Delaware | 001-32236 | 14-1904657 |
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
280 Park Avenue, New York, New York | 10017 |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant's telephone number, including area code: (212) 832-3232 |
_________________________________________ (Former name or former address, if changed from last report) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Cohen & Steers, Inc. (Registrant) |
Date: April 16, 2014 | By: | /s/ Matthew S. Stadler |
Name: Matthew S. Stadler Title: Executive Vice President and Chief Financial Officer |
99.1 | Press release dated April 16, 2014 issued by the Company. |
(in thousands, except per share data) | Three Months Ended | |||||||||||||
March 31, 2014 | December 31, 2013 | $ Change | % Change | |||||||||||
Revenue | $ | 72,835 | $ | 73,432 | $ | (597 | ) | (0.8 | %) | |||||
Expenses | $ | 45,239 | $ | 44,076 | $ | 1,163 | 2.6 | % | ||||||
Operating income | $ | 27,596 | $ | 29,356 | $ | (1,760 | ) | (6.0 | %) | |||||
Operating margin | 37.9 | % | 40.0 | % | (209) bps | |||||||||
Total non-operating income | $ | 3,181 | $ | 1,971 | $ | 1,210 | 61.4 | % | ||||||
Net income attributable to common stockholders | $ | 19,445 | $ | 19,413 | $ | 32 | 0.2 | % | ||||||
Diluted earnings per share attributable to common stockholders | $ | 0.43 | $ | 0.43 | $ | 0.00 | (0.2 | %) |
• | Lower portfolio consulting and other revenue which decreased $416,000, primarily due to lower average assets under advisement from model-based strategies; and |
• | A decline in open-end mutual fund revenue of $201,000, as the increase in average assets under management was more than offset by two fewer days in the first quarter of 2014. |
• | An increase in employee compensation and benefits of $1.7 million, primarily due to higher incentive compensation and higher amortization of restricted stock units; and |
• | Lower general and administrative expenses which decreased $325,000, primarily due to lower marketing and IT related expenses. |
(in millions) | Assets Under Management | |||||||||||||
As of | ||||||||||||||
By Investment Vehicle | March 31, 2014 | December 31, 2013 | $ Change | % Change | ||||||||||
Institutional accounts | $ | 24,479 | $ | 22,926 | $ | 1,553 | 6.8 | % | ||||||
Open-end mutual funds | 15,148 | 14,016 | 1,132 | 8.1 | % | |||||||||
Closed-end mutual funds | 9,404 | 8,965 | 439 | 4.9 | % | |||||||||
Total | $ | 49,031 | $ | 45,907 | 3,124 | 6.8 | % | |||||||
By Investment Strategy | ||||||||||||||
U.S. real estate | $ | 25,251 | $ | 23,116 | $ | 2,135 | 9.2 | % | ||||||
Global/international real estate | 9,721 | 9,498 | 223 | 2.3 | % | |||||||||
Preferred securities | 5,126 | 4,722 | 404 | 8.6 | % | |||||||||
Global listed infrastructure | 5,072 | 4,714 | 358 | 7.6 | % | |||||||||
Large cap value | 2,857 | 2,907 | (50 | ) | (1.7 | %) | ||||||||
Other | 1,004 | 950 | 54 | 5.7 | % | |||||||||
Total | $ | 49,031 | $ | 45,907 | 3,124 | 6.8 | % |
• | Market appreciation of $1.8 billion, including $1.2 billion from U.S. real estate, $350 million from global/international real estate and $100 million from global listed infrastructure; |
• | Net outflows of $176 million from subadvisory relationships, including $164 million from global/international real estate and $23 million from large cap value, partially offset by net inflows of $21 million into commodities (which is included in "Other" above); and |
