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Cowen Group, Inc. Announces 2013 Fourth Quarter And Full Year Financial Results

Stocks in this article: COWN

Cowen Group, Inc. (NASDAQ:COWN) (“Cowen” or “the Company”) today announced its operating results for the fourth quarter and full year ended December 31, 2013.

2013 Fourth Quarter and Full Year Highlights (1)

  • Economic income was $6.5 million for the full year 2013 versus an economic loss of $17.6 million in 2012. For the fourth quarter 2013, economic income was $2.7 million compared to an economic loss of $8.5 million in the prior year period.
  • Revenue rose to a new high for the full year 2013 since the Cowen / Ramius business combination in 2009. Full year 2013 revenue was $344.5 million and fourth quarter 2013 revenue was $96.4 million, a year over year increase of 19% and 25%, respectively.
  • Broker-dealer segment reported full year 2013 of $234.4 million and fourth quarter revenue of $66.4 million, an improvement over the prior year period of 33% and 46%, respectively. (2)
  • The alternative investment management segment grew assets under management by $1.4 billion in 2013. AUM as of January 1, 2014 was $9.4 billion.
  • Fixed non compensation expenses were unchanged for the full year at $95.5 million and declined by 12% year over year in the fourth quarter 2013 to $22.6 million.
  • On February 26, Cowen's Board of Directors approved a $10 million increase in the Company's share repurchase program. With this increase, the total amount available for repurchase under the program is $25 million.

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(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.

"2013 marks our first profitable year since the Cowen / Ramius business combination in 2009," said Peter A. Cohen, Chairman and Chief Executive Officer of Cowen Group. "This performance is a result of the previously discussed changes that we made across our businesses. We realized improved operating leverage throughout the year as we reported new quarterly revenue highs. The broker dealer solidified its position as a leader in equity underwritings and middle market debt financings in our core sectors. Ramius successfully grew AUM by $1.4 billion in 2013, launched 6 new products and 1 new investment capability during the year and continued to produce solid performance. Our 2013 performance gives you view of the progress at Cowen. However, we still have a lot more ground to cover in order to ensure that Cowen remains positioned to succeed in all market environments."

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