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 $47.0 Billion
|
·
|
Fourth Quarter Earnings Per Share Up 93% to $1.29 per share
|
·
|
Full Year Earnings Per Share Up 59% to $4.54 per share
|
Financial Highlights
|
|
Fourth Quarter
|
|
Full Year
|
|
|
||||
($'s in 000's except AUM and per share data)
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUM - end of period (in millions)
|
|
$ 36,405
|
|
$ 47,010
|
|
$ 36,405
|
|
$ 47,010
|
|
|
AUM - average (in millions)
|
|
36,278
|
|
45,523
|
|
36,048
|
|
41,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
99,277
|
|
122,714
|
|
344,281
|
|
397,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before management fee (a)
|
|
27,902
|
|
51,547
|
|
124,148
|
|
161,241
|
|
|
Operating margin before management fee
|
|
28.1%
|
|
42.0%
|
|
36.1%
|
|
40.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense), net
|
|
3,740
|
|
6,148
|
|
6,186
|
|
41,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
28,479
|
|
53,321
|
|
117,316
|
|
183,551
|
|
|
Effective tax rate
|
|
38.0%
|
|
37.0%
|
|
35.6%
|
|
36.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
17,594
|
|
33,317
|
|
75,539
|
|
116,853
|
|
|
Net income per share
|
|
$ 0.67
|
|
$ 1.29
|
(b)
|
$ 2.86
|
(c)
|
$ 4.54
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at December 31
|
|
25,746
|
|
26,086
|
|
25,746
|
|
26,086
|
|
|
(a) See GAAP to non-GAAP reconciliation on page 12.
|
|
|
|
|
|
|
|
|
||
(b) After a $0.12 per fully diluted share charge and $0.24 per fully diluted share charge for the fourth quarter and full year 2013,
|
||||||||||
respectively, for our shareholder-designated charitable contribution program.
|
|
|
|
|
|
|
||||
(c) After a $0.08 per fully diluted share charge for the full year ended December 31, 2012 related to the extinguishment of debt
|
|
|||||||||
from the Dutch Auction of the 0% Subordinated Debentures.
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
-
|
Revenues for the fourth quarter of 2013 were $122.7 million, up 23.6% from $99.3 million in the prior year.
|
-
|
Investment advisory and incentive fees were $106.2 million in the fourth quarter of 2013, an increase of $20.5 million or 23.9% 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 as well as a $3.5 million increase in incentive fees.
|
-
|
Average AUM in the open-end equity funds were $16.3 billion, an increase of 30.4% from $12.5 billion in the comparable 2012 quarter.
|
-
|
Average AUM in the institutional and private wealth management accounts were $19.6 billion, 33.1% higher than the prior year quarter.
|
-
|
Incentive fees earned during the 2013 quarter totaled $21.3 million versus $17.8 million in the fourth quarter of 2012.
|
-
|
Revenues from the distribution of our open-end funds and other income were $14.5 million for the fourth quarter 2013, an increase of $3.4 million, or 31.3%, from the prior year quarter of $11.1 million.
|
-
|
Our institutional research services revenues were $2.0 million in the fourth quarter 2013 versus $2.5 million in the prior year period.
|
-
|
GAMCO was ranked #232 in Pensions & Investments annual release of the largest 500 money managers, which includes both equity and fixed income managers, world-wide on December 31, 2012.
|
-
|
GAMCO Investors, Inc. held a Special Meeting of Shareholders on November 20, 2013 where the shareholders approved a change in the Company's state of incorporation from New York to Delaware and approved an amendment to the Company's 2002 Stock Award & Incentive Plan to increase by two million the number of Class A shares reserved for issuance.
|
-
|
On November 7, 2013, GAMCO announced that its Board of Directors approved a $0.25 per share donation under its Shareholder Designated Charitable Contribution Program on behalf of all registered Class A and Class B shareholders as of March 31, 2014. GAMCO created its Shareholder Designated Contribution Program in April 2013.
|
-
|
On November 4-5 2013, G.research (formerly Gabelli & Company) hosted its 37th Annual Automotive Aftermarket Symposium in Las Vegas, Nevada. This two day conference showcased a full spectrum of leading automotive companies, including aftermarket parts retailers, original equipment and aftermarket parts suppliers, publicly traded dealership groups and medium & heavy duty truck manufacturers. The conference featured more than twenty companies introduced by a team of G.research analysts led by Brian Sponheimer.
