Delaware
|
|
1-14761
|
|
13-4007862
|
(State or other
jurisdiction of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer
Identification No.)
|
|
|
|
||
One Corporate Center, Rye, NY
|
|
|
|
10580
|
(Address of principal executive offices)
|
|
|
|
(Zip Code)
|
|
|
|
Item 2.02
|
|
Results of Operations and Financial Condition.
|
|
|
|
Item 9.01
|
|
Financial Statements and Exhibits.
|
For Immediate Release:
|
Contact:
|
Kieran Caterina or Diane M. LaPointe
|
|
|
SVPs and Co-Chief Accounting Officers
|
|
|
(914) 921-5149 or 7763
|
|
|
|
|
|
For further information please visit
|
|
|
www.gabelli.com
|
·
|
AUM of $39.7 billion, up 3% year over year
|
·
|
Fourth Quarter Earnings of $1.07 per diluted share vs. $0.67 per diluted share
|
·
|
Operating income was $191.8 million in 2016 vs. $147.9 million in 2015
|
·
|
Full Year Earnings of $3.92 per diluted share
|
Financial Highlights
|
||||||||||||||||||||||||||||||||
|
Fourth Quarter
|
Full Year
|
||||||||||||||||||||||||||||||
($'s in 000's except AUM and per share data)
|
2016 (a)
|
2015
|
2016 (a)
|
2015
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
AUM - end of period (in millions)
|
$
|
39,684
|
$
|
38,659
|
$
|
39,684
|
$
|
38,659
|
||||||||||||||||||||||||
AUM - average (in millions)
|
39,328
|
40,324
|
38,878
|
43,246
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Revenues
|
84,650
|
86,661
|
337,579
|
376,561
|
||||||||||||||||||||||||||||
Incentive fees
|
15,300
|
3,656
|
15,421
|
4,415
|
||||||||||||||||||||||||||||
Total revenues
|
$
|
99,950
|
$
|
90,317
|
$
|
353,000
|
$
|
380,976
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Operating income
|
52,031
|
33,102
|
191,796
|
147,949
|
||||||||||||||||||||||||||||
Operating margin
|
52.1
|
%
|
36.7
|
%
|
54.3
|
%
|
38.8
|
%
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Other expense, net
|
(1,462
|
)
|
(5,153
|
)
|
(9,569
|
)
|
(8,924
|
)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Income before income taxes
|
50,569
|
27,949
|
182,227
|
139,025
|
||||||||||||||||||||||||||||
Effective tax rate
|
35.4
|
%
|
35.9
|
%
|
35.7
|
%
|
37.2
|
%
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Income from continuing ops
|
32,692
|
17,925
|
117,121
|
87,299
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Gain/(loss) from discontinued ops
|
-
|
1,642
|
-
|
(3,887
|
)
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net income
|
32,692
|
19,567
|
117,121
|
83,412
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net income per fully diluted share - continuing ops
|
$
|
1.07
|
$
|
0.67
|
$
|
3.92
|
$
|
3.40
|
||||||||||||||||||||||||
Gain/(loss) per fully diluted share - discontinued ops
|
$
|
-
|
$
|
0.06
|
$
|
-
|
$ |
(0.15
|
)
|
|||||||||||||||||||||||
Net income per fully diluted share
|
$
|
1.07
|
$
|
0.73
|
$
|
3.92
|
$
|
3.24
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Weighted average diluted shares outstanding
|
31,241
|
26,813
|
30,170
|
25,711
|
||||||||||||||||||||||||||||
Shares outstanding at December 31 (b)
|
29,463
|
29,821
|
29,463
|
29,821
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
(a) See page 4 for discussion of deferred compensation impact.
|
||||||||||||||||||||||||||||||||
(b) Shares outstanding consist of 29,039 non-RSA shares and 424 RSA shares at December 31, 2016
|
||||||||||||||||||||||||||||||||
and 29,268 non-RSA shares and 553 RSA shares at December 31, 2015.
