Cowen (COWN) 27 Oct 202020 Q3 Earnings call transcript

Good morning. Thank you for joining us to discuss Cowen’s Results for the Third Quarter of 2020. By now, you should have received a copy of the earnings release, which can be accessed at investor.cowen.com.

Before we begin, the Company has asked me to remind you that some of the comments made on today’s call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and uncertainties described in the Company’s earnings release and other filings with the SEC. to information obligation call. on no has update presented the today’s Cowen information on will Company which useful speakers call, believes investors. certain provide Also our measures, reference today’s non-GAAP financial will for the to Reconciliation in presented release. GAAP of earnings those is with reconciliation today’s the consistent as Company’s measures

Now, like the to call Jeffrey to Mr. I Cowen’s Officer. Chair would Solomon, and turn over Chief Executive

our call. joining and Thank to Cowen's on earnings Good me XXXX and Solomon morning welcome is Steve This operator. CFO, Jeff you, quarter is our Lasota. call today third

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Thanks, Jeff.

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explanation these our the measures, non-GAAP for economic and our as economic to income transparency, three an reconciliation income. and definition to earnings release to and we turning made adjustments income. financial Now quarterly To we as showing which Please consult operating as release quarterly this more the provide well the earnings refer company categories how filings about of a find provide GAAP to how useful. of now economic our uses investors arrive this at measure and non-GAAP measure a terms,

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The third quarter statement. income

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$XX.X $XX.X the period. Third quarter Revenues compared increased million. $XXX.X to million operating was of income year economic XX% in prior year-over-year income to million

For up $XX.X $XX.X XX% quarter year-over-year a to year-over-year million XXX% the period. the a the the to income versus $XX.X fees quarter year were quarter strong, Incentive was $XXX.X in loss in Investment million investment banking $X.X $XXX.X very million versus of in million. revenue million. million a brokerage Management to loss also $XX.X up million was for year of income prior were $XX.X of revenues prior compared XXXX. quarter the was third of income third income in period. million of

our includes negative past the Nikola's supplement financial $XX.X revenues. two Consistent income by quarters, markets markets Third additional breaking revenues out capital on into of million. and revenues capital our quarter mark-to-market investment provides now with our banking stake transparency our into underwriting revenues investment a advisory

was prior $XXX.X benefit million, expense. Compensation the our period. the to million and to expense $XXX.X now quarter year compared Turning for in

compensation expense mark-to-market the XX.X% in revenue $XX.X XX.X% quarter. year-over-year economic the accrued we of In quarter against revenue. from second in to decline third comp gains Nikola of ratio the income Our million to reverse XXXX,

investment until accrual needed, the adjust sold. to the that market quarters investment will we as in future to is We mark as continue

service an ratio comp targeting non-comp that total in annual fees by of and of increased partially in to are in account modest to expenses decrease to brokerage higher period. $XX.X offset quarter of increase accrued part compared into and Nikola travel, development $XX.X The quarter XX%. gains. any was XXXX. million business entertainment XXXX investment XX% occupancy Please non-comp The and range were third the due year expenses. prior third in the quarter, target million the from note We million Variable costs from takes Fixed expenses to overall $XX.X range $XX.X execution was equipment down in overall decrease lower the due revenue trade costs. compensation million volumes to third and

Third were quarter Taking expenses compared million economic operating share. $XXX.X to-date common strong in also $X.XX a or look XXXX $X.X very depreciation million $X.X of third and year to at quarter of our have amortization income results. They per the million with been XXXX.

the investment Nikola Excluding date million XXXX income per share. $XXX.X common to of or operating our year impact was $X.X economic

end, prior quarter Co, from Asset That down still At sheet. million. end valued of the balance the had we original of million. the but at end position, in invested In quarter, approximately $X million of company the includes totaling significantly from had $XX.X September. basis the Op our September, at to Co, at $XXX.X million cost up Turning invested $XXX.X Nikola totaling was capital capital the which

the the long which XXXX, as of third of mid-teens of was from per XQ, common quarter equity, common share, XXXX. total our compared term of book the XX% the XXXX. value is to $XXX.X our return to from XX, of to end to XXXX Tangible up equity on less $XX.XX was shares preferred equity at September on quarter equity equity million XX, in in annual $XXX.X per which outstanding XX.X% in $XX.XX value as book X.X% was excluding divided by is up stockholders Return XXXX. of XX% December compared equity of ROCE Nikola share impact Common XX, common December $XX.XX as XX.X% quarter million equity target common XXXX. XXXX. Turning of was Above $XX.XX at end, rose third

