Cohen & Company Inc. · AMEX:COHN
Cohen & — Investor Presentation (May 2010)
27 slides from Cohen &'s investor presentation, May 25, 2010
Slide 1: Building Greater Opportunities for Profitable and Sustained Growth
Exhibit 99.1 Building Greater Opportunities for Profitable and Sustained Growth May 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements.” In some cases, forward-looking statements can be identified by the use of forwa
Slide 3: Table of Contents
Table of Contents Page 1. Overview of Cohen & Company 4 2. Cohen & Company’s Businesses A. Capital Markets 11 B. Asset Management 15 3. Financial Summary 17 4. Summary 25 3
Slide 4: Overview of Cohen & Company
Section 1 Overview of Cohen & Company
Slide 5: Overview: Transactional & Management Expertise in Credit Fixed Income Sector
Overview • Founded in 1999 as small-cap financials investment bank. • Participated actively in helping banks and insurance companies issue trust preferred securities ($11.4 billion issued). • Two main operating businesses – capital markets and asset management. • Specialist in credit-related fixed i
Slide 6: Key Investment Highlights
Key Investment Highlights • Capitalizing on dislocation of current markets and focusing on serving clients and investors. • A significant market participant in secondary trading of credit-related fixed income investments. • Generating diversified revenue from institutional sales and trading, asset m
Slide 7: Key Strengths
Key Strengths Revenue Diversification • Revenue diversified by operating business line and asset class. • New issue, secondary trading, asset management, and principal investing capabilities. Deep Experience • Proven ability to attract new talent, reposition existing talent, and grow company in chal
Slide 8: Opportunities for Growth
Opportunities for Growth • Sea change in fixed income and capital markets represents dynamic opportunity for experienced, entrepreneurial players. Scale existing businesses – credit trading, global. Start up new businesses – CDs, small ticket fixed income, equity derivatives. Add new asset classes –
Slide 9: Diversified, Recurring Revenue Streams
Diversified, Recurring Revenue Streams • Diverse asset class expertise in institutional sales and trading includes: High grade corporate bonds. High yield corporate bonds and loans. Mortgage and asset backed securities. Collateralized bond and loan obligations. Commercial mortgage backed securities.
Slide 10: Compensation Philosophy for Long-Term Success
Compensation Philosophy for Long-Term Success • Compensation structure designed to: Attract and retain employees. Pay for performance. Provide ownership incentive to align interests with stockholders. • Ownership achieved primarily through Restricted Stock Units (RSUs) and continuing ownership of ex
Slide 11: Cohen & Company's Businesses: Capital Markets
Section 2A Cohen & Company’s Businesses: Capital Markets
Slide 12: A Significant Market Participant in Secondary Trading of Credit Fixed Income Investments
A Significant Market Participant in Secondary Trading of Credit Fixed Income Investments • Sales and trading professionals have grown from 6 at the beginning of 2008 to 85 currently. • Net trading revenue has increased from $0.7 million in 1Q08 to $22.8 million in 1Q10. • Notional amount of securiti
Slide 13: Using Market Rebuilding to Our Advantage
Using Market Rebuilding to Our Advantage Capitalizing on the opportunities in current markets • Hiring the best available talent and increasing intellectual capital. • Recent hires have prior experience at: Barclays Jefferies Bear Stearns JP Morgan BNP Paribas Lehman Brothers Credit Suisse Merrill L
Slide 14: Growth Opportunities in Capital Markets
Growth Opportunities in Capital Markets • Consolidation and cutbacks by competitors resulting in market share gains. • Differentiated from firms with no capital. • Obtaining additional institutional investor client base. • Increasing revenue per account. • Continuing to add new product lines. • Grow
Slide 15: Cohen & Company's Businesses: Asset Management
Section 2B Cohen & Company’s Businesses: Asset Management
Slide 16: Market Opportunity
Market Opportunity • Alternative asset management model provide recurring management fees and profit participation through incentive fees. • Deep Value alternative investment funds (established 4Q08) annualized life-to-date returns of 22.2%. • Brigadier alternative investment fund (established 2Q06)
Slide 17: Financial Summary
COHEN & COMPANY C C & O Section 3 Financial Summary
Slide 18: Statements of Operations
Statements of Operations COHEN P&L ($000s) 1Q09 2Q09 3Q09 4Q09 1Q10 • 1Q10 net trading revenue of $22.8 New issue $ 227 $ 518 $ 480 $ 591 $ 668 million, a 101% increase over prior year Asset management 9,299 7,614 6,871 7,364 6,770 quarter. Principal transactions & other (3,924) 2,620 6,311 1,950 11
Slide 19: Statements of Operations Charts
Statements of Operations Charts Net Revenue ($000s) Adjusted Operating Income (Loss) (1) ($000s) $50,000 1Q09 2Q09 3Q09 4Q09 1Q10 $41,733 $9,000 $7,692 $40,000 $6,000 $30,000 $24,569 $22,152 $3,000 $2,138 $20,446 $20,000 $16,919 $568 ($67) $0 $10,000 ($3,000) $0 1Q09 2Q09 3Q09 4Q09 1Q10 ($4,649) ($6
Slide 20: Balance Sheets
Balance Sheets COHEN BALANCE SHEET ($000s) 3/31/10 12/31/09 Key Off-Balance Sheet Assets Cash and cash equivalents $ 29,180 $ 69,692 • NOLs and NCLs (2) Receivables from: Brokers, dealers, clearing agencies 35,120 255 Approximately $48 million of NOLs Related parties 1,250 1,255 and $69 million of N
Slide 21: Peer Group Market Statistics
Peer Group Market Statistics ($ in MMs except per share) Key Comp Group COHN BPSG COWN FBCM JMP KBW OPY RODM Average Current Price $ 4.93 $ 3.38 $ 4.57 $ 4.23 $ 6.72 $ 25.14 $ 26.10 $ 2.70 Current Market Cap $ 77 $ 436 $ 341 $ 265 $ 146 $ 892 $ 348 $ 95 $ 360 Last Quarter Tangible Book $ 84 $ 226 $
Slide 22: Peer Group Market Statistics
Peer Group Market Statistics ($ in MMs except per share) Additional Comps COHN EVR GFIG GHL JEF LAZ MF PJC SF Average Current Price $ 4.93 $ 31.72 $ 5.87 $ 69.91 $ 23.35 $ 32.27 $ 7.99 $ 33.38 $ 52.69 Current Market Cap $ 77 $ 543 $ 702 $ 2,060 $ 4,010 $ 2,900 $ 971 $ 693 $ 1,630 $ 1,689 Last Quarte
Slide 23: Cautionary Note Regarding Financial Statements
Cautionary Note Regarding Financial Statements General Due to the nature of our business, our revenues and operating results may fluctuate materially from quarter to quarter. Accordingly, revenue and net income in any particular quarter may not be indicative of future results. Further, our employee
Slide 24: Non-GAAP Measures
Non-GAAP Measures Adjusted operating income (loss) and adjusted operating income (loss) per fully-diluted share Adjusted operating income (loss) is not a financial measure recognized by GAAP. Adjusted operating income (loss) represents operating income (loss), computed in accordance with GAAP, befor
Slide 25: Summary
COHEN & COMPANY C C & O Section 4 Summary
Slide 26: Cohen & Company Summary
Cohen & Company Summary • Capitalizing on reorganization of current markets and focusing on serving clients and investors. • A significant market participant in secondary trading of credit-related fixed income investments. • Growing, independent firm specializing in credit-related fixed income inves
Slide 27: Cohen & Company
COHEN & COMPANY