| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
GAMCO INVESTORS, INC.
|
(Exact name of Registrant as specified in its charter)
|
New York
|
|
13-4007862
|
(State of other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
One Corporate Center, Rye, NY
|
|
10580-1422
|
(Address of principle executive offices)
|
|
(Zip Code)
|
(914) 921-3700
|
Registrant's telephone number, including area code
|
Large accelerated filer
|
|
Accelerated filer
|
|
|
|
Non-accelerated filer
|
|
Smaller reporting company
|
Class
|
|
Outstanding at July 31, 2013
|
Class A Common Stock, .001 par value
|
|
6,145,806
|
Class B Common Stock, .001 par value
|
|
19,484,174
|
INDEX
|
|||
|
|||
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
|||
|
|
||
|
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
|
|
|
||
|
|
||
Item 1.
|
Unaudited Condensed Consolidated Financial Statements
|
||
|
|
||
|
Condensed Consolidated Statements of Income:
|
||
|
- Three months ended June 30, 2013 and 2012
|
||
|
- Six months ended June 30, 2013 and 2012
|
||
|
|
||
|
Condensed Consolidated Statements of Comprehensive Income:
|
||
|
- Three months ended June 30, 2013 and 2012
|
||
|
- Six months ended June 30, 2013 and 2012
|
||
|
|
||
|
Condensed Consolidated Statements of Financial Condition:
|
||
|
- June 30, 2013
|
||
|
- December 31, 2012
|
||
|
- June 30, 2012
|
||
|
|
||
|
Condensed Consolidated Statements of Equity:
|
||
|
- Six months ended June 30, 2013 and 2012
|
||
|
|
||
|
Condensed Consolidated Statements of Cash Flows:
|
||
|
- Six months ended June 30, 2013 and 2012
|
||
|
|
||
|
Notes to Unaudited Condensed Consolidated Financial Statements
|
||
|
|
||
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
||
|
|
||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk (Included in Item 2)
|
||
|
|
||
Item 4.
|
Controls and Procedures
|
||
|
|
||
PART II.
|
OTHER INFORMATION
|
|
|
|
|
||
Item 1.
|
Legal Proceedings
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
||
Item 6.
|
Exhibits
|
SIGNATURES
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Revenues
|
||||||||||||||||
Investment advisory and incentive fees
|
$
|
77,443
|
$
|
67,210
|
$
|
150,050
|
$
|
134,993
|
||||||||
Distribution fees and other income
|
12,522
|
11,006
|
23,875
|
22,629
|
||||||||||||
Institutional research services
|
2,325
|
2,808
|
4,546
|
5,151
|
||||||||||||
Total revenues
|
92,290
|
81,024
|
178,471
|
162,773
|
||||||||||||
Expenses
|
||||||||||||||||
Compensation
|
37,759
|
32,921
|
73,411
|
67,475
|
||||||||||||
Management fee
|
4,846
|
2,615
|
8,826
|
6,799
|
||||||||||||
Distribution costs
|
11,871
|
10,012
|
22,881
|
20,189
|
||||||||||||
Other operating expenses
|
6,030
|
5,109
|
10,842
|
10,931
|
||||||||||||
Total expenses
|
60,506
|
50,657
|
115,960
|
105,394
|
||||||||||||
|
||||||||||||||||
Operating income
|
31,784
|
30,367
|
62,511
|
57,379
|
||||||||||||
Other income (expense)
|
||||||||||||||||
Net gain/(loss) from investments
|
12,141
|
(4,171
|
)
|
24,432
|
9,707
|
|||||||||||
Interest and dividend income
|
2,507
|
1,782
|
3,852
|
3,018
|
||||||||||||
Interest expense
|
(2,796
|
)
|
(4,429
|
)
|
(6,284
|
)
|
(8,833
|
)
|
||||||||
Shareholder-designated contribution
|
-
|
-
|
(5,000
|
)
|
-
|
|||||||||||
Total other income (expense), net
|
11,852
|
(6,818
|
)
|
17,000
|
3,892
|
|||||||||||
Income before income taxes
|
43,636
|
23,549
|
79,511
|
61,271
|
||||||||||||
Income tax provision
|
15,724
|
8,686
|
28,919
|
22,442
|
||||||||||||
Net income
|
27,912
|
14,863
|
50,592
|
38,829
|
||||||||||||
Net income/(loss) attributable to noncontrolling interests
|
19
|
(242
|
)
|
154
|
(112
|
)
|
||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
27,893
|
$
|
15,105
|
$
|
50,438
|
$
|
38,941
|
||||||||
|
||||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||||||||||
Basic
|
$
|
1.09
|
$
|
0.58
|
$
|
1.96
|
$
|
1.48
|
||||||||
|
||||||||||||||||
Diluted
|
$
|
1.09
|
$
|
0.57
|
$
|
1.96
|
$
|
1.47
|
||||||||
|
||||||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
25,679
|
26,258
|
25,710
|
26,338
|
||||||||||||
|
||||||||||||||||
Diluted
|
25,689
|
26,426
|
25,723
|
26,501
|
||||||||||||
|
||||||||||||||||
Dividends declared:
|
$
|
0.05
|
$
|
0.29
|
$
|
0.10
|
$
|
0.33
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Net income
|
$
|
27,912
|
$
|
14,863
|
$
|
50,592
|
$
|
38,829
|
||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||
Foreign currency translation
|
1
|
22
|
(48
|
)
|
5
|
|||||||||||
Net unrealized gains/(losses) on securities available for sale (a)
|
(6,900
|
)
|
(2,579
|
)
|
(860
|
)
|
878
|
|||||||||
Other comprehensive income
|
(6,899
|
)
|
(2,557
|
)
|
(908
|
)
|
883
|
|||||||||
|
||||||||||||||||
Comprehensive income
|
21,013
|
12,306
|
49,684
|
39,712
|
||||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests
|
(19
|
)
|
242
|
(154
|
)
|
112
|
||||||||||
|
||||||||||||||||
Comprehensive income attributable to GAMCO Investors, Inc.
|
$
|
20,994
|
$
|
12,548
|
$
|
49,530
|
$
|
39,824
|
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
2013
|
2012
|
2012
|
|||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
$
|
222,776
|
$
|
190,608
|
$
|
324,440
|
||||||
Investments in securities
|
220,440
|
218,843
|
249,630
|
|||||||||
Investments in sponsored registered investment companies
|
52,341
|
61,872
|
59,561
|
|||||||||
Investments in partnerships
|
94,535
|
97,549
|
102,119
|
|||||||||
Receivable from brokers
|
39,669
|
50,655
|
41,513
|
|||||||||
Investment advisory fees receivable
|
28,240
|
42,429
|
26,026
|
|||||||||
Income tax receivable
|
413
|
1,018
|
402
|
|||||||||
Other assets
|
25,087
|
27,759
|
23,039
|
|||||||||
Total assets
|
$
|
683,501
|
$
|
690,733
|
$
|
826,730
|
||||||
|
||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
Payable to brokers
|
$
|
14,986
|
$
|
14,346
|
$
|
20,113
|
||||||
Income taxes payable and deferred tax liabilities
|
27,864
|
25,398
|
12,846
|
|||||||||
Capital lease obligation
|
4,877
|
4,949
|
5,013
|
|||||||||
Compensation payable
|
59,643
|
10,535
|
28,985
|
|||||||||
Securities sold, not yet purchased
|
7,598
|
3,136
|
7,010
|
|||||||||
Mandatorily redeemable noncontrolling interests
|
1,322
|
1,342
|
1,352
|
|||||||||
Accrued expenses and other liabilities
|
31,971
|
26,365
|
29,641
|
|||||||||
Sub-total
|
148,261
|
86,071
|
104,960
|
|||||||||
|
||||||||||||
5.5% Senior notes (repaid May 15, 2013)
|
-
|
99,000
|
99,000
|
|||||||||
5.875% Senior notes (due June 1, 2021)
|
100,000
|
100,000
|
100,000
|
|||||||||
Zero coupon subordinated debentures, Face value: $20.5 million at June 30, 2013, $21.7
|
||||||||||||
million at December 31, 2012 and $86.3 million at June 30, 2012 (due December 31, 2015)
|
17,028
|
17,366
|
66,598
|
|||||||||
Total liabilities
|
265,289
|
302,437
|
370,558
|
|||||||||
|
||||||||||||
Redeemable noncontrolling interests
|
7,021
|
17,362
|
26,162
|
|||||||||
Commitments and contingencies (Note J)
|
||||||||||||
Equity
|
||||||||||||
GAMCO Investors, Inc. stockholders' equity
|
||||||||||||
Preferred stock, $.001 par value; 10,000,000 shares authorized;
|
||||||||||||
none issued and outstanding
|
||||||||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized;
|
||||||||||||
14,295,769, 14,203,146 and 13,781,213 issued, respectively; 6,095,806,
|
||||||||||||
6,121,585 and 6,609,863 outstanding, respectively
|
13
|
13
|
13
|
|||||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized;
|
||||||||||||
24,000,000 shares issued; 19,534,174, 19,624,174 and 20,020,730 shares
|
||||||||||||
outstanding, respectively
|
20
|
20
|
20
