Core Insights - J.V.B. Financial Group, LLC has launched a new SPAC-focused equity trading platform to enhance its offerings in capital markets and SPAC advisory services [1][4] - The new trading platform aims to leverage the expertise of Cohen & Company Capital Markets, which has established itself as a leading SPAC advisor on Wall Street [2][4] - The platform will be led by experienced professionals Perry Choset and Brandon Brenner, who bring extensive backgrounds in SPAC equities and trading [3][4] Company Overview - J.V.B. Financial Group is a subsidiary of Cohen & Company Inc., specializing in capital markets and asset management services [1][5] - Cohen's Capital Markets segment includes a range of services such as fixed income sales, trading, and advisory services, with a focus on M&A and SPAC advisory [6][7] - As of December 31, 2024, Cohen managed approximately $2.3 billion in assets, primarily in fixed income assets across various classes [7]

Asset Management and Revenue - As of December 31, 2024, the company had approximately $2,325,000 in assets under management (AUM), with 42% in CDOs[320]. - The company has not completed a new securitization since 2008, leading to a decline in asset management revenue from historical highs due to CDO asset declines[331]. - A significant portion of the company's asset management revenue is derived from CDO management, which has been negatively impacted by maturities, repayments, and defaults[331]. - Asset management fees increased by $1,672, or 23%, to $9,009 for the year ended December 31, 2024, compared to $7,337 for 2023[362]. - New issue and advisory revenue increased by $35,158, or 124%, to $63,422 for the year ended December 31, 2024, compared to $28,264 for 2023[366]. - Total revenues increased by $38,594, or 87%, to $82,981 for the year ended December 31, 2023, compared to $44,387 for 2022[414]. Financial Performance - Revenues decreased by $3,383, or 4%, to $79,598 for the year ended December 31, 2024, compared to $82,981 for 2023[354]. - Net income decreased by $2,210, or 21%, to $8,189 for the year ended December 31, 2024, compared to $10,399 for 2023[353]. - Principal transactions and other income decreased by $45,696, or 278%, resulting in a total of $(29,242) for the year ended December 31, 2024[353]. - The net income attributable to the non-controlling interest decreased from $19,590 in 2023 to $8,675 in 2024, a decline of approximately 56%[407]. - The company reported a tax benefit of ($329) for the year ended December 31, 2024, compared to an expense of $5,545 in 2023, indicating a significant turnaround[401]. - The total net income attributable to the Operating LLC was $(25,063) thousand for 2023, with a significant loss attributed to wholly owned subsidiaries[467]. Expenses and Cost Management - Operating expenses increased by $11,501, or 15%, to $87,621 for the year ended December 31, 2024, compared to $76,120 for 2023[353]. - Compensation and benefits increased by $4,296, or 8%, to $56,388 for the year ended December 31, 2024, compared to $52,092 for the year ended December 31, 2023[384]. - Professional fee and other operating expenses increased by $5,125, or 55%, to $14,421 for the year ended December 31, 2024, compared to $9,296 for the year ended December 31, 2023[391]. - Business development, occupancy, and equipment expenses increased by $1,413, or 27%, to $6,617 for the year ended December 31, 2024, compared to $5,204 for the year ended December 31, 2023[388]. - Operating expenses increased by $3,770, or 5%, to $76,120 for the year ended December 31, 2023, compared to $72,350 for 2022[440]. Market Conditions and Economic Impact - The overall business environment remains unpredictable, influenced by economic conditions, market volatility, and competition[325]. - Rising interest rates have negatively impacted mortgage activity and overall transaction volumes in financial markets, potentially pushing the U.S. into recession[1]. - The U.S. Federal Reserve's actions to raise interest rates have negatively impacted the company's business, particularly during periods of elevated rates[342]. - The mortgage group's revenue is highly dependent on U.S. mortgage origination volumes, which are sensitive to interest rates and economic conditions[341]. Investments and Financial Instruments - The company’s redeemable financial instruments decreased from $6,526 in 2023 to $5,821 in 2024, a reduction of approximately 11%[395]. - The company had no redeemable financial instruments as of December 31, 2024, down from $7,868 in 2023[512]. - The CREO JV invests primarily in multi-family commercial real estate mortgage-backed loans, carrying the investment at its reported NAV[377]. - The U.S. Insurance JV invests in insurance company debt, also carried at its reported NAV[378]. - The total par amount owed by the company to the trusts is $49,614,000, while the common stock held by the company in the trusts is valued at $1,489,000[514]. Cash Flow and Liquidity - Cash flow from operating activities for 2024 was $9,475 thousand, a recovery from $(39,660) thousand in 2023[480]. - Cash and cash equivalents increased to $19,590 thousand as of December 31, 2024, up from $10,650 thousand at the end of 2023, indicating improved liquidity[481]. - The company generated cash from investing activities amounting to $16,506 thousand in 2024, compared to $38,123 thousand in 2023[480]. - The cash flow from financing activities was $(16,717) thousand in 2024, reflecting ongoing capital management efforts[480]. - The cash used in operating activities included a net cash outflow of $77,599 related to working capital fluctuations and a net cash inflow of $65,282 from trading activities[487]. Debt and Obligations - Long-term indebtedness increased to $34,904 as of December 31, 2024, compared to $29,716 in 2023[508]. - Total contractual obligations as of December 31, 2024, amount to $133,089,000[517]. - Operating lease arrangements total $22,054,000, with $2,022,000 due in less than one year[517]. - Maturity of 2024 Notes is $5,146,000, with $2,573,000 due in less than one year[517]. - Interest on junior subordinated notes totals $50,220,000, with $4,292,000 due in less than one year[517]. Future Outlook and Strategic Initiatives - The company aims to address margin compression by diversifying its fixed income trading platform and expanding product lines[340]. - The company believes it can fund current operations and meet contractual obligations through existing cash resources and credit sources[517]. - There are uncertainties in the economy that may affect the company's ability to replace existing financing or find additional financing in the future[517].

