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 2.02
|
|
Results of Operations and Financial Condition.
|
|
|
|
Item 9.01
|
|
Financial Statements and Exhibits.
|
|
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
|
|
• Assets under Management Rise to a Record $43.5 Billion
|
|
• Earnings Per Share increases 79% to $1.29 per share, bolstered by a $0.44 Per Share Swing in Other Income
|
Financial Highlights
|
Third Quarter
|
|
Year-to-date
|
|
||||||||||||||||||||||||||||||||
($'s in 000's except AUM and per share data)
|
2012
|
|
2013
|
|
%D
|
|
2012
|
|
2013
|
|
%D
|
|
||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
AUM - end of period (in millions)
|
$
|
36,945
|
|
$
|
43,507
|
|
17.8
|
% |
|
$
|
36,945
|
|
$
|
43,507
|
|
17.8
|
% |
|
||||||||||||||||||
AUM - average (in millions)
|
36,351
|
|
42,620
|
|
17.2
|
35,971
|
|
40,478
|
|
12.5
|
||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Revenues
|
82,231
|
|
96,377
|
|
17.2
|
245,004
|
|
274,848
|
|
12.2
|
||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Operating income before management fee
|
32,068
|
|
38,357
|
|
19.6
|
96,246
|
|
109,694
|
|
14.0
|
||||||||||||||||||||||||||
Operating margin before management fee
|
39.0
|
%
|
|
39.8
|
%
|
|
39.3
|
%
|
|
39.9
|
%
|
|
||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Operating income after management fee
|
29,012
|
|
32,728
|
|
12.8
|
86,391
|
|
95,239
|
|
10.2
|
||||||||||||||||||||||||||
Operating margin after management fee
|
35.3
|
%
|
|
34.0
|
%
|
|
35.3
|
%
|
|
34.7
|
%
|
|
||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Extinguishment of Debt
|
(6,305
|
)
|
|
-
|
|
(6,307
|
)
|
|
(137
|
)
|
|
|||||||||||||||||||||||||
Other income/(expense), net
|
(1,446
|
)
|
|
17,991
|
|
2,446
|
|
34,991
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Income before income taxes
|
27,566
|
|
50,719
|
|
84.0
|
88,837
|
|
130,230
|
|
46.6
|
||||||||||||||||||||||||||
Effective tax rate
|
30.7
|
%
|
|
34.5
|
%
|
|
34.8
|
%
|
|
35.7
|
%
|
|
||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Net income
|
19,004
|
|
33,098
|
|
74.2
|
57,945
|
|
83,536
|
|
44.2
|
||||||||||||||||||||||||||
Net income per share
|
$
|
0.72
|
(a)
|
$
|
1.29
|
(b)
|
79.2
|
% |
|
$
|
2.19
|
(a)
|
$
|
3.25
|
(b)
|
48.4
|
% |
|
||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Shares outstanding at September 30
|
26,606
|
|
26,017
|
|
26,606
|
|
26,017
|
|
||||||||||||||||||||||||||||
(a) After a $0.08 per fully diluted share charge for the three and nine months ended September 30, 2012 related to the extinguishment
|
||||||||||||||||||||||||||||||||||||
of debt from the Dutch Auction of the 0% Subordinated Debentures.
|
|
|
||||||||||||||||||||||||||||||||||
(b) After a $0.01 per fully diluted share charge in the third quarter of 2013 for shareholder-designated charitable contribution program
|
||||||||||||||||||||||||||||||||||||
and $0.12 per fully diluted share charge for the nine months ended September 30, 2013.
|
|
-
|
Revenues for the third quarter of 2013 were $96.4 million versus $82.2 million in the prior year.
|
-
|
Investment advisory and incentive fees were $80.4 million in the third quarter of 2013, an increase of $12.6 million or 18.7% from the comparable 2012 quarter. Revenues were generally driven by growth in average AUM in our open- and closed-end funds and higher billable assets in our institutional and private wealth management accounts.
|
-
|
Average AUM in the open-end equity funds were $15.1 billion, an increase of 19.8% from $12.6 billion in the comparable 2012 quarter.