|
|||||||||
Additional paid-in capital
|
280,210
|
280,089
|
266,231
|
|||||||||
Retained earnings
|
456,163
|
408,295
|
439,292
|
|||||||||
Accumulated other comprehensive income
|
25,392
|
26,300
|
23,403
|
|||||||||
Treasury stock, at cost (8,199,963, 8,081,561 and 7,171,350 shares, respectively)
|
(353,385
|
)
|
(347,109
|
)
|
(302,300
|
)
|
||||||
Total GAMCO Investors, Inc. stockholders' equity
|
408,413
|
367,608
|
426,659
|
|||||||||
Noncontrolling interests
|
2,778
|
3,326
|
3,351
|
|||||||||
Total equity
|
411,191
|
370,934
|
430,010
|
|||||||||
|
||||||||||||
Total liabilities and equity
|
$
|
683,501
|
$
|
690,733
|
$
|
826,730
|
|
GAMCO Investors, Inc. stockholders
|
|||||||||||||||||||||||||||||||
|
Accumulated
|
|||||||||||||||||||||||||||||||
|
Additional
|
Other
|
Redeemable
|
|||||||||||||||||||||||||||||
|
Noncontrolling
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Noncontrolling
|
|||||||||||||||||||||||||
|
Interests
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
Interests
|
||||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
3,326
|
$
|
33
|
$
|
280,089
|
$
|
408,295
|
$
|
26,300
|
$
|
(347,109
|
)
|
$
|
370,934
|
$
|
17,362
|
|||||||||||||||
Redemptions of
|
||||||||||||||||||||||||||||||||
noncontrolling interests
|
(524
|
)
|
-
|
-
|
-
|
-
|
-
|
(524
|
)
|
(13,394
|
)
|
|||||||||||||||||||||
Contributions from
|
||||||||||||||||||||||||||||||||
noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,875
|
||||||||||||||||||||||||
Net income (loss)
|
(24
|
)
|
-
|
-
|
50,438
|
-
|
-
|
50,414
|
178
|
|||||||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax ($3,477)
|
-
|
-
|
-
|
-
|
5,921
|
-
|
5,921
|
-
|
||||||||||||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($3,982)
|
-
|
-
|
-
|
-
|
(6,781
|
)
|
-
|
(6,781
|
)
|
-
|
||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
(48
|
)
|
-
|
(48
|
)
|
-
|
||||||||||||||||||||||
Dividends declared ($0.10 per
|
||||||||||||||||||||||||||||||||
share)
|
-
|
-
|
-
|
(2,570
|
)
|
-
|
-
|
(2,570
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
29
|
-
|
-
|
-
|
29
|
-
|
||||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||
including tax benefit
|
-
|
-
|
92
|
-
|
-
|
-
|
92
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(6,276
|
)
|
(6,276
|
)
|
-
|
||||||||||||||||||||||
Balance at June 30, 2013
|
$
|
2,778
|
$
|
33
|
$
|
280,210
|
$
|
456,163
|
$
|
25,392
|
$
|
(353,385
|
)
|
$
|
411,191
|
$
|
7,021
|
GAMCO Investors, Inc. stockholders
|
||||||||||||||||||||||||||||||||
|
Accumulated
|
|||||||||||||||||||||||||||||||
|
Additional
|
Other
|
Redeemable
|
|||||||||||||||||||||||||||||
|
Noncontrolling
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Noncontrolling
|
|||||||||||||||||||||||||
|
Interests
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
Interests
|
||||||||||||||||||||||||
Balance at December 31, 2011
|
$
|
3,439
|
$
|
33
|
$
|
264,409
|
$
|
409,191
|
$
|
22,520
|
$
|
(292,181
|
)
|
$
|
407,411
|
$
|
6,071
|
|||||||||||||||
Redemptions of noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(393
|
)
|
|||||||||||||||||||||||
Contributions from
|
||||||||||||||||||||||||||||||||
noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
20,508
|
||||||||||||||||||||||||
Net income (loss)
|
(88
|
)
|
-
|
-
|
38,941
|
-
|
-
|
38,853
|
(24
|
)
|
||||||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax ($515)
|
-
|
-
|
-
|
-
|
878
|
-
|
878
|
-
|
||||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
5
|
-
|
5
|
-
|
||||||||||||||||||||||||
Dividends declared ($0.33 per
|
||||||||||||||||||||||||||||||||
share)
|
-
|
-
|
-
|
(8,840
|
)
|
-
|
-
|
(8,840
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
1,740
|
-
|
-
|
-
|
1,740
|
-
|
||||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||
including tax benefit
|
-
|
-
|
82
|
-
|
-
|
-
|
82
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(10,119
|
)
|
(10,119
|
)
|
-
|
||||||||||||||||||||||
Balance at June 30, 2012
|
$
|
3,351
|
$
|
33
|
$
|
266,231
|
$
|
439,292
|
$
|
23,403
|
$
|
(302,300
|
)
|
$
|
430,010
|
$
|
26,162
|
|
Six Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
Operating activities
|
||||||||
Net income
|
$
|
50,592
|
$
|
38,829
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Equity in net gains/(losses) from partnerships
|
1,418
|
(2,651
|
)
|
|||||
Depreciation and amortization
|
406
|
359
|
||||||
Stock based compensation expense
|
29
|
1,740
|
||||||
Deferred income taxes
|
1,421
|
1,434
|
||||||
Tax benefit from exercise of stock options
|
16
|
24
|
||||||
Foreign currency translation gain/(loss)
|
(48
|
)
|
5
|
|||||
Other-than-temporary loss on available for sale securities
|
14
|
20
|
||||||
Fair value of donated securities
|
277
|
181
|
||||||
Gains on sales of available for sale securities
|
(10,446
|
)
|
(408
|
)
|
||||
Accretion of zero coupon debentures
|
645
|
2,497
|
||||||
Loss on extinguishment of debt
|
137
|
1
|
||||||
(Increase) decrease in assets:
|
||||||||
Investments in trading securities
|
2,538
|
(10,137
|
)
|
|||||
Investments in partnerships:
|
||||||||
Contributions to partnerships
|
(8,221
|
)
|
(25,743
|
)
|
||||
Distributions from partnerships
|
9,818
|
27,168
|
||||||
Receivable from brokers
|
10,986
|
(20,601
|
)
|
|||||
Investment advisory fees receivable
|
14,189
|
6,131
|
||||||
Income tax receivable and deferred tax assets
|
605
|
(362
|
)
|
|||||
Other assets
|
2,246
|
5,466
|
||||||
Increase (decrease) in liabilities:
|
||||||||
Payable to brokers
|
640
|
9,343
|
||||||
Income taxes payable and deferred tax liabilities
|
1,551
|
(4,401
|
)
|
|||||
Compensation payable
|
49,108
|
11,289
|
||||||
Mandatorily redeemable noncontrolling interests
|
(20
|
)
|
(34
|
)
|
||||
Accrued expenses and other liabilities
|
5,530
|
4,988
|
||||||
Total adjustments
|
82,839
|
6,309
|
||||||
Net cash provided by operating activities
|
$
|
133,431
|
$
|
45,138
|
|
Six Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
Investing activities
|
||||||||
Purchases of available for sale securities
|
$
|
(3,953
|
)
|
$
|
(8
|
)
|
||
Proceeds from sales of available for sale securities
|
21,978
|
780
|
||||||
Return of capital on available for sale securities
|
625
|
842
|
||||||
Net cash provided by investing activities
|
18,650
|
1,614
|
||||||
|
||||||||
Financing activities
|
||||||||
Contributions from redeemable noncontrolling interests
|
2,875
|
20,508
|
||||||
Redemptions of redeemable noncontrolling interests
|
(13,394
|
)
|
(393
|
)
|
||||
Redemption of 5.5% Senior Notes
|
(99,000
|
)
|
-
|
|||||
Redemptions of noncontrolling interests
|
(524
|
)
|
-
|
|||||
Proceeds from exercise of stock options
|
76
|
58
|
||||||
Repurchase of zero coupon subordinated debentures
|
(1,119
|
)
|
(18
|
)
|
||||
Dividends paid
|
(2,570
|
)
|
(8,685
|
)
|
||||
Purchase of treasury stock
|
(6,275
|
)
|
(10,119
|
)
|
||||
Net cash (used in) provided by financing activities
|
(119,931
|
)
|
1,351
|
|||||
Effect of exchange rates on cash and cash equivalents
|
18
|
(3
|
)
|
|||||
Net increase in cash and cash equivalents
|
32,168
|
48,100
|
||||||
Cash and cash equivalents at beginning of period
|
190,608
|
276,340
|
||||||
Cash and cash equivalents at end of period
|
$
|
222,776
|
$
|
324,440
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
6,262
|
$
|
4,979
|
||||
Cash paid for taxes
|
$
|
25,165
|
$
|
25,479
|
||||
|
||||||||
Non-cash activity:
|
||||||||
- For the six months ended June 30, 2013 and June 30, 2012, the Company accrued dividends on restricted stock awards of $0 and $106, respectively.
