New York
|
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 9.01. Financial Statements and Exhibits.
|
|
Date:
|
November 7, 2011 |
|
|
Exhibit Index
|
Exhibit No.
|
|
99.1 | GAMCO’s Press Release, dated November 7, 2011. |
For Immediate Release:
|
Contact:
|
Robert S. Zuccaro
|
Executive Vice President
and Chief Financial Officer
|
||
(914) 921-5088
|
||
For further information please visit
|
||
www.gabelli.com
|
-
|
Revenues increase 28.4%
|
-
|
Operating income before management fee at $32 million up 39%
|
-
|
Other income has negative pre-tax swing of $31.3 million
|
-
|
Earnings of $0.29 per diluted share vs. $0.73 in prior year
|
-
|
Our open-end equity funds’ AUM were $11.5 billion on September 30, 2011, 15.1% higher than the $10.0 billion on September 30, 2010 and 11.2% lower than the $12.9 billion on June 30, 2011.
|
-
|
Our closed-end funds had AUM of $5.4 billion on September 30, 2011, up 6.4% from $5.0 billion on September 30, 2010 but down 14.4% from $6.3 billion on June 30, 2011.
|
-
|
Our institutional and private wealth management business ended the quarter with $12.0 billion in AUM, declining 3.2% from the $12.4 billion on September 30, 2010 and 18.4% below the June 30, 2011 level of $14.7 billion.
|
-
|
Our investment partnerships’ AUM were $627 million on September 30, 2011 versus $466 million on September 30, 2010 and $609 million on June 30, 2011.
|
-
|
AUM in The Gabelli U.S. Treasury Money Market Fund, our 100% U.S. Treasury money market fund, which is ranked #1 by Lipper based on total return among 70 U.S. Treasury Money Market Funds for the twelve month period ended September 30, 2011, were $1.9 billion at September 30, 2011, increasing 15.3% from the $1.6 billion at both June 30, 2011 and September 30, 2010.1
|
-
|
In addition to management fees, we earn incentive fees for certain institutional client assets, assets attributable to preferred issues for our closed-end funds, our GDL Fund (NYSE: GDL) and investment partnership assets. As of September 30, 2011, assets with incentive based fees were $3.4 billion, unchanged from the $3.4 billion on September 30, 2010 and 10.5% below the $3.8 billion on June 30, 2011. The majority of these assets have calendar year-end measurement periods; therefore, our incentive fees are primarily recognized in the fourth quarter when the uncertainty is removed at the end of the annual measurement period.
|
-
|
Open-end fund revenues for the third quarter 2011 were $30.4 million versus $23.9 million in third quarter 2010, an increase of 27.2%. Driving revenue growth was a 27.3% increase in average AUM to $14.0 billion in the 2011 quarter vs. $11.0 billion in the prior year period.
|
-
|
Our closed-end fund revenues rose 29.0% to $12.0 million in the third quarter 2011 from $9.3 million in third quarter 2010. Average closed-end fund AUM, excluding certain closed-end fund preferred share assets that generate annual performance based fees, rose 28.8%. Asset growth was driven by market performance and benefited from the launch of our new fund, the Gabelli Natural Resources, Gold & Income Trust (NYSE: GNT), which added $392 million in AUM during the first quarter of 2011.
|
-
|
Institutional and private wealth management account revenues, which are generally based upon beginning of quarter AUM, increased 33.7% to $21.8 million in third quarter 2011 from $16.3 million in third quarter 2010. The increase was primarily related to higher AUM due to market appreciation. During the third quarter of 2011, we earned $1.0 million in incentive fees from certain accounts that changed from an annual measurement period to a quarterly measurement period. There were no incentive fees recorded in the 2010 quarter.
|
-
|
Investment partnership revenues for third quarter 2011 were $1.1 million, an increase of 57.1% from $0.7 million in third quarter 2010 as average assets managed in these funds rose 41.4% quarter over quarter.
|
-
|
Open-end fund revenues for the nine months ended September 30, 2011 were $89.6 million versus $69.2 million for the nine months ended September 30, 2010, an increase of 29.5% resulting from a 28.4% increase in average AUM.
|
-
|
Our closed-end fund revenues rose 34.8% to $36.4 million for the nine months ended September 30, 2011 from $27.0 million in 2010. Average AUM in our closed-end funds, excluding certain closed-end fund preferred share assets for which we earn our fees annually based upon performance, rose 33.4% and include $392 million in AUM from the launch of GNT during the first quarter of 2011.
|
-
|
Institutional and private wealth management account revenues increased 32.9% to $68.3 million for the nine months ended September 30, 2011 from $51.4 million for the nine months ended September 30, 2010. The increase was primarily related to higher incentive fees and higher AUM resulting from market appreciation. For the first nine months of 2011, we earned $6.6 million in incentive fees as compared to $1.8 million in the first nine months of 2010, in part due to certain accounts changing from an annual measurement period to a quarterly measurement period.
