Strong Performance in Investment Banking and Markets Divisions Drives Continued Profitability
New York, NY – October 25, 2018 – Cowen Inc. (NASDAQ: COWN) (“Cowen” or “the Company”) today announced its operating results for the third quarter ended September 30, 2018.
Third Quarter Financial Highlights
- Revenue increased 24% year over year to $221.0 million compared to $178.8 million in the prior year period.
- Net income attributable to common stockholders was $13.8 million or $0.45 per diluted common share compared to $3.0 million or $0.09 per diluted common share in the prior year period.
- Economic Income (Non-GAAP)
- Revenue increased 24% year over year to $226.2 million compared to $182.6 million in the prior year period.
- Economic Income increased to $22.7 million or $0.74 per diluted share compared to Economic Income of $8.3 million or $0.26 per diluted share in the prior year period.
- Economic Operating Income, which represents Economic Income before depreciation and amortization, was $25.6 million, a 126% increase from the prior year period of $11.3 million.
- Operating Highlights
- On a GAAP and Economic Income basis, investment banking revenue increased 43% and 35% from the third quarter 2017 to $81.9 million and $77.5 million, respectively. The quarter was again led by strong performance in equity financings as well as a growing contribution from advisory and non-healthcare sectors. This was the most diverse quarter in terms of industry and product mix.
- Brokerage revenue increased 9% and 13% from the third quarter 2017 to $92.0 million and $101.7 million on a GAAP and Economic Income basis, respectively. The increase was primarily attributable to growth in the institutional brokerage and institutional services businesses.
- As of October 1, 2018, assets under management were $10.9 billion, a $40 million increase from July 1, 2018.
- Book value per share increased to $24.26 as of September 30, 2018, compared to $21.82 as of December 31, 2017. Tangible book value per share grew to $21.28 as of September 30, 2018, compared to $18.77 as of December 31, 2017.
- During the quarter, the Company repurchased 402,420 shares for $5.9 million (at an average price of $14.66) under the Company’s existing share repurchase program.
Please click here to view Cowen’s full Q3 financial results.
About Cowen Inc.
Cowen Inc. (“Cowen” or the “Company”) is a diversified financial services firm that operates through two business segments: a broker dealer and an investment management division. The company’s broker dealer division offers investment banking services, equity and credit research, sales and trading, prime brokerage, global clearing and commission management services. Cowen’s investment management segment offers actively managed alternative investment products. Cowen Inc. focuses on delivering value-added capabilities to our clients in order to help them outperform. Founded in 1918, the firm is headquartered in New York and has offices worldwide. Learn more at Cowen.com.
For further information, contact:
Stephen Lasota, Chief Financial Officer
Liolios Group, Inc.
Matt Glover, Cody Slach, Najim Mostamand, CFA