Delaware
|
|
1-14761
|
|
13-4007862
|
(State or other
jurisdiction of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer
Identification No.)
|
|
|
|
||
One Corporate Center, Rye, NY
|
|
|
|
10580
|
(Address of principal executive offices)
|
|
|
|
(Zip Code)
|
|
|
|
Item 2.02
|
|
Results of Operations and Financial Condition.
|
|
|
|
Item 9.01
|
|
Financial Statements and Exhibits.
|
For Immediate Release:
|
Contact:
|
Douglas R. Jamieson
|
|
|
President
and Chief Operating Officer
|
|
|
(914) 921-5020
|
|
|
|
|
|
For further information please visit
|
|
|
www.gabelli.com
|
·
|
Second Quarter Earnings of $0.95 per diluted share
|
·
|
AUM at $45.4 billion
|
Financial Highlights
|
Q2
|
Q2
|
YTD
|
YTD
|
||||||||||||||||||||||
($'s in 000's except AUM and per share data)
|
2015
|
2014
|
%D
|
|
2015 | 2014 |
%D
|
|
||||||||||||||||||
AUM - end of period (in millions)
|
$
|
45,414
|
$
|
49,377
|
(8.0
|
%)
|
$
|
45,414
|
$
|
49,377
|
(8.0
|
%)
|
||||||||||||||
AUM - average (in millions)
|
46,448
|
48,132
|
(3.5
|
)
|
46,620
|
47,556
|
(2.0
|
)
|
||||||||||||||||||
Revenues
|
102,704
|
108,296
|
(5.2
|
)
|
206,549
|
212,773
|
(2.9
|
)
|
||||||||||||||||||
Operating income before management fee (a)
|
39,190
|
42,681
|
(b)
|
(8.2
|
)
|
77,572
|
(c)
|
83,908
|
(7.6
|
)
|
||||||||||||||||
Operating margin before management fee
|
38.2
|
%
|
39.4
|
%
|
37.6
|
%
|
39.4
|
%
|
||||||||||||||||||
Operating income
|
34,949
|
37,537
|
(b)
|
(6.9
|
)
|
68,894
|
(c)
|
74,036
|
(6.9
|
)
|
||||||||||||||||
Operating margin
|
34.0
|
%
|
34.7
|
%
|
33.4
|
%
|
34.8
|
%
|
||||||||||||||||||
Other income, net
|
3,221
|
8,921
|
9,214
|
15,014
|
||||||||||||||||||||||
Income before income taxes
|
38,170
|
46,458
|
(17.8
|
)
|
78,108
|
89,050
|
(12.3
|
)
|
||||||||||||||||||
Effective tax rate
|
37.0
|
%
|
36.9
|
%
|
37.5
|
%
|
35.7
|
%
|
||||||||||||||||||
Net income
|
24,101
|
28,950
|
(16.7
|
)
|
48,877
|
56,904
|
(14.1
|
)
|
||||||||||||||||||
Net income per share
|
$
|
0.95
|
$
|
1.13
|
(15.9
|
%)
|
$
|
1.93
|
$
|
2.22
|
(13.1
|
%)
|
||||||||||||||
Shares outstanding at June 30
|
25,725
|
25,899
|
25,725
|
25,899
|
(a) See GAAP to non-GAAP reconciliation on page 10.
|
||||||||||||||||||||||||||
(b) Second quarter 2015 included $1.2 million of incremental costs as compared to second quarter 2014:
|
||||||||||||||||||||||||||
$0.6 million for potential firm restructuring; and $0.6 million in non-cash RSA expense.
|
||||||||||||||||||||||||||
(c) Year to date 2015 included $3.6 million of incremental costs as compared to year to date 2014:
|
||||||||||||||||||||||||||
$1.0 million for the launch of a new closed-end fund; $1.5 million for potential firm restructuring; and $1.1 million in non-cash RSA expense.