|
-
|
G.research hosted its 19th Annual Aircraft Supplier conference on November 19, 2013 in New York City. This research focused meeting featured presentations from leading aerospace and defense industry managements with an emphasis on sequestration dynamics, new technologies and company fundamentals.
|
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 $0.05 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.
|
|
4th Quarter
|
Full Year
|
||||||||||||||
|
2012
|
2013
|
2012
|
2013
|
||||||||||||
Operating income before management fee
|
$
|
27,902
|
$
|
51,547
|
$
|
124,148
|
$
|
161,241
|
||||||||
Management fee expense
|
(2,802
|
)
|
(3,774
|
)
|
(12,427
|
)
|
(14,743
|
)
|
||||||||
Tax expense
|
(9,529
|
)
|
(17,697
|
)
|
(39,732
|
)
|
(52,825
|
)
|
||||||||
Noncontrolling interest expense
|
120
|
99
|
363
|
(745
|
)
|
|||||||||||
Operating income (after management fee and taxes)
|
15,691
|
30,175
|
72,352
|
92,928
|
||||||||||||
Per fully diluted share
|
$
|
0.60
|
$
|
1.17
|
$
|
2.74
|
$
|
3.61
|
||||||||
|
||||||||||||||||
Other income/(expense), net
|
$
|
3,740
|
$
|
6,148
|
$
|
6,186
|
$
|
41,139
|
||||||||
Management fee (expense)/benefit
|
(361
|
)
|
(600
|
)
|
(591
|
)
|
(4,086
|
)
|
||||||||
Tax (expense)/benefit
|
(1,283
|
)
|
(2,055
|
)
|
(1,989
|
)
|
(13,361
|
)
|
||||||||
Noncontrolling interest (expense)/benefit
|
(193
|
)
|
(351
|
)
|
(419
|
)
|
233
|
|||||||||
Other income/(expense), net (after management fee and taxes)
|
$
|
1,903
|
$
|
3,142
|
$
|
3,187
|
$
|
23,925
|
||||||||
Per fully diluted share
|
$
|
0.07
|
$
|
0.12
|
$
|
0.12
|
$
|
0.93
|
||||||||
|
||||||||||||||||
Net income per fully diluted share
|
$
|
0.67
|
$
|
1.29
|
$
|
2.86
|
$
|
4.54
|
||||||||
Diluted weighted average shares outstanding
|
26,305
|
25,733
|
26,436
|
25,712
|
||||||||||||
|
C.
|
Shareholder-designated charitable contribution program expense, net of management fee and tax benefit, per diluted share, is provided below:
|
|
4th Quarter
|
YTD
|
||||||
(in thousands, except per share data)
|
2013
|
2013
|
||||||
Shareholder-designated charitable contribution program
|
$
|
5,313
|
$
|
10,626
|
||||
Management fee and tax benefit
|
2,291
|
4,582
|
||||||
Net expense
|
$
|
3,022
|
$
|
6,044
|
||||
|
||||||||
Shareholder-designated charitable contribution program charge per share
|
$
|
0.12
|
$
|
0.24
|
||||
Diluted weighted average shares outstanding
|
25,733
|
25,712
|
||||||
|
D.
