COWEN INC.

CIK:0001466538|SEC Filings

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues
Investment banking	$ 494,842	$ 1,067,162	$ 769,486
Brokerage	592,292	585,162	524,361
Securities principal transactions, net	112,829	122,110	124,667
Portfolio fund principal transactions, net	(4,442)	338	20,434
Carried interest allocations	(31,555)	5,059	59,250
Total investment income (loss)	76,832	127,507	204,351
Management fees	66,670	72,287	47,515
Incentive income	646	2,732	592
Interest and dividends	312,134	219,292	187,459
Insurance and reinsurance premiums	36,522	39,631	30,147
Other revenues	7,010	5,211	10,503
Consolidated Funds
Principal transactions, net	(49,234)	(6,194)	(24,338)
Interest and dividends	0	9	5,218
Other revenues	9	0	632
Total revenues	1,537,723	2,112,799	1,755,926
Interest and dividends expense	259,126	211,387	187,725
Total net revenues	1,278,597	1,901,412	1,568,201
Expenses
Employee compensation and benefits	771,386	1,046,371	860,531
Brokerage and trade execution costs	162,598	153,831	139,034
Underwriting expenses	4,914	24,978	22,565
Professional, advisory and other fees	80,564	80,849	59,990
Service fees	29,942	25,768	25,378
Communications	38,041	37,499	32,593
Occupancy and equipment	41,669	40,692	36,559
Depreciation and amortization	27,725	19,004	22,677
Client services and business development	39,333	29,607	20,526
Insurance and reinsurance claims, commissions and amortization of deferred acquisition costs	(12,260)	33,938	33,905
Change in fair value of contingent consideration	(13,560)	15,119	8,492
Other expenses	40,969	21,907	24,703
Consolidated Funds
Interest and dividends	0	0	2,064
Professional, advisory and other fees	121	273	2,087
Brokerage and trade execution costs	0	0	37
Other expenses	127	357	1,221
Total expenses	1,211,569	1,530,193	1,292,362
Other income (loss)
Net gains (losses) on other investments	9,613	35,494	18,879
Bargain purchase gain, net of tax	0	3,855	0
Gain/(loss) on debt extinguishment	0	(4,538)	2,719
Total other income (loss)	9,613	34,811	21,598
Income (loss) before income taxes	76,641	406,030	297,437
Income tax expense (benefit)	10,786	102,039	90,373
Net income (loss)	65,855	303,991	207,064
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	(10,603)	8,380	(9,299)
Net income (loss) attributable to Cowen Inc.	76,458	295,611	216,363
Preferred stock dividends	6,792	6,792	6,792
Net income (loss) attributable to Cowen Inc. common stockholders	$ 69,666	$ 288,819	$ 209,571
Weighted average common shares outstanding:
Basic (in shares)	28,183	27,721	27,790
Diluted (in shares)	31,544	32,628	29,519
Earnings (loss) per share:
Earnings Per Share, Basic (in dollars per share)	$ 2.47	$ 10.42	$ 7.54
Earnings Per Share, Diluted (in dollars per share)	$ 2.21	$ 8.85	$ 7.10

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income (loss)	$ 65,855,000	$ 303,991,000	$ 207,064,000
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Bargain purchase gain, net of tax	0	(3,855,000)	0
Depreciation and amortization	27,725,000	19,004,000	22,677,000
Amortization of debt issuance costs	2,473,000	2,563,000	1,512,000
Amortization of debt discount (premium)	309,000	6,727,000	4,490,000
Noncash lease expense	1,429,000	734,000	(561,000)
Asset Impairment Charges	0	0	2,425,000
(Gain) / loss on extinguishment of debt	0	3,890,000	(2,719,000)
Share-based awards	60,272,000	65,718,000	48,222,000
Change in deferred taxes	(29,045,000)	(14,095,000)	70,136,000
Net loss (gain) on disposal of fixed assets	216,000	0	0
Contingent liability adjustment	0	(614,000)	0
Purchases of securities owned, at fair value	(1,202,243,000)	(1,136,928,000)	(1,682,598,000)
Proceeds from sales of securities owned, at fair value	999,934,000	1,007,261,000	1,793,934,000
Proceeds from sales of securities sold, not yet purchased, at fair value	6,621,546,000	257,142,000	821,829,000
Payments to cover securities sold, not yet purchased, at fair value	(6,240,064,000)	(262,362,000)	(850,608,000)
Proceeds from sales of other investments	28,894,000	27,477,000	22,453,000
Investment income (loss) principal transactions, net	(157,798,000)	(66,219,000)	(161,699,000)
Consolidated Funds
Purchases of securities owned, at fair value	0	(4,000,000)	(1,912,137,000)
Proceeds from sales of securities owned, at fair value	0	13,748,000	1,793,528,000
Payments to Acquire Other Investments Operating Activities, Consolidated Funds	0	0	(2,090,000)
Proceeds from other investments	0	14,130,000	6,734,000
