Release Date: August 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an overview of Cohen & Company Capital Markets' (CCM) performance and future outlook? A: Lester Brafman, CEO, stated that CCM generated $6.4 million in advisory revenues and acted as lead book runner for two SPAC IPOs. The team has grown to 24 professionals, and there are plans to continue adding talent. The pipeline looks promising, and consistent production is expected through the end of the year.
Q: How did the unfavorable mark-to-market adjustments impact the company's financial results? A: Joseph Pooler, CFO, explained that the second quarter results were negatively impacted by ongoing unfavorable mark-to-market adjustments on the principal investment portfolio, particularly related to SPAC market involvement. This led to a negative $6.6 million in principal transactions and other revenue.
Q: What were the key financial metrics for the second quarter? A: The net loss attributable to Cohen & Company Inc. was $2.3 million, or $1.47 per fully diluted share. The adjusted pretax loss was $8.6 million. New issue and advisory revenue was $6.5 million, and net trading revenue was $8.8 million. Asset management revenue totaled $2.1 million.
Q: How has the company's equity and debt position changed over the quarter? A: Total equity at the end of the quarter was $95.6 million, with non-convertible non-controlling interest at $17.1 million. Total enterprise equity excluding non-convertible non-controlling interest was $78.5 million. Consolidated indebtedness was $29.7 million, and the redeemable financial instrument was $7.9 million.
Q: What is the company's dividend policy moving forward? A: A quarterly dividend of $0.25 per share has been declared, payable on September 5, 2024. The Board will continue to evaluate the dividend policy each quarter, considering quarterly operating results and the company's capital needs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.