|
Non- cash charge for RSA acceleration expense:
|
|
4th Quarter
|
Full Year
|
||||||
(in thousands, except per share data)
|
2012
|
2012
|
||||||
RSA amortization expense
|
$
|
10,097
|
$
|
10,097
|
||||
Management fee expense
|
1,010
|
1,010
|
||||||
Operating income impact
|
$
|
9,087
|
$
|
9,087
|
||||
|
The Company reported Assets Under Management as follows (in millions):
|
||||||||||||||||||||
|
||||||||||||||||||||
Table I: Fund Flows - 4th Quarter 2013
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
September 30,
|
appreciation/
|
Net cash
|
net of
|
December 31,
|
|||||||||||||||
|
2013
|
(depreciation)
|
flows
|
reinvestments
|
2013
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
15,581
|
$
|
1,218
|
$
|
330
|
$
|
(51
|
)
|
$
|
17,078
|
|||||||||
Closed-end Funds
|
6,721
|
364
|
(2
|
)
|
(138
|
)
|
6,945
|
|||||||||||||
Institutional & PWM - direct
|
15,026
|
1,498
|
(38
|
)
|
-
|
16,486
|
||||||||||||||
Institutional & PWM - sub-advisory
|
3,503
|
328
|
(34
|
)
|
-
|
3,797
|
||||||||||||||
Investment Partnerships
|
805
|
11
|
(5
|
)
|
-
|
811
|
||||||||||||||
SICAV (a)
|
94
|
2
|
-
|
-
|
96
|
|||||||||||||||
Total Equities
|
41,730
|
3,421
|
251
|
(189
|
)
|
45,213
|
||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,714
|
-
|
21
|
-
|
1,735
|
|||||||||||||||
Institutional & PWM
|
63
|
-
|
(1
|
)
|
-
|
62
|
||||||||||||||
Total Fixed Income
|
1,777
|
-
|
20
|
-
|
1,797
|
|||||||||||||||
Total Assets Under Management
|
$
|
43,507
|
$
|
3,421
|
$
|
271
|
$
|
(189
|
)
|
$
|
47,010
|
|||||||||
|
The Company reported Assets Under Management as follows (in millions):
|
||||||||||||||||||||
|
||||||||||||||||||||
Table II: Fund Flows - Full Year 2013
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
December 31,
|
appreciation/
|
Net cash
|
net of
|
December 31,
|
|||||||||||||||
|
2012
|
(depreciation)
|
flows
|
reinvestments
|
2013
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
12,502
|
$
|
3,271
|
$
|
1,446
|
$
|
(141
|
)
|
$
|
17,078
|
|||||||||
Closed-end Funds
|
6,288
|
991
|
150
|
(484
|
)
|
6,945
|
||||||||||||||
Institutional & PWM - direct
|
12,030
|
4,287
|
169
|
-
|
16,486
|
|||||||||||||||
Institutional & PWM - sub-advisory
|
2,924
|
1,007
|
(134
|
)
|
-
|
3,797
|
||||||||||||||
Investment Partnerships
|
801
|
41
|
(31
|
)
|
-
|
811
|
||||||||||||||
SICAV (a)
|
119
|
6
|
(29
|
)
|
-
|
96
|
||||||||||||||
Total Equities
|
34,664
|
9,603
|
1,571
|
(625
|
)
|
45,213
|
||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,681
|
-
|
54
|
-
|
1,735
|
|||||||||||||||
Institutional & PWM
|
60
|
-
|
2
|
-
|
62
|
|||||||||||||||
Total Fixed Income
|
1,741
|
-
|
56
|
-
|
1,797
|
|||||||||||||||
Total Assets Under Management
|
$
|
36,405
|
$
|
9,603
|
$
|
1,627
|
$
|
(625
|
)
|
$
|
47,010
|
|||||||||
|
Table III: Assets Under Management
|
||||||||||||
|
December 31,
|
December 31,
|
%
|
|||||||||
|
2012
|
2013
|
Inc.(Dec.)