|
||||||||||||||||||||||||||
% Change From
|
||||||||||||||||||||
June 30,
|
March 31,
|
June 30,
|
March 31,
|
June 30,
|
||||||||||||||||
2015
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
15,984
|
$
|
16,643
|
$
|
18,508
|
(4.0
|
%)
|
(13.6
|
%)
|
||||||||||
Closed-end Funds
|
6,981
|
7,071
|
7,224
|
(1.3
|
)
|
(3.4
|
)
|
|||||||||||||
Institutional & PWM - direct
|
16,011
|
16,407
|
16,941
|
(2.4
|
)
|
(5.5
|
)
|
|||||||||||||
Institutional & PWM - sub-advisory
|
3,703
|
3,814
|
3,883
|
(2.9
|
)
|
(4.6
|
)
|
|||||||||||||
Investment Partnerships
|
937
|
928
|
897
|
1.0
|
4.5
|
|||||||||||||||
SICAV (a)
|
152
|
105
|
94
|
44.8
|
61.7
|
|||||||||||||||
Total Equities
|
43,768
|
44,968
|
47,547
|
(2.7
|
)
|
(7.9
|
)
|
|||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,600
|
1,520
|
1,766
|
5.3
|
(9.4
|
)
|
||||||||||||||
Institutional & PWM
|
46
|
52
|
64
|
(11.5
|
)
|
(28.1
|
)
|
|||||||||||||
Total Fixed Income
|
1,646
|
1,572
|
1,830
|
4.7
|
(10.1
|
)
|
||||||||||||||
Total Assets Under Management
|
$
|
45,414
|
$
|
46,540
|
$
|
49,377
|
(2.4
|
)
|
(8.0
|
)
|
||||||||||
-
|
Total revenues for the second quarter of 2015 were $102.7 million, down 5.2% from $108.3 million in the prior year reflecting lower fees earned in investment advisory, distribution and other income and institutional research services.
|
-
|
Investment advisory fees, excluding incentive fees, were lower at $87.1 million in the second quarter of 2015 from $89.7 million in the comparable 2014 quarter. Revenues in our open-end funds and Institutional and Private Wealth Management decreased due to a decline of average AUM in the open-end funds and lower billable assets in our Institutional and Private Wealth Management accounts which were partially offset by revenue increases in investment partnerships and closed-end funds on higher levels of average AUM.
|
-
|
Incentive fees earned were $0.2 million during the 2015 quarter versus $0.5 million reported in the second quarter of 2014.
|
-
|
Distribution fees from our open-end equity mutual funds and other income were $13.4 million for the second quarter 2015, a reduction of $2.4 million, or 15.3%, from $15.8 million in the prior year quarter. Driving this decrease is a 15.2% decline in quarter over quarter average AUM and a shift to Class I shares for which we do not collect a distribution fee.
|
-
|
Our institutional research services revenues were $2.0 million in the second quarter 2015, compared to $2.4 million in the prior year period.
|
-
|
On May 12, 2015, we filed a Form 10 detailing the planned spin-off of our Alternative Investments and Institutional Research Services businesses as a separate public company.
|
-
|
On July 23, 2015, Dinsmore Capital Management and Gabelli Funds announced the signing of an alliance to manage convertible portfolios. Subject to approval by the shareholders of the Bancroft Fund and the Ellsworth Growth and Income Fund, Gabelli Funds will form the Dinsmore Group which will contribute to the management of The Gabelli Convertible and Income Securities Fund.
|
-
|
In May 2015, Gabelli & Company hosted its 9th annual Omaha research trip in conjunction with the Berkshire Hathaway Annual Meeting as well as its 7th annual Movie & Entertainment Conference
|
-
|
At our 30th GAMCO client conference held at the Pierre Hotel in New York City on May 15th, we inducted four new members into our GAMCO Management Hall of Fame. The inductees were: Ward M. Klein of Energizer Holdings, Inc., Michael D. White of DIRECTV, David F. Melcher of Exelis, Inc. and James F. Cleary, Jr. of MWI Veterinary Supply, Inc. Additionally, we named Leon Cooperman as the 2015 recipient of the Graham & Dodd, Murray, Greenwald Prize for Value Investing.
|
-
|
We hosted our 7th symposium on July 22nd at the Paley Center for Media entitled the “The Tug of War Over Capital Allocation”. The focus of our highly regarded panelists was on the critical interplay between shareholder compensation and expenditures for R&D and capex.
|
-
|
On July 21st GAMCO announced a reorganization of its Sales & Marketing leadership designed to re-organize and coordinate our organization’s focus on sales and marketing initiatives in our various investment segments.
|
A.
|
Operating income before management fee expense is used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of GAMCO Investors, Inc. (the “Company”) as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense. The reconciliation of operating income before management fee expense to operating income is provided in Table V.
|
B.
