COHEN & STEERS, INC. NEW YORK, Jan. 18, 2017 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported earnings of $0.56 per diluted share for the quarter ended December 31, 2016, compared with $0.27 per diluted share for the quarter ended December 31, 2015 and $0.51 per diluted share for the quarter ended September 30, 2016. Adjusted earnings per diluted share were $0.48 for the quarter ended December 31, 2016, compared with $0.41 per diluted share for the quarter ended December 31, 2015 and $0.51 per diluted share for the quarter ended September 30, 2016.
For the year ended December 31, 2016, the company reported earnings of $2.00 per diluted share, compared with $1.41 per diluted share for the year ended December 31, 2015. Adjusted earnings per diluted share were $1.85 for the year ended December 31, 2016, compared with $1.71 per diluted share for the year ended December 31, 2015.
Financial Highlights (Unaudited)
For the Periods
(in thousands, except per share data) Three Months Ended Years Ended
December 31, September 30, December 31, December 31, December 31,
2016 2016 2015 (1) 2016 2015
---- ---- ------- ---- ----
U.S. GAAP
Revenue $89,434 $94,388 $81,671 $349,876 $328,655
Expenses $53,574 $57,175 $51,319 $214,365 $201,106
Operating income $35,860 $37,213 $30,352 $135,511 $127,549
Operating margin 40.1% 39.4% 37.2% 38.7% 38.8%
Non-operating income (loss) $1,427 $1,356 $(5,572) $7,892 $(14,805)
Net income attributable to common stockholders $26,168 $23,877 $12,385 $92,936 $64,551
Diluted earnings per share $0.56 $0.51 $0.27 $2.00 $1.41
As Adjusted (2)
Net income attributable to common stockholders $22,373 $23,626 $18,878 $86,109 $78,694
Diluted earnings per share $0.48 $0.51 $0.41 $1.85 $1.71
_______________________
(1) During the three months ended December 31, 2015,
one of the company's seed investments changed
classification from available-for-sale to equity
method. As a result, all prior periods have been
retroactively adjusted to reflect this investment
as if it had been an equity method investment in
prior periods.
(2) The as adjusted financial measures represent non-
GAAP financial measures. Please refer to the "Non-
GAAP Reconciliations" of this release for a
reconciliation to the most directly comparable
U.S. GAAP financial measures.
U.S. GAAP
This section discusses the financial results of the company as presented in accordance with U.S. GAAP.
Revenue
Revenue for the fourth quarter of 2016 was $89.4 million, a decrease of $5.0 million from $94.4 million for the third quarter of 2016. Lower average assets under management in the fourth quarter of 2016 resulted in the following changes in investment advisory and administration fees:
-- Institutional account revenue decreased $1.9 million to $23.3 million;
-- Open-end fund revenue decreased $1.7 million to $39.1 million; and
-- Closed-end fund revenue decreased $1.1 million to $19.1 million.
Revenue for the year ended December 31, 2016 was $349.9 million, an increase of $21.2 million from $328.7 million for the year ended December 31, 2015.
Expenses
Expenses for the fourth quarter of 2016 were $53.6 million, a decrease of $3.6 million from $57.2 million for the third quarter of 2016. The change was primarily due to:
-- Lower employee compensation and benefits of $2.6 million, primarily
attributable to lower incentive and production compensation; and
-- Decreased distribution and service fees of $1.1 million, primarily due
to lower average assets under management in U.S. no-load open-end funds.
Expenses for the year ended December 31, 2016 were $214.4 million, an increase of $13.3 million from $201.1 million for the year ended December 31, 2015.
Operating Margin
Operating margin was 40.1% for the fourth quarter of 2016 compared with 39.4% for the third quarter of 2016. Operating margin was 38.7% for the year ended December 31, 2016 compared with 38.8% for the year ended December 31, 2015.
Non-operating Income
Non-operating income was $1.4 million for both the fourth and third quarters of 2016.
Non-operating income for the year ended December 31, 2016 was $7.9 million, compared with non-operating loss of $14.8 million for the year ended December 31, 2015, which included an unrealized non-operating loss of $8.2 million on a seed investment that, due to third-party shareholder redemptions, was reclassified from available-for-sale investments to equity method investments. In addition, non-operating loss for the year ended December 31, 2015 included a $2.8 million other-than-temporary impairment.
Income Taxes
The effective tax rate for the fourth quarter of 2016 was 29.8% compared with 38.2% for the third quarter of 2016. The decrease was primarily attributable to gains on the company's seed investments, which would not be taxable due to capital loss carryforwards, as well as discrete items.
The effective tax rate for the year ended December 31, 2016 was 35.3%, compared with 42.9% for the year ended December 31, 2015, which included the recordation of a valuation allowance on the tax benefit associated with losses on the company's seed investments.
As Adjusted
The term "as adjusted" is used to identify non-GAAP financial information in the discussion below and excludes the financial results associated with the company's seed investments, the effect of the accelerated vesting of certain restricted stock units in the first quarter of 2016 and the tax effect on these items. Please refer to the "Non-GAAP Reconciliations" of this release for a reconciliation to the most directly comparable U.S. GAAP financial measures.
Non-Operating Income
Non-operating income, as adjusted, for the quarter ended December 31, 2016 was $587,000, compared with $394,000 for the quarter ended September 30, 2016. The change was primarily due to net gains associated with forward contracts used to hedge certain non-U.S. dollar advisory fee receivables and interest earned on corporate cash.