|
|||||||||
Equities:
|
||||||||||||
Open-end Funds
|
$
|
12,502
|
$
|
17,078
|
36.6
|
%
|
||||||
Closed-end Funds
|
6,288
|
6,945
|
10.4
|
|||||||||
Institutional & PWM - direct
|
12,030
|
16,486
|
37.0
|
|||||||||
Institutional & PWM - sub-advisory
|
2,924
|
3,797
|
29.9
|
|||||||||
Investment Partnerships
|
801
|
811
|
1.2
|
|||||||||
SICAV (a)
|
119
|
96
|
(19.3
|
)
|
||||||||
Total Equities
|
34,664
|
45,213
|
30.4
|
|||||||||
Fixed Income:
|
||||||||||||
Money-Market Fund
|
1,681
|
1,735
|
3.2
|
|||||||||
Institutional & PWM
|
60
|
62
|
3.3
|
|||||||||
Total Fixed Income
|
1,741
|
1,797
|
3.2
|
|||||||||
Total Assets Under Management
|
$
|
36,405
|
$
|
47,010
|
29.1
|
%
|
||||||
|
Table IV: Assets Under Management by Quarter
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
|
%D | ||||||||||||||||||||||||||
|
12/12
|
3/13
|
6/13
|
9/13
|
12/13
|
12/12
|
9/13
|
||||||||||||||||||||
Equities:
|
|||||||||||||||||||||||||||
Open-end Funds
|
$
|
12,502
|
$
|
13,813
|
$
|
14,188
|
$
|
15,581
|
$
|
17,078
|
36.6
|
%
|
9.6
|
%
|
|||||||||||||
Closed-end Funds
|
6,288
|
6,557
|
6,409
|
6,721
|
6,945
|
10.4
|
3.3
|
||||||||||||||||||||
Institutional & PWM - direct
|
12,030
|
13,690
|
14,069
|
15,026
|
16,486
|
37.0
|
9.7
|
||||||||||||||||||||
Institutional & PWM - sub-advisory
|
2,924
|
3,299
|
3,185
|
3,503
|
3,797
|
29.9
|
8.4
|
||||||||||||||||||||
Investment Partnerships
|
801
|
796
|
778
|
805
|
811
|
1.2
|
0.7
|
||||||||||||||||||||
SICAV (a)
|
119
|
113
|
93
|
94
|
96
|
(19.3
|
)
|
2.1
|
|||||||||||||||||||
Total Equities
|
34,664
|
38,268
|
38,722
|
41,730
|
45,213
|
30.4
|
8.3
|
||||||||||||||||||||
Fixed Income:
|
|||||||||||||||||||||||||||
Money-Market Fund
|
1,681
|
1,758
|
1,689
|
1,714
|
1,735
|
3.2
|
1.2
|
||||||||||||||||||||
Institutional & PWM
|
60
|
64
|
67
|
63
|
62
|
3.3
|
(1.6
|
)
|
|||||||||||||||||||
Total Fixed Income
|
1,741
|
1,822
|
1,756
|
1,777
|
1,797
|
3.2
|
1.1
|
||||||||||||||||||||
Total Assets Under Management
|
$
|
36,405
|
$
|
40,090
|
$
|
40,478
|
$
|
43,507
|
$
|
47,010
|
29.1
|
%
|
8.1
|
%
|
|||||||||||||
|
|||||||||||||||||||||||||||
(a) Includes $104 million, $99 million, $90 million, $92 million and $94 million of proprietary seed capital at December 31, 2012,
|
|||||||||||||||||||||||||||
March 31, 2013, June 30, 2013, September 30, 2013 and December 31, 2013, respectively.
|
|||||||||||||||||||||||||||
|
Table V
|
|
||||||||||||
|
|
||||||||||||
GAMCO INVESTORS, INC.
|
|||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||||
(Dollars in thousands, except per share data)
|
|||||||||||||
|
|
||||||||||||
|
For the Quarter Ended December 31,
|
||||||||||||
|
|
% Inc.
|
|||||||||||
|
2012
|
|
2013
|
(Dec.)