|
||||||||||||||||||||||||||||||||
|
|
% Change From
|
|||||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
September 30,
|
December 31,
|
|||||||||||||||
|
2016
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
13,462
|
$
|
13,799
|
$
|
13,811
|
(2.4
|
%)
|
(2.5
|
%)
|
||||||||||
Closed-end Funds
|
7,150
|
7,178
|
6,492
|
(0.4
|
)
|
10.1
|
||||||||||||||
Institutional & PWM - direct
|
13,441
|
13,245
|
13,366
|
1.5
|
0.6
|
|||||||||||||||
Institutional & PWM - sub-advisory
|
3,783
|
3,542
|
3,401
|
6.8
|
11.2
|
|||||||||||||||
SICAV
|
50
|
42
|
37
|
19.0
|
35.1
|
|||||||||||||||
Total Equities
|
37,886
|
37,806
|
37,107
|
0.2
|
2.1
|
|||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,767
|
1,738
|
1,514
|
1.7
|
16.7
|
|||||||||||||||
Institutional & PWM
|
31
|
37
|
38
|
(16.2
|
)
|
(18.4
|
)
|
|||||||||||||
Total Fixed Income
|
1,798
|
1,775
|
1,552
|
1.3
|
15.9
|
|||||||||||||||
Total Assets Under Management
|
$
|
39,684
|
$
|
39,581
|
$
|
38,659
|
0.3
|
2.7
|
||||||||||||
Institutional & PWM - direct includes $290 million, $286 million and $226 million of Money Market Fund AUM at December 31, 2016,
|
||||||||||||||||||||
September 30, 2016 and December 31, 2015, respectively.
|
||||||||||||||||||||
|
-
|
Total revenues for the fourth quarter of 2016 were $100.0 million, compared with $90.3 million in the prior year, reflecting an increase in incentive fees of $11.6 million, offset slightly by a decline of $2.0 million in investment advisory fees based on a lower level of assets and a decline in distribution fees and other income.
|
-
|
Investment advisory fees, excluding incentive fees, were $73.6 million in the fourth quarter of 2016 versus $75.0 million in the fourth quarter of 2015. Revenues from our open-end and closed-end funds tracked our average AUM in the funds and were $47.5 million. Institutional and Private Wealth Management accounted for $25.3 million of the revenues in 2016 versus $25.4 million in 2015.
|
-
|
Incentive fees earned were $15.3 million and $3.7 million during the fourth quarter ended December 31, 2016 and December 31, 2015, respectively. The majority of the increase was from the $7.3 million earned on closed-end fund preferred shares in 2016 versus none in 2015.
|
-
|
Distribution fees from our open-end equity funds and other income were $11.1 million for the fourth quarter 2016, down from $11.6 million in the prior year quarter.
|
|
For the three months ended December 31, 2016
|
|||||||||||
|
Impact of
|
|||||||||||
|
Reported
|
Deferred
|
||||||||||
|
GAAP
|
Compensation
|
Non-GAAP
|
|||||||||
|
||||||||||||
Total revenues
|
$
|
99,950
|
$
|
-
|
$
|
99,950
|
||||||
|
||||||||||||
Compensation costs
|
24,442
|
13,718
|
38,160
|
|||||||||
Distribution costs
|
11,403
|
-
|
11,403
|
|||||||||
Other operating expenses
|
8,932
|
-
|
8,932
|
|||||||||
Total expenses
|
44,777
|
13,718
|
58,495
|
|||||||||
|
||||||||||||
Operating income before management fee
|
55,173
|
(13,718
|
)
|
41,455
|
||||||||
|
||||||||||||
Other expense, net
|
(1,462
|
)
|
-
|
(1,462
|
)
|
|||||||
|
||||||||||||
Income before management fee and income taxes
|
53,711
|
(13,718
|
)
|
39,993
|
||||||||
Management fee expense
|
3,142
|
856
|
3,998
|
|||||||||
Income before income taxes
|
50,569
|
(14,574
|
)
|
35,995
|
||||||||
Income tax expense
|
17,877
|
(5,465
|
)
|
12,412
|