Board $X.XX morning, As common our quarterly Directors our up share, release to from per per this we noted share. dividend in cash $X.XX the of doubled

shares for an $XX.X to existing according the we per five repurchased plans our quarterly cost purchases in That including buyback quarter During million $XX.XX largest the million third of $X.XX marks at executed years. average XXbX-X Cowen's share.

increase conditions. to basis, as on look additional and bought quarter. is the the our make Even price a shares due count quarter dilutive impact that, in stock count to on and XX% will the I'll we We buybacks down, an amount available share increase share basic in the turn Jeff. though is well back weighing in the repurchases to cash of significant prevailing over call opportunistic as flow, of the share With average the market business over

Steve. Thanks,

focused Cowen growth As we've within sectors is of we serve. promising on areas outlined,

believe is not services. As to the be up We and few is and we the this our one our growth of believe in with We in board This a company result, aggressive generate our earnings and to very our quarter, tangible for consistency is multiples. true value that given shares yet still repurchasing and the shareholders. third financial of ability dividend. power market chosen reality book caught in the why trading why found earnings stories our Cowen returns solid below to has our has attractive were increase our

of to quarter. quarter operate more via the results remote third are continue so the bulk even considering that team the during Cowen the While remarkable, work

and exceptionally of team returned teams high trading, maintaining our our our office, their levels of safety team our while to of productivity. than of and research working banking our remains well-being members, currently families some the is While have offices, more top still XX% The of in particularly priority. and outside

the rise a cases in to of As have in a we where number geographies COVID continue we presence. monitor

antibody or COVID use be epidemic expect they the office the daily, our to team the ahead one therapies inform research vaccines. emergency approach. these end, report, our granted general year for the vaccines to and They term, role likely manage these We a access also developments also series the supplementing insights play effects However, in curve more to major we of with back are in and pharmacological broader about before recent optimistic monitor population expect authorization in long mid to a said XXXX.

wait holding encourage nurse and employees, among developments either tenacious and for Cowen We more culture the teamwork. of our in we vision, roundtable leadership the core of sustainability we're by weekly as conscious steps embodied webinars taking hold Even values to work heart empathy, attended at remotely, hallways Cowen's colleagues of unstructured events, would each to started team normally virtually Many also has interactions in social of departments and held virtual different in other. or near groups who hundreds person. our or building have work

We more are action committing to awareness Cowen's more also and directors board month, and efforts strategies. development in executives of and inclusion training, and our chief I the engaging furthering of our the signing make XXXX dialogue unconscious questions inclusion culture than to open expanding joined inclusive. diversity, diversity pledge, our an Last cultural bias in on CEO about cultivating

ahead our callings gather open once a While And again. to a this Operator? in will our and will clients, again questions. remain we commitment with work allow we serving that, and us. biomedical that that our a for we inclusion with ongoing have our advances of on is forward when health we look us diversity as of And it making to time as closely up important, lot Overall, recognize cohesive all we firm to connected communities. person success, is and still public focused measures, and I coupled key and future are

Thank you. Instructions]. [Operator

Please Sandler. Piper with ahead. Mody Sumeet from come will go question first Our

that to talk big on viewing for advisory? guys. Can Markets guys a Good opportunity you growth that strategy Capital wanted Thanks. How here are on start And you one Actually private the with can about how to grow area? more morning, organically? quickly well? is get segment bit maybe that then, the next do an couple wish grow opportunity little there to as kind means through inorganic of years? over Or you of kind side? of a And

Yes.