|
|||||||||
|
|
||||||||||||
Investment advisory and incentive fees
|
$
|
85,697
|
|
$
|
106,170
|
23.9
|
%
|
||||||
Distribution fees and other income
|
11,080
|
|
14,544
|
31.3
|
|||||||||
Institutional research services
|
2,500
|
|
2,000
|
(20.0
|
)
|
||||||||
Total revenues
|
99,277
|
|
122,714
|
23.6
|
|||||||||
|
|
||||||||||||
Compensation costs
|
50,383
|
(a)
|
50,656
|
0.5
|
|||||||||
Distribution costs
|
10,267
|
|
13,286
|
29.4
|
|||||||||
Other operating expenses
|
10,725
|
|
7,225
|
(32.6
|
)
|
||||||||
Total expenses
|
71,375
|
|
71,167
|
(0.3
|
)
|
||||||||
|
|
||||||||||||
Operating income before management fee
|
27,902
|
|
51,547
|
84.7
|
|||||||||
|
|
||||||||||||
Investment income
|
7,220
|
|
14,385
|
||||||||||
Extinguishment of debt
|
-
|
|
(861
|
)
|
|||||||||
Interest expense
|
(3,480
|
)
|
|
(2,063
|
)
|
||||||||
Shareholder-designated contribution
|
-
|
|
(5,313
|
)
|
|||||||||
Other income, net
|
3,740
|
|
6,148
|
||||||||||
|
|
||||||||||||
Income before management fee and income taxes
|
31,642
|
|
57,695
|
82.3
|
|||||||||
Management fee expense
|
3,163
|
|
4,374
|
||||||||||
Income before income taxes
|
28,479
|
|
53,321
|
87.2
|
|||||||||
Income tax expense
|
10,812
|
|
19,752
|
||||||||||
Net income
|
17,667
|
|
33,569
|
90.0
|
|||||||||
Net income attributable to noncontrolling interests
|
73
|
|
252
|
||||||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
17,594
|
|
$
|
33,317
|
89.4
|
|||||||
|
|
||||||||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
|
||||||||||||
Basic
|
$
|
0.67
|
|
$
|
1.30
|
94.0
|
|||||||
|
|
||||||||||||
Diluted
|
$
|
0.67
|
|
$
|
1.29
|
92.5
|
|||||||
|
|
||||||||||||
Weighted average shares outstanding:
|
|
||||||||||||
Basic
|
26,208
|
|
25,567
|
(2.4
|
)
|
||||||||
|
|
||||||||||||
Diluted
|
26,305
|
|
25,733
|
(2.2
|
)
|
||||||||
|
|
||||||||||||
Actual shares outstanding (b)
|
25,746
|
|
26,086
|
1.3
|
%
|
||||||||
|
|
||||||||||||
Notes:
|
|
||||||||||||
(a) Includes $10.1 million in expenses from the acceleration of RSAs.
|
|
||||||||||||
(b) Includes 0 and 566,950 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 Year Ended December 31,
|
||||||||||||
|
|
% Inc.
|
|||||||||||
|
2012
|
|
2013
|
(Dec.)
|
|||||||||
|
|
||||||||||||
Investment advisory and incentive fees
|
$
|
288,480
|
|
$
|
336,658
|
16.7
|
%
|
||||||
Distribution fees and other income
|
44,848
|
|
51,964
|
15.9
|
|||||||||
Institutional research services
|
10,953
|
|
8,940
|
(18.4
|
)
|
||||||||
Total revenues
|
344,281
|
|
397,562
|
15.5
|
|||||||||
|
|
||||||||||||
Compensation costs
|
150,806
|
(a)
|
163,870
|
8.7
|
|||||||||
Distribution costs
|
40,842
|
|
48,936
|
19.8
|
|||||||||
Other operating expenses
|
28,485
|
|
23,515
|
(17.4
|
)
|
||||||||
Total expenses
|
220,133
|
|
236,321
|
7.4
|
|||||||||
|
|
||||||||||||
Operating income before management fee
|
124,148
|
|
161,241
|
29.9
|
|||||||||
|
|
||||||||||||
Investment income
|
28,392
|
|
63,274
|
||||||||||
Extinguishment of debt
|
(6,307
|
)
|
|
(998
|
)
|
||||||||
Interest expense
|
(15,899
|
)
|
|
(10,511
|
)
|
||||||||
Shareholder-designated contribution
|
-
|
|
(10,626
|
)
|
|||||||||
Other income, net
|
6,186
|
|
41,139
|
||||||||||
|
|
||||||||||||
Income before management fee and income taxes
|
130,334
|
|
202,380
|
55.3
|
|||||||||
Management fee expense
|
13,018
|
|
18,829
|
||||||||||
Income before income taxes
|
117,316
|
|
183,551
|
56.5
|
|||||||||
Income tax expense
|
41,721
|
|
66,186
|
||||||||||
Net income
|
75,595
|
|
117,365
|
55.3
|
|||||||||
Net income attributable to noncontrolling interests
|
56
|
|
512
|
||||||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
75,539
|
|
$
|
116,853
|
54.7
|
|||||||
|
|
||||||||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
|
||||||||||||
Basic
|
$
|
2.87
|
|
$
|
4.56
|
58.9
|
|||||||
|
|
||||||||||||
Diluted
|
$
|
2.86
|
|
$
|
4.54
|
58.7
|
|||||||
|
|
||||||||||||
Weighted average shares outstanding:
|
|
||||||||||||
Basic
|
26,283
|
|
25,653
|
(2.4
|
)
|
||||||||
|
|
||||||||||||
Diluted
|
26,436
|
|
25,712
|
(2.7
|
)
|
||||||||
|
|
||||||||||||
Actual shares outstanding (b)
|
25,746
|
|
26,086
|
1.3
|
%
|
||||||||
|
|
||||||||||||
Notes:
|
|
||||||||||||
(a) Includes $10.1 million in expenses from the acceleration of RSAs.