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||||||||||||||
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Trading securities:
|
||||||||||||||||||||||||
Government obligations
|
$
|
27,986
|
$
|
27,996
|
$
|
42,973
|
$
|
42,989
|
$
|
50,119
|
$
|
50,139
|
||||||||||||
Common stocks
|
137,600
|
155,088
|
125,697
|
138,478
|
154,470
|
162,883
|
||||||||||||||||||
Mutual funds
|
1,074
|
1,675
|
1,072
|
1,484
|
1,086
|
1,406
|
||||||||||||||||||
Other investments
|
470
|
719
|
328
|
630
|
323
|
374
|
||||||||||||||||||
Total trading securities
|
167,130
|
185,478
|
170,070
|
183,581
|
205,998
|
214,802
|
||||||||||||||||||
|
||||||||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
Common stocks
|
14,077
|
33,478
|
14,822
|
33,560
|
15,934
|
32,815
|
||||||||||||||||||
Mutual funds
|
843
|
1,484
|
1,105
|
1,702
|
1,361
|
2,013
|
||||||||||||||||||
Total available for sale securities
|
14,920
|
34,962
|
15,927
|
35,262
|
17,295
|
34,828
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total investments in securities
|
$
|
182,050
|
$
|
220,440
|
$
|
185,997
|
$
|
218,843
|
$
|
223,293
|
$
|
249,630
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||||||||||||||
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
||||||||||||||||||
Trading securities:
|
(In thousands)
|
|||||||||||||||||||||||
Common stocks
|
$
|
7,668
|
$
|
7,381
|
$
|
2,593
|
$
|
2,867
|
$
|
6,194
|
$
|
6,687
|
||||||||||||
Other investments
|
71
|
217
|
184
|
269
|
12
|
323
|
||||||||||||||||||
Total securities sold, not yet purchased
|
$
|
7,739
|
$
|
7,598
|
$
|
2,777
|
$
|
3,136
|
$
|
6,206
|
$
|
7,010
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||||||||||||||
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Trading securities:
|
||||||||||||||||||||||||
Mutual funds
|
$
|
19
|
$
|
11
|
$
|
19
|
$
|
20
|
$
|
19
|
$
|
19
|
||||||||||||
Total trading securities
|
19
|
11
|
19
|
20
|
19
|
19
|
||||||||||||||||||
|
||||||||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
Closed-end funds
|
28,435
|
49,162
|
35,868
|
58,511
|
36,266
|
56,171
|
||||||||||||||||||
Mutual funds
|
2,040
|
3,168
|
2,055
|
3,341
|
2,198
|
3,371
|
||||||||||||||||||
Total available for sale securities
|
30,475
|
52,330
|
37,923
|
61,852
|
38,464
|
59,542
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total investments in sponsored
|
||||||||||||||||||||||||
registered investment companies
|
$
|
30,494
|
$
|
52,341
|
$
|
37,942
|
$
|
61,872
|
$
|
38,483
|
$
|
59,561
|
Amount
|
Affected Line Item in
|
Reason for
|
||||||||
Reclassified
|
in the Statements
|
Reclassification
|
||||||||
from AOCI
|
Of Income
|
from AOCI
|
||||||||
Three months ended
|
Six months ended
|
|
|
|||||||
June 30, 2013
|
June 30, 2013
|
|
|
|||||||
|
|
|||||||||
$
|
9,849
|
$
|
10,446
|
Net gain from investments
|
Realized gain / (loss) on sale of securities
|
|||||
181
|
331
|
Other operating expenses
|
Donation of AFS securities
|
|||||||
(14
|
)
|
(14
|
)
|
Net gain from investments
|
Other than temporary impairment of AFS securities
|
|||||
10,016
|
10,763
|
Income before income taxes
|
|
|||||||
(3,706
|
)
|
(3,982
|
)
|
Income tax provision
|
|
|||||
$
|
6,310
|
$
|
6,781
|
Net income
|
|
|||||
|
|
|
Gross Amounts Not Offset in the
|
|||||||||||||||||||||||
|
Statements of Financial Position
|
|||||||||||||||||||||||
|
Gross
|
Gross Amounts
|
Net Amounts of
|
|||||||||||||||||||||
|
Amounts of
|
Offset in the
|
Assets Presented
|
|||||||||||||||||||||
|
Recognized
|
Statements of
|
in the Statements
|
Financial
|
Cash Collateral
|
|||||||||||||||||||
|
Assets
|
Financial Position
|
of Financial Position
|
Instruments
|
Pledged
|
Net Amount
|
||||||||||||||||||
Swaps:
|
(in thousands)
|
|||||||||||||||||||||||
June 30, 2013
|
$
|
237
|
$
|
-
|
$
|
237
|
$
|
(177
|
)
|
$
|
-
|
$
|
60
|
|||||||||||
December 31, 2012
|
148
|
-
|
148
|
(132
|
)
|
-
|
16
|
|||||||||||||||||
June 30, 2012
|
$
|
942
|
$
|
-
|
$
|
942
|
$
|
(942
|
)
|
$
|
-
|
$
|
-
|
|||||||||||
|
||||||||||||||||||||||||
|
Gross Amounts Not Offset in the
|
|||||||||||||||||||||||
|
Statements of Financial Position
|
|||||||||||||||||||||||
|
Gross
|
Gross Amounts
|
Net Amounts of
|
|||||||||||||||||||||
|
Amounts of
|
Offset in the
|
Liabilities Presented
|
|||||||||||||||||||||
|
Recognized
|
Statements of
|
in the Statements
|
Financial
|
Cash Collateral
|
|||||||||||||||||||
|
Liabilities
|
Financial Position
|
of Financial Position
|
Instruments
|
Pledged
|
Net Amount
|
||||||||||||||||||
Swaps:
|
(in thousands)
|
|||||||||||||||||||||||
June 30, 2013
|
$
|
177
|
$
|
-
|
$
|
177
|
$
|
(177
|
)
|
$
|
-
|
$
|
-
|
|||||||||||
December 31, 2012
|
132
|
-
|
132
|
(132
|
)
|
-
|
-
|
|||||||||||||||||
June 30, 2012
|
$
|
1,014
|
$
|
-
|
$
|
1,014
|
$
|
(942
|
)
|
$
|
-
|
$
|
72
|
|
June 30, 2013
|
|||||||||||||||
|
Gross
|
Gross
|
||||||||||||||
|
Unrealized
|
Unrealized
|
||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
14,077
|
$
|
19,401
|
$
|
-
|
$
|
33,478
|
||||||||
Closed-end Funds
|
28,435
|
20,773
|
(46
|
)
|
49,162
|
|||||||||||
Mutual funds
|
2,883
|
1,850
|
(81
|
)
|
4,652
|
|||||||||||
Total available for sale securities
|
$
|
45,395
|
$
|
42,024
|
$
|
(127
|
)
|
$
|
87,292
|
|
December 31, 2012
|
|||||||||||||||
|
Gross
|
Gross
|
||||||||||||||
|
Unrealized
|
Unrealized
|
||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
14,822
|
$
|
18,738
|
$
|
-
|
$
|
33,560
|
||||||||
Closed-end Funds
|
35,868
|
22,645
|
(2
|
)
|
58,511
|
|||||||||||
Mutual funds
|
3,160
|
1,883
|
-
|
5,043
|
||||||||||||
Total available for sale securities
|
$
|
53,850
|
$
|
43,266
|
$
|
(2
|
)
|
$
|
97,114
|
|
June 30, 2012
|
|||||||||||||||
|
Gross
|
Gross
|
||||||||||||||
|
Unrealized
|
Unrealized
|
||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
15,934
|
$
|
16,881
|
$
|
-
|
$
|
32,815
|
||||||||
Closed-end Funds
|
36,266
|
19,905
|
-
|
56,171
|
||||||||||||
Mutual funds
|
3,559
|
1,825
|
-
|
5,384
|
||||||||||||
Total available for sale securities
|
$
|
55,759
|
$
|
38,611
|
$
|
-
|
$
|
94,370
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||||||||||||||||||||||||||
|
Unrealized
|
Unrealized
|
Unrealized
|
|||||||||||||||||||||||||||||||||
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Losses
|
Fair Value
|
|||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Cosed-end funds
|
$
|
1,449
|
$
|
(46
|
)
|
$
|
1,403
|
$
|
73
|
$
|
(2
|
)
|
$
|
71
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||
Mutual Funds
|
365
|
(72
|
)
|
293
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||
Total
|
$
|
1,814
|
$
|
(118
|
)
|
$
|
1,696
|
$
|
73
|
$
|
(2
|
)
|
$
|
71
|
$
|
-
|
$
|
-
|
$
|
-
|
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
||||||||||||
|
Markets for Identical
|
Observable
|
Unobservable
|
June 30,
|
||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2013
|
||||||||||||
Cash equivalents
|
$
|
222,647
|
$
|
-
|
$
|
-
|
$
|
222,647
|
||||||||
Investments in partnerships
|
-
|
22,513
|
-
|
22,513
|
||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
33,478
|
-
|
-
|
33,478
|
||||||||||||
AFS - Mutual funds
|
1,484
|
-
|
-
|
1,484
|
||||||||||||
Trading - Gov't obligations
|
27,996
|
-
|
-
|
27,996
|
||||||||||||
Trading - Common stocks
|
154,411
|
8
|
669
|
155,088
|
||||||||||||
Trading - Mutual funds
|
1,675
|
-
|
-
|
1,675
|
||||||||||||
Trading - Other
|
98
|
337
|
284
|
719
|
||||||||||||
Total investments in securities
|
219,142
|
345
|
953
|
220,440
|
||||||||||||
Investments in sponsored registered investment companies:
|
||||||||||||||||
AFS - Closed-end Funds
|
49,162
|
-
|
-
|
49,162
|
||||||||||||
AFS - Mutual Funds
|
3,168
|
-
|
-
|
3,168
|
||||||||||||
Trading - Mutual funds
|
11
|
-
|
-
|
11
|
||||||||||||
Total investments in sponsored
|
||||||||||||||||
registered investment companies
|
52,341
|
-
|
-
|
52,341
|
||||||||||||
Total investments
|
271,483
|
22,858
|
953
|
295,294
|
||||||||||||
