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]
en & pany (COHN) - 2024 Q3 - Earnings Call Transcript