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many the alternatives in strategic suite company. so, objectives cases, of financing walking we're And that of match in a the full with

is access numbers so, go to to what And want capital. our our falls really out clients that in where

them for for the choose where limelight sense their public strategies And sometimes markets to the can sense them for stay out they while markets. sometimes more the and of develop and it to makes makes public private be it in a

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Okay, great. Thanks.

you in there? growth technology. this there it feeling follow-up business? kind How side, for and of the about kind of you the are seeing environment a is talking industrial guys on Just cyclical for areas Or public arise? non-biotech the opportunities consumer related more like banking potential Are

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to are better a We be going position. in

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for inorganic kind growth how Thanks. increase mean, those But all pace of dividend it just the if kind of And of was are strategy? increased compensation flip in quarter going? balancing potential And buyback from you I the I And about things? nice of on the maybe to how priorities, Are in the and side, our is that the what's here going to you capital On the wanted more to dividend. think see looking one targets? then Great. could doubling just here.

Yes.

increasing year been you to same think lot distant the it's if we where But continue the a for the incredible our cash what And feel the increase two quarters, acknowledge a too flow. and we So it time. we dividend very to to size. over I generated future, we'll size not expect all the I don't at not last performance at comfortable of think here the that the not opportunity buyback, And acknowledge would a be very to providing as of to firm, a in the start our stock the of it dividend we that equity increasing mistake. And shareholders cash be both the amount zero yield. have meaningful. rate that building reward is can well our view interest made, we've flow that we've our progress by to an as generated, environment look

forward, to return going way capital to at So we'll a continue using to levers both shareholders. as look

see the a We sure want growth getting a to continued flow, on shareholders to business we we're very sure use That's we're they returns both that cash and deserve. that continue return. improve, driving. our our shareholder and make are going to big make as continued are those And to levers continues total we that metric focused to of

Okay, for great. questions. Thanks taking my

Okay.

you. Thank

JMP Ryan Please come Our will Securities. Devin from question with go next ahead.

guys. morning, Good Great.

Devin. Hi,

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the the have -- we in making that when investments this like significant share, or right primary either thinking over kind business year, think don't which can been we or for you think and significant are very whether increasing, three year products can investments, or been are addressable years share? we used, can to can investments competitors. when two tactical just When grab minimize we you metric inorganic or really importance something that that we're teams we've of is, about a have or you it. And drive take that organic so, of where markets the I our and that's a that's garner where ROE. manage cycle, smart right? I hiring, I think is about think expanding - total market weaker services it's making from the I the share to, don't

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organically the certainly see the And adding off expand I likely success leverage us to see industry most in that had. through so, doing. certainly I That's can in us as and of continues something capability area we've we that

sustainability highlighted the several we think area for next think growth as I legs we decades. has another

to we're making three years started investments two see were starting we As or those ago.

so think area. really sustainability, actually is we going the industries in an their if is one capability -- things cover about adding certainly forward, of interesting And it see through you upgrade. own the us each that's can I going of Though, sustainability

of see investing, going areas sustainable themes. big industrials is investing, meaningful one look of a these and workforce whether that Ag/Tech, these we're automation And agricultural investment and key investment. that's going number transportation to come we any to of a and or chunk So at where from all or

continue I will thing that important that relationships. is, say to we because would capability Last think drive people revenue product add of for so, I is really And us. their

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demand number well a that as as think inundated area, with we have I so, in And been of other areas.

like most, And really continue year -- high is again, drive and a it can bit, have to who say, I'd can that are critical in maintaining, it the the happen a on we quickly. to very people our if us so year fit come in to dips continue years. line culture kind focused made for happen that and means, investments we opportunity But that I've revenue together here. little a great, could to be do And extend eyes amazingly, to invest. can And the ability our platform employee, a thing we gives get hire That per us who is the too. on seen $X if lot confidence the of over our make we've this year the million bottom quality continue of

Jeff. you And pick on Thanks, then up Got made just some it. Very there. color. to the just maybe helpful of points

not connectivity, emerging more focus to continue market? with already like would some that products a they sectors as products diversify investment some of or sustainability sector there conversation. you it banking great think or in there's themes of firm's footprint the to sustainability. additional the whether continue that the fit whether As with in these whether be has like trends any Are the SPAC, where where to now like in about the just for right Cowen areas breath, those room elevate trying I'm be

looking about view. our I in That's would actually say a better at adjacencies. it we're think way to

