Cowen Group, Inc. Announces 2012 First Quarter Financial Results

Cowen Group, Inc. (NASDAQ: COWN) (“Cowen” or “the Company”) today announced its operating results for the first quarter ended March 31, 2012.

2012 First Quarter Highlights

GAAP:
  • GAAP net income was $4.0 million compared to $0.1 million in the prior year period and a net loss of $(79.9) million in the fourth quarter 2011.
  • GAAP revenue was $57.5 million compared to $64.2 million in the prior year period and $49.5 million in the fourth quarter 2011.
  • Book value per share increased to $4.54 at the end of the 2012 first quarter from $4.46 at December 31, 2011.

Economic Income:
  • Economic Income was $5.9 million compared to $7.0 million in the prior year period and an Economic Loss of $(33.2) million in the fourth quarter 2011.
  • Broker-dealer segment revenue was $40.0 million compared to $41.8 million in the prior year period and $33.8 million in the fourth quarter 2011.
  • Alternative Investment segment revenue was $39.1 million compared to $38.0 million in the prior year period and $36.4 million in the fourth quarter 2011.
  • Total non-compensation expenses were $28.2 million, an 8% decrease compared to $30.8 million in the prior year period and a 22% decrease compared to $36.3 million in the fourth quarter 2011.

"We reported positive first quarter results and an economic income cash gain of over $12 million," said Peter Cohen, Chairman and Chief Executive Officer. "We continued to make progress in the first quarter, particularly at our broker-dealer. Our early 2012 performance is a result of the changes we started to implement in 2011. We increased broker-dealer segment revenues by 19% and grew hedge fund assets by 13% from the fourth quarter, and generated over $20 million in investment income on our invested capital. We also reduced non-compensation expenses by over 20% compared to the fourth quarter and achieved our run-rate 2012 expense reduction target for the first quarter. While we have more work to do, the results for the first quarter show progress."

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