Total assets at fair value
|
$
|
494,130
|
$
|
22,858
|
$
|
953
|
$
|
517,941
|
||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$
|
7,381
|
$
|
-
|
$
|
-
|
$
|
7,381
|
||||||||
Trading - Other
|
-
|
217
|
-
|
217
|
||||||||||||
Securities sold, not yet purchased
|
$
|
7,381
|
$
|
217
|
$
|
-
|
$
|
7,598
|
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
||||||||||||
|
Markets for Identical
|
Observable
|
Unobservable
|
December 31,
|
||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2012
|
||||||||||||
Cash equivalents
|
$
|
190,475
|
$
|
-
|
$
|
-
|
$
|
190,475
|
||||||||
Investments in partnerships
|
-
|
26,128
|
-
|
26,128
|
||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
33,560
|
-
|
-
|
33,560
|
||||||||||||
AFS - Mutual funds
|
1,702
|
-
|
-
|
1,702
|
||||||||||||
Trading - Gov't obligations
|
42,989
|
-
|
-
|
42,989
|
||||||||||||
Trading - Common stocks
|
137,796
|
7
|
675
|
138,478
|
||||||||||||
Trading - Mutual funds
|
1,484
|
-
|
-
|
1,484
|
||||||||||||
Trading - Other
|
120
|
148
|
362
|
630
|
||||||||||||
Total investments in securities
|
217,651
|
155
|
1,037
|
218,843
|
||||||||||||
Investments in sponsored registered investment companies:
|
||||||||||||||||
AFS - Closed-end Funds
|
58,511
|
-
|
-
|
58,511
|
||||||||||||
AFS - Mutual Funds
|
3,341
|
-
|
-
|
3,341
|
||||||||||||
Trading - Mutual funds
|
20
|
-
|
-
|
20
|
||||||||||||
Total investments in sponsored
|
||||||||||||||||
registered investment companies
|
61,872
|
-
|
-
|
61,872
|
||||||||||||
Total investments
|
279,523
|
26,283
|
1,037
|
306,843
|
||||||||||||
Total assets at fair value
|
$
|
469,998
|
$
|
26,283
|
$
|
1,037
|
$
|
497,318
|
||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$
|
2,867
|
$
|
-
|
$
|
-
|
$
|
2,867
|
||||||||
Trading - Other
|
-
|
269
|
-
|
269
|
||||||||||||
Securities sold, not yet purchased
|
$
|
2,867
|
$
|
269
|
$
|
-
|
$
|
3,136
|
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
||||||||||||
|
Markets for Identical
|
Observable
|
Unobservable
|
June 30,
|
||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2012
|
||||||||||||
Cash equivalents
|
$
|
324,156
|
$
|
-
|
$
|
-
|
$
|
324,156
|
||||||||
Investments in partnerships
|
-
|
23,704
|
-
|
23,704
|
||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
32,815
|
-
|
-
|
32,815
|
||||||||||||
AFS - Mutual funds
|
2,013
|
-
|
-
|
2,013
|
||||||||||||
Trading - Gov't obligations
|
50,139
|
-
|
-
|
50,139
|
||||||||||||
Trading - Common stocks
|
161,956
|
256
|
671
|
162,883
|
||||||||||||
Trading - Mutual funds
|
1,406
|
-
|
-
|
1,406
|
||||||||||||
Trading - Other
|
23
|
-
|
351
|
374
|
||||||||||||
Total investments in securities
|
248,352
|
256
|
1,022
|
249,630
|
||||||||||||
Investments in sponsored registered investment companies:
|
||||||||||||||||
AFS - Closed-end Funds
|
56,171
|
-
|
-
|
56,171
|
||||||||||||
AFS - Mutual Funds
|
3,371
|
-
|
-
|
3,371
|
||||||||||||
Trading - Mutual funds
|
19
|
-
|
-
|
19
|
||||||||||||
Total investments in sponsored
|
||||||||||||||||
registered investment companies
|
59,561
|
-
|
-
|
59,561
|
||||||||||||
Total investments
|
307,913
|
23,960
|
1,022
|
332,895
|
||||||||||||
Total assets at fair value
|
$
|
632,069
|
$
|
23,960
|
$
|
1,022
|
$
|
657,051
|
||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$
|
6,687
|
$
|
-
|
$
|
-
|
$
|
6,687
|
||||||||
Trading - Other
|
-
|
323
|
-
|
323
|
||||||||||||
Securities sold, not yet purchased
|
$
|
6,687
|
$
|
323
|
$
|
-
|
$
|
7,010
|
|
Total
|
|||||||||||||||||||||||||||||||||||
|
Unrealized
|
|||||||||||||||||||||||||||||||||||
|
Gains or
|
Total
|
||||||||||||||||||||||||||||||||||
|
Total Realized and
|
(Losses)
|
Realized
|
|||||||||||||||||||||||||||||||||
|
March
|
Unrealized Gains or
|
Included in
|
and
|
Transfers
|
|||||||||||||||||||||||||||||||
|
31, 2013
|
(Losses) in Income
|
Other
|
Unrealized
|
In and/or
|
|||||||||||||||||||||||||||||||
|
Beginning
|
AFS
|
Comprehensive
|
Gains or
|
(Out) of
|
Ending
|
||||||||||||||||||||||||||||||
Asset
|
Balance
|
Trading
|
Investments
|
Income
|
(Losses)
|
Purchases
|
Sales
|
Level 3
|
Balance
|
|||||||||||||||||||||||||||
Financial
|
||||||||||||||||||||||||||||||||||||
instruments owned:
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Trading - Common stocks
|
$
|
667
|
$
|
2
|
$
|
-
|
$
|
-
|
$
|
2
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
669
|
||||||||||||||||||
Trading - Other
|
299
|
(3
|
)
|
-
|
-
|
(3
|
)
|
3
|
(15
|
)
|
-
|
284
|
||||||||||||||||||||||||
Total
|
$
|
966
|
$
|
(1
|
)
|
$
|
-
|
$
|
-
|
$
|
(1
|
)
|
3
|
$
|
(15
|
)
|
$
|
-
|
$
|
953
|
|
Total
|
|||||||||||||||||||||||||||||||||||
|
Unrealized
|
|||||||||||||||||||||||||||||||||||
|
Gains or
|
Total
|
||||||||||||||||||||||||||||||||||
|
Total Realized and
|
(Losses)
|
Realized
|
|||||||||||||||||||||||||||||||||
|
March
|
Unrealized Gains or
|
Included in
|
and
|
Transfers
|
|||||||||||||||||||||||||||||||
|
31, 2012
|
(Losses) in Income
|
Other
|
Unrealized
|
In and/or
|
|||||||||||||||||||||||||||||||
|
Beginning
|
AFS
|
Comprehensive
|
Gains or
|
(Out) of
|
Ending
|
||||||||||||||||||||||||||||||
Asset
|
Balance
|
Trading
|
Investments
|
Income
|
(Losses)
|
Purchases
|
Sales
|
Level 3
|
Balance
|
|||||||||||||||||||||||||||
Financial
|
||||||||||||||||||||||||||||||||||||
instruments owned:
|
||||||||||||||||||||||||||||||||||||
Trading - Common stocks
|
$
|
647
|
$
|
24
|
$
|
-
|
$
|
-
|
$
|
24
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
671
|
||||||||||||||||||
Trading - Other
|
278
|
59
|
-
|
-
|
59
|
14
|
-
|
-
|
351
|
|||||||||||||||||||||||||||
Total
|
$
|
925
|
$
|
83
|
$
|
-
|
$
|
-
|
$
|
83
|
$
|
14
|
$
|
-
|
$
|
-
|
$
|
1,022
|
|
Total
|
|||||||||||||||||||||||||||||||||||
|
Unrealized
|
|||||||||||||||||||||||||||||||||||
|
Gains or
|
Total
|
||||||||||||||||||||||||||||||||||
|
Total Realized and
|
(Losses)
|
Realized
|
|||||||||||||||||||||||||||||||||
|
December
|
Unrealized Gains or
|
Included in
|
and
|
Transfers
|
|||||||||||||||||||||||||||||||
|
31, 2012
|
(Losses) in Income
|
Other
|
Unrealized
|
In and/or
|
|||||||||||||||||||||||||||||||
|
Beginning
|
AFS
|
Comprehensive
|
Gains or
|
(Out) of
|
Ending
|
||||||||||||||||||||||||||||||
Asset
|
Balance
|
Trading
|
Investments
|
Income
|
(Losses)
|
Purchases
|
Sales
|
Level 3
|
Balance
|
|||||||||||||||||||||||||||
Financial
|
||||||||||||||||||||||||||||||||||||
instruments owned:
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Trading - Common stocks
|
$
|
675
|
$
|
(6
|
)
|
$
|
-
|
$
|
-
|
$
|
(6
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
669
|
||||||||||||||||
Trading - Other
|
362
|
(2
|
)
|
-
|
-
|
(2
|
)
|
3
|
(79
|
)
|
-
|
284
|
||||||||||||||||||||||||
Total
|
$
|
1,037
|
$
|
(8
|
)
|
$
|
-
|
$
|
-
|
$
|
(8
|
)
|
$
|
3
|
$
|
(79
|
)
|
$
|
-
|
$
|
953
|
|
Total
|
|||||||||||||||||||||||||||||||||||
|
Unrealized
|
|||||||||||||||||||||||||||||||||||
|
Gains or
|
Total
|
||||||||||||||||||||||||||||||||||
|
Total Realized and
|
(Losses)
|
Realized
|
|||||||||||||||||||||||||||||||||
|
December
|
Unrealized Gains or
|
Included in
|
and
|
Transfer
|
|||||||||||||||||||||||||||||||
|
31, 2011 |
(Losses) in Income
|
Other
|
Unrealized
|
In and/or
|
|||||||||||||||||||||||||||||||
|
Beginning
|
AFS
|
Comprehensive
|
Gains or
|
(Out) of
|
Ending
|
||||||||||||||||||||||||||||||
Asset
|
Balance
|
Trading
|
Investments
|
Income
|
(Losses)
|
Purchases
|
Sales
|
Level 3
|
Balance
|
|||||||||||||||||||||||||||
Financial
|
||||||||||||||||||||||||||||||||||||
instruments owned:
|
||||||||||||||||||||||||||||||||||||
Trading - Common stocks
|
$
|
670
|
$
|
24
|
$
|
-
|
$
|
-
|
$
|
24
|
$
|
57
|
$
|
(80
|
)
|
$
|
-
|
671
|
||||||||||||||||||
Trading - Other
|
284
|
57
|
-
|
-
|
57
|
18
|
(8
|
)
|
-
|
351
|
||||||||||||||||||||||||||
Total
|
$
|
954
|
$
|
81
|
$
|
-
|
$
|
-
|
$
|
81
|
$
|
75
|
$
|
(88
|
)
|
$
|
-
|
1,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CFFs
|
|