|
Operating income before management fee expense per share and other income/(expense), net per share are used by management for purposes of evaluating its business operations. We believe these measures are useful in comparing the operating and non-operating results of the Company for the purposes of understanding the composition of net income per fully diluted share. The negative swings in other income/(expense), net of $0.11 and $0.12 per fully diluted share for the quarter and year to date, respectively, are derived by making certain necessary adjustments, as shown in the table below, to arrive at a net impact for each period and then calculating the difference. The reconciliation of operating income before management fee expense per share and other income/(expense), net per share to net income per fully diluted share, is provided below.
|
2nd Quarter
|
YTD June
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Operating income before management fee
|
$
|
39,190
|
$
|
42,681
|
$
|
77,572
|
$
|
83,908
|
||||||||
Management fee expense
|
(3,919
|
)
|
(4,252
|
)
|
(7,757
|
)
|
(8,371
|
)
|
||||||||
Tax expense
|
(13,050
|
)
|
(14,174
|
)
|
(26,191
|
)
|
(26,933
|
)
|
||||||||
Noncontrolling interest expense
|
138
|
87
|
259
|
166
|
||||||||||||
Operating income (after management fee and taxes)
|
22,359
|
24,342
|
43,883
|
48,770
|
||||||||||||
Per fully diluted share
|
$
|
0.88
|
$
|
0.95
|
$
|
1.73
|
$
|
1.90
|
||||||||
Other income, net
|
$
|
3,221
|
$
|
8,921
|
$
|
9,214
|
$
|
15,014
|
||||||||
Management fee expense
|
(322
|
)
|
(892
|
)
|
(921
|
)
|
(1,501
|
)
|
||||||||
Tax expense
|
(1,073
|
)
|
(2,961
|
)
|
(3,111
|
)
|
(4,818
|
)
|
||||||||
Noncontrolling interest (expense)/benefit
|
(84
|
)
|
(460
|
)
|
(188
|
)
|
(561
|
)
|
||||||||
Other income, net (after management fee and taxes)
|
$
|
1,742
|
$
|
4,608
|
$
|
4,994
|
$
|
8,134
|
||||||||
Per fully diluted share
|
$
|
0.07
|
$
|
0.18
|
$
|
0.20
|
$
|
0.32
|
||||||||
Net income per fully diluted share
|
$
|
0.95
|
$
|
1.13
|
$
|
1.93
|
$
|
2.22
|
||||||||
Diluted weighted average shares outstanding
|
25,358
|
25,586
|
25,386
|
25,635
|
||||||||||||
C.
|
Adjusted operating income and adjusted operating income before management fee expense is used by management to evaluate its ongoing business operations. We believe this measure is useful in evaluating the ongoing operating results of the Company absent any of these adjustments.
|
2nd Quarter
|
YTD June
|
||||||||||||||||
2015
|
2014
|
2015
|
2014
|
||||||||||||||
Operating income before management fee
|
$
|
39,190
|
$
|
42,681
|
$
|
77,572
|
$
|
83,908
|
|||||||||
Adjustments:
|
|||||||||||||||||
Add back:
|
Incremental RSA expense
|
570
|
-
|
1,147
|
-
|
||||||||||||
|
Costs to launch Closed-end fund
|
-
|
-
|
1,000
|
-
|
||||||||||||
|
Costs related to potential firm restructuring
|
625
|
-
|
1,475
|
-
|
||||||||||||
Deduct:
|
Reimbursement of prior year expense
|
-
|
-
|
-
|
(438
|
)
|
|||||||||||
Adjusted operating income before management fee
|
40,385
|
42,681
|
81,194
|
83,470
|
|||||||||||||
Adjusted operating margin before management fee
|
39.3
|
%
|
39.4
|
%
|
39.3
|
%
|
39.2
|
%
|
|||||||||
