Cohen & Company Inc. (NYSE MKT:COHN) Q4 2018 Earnings Conference Call Transcript

Mar 06, 2019 • 10:00 am ET

Previous

Cohen & Company Inc. (NYSE MKT:COHN) Q4 2018 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to Cohen & Company's Fourth Quarter and Full-Year 2018 Earnings Call. My name is Laurie, and I'll be your operator for today.

Before we begin, Cohen & Company would like to remind everyone that some of the statements the Company makes during this call may contain forward-looking statements under applicable securities laws. These 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 this call are made only as of the date of this call and the Company undertakes no obligation to update such statements to reflect subsequent events or circumstances. Cohen & Company advises you to read the cautionary note regarding forward-looking statements in its earnings release and in its most recent Annual Report on Form 10-K filed with the SEC.

I would now like to turn the call over to Mr. Lester Brafman, Chief Executive Officer of Cohen & Company.

Executive
Lester Brafman

Thank you, Laurie, and thank you everybody for joining us for our fourth quarter 2018 earnings call. With me on the call is Joe Pooler, our CFO.

Although disappointed with the financial results for the quarter, we continue to make good progress on executing our strategic priorities. This includes the GCF repo business, the US insurance asset management, and residential transition loan businesses. To that end, during the quarter we increased the size of our GCF repo book by over $600 million and earned $2.1 million of new issue revenue from our US insurance asset origination. These businesses will help us diversify our Company and grow revenue across variety of business segments. We remain committed to enhancing stockholder value, and in the fourth quarter we continued to pay our quarterly dividend and repurchase shares.

Now I will turn the call over to Joe to walk through this quarter's financial highlights in more detail.

Executive
Joseph Pooler

Thank you, Lester. I will begin with our statement of operations. Our operating income was $2.3 million for the quarter, compared to $356,000 for the prior quarter and $2.1 million for the prior year quarter. Our income before income taxes was $6,000 for the current quarter, compared to a loss of $1.8 million for the prior quarter, and income of $251,000 for the prior year quarter. And the net loss attributable to Cohen & Company was $418,000 or $0.37 per diluted share for the current quarter, compared to a net loss of $651,000 or $0.57 per share for the prior quarter and net income of $1.5 million or $0.90 per diluted share for the prior year quarter.

Net trading revenue came in at $9.1 million in the fourth quarter, up $2.3 million from the third quarter and up $2.4 million from the fourth quarter of 2017. Our asset management revenue totaled $4.7 million, up $1.9 million from the prior quarter and up $3 million from the year ago quarter. The fourth quarter of 2018 included $3 million of subordinated management