Release Date: March 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an overview of Cohen & Company's performance in 2024, particularly in the Capital Markets division? A: Lester Brafman, CEO, highlighted that Cohen & Company Capital Markets (CCM) continued to grow its market share as an adviser and agent, expanding into underwriting initial public offerings. Despite a decline in revenue compared to the third quarter of 2024, CCM generated full-year revenue of $38.9 million, nearly doubling the $21.9 million from 2023.
Q: How did the mortgage business perform in 2024 given the elevated mortgage rates? A: The company managed to grow its mortgage business, ending the year with a gestation repo book of $2.7 billion, which is more than a 30% increase from December 2023, despite the challenging environment of elevated mortgage rates and lower origination levels.
Q: What were the financial results for the fourth quarter of 2024? A: Joseph Pooler, CFO, reported a net loss attributable to Cohen & Company Inc. of $2 million for the quarter, or $1.21 per fully-diluted share. This compares to a net income of $2.2 million in the prior quarter and $4.5 million in the same quarter of the previous year.
Q: What factors contributed to the volatility in revenue from new issue and advisory services? A: Revenue from new issue and advisory services was $10 million in the fourth quarter, a decrease from previous quarters. The volatility is attributed to the limited number of engagements and the timing of transaction closings, which can cause fluctuations in revenue recognition.
Q: How did the company's investment portfolio impact financial results? A: The principal transactions revenue was negatively impacted by losses on investment assets received as consideration, with a total of $22.6 million in negative principal transactions revenue during 2024. The equity value of post-business combination companies declined, affecting the value of shares received and impacting both equity method and principal transactions line items.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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