Cohen & Co Inc (COHN) Q2 2024 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus News
4 min read

In This Article:

  • Advisory Revenues: $6.4 million from Cohen & Company Capital Markets (CCM).

  • Net Loss: $2.3 million for the quarter or $1.47 per fully diluted share.

  • Adjusted Pretax Loss: $8.6 million for the quarter.

  • New Issue and Advisory Revenue: $6.5 million, a decrease of $17.9 million from the first quarter.

  • Net Trading Revenue: $8.8 million, down $1.1 million from the first quarter.

  • Asset Management Revenue: $2.1 million, down $600,000 from the prior quarter.

  • Principal Transactions and Other Revenue: Negative $6.6 million due to mark-to-market adjustments.

  • Compensation and Benefits Expense: $10.7 million for the second quarter.

  • Net Interest Expense: $1.4 million for the quarter.

  • Total Equity: $95.6 million at the end of the quarter.

  • Consolidated Indebtedness: $29.7 million at the end of the quarter.

  • Quarterly Dividend: $0.25 per share declared, payable on September 5, 2024.

Release Date: August 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cohen & Co Inc (COHN) generated $6.4 million in advisory revenues and acted as lead book runner for two SPAC IPOs, showcasing strong performance in its investment banking operations.

  • The company has grown its Cohen & Co Inc Capital Markets (CCM) team to 24 professionals and plans to continue expanding, indicating a commitment to growth and talent acquisition.

  • Cohen & Co Inc (COHN) improved its adjusted pretax loss by $10.4 million year-to-date compared to 2023, reflecting better financial management.

  • The company remains confident in its future earnings potential and is focused on enhancing long-term value for stockholders, including maintaining its quarterly dividend.

  • Net trading revenue increased by $1.4 million compared to the second quarter of 2023, indicating positive momentum in trading activities.

Negative Points

  • Cohen & Co Inc (COHN) reported a net loss of $2.3 million for the quarter, a significant decline from the net income of $2 million in the prior quarter.

  • The company's adjusted pretax loss was $8.6 million for the quarter, a reversal from the adjusted pretax income of $7.7 million in the previous quarter.

  • New issue and advisory revenue decreased by $17.9 million from the first quarter, highlighting volatility and dependency on a limited number of engagements.

  • Principal transactions and other revenue were negative $6.6 million, primarily due to unfavorable mark-to-market adjustments on principal investments related to SPACs.

  • Equity value post-business combination SPACs continued to decline, negatively impacting the value of founder shares and investment banking considerations received.

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