Cohen & Steers Reports First Quarter 2011 Results

NEW YORK, April 20, 2011 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported income attributable to common shareholders of $13.0 million, or $0.30 per share (diluted and basic), for the quarter ended March 31, 2011, compared with income attributable to common shareholders of $8.9 million, or $0.21 per share (diluted and basic), for the quarter ended March 31, 2010. Total revenue for the first quarter of 2011 was $54.8 million, an increase of 32.4% from $41.3 million for the first quarter of 2010.

Assets Under Management

Assets under management were $38.0 billion as of March 31, 2011, an increase of 10.4% from $34.5 billion at December 31, 2010 and an increase of 39.8% from $27.2 billion at March 31, 2010. The increase from December 31, 2010 was due to net inflows of $1.8 billion and market appreciation of $1.7 billion. The increase from March 31, 2010 was due to net inflows of $5.6 billion and market appreciation of $5.3 billion. Average assets under management were $36.1 billion for the quarter ended March 31, 2011, an increase of 10.0% from $32.8 billion for the quarter ended December 31, 2010 and an increase of 44.9% from $24.9 billion for the quarter ended March 31, 2010.

Assets under management for open-end mutual funds were $9.4 billion as of March 31, 2011, an increase of 10.7% from $8.5 billion at December 31, 2010 and an increase of 35.0% from $7.0 billion at March 31, 2010. The increase from December 31, 2010 was due to net inflows of $507 million and market appreciation of $399 million. The increase from March 31, 2010 was due to market appreciation of $1.4 billion and net inflows of $1.0 billion. Average assets under management for open-end mutual funds were $8.8 billion for the quarter ended March 31, 2011, an increase of 10.1% from $8.0 billion for the quarter ended December 31, 2010 and an increase of 41.3% from $6.2 billion for the quarter ended March 31, 2010.

Assets under management for closed-end mutual funds were $6.7 billion as of March 31, 2011, an increase of 5.6% from $6.4 billion at December 31, 2010 and an increase of 17.0% from $5.7 billion at March 31, 2010. The increase from December 31, 2010 was due to market appreciation of $227 million and inflows of $129 million through use of Cohen & Steers Select Preferred and Income Fund, Inc.'s ("PSF") credit facility. The increase from March 31, 2010 was due to market appreciation of $583 million and net inflows of $390 million, primarily due to the launch of PSF. Average assets under management for closed-end mutual funds were $6.6 billion for the quarter ended March 31, 2011, an increase of 7.6% from $6.1 billion for the quarter ended December 31, 2010 and an increase of 19.4% from $5.5 billion for the quarter ended March 31, 2010.

Assets under management for institutional separate accounts were $21.9 billion as of March 31, 2011, an increase of 11.8% from $19.6 billion at December 31, 2010 and an increase of 51.2% from $14.5 billion at March 31, 2010. The increase from December 31, 2010 was due to net inflows of $1.2 billion and market appreciation of $1.1 billion. The increase from March 31, 2010 was due to net inflows of $4.1 billion and market appreciation of $3.3 billion. Average assets under management for institutional separate accounts were $20.7 billion for the quarter ended March 31, 2011, an increase of 10.7% from $18.7 billion for the quarter ended December 31, 2010 and an increase of 57.3% from $13.1 billion for the quarter ended March 31, 2010.

Financial Highlights

Total revenue for the first quarter of 2011 was $54.8 million, an increase of 5.7% from $51.8 million for the fourth quarter of 2010, primarily due to higher average assets under management. Operating expenses for the first quarter of 2011 were $35.8 million, a decrease of 7.5% from $38.7 million for the fourth quarter of 2010, primarily due to decreases in distribution and service fees resulting from costs recorded in the fourth quarter of 2010 associated with the launch of PSF. After adjusting for the launch costs of approximately $4.1 million, operating expenses would have been $34.6 million for the three months ended December 31, 2010. Operating income was $18.9 million for the three months ended March 31, 2011, compared with operating income of $13.1 million for the three months ended December 31, 2010. After adjusting for the launch costs mentioned above, operating income would have been $17.2 million for the three months ended December 31, 2010. The company's operating margin increased to 34.5% for the first quarter of 2011 compared with 25.2% for the three months ended December 31, 2010. After adjusting for the launch costs mentioned above, the company's operating margin would have been 33.1% for the three months ended December 31, 2010. Non-operating income was $975,000 for the three months ended March 31, 2011, a decrease of 81.0% from $5.1 million for the three months ended December 31, 2010, primarily due to a decrease in equity in earnings from the company's seed investments and gain from available-for-sale securities investments.

Balance Sheet Information

As of March 31, 2011, cash, cash equivalents and investments were $182 million. As of March 31, 2011, stockholders' equity was $241 million and the company had no long-term or short-term debt.

Conference Call Information

Cohen & Steers will host a conference call tomorrow, April 21, 2011 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: 21520567. 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 21, 2011 and can be accessed at (800) 633-8284 (U.S.) or (402) 977-9140 (international); passcode: 21520567. Internet access to the webcast, which includes audio (listen-only), will be available on the company's Web site at www.cohenandsteers.com under "Corporate Info."  The webcast will be archived on the Web site for two weeks.

About Cohen & Steers

Cohen & Steers is a manager of equity portfolios specializing in U.S. and international real estate securities, large cap value stocks, listed infrastructure and utilities, 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 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, 2010, which is accessible on the Securities and Exchange Commission's Web site at www.sec.gov and on the company's Web site at www.cohenandsteers.com. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. The company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

SOURCE Cohen & Steers, Inc.