$

18,266

$

13,334




   Inflows

365

349

1,323




   Outflows

(1,735)

(1,429)

(206)




   Net (outflows) inflows

(1,370)

(1,080)

1,117




   Market appreciation

1,902

1,887

773




   Total increase

532

807

1,890




Assets under management, end of period

$

19,605

$

19,073

$

15,224

2.8

%

28.8

%

Average assets under management for period

$

19,476

$

18,795

$

14,128

3.6

%

37.9

%










Advisory








Assets under management, beginning of period

$

6,307

$

5,760

$

6,291




   Inflows

705

149

206




   Outflows

(698)

(169)

(115)




   Net inflows (outflows)

7

(20)

91




   Market appreciation

689

567

325




   Total increase

696

547

416




Assets under management, end of period

$

7,003

$

6,307

$

6,707

11.0

%

4.4

%

Average assets under management for period

$

6,408

$

6,137

$

6,543

4.4

%

(2.1)

%










Total Institutional Accounts








Assets under management, beginning of period

$

25,380

$

24,026

$

19,625




   Inflows

1,070

498

1,529




   Outflows

(2,433)

(1,598)

(321)




   Net (outflows) inflows

(1,363)

(1,100)

1,208




   Market appreciation

2,591

2,454

1,098




   Total increase

1,228

1,354

2,306




Assets under management, end of period

$

26,608

$

25,380

$

21,931

4.8

%

21.3

%

Average assets under management for period

$

25,884

$

24,932

$

20,671

3.8

%

25.2

%

 

 

 

Cohen & Steers, Inc. and Subsidiaries







Assets Under Management (Unaudited)







By Investment Strategy








For the Periods Ended








(in millions)









Three Months Ended

% Change From

March 31,

2012

December 31, 2011

March 31,

2011

December 31, 2011

March 31, 2011

U.S. Real Estate








Assets under management, beginning of period

$

18,505

$

16,099

$

10,506




   Inflows

1,690

749

1,352




   Outflows

(488)

(513)

(504)




   Net inflows

1,202

236

848




   Market appreciation

1,864

2,170

679




   Total increase

3,066

2,406

1,527




Assets under management, end of period

$

21,571

$

18,505

$

12,033

16.6

%

79.3

%

Average assets under management for period

$

19,853

$

17,339

$

11,240

14.5

%

76.6

%










Global/International Real Estate








Assets under management, beginning of period

$

13,409

$

13,734

$

15,438




   Inflows

701

343

1,072




   Outflows

(2,266)

(1,624)

(454)




   Net (outflows) inflows

(1,565)

(1,281)

618




   Market appreciation

1,395

956

676




   Total (decrease) increase

(170)

(325)

1,294




Assets under management, end of period

$

13,239

$

13,409

$

16,732

(1.3)

%

(20.9)

%

Average assets under management for period

$

13,367

$

13,822

$

15,900

(3.3)

%

(15.9)

%










Large Cap Value Stocks








Assets under management, beginning of period

$

3,876

$

3,470

$

3,673




   Inflows

10

145

113




   Outflows

(355)

(116)

(82)




   Net (outflows) inflows

(345)

29

31




   Market appreciation

452

377

194




   Total increase

107

406

225




Assets under management, end of period

$

3,983

$

3,876

$

3,898

2.8

%

2.2

%

Average assets under management for period

$

3,920

$

3,718

$

3,806

5.4

%

3.0

%










Global Infrastructure








Assets under management, beginning of period

$

3,010

$

2,919

$

2,870




   Inflows

22

17

174




   Outflows

(17)

(73)

(17)




   Net inflows (outflows)

5

(56)

157




   Market appreciation

145

147

98




   Total increase

150

91

255




Assets under management, end of period

$

3,160

$

3,010

$

3,125

5.0

%

1.1

%

Average assets under management for period

$

3,121

$

2,970

$

2,983

5.1

%

4.6

%


















Preferred Securities














Assets under management, beginning of period

$

1,964

$

1,803

$

1,292




   Inflows

293

152

216




   Outflows

(51)

(52)

(13)




   Net inflows

242

100

203




   Market appreciation

138

61

53




   Total increase

380

161

256




Assets under management, end of period

$

2,344

$

1,964

$

1,548

19.3

%

51.4

%

Average assets under management for period

$

2,174

$

1,894

$

1,463

14.8

%

48.6

%










Other








Assets under management, beginning of period

$

520

$

592

$

683




   Inflows

36

—

10




   Outflows

—

(96)

(23)




   Net inflows (outflows)

36

(96)

(13)




   Market appreciation

37

24

24




   Total increase (decrease)

73

(72)

11




Assets under management, end of period

$

593

$

520

$

694

14.0

%

(14.6)

%

Average assets under management for period

$

573

$

543

$

695

5.5

%

(17.6)

%










Total








Assets under management, beginning of period

$

41,284

$

38,617

$

34,462




   Inflows

2,752

1,406

2,937




   Outflows

(3,177)

(2,474)

(1,093)




   Net (outflows) inflows

(425)

(1,068)

1,844




   Market appreciation

4,031

3,735

1,724




   Total increase

3,606

2,667

3,568




Assets under management, end of period

$

44,890

$

41,284

$

38,030

8.7

%

18.0

%

Average assets under management for period

$

43,008

$

40,286

$

36,087

6.8

%

19.2

%

Cohen & Steers, Inc. and Subsidiaries




Assets Under Advisement (Unaudited)




(in millions)





As of

March 31,

2012

December 31,

2011

March 31,

2011






Model-Based Strategies

$

5,245

$

2,009

$

554






Exchange Traded Funds

$

2,835

$

2,380

$

2,558






Unit Investment Trusts

$

1,217

$

1,233

$

1,421






Total

$

9,297

$

5,622

$

4,533












Note: Assets under advisement are defined as assets for which the company does not provide active management.

SOURCE Cohen & Steers, Inc.