Non-operating income, as adjusted, for the year ended December 31, 2016 was $1.2 million, compared with non-operating loss, as adjusted, of $772,000 for the year ended December 31, 2015. The change was primarily due to net gains associated with forward contracts used to hedge certain non-U.S. dollar advisory fee receivables and interest earned on corporate cash.
Operating Margin
Operating margin, as adjusted, was 40.1% for the fourth quarter of 2016 compared with 39.5% for the third quarter of 2016. Operating margin, as adjusted, was 39.3% for the year ended December 31, 2016 compared with 38.8% for the year ended December 31, 2015.
Assets Under Management Highlights (Unaudited)
December 31, 2016 Compared with September 30, 2016
(in millions) Assets Under Management
As of
By Investment Vehicle December 31, September 30, % Change
2016 2016
--- ---- ----
Institutional accounts $28,659 $29,948 (4.3%)
Open-end funds 19,576 21,165 (7.5%)
Closed-end funds 8,963 9,384 (4.5%)
----- -----
Total $57,198 $60,497 (5.5%)
======= =======
By Investment Strategy
----------------------
U.S. real estate $28,927 $31,248 (7.4%)
Preferred securities 9,880 10,440 (5.4%)
Global/international real estate 9,403 10,056 (6.5%)
Global listed infrastructure 5,697 5,862 (2.8%)
Other 3,291 2,891 13.8%
----- -----
Total $57,198 $60,497 (5.5%)
======= =======
Assets under management were $57.2 billion as of December 31, 2016, a decrease of $3.3 billion from $60.5 billion at September 30, 2016. The decrease from September 30, 2016 was attributable to market depreciation of $2.1 billion and distributions of $1.9 billion, partially offset by net inflows of $707 million.
Institutional Accounts
Assets under management in institutional accounts were $28.7 billion as of December 31, 2016, a decrease of 4.3% from $29.9 billion at September 30, 2016. The change from September 30, 2016 was due to the following:
-- Net inflows of $109 million from Japan subadvised accounts, primarily
comprised of $139 million into U.S. real estate, partially offset by net
outflows of $48 million from global/international real estate;
-- Distributions from Japan subadvised accounts of $800 million, primarily
comprised of $757 million out of U.S. real estate;
-- Net inflows of $40 million from subadvised accounts excluding Japan,
primarily comprised of $167 million into global/international real
estate, partially offset by net outflows of $84 million from U.S. real
estate and $49 million from commodities (included in "Other" in the
table above);
-- Net inflows of $506 million from advised accounts, primarily comprised
of $424 million into multi-strategy real assets (included in "Other" in
the table above), and $145 million into global listed infrastructure,
partially offset by net outflows of $48 million from
global/international real estate; and
-- Market depreciation of $1.1 billion, including $570 million from U.S.
real estate and $471 million from global/international real estate.
Open-end Funds
Assets under management for open-end funds were $19.6 billion as of December 31, 2016, a decrease of 7.5% from $21.2 billion at September 30, 2016. The change from September 30, 2016 was due to the following:
-- Net inflows of $54 million, including $283 million into U.S. real
estate, partially offset by net outflows of $244 million from preferred
securities;
-- Market depreciation of $708 million, including $422 million from U.S.
real estate, $169 million from preferred securities and $121 million
from global/international real estate; and
-- Distributions of $935 million, including $754 million out of U.S. real
estate and $90 million out of preferred securities.
Closed-end Funds
Assets under management for closed-end funds were $9.0 billion as of December 31, 2016, a decrease of 4.5% from $9.4 billion at September 30, 2016. The decrease from September 30, 2016 was due to market depreciation of $254 million and distributions of $165 million.
Investment Performance as of December 31, 2016
% of Total AUM in Outperforming Strategies (1)
---------------------------------------------
December 31, December 31, December 31,
2014 2015 2016
---- ---- ----
1-Year 95% 88% 44%
------ --- --- ---
3-Year 76% 100% 96%
------ --- --- ---
5-Year 60% 76% 76%
------ --- --- ---
10-Year 61% 100% 95%
------- --- --- ---
% of U.S. Open-End Fund AUM by Morningstar Rating (2), as of December 31, 2016
- 1%
Not Rated
1 or 2 Star * 4%
or
**
*** 7%
3 Star
4 or 5 Star **** 88%
or
*****
--- ----
(1) Past performance of investment
strategies is no guarantee of future
results. Outperformance determined by
annualized investment performance of
all accounts in each investment
strategy measured gross of fees and
net of withholding taxes in comparison
to performance of each account's
reference benchmark measured net of
withholding taxes, where applicable.
This is not investment advice and may
not be construed as sales or marketing
material for any financial product or
service sponsored or provided by Cohen
& Steers.
(2) Past performance is no guarantee of
future results. Based on independent
rating by Morningstar, Inc. of
investment performance of each Cohen &
Steers-sponsored open-end U.S.-
registered mutual fund for overall
period as of December 31, 2016. This
is not investment advice and may not
be construed as sales or marketing
material for any financial product or
service sponsored or provided by Cohen
& Steers. See Additional Disclosures
at the end of this release for more
information.
