Cohen & Company Inc.

Q4 2022 Earnings Conference Call


spk_0: good morning ladies and gentlemen and welcome to cohen and companies fourth quarter of two thousand and twenty two earnings call my name's christine and i'll be or operator for today before we begin cohen and company would like to remind everyone that some of the statements the company make during the call may contain forward looking statements under applicable spirit security flaws the statements may involve risks and uncertainties that could cause the company's actual results to differ materially from the results discussed in such forward looking statements the forward looking statements made during the call or made only as of today a big call and the company undertake no obligation to update such statements to reflect subsequent events or circumstances conan company advise you to read a cautionary note regarding forward looking statements in it's earning relief in in his most recent annual port on for ten case filed with the fcc i would now it's during a call over to mr left or brothman chief executive officer of cohen and company
spk_1: and thank you everyone for joining us work or quarter two thousand or two are in school look on the crows were fearful today's market conditions in particular report was a result in a quarter or took away from negative mark to market adjustments on our principal burton portfolio getting segment accounted for should we all arkansas the adjusted a watch recorder and fruitful year this county morgue backdrop or conan properly capital markets investment banking continues to grow marketer as an advisor and asia with multiple recently announced leadership engagements focus on our strategic objectives and we are confident the cat investments will translate into higher revenues in the future especially from record company couple marketing where can i do enhancing stockholder value and work or we can to to pay or quarterly dividend now turn to court order joke iraq to the worst financial highlights in more detail
spk_2: thank you laughter will start with or statement of operations or net loss attributable to come on complete aig was three million for the quarter or two dollars and ten cents per fully diluted share compared to net loss of nine hundred thousand for the prior quarter or sixty four cents per fully diluted share an income of four point two million for the prior year quarter or two dollars and forty three cents per share are just a pre tax loss was six point one million for the quarter compared to adjust a pretax income of two point two million for the prior quarter and adjusted pretax income of six point four million for the prior year quarter note that adjusted pretax income and law suit not a measure recognized under us generally accepted accounting principles see disclosures calculations and reconciliations surrounding adjust pretax income and loss in our earnings release fourth quarter two thousand and twenty two principal transactions and other revenue was negative three point two million the negative principal transactions and other revenue was primarily due to mark to market adjustments are principal investments related to our involvement in this back market which has route resulted in
spk_1: increased holdings of public equity positions in post business combination companies
spk_2: principal transactions revenue includes all gains and losses and income earned on our twenty eight million dollar investment portfolio classified as other investments at fair value on our balance sheet that treating revenue came in at nine point six million in the fourth quarter up one point seven million from the third quarter and down five point six million from the fourth quarter of twenty one the increase from the prior quarter was due primarily to hire trading revenue from our mortgage a municipal bond groups
spk_1: while the decrease from the prior year quarter was due primarily to lower trading revenue from our mortgage and corporate groups new as you an advisory revenue was four point two million in the fourth quarter a decrease of nine million from the third quarter and thirteen million from the year ago quarter during the fourth quarter our investment banking
spk_2: group and company capital markets generated two point nine million in revenue the europe insurance origination team generated one point two million
spk_1: and the commercial real estate origination team generated one hundred thousand
spk_2: our asset management revenue totaled one point eight million in the quarter which was down one point seven million from the prior quarter and three point four million for the prior year quarter the decrease from the prior quarter was due primarily to the successful option of going to let's go cd oh in september of two thousand and twenty two and the reason pick one point six million a subordinate management fees in arrears that were recorded in that quarter the decrease in the prior quarter was due primarily to an incentive allocation earned by the manager of barseback funds in the prior year quarter compensation and benefits expense for the fourth quarter of twenty two with nine million which was down from both prior quarters primarily due to fluctuations in revenue and the related variable in set of compensation the number of company employees was one hundred and twenty one and of december thirty one of twenty two compared to one hundred and twenty two at the end of september thirty twenty two and hundred and eighteen at the end of the prior year
spk_1: net interest expense for the fourth quarter twenty two was one point two million including one point one million on our to trust preferred debt instruments or hundred thirteen thousand on our senior notes
spk_2: forty six thousand on our credit line all partially offset by a reduction of eighty nine thousand related to are redeemable financial instrument last from equity method affiliates during the quarter totaled six point four million which includes a lot of four point eight million related to the liquidation of or third sponsored back into acquisition court three that four point eight million dollar charges offset by a four point two million dollar credit recorded in the net income loss attributable to the non convertible not controlling interest line idol during the fourth quarter income tax expense was one point three million compared to one point eight million and prior quarter and income tax benefit of four point one million and prior year quarter we will continue to evaluate our operations on a quarterly basis and may make adjustments to our valuation allowed to apply to go and start net operating loss and that capital lot tax assets going forward future adjustments could be material and could result additional tax benefit or additional tax six months in terms of our balance sheet as of december thirty one twenty two total equity was ninety four million compared to one hundred and fifty one point four million at the end of the prior year the non convertible nine controlling interest component of total equity was seventeen thousand that the end of twenty two and thirty one point nine million at the end of twenty one that the total equity excluding the non convertible non controlling interest component was ninety four four million at the end of twenty two or twenty five point six million dollar decrease from one hundred ninety point six million at the end of twenty one a quarter and consolidated corporate indebtedness was carried a twenty nine million and are redeemable financial instruments were carried at some point nine million as left unmentioned we have declared a quarterly dividend of twenty five cents per share pebble on april fifth of two thousand and twenty three the stockholders a record as of march twenty second of twenty three the border directors will continue to evaluate the dominant power to each quarter and future decisions rick harding dividends may be impacted by quarterly operating results and the company's capital needs with that i will turn it back to leicester for closing remarks
spk_1: i thank you any all point better question to joe cooler had two one five seven or one eight nine by to will be email to and better relations at current company that come to contact information can also be found at the bottom of a earnings release after you can open the call lines were questions and thank everyone who joining us today
spk_3: thank you we will now be conducting a question and answer session
spk_0: and he would like asking question please press dar one on your telephone t palm and confirmation tom indicator london question que you may prostitute he would like to remove your questions and the queue for better think you think speaker equipment it may be necessary to pick up your hands happy for president jockeys when moment please while the poll for question as a reminder and he would like asking a question press star one on your telephone keep on mr bronfman it appears we have no phone questions at the time
spk_1: or it
spk_0: we want and we look forward to speaking to the next quarter

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