|
|
||||||||||||
(b) Includes 0 and 566,950 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
|
|
4th
|
|
|
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Full Year
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Full Year
|
Income Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 81,749
|
|
$ 81,024
|
|
$ 82,231
|
|
$ 99,277
|
|
$344,281
|
|
$ 86,181
|
|
$ 92,290
|
|
$ 96,377
|
|
$122,714
|
|
$397,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
50,553
|
|
48,042
|
|
50,163
|
|
71,375
|
(a)
|
220,133
|
|
51,474
|
|
55,660
|
|
58,020
|
|
71,167
|
|
236,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
management fee
|
|
31,196
|
|
32,982
|
|
32,068
|
|
27,902
|
|
124,148
|
|
34,707
|
|
36,630
|
|
38,357
|
|
51,547
|
|
161,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/(loss)
|
|
15,114
|
|
(2,389)
|
|
2,140
|
(b)
|
7,220
|
|
22,085
|
|
13,636
|
|
14,648
|
|
20,468
|
|
13,524
|
|
62,276
|
Interest expense
|
|
(4,404)
|
|
(4,429)
|
|
(3,586)
|
|
(3,480)
|
|
(15,899)
|
|
(3,488)
|
|
(2,796)
|
|
(2,164)
|
|
(2,063)
|
|
(10,511)
|
Shareholder-designated contribution
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,000)
|
|
-
|
|
(313)
|
|
(5,313)
|
|
(10,626)
|
Other income/(expense), net
|
|
10,710
|
|
(6,818)
|
|
(1,446)
|
|
3,740
|
|
6,186
|
|
5,148
|
|
11,852
|
|
17,991
|
|
6,148
|
|
41,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
fee and income taxes
|
|
41,906
|
|
26,164
|
|
30,622
|
|
31,642
|
|
130,334
|
|
39,855
|
|
48,482
|
|
56,348
|
|
57,695
|
|
202,380
|
Management fee expense
|
|
4,184
|
|
2,615
|
|
3,056
|
|
3,163
|
|
13,018
|
|
3,980
|
|
4,846
|
|
5,629
|
|
4,374
|
|
18,829
|
Income before income taxes
|
|
37,722
|
|
23,549
|
|
27,566
|
|
28,479
|
|
117,316
|
|
35,875
|
|
43,636
|
|
50,719
|
|
53,321
|
|
183,551
|
Income tax expense
|
|
13,756
|
|
8,686
|
|
8,467
|
|
10,812
|
|
41,721
|
|
13,195
|
|
15,724
|
|
17,515
|
|
19,752
|
|
66,186
|
Net income
|
|
23,966
|
|
14,863
|
|
19,099
|
|
17,667
|
|
75,595
|
|
22,680
|
|
27,912
|
|
33,204
|
|
33,569
|
|
117,365
|
Net income/(loss) attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to noncontrolling interests
|
|
130
|
|
(242)
|
|
95
|
|
73
|
|
56
|
|
135
|
|
19
|
|
106
|
|
252
|
|
512
|
Net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAMCO Investors, Inc.