Balance Sheet Information
As of December 31, 2016, cash, cash equivalents and seed investments were $239 million. As of December 31, 2016, stockholders' equity was $266 million and the company had no debt.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, January 19, 2017 at 10:00 a.m. (ET) to discuss the company's fourth quarter and full year 2016 financial results. Investors and analysts can access the live conference call by dialing 888-228-0562 (U.S.) or +1-303-223-4374 (international); passcode: 21841605. Participants should plan to register at least 10 minutes before the conference call begins. The presentation that will be reviewed as part of the conference call is available on the company's website at www.cohenandsteers.com under "Company - Press Releases."
A replay of the call will be available for two weeks starting at approximately 12:00 p.m. (ET) on January 19, 2017 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21841605. Internet access to the webcast, which includes audio (listen-only), will be available on the company's website at www.cohenandsteers.com under "Company - Investor Relations." The webcast will be archived on the website for one month.
About Cohen & Steers
Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle.
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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the company's current views with respect to, among other things, the company's 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 forward-looking statements. The company believes that these factors include, but are not limited to, the risks described in the Risk Factors section of the company's Annual Report on Form 10-K for the year ended December 31, 2015 (the Form 10-K), 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 are not exhaustive and should be read in conjunction with the other cautionary statements that are included in the company's Form 10-K and other filings with the Securities and Exchange Commission. 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
(in thousands, except per share data)
Three Months Ended % Change From
December 31, September 30, December 31, September 30, December 31,
2016 2016 2015 (1) 2016 2015
---- ---- ------- ---- ----
Revenue
Investment advisory and administration fees $81,410 $86,079 $75,269
Distribution and service fees 5,196 5,296 4,120
Portfolio consulting and other 2,828 3,013 2,282
-----
Total revenue 89,434 94,388 81,671 (5.2%) 9.5%
------ ------ ------
Expenses
Employee compensation and benefits 28,329 30,951 27,440
Distribution and service fees 10,023 11,092 8,976
General and administrative 13,206 13,128 13,390
Depreciation and amortization 2,016 2,004 1,513
Total expenses 53,574 57,175 51,319 (6.3%) 4.4%
------ ------ ------
Operating income 35,860 37,213 30,352 (3.6%) 18.1%
------ ------ ------
Non-operating income
Interest and dividend income-net 652 367 560
Gain (loss) from seed investments-net 290 698 (6,081)
Other income (losses) 485 291 (51)
--- --- ---
Total non-operating income (loss) 1,427 1,356 (5,572) * *
----- ----- ------
Income before provision for income taxes 37,287 38,569 24,780 (3.3%) 50.5%
Provision for income taxes 11,096 14,738 12,446
------ ------ ------
Net income 26,191 23,831 12,334 9.9% 112.3%
Less: Net (income) loss attributable to (23) 46 51
redeemable noncontrolling interest
Net income attributable to common stockholders $26,168 $23,877 $12,385 9.6% 111.3%
======= ======= =======
Earnings per share attributable to common
stockholders
Basic $0.57 $0.52 $0.27 9.6% 109.1%
===== ===== =====
Diluted $0.56 $0.51 $0.27 9.4% 108.4%
===== ===== =====
Dividends declared per share
Quarterly $0.26 $0.26 $0.25 -% 4.0%
===== ===== =====
Special $0.50 $ - $0.50 * -%
===== === === =====
Weighted average shares outstanding
Basic 46,010 45,999 45,524
====== ====== ======
Diluted 46,609 46,544 45,969
====== ====== ======
* Not meaningful
(1) During the three months ended
December 31, 2015, one of the
company's seed investments
changed classification from
available-for-sale to equity
method. As a result, all prior
periods have been retroactively
adjusted to reflect this
investment as if it had been an
equity method investment in
prior periods.