it don't adjacencies, if some tools you tend biotech at not you diagnostics, difference we've those have that's healthcare, Certainly, that into leads together. we blends says, do recognize on anything where you talked specifically the to in can look nuances in, three go fill sort hey, industry And if the impacts in how look healthcare and categories go our [ph], in at are this we industry and between lump you're health. another of that adjacencies just theme agenda blends we see to around we're future all every blank. into So if There about that. also, -- about. should I

industry a done last and success our decade smaller us been is terms formation occurring business. in their think strategy than an and to the who's bear where financing sheet those Lot ingredients that's focusing the dependent significantly it us. strategic figuring is in balance very where areas and are a And necessary compete deep out that around win that our and of bigger to expertise, where us actually than against both the there's and firms larger where And I intellectual number of we to disruption, ability occurring a for we've competitors of worked I be And bringing to capital. have. to Cowen, banks. helped so that seeing advice and us at firms to a deliver. compete of new then has at actually we disruptor, essential big available very the to is of That's the well the smaller we think, domain really for have sort breadth on both capability don't just seeing not And activity the have likely job industries. good company really

relationship M&A then into financing from advisory, their or core But it M&A get steps, like product marrying expertise industry for they have may they capability, gets away advisory So example. a with they and one deep a area can go in once competency. little

disruption, look strategy there's has to industries, for for the look so, been us for where adjacencies. And those

that bear find grow time. As are to bring make then disruptive as our in expertise, sure industries, those expertise the that industry businesses business. that financing companies we well win our organically, And evolving to those and takes as

the year, So think, the to looking them the those this there's investments having what so. really last of And platform benefits and decade past deliver for onto a they're course of investments bringing at are we've about their what is is I the us. the of ways to half people Devin made for better seeing And a shortcut of to making. there's over been people talking And integrate. the decade, about we've or That's as -- really just clients. you're part the this having number congeal starting been no for

Terrific. Jeff. just And last me. Thanks, Okay. one then quick for

the just that's big also pandemic I seeing to used how the point just of actually because this they season efficiency gotten companies through more in but working in allowing time or think remotely, be a time more, do the with spending bankers lack the on earnings is could some airplanes not here the travel. firms key more cases meetings. half everyone's are more is And clients through talking executives to in spending terms being with and clients, your of week, that

And little And around some that so curious lasting non-comp spending, to any opportunities, that that with costs. there's interplays of this then you if how think could of so kind I'm cost of if structure just term, or reduce kind longer the be face there productive, there kind if a is that is because kind time? we of all replaced where some [ph] any that wasn't of road is that historically, travel more more become view necessary, with client of, bit around of comment

particularly Like, relatively clients focus to you're there's think you're I for personal could of one allows stationary from efficiency. call to when in next. matter when have you clients. from in about us something place that one time how mean, more you seconds another. own a definitely be I you that's And for it much to don't as focused the being video zones So, I in contemplated. can stay really delivering And difficult on key think spend to on delivering life moving focused is and of my hadn't across any I transit time I how elements, migrate

will in don't I see want think, to going that to out want So through team shift underestimate saw. for a at go will not do be to we travel Though future, get I pick same clients. up. clients a Clients see impact other. were travel, here, are travel. And colleagues we level are have the fundamental it power where to because to be its we again. quite and do the we'll though, We're there's we expect be our I see to back -- to and want both just us. want that of see think us phase to it's necessarily internally part And there on think more expect I to travel to to together to the over going that here. of I efficiency, people don't our I going each the that because time important

of social over are there's did senior past we with together. of We quarter and a the have in in protect like couple of to get few and a some opportunities and -- our Obviously, mask geographies, and course appropriate traveling offices things instances ourselves. ways testing had the wearing or when to we've for people that around see management nothing different the to. We obviously doing all distancing being our been

with But the it. when you there not So people and thoughtful remotely. is for six we're about same being in isn't them, you're seen replicable space you actually see electricity months, that haven't that there

will that see as back expect I probably we the any meaningful move half XXXX, amount. we of So XXXX, into

You'll see a like pickup in things travel in expense.