||||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
32,692
|
$
|
(9,109
|
)
|
$
|
23,583
|
|||||
|
||||||||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
||||||||||||
Basic
|
$
|
1.12
|
$
|
(0.31
|
)
|
$
|
0.81
|
|||||
Diluted
|
$
|
1.07
|
$
|
(0.27
|
)
|
$
|
0.78
|
|||||
|
|
For the year ended December 31, 2016
|
|||||||||||
|
Impact of
|
|||||||||||
|
Reported
|
Deferred
|
||||||||||
|
GAAP
|
Compensation
|
Non-GAAP
|
|||||||||
|
||||||||||||
Total revenues
|
$
|
353,000
|
$
|
-
|
$
|
353,000
|
||||||
|
||||||||||||
Compensation costs
|
86,572
|
45,734
|
132,306
|
|||||||||
Distribution costs
|
44,189
|
-
|
44,189
|
|||||||||
Other operating expenses
|
23,925
|
-
|
23,925
|
|||||||||
Total expenses
|
154,686
|
45,734
|
200,420
|
|||||||||
|
||||||||||||
Operating income before management fee
|
198,314
|
(45,734
|
)
|
152,580
|
||||||||
|
||||||||||||
Other expense, net
|
(9,569
|
)
|
-
|
(9,569
|
)
|
|||||||
|
||||||||||||
Income before management fee and income taxes
|
188,745
|
(45,734
|
)
|
143,011
|
||||||||
Management fee expense
|
6,518
|
7,782
|
14,300
|
|||||||||
Income before income taxes
|
182,227
|
(53,516
|
)
|
128,711
|
||||||||
Income tax expense
|
65,106
|
(20,069
|
)
|
45,037
|
||||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
117,121
|
$
|
(33,447
|
)
|
$
|
83,674
|
|||||
|
||||||||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
||||||||||||
Basic
|
$
|
4.01
|
$
|
(1.15
|
)
|
$
|
2.87
|
|||||
Diluted
|
$
|
3.92
|
$
|
(1.07
|
)
|
$
|
2.81
|
|||||
|
|
December 31, 2016
|
|||||||||||
|
Impact of
|
|||||||||||
|
Reported
|
Deferred
|
||||||||||
|
GAAP
|
Compensation
|
Non-GAAP
|
|||||||||
|
||||||||||||
ASSETS
|
||||||||||||
|
||||||||||||
Other assets
|
$
|
139,880
|
$
|
-
|
$
|
139,880
|
||||||
Income tax receivable
|
9,349
|
20,069
|
29,418
|
|||||||||
Total assets
|
$
|
149,229
|
$
|
20,069
|
$
|
169,298
|
||||||
|
||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
|
||||||||||||
Compensation payable
|
$
|
42,384
|
$
|
53,516
|
$
|
95,900
|
||||||
Accrued expenses and other liabilities
|
39,537
|
-
|
39,537
|
|||||||||
Sub-total
|
81,921
|
53,516
|
135,437
|
|||||||||
|
||||||||||||
5.875% Senior notes (due June 1, 2021)
|
24,120
|
-
|
24,120
|
|||||||||
4.5% Convertible note (due August 15, 2021)
|
109,835
|
-
|
109,835
|
|||||||||
4% PIK note (due November 30, 2020)
|
100,000
|
-
|
100,000
|
|||||||||
Total debt
|
$
|
233,955
|
-
|
$
|
233,955
|
|||||||
Total liabilities
|
315,876
|
53,516
|
369,392
|
|||||||||
|
||||||||||||
GAMCO Investors, Inc.'s stockholders' deficit
|
(166,647
|
)
|
(33,447
|
)
|
(200,094
|
)
|
||||||
|
||||||||||||
Total liabilities and equity
|
$
|
149,229
|
$
|
20,069
|
$
|
169,298
|
||||||
|
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
RSU expense
|
|
(53,516)
|
|
17,839
|
|
17,839
|
|
17,839
|
|
|
|
|
|
|
|
|
|
-
|
On December 1, 2016, the Company launched Gabelli Media Mogul (NYSE: MOGLC), its first in a series of actively managed, non-transparent exchange traded managed funds (“ETMFs”). Gabelli Media Mogul will invest primarily in the media industry; specifically in companies that were spun-off from Dr. John Malone’s Liberty Media Corporation (“Liberty Media”) as constituted in 2001, including companies formed through subsequent mergers of those spin-offs and companies in which Liberty Media and its successors have invested.