Cohen & Steers, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
For the Periods
(in thousands, except per share data)
Years Ended
December 31, December 31, % Change
2016 2015
---- ----
Revenue
Investment advisory and administration fees $319,667 $303,729
Distribution and service fees 19,396 16,001
Portfolio consulting and other 10,813 8,925
Total revenue 349,876 328,655 6.5%
------- -------
Expenses
Employee compensation and benefits 115,607 107,710
Distribution and service fees 39,590 36,330
General and administrative 51,558 50,853
Depreciation and amortization 7,610 6,213
Total expenses 214,365 201,106 6.6%
------- -------
Operating income 135,511 127,549 6.2%
------- -------
Non-operating income
Interest and dividend income-net 2,119 1,600
Gain (loss) from seed investments-net 4,993 (15,402)
Other income (losses) 780 (1,003)
--- ------
Total non-operating income (loss) 7,892 (14,805) *
----- -------
Income before provision for income taxes 143,403 112,744 27.2%
Provision for income taxes 50,593 48,407
------ ------
Net income 92,810 64,337 44.3%
Less: Net loss attributable to 126 214
redeemable noncontrolling interest
Net income attributable to common stockholders $92,936 $64,551 44.0%
======= =======
Earnings per share attributable to common
stockholders
Basic $2.02 $1.42 42.3%
===== =====
Diluted $2.00 $1.41 42.3%
===== =====
Dividends declared per share
Quarterly $1.04 $1.00 4.0%
===== =====
Special $0.50 $0.50 -%
===== =====
Weighted average shares outstanding
Basic 45,951 45,433
====== ======
Diluted 46,432 45,897
====== ======
* Not meaningful
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Vehicle
For the Periods
(in millions)
Three Months Ended % Change From
December 31, September 30, December 31, September 30, December 31,
2016 2016 2015 (1) 2016 2015
---- ---- ------- ---- ----
Institutional Accounts
----------------------
Assets under management, beginning of period $29,948 $29,581 $24,645
------- ------- -------
Inflows 1,364 1,612 1,023
Outflows (709) (636) (475)
---- ---- ----
Net inflows 655 976 548
Market (depreciation) appreciation (1,144) 219 1,495
Distributions (800) (828) (583)
Total (decrease) increase (1,289) 367 1,460
------ --- -----
Assets under management, end of period $28,659 $29,948 $26,105 (4.3%) 9.8%
======= ======= =======
Percentage of total assets under management 50.1% 49.5% 49.6%
==== ==== ====
Average assets under management for period $28,343 $30,138 $25,655 (6.0%) 10.5%
======= ======= =======
Open-end Funds
--------------
Assets under management, beginning of period $21,165 $19,777 $16,141
------- ------- -------
Inflows 2,623 2,592 2,263
Outflows (2,569) (1,322) (1,319)
------ ------ ------
Net inflows 54 1,270 944
Market (depreciation) appreciation (708) 275 871
Distributions (935) (157) (496)
Total (decrease) increase (1,589) 1,388 1,319
------ ----- -----
Assets under management, end of period $19,576 $21,165 $17,460 (7.5%) 12.1%
======= ======= =======
Percentage of total assets under management 34.2% 35.0% 33.2%
==== ==== ====
Average assets under management for period $20,025 $20,863 $17,114 (4.0%) 17.0%
======= ======= =======
Closed-end Funds
----------------
Assets under management, beginning of period $9,384 $9,391 $8,958
------ ------ ------
Inflows - - -
Outflows (2) - (34)
--- --- ---
Net outflows (2) - (34)
Market (depreciation) appreciation (254) 115 237
Distributions (165) (122) (132)
Total (decrease) increase (421) (7) 71
---- --- ---
Assets under management, end of period $8,963 $9,384 $9,029 (4.5%) (0.7%)
====== ====== ======
Percentage of total assets under management 15.7% 15.5% 17.2%
==== ==== ====
Average assets under management for period $9,011 $9,516 $9,198 (5.3%) (2.0%)
====== ====== ======
Total
-----
Assets under management, beginning of period $60,497 $58,749 $49,744
------- ------- -------
Inflows 3,987 4,204 3,286
Outflows (3,280) (1,958) (1,828)
------ ------ ------
Net inflows 707 2,246 1,458
Market (depreciation) appreciation (2,106) 609 2,603
Distributions (1,900) (1,107) (1,211)
------ ------ ------
Total (decrease) increase (3,299) 1,748 2,850
------ ----- -----
Assets under management, end of period $57,198 $60,497 $52,594 (5.5%) 8.8%
======= ======= =======
Average assets under management for period $57,379 $60,517 $51,967 (5.2%) 10.4%
======= ======= =======
(1) December 31, 2015 amounts have been
reclassified to show distributions
separately and dividend
reinvestments as inflows.
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Vehicle
For the Periods
(in millions)
Years Ended
December 31, December 31, % Change
2016 2015 (1)
---- -------
Institutional Accounts
----------------------
Assets under management, beginning of period $26,105 $26,201
------- -------
Inflows 6,374 3,646
Outflows (2,414) (2,379)
------ ------
Net inflows 3,960 1,267
Market appreciation 1,627 863
Distributions (3,033) (2,226)
------ ------
Total increase (decrease) 2,554 (96)
----- ---
Assets under management, end of period $28,659 $26,105 9.8%
======= =======
Percentage of total assets under management 50.1% 49.6%
==== ====
Average assets under management for period $28,085 $25,884 8.5%
======= =======
Open-end Funds
--------------
Assets under management, beginning of period $17,460 $17,131
------- -------
Inflows 9,630 7,344
Outflows (6,831) (5,901)
------ ------
Net inflows 2,799 1,443
Market appreciation 917 560
Distributions (1,600) (1,674)
------ ------
Total increase 2,116 329
----- ---
Assets under management, end of period $19,576 $17,460 12.1%
======= =======
Percentage of total assets under management 34.2% 33.2%
==== ====
Average assets under management for period $19,176 $17,252 11.2%
======= =======
Closed-end Funds
----------------
Assets under management, beginning of period $9,029 $9,805
------ ------
Inflows - -
Outflows (88) (53)
--- ---
Net outflows (88) (53)
Market appreciation (depreciation) 554 (206)
Distributions (532) (517)
---- ----
Total decrease (66) (776)
--- ----
Assets under management, end of period $8,963 $9,029 (0.7%)
====== ======
Percentage of total assets under management 15.7% 17.2%
==== ====
Average assets under management for period $9,108 $9,586 (5.0%)
====== ======
Total
-----
Assets under management, beginning of period $52,594 $53,137
------- -------
Inflows 16,004 10,990
Outflows (9,333) (8,333)
------ ------
Net inflows 6,671 2,657
Market appreciation 3,098 1,217
Distributions (5,165) (4,417)
------ ------
Total increase (decrease) 4,604 (543)
----- ----
Assets under management, end of period $57,198 $52,594 8.8%
======= =======
Average assets under management for period $56,369 $52,722 6.9%
======= =======
(1) December 31, 2015 amounts have been
reclassified to show distributions
separately and dividend
reinvestments as inflows.