Partnerships
|
|
Offshore Funds
|
|
Total
|
||||
|
|
VIEs
|
VOEs
|
|
VIEs
|
VOEs
|
|
VIEs
|
VOEs
|
|
VIEs
|
VOEs
|
Entities consolidated at December 31, 2011
|
|
1
|
2
|
|
-
|
1
|
|
-
|
1
|
|
1
|
4
|
Additional consolidated entities
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Deconsolidated entities
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Entities consolidated at June 30, 2012
|
|
1
|
2
|
|
-
|
1
|
|
-
|
1
|
|
1
|
4
|
Additional consolidated entities
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Deconsolidated entities
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Entities consolidated at December 31, 2012
|
|
1
|
2
|
|
-
|
1
|
|
-
|
1
|
|
1
|
4
|
Additional consolidated entities
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Deconsolidated entities
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Entities consolidated at June 30, 2013
|
|
1
|
2
|
|
-
|
1
|
|
-
|
1
|
|
1
|
4
|
|
June 30, 2013
|
|||||||||||||||||||||||
|
Investment Type
|
|||||||||||||||||||||||
|
Affiliated
|
Unaffiliated
|
||||||||||||||||||||||
|
Consolidated
|
|||||||||||||||||||||||
Accounting method
|
Feeder Funds
|
Partnerships
|
Offshore Funds
|
Partnerships
|
Offshore Funds
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
22,514
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
22,514
|
||||||||||||
Equity Method
|
-
|
26,429
|
32,616
|
5,942
|
7,034
|
72,021
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
22,514
|
$
|
26,429
|
$
|
32,616
|
$
|
5,942
|
$
|
7,034
|
$
|
94,535
|
|
December 31, 2012
|
|||||||||||||||||||||||
|
Investment Type
|
|||||||||||||||||||||||
|
Affiliated
|
Unaffiliated
|
||||||||||||||||||||||
|
Consolidated
|
|||||||||||||||||||||||
Accounting method
|
Feeder Funds
|
Partnerships
|
Offshore Funds
|
Partnerships
|
Offshore Funds
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
26,128
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
26,128
|
||||||||||||
Equity Method
|
-
|
28,158
|
29,679
|
6,505
|
7,079
|
71,421
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
26,128
|
$
|
28,158
|
$
|
29,679
|
$
|
6,505
|
$
|
7,079
|
$
|
97,549
|
|
June 30, 2012
|
|||||||||||||||||||||||
|
Investment Type
|
|||||||||||||||||||||||
|
Affiliated
|
Unaffiliated
|
||||||||||||||||||||||
|
Consolidated
|
|||||||||||||||||||||||
Accounting method
|
Feeder Funds
|
Partnerships
|
Offshore Funds
|
Partnerships
|
Offshore Funds
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
23,704
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
23,704
|
||||||||||||
Equity Method
|
-
|
34,008
|
30,340
|
7,620
|
6,447
|
78,415
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
23,704
|
$
|
34,008
|
$
|
30,340
|
$
|
7,620
|
$
|
6,447
|
$
|
102,119
|
|
June 30, 2013
|
|||||||||||||||||||
Prior to
|
Offshore
|
|||||||||||||||||||
|
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
222,441
|
$
|
-
|
$
|
335
|
$
|
-
|
$
|
222,776
|
||||||||||
Investments in securities
|
215,755
|
-
|
7,292
|
(2,607
|
)
|
220,440
|
||||||||||||||
Investments in sponsored investment companies
|
52,332
|
-
|
9
|
-
|
52,341
|
|||||||||||||||
Investments in partnerships
|
100,342
|
3,189
|
(8,996
|
)
|
-
|
94,535
|
||||||||||||||
Receivable from brokers
|
27,347
|
-
|
1,680
|
10,642
|
39,669
|
|||||||||||||||
Investment advisory fees receivable
|
28,326
|
(10
|
)
|
-
|
(76
|
)
|
28,240
|
|||||||||||||
Other assets
|
25,412
|
-
|
-
|
88
|
25,500
|
|||||||||||||||
Total assets
|
$
|
671,955
|
$
|
3,179
|
$
|
320
|
$
|
8,047
|
$
|
683,501
|
||||||||||
Liabilities and equity
|
||||||||||||||||||||
Securities sold, not yet purchased
|
$
|
7,427
|
$
|
-
|
$
|
-
|
$
|
171
|
$
|
7,598
|
||||||||||
Accrued expenses and other liabilities
|
136,309
|
59
|
21
|
4,274
|
140,663
|
|||||||||||||||
Total debt
|
117,028
|
-
|
-
|
-
|
117,028
|
|||||||||||||||
Redeemable noncontrolling interests
|
-
|
3,120
|
299
|
3,602
|
7,021
|
|||||||||||||||
Total equity
|
411,191
|
-
|
-
|
-
|
411,191
|
|||||||||||||||
Total liabilities and equity
|
$
|
671,955
|
$
|
3,179
|
$
|
320
|
$
|
8,047
|
$
|
683,501
|
|
December 31, 2012
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
|
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
189,743
|
$
|
-
|
$
|
865
|
$
|
-
|
$
|
190,608
|
||||||||||
Investments in securities
|
213,639
|
-
|
6,944
|
(1,740
|
)
|
218,843
|
||||||||||||||
Investments in sponsored investment companies
|
61,852
|
-
|
20
|
-
|
61,872
|
|||||||||||||||
Investments in partnerships
|
100,164
|
5,388
|
(8,003
|
)
|
-
|
97,549
|
||||||||||||||
Receivable from brokers
|
25,972
|
-
|
1,480
|
23,203
|
50,655
|
|||||||||||||||
Investment advisory fees receivable
|
42,425
|
9
|
(5
|
)
|
-
|
42,429
|
||||||||||||||
Other assets
|
32,673
|
(2,986
|
)
|
(1,000
|
)
|
90
|
28,777
|
|||||||||||||
Total assets
|
$
|
666,468
|
$
|
2,411
|
$
|
301
|
$
|
21,553
|
$
|
690,733
|
||||||||||
Liabilities and equity
|
||||||||||||||||||||
Securities sold, not yet purchased
|
$
|
3,033
|
$
|
-
|
$
|
-
|
$
|
103
|
$
|
3,136
|
||||||||||
Accrued expenses and other liabilities
|
76,135
|
384
|
21
|
6,395
|
82,935
|
|||||||||||||||
Total debt
|
216,366
|
-
|
-
|
-
|
216,366
|
|||||||||||||||
Redeemable noncontrolling interests
|
-
|
2,027
|
280
|
15,055
|
17,362
|
|||||||||||||||
Total equity
|
370,934
|
-
|
-
|
-
|
370,934
|
|||||||||||||||
Total liabilities and equity
|
$
|
666,468
|
$
|
2,411
|
$
|
301
|
$
|
21,553
|
$
|
690,733
|
|
June 30, 2012
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
|
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
323,560
|
$
|
-
|
$
|
880
|
$
|
-
|
$
|
324,440
|
||||||||||
Investments in securities
|
223,198
|
-
|
6,993
|
19,439
|
249,630
|
|||||||||||||||
Investments in sponsored investment companies
|
59,561
|
-
|
-
|
-
|
59,561
|
|||||||||||||||
Investments in partnerships
|
109,055
|
1,237
|
(8,173
|
)
|
-
|
102,119
|
||||||||||||||
Receivable from brokers
|
25,337
|
-
|
573
|
15,603
|
41,513
|
|||||||||||||||
Investment advisory fees receivable
|
26,028
|
(1
|
)
|
(1
|
)
|
-
|
26,026
|
|||||||||||||
Other assets
|
23,226
|
9
|
-
|
206
|
23,441
|
|||||||||||||||
Total assets
|
$
|
789,965
|
$
|
1,245
|
$
|
272
|
$
|
35,248
|
$
|
826,730
|
||||||||||
Liabilities and equity
|
||||||||||||||||||||
Securities sold, not yet purchased
|
$
|
6,788
|
$
|
-
|
$
|
-
|
$
|
222
|
$
|
7,010
|
||||||||||
Accrued expenses and other liabilities
|
87,569
|
56
|
20
|
10,305
|
97,950
|
|||||||||||||||
Total debt
|
265,598
|
-
|
-
|
-
|
265,598
|
|||||||||||||||
Redeemable noncontrolling interests
|
-
|
1,189
|
252
|
24,721
|
26,162
|
|||||||||||||||
Total equity
|
430,010
|
-
|
-
|
-
|
430,010
|
|||||||||||||||
Total liabilities and equity
|
$
|
789,965
|
$
|
1,245
|
$
|
272
|
$
|
35,248
|
$
|
826,730
|
|
Three Months Ended June 30, 2013
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
|
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
|||||||||||||||
Total revenues
|
$
|
92,613
|
$
|
(6
|
)
|
$
|
-
|
$
|
(317
|
)
|
$
|
92,290
|
||||||||
Total expenses
|
60,243
|
35
|
15
|
213
|
60,506
|
|||||||||||||||
Operating income
|
32,370
|
(41
|
)
|
(15
|
)
|
(530
|
)
|
31,784
|
||||||||||||
Total other income, net
|
11,219
|
24
|
33
|
576
|
11,852
|
|||||||||||||||
Income before income taxes
|
43,589
|
(17
|
)
|
18
|
46
|
43,636
|
||||||||||||||
Income tax provision
|
15,724
|
-
|
-
|
-
|
15,724
|
|||||||||||||||
Net income
|
27,865
|
(17
|
)
|
18
|
46
|
27,912
|
||||||||||||||
Net income attributable to noncontrolling interests
|
(28
|
)
|
(17
|
)
|
18
|
46
|
19
|
|||||||||||||
Net income attributable to GAMCO
|
$
|
27,893
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
27,893
|
|
Three Months Ended June 30, 2012
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
|
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
|||||||||||||||
Total revenues
|
$
|
80,703
|
$
|
(1
|
)
|
$
|
-
|
$
|
322
|
$
|
81,024
|
|||||||||
Total expenses
|
50,649
|
25
|
8
|
(25
|
)
|
