NEW YORK, April 22 /PRNewswire-FirstCall/ -- 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.
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. 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 http://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 Income
(Unaudited) For the Periods Ended (in thousands, except per share
data) Three Months Ended % Change From --------------------
--------------- March December March December March 31, 31, 31, 31,
31, 2009 2008 2008 2008 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 Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited) For the Periods Ended (in
millions) Three Months Ended % Change From ------------------
--------------- March December March December March 31, 31, 31, 31,
31, 2009 2008 2008 2008 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%)
======= ======= ======= Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited) By Investment Category (in
millions) As of As of As of March 31, December 31, March 31, 2009
2008 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 =======
======= ======= Cohen & Steers, Inc. and Subsidiaries Other Fee
Earning Assets (Unaudited) (in millions) As of As of As of March
31, December 31, March 31, 2009 2008 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. DATASOURCE: Cohen & Steers, Inc. CONTACT: Matthew
S. Stadler, Executive Vice President, Chief Financial Officer of
Cohen & Steers, Inc., +1-212-446-9168 Web Site:
http://www.cohenandsteers.com/
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