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management - Institutional Accounts (Unaudited)
By Account Type
For the Periods
(in millions)
Three Months Ended % Change From
December 31, September 30, December 31, September 30, December 31,
2016 2016 2015 (1) 2016 2015
---- ---- ------- ---- ----
Japan Subadvisory
-----------------
Assets under management, beginning of period $14,944 $14,852 $12,234
------- ------- -------
Inflows 447 1,084 625
Outflows (338) (96) (92)
---- --- ---
Net inflows 109 988 533
Market (depreciation) appreciation (554) (68) 928
Distributions (800) (828) (583)
---- ---- ----
Total (decrease) increase (1,245) 92 878
------ --- ---
Assets under management, end of period $13,699 $14,944 $13,112 (8.3%) 4.5%
======= ======= =======
Percentage of institutional assets under management 47.8% 49.9% 50.2%
==== ==== ====
Average assets under management for period $13,807 $15,025 $12,726 (8.1%) 8.5%
======= ======= =======
Subadvisory Excluding Japan
---------------------------
Assets under management, beginning of period $6,048 $5,782 $5,266
------ ------ ------
Inflows 321 374 216
Outflows (281) (223) (261)
---- ---- ----
Net inflows (outflows) 40 151 (45)
Market (depreciation) appreciation (196) 115 207
Total (decrease) increase (156) 266 162
---- --- ---
Assets under management, end of period $5,892 $6,048 $5,428 (2.6%) 8.5%
====== ====== ======
Percentage of institutional assets under management 20.6% 20.2% 20.8%
==== ==== ====
Average assets under management for period $5,790 $5,979 $5,454 (3.2%) 6.2%
====== ====== ======
Advisory
--------
Assets under management, beginning of period $8,956 $8,947 $7,145
------ ------ ------
Inflows 596 154 182
Outflows (90) (317) (122)
--- ---- ----
Net inflows (outflows) 506 (163) 60
Market (depreciation) appreciation (394) 172 360
Total increase 112 9 420
--- --- ---
Assets under management, end of period $9,068 $8,956 $7,565 1.3% 19.9%
====== ====== ======
Percentage of institutional assets under management 31.6% 29.9% 29.0%
==== ==== ====
Average assets under management for period $8,746 $9,134 $7,475 (4.2%) 17.0%
====== ====== ======
Total Institutional Accounts
----------------------------
Assets under management, beginning of period $29,948 $29,581 $24,645
------- ------- -------
Inflows 1,364 1,612 1,023
Outflows (709) (636) (475)
---- ---- ----
Net inflows 655 976 548
Market (depreciation) appreciation (1,144) 219 1,495
Distributions (800) (828) (583)
Total (decrease) increase (1,289) 367 1,460
------ --- -----
Assets under management, end of period $28,659 $29,948 $26,105 (4.3%) 9.8%
======= ======= =======
Average assets under management for period $28,343 $30,138 $25,655 (6.0%) 10.5%
======= ======= =======
(1) December 31, 2015 amounts have
been reclassified to show
distributions separately.
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management - Institutional Accounts (Unaudited)
By Account Type
For the Periods
(in millions)
Years Ended
December 31, December 31, % Change
2016 2015 (1)
---- -------
Japan Subadvisory
-----------------
Assets under management, beginning of period $13,112 $13,377
------- -------
Inflows 3,305 1,859
Outflows (503) (607)
---- ----
Net inflows 2,802 1,252
Market appreciation 818 709
Distributions (3,033) (2,226)
------ ------
Total increase (decrease) 587 (265)
Assets under management, end of period $13,699 $13,112 4.5%
======= =======
Percentage of institutional assets under management 47.8% 50.2%
==== ====
Average assets under management for period $13,607 $12,973 4.9%
======= =======
Subadvisory Excluding Japan
---------------------------
Assets under management, beginning of period $5,428 $5,480
------ ------
Inflows 1,030 1,034
Outflows (919) (1,013)
---- ------
Net inflows 111 21
Market appreciation (depreciation) 353 (73)
--- ---
Total increase (decrease) 464 (52)
Assets under management, end of period $5,892 $5,428 8.5%
Percentage of institutional assets under management 20.6% 20.8%
==== ====
Average assets under management for period $5,961 $5,537 7.7%
====== ======
Advisory
--------
Assets under management, beginning of period $7,565 $7,344
------ ------
Inflows 2,039 753
Outflows (992) (759)
---- ----
Net inflows (outflows) 1,047 (6)
Market appreciation 456 227
Total increase 1,503 221
----- ---
Assets under management, end of period $9,068 $7,565 19.9%
====== ======
Percentage of institutional assets under management 31.6% 29.0%
==== ====
Average assets under management for period $8,517 $7,374 15.5%
====== ======
Total Institutional Accounts
----------------------------
Assets under management, beginning of period $26,105 $26,201
------- -------
Inflows 6,374 3,646
Outflows (2,414) (2,379)
------ ------
Net inflows 3,960 1,267
Market appreciation 1,627 863
Distributions (3,033) (2,226)
------ ------
Total increase (decrease) 2,554 (96)
----- ---
Assets under management, end of period $28,659 $26,105 9.8%
======= =======
Average assets under management for period $28,085 $25,884 8.5%
======= =======
(1) December 31, 2015 amounts have
been reclassified to show
distributions separately.