• | Net outflows of $44 million from advisory relationships, including net outflows of $117 million from large cap value, partially offset by net inflows of $84 million into global listed infrastructure. |
• | Market appreciation of $1.0 billion, including $847 million from U.S. real estate, $101 million from preferred securities and $56 million from global/international real estate; and |
• | Net inflows of $104 million, including net inflows of $179 million into preferred securities, partially offset by net outflows of $76 million from U.S. real estate. |
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, 2014 | December 31, 2013 | March 31, 2013 | December 31, 2013 | March 31, 2013 | |||||||||||||
Revenue | |||||||||||||||||
Investment advisory and administration fees | $ | 67,564 | $ | 67,658 | $ | 65,394 | |||||||||||
Distribution and service fees | 3,470 | 3,557 | 3,434 | ||||||||||||||
Portfolio consulting and other | 1,801 | 2,217 | 3,631 | ||||||||||||||
Total revenue | 72,835 | 73,432 | 72,459 | (0.8 | %) | 0.5 | % | ||||||||||
Expenses | |||||||||||||||||
Employee compensation and benefits | 24,035 | 22,377 | 23,377 | ||||||||||||||
Distribution and service fees | 8,304 | 8,127 | 15,081 | ||||||||||||||
General and administrative | 11,093 | 11,418 | 11,179 | ||||||||||||||
Depreciation and amortization | 1,262 | 1,496 | 1,347 | ||||||||||||||
Amortization, deferred commissions | 545 | 658 | 765 | ||||||||||||||
Total expenses | 45,239 | 44,076 | 51,749 | 2.6 | % | (12.6 | %) | ||||||||||
Operating income | 27,596 | 29,356 | 20,710 | (6.0 | %) | 33.2 | % | ||||||||||
Non-operating income | |||||||||||||||||
Interest and dividend income—net | 239 | 773 | 546 | ||||||||||||||
Gain from trading securities—net | 983 | 344 | 1,624 | ||||||||||||||
Gain from available-for-sale securities—net | 1,076 | 751 | 491 | ||||||||||||||
Equity in earnings of affiliates | 935 | 418 | 536 | ||||||||||||||
Other losses | (52 | ) | (315 | ) | (271 | ) | |||||||||||
Total non-operating income | 3,181 | 1,971 | 2,926 | 61.4 | % | 8.7 | % | ||||||||||
Income before provision for income taxes | 30,777 | 31,327 | 23,636 | (1.8 | %) | 30.2 | % | ||||||||||
Provision for income taxes | 11,177 | 11,899 | 8,135 | ||||||||||||||
Net income | 19,600 | 19,428 | 15,501 | 0.9 | % | 26.4 | % | ||||||||||
Less: Net income attributable to redeemable noncontrolling interest | (155 | ) | (15 | ) | (360 | ) | |||||||||||
Net income attributable to common stockholders | $ | 19,445 | $ | 19,413 | $ | 15,141 | 0.2 | % | 28.4 | % | |||||||
Earnings per share attributable to common stockholders | |||||||||||||||||
Basic | $ | 0.44 | $ | 0.44 | $ | 0.34 | (0.5 | %) | 27.0 | % | |||||||
Diluted | $ | 0.43 | $ | 0.43 | $ | 0.34 | (0.2 | %) | 26.7 | % | |||||||
Dividends declared per share | |||||||||||||||||
Quarterly | $ | 0.22 | $ | 0.20 | $ | 0.20 | 10.0 | % | 10.0 | % | |||||||
Special | $ | — | $ | 1.00 | $ | — | * | * | |||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 44,633 | 44,325 | 44,137 | ||||||||||||||
Diluted | 45,483 | 45,338 | 44,882 | ||||||||||||||
* Not meaningful |
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, 2014 | December 31, 2013 | March 31, 2013 | December 31, 2013 | March 31, 2013 | |||||||||||||
Institutional Accounts | |||||||||||||||||
Assets under management, beginning of period | $ | 22,926 | $ | 23,291 | $ | 24,850 | |||||||||||
Inflows | 432 | 549 | 246 | ||||||||||||||
Outflows | (652 | ) | (1,232 | ) | (590 | ) | |||||||||||
Net outflows | (220 | ) | (683 | ) | (344 | ) | |||||||||||