|
-
|
Investment partnership revenues for the nine months ended September 30, 2011 rose 31.8% to $2.9 million from $2.2 million in 2010, due primarily to an increase in AUM.
|
-
|
G.distributors, LLC, our new broker-dealer formed to distribute the Gabelli, GAMCO and Teton families of mutual funds, commenced operation on August 1, 2011.
|
-
|
GAMCO International SICAV has two active sub-funds, GAMCO Strategic Value and GAMCO Merger Arbitrage, which are marketed to our international clients. The GAMCO Strategic Value Fund invests in a broad range of readily marketable securities. The GAMCO Merger Arbitrage Fund invests in announced equity merger and acquisition transactions.
|
-
|
In September, Gabelli & Company, Inc., our Institutional Research services subsidiary, held its 17th Annual Aircraft Supplier Conference featuring management presentations from several leading aerospace and defense companies, with an emphasis on industry dynamics, new technologies, and company fundamentals.
|
A. Adjusted cash and investments per share:
|
(in millions, except per share data)
|
9/30/2011
|
6/30/2011
|
12/31/2010
|
9/30/2010
|
||||||||||||
Cash and cash equivalents
|
$ | 335.7 | $ | 260.8 | $ | 169.6 | $ | 244.1 | ||||||||
Investments (trading)
|
272.6 | 349.5 | 266.7 | 195.2 | ||||||||||||
Total cash and investments (trading)
|
608.3 | 610.3 | 436.3 | 439.3 | ||||||||||||
Net amounts receivable from/(payable to) brokers
|
51.5 | 33.0 | 45.1 | 58.1 | ||||||||||||
Adjusted cash and investments (trading)
|
659.8 | 643.3 | 481.4 | 497.4 | ||||||||||||
Investments (available for sale)
|
89.2 | 102.2 | 102.3 | 143.9 | ||||||||||||
Gross adjusted cash and investments
|
749.0 | 745.5 | 583.7 | 641.3 | ||||||||||||
Less: Debt, noncontrolling interests and mandatorily redeemable shares
|
305.2 | 301.5 | 190.6 | 179.7 | ||||||||||||
Total adjusted cash and investments
|
$ | 443.8 | $ | 444.0 | $ | 393.1 | $ | 461.6 | ||||||||
Shares outstanding
|
26.8 | 26.8 | 27.1 | 27.3 | ||||||||||||
Total adjusted cash and investments per share
|
$ | 16.58 | $ | 16.57 | $ | 14.53 | $ | 16.93 |
(in millions, except per share data)
|
9/30/2011
|
6/30/2011
|
12/31/2010
|
9/30/2010
|
||||||||||||
Stockholders' book value
|
$ | 404.0 | $ | 405.1 | $ | 386.0 | $ | 441.1 | ||||||||
Shares outstanding
|
26.8 | 26.8 | 27.1 | 27.3 | ||||||||||||
Stockholders' book value per share
|
$ | 15.09 | $ | 15.12 | $ | 14.27 | $ | 16.18 |
C.
|
Operating income before management fee expense is used by management for purposes of evaluating 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 VII.
|
D.
|
Incentive fees, net of related expenses and taxes, per diluted share:
|
Fourth
|
||||
(in thousands, except per share data)
|
Quarter 2010
|
|||
Performance fee revenue
|
$ | 24,839 | ||
Related expenses and taxes
|
16,629 | |||
Net income
|
$ | 8,210 | ||
Incentive fees per share
|
$ | 0.30 | ||
Diluted weighted average shares outstanding | 27,260 |
E.
|
RSA expense, net of management fee and tax benefit, per diluted share:
|
Fourth
|
||||
(in thousands, except per share data)
|
Quarter 2010
|
|||
Accelerated RSA expnse
|
$ | 5,797 | ||
Related benefits and tax benefit
|
2,521 | |||
Net loss
|
$ | 3,276 | ||
Accelerated RSA expense per share
|
$ | 0.12 | ||
Diluted weighted average shares outstanding | 27,260 |
F.
|
Operating income before management fee expense per share and other income, net per share is used by management for purposes of evaluating its business operations. We believe this measure is 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 swing of $31.3 million in other income is calculated by taking the expense of $18.7 million in the third quarter 2011 and subtracting the income of $12.6 million in the third quarter of 2010. The impact on fully diluted earnings per share of ($0.62) is 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, net per share to net income per fully diluted share is provided below.