2nd Quarter
|
YTD June
|
||||||||||||||||
2015
|
2014
|
2015
|
2014
|
||||||||||||||
Operating income
|
$
|
34,949
|
$
|
37,537
|
$
|
68,894
|
$
|
74,036
|
|||||||||
Adjustments:
|
|||||||||||||||||
Add back:
|
Incremental RSA expense
|
570
|
-
|
1,147
|
-
|
||||||||||||
|
Costs to launch Closed-end fund
|
-
|
-
|
1,000
|
-
|
||||||||||||
|
Costs related to potential firm restructuring
|
625
|
-
|
1,475
|
-
|
||||||||||||
Deduct:
|
Reimbursement of prior year expense
|
-
|
-
|
-
|
(438
|
)
|
|||||||||||
Adjusted operating income
|
36,144
|
37,537
|
72,516
|
73,598
|
|||||||||||||
Adjusted operating margin
|
35.2
|
%
|
34.7
|
%
|
35.1
|
%
|
34.6
|
%
|
|||||||||
The Company reported Assets Under Management as follows (in millions):
|
||||||||||||||||||||
Table I: Fund Flows - 2nd Quarter 2015
|
||||||||||||||||||||
Fund
|
||||||||||||||||||||
Market
|
distributions,
|
|||||||||||||||||||
March 31,
|
appreciation/
|
Net cash
|
net of
|
June 30,
|
||||||||||||||||
2015
|
(depreciation)
|
flows
|
reinvestments
|
2015
|
||||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
16,643
|
$
|
(106
|
)
|
$
|
(538
|
)
|
$
|
(15
|
)
|
$
|
15,984
|
|||||||
Closed-end Funds
|
7,071
|
29
|
(2
|
)
|
(117
|
)
|
6,981
|
|||||||||||||
Institutional & PWM - direct
|
16,407
|
(15
|
)
|
(381
|
)
|
-
|
16,011
|
|||||||||||||
Institutional & PWM - sub-advisory
|
3,814
|
(29
|
)
|
(82
|
)
|
-
|
3,703
|
|||||||||||||
Investment Partnerships
|
928
|
8
|
1
|
-
|
937
|
|||||||||||||||
SICAV (a)
|
105
|
1
|
46
|
-
|
152
|
|||||||||||||||
Total Equities
|
44,968
|
(112
|
)
|
(956
|
)
|
(132
|
)
|
43,768
|
||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,520
|
-
|
80
|
-
|
1,600
|
|||||||||||||||
Institutional & PWM
|
52
|
-
|
(6
|
)
|
-
|
46
|
||||||||||||||
Total Fixed Income
|
1,572
|
-
|
74
|
-
|
1,646
|
|||||||||||||||
Total Assets Under Management
|
$
|
46,540
|
$
|
(112
|
)
|
$
|
(882
|
)
|
$
|
(132
|
)
|
$
|
45,414
|
|||||||
Table II: Fund Flows - Year to date June 2015
|
||||||||||||||||||||
Fund
|
||||||||||||||||||||
Market
|
distributions,
|
|||||||||||||||||||
December 31,
|
appreciation/
|
Net cash
|
net of
|
June 30,
|
||||||||||||||||
2014
|
(depreciation)
|
flows
|
reinvestments
|
2015
|
||||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
17,684
|
$
|
79
|
$
|
(1,737
|
)
|
$
|
(42
|
)
|
$
|
15,984
|
||||||||
Closed-end Funds
|
6,949
|
122
|
143
|
(233
|
)
|
6,981
|
||||||||||||||
Institutional & PWM - direct
|
16,597
|
125
|
(711
|
)
|
-
|
16,011
|
||||||||||||||
Institutional & PWM - sub-advisory
|
3,704
|
143
|
(144
|
)
|
-
|
3,703
|
||||||||||||||
Investment Partnerships
|
905
|
27
|
5
|
-
|
937
|
|||||||||||||||
SICAV (a)
|
135
|
(4
|
)
|
21
|
-
|
152
|
||||||||||||||
Total Equities
|
45,974
|
492
|
(2,423
|
)
|
(275
|
)
|
43,768
|
|||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,455
|
-
|
145
|
-
|
1,600
|
|||||||||||||||
Institutional & PWM
|
58
|
-
|
(12
|
)
|
-
|
46
|
||||||||||||||
Total Fixed Income
|
1,513
|
-
|
133
|
-
|
1,646
|
|||||||||||||||
Total Assets Under Management
|
$
|
47,487
|
$
|
492
|
$
|
(2,290
|
)
|
$
|
(275
|
)
|
$
|
45,414
|
||||||||
Table III
|
||||||||||||
GAMCO INVESTORS, INC.