Cohen & Company Inc. (NYSE:COHN) Q4 2024 Earnings Conference Call March 10, 2025 10:00 AM ET Company Participants Lester Brafman - CEO Joe Pooler - CFO Conference Call Participants Operator Good morning, ladies and gentlemen, and welcome to Cohen & Company's Fourth Quarter 2024 Earnings Call. My name is Sherry, and I will be your operator for today. Before we begin, Cohen & Company would like to remind everyone that some of the statements the company makes during this call contain forward-looking statements ...

Cohen & Company (COHN) Q4 2024 Earnings Call March 10, 2025 04:21 PM ET Company Participants Lester Brafman - Chief Executive OfficerJoseph Pooler - Executive VP, CFO & Treasurer Operator Good morning, ladies and gentlemen, and welcome to Cohen and Company's Fourth Quarter twenty twenty four Earnings Call. My name is Sherry, and I will be your operator for today. Before we begin, Cohen and Company would like to remind everyone that some of the statements the company makes during this call contain forward lo ...

Cohen & Company (COHN) Q4 2024 Earnings Call March 10, 2025 10:00 AM ET Company Participants Lester Brafman - Chief Executive OfficerJoseph Pooler - Executive VP, CFO & Treasurer Operator Good morning, ladies and gentlemen, and welcome to Cohen and Company's Fourth Quarter twenty twenty four Earnings Call. My name is Sherry, and I will be your operator for today. Before we begin, Cohen and Company would like to remind everyone that some of the statements the company makes during this call contain forward lo ...