|
3rd Quarter
|
YTD September
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Operating income before management fee
|
$ | 32,048 | $ | 23,049 | $ | 90,044 | $ | 68,827 | ||||||||
Management fee expense
|
(3,262 | ) | (2,277 | ) | (9,007 | ) | (6,841 | ) | ||||||||
Tax expense
|
(11,571 | ) | (7,552 | ) | (29,953 | ) | (22,647 | ) | ||||||||
Noncontrolling interest (expense)/income
|
126 | 114 | 577 | 156 | ||||||||||||
Operating income (after management fee and taxes)
|
17,341 | 13,334 | 51,661 | 39,495 | ||||||||||||
per fully diluted share
|
$ | 0.65 | $ | 0.47 | $ | 1.93 | $ | 1.42 | ||||||||
Other income, net
|
$ | (18,747 | ) | $ | 12,633 | $ | (8,811 | ) | $ | 5,274 | ||||||
Management fee expense
|
1,875 | (1,263 | ) | 881 | (527 | ) | ||||||||||
Tax expense
|
6,782 | (4,134 | ) | 2,931 | (1,734 | ) | ||||||||||
Noncontrolling interest expense
|
402 | (464 | ) | (719 | ) | (627 | ) | |||||||||
Other income, net (after management fee and taxes)
|
$ | (9,688 | ) | $ | 6,772 | $ | (5,718 | ) | $ | 2,386 | ||||||
Add back interest on convertible notes
|
$ | - | $ | 1,275 | $ | - | $ | 1,400 | ||||||||
Management fee expense
|
- | (128 | ) | - | (140 | ) | ||||||||||
Tax expense
|
- | (427 | ) | - | (469 | ) | ||||||||||
Net income attributable to interest add back
|
- | 720 | - | 791 | ||||||||||||
per fully diluted share
|
$ | (0.36 | ) | $ | 0.26 | $ | (0.21 | ) | $ | 0.11 | ||||||
Net income per fully diluted share
|
$ | 0.29 | $ | 0.73 | $ | 1.72 | $ | 1.53 | ||||||||
Diluted weighted average shares outstanding | 26,576 | 28,364 | 26,772 | 27,818 |
The Company reported Assets Under Management as follows (in millions):
|
||||||||||||||||||||
Table I: Fund Flows - 3rd Quarter 2011
|
||||||||||||||||||||
Closed-end Fund
|
||||||||||||||||||||
Market
|
distributions,
|
|||||||||||||||||||
June 30,
|
appreciation/
|
Net cash
|
net of
|
September 30,
|
||||||||||||||||
2011
|
(depreciation)
|
flows
|
reinvestments
|
2011
|
||||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$ | 12,912 | $ | (1,790 | ) | $ | 347 | $ | - | $ | 11,469 | |||||||||
Closed-end Funds
|
6,259 | (894 | ) | 94 | (104 | ) | 5,355 | |||||||||||||
Institutional & PWM - direct
|
11,735 | (2,358 | ) | 267 | - | 9,644 | ||||||||||||||
Institutional & PWM - sub-advisory
|
2,953 | (547 | ) | (80 | ) | - | 2,326 | |||||||||||||
Investment Partnerships
|
609 | (1 | ) | 19 | - | 627 | ||||||||||||||
Total Equities
|
34,468 | (5,590 | ) | 647 | (104 | ) | 29,421 | |||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,643 | - | 252 | - | 1,895 | |||||||||||||||
Institutional & PWM
|
26 | - | - | - | 26 | |||||||||||||||
Total Fixed Income
|
1,669 | - | 252 | - | 1,921 | |||||||||||||||
Total Assets Under Management
|
$ | 36,137 | $ | (5,590 | ) | $ | 899 | $ | (104 | ) | $ | 31,342 |
Table II: Fund Flows - Nine months ended September 30, 2011
|
|||||||||||||||||||||
Closed-end Fund
|
|||||||||||||||||||||
Market
|
distributions,
|
||||||||||||||||||||
December 31,
|
appreciation/
|
Net cash
|
net of
|
September 30,
|
|||||||||||||||||
2010
|
(depreciation)
|
flows
|
reinvestments
|
2011
|
|||||||||||||||||
Equities:
|
|||||||||||||||||||||
Open-end Funds
|
$ | 11,252 | $ | (1,228 | ) | $ | 1,445 | $ | - | $ | 11,469 | ||||||||||
Closed-end Funds
|
5,471 | (556 | ) | 725 |
(a)
|
(285 | ) | 5,355 | |||||||||||||
Institutional & PWM - direct
|
11,005 | (1,523 | ) | 162 | - | 9,644 | |||||||||||||||
Institutional & PWM - sub-advisory
|
2,637 | (375 | ) | 64 | - | 2,326 | |||||||||||||||
Investment Partnerships
|
515 | 8 | 104 | - | 627 | ||||||||||||||||
Total Equities
|
30,880 | (3,674 | ) | 2,500 | (285 | ) | 29,421 | ||||||||||||||
Fixed Income:
|
|||||||||||||||||||||
Money-Market Fund
|
1,616 | - | 279 | - | 1,895 | ||||||||||||||||
Institutional & PWM
|
26 | - | - | - | 26 | ||||||||||||||||
Total Fixed Income
|
1,642 | - | 279 | - | 1,921 | ||||||||||||||||
Total Assets Under Management
|
$ | 32,522 | $ | (3,674 | ) | $ | 2,779 | $ | (285 | ) | $ | 31,342 | |||||||||
(a) Includes $392 million from the launch of a new closed-end fund.