Investment income (loss) principal transactions, net	49,235,000	5,990,000	21,597,000
(Increase) decrease in operating assets:
Securities owned, at fair value, held at broker-dealer	450,760,000	(496,443,000)	(335,510,000)
Receivable on derivative contracts, at fair value	(208,556,000)	(234,653,000)	11,394,000
Securities borrowed	406,547,000	203,584,000	(1,153,746,000)
Deposits with clearing organizations, brokers and banks	23,925,000	(6,905,000)	(13,197,000)
Receivable from brokers, dealers and clearing organizations	(250,478,000)	115,397,000	(1,048,049,000)
Receivable from customers, net of allowance	117,747,000	(55,455,000)	1,684,000
Fees receivable, net of allowance	32,592,000	16,919,000	(33,991,000)
Insurance and reinsurance assets	7,717,000	(9,465,000)	(18,498,000)
Due from related parties	9,156,000	(10,088,000)	5,498,000
Other assets	(30,125,000)	(7,273,000)	82,124,000
Consolidated Funds
Receivable on derivative contracts, at fair value	0	(2,917,000)	(19,710,000)
Increase (Decrease) in Receivable from Broker-Dealers and Clearing Organizations, Consolidated Funds	0	0	(961,000)
Other assets	0	13,000	564,000
Increase (decrease) in operating liabilities:
Securities sold, not yet purchased, at fair value, held at broker dealer	(503,565,000)	473,516,000	286,105,000
Securities sold under agreement to repurchase	69,661,000	58,433,000	(18,208,000)
Payable for derivative contracts, at fair value	9,502,000	(15,997,000)	15,399,000
Securities loaned	(386,734,000)	(889,842,000)	874,548,000
Payable to brokers, dealers and clearing organizations	197,356,000	171,410,000	144,125,000
Payable to customers	230,802,000	752,286,000	1,250,102,000
Commission management payable	12,863,000	(13,997,000)	45,367,000
Insurance and reinsurance liabilities	(51,147,000)	4,041,000	63,856,000
Compensation payable	(81,185,000)	29,833,000	134,522,000
Fees payable	9,579,000	(27,350,000)	22,293,000
Due to related parties	(43,000)	(51,000)	254,000
Accounts payable, accrued expenses and other liabilities	(1,714,000)	11,666,000	(7,977,000)
Consolidated Funds
Contributions received in advance	0	0	450,000
Payable to brokers	0	0	8,560,000
Payable for derivative contracts, at fair value	0	0	11,967,000
Due To Related Parties, Consolidated Funds	(23,000)	16,000	(386,000)
Accounts payable, accrued expenses and other liabilities	(63,000)	(353,000)	436,000
Net Cash Provided by (Used in) Operating Activities	171,594,000	306,818,000	513,013,000
Cash flows from investing activities:
Securities purchased under agreements to resell	(121,718,000)	191,000	(191,000)
Purchases of other investments	(63,875,000)	(98,375,000)	(48,634,000)
Purchase of business and/or asset acquisition	187,613,000	(63,246,000)	(5,647,000)
Cash at deconsolidated entity	0	(5,620,000)	(22,382,000)
Proceeds from sales of other investments	64,017,000	99,142,000	44,371,000
Purchase of fixed assets and intangibles	(12,537,000)	(11,819,000)	(10,721,000)
Proceeds from Sale of Property, Plant, and Equipment	0	4,183,000	0
Net Cash Provided by (Used in) Investing Activities	175,218,000	(75,735,000)	(43,013,000)
Cash flows from financing activities:
Repayments on convertible debt	0	(88,119,000)	(69,842,000)
Deferred debt issuance cost	(72,000)	(9,312,000)	(1,700,000)
Borrowings on notes and other debt	4,175,000	450,286,000	159,821,000
Repayments on notes and other debt	(10,095,000)	(206,433,000)	(121,472,000)
Purchase of treasury stock	(31,078,000)	(159,822,000)	(47,314,000)
Cash dividends paid	(15,152,000)	(11,373,000)	(5,710,000)
Preferred stock dividends paid	(6,792,000)	(6,792,000)	(6,792,000)
Contingent liability payment	(10,076,000)	(10,698,000)	(5,653,000)
Capital contributions by non-controlling interests in operating entities	24,311,000	36,539,000	9,730,000
Capital distributions to non-controlling interests in operating entities	(10,626,000)	(7,601,000)	(5,605,000)
Consolidated Funds
Capital contributions by non-controlling interests in Consolidated Funds	0	19,017,000	375,716,000
Capital distributions to non-controlling interests in Consolidated Funds	0	(21,411,000)	(255,597,000)
Net cash provided by / (used in) financing activities	(55,405,000)	(15,719,000)	25,582,000
Change in cash and cash equivalents	291,407,000	215,364,000	495,582,000
Total cash beginning of period	1,156,834,000	941,470,000	445,888,000
Cash and cash equivalents	1,139,652,000	914,343,000	645,169,000
Cash collateral pledged	122,687,000	47,494,000	110,743,000
Segregated Cash	185,872,000	194,701,000	185,141,000