We've variable Steve is things sense. continue And turn a have we've costs trading of I our Cowen with think that in one to our increase much businesses, to a is expense. variable growth tremendous of so around our I gains here absolute T&E that. also the in productivity want had an because in to one over second. And the seen things

that have seen I of we revenue T&E haven't that. And better you can you've any a would line costs, a meaningful offset little Steve, at direct on associated obviously, give you So the But revenue on reductions overall variable handle But moment. much in seen transaction And at Steve, can And non-comp guidance in in a gains drive have those come to when in bit significantly. the when why by transaction the reduction costs. way. in a quantify with say, our think, look maybe ratio. for a you that we look -- that's been I expense you

Yes.

determine for. year, in mean, year, half back Jeff But and from don't it's office trading expect, entertainment markets working what were we I either to or entertainment by savings their and have offset were saying, much you then so because down levels all would the I were that. to for reasons teams alone, back in will how everybody expect would the in the XX% maybe this quarter don't budgeting I But having in travel. offset as going the travel of time. have was revenues like will maybe come obviously all much be going the we're as think to execution to was to for we But the $X past, they what and But stated. next others to million XX%. they things are T&E home working think and but our from that high did with Devin, experienced they costs and our as it the efficient, was bankers in first Just in our budgeted expected visit businesses client budget over we up, and the we that past don't -- they the not the pick are go travel that

expenses conference have, we this biggest number we happened of also our savings, another that because conference our into big first Devin, our head quarter first and game So healthcare as events quarter expense, happen largest the seasonal next the expenses year, in our and event is the of year. a biggest happened,

I'm yourself, less it conferences, less And virtual I expensive. impactful are is, conference are travel. and you're includes quarter first So, savings you we when is, quarter. no the at part our will the a and banker events teams, are really and get analysts in And When say you in of last year savings be to sure experiencing off, look next what you year having do. because spent the a lot are obviously our to non-comp the such it's MDRs full There biggest it's would virtual had not we've this if savings that's this analyst already at the rolls of were spend lot the -- thing travel, really quarter savings meaningful just a year quarter next efficiency corporate see our from year. the expensive that look [ph], virtual first and can

I'd return there don't be there'll probably say some, costs term don't the So long efficiency gains -- return.

soon. you Great. there. it up And Thanks. I'll guys. leave we'll Well, thank catch

you. Thank

go Please will from ahead. Research. with next Our Chubak Wolfe Steven come question

morning, good Good Hi, Steve. Jeff. morning,

Steve. Hi,

Hey.

wanted brokerage So business. off to on start I the

see tracking So, continue peers, revenues you now nice really looking guys relative to at to momentum. are how

how you can believe for environment, other seen rate there. Jeff, about just market institutional that of remind a trying be thinking but what Now, recognizing And just just step a that operating separately, brokerage should is business. is? the that nice You've to volatility, I'm sustainability sustainable what higher gauge be like this you to the going indicators services up is we run line? run rate tethered to

so Well, a couple things.

So this our lending what's services brokerage growth driving growth the in line is and in certainly our the securities prime businesses business.

like outsource things prime and and trading our growth the particularly -- that spaces. securities So lending in

add basis, selective of for Delta like Swap clients. We a our on One a and to some continue book capability capabilities the

those So and they're room the all competitors. They take share as business. grow. that lot market they're somewhat we volume volumes from less I operate, volume independent mean, a operate other but market to from there's dependent, dependent, market

seeing in been That here there's than Europe, trajectory year. made what The people are pretty different share also of one rest is we've significant. product. And the things in the focused growth a with very be of this think you've seen trading I year, grown been team their is organically Europe. European real that one exactly that has in shows has that to gains it for businesses

our capability. winning sales of why I And of to is trading capability, research so, clients the well some our think to the in want because, as other have both competitors the reasons as opposed one we're business as

businesses to competitors franchises, a sides in declined shown been been really our fact years. have we've And have who of not saying research of there have or over actually that both the eight just in something revenues. strong So have function for improvement equity business, of others have be whose the market you share that's

for And the make so really this pay clients it to to easy you're in know, business. because you have you. I

show growth slowdown quarter this here share. the we we're with be comment And in certainly in that, areas. But expect volume, can that slow that. share guidance the we our is so, to dependent. yes, still say, the in down business we we're target volume, line our we garner obviously, I made so we see more that gave, ability with to would volume far And continue in or But to bit market still little October, seeing a those

would I XX% quarter, the like you'll saw that third expect just declines, so And when we see decline. in we didn't

dependent us way say I'd this helpful? us is gives on buffering, it probably say volumes. That to that best tracking makes little purely market the so, a less And it. Is

you But I a helpful. past, didn't comfortable either That like it base guys level X.X the if just underwriting a was of Yes. in per is know know I day. revenue it's something here? framed you were -- that as million

can been think we've pretty I doing we -- that comfortably.

