Cohen & Company Inc.(COHN) released its unaudited co nsolidated financial statements for the first quarter of 2023, revealing a net loss of $10.1 million. The financial report shows total revenues of $8.8 million for the same period, with a breakdown across various business segments. While revenue from asset management and new issue and advisory services remained relatively stable, the company witnessed a significant decline in net trading income. Below are the key highlights from the financial statements.
Net Income/Loss
The financial statements for Q1 2023 show that Cohen & Company Inc. incurred a net loss of $10.1 million during the quarter. This loss comes as a result of various factors, including fluctuations in trading income and income from equity method affiliates. The net loss attributed to Cohen & Company Inc. shareholders amounted to $2.6 million, while the non-controlling interest's impact on the loss was $7.5 million.
Revenue
Total revenues for the first quarter of 2023 amounted to $8.8 million. The revenue was generated from four main sources: net trading, asset management, new issue and advisory services, and principal transactions and other income (loss). Among these, net trading income accounted for the largest portion of revenue, amounting to $8.2 million. It is worth noting that the principal transactions and other income (loss) category contributed a negative $2.3 million to overall revenues, indicating a loss in this segment.
Financial Position
As of March 31, 2023, Cohen & Company Inc.'s total assets amounted to $745.2 million. The company's assets are primarily comprised of cash and cash equivalents, receivables from brokers, dealers, and clearing agencies, investments (trading and other), and receivables under resale agreements. The total liabilities stood at $662.9 million, which includes payables to brokers, dealers, and clearing agencies, accounts payable and other liabilities, and debt.
Despite the challenging financial results in the first quarter of 2023, the company's management remains focused on mitigating risks and exploring opportunities for growth and improved financial performance in the upcoming quarters. Investors and stakeholders are closely monitoring the situation, expecting a strategic approach to address the challenges and create value for shareholders in the long run.