|
-
|
Average AUM in the institutional and private wealth management accounts were $18.1 billion, 21.8% higher than the prior year period.
|
-
|
Incentive fees earned during the 2013 quarter totaled $0.5 million versus $0.8 million in the third quarter of 2012.
|
-
|
Revenues from the distribution of our open-end funds and other income were $13.5 million for the third quarter 2013, an increase of $2.4 million, or 21.6%, from the prior year quarter of $11.1 million.
|
-
|
Our institutional research services generated revenues of $2.4 million in the third quarter 2013 versus $3.3 million in the prior year period.
|
-
|
On September 5, 2013, GAMCO announced the final results of its Shareholder-Designated Charitable Contribution Program with 75% of all registered shareholders, comprising more than 99% of eligible shares, participating in distributing over $5.3 million to 86 different 501(c)(3) charities. Each shareholder was eligible to direct a donation of $0.25 per registered share owned to a designated charity of their choice.
|
-
|
Standard & Poor's Ratings Services issued a report on August 29, 2013 reaffirming its investment grade rating on GAMCO.
|
-
|
The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE: GDV) approved, subject to shareholder and other regulatory approvals, the creation of a newly formed diversified, closed-end fund that draws upon our global research to invest in the equities of SMID (small- and mid-capitalization) value stocks within and outside the U.S. GDV would contribute approximately $100 million of its cash and/or securities and would then distribute shares of the new fund pro rata to the common shareholders of GDV.
|
-
|
On July 25, 2013, The Gabelli Healthcare & WellnessRx Trust (NYSE: GRX) completed a rights offering raising $33 million of new equity. The offering was heavily over-subscribed.
|
-
|
Our "In the News" and "On the Air" section of our website features interviews with Portfolio Managers including Barbara Marcin, Howard Ward, Chris Marangi, Jeff Jonas, Kevin Dreyer, Caesar Bryan and Dan Miller as they address world markets, industries, and portfolio specifics. Please visit the Gabelli website at www.gabelli.com/inthenews.html.
|
-
|
Sergey Dluzhevskiy was named the #2 stock picker in the Diversified Telecommunications Services sector by Thomson Reuters for their 2013 annual The Financial Times/StarMine Analyst Awards.
|
A.
|
Operating income before management fee expense is used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of GAMCO Investors, Inc. (the "Company") as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company's proprietary investment portfolio and interest expense. The reconciliation of operating income before management fee expense to operating income is provided in Table VII.
|
B.
|
Operating income before management fee expense per share and other income, net per share are used by management for purposes of evaluating its business operations. We believe these measures are useful in comparing the operating and non-operating results of the Company for the purposes of understanding the composition of net income per fully diluted share. The positive swing of $0.44 per fully diluted share 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
|
||||||||||||||
|
2012
|
2013
|
2012
|
2013
|
||||||||||||
Operating income before management fee
|
$
|
32,068
|
$
|
38,357
|
$
|
96,246
|
$
|
109,694
|
||||||||
Management fee expense
|
(3,201
|
)
|
(3,836
|
)
|
(9,610
|
)
|
(10,956
|
)
|
||||||||
Tax expense
|
(8,867
|
)
|
(11,921
|
)
|
(30,143
|
)
|
(35,205
|
)
|
||||||||
Noncontrolling interest expense
|
(189
|
)
|
5
|
242
|
201
|
|||||||||||
Operating income (after management fee and taxes)
|
19,811
|
22,605
|
56,735
|
63,734
|
||||||||||||
Per fully diluted share
|
$
|
0.75
|
$
|
0.88
|
$
|
2.14
|
$
|
2.48
|
||||||||
|
||||||||||||||||
Other income/(expense), net
|
$
|
(1,446
|
)
|
$
|
17,991
|
$
|
2,446
|
$
|
34,991
|
|||||||
Management fee (expense)/benefit
|
145
|
(1,793
|
)
|
(245
|
)
|
(3,499
|
)
|
|||||||||
Tax (expense)/benefit
|
400
|
(5,594
|
)
|
(766
|
)
|
(11,229
|
)
|
|||||||||
Noncontrolling interest (expense)/benefit
|
94
|
(111
|
)
|
(225
|
)
|
(461
|
)
|
|||||||||
Other income/(expense), net (after management fee and taxes)
|
$
|
(807
|
)
|
$
|
10,493
|
$
|
1,210
|
$
|
19,802
|
|||||||
Per fully diluted share
|
$
|
(0.03
|
)
|
$
|
0.41
|
$
|
0.05
|
$
|
0.77
|
|||||||
|
||||||||||||||||
Net income per fully diluted share
|
$
|
0.72
|
$
|
1.29
|
$
|
2.19
|
$
|
3.25
|
||||||||
Diluted weighted average shares outstanding
|
26,439
|
25,700
|
26,480
|
25,717
|
||||||||||||
|
C.