Financial Performance - For Q4 2024, net loss attributable to Cohen & Company Inc. was $2.0 million, or $1.21 per diluted share, compared to net income of $2.2 million, or $1.31 per diluted share in Q3 2024[6]. - Total revenues for Q4 2024 were $18.5 million, down from $31.7 million in the prior quarter and $34.5 million in the prior year quarter[6]. - The company reported a net loss of $6,875,000 for the three months ended December 31, 2024, compared to a net income of $26,881,000 for the same period in 2023[14]. - Basic earnings per share for the three months ended December 31, 2024, was $(1.20), compared to $2.99 for the same period in 2023[14]. - The company’s total operating income (loss) for the twelve months ended December 31, 2024, was $(8,023,000), compared to $6,861,000 for the same period in 2023[14]. Revenue Breakdown - Net trading revenue for Q4 2024 was $8.9 million, up $1.1 million from the prior year quarter, primarily due to higher trading revenue from the mortgage group[6]. - Asset management revenue for Q4 2024 was $2.1 million, slightly down from the prior quarter and up $0.1 million from the prior year quarter[6]. - New issue and advisory revenue for Q4 2024 was $10.1 million, down $12.4 million from the prior quarter and down $8.6 million from the prior year quarter[6]. - Full year revenue for Cohen & Company Capital Markets (CCM) was $38.9 million, nearly double the full year 2023 revenue of $21.9 million[4]. - Total revenues for the three months ended December 31, 2024, were $18,541,000, a decrease from $34,464,000 for the same period in 2023, representing a decline of 46.1%[14]. - Net trading revenue increased to $8,947,000 for the three months ended December 31, 2024, compared to $7,809,000 for the same period in 2023, reflecting a growth of 14.5%[14]. - New issue and advisory revenue decreased significantly to $10,075,000 for the three months ended December 31, 2024, down from $18,722,000 in the same period of 2023, a decline of 46.3%[14]. Expenses and Liabilities - Compensation and benefits expense decreased by $5.0 million from the prior quarter and $3.4 million from the prior year quarter, with 113 employees as of December 31, 2024[6]. - Operating expenses totaled $24,044,000 for the three months ended December 31, 2024, compared to $23,015,000 for the same period in 2023, an increase of 4.5%[14]. - Total liabilities increased to $880,866 million, up from $680,964 million[19]. Assets and Equity - Total equity as of December 31, 2024, was $90.3 million, a decrease from $91.8 million as of December 31, 2023[10]. - Total assets increased to $971,149 million as of December 31, 2023, up from $772,761 million[19]. - Cash and cash equivalents rose to $19,590 million, compared to $10,650 million in the previous period[19]. - Total stockholders' equity slightly increased to $41,728 million from $41,682 million[19]. - Receivables under resale agreements significantly increased to $668,259 million from $408,408 million[19]. - Trading securities sold, not yet purchased decreased to $36,432 million from $65,751 million[19]. Future Outlook - The company anticipates that future performance may be impacted by factors such as inflation, rising interest rates, and geopolitical situations[11]. - The company noted that its revenue and operating results may fluctuate materially from quarter to quarter, suggesting that annual results may be the most meaningful gauge for investors[12]. Adjusted Pre-Tax Income - Adjusted pre-tax income (loss) for the three months ended December 31, 2024, was $(7,705,000), compared to $15,993,000 for the same period in 2023[15]. - Adjusted pre-tax income (loss) is presented as a useful measure of performance, excluding income tax expense and including net income attributable to convertible non-controlling interest[20]. - The company emphasizes that adjusted pre-tax income (loss) should not be viewed as a substitute for net income prepared in accordance with GAAP[21]. - The company’s management uses adjusted pre-tax income (loss) to evaluate enterprise operations performance[21].

Core Viewpoint - Cohen & Company Inc. reported a net loss of $2.0 million for Q4 2024, a significant decline compared to net income in the previous quarters, indicating challenges in revenue generation and operational performance [6][14]. Financial Performance - Total revenues for Q4 2024 were $18.5 million, down from $31.7 million in Q3 2024 and $34.5 million in Q4 2023 [6][14]. - Net trading revenue was $8.9 million, stable compared to the prior quarter and up from $7.8 million in the same quarter last year [6][14]. - Asset management revenue decreased slightly to $2.1 million, while new issue and advisory revenue fell to $10.1 million, down $12.4 million from the previous quarter [6][14]. - Principal transactions and other revenue reported a loss of $2.5 million, worsening from a loss of $1.7 million in the prior quarter [6][14]. Operating Expenses - Compensation and benefits expenses decreased to $12.9 million, down $5.0 million from the prior quarter [6][14]. - Non-compensation operating expenses were $11.1 million, reflecting an increase from $6.6 million in the previous quarter [6][14]. Income and Earnings - The company reported an operating loss of $5.5 million for Q4 2024, compared to an operating income of $7.2 million in Q3 2024 [6][14]. - Net income attributable to Cohen & Company Inc. was a loss of $1.95 million, or $1.21 per diluted share, contrasting with net income of $2.15 million, or $1.31 per diluted share in Q3 2024 [6][14]. - Adjusted pre-tax loss was $7.7 million for Q4 2024, compared to adjusted pre-tax income of $7.7 million in the prior quarter [6][14]. Business Segments - Cohen & Company Capital Markets (CCM) generated full-year revenue of $38.9 million, nearly double the $21.9 million from 2023, despite a decline in Q4 revenue [3][6]. - The mortgage business grew, ending the year with a gestation repo book of $2.7 billion, up over 30% from December 2023 [3][6]. Equity and Dividends - Total equity as of December 31, 2024, was $90.3 million, a decrease from $91.8 million a year earlier [6][14]. - The Board of Directors declared a quarterly dividend of $0.25 per share, payable on April 9, 2025 [6][14].