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
For the Quarter Ended June 30,
|
||||||||||||
% Inc.
|
||||||||||||
2015
|
2014
|
(Dec.)
|
||||||||||
Investment advisory and incentive fees
|
$
|
87,344
|
$
|
90,156
|
(3.1
|
%)
|
||||||
Distribution fees and other income
|
13,358
|
15,767
|
(15.3
|
)
|
||||||||
Institutional research services
|
2,002
|
2,373
|
(15.6
|
)
|
||||||||
Total revenues
|
102,704
|
108,296
|
(5.2
|
)
|
||||||||
Compensation costs
|
43,402
|
44,045
|
(1.5
|
)
|
||||||||
Distribution costs
|
13,120
|
15,023
|
(12.7
|
)
|
||||||||
Other operating expenses
|
6,992
|
6,547
|
6.8
|
|||||||||
Total expenses
|
63,514
|
65,615
|
(3.2
|
)
|
||||||||
Operating income before management fee
|
39,190
|
42,681
|
(8.2
|
)
|
||||||||
Investment income
|
5,184
|
10,942
|
||||||||||
Interest expense
|
(1,963
|
)
|
(2,021
|
)
|
||||||||
Other income, net
|
3,221
|
8,921
|
||||||||||
Income before management fee and income taxes
|
42,411
|
51,602
|
(17.8
|
)
|
||||||||
Management fee expense
|
4,241
|
5,144
|
||||||||||
Income before income taxes
|
38,170
|
46,458
|
(17.8
|
)
|
||||||||
Income tax expense
|
14,123
|
17,135
|
||||||||||
Net income
|
24,047
|
29,323
|
(18.0
|
)
|
||||||||
Net income/(loss) attributable to noncontrolling interests
|
(54
|
)
|
373
|
|||||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
24,101
|
$
|
28,950
|
(16.7
|
)
|
||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
||||||||||||
Basic
|
$
|
0.96
|
$
|
1.14
|
(15.8
|
)
|
||||||
Diluted
|
$
|
0.95
|
$
|
1.13
|
(15.9
|
)
|
||||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
25,065
|
25,381
|
(1.2
|
)
|
||||||||
Diluted
|
25,358
|
25,586
|
(0.9
|
)
|
||||||||
Actual shares outstanding (a)
|
25,725
|
25,899
|
(0.7
|
)
|
||||||||
Notes:
|
||||||||||||
(a) Includes 704,050 and 564,250 of RSAs, respectively.
|
||||||||||||
See GAAP to non-GAAP reconciliation on page 10.
|
Table IV
|
||||||||||||
GAMCO INVESTORS, INC.
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
For the Six Months Ended June 30,
|
||||||||||||
% Inc.
|
||||||||||||
2015
|
2014
|
(Dec.)
|
||||||||||
Investment advisory and incentive fees
|
$
|
175,381
|
$
|
177,953
|
(1.4
|
%)
|
||||||
Distribution fees and other income
|
27,101
|
30,640
|
(11.6
|
)
|
||||||||
Institutional research services
|
4,067
|
4,180
|
(2.7
|
)
|
||||||||
Total revenues
|
206,549
|
212,773
|
(2.9
|
)
|
||||||||
Compensation costs
|
87,896
|
87,942
|
(0.1
|
)
|
||||||||
Distribution costs
|
27,403
|
28,986
|
(5.5
|
)
|
||||||||
Other operating expenses
|
13,678
|
11,937
|
14.6
|
|||||||||
Total expenses
|
128,977
|
128,865
|
0.1
|
|||||||||
Operating income before management fee
|
77,572
|
83,908
|
(7.6
|
)
|
||||||||
Investment income
|
13,196
|
19,027
|
||||||||||
Interest expense
|
(3,982
|
)
|
(4,013
|
)
|
||||||||
Other income, net
|
9,214
|
15,014
|
||||||||||
Income before management fee and income taxes
|
86,786
|
98,922
|
(12.3
|
)
|
||||||||
Management fee expense
|
8,678
|
9,872
|
||||||||||
Income before income taxes
|
78,108
|
89,050
|
(12.3
|
)
|
||||||||
Income tax expense
|
29,302
|
31,751
|
||||||||||
Net income
|
48,806
|
57,299
|
(14.8
|
)
|
||||||||
Net income/(loss) attributable to noncontrolling interests
|
(71
|
)
|
395
|
|||||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
48,877
|
$
|
56,904
|
(14.1
|
)
|
||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
||||||||||||
Basic
|
$
|
1.95
|
$
|
2.24
|
(12.9
|
)
|
||||||
Diluted
|
$
|
1.93
|
$
|
2.22
|
(13.1
|
)
|
||||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
25,098
|
25,431
|
(1.3
|
)
|
||||||||
Diluted
|
25,386
|
25,635
|
(1.0
|
)
|
||||||||
Actual shares outstanding (a)
|
25,725
|
25,899
|
(0.7
|
)
|
||||||||
Notes:
|
||||||||||||
(a) Includes 704,050 and 564,250 of RSAs, respectively.