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Strategy
For the Periods
(in millions)
Three Months Ended % Change From
December 31, September 30, December 31, September 30, December 31,
2016 2016 2015 (1) 2016 2015
---- ---- ------- ---- ----
U.S. Real Estate
----------------
Assets under management, beginning of period $31,248 $30,981 $25,812
------- ------- -------
Inflows 1,891 2,141 1,679
Outflows (1,565) (722) (673)
------ ---- ----
Net inflows 326 1,419 1,006
Market (depreciation) appreciation (1,095) (135) 1,976
Distributions (1,552) (890) (980)
Other (2) - (127) -
--- ---- ---
Total (decrease) increase (2,321) 267 2,002
------ --- -----
Assets under management, end of period $28,927 $31,248 $27,814 (7.4%) 4.0%
======= ======= =======
Percentage of total assets under management 50.6% 51.7% 52.9%
==== ==== ====
Average assets under management for period $29,063 $31,552 $27,195 (7.9%) 6.9%
======= ======= =======
Preferred Securities
--------------------
Assets under management, beginning of period $10,440 $9,082 $6,877
------- ------ ------
Inflows 954 1,611 1,145
Outflows (1,145) (435) (427)
------ ---- ----
Net (outflows) inflows (191) 1,176 718
Market (depreciation) appreciation (245) 297 209
Distributions (124) (115) (99)
---- ---- ---
Total (decrease) increase (560) 1,358 828
---- ----- ---
Assets under management, end of period $9,880 $10,440 $7,705 (5.4%) 28.2%
====== ======= ======
Percentage of total assets under management 17.3% 17.3% 14.6%
==== ==== ====
Average assets under management for period $10,253 $9,937 $7,343 3.2% 39.6%
======= ====== ======
Global/International Real Estate
--------------------------------
Assets under management, beginning of period $10,056 $9,984 $9,379
------- ------ ------
Inflows 403 231 155
Outflows (355) (554) (449)
---- ---- ----
Net inflows (outflows) 48 (323) (294)
Market (depreciation) appreciation (590) 314 448
Distributions (111) (46) (57)
Other (2) - 127 -
--- --- ---
Total (decrease) increase (653) 72 97
---- --- ---
Assets under management, end of period $9,403 $10,056 $9,476 (6.5%) (0.8%)
====== ======= ======
Percentage of total assets under management 16.4% 16.6% 18.0%
==== ==== ====
Average assets under management for period $9,332 $10,256 $9,605 (9.0%) (2.8%)
====== ======= ======
Global Listed Infrastructure
----------------------------
Assets under management, beginning of period $5,862 $5,760 $5,212
------ ------ ------
Inflows 255 141 201
Outflows (98) (77) (136)
--- --- ----
Net inflows 157 64 65
Market (depreciation) appreciation (242) 80 (75)
Distributions (80) (42) (55)
--- --- ---
Total (decrease) increase (165) 102 (65)
---- --- ---
Assets under management, end of period $5,697 $5,862 $5,147 (2.8%) 10.7%
====== ====== ======
Percentage of total assets under management 10.0% 9.7% 9.8%
==== === ===
Average assets under management for period $5,606 $5,854 $5,324 (4.2%) 5.3%
====== ====== ======
Other
-----
Assets under management, beginning of period $2,891 $2,942 $2,464
Inflows 484 80 106
Outflows (117) (170) (143)
---- ---- ----
Net inflows (outflows) 367 (90) (37)
Market appreciation 66 53 45
Distributions (33) (14) (20)
Total increase (decrease) 400 (51) (12)
--- --- ---
Assets under management, end of period $3,291 $2,891 $2,452 13.8% 34.2%
====== ====== ======
Percentage of total assets under management 5.8% 4.8% 4.7%
=== === ===
Average assets under management for period $3,125 $2,918 $2,500 7.1% 25.0%
====== ====== ======
Total
-----
Assets under management, beginning of period $60,497 $58,749 $49,744
------- ------- -------
Inflows 3,987 4,204 3,286
Outflows (3,280) (1,958) (1,828)
------ ------ ------
Net inflows 707 2,246 1,458
Market (depreciation) appreciation (2,106) 609 2,603
Distributions (1,900) (1,107) (1,211)
Other (2) - - -
--- --- ---
Total (decrease) increase (3,299) 1,748 2,850
------ ----- -----
Assets under management, end of period $57,198 $60,497 $52,594 (5.5%) 8.8%
======= ======= =======
Average assets under management for period $57,379 $60,517 $51,967 (5.2%) 10.4%
======= ======= =======
(1) December 31, 2015 amounts have been
reclassified to show distributions
separately and dividend
reinvestments as inflows.
(2) Represents transfer of assets under
management not related to
subscriptions, redemptions, market
appreciation (depreciation) or
distributions.