Core Insights - Cohen & Company Inc. reported a net loss of $2.0 million, or $1.21 per diluted share, for Q4 2024, a decline from a net income of $2.2 million, or $1.31 per diluted share, in Q3 2024 and $4.5 million, or $2.97 per diluted share, in Q4 2023 [6][11] - The company declared a quarterly dividend of $0.25 per share, payable on April 9, 2025, to stockholders of record as of March 26, 2025 [11] - Total revenues for Q4 2024 were $18.5 million, down from $31.7 million in the previous quarter and $34.5 million in the same quarter last year [6][11] Financial Performance - Net trading revenue for Q4 2024 was $8.9 million, comparable to the previous quarter and up from $7.8 million in Q4 2023, primarily due to higher trading revenue from the mortgage group [6][11] - Asset management revenue was $2.1 million for Q4 2024, slightly down from the previous quarter but up from $1.9 million in Q4 2023 [6][11] - New issue and advisory revenue decreased to $10.1 million in Q4 2024, down from $22.5 million in Q3 2024 and $18.7 million in Q4 2023 [6][11] Operating Expenses - Compensation and benefits expense decreased to $12.9 million in Q4 2024, down from $17.9 million in Q3 2024 and $16.3 million in Q4 2023 [6][11] - Non-compensation operating expenses were $11.1 million in Q4 2024, up from $6.6 million in Q3 2024 and $6.7 million in Q4 2023 [6][11] - Interest expense for Q4 2024 was $1.5 million, including $1.2 million on trust preferred securities debt [6][11] Business Segments - Cohen & Company Capital Markets (CCM) generated full-year revenue of $38.9 million in 2024, nearly double the $21.9 million in 2023, despite a decline in Q4 revenue compared to Q3 2024 [3] - The mortgage business grew, ending 2024 with a gestation repo book of $2.7 billion, an increase of over 30% from December 2023 [3] - The company managed approximately $2.3 billion in assets as of December 31, 2024, primarily in fixed income assets [8]

Core Viewpoint - Cohen & Company Inc. is set to release its financial results for Q4 and the full year 2024 on March 10, 2025, followed by a conference call to discuss these results [1]. Company Overview - Cohen & Company is a financial services firm that offers a range of capital markets and asset management services, operating through segments such as Capital Markets, Asset Management, and Principal Investing [3]. - The Capital Markets segment includes services like fixed income sales, trading, underwriting, and advisory services, primarily through subsidiaries in the U.S. and Europe [3]. - As of December 31, 2024, the company managed approximately $2.3 billion in assets, focusing on fixed income assets across various classes, including U.S. and European securities and commercial real estate loans [3]. Conference Call Details - The conference call will be accessible via webcast on the company's homepage, with dial-in options for those preferring operator assistance [2]. - A replay of the conference call will be available for three days post-event, allowing interested parties to catch up on the discussion [2].

Financial Data and Key Metrics Changes - The net income attributable to Cohen & Company, Inc. was $2.2 million for Q3 2024, translating to $1.31 per fully diluted share, compared to a net loss of $2.3 million or $1.47 per share in the prior quarter and a net loss of $400,000 or $0.28 per share in the same quarter last year [5] - Adjusted pretax income was $7.7 million for the quarter, a significant improvement from an adjusted pretax loss of $8.6 million in the prior quarter and an adjusted pretax loss of $8.4 million in the prior year quarter [5] - The company's performance at the adjusted pretax line improved by $26.5 million year-to-date versus 2023 [4] Business Line Data and Key Metrics Changes - Cohen & Company Capital Markets (CCM) generated $21.4 million in advisory revenue, acting as lead bookrunner on one SPAC IPO, with a robust pipeline expected to continue through the end of the year [4] - New issue and advisory revenue reached $22.5 million in Q3, an increase of $16 million from Q2 and $15.2 million from the year-ago quarter [5] - Net trading revenue was $8.8 million, comparable to Q2 and up $1.3 million from Q3 2023, driven by higher trading revenue from various groups [7] - Asset management revenue totaled $2.1 million, stable compared to the prior quarter and up $400,000 from the prior year quarter [7] - Principal transactions and other revenue was negative $1.7 million, primarily due to mark-to-market adjustments on principal investments related to SPACs [7] Market Data and Key Metrics Changes - The equity value of post-business combination SPACs has continued to decline, negatively impacting the value of founder shares received [7] - The company’s total equity at the end of the quarter was $100.6 million, up from $91.8 million at the end of the previous year [9] Company Strategy and Development Direction - The company remains focused on enhancing long-term sustained value for stockholders, including the continued payment of quarterly dividends [4] - The Board will evaluate the dividend policy each quarter, with future decisions potentially impacted by quarterly operating results and capital needs [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future earnings potential despite ongoing unfavorable mark-to-market adjustments on the principal investment portfolio [4] - The company anticipates continued volatility in its principal portfolio and operating results due to market conditions [7] Other Important Information - Compensation and benefits expense for the quarter was $17.9 million, up from prior quarters due to fluctuations in revenue and related variable incentive compensation [8] - The number of employees at the end of the quarter was 113, down from 121 in the prior quarter [8] Q&A Session Summary - No specific questions or answers were recorded during the Q&A session, as the call concluded shortly after the management's remarks [10][11]