|
Shareholder-designated charitable contribution program expense, net of management fee and tax benefit, per diluted share:
|
|
3rd Quarter
|
YTD
|
||||||
(in thousands, except per share data)
|
2013
|
2013
|
||||||
Shareholder-designated charitable contribution program
|
$
|
313
|
$
|
5,313
|
||||
Management fee and tax benefit
|
135
|
2,291
|
||||||
Net expense
|
$
|
178
|
$
|
3,022
|
||||
|
||||||||
Shareholder-designated charitable contribution program charge per share
|
$
|
0.01
|
$
|
0.12
|
||||
Diluted weighted average shares outstanding
|
25,700
|
25,717
|
||||||
|
D.
|
Realized gains from sales of available for sale securities, net of management fee and tax benefit, per diluted share:
|
|
3rd Quarter
|
YTD
|
||||||
(in thousands, except per share data)
|
2013
|
2013
|
||||||
Realized gains from sales of available for sale securities
|
$
|
5,539
|
$
|
15,116
|
||||
Management fee and tax benefit
|
2,398
|
6,545
|
||||||
Net gain
|
$
|
3,141
|
$
|
8,571
|
||||
|
||||||||
Realized gains from sales of available for sale securities per share
|
$
|
0.12
|
$
|
0.33
|
||||
Diluted weighted average shares outstanding
|
25,700
|
25,717
|
||||||
|
The Company reported Assets Under Management as follows (in millions):
|
||||||||||||||||||||
|
||||||||||||||||||||
Table I: Fund Flows - 3rd Quarter 2013
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
June 30,
|
appreciation/
|
Net cash
|
net of
|
September 30,
|
|||||||||||||||
|
2013
|
(depreciation)
|
flows
|
reinvestments
|
2013
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
14,188
|
$
|
924
|
$
|
497
|
$
|
(28
|
)
|
$
|
15,581
|
|||||||||
Closed-end Funds
|
6,409
|
374
|
56
|
(118
|
)
|
6,721
|
||||||||||||||
Institutional & PWM - direct
|
14,069
|
946
|
11
|
-
|
15,026
|
|||||||||||||||
Institutional & PWM - sub-advisory
|
3,185
|
294
|
24
|
-
|
3,503
|
|||||||||||||||
Investment Partnerships
|
778
|
17
|
10
|
-
|
805
|
|||||||||||||||
SICAV (a)
|
93
|
2
|
(1
|
)
|
-
|
94
|
||||||||||||||
Total Equities
|
38,722
|
2,557
|
597
|
(146
|
)
|
41,730
|
||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,689
|
-
|
25
|
-
|
1,714
|
|||||||||||||||
Institutional & PWM
|
67
|
-
|
(4
|
)
|
-
|
63
|
||||||||||||||
Total Fixed Income
|
1,756
|
-
|
21
|
-
|
1,777
|
|||||||||||||||
Total Assets Under Management
|
$
|
40,478
|
$
|
2,557
|
$
|
618
|
$
|
(146
|
)
|
$
|
43,507
|
|||||||||
|
The Company reported Assets Under Management as follows (in millions):
|
||||||||||||||||||||
|
||||||||||||||||||||
Table II: Fund Flows - Nine months ended September 30, 2013
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
December 31,
|
appreciation/
|
Net cash
|
net of
|
September 30,
|
|||||||||||||||
|
2012
|
(depreciation)
|
flows
|
reinvestments
|
2013
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
12,502
|
$
|
2,053
|
$
|
1,116
|
$
|
(90
|
)
|
$
|
15,581
|
|||||||||
Closed-end Funds
|
6,288
|
627
|
152
|
(346
|
)
|
6,721
|
||||||||||||||
Institutional & PWM - direct
|
12,030
|
2,789
|
207
|
-
|
15,026
|
|||||||||||||||
Institutional & PWM - sub-advisory
|
2,924
|
679