|
Table III: Assets Under Management
|
||||||||||||
September 30,
|
September 30,
|
%
|
||||||||||
2010
|
2011
|
Inc.(Dec.)
|
||||||||||
Equities:
|
||||||||||||
Open-end Funds
|
$ | 9,962 | $ | 11,469 | 15.1 | % | ||||||
Closed-end Funds
|
5,033 | 5,355 | 6.4 | |||||||||
Institutional & PWM - direct
|
10,172 | 9,644 | (5.2 | ) | ||||||||
Institutional & PWM - sub-advisory
|
2,218 | 2,326 | 4.9 | |||||||||
Investment Partnerships
|
466 | 627 | 34.5 | |||||||||
Total Equities
|
27,851 | 29,421 | 5.6 | |||||||||
Fixed Income:
|
||||||||||||
Money-Market Fund
|
1,644 | 1,895 | 15.3 | |||||||||
Institutional & PWM
|
26 | 26 | - | |||||||||
Total Fixed Income
|
1,670 | 1,921 | 15.0 | |||||||||
Total Assets Under Management
|
$ | 29,521 | $ | 31,342 | 6.2 | % |
Table IV: Assets Under Management by Quarter
|
||||||||||||||||||||||||||||
% Increase/
|
||||||||||||||||||||||||||||
(decrease) from
|
||||||||||||||||||||||||||||
9/10 | 12/10 | 3/11 | 6/11 | 9/11 | 9/10 | 6/11 | ||||||||||||||||||||||
Equities:
|
||||||||||||||||||||||||||||
Open-end Funds
|
$ | 9,962 | $ | 11,252 | $ | 12,348 | $ | 12,912 | $ | 11,469 | 15.1 | % | (11.2 | %) | ||||||||||||||
Closed-end Funds
|
5,033 | 5,471 | 6,170 | 6,259 | 5,355 | 6.4 | (14.4 | ) | ||||||||||||||||||||
Institutional & PWM - direct
|
10,172 | 11,005 | 11,780 | 11,735 | 9,644 | (5.2 | ) | (17.8 | ) | |||||||||||||||||||
Institutional & PWM - sub-advisory
|
2,218 | 2,637 | 2,937 | 2,953 | 2,326 | 4.9 | (21.2 | ) | ||||||||||||||||||||
Investment Partnerships
|
466 | 515 | 547 | 609 | 627 | 34.5 | 3.0 | |||||||||||||||||||||
Total Equities
|
27,851 | 30,880 | 33,782 | 34,468 | 29,421 | 5.6 | (14.6 | ) | ||||||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||||||
Money-Market Fund
|
1,644 | 1,616 | 1,583 | 1,643 | 1,895 | 15.3 | 15.3 | |||||||||||||||||||||
Institutional & PWM
|
26 | 26 | 26 | 26 | 26 | - | - | |||||||||||||||||||||
Total Fixed Income
|
1,670 | 1,642 | 1,609 | 1,669 | 1,921 | 15.0 | 15.1 | |||||||||||||||||||||
Total Assets Under Management
|
$ | 29,521 | $ | 32,522 | $ | 35,391 | $ | 36,137 | $ | 31,342 | 6.2 | % | (13.3 | %) |
Table V
|
|||||||||||||
GAMCO INVESTORS, INC.
|
|||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||||
(Dollars in thousands, except per share data)
|
|||||||||||||
For the Three Months Ended September 30,
|
|||||||||||||
% Inc.
|
|||||||||||||
2011
|
2010
|
(Dec.)
|
|||||||||||
Investment advisory and incentive fees
|
$ | 65,244 | $ | 50,249 | 29.8 | % | |||||||
Institutional research services
|
3,421 | 4,005 | (14.6 | ) | |||||||||
Distribution fees and other income
|
11,486 | 8,189 | 40.3 | ||||||||||
Total revenues
|
80,151 | 62,443 | 28.4 | ||||||||||
Compensation costs
|
32,010 | 26,661 | 20.1 | ||||||||||
Distribution costs
|
11,091 | 7,710 | 43.9 | ||||||||||
Other operating expenses
|
5,002 | 5,023 | (0.4 | ) | |||||||||
Total expenses
|
48,103 | 39,394 | 22.1 | ||||||||||
Operating income before management fee
|
32,048 | 23,049 | 39.0 | ||||||||||
Investment income/(loss)
|
(14,329 | ) | 15,928 | n/m | |||||||||
Interest expense
|
(4,418 | ) | (3,295 | ) | 34.1 | ||||||||
Other income/(expense), net
|
(18,747 | ) | 12,633 | n/m | |||||||||
Income before management fee and income taxes
|
13,301 | 35,682 | (62.7 | ) | |||||||||
Management fee expense
|
1,387 | 3,540 | (60.8 | ) | |||||||||
Income before income taxes
|
11,914 | 32,142 | (62.9 | ) | |||||||||
Income tax expense
|
4,745 | 11,686 | (59.4 | ) | |||||||||
Net income
|
7,169 | 20,456 | (65.0 | ) | |||||||||
Net income/(loss) attributable to noncontrolling interests
|
(530 | ) | 350 | n/m | |||||||||
Net income attributable to GAMCO Investors, Inc.