Cash and cash equivalents, Consolidated Funds	30,000	296,000	417,000
Total cash at end of period	1,448,241,000	1,156,834,000	941,470,000
Supplemental information
Cash paid during the year for interest	187,628,000	214,909,000	153,653,000
Cash paid during the year for taxes	50,988,000	119,050,000	4,783,000
Purchase of treasury stock, at cost, through net settlement	36,082,000	40,392,000	15,147,000
Preferred stock dividends declared	6,792,000	6,792,000	6,792,000
Cash dividends declared	16,253,000	12,738,000	6,851
Net assets (liabilities) acquired upon acquisition (net of cash)	(187,613,000)	23,128,000	9,865,000
Increase in noncontrolling interest due to consolidation of entity	0	0	48,596,000
Net decrease in non-controlling interests in Consolidated Fund due to deconsolidation of Consolidated Fund	0	74,813,000	450,600,000
Common stock issuance for purchase of investment	0	2,500,000	0
Common stock issuance upon close of acquisition	$ 1,881,000	$ 23,060,000	$ 926,000

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 1,139,652	$ 914,343
Cash collateral pledged	122,687	47,494
Segregated Cash	185,872	194,701
Securities owned, at fair value ($1,766,033 and $1,764,853 were pledged to various parties)	2,424,194	2,660,742
Securities Purchased under Agreements to Resell	121,718	0
Receivable on derivative contracts, at fair value	494,691	286,135
Securities borrowed	1,298,056	1,704,603
Other investments ($132,285 and $137,986 at fair value, respectively)	225,183	274,111
Deposits with clearing organizations, brokers and banks	87,932	111,857
Receivable from brokers, dealers and clearing organizations, net of allowance of $62 and $636, respectively	1,864,825	1,614,347
Receivable from customers, net of allowance of $605 and $687, respectively	41,671	159,418
Fees receivable, net of allowance of $2,086 and $886, respectively	113,217	145,809
Insurance and reinsurance assets	133,786	30,073
Due from related parties	22,293	31,449
Fixed assets, net of accumulated depreciation and amortization of $52,816 and $50,017, respectively	23,407	25,976
Operating lease right-of-use assets	78,565	93,655
Goodwill	234,005	234,005
Intangible assets, net of accumulated amortization of $38,926 and $33,219, respectively	31,337	44,167
Deferred tax asset, net	50,810	21,765
Other assets, net of allowance of $1,583 and $0 respectively	84,963	54,755
Consolidated Funds
Cash and cash equivalents, Consolidated Funds	30	296
Other Investments, Consolidated Funds	49,832	99,067
Other assets, Consolidated Funds	48	46
Total Assets	8,828,774	8,748,814
Liabilities
Securities sold, not yet purchased, at fair value	913,574	1,201,448
Securities Sold under Agreements to Repurchase	133,130	63,469
Payable for derivative contracts, at fair value	69,665	60,163
Securities Loaned	1,199,838	1,586,572
Payables to brokers, dealers and clearing organizations	783,909	586,553
Payable to customers	2,663,414	2,432,612
Commission management payable	115,853	102,990
Insurance and reinsurance liabilities	317,547	71,269
Compensation payable	398,477	443,580
Operating lease liabilities	85,222	98,883
Notes payable and other debt	620,161	623,371
Fees payable	26,062	16,483
Accounts payable, accrued expenses and other liabilities	153,915	164,819
Consolidated Funds
Due to related parties	0	23
Accounts payable, accrued expenses and other liabilities	162	225
Total Liabilities	7,480,929	7,452,460
Commitments and Contingencies
Stockholders' equity
Additional paid-in capital	1,162,714	1,100,667
Retained earnings	515,395	461,982
Accumulated other comprehensive income (loss)	1	(2)
Treasury Stock, Value	(614,300)	(547,100)
Cowen Inc. Stockholders' Equity	1,064,172	1,015,869
Nonredeemable non-controlling interests	162,923	159,735
Total Permanent Equity	1,227,095	1,175,604
Total Liabilities, Redeemable Preferred Stock and Permanent Equity	8,828,774	8,748,814
Convertible Preferred Stock
Consolidated Funds
Redeemable Series A Convertible Preferred stock, par value $0.01 per share: 10,000,000 shares authorized, 120,750 shares issued and outstanding as of December 31, 2022 (aggregate liquidation preference of $120,750) and 10,000,000 shares authorized, 120,750 shares issued and outstanding as of December 31, 2021 (aggregate liquidation preference of $120,750)	120,750	120,750
Common Stock Class A
Stockholders' equity
Common stock	334	334
Treasury Stock, Value	(614,272)	(547,112)
Common Stock Class B
Stockholders' equity
Common stock	$ 0	$ 0