 Reports Record 2Q20 US GAAP Net Income of 112.1 million or 3.83 per share Record Economic Operating Income of 166.9 million, or 5.69 per share The Nikola investment contributed 64.9 million to Economic Operating Income, or 2.21 per share Strong Book Value Growth, up 5.82 per share to 28.96, Tangible Book Value up 5.86 to 22.94 per shareNEW YORK, July 28, 2020 GLOBE NEWSWIRE -- Cowen Inc. NASDAQ: COWN Cowen or the Company today announced its operating results for the second quarter ended June 30, 2020.Jeffrey M. Solomon, Chair and Chief Executive Officer of Cowen, said, We outperformed across the entire organization in the second quarter. With record revenues in our banking and markets businesses as well as a strong contribution from our investment management operations, we generated record profitability, even before factoring in the unrealized investment gains from Nikola. In an environment of heightened volatility and macroeconomic uncertainty, we remain dedicated to helping our clients navigate with our strategic advice, capital raising expertise, advanced execution capabilities and world-class research and differentiated investment products. Second Quarter 2020 Financial Summary US GAAP Economic Operating Income Three Months Ended June 30, Three Months Ended June 30, in millions, except per share information2020 2019 Δ 2020 2019 Δ Revenue418.8 292.2 43 558.7 244.4 129 Net income loss attributable to common stockholders112.1 4.1 NA 166.9 20.4 718 Earnings loss per common share diluted3.83 0.13 NA 5.69 0.65 775 Note: Throughout this press release the Company presents non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States of America US GAAP. A reconciliation of these non-GAAP measures appears under the section, Reconciliation of US GAAP Unaudited to Economic Operating Income Loss. Second Quarter 2020 Operating Financial Highlights US GAAP unauditedSecond quarter 2020 US GAAP revenue was 418.8 million compared to 292.2 million in the second quarter of 2019.Second quarter 2020 US GAAP employee compensation and benefits expenses was 305.3 million, an increase of 168.9 million from the prior-year period.Second quarter 2020 US GAAP income tax expense was 44.9 million compared to 5.1 million in the prior-year quarter.Second quarter 2020 US GAAP total expenses totaled 411.5 million, an increase of 164.0 million from the prior-year period.Second quarter 2020 US GAAP net income attributable to common stockholders was 112.1 million compared to net income attributable to common stockholders of 4.1 million in the second quarter of 2019.Second Quarter 2020 Operating Financial Highlights Non-GAAP Record Investment Banking performance: - Strongest quarter on record driven by capital markets activity in biotech and healthcare tools diagnostics. Revenues for the month of June alone surpassed any quarter on record. - MA revenue strong despite difficult economic backdrop, including record single fee from Nikola engagement. Record markets revenues with continuing share gains: - Markets revenue, which includes brokerage, financing and other revenue, was a record 169.2 million 2.69 millionday. - Posted strong performances in electronic trading, European trading, derivatives and prime brokerage. - Securities finance and special situations, including SPAC trading, rebounded sharply after a difficult 1Q20. Strong momentum in investment management: - Record incentive income accrual driven by IPOs in the healthcare investment strategy portfolio and strong performance in the activist strategy. Management fee revenue run-rate at highest level since 2016. Invested capital - Strong returns with reduced risk: - Record investment income driven by valuation of Nikola investment 129.8 million and rebound in other balance sheet investments. - Reduced investment risk in portfolio in MarchApril and increased hedging to reflect a more volatile trading environment due to economic uncertainty.Capital Optimization UpdateAs of June 30, 2020, Cowen had book value of 28.96 per common share and tangible book value per common share of 22.94, up from book value of 24.77 and tangible book value of 18.72 at December 31, 2019.In the second quarter of 2020, the Company repurchased 6.6 million of its common stock, or 446,800 shares, at an average price of 14.67 under the Companys existing share repurchase program.Outside the share repurchase program, in the second quarter of 2020 the Company acquired approximately 3.2 million of shares as a result of net share settlements relating to the vesting of equity awards, or 262,160 shares, at an average price of 12.22.For the first half of 2020, the Company repurchased 1,830,457 shares for 24.6 million, or an average price of 13.42 under the Companys existing share repurchase program. Outside the share repurchase program, in the first half of 2020 the Company acquired approximately 6 million of shares as a result of net share settlements relating to the vesting of equity awards, or 490,717 shares at an average price of 12.29.Quarterly Cash DividendThe Company maintained its quarterly cash dividend payable on its common stock. On July 21, 2020, the Board of Directors declared a cash dividend of 0.04 per common share, payable on September 15, 2020, to stockholders of record on September 1, 2020. Select Balance Sheet Data Amounts in millions, except per share information June 30, 2020 December 31, 2019 Cowen Inc. stockholders equity901.7 809.9 Common equity CE800.4 708.5 Tangible common equity TCE634.1 535.6 Book value per share CECSO28.96 24.77 Tangible book value per share TCECSO22.94 18.72 Common shares outstanding CSO 27.6 28.6 Note: Common Equity CE is calculated as Cowen Inc, stockholders equity less our preferred stock issuance. Tangible common equity TCE is calculated as common equity CE less goodwill and net intangible assets. Cowen Inc. US GAAP Preliminary Unaudited Condensed Consolidated Statements of Operations Dollar and share amounts in thousands, except per share data Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Revenue Investment banking203,982 114,705 309,010 194,811 Brokerage147,224 111,382 286,586 208,845 Management fees11,653 7,039 23,257 14,180 Incentive income 8 23 Interest and dividends47,918 40,047 89,995 69,139 Reimbursement from affiliates247 254 508 542 Reinsurance premiums5,967 14,331 16,438 20,922 Other1,490 930 3,340 1,991 Consolidated Funds revenues359 3,468 3,515 5,808 Total revenue418,840 292,164 732,649 516,261 Interest and dividends expense49,304 39,528 88,096 68,612 Total net revenue369,536 252,636 644,553 447,649 Expenses Employee compensation and benefits305,282 136,409 429,710 268,291 Reinsurance claims, commissions and amortization of deferred acquisition costs6,434 10,782 16,864 16,944 Operating, general, administrative and other expenses92,027 89,063 180,166 167,064 Depreciation and amortization expense6,200 4,952 11,642 9,908 Goodwill impairment 4,100 4,100 Consolidated Funds expenses1,585 2,231 4,299 3,713 Total expenses411,528 247,537 642,681 470,020 Other income loss Net losses gains on securities, derivatives and other investments196,502 3,910 152,519 42,994 Consolidated Funds net losses gains37,370 5,782 35,795 7,640 Total other income loss233,872 9,692 116,724 50,634 Income loss before income taxes191,880 14,791 118,596 28,263 Income tax expensebenefit44,932 5,073 43,759 8,250 Net income loss146,948 9,718 74,837 20,013 Net income loss attributable to non-controlling interests in consolidated subsidiaries and funds33,113 3,906 29,075 4,418 Net income loss attributable to Cowen Inc.113,835 5,812 103,912 15,595 Less: Preferred stock dividends1,698 1,698 3,396 3,396 Net income loss attributable to Cowen Inc. common stockholders112,137 4,114 100,516 12,199 Earnings loss per share: Basic4.01 0.14 3.55 0.41 Diluted3.83 0.13 3.39 0. 