|
$ | 7,699 | $ | 20,106 | (61.7 | ) | |||||||
Net income attributable to GAMCO Investors, Inc. per share:
|
|||||||||||||
Basic
|
$ | 0.29 | $ | 0.75 | (61.3 | ) | |||||||
Diluted
|
$ | 0.29 | $ | 0.73 | (60.3 | ) | |||||||
Weighted average shares outstanding:
|
|||||||||||||
Basic
|
26,496 |
(a)
|
26,828 | (1.2 | ) | ||||||||
Diluted
|
26,576 | 28,364 | (6.3 | %) | |||||||||
Notes:
|
|||||||||||||
(a) Shares outstanding at September 30, 2011 were 26,773,400, including 285,100 RSAs.
|
|||||||||||||
See GAAP to non-GAAP reconciliation on page 14.
|
Table VI
|
|||||||||||||
GAMCO INVESTORS, INC.
|
|||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||||
(Dollars in thousands, except per share data)
|
|||||||||||||
For the Nine Months Ended September 30,
|
|||||||||||||
% Inc.
|
|||||||||||||
2011
|
2010
|
(Dec.)
|
|||||||||||
Investment advisory and incentive fees
|
$ | 197,407 | $ | 149,862 | 31.7 | % | |||||||
Institutional research services
|
11,311 | 11,953 | (5.4 | ) | |||||||||
Distribution fees and other income
|
33,419 | 23,125 | 44.5 | ||||||||||
Total revenues
|
242,137 | 184,940 | 30.9 | ||||||||||
Compensation costs
|
99,792 | 78,745 | 26.7 | ||||||||||
Distribution costs
|
34,108 | 21,840 | 56.2 | ||||||||||
Other operating expenses
|
18,193 | 15,528 | 17.2 | ||||||||||
Total expenses
|
152,093 |
(a)
|
116,113 | 31.0 | |||||||||
Operating income before management fee
|
90,044 | 68,827 | 30.8 | ||||||||||
Investment income/(loss)
|
1,877 | 15,267 | (87.7 | ) | |||||||||
Interest expense
|
(10,688 | ) | (9,993 | ) | 7.0 | ||||||||
Other income/(expense), net
|
(8,811 | ) | 5,274 | n/m | |||||||||
Income before management fee and income taxes
|
81,233 | 74,101 | 9.6 | ||||||||||
Management fee expense
|
8,126 | 7,368 | 10.3 | ||||||||||
Income before income taxes
|
73,107 | 66,733 | 9.6 | ||||||||||
Income tax expense
|
26,978 | 24,381 | 10.7 | ||||||||||
Net income
|
46,129 | 42,352 | 8.9 | ||||||||||
Net income attributable to noncontrolling interests
|
140 | 471 | (70.3 | ) | |||||||||
Net income attributable to GAMCO Investors, Inc.
|
$ | 45,989 | $ | 41,881 | 9.8 | ||||||||
Net income attributable to GAMCO Investors, Inc. per share:
|
|||||||||||||
Basic
|
$ | 1.72 | $ | 1.55 | 11.0 | ||||||||
Diluted
|
$ | 1.72 | $ | 1.53 | 12.4 | ||||||||
Weighted average shares outstanding:
|
|||||||||||||
Basic
|
26,686 |
(b)
|
26,996 | (1.1 | ) | ||||||||
Diluted
|
26,772 | 27,818 | (3.8 | %) | |||||||||
Notes:
|
|||||||||||||
(a) Includes $0.4 million in compensation, $4.7 million in distribution costs and $0.5 million in other operating
|
|||||||||||||
expenses directly related to the launch of a new closed-end fund.
|
|||||||||||||
(b) Shares outstanding at September 30, 2011 were 26,773,400, including 285,100 RSAs.
|
|||||||||||||
See GAAP to non-GAAP reconciliation on page 14.
|
Table VII
|
||||||||||||||||||||||||||||||||||
GAMCO INVESTORS, INC.