|
(100
|
)
|
-
|
3,503
|
||||||||||||||
Investment Partnerships
|
801
|
30
|
(26
|
)
|
-
|
805
|
||||||||||||||
SICAV (a)
|
119
|
4
|
(29
|
)
|
-
|
94
|
||||||||||||||
Total Equities
|
34,664
|
6,182
|
1,320
|
(436
|
)
|
41,730
|
||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,681
|
-
|
33
|
-
|
1,714
|
|||||||||||||||
Institutional & PWM
|
60
|
-
|
3
|
-
|
63
|
|||||||||||||||
Total Fixed Income
|
1,741
|
-
|
36
|
-
|
1,777
|
|||||||||||||||
Total Assets Under Management
|
$
|
36,405
|
$
|
6,182
|
$
|
1,356
|
$
|
(436
|
)
|
$
|
43,507
|
|||||||||
|
Table III: Assets Under Management
|
||||||||||||
|
September 30,
|
September 30,
|
%
|
|||||||||
|
2012
|
2013
|
Inc.(Dec.)
|
|||||||||
Equities:
|
||||||||||||
Open-end Funds
|
$
|
12,758
|
$
|
15,581
|
22.1
|
%
|
||||||
Closed-end Funds
|
6,365
|
6,721
|
5.6
|
|||||||||
Institutional & PWM - direct
|
12,189
|
15,026
|
23.3
|
|||||||||
Institutional & PWM - sub-advisory
|
2,912
|
3,503
|
20.3
|
|||||||||
Investment Partnerships
|
785
|
805
|
2.5
|
|||||||||
SICAV (a)
|
121
|
94
|
(22.3
|
)
|
||||||||
Total Equities
|
35,130
|
41,730
|
18.8
|
|||||||||
Fixed Income:
|
||||||||||||
Money-Market Fund
|
1,752
|
1,714
|
(2.2
|
)
|
||||||||
Institutional & PWM
|
63
|
63
|
-
|
|||||||||
Total Fixed Income
|
1,815
|
1,777
|
(2.1
|
)
|
||||||||
Total Assets Under Management
|
$
|
36,945
|
$
|
43,507
|
17.8
|
%
|
||||||
|
Table IV: Assets Under Management by Quarter
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
%D
|
|||||||||||||||||||||||||||
|
9/12
|
12/12
|
3/13
|
6/13
|
9/13
|
9/12
|
6/13
|
|||||||||||||||||||||
Equities:
|
||||||||||||||||||||||||||||
Open-end Funds
|
$
|
12,758
|
$
|
12,502
|
$
|
13,813
|
$
|
14,188
|
$
|
15,581
|
22.1
|
%
|
9.8
|
%
|
||||||||||||||
Closed-end Funds
|
6,365
|
6,288
|
6,557
|
6,409
|
6,721
|
5.6
|
4.9
|
|||||||||||||||||||||
Institutional & PWM - direct
|
12,189
|
12,030
|
13,690
|
14,069
|
15,026
|
23.3
|
6.8
|
|||||||||||||||||||||
Institutional & PWM - sub-advisory
|
2,912
|
2,924
|
3,299
|
3,185
|
3,503
|
20.3
|
10.0
|
|||||||||||||||||||||
Investment Partnerships
|
785
|
801
|
796
|
778
|
805
|
2.5
|
3.5
|
|||||||||||||||||||||
SICAV (a)
|
121
|
119
|
113
|
93
|
94
|
(22.3
|
)
|
1.1
|
||||||||||||||||||||
Total Equities
|
35,130
|
34,664
|
38,268
|
38,722
|
41,730
|
18.8
|
7.8
|
|||||||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||||||
Money-Market Fund
|
1,752
|
1,681
|
1,758
|
1,689
|
1,714
|
(2.2
|
)
|
1.5
|
||||||||||||||||||||
Institutional & PWM
|
63
|
60
|
64
|
67
|
63
|
-
|
(6.0
|
)
|
||||||||||||||||||||
Total Fixed Income
|
1,815
|
1,741
|
1,822
|
1,756
|
1,777
|
(2.1
|
)
|
1.2
|
||||||||||||||||||||
Total Assets Under Management
|
$
|
36,945
|
$
|
36,405
|
$
|
40,090
|
$
|
40,478
|
$
|
43,507
|
17.8
|
%
|
7.5
|
%
|
||||||||||||||
|
||||||||||||||||||||||||||||
(a) Includes $102 million, $104 million, $99 million, $90 million and $92 million of proprietary seed capital at September 30, 2012,
|
||||||||||||||||||||||||||||
December 31, 2012, March 31, 2013, June 30, 2013 and September 30, 2013, respectively.