Market appreciation | 1,773 | 318 | 1,575 | ||||||||||||||
Total increase (decrease) | 1,553 | (365 | ) | 1,231 | |||||||||||||
Assets under management, end of period | $ | 24,479 | $ | 22,926 | $ | 26,081 | 6.8 | % | (6.1 | %) | |||||||
Percentage of total assets under management | 49.9 | % | 49.9 | % | 52.9 | % | |||||||||||
Average assets under management for period | $ | 23,858 | $ | 23,643 | $ | 25,372 | 0.9 | % | (6.0 | %) | |||||||
Open-End Mutual Funds | |||||||||||||||||
Assets under management, beginning of period | $ | 14,016 | $ | 14,262 | $ | 12,962 | |||||||||||
Inflows | 1,523 | 1,103 | 1,508 | ||||||||||||||
Outflows | (1,419 | ) | (1,373 | ) | (849 | ) | |||||||||||
Net inflows (outflows) | 104 | (270 | ) | 659 | |||||||||||||
Market appreciation | 1,028 | 24 | 826 | ||||||||||||||
Total increase (decrease) | 1,132 | (246 | ) | 1,485 | |||||||||||||
Assets under management, end of period | $ | 15,148 | $ | 14,016 | $ | 14,447 | 8.1 | % | 4.9 | % | |||||||
Percentage of total assets under management | 30.9 | % | 30.5 | % | 29.3 | % | |||||||||||
Average assets under management for period | $ | 14,607 | $ | 14,336 | $ | 13,788 | 1.9 | % | 5.9 | % | |||||||
Closed-End Mutual Funds | |||||||||||||||||
Assets under management, beginning of period | $ | 8,965 | $ | 8,783 | $ | 7,985 | |||||||||||
Inflows | — | 50 | 458 | ||||||||||||||
Outflows | — | (24 | ) | — | |||||||||||||
Net inflows | — | 26 | 458 | ||||||||||||||
Market appreciation | 439 | 156 | 350 | ||||||||||||||
Total increase | 439 | 182 | 808 | ||||||||||||||
Assets under management, end of period | $ | 9,404 | $ | 8,965 | $ | 8,793 | 4.9 | % | 6.9 | % | |||||||
Percentage of total assets under management | 19.2 | % | 19.5 | % | 17.8 | % | |||||||||||
Average assets under management for period | $ | 9,241 | $ | 8,991 | $ | 8,251 | 2.8 | % | 12.0 | % | |||||||
Total | |||||||||||||||||
Assets under management, beginning of period | $ | 45,907 | $ | 46,336 | $ | 45,797 | |||||||||||
Inflows | 1,955 | 1,702 | 2,212 | ||||||||||||||
Outflows | (2,071 | ) | (2,629 | ) | (1,439 | ) | |||||||||||
Net (outflows) inflows | (116 | ) | (927 | ) | 773 | ||||||||||||
Market appreciation | 3,240 | 498 | 2,751 | ||||||||||||||
Total increase (decrease) | 3,124 | (429 | ) | 3,524 | |||||||||||||
Assets under management, end of period | $ | 49,031 | $ | 45,907 | $ | 49,321 | 6.8 | % | (0.6 | %) | |||||||
Average assets under management for period | $ | 47,706 | $ | 46,970 | $ | 47,411 | 1.6 | % | 0.6 | % |
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, 2014 | December 31, 2013 | March 31, 2013 | December 31, 2013 | March 31, 2013 | |||||||||||||
Subadvisory | |||||||||||||||||
Assets under management, beginning of period | $ | 16,693 | $ | 16,833 | $ | 17,582 | |||||||||||
Inflows | 311 | 385 | 147 | ||||||||||||||
Outflows | (487 | ) | (745 | ) | (504 | ) | |||||||||||
Net outflows | (176 | ) | (360 | ) | (357 | ) | |||||||||||
Market appreciation | 1,407 | 220 | 1,096 | ||||||||||||||
Total increase (decrease) | 1,231 | (140 | ) | 739 | |||||||||||||
Assets under management, end of period | $ | 17,924 | $ | 16,693 | $ | 18,321 | 7.4 | % | (2.2 | %) | |||||||
Percentage of total assets under management | 73.2 | % | 72.8 | % | 70.2 | % | |||||||||||
Average assets under management for period | $ | 17,480 | $ | 17,077 | $ | 17,910 | 2.4 | % | (2.4 | %) | |||||||
Advisory | |||||||||||||||||
Assets under management, beginning of period | $ | 6,233 | $ | 6,458 | $ | 7,268 | |||||||||||