|
|
$ 23,836
|
|
$ 15,105
|
|
$ 19,004
|
|
$ 17,594
|
|
$ 75,539
|
|
$ 22,545
|
|
$ 27,893
|
|
$ 33,098
|
|
$ 33,317
|
|
$116,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to GAMCO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investors, Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.90
|
|
$ 0.58
|
|
$ 0.72
|
|
$ 0.67
|
|
$ 2.87
|
|
$ 0.88
|
|
$ 1.09
|
|
$ 1.29
|
|
$ 1.30
|
|
$ 4.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$ 0.90
|
|
$ 0.57
|
|
$ 0.72
|
|
$ 0.67
|
|
$ 2.86
|
|
$ 0.88
|
|
$ 1.09
|
|
$ 1.29
|
|
$ 1.29
|
|
$ 4.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
26,415
|
|
26,258
|
|
26,250
|
|
26,208
|
|
26,283
|
|
25,742
|
|
25,679
|
|
25,625
|
|
25,567
|
|
25,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
26,533
|
|
26,426
|
|
26,439
|
|
26,305
|
|
26,436
|
|
25,758
|
|
25,689
|
|
25,700
|
|
25,733
|
|
25,712
|
Reconciliation of non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financial measures to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
management fee
|
|
$ 31,196
|
|
$ 32,982
|
|
$ 32,068
|
|
$ 27,902
|
|
$124,148
|
|
$ 34,707
|
|
$ 36,630
|
|
$ 38,357
|
|
$ 51,547
|
|
$161,241
|
Deduct: management fee expense
|
|
4,184
|
|
2,615
|
|
3,056
|
|
3,163
|
|
13,018
|
|
3,980
|
|
4,846
|
|
5,629
|
|
4,374
|
|
18,829
|
Operating income
|
|
$ 27,012
|
|
$ 30,367
|
|
$ 29,012
|
|
$ 24,739
|
|
$111,130
|
|
$ 30,727
|
|
$ 31,784
|
|
$ 32,728
|
|
$ 47,173
|
|
$142,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
management fee
|
|
38.2%
|
|
40.7%
|
|
39.0%
|
|
28.1%
|
|
36.1%
|
|
40.3%
|
|
39.7%
|
|
39.8%
|
|
42.0%
|
|
40.6%
|
Operating margin after
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
management fee
|
|
33.0%
|
|
37.5%
|
|
35.3%
|
|
24.9%
|
|
32.3%
|
|
35.7%
|
|
34.4%
|
|
34.0%
|
|
38.4%
|
|
35.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
||||||||
|
||||||||
|
December 31,
|
December 31,
|
||||||
|
2012
|
2013
|
||||||
|
||||||||
ASSETS
|
||||||||
|
||||||||
Cash and cash equivalents
|
$
|
190,608
|
$
|
210,451
|
||||
Investments (a)
|
378,263
|
371,262
|
||||||
Receivable from brokers
|
50,655
|
49,461
|
||||||
Other receivables
|
52,600
|
60,390
|
||||||
Income tax receivable
|
1,014
|
445
|
||||||
Other assets
|
17,589
|
17,477
|
||||||
|
||||||||
Total assets
|
$
|
690,729
|
$
|
709,486
|
||||
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
|
||||||||
Payable to brokers
|
$
|
14,346
|
$
|
10,765
|
||||
Income taxes payable and deferred tax liabilities
|
25,394
|
39,846
|
||||||
Compensation payable
|
10,535
|
34,663
|
||||||
Securities sold short, not yet purchased
|
3,136
|
6,178
|
||||||
Accrued expenses and other liabilities
|
32,656
|
39,190
|
||||||
Sub-total
|
86,067
|
130,642
|
||||||
|
||||||||
5.5% Senior notes (repaid May 15, 2013)
|
99,000
|
-
|
||||||
5.875% Senior notes (due June 1, 2021)
|
100,000
|
100,000
|
||||||
0% Subordinated Debentures (due December 31, 2015) (b)
|
17,366
|
11,911
|
||||||
Total debt
|
216,366
|
111,911
|
||||||
Total liabilities
|
302,433
|
242,553
|
||||||
|
||||||||
Redeemable noncontrolling interests
|
17,362
|
6,751
|
||||||
|
||||||||
GAMCO Investors, Inc.'s stockholders' equity
|
367,608
|
457,331
|
||||||
Noncontrolling interests
|
3,326
|
2,851
|
||||||
Total equity
|
370,934
|
460,182
|
||||||
|
||||||||
Total liabilities and equity
|
$
|
690,729
|
$
|
709,486
|
||||
|
||||||||
(a) Includes investments in sponsored registered investment companies of $61.9 million and $44.0 million, respectively.
|
||||||||
(b) The 0% Subordinated Debentures due December 31, 2015 have a face value of $21.7 million and $13.8 million, respectively.
|
||||||||
|