|
||||||||||||
See GAAP to non-GAAP reconciliation on page 10.
|
Table V
|
||||||||||||||||||||||||||||||||
GAMCO INVESTORS, INC.
|
||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||||||||||
1st
|
2nd
|
1st
|
2nd
|
3rd
|
4th
|
|||||||||||||||||||||||||||
Quarter
|
Quarter
|
YTD
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Full Year
|
|||||||||||||||||||||||||
Income Statement Data:
|
||||||||||||||||||||||||||||||||
Revenues
|
$
|
103,845
|
$
|
102,704
|
$
|
206,549
|
$
|
104,477
|
$
|
108,296
|
$
|
110,858
|
$
|
116,751
|
$
|
440,382
|
||||||||||||||||
Expenses
|
65,463
|
63,514
|
128,977
|
63,250
|
65,615
|
63,516
|
69,848
|
262,229
|
||||||||||||||||||||||||
Operating income before
|
||||||||||||||||||||||||||||||||
management fee
|
38,382
|
39,190
|
77,572
|
41,227
|
42,681
|
47,342
|
46,903
|
178,153
|
||||||||||||||||||||||||
Investment income/(loss)
|
8,012
|
5,184
|
13,196
|
8,085
|
11,076
|
(8,002
|
)
|
5,119
|
16,278
|
|||||||||||||||||||||||
Interest expense
|
(2,019
|
)
|
(1,963
|
)
|
(3,982
|
)
|
(1,992
|
)
|
(2,021
|
)
|
(1,987
|
)
|
(2,049
|
)
|
(8,049
|
)
|
||||||||||||||||
Shareholder-designated contribution
|
-
|
-
|
-
|
-
|
(134
|
)
|
-
|
-
|
(134
|
)
|
||||||||||||||||||||||
Other income/(expense), net
|
5,993
|
3,221
|
9,214
|
6,093
|
8,921
|
(9,989
|
)
|
3,070
|
8,095
|
|||||||||||||||||||||||
Income before management
|
||||||||||||||||||||||||||||||||
fee and income taxes
|
44,375
|
42,411
|
86,786
|
47,320
|
51,602
|
37,353
|
49,973
|
186,248
|
||||||||||||||||||||||||
Management fee expense
|
4,437
|
4,241
|
8,678
|
4,728
|
5,144
|
3,756
|
4,999
|
18,627
|
||||||||||||||||||||||||
Income before income taxes
|
39,938
|
38,170
|
78,108
|
42,592
|
46,458
|
33,597
|
44,974
|
167,621
|
||||||||||||||||||||||||
Income tax expense
|
15,179
|
14,123
|
29,302
|
14,616
|
17,135
|
13,045
|
17,709
|
62,505
|
||||||||||||||||||||||||
Net income
|
24,759
|
24,047
|
48,806
|
27,976
|
29,323
|
20,552
|
27,265
|
105,116
|
||||||||||||||||||||||||
Net income/(loss) attributable
|
||||||||||||||||||||||||||||||||
to noncontrolling interests
|
(17
|
)
|
(54
|
)
|
(71
|
)
|
22
|
373
|
(3,113
|
)
|
(1,556
|
)
|
(4,274
|
)
|
||||||||||||||||||
Net income attributable to
|
||||||||||||||||||||||||||||||||
GAMCO Investors, Inc.
