Cowen Group, Inc. (NASDAQ:COWN) (“Cowen” or “Company”) today announced its operating results for the third quarter ended September 30, 2013.
2013 Third Quarter and Nine Month Highlights (1)
- Cowen Group, Inc. reported third quarter 2013 economic income of $3.7 million compared to an economic loss of $8.9 million in the prior year period. For the nine months ended September 30, 2013, economic income was $3.9 million versus an economic loss of $9.0 million for the comparable year ago period.
- Third quarter 2013 revenue rose 40% year over year to $92.1 million. Nine month 2013 revenue was $248.1 million, an increase of 17% compared to the year ago period.
- The broker-dealer segment reported another record revenue quarter since the Cowen / Ramius business combination in 2009. Third quarter 2013 revenue was $62.0 million, an $18.1 million improvement from the prior year quarter. Nine months 2013 revenue rose 29% year over year to $167.9 million. (2)
- Assets under management at October 1, 2013 were $9.3 billion. AUM increased by $234 million during the quarter and is up $1.2 billion since January 1, 2013.
- The year over year increase in non-compensation expense was primarily due to the inclusion of Dahlman Rose. For the three and nine months ended September 30, 2013, non compensation expense was $32.3 million and $95.9 million, respectively, compared to $29.9 million and $89.8 million, respectively, for the three and nine months ended September 30, 2012.
- On November 6th, Cowen's Board of Directors approved a $15 million increase in the Company's share repurchase program.__________________________________________ (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, "In what continues to be a challenging market, we are proud to report a profitable third quarter and another record revenue quarter. This is a result of the progress we have made in elevating the results in each of our operating businesses. The broker dealer benefited from a favorable capital raising environment for equities and had its best quarter for debt raising. At Ramius, we continue to raise assets, produce solid investment performance and launch new products, including the Ramius Event Driven Equity Fund, our fourth alternative mutual fund."
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