Inflows | 121 | 164 | 99 | ||||||||||||||
Outflows | (165 | ) | (487 | ) | (86 | ) | |||||||||||
Net (outflows) inflows | (44 | ) | (323 | ) | 13 | ||||||||||||
Market appreciation | 366 | 98 | 479 | ||||||||||||||
Total increase (decrease) | 322 | (225 | ) | 492 | |||||||||||||
Assets under management, end of period | $ | 6,555 | $ | 6,233 | $ | 7,760 | 5.2 | % | (15.5 | %) | |||||||
Percentage of total assets under management | 26.8 | % | 27.2 | % | 29.8 | % | |||||||||||
Average assets under management for period | $ | 6,378 | $ | 6,566 | $ | 7,462 | (2.9 | %) | (14.5 | %) | |||||||
Total Institutional Accounts | |||||||||||||||||
Assets under management, beginning of period | $ | 22,926 | $ | 23,291 | $ | 24,850 | |||||||||||
Inflows | 432 | 549 | 246 | ||||||||||||||
Outflows | (652 | ) | (1,232 | ) | (590 | ) | |||||||||||
Net outflows | (220 | ) | (683 | ) | (344 | ) | |||||||||||
Market appreciation | 1,773 | 318 | 1,575 | ||||||||||||||
Total increase (decrease) | 1,553 | (365 | ) | 1,231 | |||||||||||||
Assets under management, end of period | $ | 24,479 | $ | 22,926 | $ | 26,081 | 6.8 | % | (6.1 | %) | |||||||
Average assets under management for period | $ | 23,858 | $ | 23,643 | $ | 25,372 | 0.9 | % | (6.0 | %) |
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, 2014 | December 31, 2013 | March 31, 2013 | December 31, 2013 | March 31, 2013 | |||||||||||||
U.S. Real Estate | |||||||||||||||||
Assets under management, beginning of period | $ | 23,116 | $ | 23,237 | $ | 22,613 | |||||||||||
Inflows | 756 | 766 | 753 | ||||||||||||||
Outflows | (829 | ) | (813 | ) | (450 | ) | |||||||||||
Net (outflows) inflows | (73 | ) | (47 | ) | 303 | ||||||||||||
Market appreciation (depreciation) | 2,208 | (74 | ) | 1,539 | |||||||||||||
Total increase (decrease) | 2,135 | (121 | ) | 1,842 | |||||||||||||
Assets under management, end of period | $ | 25,251 | $ | 23,116 | $ | 24,455 | 9.2 | % | 3.3 | % | |||||||
Percentage of total assets under management | 51.5 | % | 50.4 | % | 49.6 | % | |||||||||||
Average assets under management for period | $ | 24,362 | $ | 23,614 | $ | 23,541 | 3.2 | % | 3.5 | % | |||||||
Global/International Real Estate | |||||||||||||||||
Assets under management, beginning of period | $ | 9,498 | $ | 9,630 | $ | 11,155 | |||||||||||
Inflows | 485 | 345 | 317 | ||||||||||||||
Outflows | (664 | ) | (510 | ) | (748 | ) | |||||||||||
Net outflows | (179 | ) | (165 | ) | (431 | ) | |||||||||||
Market appreciation | 402 | 33 | 553 | ||||||||||||||
Total increase (decrease) | 223 | (132 | ) | 122 | |||||||||||||
Assets under management, end of period | $ | 9,721 | $ | 9,498 | $ | 11,277 | 2.3 | % | (13.8 | %) | |||||||
Percentage of total assets under management | 19.8 | % | 20.7 | % | 22.9 | % | |||||||||||
Average assets under management for period | $ | 9,595 | $ | 9,694 | $ | 11,239 | (1.0 | %) | (14.6 | %) | |||||||
Preferred Securities | |||||||||||||||||
Assets under management, beginning of period | $ | 4,722 | $ | 4,820 | $ | 4,364 | |||||||||||
Inflows | 358 | 194 | 594 | ||||||||||||||
Outflows | (180 | ) | (340 | ) | (147 | ) | |||||||||||
Net inflows (outflows) | 178 | (146 | ) | 447 | |||||||||||||
Market appreciation | 226 | 48 | 118 | ||||||||||||||
Total increase (decrease) | 404 | (98 | ) | 565 | |||||||||||||
Assets under management, end of period | $ | 5,126 | $ | 4,722 | $ | 4,929 | 8.6 | % | 4.0 | % | |||||||
Percentage of total assets under management | 10.5 | % | 10.3 | % | 10.0 | % | |||||||||||