|
$
|
24,776
|
$
|
24,101
|
$
|
48,877
|
$
|
27,954
|
$
|
28,950
|
$
|
23,665
|
$
|
28,821
|
$
|
109,390
|
||||||||||||||||
Net income per share
|
||||||||||||||||||||||||||||||||
attributable to GAMCO
|
||||||||||||||||||||||||||||||||
Investors, Inc.:
|
||||||||||||||||||||||||||||||||
Basic
|
$
|
0.99
|
$
|
0.96
|
$
|
1.95
|
$
|
1.10
|
$
|
1.14
|
$
|
0.94
|
$
|
1.14
|
$
|
4.32
|
||||||||||||||||
Diluted
|
$
|
0.97
|
$
|
0.95
|
$
|
1.93
|
$
|
1.09
|
$
|
1.13
|
$
|
0.93
|
$
|
1.13
|
$
|
4.28
|
||||||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||||||||||||||||||
Basic
|
25,132
|
25,065
|
25,098
|
25,481
|
25,381
|
25,296
|
25,184
|
25,335
|
||||||||||||||||||||||||
Diluted
|
25,414
|
25,358
|
25,386
|
25,684
|
25,586
|
25,517
|
25,449
|
25,558
|
||||||||||||||||||||||||
Reconciliation of non-GAAP
|
||||||||||||||||||||||||||||||||
financial measures to GAAP:
|
||||||||||||||||||||||||||||||||
Operating income before
|
||||||||||||||||||||||||||||||||
management fee
|
38,382
|
39,190
|
77,572
|
41,227
|
42,681
|
47,342
|
46,903
|
178,153
|
||||||||||||||||||||||||
Deduct: management fee expense
|
4,437
|
4,241
|
8,678
|
4,728
|
5,144
|
3,756
|
4,999
|
18,627
|
||||||||||||||||||||||||
Operating income
|
$
|
33,945
|
$
|
34,949
|
$
|
68,894
|
$
|
36,499
|
$
|
37,537
|
$
|
43,586
|
$
|
41,904
|
$
|
159,526
|
||||||||||||||||
Operating margin before
|
||||||||||||||||||||||||||||||||
management fee
|
37.0
|
%
|
38.2
|
%
|
37.6
|
%
|
39.5
|
%
|
39.4
|
%
|
42.7
|
%
|
40.2
|
%
|
40.5
|
%
|
||||||||||||||||
Operating margin after
|
||||||||||||||||||||||||||||||||
management fee
|
32.7
|
%
|
34.0
|
%
|
33.4
|
%
|
34.9
|
%
|
34.7
|
%
|
39.3
|
%
|
35.9
|
%
|
36.2
|
%
|
||||||||||||||||
Table VI
|
||||||||||||
GAMCO INVESTORS, INC.
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
June 30,
|
December 31,
|
June 30,
|
||||||||||
2015
|
2014
|
2014
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
$
|
372,284
|
$
|
298,224
|
$
|
307,490
|
||||||
Investments (a)
|
379,263
|
406,711
|
374,283
|
|||||||||
Receivable from brokers
|
56,579
|
76,079
|
58,945
|
|||||||||
Other receivables
|
40,001
|
67,228
|
43,875
|
|||||||||
Income tax receivable
|
2,303
|
2,477
|
1,077
|
|||||||||
Other assets
|
15,556
|
15,711
|
19,132
|
|||||||||
Total assets
|
$
|
865,986
|
$
|
866,430
|
$
|
804,802
|
||||||
LIABILITIES AND EQUITY
|
||||||||||||
Payable to brokers
|
$
|
48,858
|
$
|
43,409
|
$
|
19,859
|
||||||
Income taxes payable and deferred tax liabilities
|
21,266
|
27,939
|
31,029
|
|||||||||
Compensation payable
|
68,889
|
39,983
|
68,908
|
|||||||||
Securities sold short, not yet purchased
|
9,825
|
10,595
|
14,329
|
|||||||||
Accrued expenses and other liabilities
|
37,458
|
36,212
|
38,823
|
|||||||||
Sub-total
|
186,296
|
158,138
|
172,948
|
|||||||||
5.875% Senior notes (due June 1, 2021)
|
100,000
|
100,000
|
100,000
|
|||||||||
0% Subordinated Debentures (due December 31, 2015) (b)
|
6,628
|
12,163
|
11,813
|
|||||||||
Total debt
|
106,628
|
112,163
|
111,813
|
|||||||||
Total liabilities
|
292,924
|
270,301
|
284,761
|
|||||||||
Redeemable noncontrolling interests
|
5,943
|
68,334
|
22,806
|
|||||||||
GAMCO Investors, Inc.'s stockholders' equity
|
564,430
|
525,061
|
494,418
|
|||||||||
Noncontrolling interests
|
2,689
|
2,734
|
2,817
|
|||||||||
Total equity
|
567,119
|
527,795
|
497,235
|
|||||||||
Total liabilities and equity
|
$
|
865,986
|
$
|
866,430
|
$
|
804,802
|
||||||
(a) Includes investments in sponsored registered investment companies of $126.3 million, $39.5 million and $40.8 million, respectively.
|
||||||||||||
(b) The 0% Subordinated Debentures due December 31, 2015 have a face value of $6.9 million, $13.1 million and $13.2 million, respectively.
|