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Strategy
For the Periods
(in millions)
Years Ended
December 31, December 31, % Change
2016 2015 (1)
---- -------
U.S. Real Estate
----------------
Assets under management, beginning of period $27,814 $28,357
------- -------
Inflows 7,821 5,410
Outflows (4,091) (3,729)
------ ------
Net inflows 3,730 1,681
Market appreciation 1,674 1,358
Distributions (4,164) (3,582)
Other (2) (127) -
---- ---
Total increase (decrease) 1,113 (543)
----- ----
Assets under management, end of period $28,927 $27,814 4.0%
======= =======
Percentage of total assets under management 50.6% 52.9%
==== ====
Average assets under management for period $29,224 $27,663 5.6%
======= =======
Preferred Securities
--------------------
Assets under management, beginning of period $7,705 $6,342
------ ------
Inflows 4,857 3,048
Outflows (2,592) (1,702)
------ ------
Net inflows 2,265 1,346
Market appreciation 365 371
Distributions (455) (354)
---- ----
Total increase 2,175 1,363
----- -----
Assets under management, end of period $9,880 $7,705 28.2%
====== ======
Percentage of total assets under management 17.3% 14.6%
==== ====
Average assets under management for period $9,145 $6,915 32.2%
====== ======
Global/International Real Estate
--------------------------------
Assets under management, beginning of period $9,476 $10,184
------ -------
Inflows 1,596 1,017
Outflows (1,867) (1,900)
------ ------
Net outflows (271) (883)
Market appreciation 336 389
Distributions (265) (214)
Other (2) 127 -
--- ---
Total decrease (73) (708)
--- ----
Assets under management, end of period $9,403 $9,476 (0.8%)
====== ======
Percentage of total assets under management 16.4% 18.0%
==== ====
Average assets under management for period $9,734 $9,938 (2.1%)
====== ======
Global Listed Infrastructure
----------------------------
Assets under management, beginning of period $5,147 $5,697
------ ------
Inflows 732 918
Outflows (402) (608)
---- ----
Net inflows 330 310
Market appreciation (depreciation) 428 (670)
Distributions (208) (190)
---- ----
Total increase (decrease) 550 (550)
--- ----
Assets under management, end of period $5,697 $5,147 10.7%
====== ======
Percentage of total assets under management 10.0% 9.8%
==== ===
Average assets under management for period $5,488 $5,559 (1.3%)
====== ======
Other
-----
Assets under management, beginning of period $2,452 $2,557
------ ------
Inflows 998 597
Outflows (381) (394)
---- ----
Net inflows 617 203
Market appreciation (depreciation) 295 (231)
Distributions (73) (77)
--- ---
Total increase (decrease) 839 (105)
--- ----
Assets under management, end of period $3,291 $2,452 34.2%
====== ======
Percentage of total assets under management 5.8% 4.7%
=== ===
Average assets under management for period $2,778 $2,647 4.9%
====== ======
Total
-----
Assets under management, beginning of period $52,594 $53,137
------- -------
Inflows 16,004 10,990
Outflows (9,333) (8,333)
------ ------
Net inflows 6,671 2,657
Market appreciation 3,098 1,217
Distributions (5,165) (4,417)
Other (2) - -
--- ---
Total increase (decrease) 4,604 (543)
----- ----
Assets under management, end of period $57,198 $52,594 8.8%
======= =======
Average assets under management for period $56,369 $52,722 6.9%
======= =======
(1) December 31, 2015 amounts have been
reclassified to show distributions
separately and dividend
reinvestments as inflows.
(2) Represents transfer of assets under
management not related to
subscriptions, redemptions, market
appreciation (depreciation) or
distributions.
Non-GAAP Reconciliations
Management believes that use of these non-GAAP financial measures may enhance the evaluation of the company's results, as they provide greater transparency into the company's operating results. In addition, these non-GAAP financial measures are used to prepare the company's internal management reports and are used by management in
evaluating the company's business.
While management believes that this non-GAAP financial information is useful in evaluating the company's results and operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP.
Reconciliation of U.S. GAAP Net Income Attributable to Common Stockholders and U.S. GAAP Earnings per Share to Net Income Attributable to Common Stockholders, As Adjusted and Earnings per Share, As Adjusted
For the Periods
(in thousands, except per share data) Three Months Ended Years Ended
December 31, September 30, December 31, December 31, December 31,
2016 2016 2015 (1) 2016 2015
---- ---- ------- ---- ----
Net income attributable to common stockholders, U.S. GAAP $26,168 $23,877 $12,385 $92,936 $64,551
Accelerated vesting of restricted stock units (2) $ - $ - $ - $1,945 $ -
Deconsolidation (3) $218 $311 $645 $(654) $2,136
Results from seed investments (4) $(982) $(1,234) $4,973 $(5,934) $11,833
Tax adjustments (5) $(3,031) $672 $875 $(2,184) $174
Net income attributable to common stockholders, as adjusted $22,373 $23,626 $18,878 $86,109 $78,694
----------------------------------------------------------- ------- ------- ------- ------- -------
Diluted weighted average shares outstanding 46,609 46,544 45,969 46,432 45,897
Diluted earnings per share, U.S. GAAP $0.56 $0.51 $0.27 $2.00 $1.41
Accelerated vesting of restricted stock units (2) $ - $ - $ - $0.04 $ -
Deconsolidation (3) $ - $0.01 $0.01 $(0.01) $0.05
Results from seed investments (4) $(0.02) $(0.02) $0.11 $(0.13) $0.25
Tax adjustments (5) $(0.06) $0.01 $0.02 $(0.05) $ -
Diluted earnings per share, as adjusted $0.48 $0.51 $0.41 $1.85 $1.71
--------------------------------------- ----- ----- ----- ----- -----
(1) During the three months ended December 31, 2015, one of the company's seed investments changed classification from available-for-sale to equity method. As a result, all prior periods have been retroactively adjusted to reflect this
investment as if it had been an equity method investment in prior periods.