|
||||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||||||||||||
1st
|
2nd
|
3rd
|
YTD
|
1st
|
2nd
|
3rd
|
YTD
|
4th
|
||||||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
2011
|
Quarter
|
Quarter
|
Quarter
|
2010
|
Quarter
|
Full-Year
|
|||||||||||||||||||||||||
Income Statement Data:
|
||||||||||||||||||||||||||||||||||
Revenues
|
$ | 76,905 | $ | 85,081 | $ | 80,151 | $ | 242,137 | $ | 59,998 | $ | 62,499 | $ | 62,443 | $ | 184,940 | $ | 95,440 | $ | 280,380 | ||||||||||||||
Expenses
|
53,032 |
(a)
|
50,958 | 48,103 | 152,093 | 38,180 | 38,539 | 39,394 | 116,113 | 61,225 | 177,338 | |||||||||||||||||||||||
Operating income before
|
||||||||||||||||||||||||||||||||||
management fee
|
23,873 | 34,123 | 32,048 | 90,044 | 21,818 | 23,960 | 23,049 | 68,827 | 34,215 | 103,042 | ||||||||||||||||||||||||
Investment income/(loss)
|
10,676 | 5,530 | (14,329 | ) | 1,877 | 6,047 | (6,708 | ) | 15,928 | 15,267 | 15,029 | 30,296 | ||||||||||||||||||||||
Interest expense
|
(2,867 | ) | (3,403 | ) | (4,418 | ) | (10,688 | ) | (3,292 | ) | (3,406 | ) | (3,295 | ) | (9,993 | ) | (1,991 | ) | (11,984 | ) | ||||||||||||||
Other income/(expense), net
|
7,809 | 2,127 | (18,747 | ) | (8,811 | ) | 2,755 | (10,114 | ) | 12,633 | 5,274 | 13,038 | 18,312 | |||||||||||||||||||||
Income before management
|
||||||||||||||||||||||||||||||||||
fee and income taxes
|
31,682 | 36,250 | 13,301 | 81,233 | 24,573 | 13,846 | 35,682 | 74,101 | 47,253 | 121,354 | ||||||||||||||||||||||||
Management fee expense
|
3,113 | 3,626 | 1,387 | 8,126 | 2,448 | 1,380 | 3,540 | 7,368 | 4,645 | 12,013 | ||||||||||||||||||||||||
Income before income taxes
|
28,569 | 32,624 | 11,914 | 73,107 | 22,125 | 12,466 | 32,142 | 66,733 | 42,608 | 109,341 | ||||||||||||||||||||||||
Income tax expense
|
10,288 | 11,945 | 4,745 | 26,978 | 8,294 | 4,401 | 11,686 | 24,381 | 14,945 | 39,326 | ||||||||||||||||||||||||
Net income
|
18,281 | 20,679 | 7,169 | 46,129 | 13,831 | 8,065 | 20,456 | 42,352 | 27,663 | 70,015 | ||||||||||||||||||||||||
Net income/(loss) attributable
|
||||||||||||||||||||||||||||||||||
to noncontrolling interests
|
638 | 32 | (530 | ) | 140 | 105 | 16 | 350 | 471 | 752 | 1,223 | |||||||||||||||||||||||
Net income attributable to
|
||||||||||||||||||||||||||||||||||
GAMCO Investors, Inc.
|
$ | 17,643 | $ | 20,647 | $ | 7,699 | $ | 45,989 | $ | 13,726 | $ | 8,049 | $ | 20,106 | $ | 41,881 | $ | 26,911 | $ | 68,792 | ||||||||||||||
Net income attributable to
|
||||||||||||||||||||||||||||||||||
GAMCO Investors, Inc.
|
||||||||||||||||||||||||||||||||||
per share:
|
||||||||||||||||||||||||||||||||||
Basic
|
$ | 0.66 | $ | 0.77 | $ | 0.29 | $ | 1.72 | $ | 0.50 | $ | 0.30 | $ | 0.75 | $ | 1.55 | $ | 1.00 | $ | 2.55 | ||||||||||||||
Diluted
|
$ | 0.65 | $ | 0.77 | $ | 0.29 | $ | 1.72 | $ | 0.50 | $ | 0.30 | $ | 0.73 | $ | 1.53 | $ | 0.99 | $ | 2.52 | ||||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||||||||||||||||||||
Basic
|
26,901 | 26,665 | 26,496 | 26,686 | 27,184 | 26,979 | 26,828 | 26,996 | 26,851 | 26,959 | ||||||||||||||||||||||||
Diluted
|
27,008 | 26,733 | 26,576 | 26,772 | 28,148 | 27,219 | 28,364 | 27,818 | 27,260 | 28,348 | ||||||||||||||||||||||||
Reconciliation of non-GAAP
|
||||||||||||||||||||||||||||||||||
financial measures to GAAP:
|
||||||||||||||||||||||||||||||||||
Operating income before
|
||||||||||||||||||||||||||||||||||
management fee
|
$ | 23,873 | $ | 34,123 | $ | 32,048 | $ | 90,044 | $ | 21,818 | $ | 23,960 | $ | 23,049 | $ | 68,827 | $ | 34,215 | $ | 103,042 | ||||||||||||||
Deduct: management fee expense
|
3,113 | 3,626 | 1,387 | 8,126 | 2,448 | 1,380 | 3,540 | 7,368 | 4,645 | 12,013 | ||||||||||||||||||||||||
Operating income
|
$ | 20,760 | $ | 30,497 | $ | 30,661 | $ | 81,918 | $ | 19,370 | $ | 22,580 | $ | 19,509 | $ | 61,459 | $ | 29,570 | $ | 91,029 | ||||||||||||||
Operating margin before
|
||||||||||||||||||||||||||||||||||
management fee
|
31.0 | % | 40.1 | % | 40.0 | % | 37.2 | % | 36.4 | % | 38.3 | % | 36.9 | % | 37.2 | % | 35.8 | % | 36.8 | % | ||||||||||||||
Operating margin after
|
||||||||||||||||||||||||||||||||||
management fee
|
27.0 | % | 35.8 | % | 38.3 | % | 33.8 | % | 32.3 | % | 36.1 | % | 31.2 | % | 33.2 | % | 31.0 | % | 32.5 | % | ||||||||||||||
(a) Includes $5.6 million in expenses directly related to the launch of a new closed-end fund.