|
||||||||||||||||||||||||||||
|
Table V
|
||||||||||||
|
||||||||||||
GAMCO INVESTORS, INC.
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
|
||||||||||||
|
For the Quarter Ended September 30,
|
|||||||||||
|
% Inc.
|
|||||||||||
|
2012
|
2013
|
(Dec.)
|
|||||||||
|
||||||||||||
Investment advisory and incentive fees
|
$
|
67,790
|
$
|
80,438
|
18.7
|
%
|
||||||
Distribution fees and other income
|
11,139
|
13,545
|
21.6
|
|||||||||
Institutional research services
|
3,302
|
2,394
|
(27.5
|
)
|
||||||||
Total revenues
|
82,231
|
96,377
|
17.2
|
|||||||||
|
||||||||||||
Compensation costs
|
32,948
|
39,803
|
20.8
|
|||||||||
Distribution costs
|
10,386
|
12,769
|
22.9
|
|||||||||
Other operating expenses
|
6,829
|
5,448
|
(20.2
|
)
|
||||||||
Total expenses
|
50,163
|
58,020
|
15.7
|
|||||||||
|
||||||||||||
Operating income before management fee
|
32,068
|
38,357
|
19.6
|
|||||||||
|
||||||||||||
Investment income
|
8,445
|
20,468
|
||||||||||
Extinguishment of debt
|
(6,305
|
)
|
-
|
|||||||||
Interest expense
|
(3,586
|
)
|
(2,164
|
)
|
||||||||
Shareholder-designated contribution
|
-
|
(313
|
)
|
|||||||||
Other income/(expense), net
|
(1,446
|
)
|
17,991
|
|||||||||
|
||||||||||||
Income before management fee and income taxes
|
30,622
|
56,348
|
84.0
|
|||||||||
Management fee expense
|
3,056
|
5,629
|
||||||||||
Income before income taxes
|
27,566
|
50,719
|
84.0
|
|||||||||
Income tax expense
|
8,467
|
17,515
|
||||||||||
Net income
|
19,099
|
33,204
|
73.9
|
|||||||||
Net income/(loss) attributable to noncontrolling interests
|
95
|
106
|
||||||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
19,004
|
$
|
33,098
|
74.2
|
|||||||
|
||||||||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
||||||||||||
Basic
|
$
|
0.72
|
$
|
1.29
|
79.2
|
|||||||
|
||||||||||||
Diluted
|
$
|
0.72
|
$
|
1.29
|
79.2
|
|||||||
|
||||||||||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
26,250
|
25,625
|
(2.4
|
)
|
||||||||
|
||||||||||||
Diluted
|
26,439
|
25,700
|
(2.8
|
)
|
||||||||
|
||||||||||||
Actual shares outstanding (a)
|
26,606
|
26,017
|
(2.2
|
%)
|
||||||||
|
||||||||||||
Notes:
|
||||||||||||
(a) Includes 371,500 and 427,700 of RSAs, respectively.
|
||||||||||||
See GAAP to non-GAAP reconciliation on page 12.
|
||||||||||||
|
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.
|
|||||||||||
|
2012
|
2013
|
(Dec.)