50,657
|
||||||||||||||
Operating income
|
30,054
|
(26
|
)
|
(8
|
)
|
347
|
30,367
|
|||||||||||||
Total other income, net
|
(6,361
|
)
|
12
|
(6
|
)
|
(463
|
)
|
(6,818
|
)
|
|||||||||||
Income before income taxes
|
23,693
|
(14
|
)
|
(14
|
)
|
(116
|
)
|
23,549
|
||||||||||||
Income tax provision
|
8,686
|
-
|
-
|
-
|
8,686
|
|||||||||||||||
Net income
|
15,007
|
(14
|
)
|
(14
|
)
|
(116
|
)
|
14,863
|
||||||||||||
Net income attributable to noncontrolling interests
|
(98
|
)
|
(14
|
)
|
(14
|
)
|
(116
|
)
|
(242
|
)
|
||||||||||
Net income attributable to GAMCO
|
$
|
15,105
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
15,105
|
|
Six Months Ended June 30, 2013
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
|
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
|||||||||||||||
Total revenues
|
$
|
179,069
|
$
|
(12
|
)
|
$
|
(1
|
)
|
$
|
(585
|
)
|
$
|
178,471
|
|||||||
Total expenses
|
115,458
|
88
|
25
|
389
|
115,960
|
|||||||||||||||
Operating income
|
63,611
|
(100
|
)
|
(26
|
)
|
(974
|
)
|
62,511
|
||||||||||||
Total other income, net
|
15,721
|
134
|
48
|
1,097
|
17,000
|
|||||||||||||||
Income before income taxes
|
79,332
|
34
|
22
|
123
|
79,511
|
|||||||||||||||
Income tax provision
|
28,919
|
-
|
-
|
-
|
28,919
|
|||||||||||||||
Net income
|
50,413
|
34
|
22
|
123
|
50,592
|
|||||||||||||||
Net income attributable to noncontrolling interests
|
(25
|
)
|
34
|
22
|
123
|
154
|
||||||||||||||
Net income attributable to GAMCO
|
$
|
50,438
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
50,438
|
|
Six Months Ended June 30, 2012
|
|||||||||||||||||||
|
Prior to
|
Offshore
|
||||||||||||||||||
|
Consolidation
|
CFFs
|
Partnerships
|
Funds
|
As Reported
|
|||||||||||||||
Total revenues
|
$
|
163,282
|
$
|
(2
|
)
|
$
|
(1
|
)
|
$
|
(506
|
)
|
$
|
162,773
|
|||||||
Total expenses
|
105,170
|
48
|
19
|
157
|
105,394
|
|||||||||||||||
Operating income
|
58,112
|
(50
|
)
|
(20
|
)
|
(663
|
)
|
57,379
|
||||||||||||
Total other income, net
|
3,183
|
97
|
17
|
595
|
3,892
|
|||||||||||||||
Income before income taxes
|
61,295
|
47
|
(3
|
)
|
(68
|
)
|
61,271
|
|||||||||||||
Income tax provision
|
22,442
|
-
|
-
|
-
|
22,442
|
|||||||||||||||
Net income
|
38,853
|
47
|
(3
|
)
|
(68
|
)
|
38,829
|
|||||||||||||
Net income attributable to noncontrolling interests
|
(88
|
)
|
47
|
(3
|
)
|
(68
|
)
|
(112
|
)
|
|||||||||||
Net income attributable to GAMCO
|
$
|
38,941
|
$
|
-
|
$
|
-
|
$
|
-
|
38,941
|
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
|||||||||
(In thousands)
|
||||||||||||
Investments in partnerships
|
$
|
13,457
|
$
|
18,507
|
$
|
21,831
|
||||||
Accrued expenses and other liabilities
|
(6
|
)
|
(3,010
|
)
|
(12
|
)
|
||||||
Redeemable noncontrolling interests
|
-
|
(411
|
)
|
(669
|
)
|
|||||||
GAMCO's net interests in consolidated VIE
|
$
|
13,451
|
$
|
15,086
|
$
|
21,150
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
(in thousands, except per share amounts)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Basic:
|
||||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
27,893
|
$
|
15,105
|
$
|
50,438
|
$
|
38,941
|
||||||||
Weighted average shares outstanding
|
25,679
|
26,258
|
25,710
|
26,338
|
||||||||||||
Basic net income attributable to GAMCO Investors, Inc.'s
|
||||||||||||||||
shareholders per share
|
$
|
1.09
|
$
|
0.58
|
$
|
1.96
|
$
|
1.48
|
||||||||
|
||||||||||||||||
Diluted:
|
||||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
27,893
|
$
|
15,105
|
$
|
50,438
|
$
|
38,941
|
||||||||
|
||||||||||||||||
Weighted average share outstanding
|
25,679
|
26,258
|
25,710
|
26,338
|
||||||||||||
Dilutive stock options and restricted stock awards
|
10
|
168
|
13
|
163
|
||||||||||||
Total
|
25,689
|
26,426
|
25,723
|
26,501
|
||||||||||||
Diluted net income attributable to GAMCO Investors, Inc.'s
|
||||||||||||||||
shareholders per share
|
$
|
1.09
|
$
|
0.57
|
$
|
1.96
|
$
|
1.47
|
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
|||||||||||||||||||||
|
Carrying
|
Fair Value
|
Carrying
|
Fair Value
|
Carrying
|
Fair Value
|
||||||||||||||||||
|
Value
|
Level 2
|
Value
|
Level 2
|
Value
|
Level 2
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
5.5% Senior notes
|
$
|
-
|
$
|
-
|
$
|
99,000
|
$
|
100,485
|
$
|
99,000
|
$
|
100,955
|
||||||||||||
5.875% Senior notes
|
100,000
|
104,125
|
100,000
|
106,250
|
100,000
|
99,950
|
||||||||||||||||||
0% Subordinated debentures
|
17,028
|
18,924
|
17,366
|
19,638
|
66,598
|
75,184
|
||||||||||||||||||
Total
|
$
|
117,028
|
$
|
123,049
|
$
|
216,366
|
$
|
226,373
|
$
|
265,598
|
$
|
276,089
|
Payment Date
|
Record Date
|
Amount
|
Type
|
||||
|
|
|
|
||||
Three months ended March 31, 2013
|
March 26, 2013
|
March 12, 2013
|
$
|
0.05
|
Regular
|
||
Three months ended June 30, 2013
|
June 25, 2013
|
June 11, 2013
|
$
|
0.05
|
Regular
|
||
Six months ended June 30, 2013
|
|
|
$
|
0.10
|
|
||
|
|
|
|
||||
Three months ended March 31, 2012
|
March 27, 2012
|
March 13, 2012
|
$
|
0.04
|
Regular
|
||
Three months ended June 30, 2012
|
June 26, 2012
|
June 12, 2012
|
$
|
0.04
|
Regular
|
||
Three months ended June 30, 2012
|
June 26, 2012
|
June 12, 2012
|
$
|
0.25
|
Special
|
||
Six months ended June 30, 2012
|
|
|
$
|
0.33
|
|
2012
|
2013
|
2014
|
2015
|
|||||||||||||||
Q1
|
$
|
871
|
$
|
15
|
$
|
7
|
$
|
1
|
||||||||||
Q2
|
869
|
15
|
3
|
-
|
||||||||||||||
Q3
|
875
|
15
|
3
|
-
|
||||||||||||||
Q4
|
10,968
|
15
|
3
|
-
|
||||||||||||||
Full Year
|
$
|
13,583
|
$
|
60
|
$
|
16
|
$
|
1
|
|
||||||||||||||||||||
Table I: Fund Flows - 2nd Quarter 2013
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
March 31,
|
appreciation/
|
Net cash
|
net of
|
June 30,
|
|||||||||||||||
|
2013
|
(depreciation)
|
flows
|
reinvestments
|
2013
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
13,813
|
$
|
(11
|
)
|
$
|
417
|
$
|
(31
|
)
|
$
|
14,188
|
||||||||
Closed-end Funds
|
6,557
|
(128
|
)
|
94
|
(114
|
)
|
6,409
|
|||||||||||||
Institutional & PWM - direct
|
13,690
|
358
|
21
|
-
|
14,069
|
|||||||||||||||
Institutional & PWM - sub-advisory
|
3,299
|
69
|
(183
|
)
|
-
|
3,185
|
||||||||||||||
Investment Partnerships
|
796
|
5
|
(23
|
)
|
-
|
778
|
||||||||||||||
SICAV (a)
|
113
|
-
|
(20
|
)
|
-
|
93
|
||||||||||||||
Total Equities
|
38,268
|
293
|
306
|
(145
|
)
|
38,722
|
||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,758
|
-
|
(69
|
)
|
-
|
1,689
|
||||||||||||||
Institutional & PWM
|
64
|
-
|
3
|
-
|
67
|
|||||||||||||||
Total Fixed Income
|
1,822
|
-
|
(66
|
)
|
-
|
1,756
|
||||||||||||||
Total Assets Under Management
|
$
|
40,090
|
$
|
293
|
$
|
240
|
$
|
(145
|
)
|
$
|
40,478
|
|||||||||
|
The Company reported Assets Under Management as follows (in millions):
|
||||||||||||||||||||
|
||||||||||||||||||||
Table II: Fund Flows - Six months ended June 30, 2013
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
December 31,
|
appreciation/
|
Net cash
|
net of
|
June 30,
|
|||||||||||||||
|
2012
|
(depreciation)
|
flows
|
reinvestments
|
2013
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
12,502
|
$
|
1,129
|
$
|
619
|
$
|
(62
|
)
|
$
|
14,188
|
|||||||||
Closed-end Funds
|
6,288
|
253
|
96
|
(228
|
)
|
6,409
|
||||||||||||||
Institutional & PWM - direct
|
12,030
|
1,843
|
196
|
-
|
14,069
|
|||||||||||||||
Institutional & PWM - sub-advisory
|
2,924
|
385
|
(124
|
)
|
-
|
3,185
|
||||||||||||||
Investment Partnerships
|
801
|
13
|
(36
|
)
|
-
|
778
|
||||||||||||||
SICAV (a)
|
119
|
2
|
(28
|
)
|
-
|
93
|
||||||||||||||
Total Equities
|
34,664
|
3,625
|
723
|
(290
|
)
|
38,722
|
||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,681
|
-
|
8
|
-
|
1,689
|
|||||||||||||||
Institutional & PWM
|
60
|
-
|
7
|
-
|
67
|
|||||||||||||||
Total Fixed Income
|
1,741
|
-
|
15
|
-
|
1,756
|
|||||||||||||||
Total Assets Under Management
|
$
|
36,405
|
$
|
3,625
|
$
|
738
|
$
|
(290
|
)
|
$
|
40,478
|
|||||||||
|
|
June 30,
|
June 30,
|
%
|
|||||||||
|
2012
|
2013
|
Inc.(Dec.)