|
Table VIII
|
||||||||||||
GAMCO INVESTORS, INC.
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
September 30,
|
December 31,
|
September 30,
|
||||||||||
2011
|
2010
|
2010
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents (a)
|
$ | 335,656 | $ | 169,601 | $ | 294,271 | ||||||
Investments
|
368,609 | 388,357 | 307,454 | |||||||||
Receivable from brokers
|
67,064 | 46,621 | 62,209 | |||||||||
Other receivables
|
31,831 | 51,744 | 22,861 | |||||||||
Income tax receivable and deferred tax assets
|
227 | 325 | - | |||||||||
Other assets
|
17,503 | 16,088 | 15,424 | |||||||||
Total assets
|
$ | 820,890 | $ | 672,736 | $ | 702,219 | ||||||
LIABILITIES AND EQUITY
|
||||||||||||
Payable to brokers
|
$ | 15,590 | $ | 1,554 | $ | 4,151 | ||||||
Income taxes payable
|
21,235 | 23,225 | 4,533 | |||||||||
Compensation payable
|
31,559 | 23,771 | 23,575 | |||||||||
Securities sold short, not yet purchased
|
6,743 | 19,299 | 18,446 | |||||||||
Accrued expenses and other liabilities
|
38,040 | 29,715 | 32,000 | |||||||||
Sub-total
|
113,167 | 97,564 | 82,705 | |||||||||
5.5% Senior notes (due May 15, 2013)
|
99,000 | 99,000 | 99,000 | |||||||||
5.875% Senior notes (due June 1, 2021)
|
100,000 | - | - | |||||||||
Zero coupon subordinated debentures (due December 31, 2015) (b)
|
62,973 | 59,580 | - | |||||||||
6.5% Convertible note (due October 2, 2018; repaid October 13, 2010)
|
- | - | 60,000 | |||||||||
Total debt
|
261,973 | 158,580 | 159,000 | |||||||||
Total liabilities
|
375,140 | 256,144 | 241,705 | |||||||||
Redeemable noncontrolling interests
|
38,050 | 26,984 | 15,994 | |||||||||
GAMCO Investors, Inc.'s stockholders' equity
|
404,000 | 386,029 | 441,140 | |||||||||
Noncontrolling interests
|
3,700 | 3,579 | 3,380 | |||||||||
Total equity
|
407,700 | 389,608 | 444,520 | |||||||||
Total liabilities and equity
|
$ | 820,890 | $ | 672,736 | $ | 702,219 | ||||||
(a) At September 30, 2010, $62.3 million was held in escrow for the 6.5% Convertible note and classified as cash and cash
|
||||||||||||
equivalents.
|
||||||||||||
(b) The zero coupon subordinated debentures due December 31, 2015 have a face value of $86.4 million.