|
|||||||||
|
||||||||||||
Investment advisory and incentive fees
|
$
|
202,783
|
$
|
230,488
|
13.7
|
%
|
||||||
Distribution fees and other income
|
33,768
|
37,420
|
10.8
|
|||||||||
Institutional research services
|
8,453
|
6,940
|
(17.9
|
)
|
||||||||
Total revenues
|
245,004
|
274,848
|
12.2
|
|||||||||
|
||||||||||||
Compensation costs
|
100,423
|
113,214
|
12.7
|
|||||||||
Distribution costs
|
30,575
|
35,650
|
16.6
|
|||||||||
Other operating expenses
|
17,760
|
16,290
|
(8.3
|
)
|
||||||||
Total expenses
|
148,758
|
165,154
|
11.0
|
|||||||||
|
||||||||||||
Operating income before management fee
|
96,246
|
109,694
|
14.0
|
|||||||||
|
||||||||||||
Investment income
|
21,172
|
48,889
|
||||||||||
Extinguishment of debt
|
(6,307
|
)
|
(137
|
)
|
||||||||
Interest expense
|
(12,419
|
)
|
(8,448
|
)
|
||||||||
Shareholder-designated contribution
|
-
|
(5,313
|
)
|
|||||||||
Other income, net
|
2,446
|
34,991
|
||||||||||
|
||||||||||||
Income before management fee and income taxes
|
98,692
|
144,685
|
46.6
|
|||||||||
Management fee expense
|
9,855
|
14,455
|
||||||||||
Income before income taxes
|
88,837
|
130,230
|
46.6
|
|||||||||
Income tax expense
|
30,909
|
46,434
|
||||||||||
Net income
|
57,928
|
83,796
|
44.7
|
|||||||||
Net income attributable to noncontrolling interests
|
(17
|
)
|
260
|
|||||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
57,945
|
$
|
83,536
|
44.2
|
|||||||
|
||||||||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
||||||||||||
Basic
|
$
|
2.20
|
$
|
3.25
|
47.7
|
|||||||
|
||||||||||||
Diluted
|
$
|
2.19
|
$
|
3.25
|
48.4
|
|||||||
|
||||||||||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
26,309
|
25,682
|
(2.4
|
)
|
||||||||
|
||||||||||||
Diluted
|
26,480
|
25,717
|
(2.9
|
)
|
||||||||
|
||||||||||||
Actual shares outstanding (a)
|
26,606
|
26,017
|
(2.2
|
%)
|
||||||||
|
||||||||||||
Notes:
|
||||||||||||
(a) Includes 371,500 and 427,700 of RSAs, respectively.
|
||||||||||||
See GAAP to non-GAAP reconciliation on page 12.
|
||||||||||||
|
Table VII
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
GAMCO INVESTORS, INC.
|
|||||||||||||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||||||||||||
|
1st
|
2nd
|
3rd
|
|
YTD
|
|
4th
|
|
Full
|
1st
|
2nd
|
3rd
|
YTD
|
||||||||||||||||||||||||||||||
|
Quarter
|
Quarter
|
Quarter
|
|
2012
|
|
Quarter
|
|
Year
|
Quarter
|
Quarter
|
Quarter
|
2013
|
||||||||||||||||||||||||||||||
Income Statement Data:
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Revenues
|
$
|
81,749
|
$
|
81,024
|
$
|
82,231
|
|
$
|
245,004
|
|
$
|
99,277
|
|
$
|
344,281
|
$
|
86,181
|
$
|
92,290
|
$
|
96,377
|
$
|
274,848
|
||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Expenses
|
50,553
|
48,042
|
50,163
|
|
148,758
|
|
71,375
|
(a)
|
220,133
|
51,474
|
55,660
|
58,020
|
165,154
|
||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Operating income before
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
management fee
|
31,196
|
32,982
|
32,068
|
|
96,246
|
|
27,902
|
|
124,148
|
34,707
|
36,630
|
38,357
|
109,694
|
||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Investment income/(loss)
|
15,114
|
(2,389
|
)
|
2,140
|
(b)
|
14,865
|
(b)
|
7,220
|
|
22,085
|
13,636
|
14,648
|
20,468
|
48,752
|
|||||||||||||||||||||||||||||
Interest expense
|
(4,404
|
)
|
(4,429
|
)
|
(3,586
|
)
|
|
(12,419
|
)
|
|
(3,480
|
)
|
|
(15,899
|
)
|
(3,488
|
)
|
(2,796
|
)
|
(2,164
|
)
|
(8,448
|
)
|
||||||||||||||||||||
Shareholder-designated contribution
|
-
|
-
|
-
|
|
-
|
|
-
|
|
-
|
(5,000
|
)
|
-
|
(313
|
)
|
(5,313
|
)
|
|||||||||||||||||||||||||||
Other income/(expense), net
|
10,710
|
(6,818
|
)
|
(1,446
|
)
|
|
2,446
|
|
3,740
|
|
6,186
|