|
|||||||||
Equities:
|
||||||||||||
Open-end Funds
|
$
|
12,496
|
$
|
14,188
|
13.5
|
%
|
||||||
Closed-end Funds
|
5,860
|
6,409
|
9.4
|
|||||||||
Institutional & PWM - direct
|
11,655
|
14,069
|
20.7
|
|||||||||
Institutional & PWM - sub-advisory
|
2,788
|
3,185
|
14.2
|
|||||||||
Investment Partnerships
|
781
|
778
|
(0.4
|
)
|
||||||||
SICAV (a)
|
126
|
93
|
(26.2
|
)
|
||||||||
Total Equities
|
33,706
|
38,722
|
14.9
|
|||||||||
Fixed Income:
|
||||||||||||
Money-Market Fund
|
1,893
|
1,689
|
(10.8
|
)
|
||||||||
Institutional & PWM
|
63
|
67
|
6.3
|
|||||||||
Total Fixed Income
|
1,956
|
1,756
|
(10.2
|
)
|
||||||||
Total Assets Under Management
|
$
|
35,662
|
$
|
40,478
|
13.5
|
%
|
||||||
|
|
% Increase/
|
|||||||||||||||||||||||||||
|
(decrease) from
|
|||||||||||||||||||||||||||
|
6/12
|
9/12
|
12/12
|
3/13
|
6/13
|
6/12
|
3/13
|
|||||||||||||||||||||
Equities:
|
||||||||||||||||||||||||||||
Open-end Funds
|
$
|
12,496
|
$
|
12,758
|
$
|
12,502
|
$
|
13,813
|
$
|
14,188
|
13.5
|
%
|
2.7
|
%
|
||||||||||||||
Closed-end Funds
|
5,860
|
6,365
|
6,288
|
6,557
|
6,409
|
9.4
|
(2.3
|
)
|
||||||||||||||||||||
Institutional & PWM - direct
|
11,655
|
12,189
|
12,030
|
13,690
|
14,069
|
20.7
|
2.8
|
|||||||||||||||||||||
Institutional & PWM - sub-advisory
|
2,788
|
2,912
|
2,924
|
3,299
|
3,185
|
14.2
|
(3.5
|
)
|
||||||||||||||||||||
Investment Partnerships
|
781
|
785
|
801
|
796
|
778
|
(0.4
|
)
|
(2.3
|
)
|
|||||||||||||||||||
SICAV (a)
|
126
|
121
|
119
|
113
|
93
|
(26.2
|
)
|
(17.7
|
)
|
|||||||||||||||||||
Total Equities
|
33,706
|
35,130
|
34,664
|
38,268
|
38,722
|
14.9
|
1.2
|
|||||||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||||||
Money-Market Fund
|
1,893
|
1,752
|
1,681
|
1,758
|
1,689
|
(10.8
|
)
|
(3.9
|
)
|
|||||||||||||||||||
Institutional & PWM
|
63
|
63
|
60
|
64
|
67
|
6.3
|
4.7
|
|||||||||||||||||||||
Total Fixed Income
|
1,956
|
1,815
|
1,741
|
1,822
|
1,756
|
(10.2
|
)
|
(3.6
|
)
|
|||||||||||||||||||
Total Assets Under Management
|
$
|
35,662
|
$
|
36,945
|
$
|
36,405
|
$
|
40,090
|
$
|
40,478
|
13.5
|
%
|
1.0
|
%
|
||||||||||||||
|
||||||||||||||||||||||||||||
(a) Includes $101 million, $102 million, $104 million, $99 million and $90 million of proprietary seed capital at June 30, 2012,
|
||||||||||||||||||||||||||||
September 30, 2012, December 31, 2012, March 31, 2013 and June 30, 2013, respectively.
|
|
2013
|
2012
|
||||||
Revenues
|
||||||||
Investment advisory and incentive fees
|
$
|
77,443
|
$
|
67,210
|
||||
Distribution fees and other income
|
12,522
|
11,006
|
||||||
Institutional research services
|
2,325
|
2,808
|
||||||
Total revenues
|
92,290
|
81,024
|
||||||
Expenses
|
||||||||
Compensation
|
37,759
|
32,921
|
||||||
Management fee
|
4,846
|
2,615
|
||||||
Distribution costs
|
11,871
|
10,012
|
||||||
Other operating expenses
|
6,030
|
5,109
|
||||||
Total expenses
|
60,506
|
50,657
|
||||||
Operating income
|
31,784
|
30,367
|
||||||
Other income (expense)
|
||||||||
Net gain/(loss) from investments
|
12,141
|
(4,171
|
)
|
|||||
Interest and dividend income
|
2,507
|
1,782
|
||||||
Interest expense
|
(2,796
|
)
|
(4,429
|
)
|
||||
Total other income (expense), net
|
11,852
|
(6,818
|
)
|
|||||
Income before income taxes
|
43,636
|
23,549
|
||||||
Income tax provision
|
15,724
|
8,686
|
||||||
Net income
|
27,912
|
14,863
|
||||||
Net income/(loss) attributable to noncontrolling interests
|
19
|
(242
|
)
|
|||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
27,893
|
$
|
15,105
|
||||
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||
Basic
|
$
|
1.09
|
$
|
0.58
|
||||
Diluted
|
$
|
1.09
|
$
|
0.57
|
||||
|
(Unaudited; in thousands, except per share data)
|
||||||||
|
2013
|
2012
|
||||||
Revenues
|
||||||||
Investment advisory and incentive fees
|
$
|
150,050
|
$
|
134,993
|
||||
Distribution fees and other income
|
23,875
|
22,629
|
||||||
Institutional research services
|
4,546
|
5,151
|
||||||
Total revenues
|
178,471
|
162,773
|
||||||
Expenses
|
||||||||
Compensation
|
73,411
|
67,475
|
||||||
Management fee
|
8,826
|
6,799
|
||||||
Distribution costs
|
22,881
|
20,189
|
||||||
Other operating expenses
|
10,842
|
10,931
|
||||||
Total expenses
|
115,960
|
105,394
|
||||||
Operating income
|
62,511
|
57,379
|
||||||
Other income (expense)
|
||||||||
Net gain from investments
|
24,432
|
9,707
|
||||||
Interest and dividend income
|
3,852
|
3,018
|
||||||
Interest expense
|
(6,284
|
)
|
(8,833
|
)
|
||||
Shareholder-designated contribution
|
(5,000
|
)
|
-
|
|||||
Total other income, net
|
17,000
|
3,892
|
||||||
Income before income taxes
|
79,511
|
61,271
|
||||||
Income tax provision
|
28,919
|
22,442
|
||||||
Net income
|
50,592
|
38,829
|
||||||
Net income/(loss) attributable to noncontrolling interests
|
154
|
(112
|
)
|
|||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
50,438
|
$
|
38,941
|
||||
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||
Basic
|
$
|
1.96
|
$
|
1.48
|
||||
Diluted
|
$
|
1.96
|
$
|
1.47
|
||||
|
Six months ended
|
||||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
Cash flows provided by (used in):
|
(in thousands)
|
|||||||
Operating activities
|
$
|
133,431
|
$
|
45,138
|
||||
Investing activities
|
18,650
|
1,614
|
||||||
Financing activities
|
(119,931
|
)
|
1,351
|
|||||
Effect of exchange rates on cash and cash equivalents
|
18
|
(3
|
)
|
|||||
Net increase
|
32,168
|
48,100
|
||||||
Cash and cash equivalents at beginning of period
|
190,608
|
276,340
|
||||||
Cash and cash equivalents at end of period
|
$
|
222,776
|
$
|
324,440
|
||||
|
Fair Value
|
Fair Value
|
|||||||||||
|
assuming
|
assuming
|
||||||||||
|
10% decrease in
|
10% increase in
|
||||||||||
(unaudited)
|
Fair Value
|
equity prices
|
equity prices
|
|||||||||
At June 30, 2013:
|
||||||||||||
Equity price sensitive investments, at fair value
|
$
|
256,417
|
$
|
230,775
|
$
|
282,059
|
||||||
At December 31, 2012:
|
||||||||||||
Equity price sensitive investments, at fair value
|
$
|
273,271
|
$
|
245,944
|
$
|
300,598
|
||||||
|
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(c) Total Number of
|
(d) Maximum
|
|||||||||||||||
|
(a) Total
|
(b) Average
|
Shares Repurchased as
|
Number of Shares
|
||||||||||||
|
Number of
|
Price Paid Per
|
Part of Publicly
|
That May Yet Be
|
||||||||||||
|
Shares
|
Share, net of
|
Announced Plans
|
Purchased Under
|
||||||||||||
Period
|
Repurchased
|
Commissions
|
or Programs
|
the Plans or Programs
|
||||||||||||
4/01/13 - 4/30/13
|
8,737
|
$
|
48.27
|
8,737
|
607,030
|
|||||||||||
5/01/13 - 5/31/13
|
54,271
|
52.15
|
54,271
|
552,759
|
||||||||||||
6/01/13 - 6/30/13
|
18,718
|
56.50
|
18,718
|
534,041
|
||||||||||||
Totals
|
81,726
|
$
|
52.73
|
81,726
|
||||||||||||
|
Item 6. | (a) Exhibits |
|
31.1
|
Certification of CEO pursuant to Rule 13a-14(a).