|
GABELLI/GAMCO FUNDS
|
Gabelli/GAMCO Funds Lipper Rankings as of September 30, 2011
|
||||||||
1 Yr - 9/30/10-9/30/11
|
3 Yrs - 9/30/08-9/30/11
|
5 Yrs - 9/30/06-9/30/11
|
10 Yrs - 9/30/01-9/30/11
|
||||||
Percentile
|
Rank /
|
Percentile
|
Rank /
|
Percentile
|
Rank /
|
Percentile
|
Rank /
|
||
Fund Name
|
Lipper Category
|
Rank
|
Total Funds
|
Rank
|
Total Funds
|
Rank
|
Total Funds
|
Rank
|
Total Funds
|
Gabelli Asset; AAA
|
Multi-Cap Core Funds
|
32
|
247/794
|
13
|
83/690
|
7
|
36/580
|
10
|
29/296
|
Gabelli Value Fund; A
|
Multi-Cap Growth Funds
|
50
|
247/500
|
22
|
88/413
|
45
|
147/333
|
37
|
83/228
|
Gabelli SRI; AAA
|
Mid-Cap Growth Funds
|
56
|
224/401
|
6
|
18/355
|
-
|
-
|
-
|
-
|
Gabelli Eq:Eq Inc; AAA
|
Equity Income Funds
|
47
|
133/288
|
26
|
64/251
|
25
|
49/202
|
9
|
10/103
|
GAMCO Growth; AAA
|
Large-Cap Growth Funds
|
88
|
683/777
|
85
|
573/676
|
83
|
483/587
|
84
|
310/371
|
Gabelli Eq:SC Gro; AAA
|
Small-Cap Core Funds
|
48
|
347/730
|
20
|
132/659
|
10
|
49/531
|
9
|
28/315
|
Gabelli Eq:Wd SCV; AAA
|
Small-Cap Core Funds
|
92
|
667/730
|
84
|
554/659
|
43
|
226/531
|
-
|
-
|
GAMCO Gl:Oppty; AAA
|
Global Large-Cap Growth
|
48
|
53/111
|
10
|
10/100
|
36
|
27/74
|
10
|
4/39
|
GAMCO Gl:Growth; AAA
|
Global Large-Cap Growth
|
59
|
65/111
|
44
|
44/100
|
40
|
30/74
|
53
|
21/39
|
GAMCO Gold; AAA
|
Precious Metal Funds
|
52
|
38/73
|
50
|
29/58
|
47
|
21/44
|
36
|
12/33
|
GAMCO Intl Gro; AAA
|
International Large-Cap Growth
|
4
|
8/247
|
2
|
3/219
|
19
|
33/180
|
32
|
37/116
|
Gabelli Bl Chp Val; AAA
|
Large-Cap Core Funds
|
87
|
960/1,107
|
58
|
569/990
|
54
|
449/835
|
42
|
212/510
|
Gabelli Inv:ABC; AAA
|
Specialty Diversified Equity Funds
|
22
|
9/40
|
49
|
15/30
|
30
|
8/26
|
10
|
1/9
|
GAMCO Mathers; AAA
|
Specialty Diversified Equity Funds
|
57
|
23/40
|
75
|
23/30
|
63
|
17/26
|
50
|
5/9
|
Comstock Cap Val; A
|
Specialty Diversified Equity Funds
|
71
|
29/40
|
88
|
27/30
|
86
|
23/26
|
70
|
7/9
|
GAMCO Gl:Telecom; AAA
|
Telecommunications Funds
|
75
|
29/38
|
75
|
24/31
|
36
|
9/24
|
20
|
4/20
|
GAMCO Gl:Vertumnus; AAA
|
Convertible Securities Funds
|
73
|
49/67
|
92
|
46/49
|
95
|
38/39
|
83
|
28/33
|
Gabelli Utilities; AAA
|
Utility Funds
|
69
|
50/72
|
39
|
26/66
|
27
|
16/59
|
40
|
16/40
|
787:Gabelli Merg&Acq; A
|
Mid-Cap Core Funds
|
16
|
48/311
|
41
|
110/273
|
37
|
82/226
|
89
|
125/141
|
Gabelli Capital Asset Fund
|
Distributed through Insurance Channel
|
25
|
77/311
|
10
|
30/293
|
21
|
51/242
|
16
|
23/144
|
% of funds in top half
|
45.0%
|
65.0%
|
73.7%
|
72.2%
|
|||||
Data presented reflects past performance, which is no guarantee of future results. Strong rankings are not indicative of positive fund performance. Absolute performance for some
|
|||||||||
funds was negative for certain periods. Other share classes are available which may have different performance characteristics.
|
|||||||||
Lipper, a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and
|
|||||||||
expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives.
|
|||||||||
Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the
|
|||||||||
total return or yield for the period. | |||||||||
Relative long-term investment performance remained strong with approximately 45%, 65%, 74% and 72% of firmwide mutual funds in the top half of their Lipper categories on a one-,
|
|||||||||
three-, five-, and ten-year total-return basis, respectively, as of September 30, 2011.
|
|||||||||
Investors should carefully consider the investment objective, risks, charges, and expenses of each fund before investing. Each fund's prospectus contains information about these
|
|||||||||
and other matters and should be read carefully before investing. Each fund’s share price will fluctuate with changes in the market value of the fund’s portfolio securities. Stocks are | |||||||||
subject to market, economic and business risks that cause their prices to fluctuate. When you sell fund shares, they may be worth less than what you paid for them. Consequently, | |||||||||
you can lose money by investing in the fund. You can obtain a prospectus by calling 800-GABELLI (422-3554), online at www.gabelli.com, or from your financial advisor. | |||||||||
Distributed by G.distributors, LLC., One Corporate Center, Rye New York, 10580. Other share classes are available that have different performance characteristics. | |||||||||
The inception date for the Gabelli SRI Green Fund was June 1, 2007. The inception date for the Gabelli Woodland Small Cap Value Fund was December 31, 2002.
|