Okay. just And enough. maybe comp just focusing follow-up earlier, Fair maybe on a but discussion side. little from expense a more the the bit on

a some you to disciplined room should leverage, guys is as over know continue the there be job, about the more how a strength these that of higher should leverage, scale? I I'm have thinking seeing. You of guys nice to incremental term, deliver sec momentum have given that on non-comps. of comp meaningful I'm done on of just been we're margin comp just we potential targets. especially hitting wondering your as staying really areas noted like that lending be was long the thinking revenue the earlier for just

actually in where we've I think to comp. we stated think going be terms of pretty we're clearly

for margins. critical years make it's in our and the deliver think colleagues, we have mean, we like that a we important think very sure thing. this I really I that I year that's

ratio the earlier It's -- output we of output an revenue in revenue it's is mentioned an I of profitability. As comps an output. call, mix,

for think us And of we and to I are, you and sure that allows we to given shareholders, that guidance we deliver the make clients when that view and should we do Our at land, look colleagues. where for our all where our we've expect and that. is

changes hoping election. about And from the potentially perspective treatment, final you're regime. of some activity? and just of one signs on tax get front changes loading the driving implications in to seeing me the just early some any one it. Got how thinking I impact election you're in And deal gains for just on was just capital

And step ignite we're presuming take second what coming. growth. a for the of a outcome a regardless I say, will back that real is, So, say, we'll there's some Wave there's election would underpinnings and Blue

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order over a I us. big raise function enabling they're the regardless to think learned industries need theme got losers. business formation, people has for winners this And virus. again. has what they their term, to the everybody over the in long in and said That's going Within they to Fed, we've been in execute do fact the reprieve increased be that to a the of to and activity and from deal lubricating do capital the money a that here

and if winners what about there is, out if I coverage at on seeing that within problem your ask have been The of universe, is garner share, thought to is have in market position And share. losers a people feel or passive of enables essentially strategy. about own the winners they investing now look if weightings you losers. of And and is, happened funds on people industries without work. that picking headwinds on and based what historically, look could passive market one the think returns been winners probably at at allocation people are where to and industries, what's you you because and tactical position businesses. you to both of were of see So how various who and us, focus on for of dispersion how relative for losers. That's you'll returns models tailwinds there to asset based growth you on for picking widest allocate Cowen, analysis based people's in That's dispersion business a you, The you're proliferation fundamental outcome do will. fantastic people garner

best of analysis. probably persists. regardless of so what that's that the election, our And case is And outcome

think fundamental in are we positioned our doing And and to are changes whether shift this know to [ph] clients that I'm a enough opportunity so, way smart not a I policy sparing more the we're it. handle -- well activities, don't of think business, that. or an think as I see regardless I just

Thanks Jeff. for so questions. my taking great, That's much

you. Thank

Michael from go Please come will question next KBW. ahead. with Brown Our

Hi, good morning. Jeff. Hey,

Good morning.

start guess, buybacks, I to So of asked I wanted questions most my answered. the wanted to and though. had I -- with just been

obviously, were guys quarter. really active you So this

throwing you modeling? shy a might of to excess monetize help Is trying of deploy some way And obviously, about you to and that can roughly or $XX quarterly you the You basis XXbX-X what do Nikola's we're of to for can forward just for purchase million about quarter represent to and you businesses, kind from you're Thanks. just a your that going that kind on this right ceiling cash Is the think later of your off of frame kind quarter? a a of cash? common just using And shares start stock. operating lot think how

had first insight it's decent shaping So, question. we of good the were I quarter think obviously up. all, And a how some of

cheap, we we stuff the were do had able that. buy opportunities to to So

also should First stock recognize replenishment did our buyback. of you our all, that board authorize of

so much up last fresh $XX we to we're because stock quarter. So back in bought million,

should year And an XX% our spent We've opportunistic as consistent. indication think about will I've flows. been for I be. that of how the you very we give to cash So

said, we our to of capital has I As will and cash this our based year back cash come return from generation operations. generation. shareholders buy on flow stock Most flow

