Cowen Group, Inc. (NASDAQ: COWN) (“Cowen” or “Company”) today announced its operating results for the second quarter ended June 30, 2013.
2013 Second Quarter Highlights (1)
- Cowen Group, Inc. reported second quarter 2013 economic income of $1.5 million compared to an economic loss of $6.0 million in the prior year period.
- Second quarter 2013 revenue rose 22% year over year to $81.1 million.
- The broker-dealer segment reported its highest quarterly revenue since the Cowen / Ramius business combination in 2009. Second quarter 2013 revenue was $58.8 million, (2) a $16.6 million increase from the year ago period.
- Brokerage revenue of $33.3 million was its highest quarterly revenue since the second quarter 2009.
- Investment banking revenue improved to $25.6 million, the highest level since the second quarter 2007.
- Assets under management at July 1, 2013 were $9.0 billion. AUM increased by $110 million during the quarter and is up $970 million since January 1, 2013.
- Fixed non compensation expense declined 3% year over year to $23.8 million. These figures reflect the first full quarter of Dahlman Rose in second quarter 2013 results.
- The second quarter 2013 increase in variable non compensation expense reflects the growth in total revenue. Variable non compensation expense was $8.6 million, an increase of $1.4 million year over year.
- Second quarter 2013 compensation to revenue ratio was 59% compared to 63% in the prior year period.____________________________________________________________________________________________________ (1) All financial highlights are presented on an Economic Income basis. (2) Includes broker-dealer segment's allocation of Investment Income (Loss) and Other Revenue.
Peter A. Cohen, Chairman and CEO of Cowen Group said, "We reported a profitable second quarter with economic income of $1.5 million. The broker-dealer's banking and equities businesses reported their best revenue quarter in years. The changes we made in recent years are contributing to our improved results. Ramius is seeing positive momentum across a number of the capabilities on our platform with solid performance and a strong pipeline of client interest. Our fixed expenses as a percent of revenue declined year over year, even with a full quarter of Dahlman Rose in the second quarter numbers. I am encouraged to see results improving across our business units. However, we have a lot more to accomplish in the upcoming quarters in what continues to be a challenging environment."