5,148
|
11,852
|
17,991
|
34,991
|
||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Income before management
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
fee and income taxes
|
41,906
|
26,164
|
30,622
|
|
98,692
|
|
31,642
|
|
130,334
|
39,855
|
48,482
|
56,348
|
144,685
|
||||||||||||||||||||||||||||||
Management fee expense
|
4,184
|
2,615
|
3,056
|
|
9,855
|
|
3,163
|
|
13,018
|
3,980
|
4,846
|
5,629
|
14,455
|
||||||||||||||||||||||||||||||
Income before income taxes
|
37,722
|
23,549
|
27,566
|
|
88,837
|
|
28,479
|
|
117,316
|
35,875
|
43,636
|
50,719
|
130,230
|
||||||||||||||||||||||||||||||
Income tax expense
|
13,756
|
8,686
|
8,467
|
|
30,909
|
|
10,812
|
|
41,721
|
13,195
|
15,724
|
17,515
|
46,434
|
||||||||||||||||||||||||||||||
Net income
|
23,966
|
14,863
|
19,099
|
|
57,928
|
|
17,667
|
|
75,595
|
22,680
|
27,912
|
33,204
|
83,796
|
||||||||||||||||||||||||||||||
Net income/(loss) attributable
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
to noncontrolling interests
|
130
|
(242
|
)
|
95
|
|
(17
|
)
|
|
73
|
|
56
|
135
|
19
|
106
|
260
|
||||||||||||||||||||||||||||
Net income attributable to
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
GAMCO Investors, Inc.
|
$
|
23,836
|
$
|
15,105
|
$
|
19,004
|
|
$
|
57,945
|
|
$
|
17,594
|
|
$
|
75,539
|
$
|
22,545
|
$
|
27,893
|
$
|
33,098
|
$
|
83,536
|
||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Net income per share
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
attributable to GAMCO
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Investors, Inc.:
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Basic
|
$
|
0.90
|
$
|
0.58
|
$
|
0.72
|
|
$
|
2.20
|
|
$
|
0.67
|
|
$
|
2.87
|
$
|
0.88
|
$
|
1.09
|
$
|
1.29
|
$
|
3.25
|
||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Diluted
|
$
|
0.90
|
$
|
0.57
|
$
|
0.72
|
|
$
|
2.19
|
|
$
|
0.67
|
|
$
|
2.86
|
$
|
0.88
|
$
|
1.09
|
$
|
1.29
|
$
|
3.25
|
||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding:
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Basic
|
26,415
|
26,258
|
26,250
|
|
26,309
|
|
26,208
|
|
26,283
|
25,742
|
25,679
|
25,625
|
25,682
|
||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Diluted
|
26,533
|
26,426
|
26,439
|
|
26,480
|
|
26,305
|
|
26,436
|
25,758
|
25,689
|
25,700
|
25,717
|
||||||||||||||||||||||||||||||
Reconciliation of non-GAAP
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
financial measures to GAAP:
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Operating income before
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
management fee
|
$
|
31,196
|
$
|
32,982
|
$
|
32,068
|
|
$
|
96,246
|
|
$
|
27,902
|
|
$
|
124,148
|
$
|
34,707
|
$
|
36,630
|
$
|
38,357
|
$
|
109,694
|
||||||||||||||||||||
Deduct: management fee expense
|
4,184
|
2,615
|
3,056
|
|
9,855
|
|
3,163
|
|
13,018
|
3,980
|
4,846
|
5,629
|
14,455
|
||||||||||||||||||||||||||||||
Operating income
|
$
|
27,012
|
$
|
30,367
|
$
|
29,012
|
|
$
|
86,391
|
|
$
|
24,739
|
|
$
|
111,130
|
$
|
30,727
|
$
|
31,784
|
$
|
32,728
|
$
|
95,239
|
||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Operating margin before
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
management fee
|
38.2
|
%
|
40.7
|
%
|
39.0
|
%
|
|
39.3
|
%
|
|
28.1
|
%
|
|
36.1
|
%
|
40.3
|
%
|
39.7
|
%
|
39.8
|
%
|
39.9
|
%
|
||||||||||||||||||||
Operating margin after
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
management fee
|
33.0
|
%
|
37.5
|
%
|
35.3
|
%
|
|
35.3
|
%
|
|
24.9
|
%
|
|
32.3
|
%
|
35.7
|
%
|
34.4
|
%
|
34.0
|
%
|
34.7
|
%
|
||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
(a) Includes $10.1 million in expenses from the acceleration of RSAs.