TSR And the like that things I we this very Nikola, comfortable Asset operating I events us cash from have long won't same juncture. We a equity pace a by generate is maintain up commit continue total we of we for going to or leverage the how there flow But cash of on illiquid of few from continuing we're sale cash generating feel operations way you potentially from one-time monetization that to events, that go not that. to the which tied some willing of so in put years, And a as other the return. and back kind to we'll standpoint. these ourselves we or if flow that of have getting so assets ahead in thing to When at demonstrated it's ourselves that that regardless it we've of an is as we're work? and is challenge improve opportunities take assets harm's ourselves much right in do Co and always shareholder had could or think And word to as to to was weren't at do be flow or whether standpoint. going the we the look already a Cowen, one-time indeed, with

things last assets. had asset few have -- position to the if cash the very would marks. different over or at last two operations those quarters than today. company from a we in generated quarters still happened is close we've the had the liquidated just flow One that's in We're we we And the own more of

demonstrated to we've in our return. me, demonstrate when gives the to reward last be monetize. positive those And think cash in amount assets we should that think and shareholders I continue of us we're enhance we shareholder total we'll that to generating when a about to things flow, how So it can quarter, the flexibility with doing tremendous belief future,

Okay, clarification share great. the And the thanks authorization. on for buyback

revenues wanted comp yes, for leverage the me, over up almost follow comp just XX% but your one And performance up to well. look year-over-year, date I we on to that more at year up and question. are Just expenses XX% as

given so, certainly about mix. to that. And should some against seems you a just for producing talent revenue little little that, like top you've just for seen results just on to such you want put lower of because to better your in there But should a like it a talked the XX leverage revenue could to with finer a hear that But you high bit XXXX? comp And bit and you sticking a be of to able me point strong operating results. probably XX, ratio, just you seems run kind seems be I a reward it year that

targeted a excess And our a been the ways. in would when way say generating, of of I returns. remarkable year Yes. we're at which ROEs it's you are in lot look

certainly those levels. in ROEs our year excess stakeholders, are all lot way these margins. year delivering shareholders couldn't of expected. same And we of at get what ways are And This driving for to going the So that apply. an they And in ways. sustainable, in when shareholders margins a that is of And of our kind rules even have are I is look comp employees, a they at imagined. we're exceptional including

of very And Because so comfortable terms makes the the sense in it sustainability our business. us guidance of we're that with to given. we've

we're us by Just will the the right this be when things can't to on year. other And the people get street year. returns are we playing for And the without bottom of for this, firms that don't year, of doing long are off in every day. that every clear, who be receiving there do we're the like a expecting, or deliver game, them this the shareholders kind day,

our always down to it's But as internally a this management balance, a board, sat about team, to be. about talk down and a place we we talk right for the with us it's it balance. sat is when So to

But the right we've for of And guidance and so, a lot future whatever now, everybody's winning. that future the holds, given the makes holds. sense

Thank Jeff. call. the Appreciate Okay. you,

Mr. showing for I like time, Jeffrey in Solomon now would turn questions this speakers, the the call And I'm queue. further any further remarks. At to to no over back

proud themselves extending from team amazing been the financial at are but on which making to And in end of this as going deliver can, for people our proud this at here in position Well, during has team commitment I'm sort standpoint, the that of in. has people Not talk on I it efforts operator. understating team thank seat I the a the here I -- happens thank closing, makes before calls And day, to that this. the that is at as it's it efforts I that values in I see I difficult when they're one lengths like When the core get the to say you, I you. Cowen. get clearly of made. of do to that another. it our feel inspiration our time. demonstrated the activities Cowen. I the everyone all to from only none an And want into be get me that are way where to clients, Cowen. In an clients about without the continued amazing of be see be inspiration this it's quarter an I I'm And a to at our to team like

I really so be when And effort for it just call everyone those clear how all that we public a is that for want are I to this, grateful say making. like on and activities

look I call. with Have us. our you day. a And I with forward So joining good for to next that, on all thank speaking you

participation. this conference you and concludes for today's Ladies your Thank call. gentlemen,

You disconnect. now may