|
|
31.2
|
Certification of CFO pursuant to Rule 13a-14(a).
|
|
32.1
|
Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
||
|
|
|
||
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
||
|
|
|
||
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
||
|
|
|
||
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
||
|
|
|
||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
By: /s/ Kieran Caterina
|
|
By: /s/ Diane M. LaPointe
|
|
Name: Kieran Caterina
|
Name: Diane M. LaPointe
|
||
Title: Co-Chief Accounting Officer
|
Title: Co-Chief Accounting Officer
|
||
|
|
||
Date: August 8, 2013
|
Date: August 8, 2013
|
Exhibit 31.1
|
Certifications
|
I, Mario J. Gabelli, certify that:
|
1.
|
I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
By:
|
/s/ Mario J. Gabelli
|
Mario J. Gabelli
|
|
Chief Executive Officer
|
|
Date:
|
August 8, 2013
|
Exhibit 31.2
|
Certifications
|
I, Robert S. Zuccaro, certify that:
|
1.
|
I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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By:
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/s/ Robert S. Zuccaro
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Robert S. Zuccaro
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Chief Financial Officer
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Date:
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August 8, 2013
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Debt
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Jun. 30, 2013
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Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | G. Debt Debt consists of the following:
5.5% Senior notes On May 15, 2003, the Company issued 10-year, $100 million senior notes, of which $99 million was outstanding at December 31, 2012 and June 30, 2012. These senior notes matured and were repaid on May 15, 2013. They paid interest semi-annually at 5.5%. 5.875% Senior notes On May 31, 2011, the Company issued 10-year, $100 million senior notes. The notes mature on June 1, 2021 and bear interest at 5.875% per annum, payable semi-annually on June 1 and December 1 of each year and commenced on December 1, 2011. Upon the occurrence of a change of control triggering event, as defined in the indenture, the Company would be required to offer to repurchase the notes at 101% of their principal amount. Zero coupon Subordinated debentures due December 31, 2015 On December 31, 2010, the Company issued $86.4 million in par value of five year zero coupon subordinated debentures due December 31, 2015 ("Debentures") to its shareholders of record on December 15, 2010 through the declaration of a special dividend of $3.20 per share. The Debentures have a par value of $100 and are callable at the option of the Company, in whole or in part, at any time or from time to time, at a redemption price equal to 100% of the principal amount of the Debentures to be redeemed. During the three month period ended June 30, 2013, the Company repurchased 11,942 Debentures having a face value of $1.2 million. The redemptions were accounted for as extinguishments of debt and resulted in a loss of $137,000. There were no repurchases during the three month period ended June 30, 2012. During the six month periods ended June 30, 2013 and June 30, 2012, the Company repurchased 11,974 Debentures and 229 Debentures, respectively, having a face value of $1.2 million and $22,900, respectively. The redemptions were accounted for as extinguishments of debt and resulted in a loss of $137,000 and a loss of $1,000, respectively. Gains and losses from the extinguishment of debt are included in net gain/(loss) from investments on the condensed consolidated statements of income. The debt is being accreted to its face value using the effective rate on the date of issuance of 7.45%. At June 30, 2013, December 31, 2012 and June 30, 2012, the debt was recorded at its accreted value of $17.0 million, $17.4 million and $66.6 million, respectively. The fair value of the Company's debt, which is a Level 2 valuation, is estimated based on either quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities or using market standard models. Inputs in these standard models include credit rating, maturity and interest rate. On May 30, 2012, the Securities and Exchange Commission ("SEC") declared effective the "shelf" registration statement filed by the Company. The "shelf" provides the Company with the flexibility of issuing any combination of senior and subordinated debt securities, convertible securities and common and preferred securities up to a total amount of $500 million and replaced the existing shelf registration which expired in July 2012. As of June 30, 2013, $400 million is available on the shelf. |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED (Parenthetical) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Comprehensive Income [Abstract] | ||||
Net unrealized gains on securities available for sale, income tax | $ (4,052) | $ (1,516) | $ (505) | $ 515 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
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Jun. 30, 2013
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Jun. 30, 2012
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Non-cash activity: | ||
Accrued restricted stock award dividends | $ 0 | $ 106 |
Investment in Securities (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Investment in Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in securities | Investments in securities at June 30, 2013, December 31, 2012 and June 30, 2012 consisted of the following:
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Securities sold, not yet purchased | Securities sold, not yet purchased at June 30, 2013, December 31, 2012 and June 30, 2012 consisted of the following:
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Investments in sponsored registered investment companies | Investments in sponsored registered investment companies at June 30, 2013, December 31, 2012 and June 30, 2012 consisted of the following:
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Reclassifications out of accumulated other comprehensive income | The following table identifies all reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2013 (in thousands):
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Master netting arrangements for swaps | The Company is a party to enforceable master netting arrangements for swaps entered into as part of the investment strategy of the Company's proprietary portfolio. They are typically not used as hedging instruments. These swaps, while settled on a net basis with the counterparties, major U.S. financial institutions, are shown gross in assets and liabilities on the condensed consolidated statements of financial position. The swaps have a firm contract end date and are closed out and settled when each contract expires.
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Summary of Available-for-sale Securities | The following is a summary of the cost, gross unrealized gains, gross unrealized losses and fair value of available for sale investments as of June 30, 2013, December 31, 2012 and June 30, 2012:
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Investments classified as available for sale unrealized loss position | Investments classified as available for sale that are in an unrealized loss position for which other-than-temporary impairment has not been recognized consisted of the following:
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Stockholders' Equity
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Stockholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | H. Stockholders' Equity Shares outstanding were 25.6 million, 25.7 million and 26.6 million on June 30, 2013, December 31, 2012 and June 30, 2012, respectively. Dividends
Voting Rights The holders of Class A Common stock ("Class A Stock") and Class B Common stock ("Class B Stock") have identical rights except that (i) holders of Class A Stock are entitled to one vote per share, while holders of Class B Stock are entitled to ten votes per share on all matters to be voted on by shareholders in general, and (ii) holders of Class A Stock are not eligible to vote on matters relating exclusively to Class B Stock and vice versa. Stock Award and Incentive Plan The Company maintains two plans approved by the shareholders, which are designed to provide incentives which will attract and retain individuals key to the success of GAMCO through direct or indirect ownership of our common stock. Benefits under the Plans may be granted in any one or a combination of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents and other stock or cash based awards. A maximum of 1.5 million shares of Class A Stock have been reserved for issuance under each of the Plans by a committee of the Board of Directors responsible for administering the Plans ("Compensation Committee"). Under the Plans, the committee may grant restricted stock awards ("RSA") and either incentive or nonqualified stock options with a term not to exceed ten years from the grant date and at an exercise price that the committee may determine. Options granted under the plans typically vest 75% after three years and 100% after four years from the date of grant and expire after ten years. RSA shares granted under the Plans typically vest 30% after three years and 100% after five years. On January 3, 2012, the Company approved the granting of 105,300 RSA shares at a grant date fair value of $43.49 per share. As of June 30, 2012, there were 373,500 RSA shares outstanding that were previously issued at an average weighted grant price of $45.15. All grants of the RSA shares were recommended by the Company's Chairman, who did not receive a RSA, and approved by the Compensation Committee. This expense, net of forfeitures, was recognized over the vesting period for these awards which is 30% over three years from the date of grant and 70% over five years from the date of grant. During the vesting period, dividends to RSA holders were being held for them until the RSA vesting dates and were forfeited if the grantee was no longer employed by the Company on the vesting dates. Dividends declared on these RSAs, less estimated forfeitures, were charged to retained earnings on the declaration date. During November 2012, the Board of Directors accelerated the lapsing of restrictions on all outstanding RSAs resulting in recognition of $10.1 million in stock compensation expense during 2012 that would have been recorded in 2013 through 2016. There were no RSAs outstanding at either June 30, 2013 or December 31, 2012. For the three months ended June 30, 2013 and June 30, 2012, we recognized stock-based compensation expense of $15,000 and $0.9 million, respectively. For the six months ended June 30, 2013 and June 30, 2012, we recognized stock-based compensation expense of $29,000 and $1.7 million, respectively. Actual and projected stock-based compensation expense for RSA shares and options for the years ended December 31, 2012 through December 31, 2015 (based on awards currently issued or granted) is as follows ($ in thousands):
The total compensation cost related to non-vested options not yet recognized is approximately $47,000 as of June 30, 2013. There were no options exercised for the three months ended June 30, 2013. For the three months ended June 30, 2012, proceeds from the exercise of 2,000 stock options were $58,000 resulting in a tax benefit to GAMCO of $3,000. For the six months ended June 30, 2013 and 2012, proceeds from the exercise of 2,623 and 2,000 stock options, respectively, were $76,000 and $58,000, respectively, resulting in a tax benefit to GAMCO of $16,000 and $3,000, respectively. The Company recognized $21,000 in tax benefits from 3,900 RSAs that vested during the six months ended June 30, 2012. Stock Repurchase Program In March 1999, GAMCO's Board of Directors established the Stock Repurchase Program to grant management the authority to repurchase shares of our Class A Common Stock. On February 5, 2013, our Board of Directors authorized an incremental 500,000 shares to be added to the current buyback authorization. For the three months ended June 30, 2013 and June 30, 2012, the Company repurchased 81,726 shares and 3,369 shares, respectively, at an average price per share of $52.73 and $44.08, respectively. For the six months ended June 30, 2013 and June 30, 2012, the Company repurchased 118,402 shares and 228,102 shares, respectively, at an average price per share of $52.99 and $44.34, respectively. From the inception of the program through June 30, 2013, 8,600,767 shares have been repurchased at an average price of $41.81 per share. At June 30, 2013, the total shares available under the program to be repurchased in the future were 534,041. |
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