Average assets under management for period | $ | 4,946 | $ | 4,820 | $ | 4,626 | 2.6 | % | 6.9 | % | |||||||
Global Listed Infrastructure | |||||||||||||||||
Assets under management, beginning of period | $ | 4,714 | $ | 4,469 | $ | 3,509 | |||||||||||
Inflows | 302 | 134 | 488 | ||||||||||||||
Outflows | (224 | ) | (57 | ) | (18 | ) | |||||||||||
Net inflows | 78 | 77 | 470 | ||||||||||||||
Market appreciation | 280 | 168 | 197 | ||||||||||||||
Total increase | 358 | 245 | 667 | ||||||||||||||
Assets under management, end of period | $ | 5,072 | $ | 4,714 | $ | 4,176 | 7.6 | % | 21.5 | % | |||||||
Percentage of total assets under management | 10.3 | % | 10.3 | % | 8.5 | % | |||||||||||
Average assets under management for period | $ | 5,011 | $ | 4,661 | $ | 3,630 | 7.5 | % | 38.0 | % |
Cohen & Steers, Inc. and Subsidiaries | |||||||||||||||||
Assets Under Management (Unaudited) | |||||||||||||||||
By Investment Strategy - continued | |||||||||||||||||
For the Periods Ended | |||||||||||||||||
(in millions) | |||||||||||||||||
Three Months Ended | % Change From | ||||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | December 31, 2013 | March 31, 2013 | |||||||||||||
Large Cap Value | |||||||||||||||||
Assets under management, beginning of period | $ | 2,907 | $ | 3,492 | $ | 3,465 | |||||||||||
Inflows | 9 | 8 | 30 | ||||||||||||||
Outflows | (155 | ) | (902 | ) | (64 | ) | |||||||||||
Net outflows | (146 | ) | (894 | ) | (34 | ) | |||||||||||
Market appreciation | 96 | 309 | 315 | ||||||||||||||
Total (decrease) increase | (50 | ) | (585 | ) | 281 | ||||||||||||
Assets under management, end of period | $ | 2,857 | $ | 2,907 | $ | 3,746 | (1.7 | %) | (23.7 | %) | |||||||
Percentage of total assets under management | 5.8 | % | 6.3 | % | 7.6 | % | |||||||||||
Average assets under management for period | $ | 2,822 | $ | 3,279 | $ | 3,654 | (13.9 | %) | (22.8 | %) | |||||||
Other | |||||||||||||||||
Assets under management, beginning of period | $ | 950 | $ | 688 | $ | 691 | |||||||||||
Inflows | 45 | 255 | 30 | ||||||||||||||
Outflows | (19 | ) | (7 | ) | (12 | ) | |||||||||||
Net inflows | 26 | 248 | 18 | ||||||||||||||
Market appreciation | 28 | 14 | 29 | ||||||||||||||
Total increase | 54 | 262 | 47 | ||||||||||||||
Assets under management, end of period | $ | 1,004 | $ | 950 | $ | 738 | 5.7 | % | 36.0 | % | |||||||
Percentage of total assets under management | 2.0 | % | 2.1 | % | 1.5 | % | |||||||||||
Average assets under management for period | $ | 970 | $ | 902 | $ | 721 | 7.5 | % | 34.5 | % | |||||||
Total | |||||||||||||||||
Assets under management, beginning of period | $ | 45,907 | $ | 46,336 | $ | 45,797 | |||||||||||
Inflows | 1,955 | 1,702 | 2,212 | ||||||||||||||
Outflows | (2,071 | ) | (2,629 | ) | (1,439 | ) | |||||||||||
Net (outflows) inflows | (116 | ) | (927 | ) | 773 | ||||||||||||
Market appreciation | 3,240 | 498 | 2,751 | ||||||||||||||
Total increase (decrease) | 3,124 | (429 | ) | 3,524 | |||||||||||||
Assets under management, end of period | $ | 49,031 | $ | 45,907 | $ | 49,321 | 6.8 | % | (0.6 | %) | |||||||
Average assets under management for period | $ | 47,706 | $ | 46,970 | $ | 47,411 | 1.6 | % | 0.6 | % |
1PPL?4>'S51::6/.=U;D!_J8
M%]BD8U?AQQOR3D'WN^[[7=8A9V>CZ@EE;F'+$7F^41PDZ691T71J6*)LWIZPZNL:T]Q$5Y1[;F<4[A[#*R8.%GXR+
M5LNF[%0%4R&_*%1NO]>FW'6?N#1#=G2CJ<'%C=(09:@4;P11V8E[?-M99(?T
M8!]&%Z>HH7/U%5U9@ZE75GA>7C_8N5$;W_>4VFI9;DEAU2=Q-I&:!QKB-:FV
MEOHV5@QSA*JVA#2)K+XS*;#81,S8JNF3:4-ZBO#D`2"F)@