(2) Represents amounts attributable to the accelerated vesting of certain restricted stock units in the first quarter of 2016.
(3) Represents amounts related to deconsolidation of the company's consolidated seed investments in Company-sponsored funds.
(4) Represents dividend income and realized gains on the company's seed investments classified as available-for-sale, and the company's proportionate share of the results of operations of seed investments classified as equity method investments,
including realized and unrealized gains and losses.
(5) Represents the tax benefit associated with the accelerated vesting of certain restricted stock units for the year ended December 31, 2016 as well as discrete items recorded in each of the periods presented.
Reconciliation of U.S. GAAP Operating Income and U.S. GAAP Operating Margin to Operating Income, As Adjusted and Operating Margin, As Adjusted
For the Periods
(in thousands, except percentages) Three Months Ended Years Ended
December 31, September 30, December 31, December 31, December 31,
2016 2016 2015 (1) 2016 2015
---- ---- ------- ---- ----
Revenue, U.S. GAAP $89,434 $94,388 $81,671 $349,876 $328,655
Deconsolidation (2) $29 $31 $39 $147 $102
Revenue, as adjusted $89,463 $94,419 $81,710 $350,023 $328,757
-------------------- ------- ------- ------- -------- --------
Operating income, U.S. GAAP $35,860 $37,213 $30,352 $135,511 $127,549
Deconsolidation (2) $53 $85 $64 $253 $150
Accelerated vesting of restricted stock units (3) $ - $ - $ - $1,945 $ -
Operating income, as adjusted $35,913 $37,298 $30,416 $137,709 $127,699
----------------------------- ------- ------- ------- -------- --------
Operating margin, U.S. GAAP 40.1% 39.4% 37.2% 38.7% 38.8%
Operating margin, as adjusted 40.1% 39.5% 37.2% 39.3% 38.8%
----------------------------- ---- ---- ---- ---- ----
Reconciliation of U.S. GAAP Non-operating Income (Loss) to Non-operating Income (Loss), As Adjusted
For the Periods
(in thousands) Three Months Ended Years Ended
December 31, September 30, December 31, December 31, December 31,
2016 2016 2015 (1) 2016 2015
---- ---- ------- ---- ----
Non-operating income (loss), U.S. GAAP $1,427 $1,356 $(5,572) $7,892 $(14,805)
Deconsolidation (2) $142 $272 $632 $(781) $2,200
Results from seed investments (4) $(982) $(1,234) $4,973 $(5,934) $11,833
Non-operating income (loss), as adjusted $587 $394 $33 $1,177 $(772)
---------------------------------------- ---- ---- --- ------ -----
(1) During the three months ended
December 31, 2015, one of the
company's seed investments changed
classification from available-for-
sale to equity method. As a result,
all prior periods have been
retroactively adjusted to reflect
this investment as if it had been an
equity method investment in prior
periods.
(2) Represents amounts related to
deconsolidation of the company's
consolidated seed investments in
Company-sponsored funds.
(3) Represents amounts attributable to
the accelerated vesting of certain
restricted stock units in the first
quarter of 2016.
(4) Represents dividend income and
realized gains on the company's seed
investments classified as available-
for-sale, and the company's
proportionate share of the results
of operations of seed investments
classified as equity method
investments, including realized and
unrealized gains and losses.
Additional Disclosures
(C) 2017 Morningstar, Inc. All
Rights Reserved. The information
contained herein: (1) is
proprietary to Morningstar and/
or its content providers; (2) may
not be copied or distributed; and
(3) is not warranted to be
accurate, complete, or timely.
Neither Morningstar nor its
content providers are responsible
for any damages or losses arising
from any use of this information.
Morningstar calculates its
ratings based on a risk-adjusted
return measure that accounts for
variation in a fund's monthly
performance (including the
effects of sales charges, loads,
and redemption fees), placing
more emphasis on downward
variations and rewarding
consistent performance. The top
10% of funds in each category
receive five stars, the next
22.5% receive four stars, the
next 35% receive three stars, the
next 22.5% receive two stars and
the bottom 10% receive one star.
Based on independent rating by
Morningstar, Inc. of investment
performance of each Cohen &
Steers-sponsored open-end U.S.-
registered mutual fund for all
share classes for the overall
period as of December 31, 2016.
Overall Morningstar rating is a
weighted average based on the 3-
year, 5-year and 10-year
Morningstar rating. Each share
class is counted as a fraction of
one fund within this scale and
rated separately, which may cause
slight variations in the
distribution percentages. This is
not investment advice and may not
be construed as sales or
marketing material for any
financial product or service
sponsored or provided by Cohen &
Steers.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cohen--steers-reports-fourth-quarter-2016-diluted-eps-of-056-or-048-as-adjusted-full-year-2016-diluted-eps-of-200-or-185-as-adjusted-300393092.html
SOURCE Cohen & Steers, Inc.