|
|
|
|||||||||||||||||||||||||||||||||||||||||
(b) Includes $6.3 million loss on extinguishment of $64.6 million (face value) of 0% Subordinated Debentures.
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
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,
|
|||||||||
|
2012
|
2012
|
2013
|
|||||||||
|
||||||||||||
ASSETS
|
||||||||||||
|
||||||||||||
Cash and cash equivalents
|
$
|
288,685
|
$
|
190,608
|
$
|
245,411
|
||||||
Investments (a)
|
402,272
|
378,263
|
379,184
|
|||||||||
Receivable from brokers
|
55,159
|
50,655
|
43,854
|
|||||||||
Other receivables
|
36,205
|
52,600
|
38,975
|
|||||||||
Income tax receivable
|
1,018
|
1,014
|
433
|
|||||||||
Other assets
|
15,232
|
17,589
|
26,765
|
|||||||||
|
||||||||||||
Total assets
|
$
|
798,571
|
$
|
690,729
|
$
|
734,622
|
||||||
|
||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
|
||||||||||||
Payable to brokers
|
$
|
28,039
|
$
|
14,346
|
$
|
14,675
|
||||||
Income taxes payable and deferred tax liabilities
|
16,445
|
25,394
|
28,726
|
|||||||||
Compensation payable
|
33,998
|
10,535
|
86,174
|
|||||||||
Securities sold short, not yet purchased
|
3,856
|
3,136
|
7,725
|
|||||||||
Accrued expenses and other liabilities
|
36,513
|
32,656
|
35,564
|
|||||||||
Sub-total
|
118,851
|
86,067
|
172,864
|
|||||||||
|
||||||||||||
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
|
|||||||||
0% Subordinated Debentures (due December 31, 2015) (b)
|
17,118
|
17,366
|
17,347
|
|||||||||
Total debt
|
216,118
|
216,366
|
117,347
|
|||||||||
Total liabilities
|
334,969
|
302,433
|
290,211
|
|||||||||
|
||||||||||||
Redeemable noncontrolling interests
|
20,228
|
17,362
|
5,765
|
|||||||||
|
||||||||||||
GAMCO Investors, Inc.'s stockholders' equity
|
440,013
|
367,608
|
435,857
|
|||||||||
Noncontrolling interests
|
3,361
|
3,326
|
2,789
|
|||||||||
Total equity
|
443,374
|
370,934
|
438,646
|
|||||||||
|
||||||||||||
Total liabilities and equity
|
$
|
798,571
|
$
|
690,729
|
$
|
734,622
|
||||||
|
||||||||||||
(a) Includes investments in sponsored registered investment companies of $64.2 million, $61.9 million and $43.7 million, respectively.
|
||||||||||||
(b) The 0% Subordinated Debentures due December 31, 2015 have a face value of $21.8 million, $21.7 million and $20.5 million,
|
||||||||||||
respectively.
|
||||||||||||
|