|
-
|
On October 4, 2016, the Company announced that Katrina O’Leary joined GAMCO’s institutional team as Vice President, head of Consultant Relations. Ms. O’Leary will launch a dedicated effort to develop the firm’s relationships with the global consulting community. The role underscores GAMCO’s commitment to delivering superior risk adjusted returns and providing best in class client service in a rapidly changing investment environment.
|
-
|
On August 15, 2016, the Company issued a $110 million five year convertible note to Cascade Investment, L.L.C. in a private transaction. The note has a coupon of 4.5% and is convertible into GBL Class A common stock at $55 per share.
|
-
|
On September 2, 2016, GAMCO completed the initial public offering of The Gabelli Go Anywhere Trust, the Company’s 15th closed-end fund. This newly organized closed-end fund initially traded on the NYSE MKT as a $100 combination consisting of one preferred share at $40 and three common shares at $19 each under the symbol GGO.C. This innovative offering demonstrates the flexibility of the closed-end fund structure. Separate trading on the NYSE MKT for the common shares (“GGO”) and the Series A Preferred shares (“GGO.A”) commenced on November 2, 2016.
|
-
|
2016 was the first full year of advising the Bancroft and Ellsworth Growth and Income Funds. The Dinsmore team now manages over $350 million in AUM across three closed-end funds.
|
-
|
Net debt improved from $262.4 million at December 31, 2015 to $156.9 million at December 31, 2016.
|
A.
|
Operating income before management fee expense is used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of GAMCO Investors, Inc. (the “Company”) as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense. The reconciliation of operating income before management fee expense to operating income is provided in Table V.
|
B.
|
Adjusted operating income and adjusted operating income before management fee expense are used by management to evaluate its ongoing business operations. We believe these adjusted measures, which remove these items, are useful in evaluating the ongoing operating results of the Company as the nature of these items reduces the comparability of the results with prior periods and is not indicative of results for future periods.
|
|
|
4th Quarter
|
Full Year
|
||||||||||||||
|
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Operating income before management fee
|
$
|
55,173
|
$
|
36,220
|
$
|
198,314
|
$
|
163,452
|
|||||||||
Adjustments:
|
|||||||||||||||||
Add back:
|
Incremental RSA expense
|
-
|
4,244
|
-
|
5,910
|
||||||||||||
Costs to launch Closed-end fund |
-
|
-
|
638
|
1,000
|
|||||||||||||
Deduct:
|
Variable compensation reduction from RSU
|
(13,718
|
)
|
-
|
(45,734
|
)
|
-
|
||||||||||
Adjusted operating income before management fee
|
41,455
|
40,464
|
153,218
|
170,362
|
|||||||||||||
Adjusted operating margin before management fee
|
41.5
|
%
|
44.8
|
%
|
43.4
|
%
|
44.7
|
%
|
|||||||||
|
|
|
|
4th Quarter
|
Full Year
|
||||||||||||||
|
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Operating income
|
$
|
52,031
|
$
|
33,102
|
$
|
191,796
|
$
|
147,949
|
|||||||||
Adjustments:
|
|||||||||||||||||
Add back:
|
Incremental RSA expense
|
-
|
4,244
|
-
|
5,910
|
||||||||||||
Costs to launch Closed-end fund
|
-
|
-
|
638
|
1,000
|
|||||||||||||
Deduct:
|
Variable compensation reduction from RSU
|
(14,686
|
)
|
-
|
(53,628
|
)
|
-
|
||||||||||
Adjusted operating income
|
37,345
|
37,346
|
138,806
|
154,859
|
|||||||||||||
Adjusted operating margin
|
37.4
|
%
|
41.3
|
%
|
39.3
|
%
|
40.6
|
%
|
|||||||||
|
|
The Company reported Assets Under Management as follows (in millions):
|
||||||||||||||||||||
|
||||||||||||||||||||
Table I: Fund Flows - 4th Quarter 2016
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
September 30,
|
appreciation/
|
Net cash
|
net of
|
December 31,
|
|||||||||||||||
|
2016
|
(depreciation)
|
flows
|
reinvestments
|
2016
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
13,799
|
$
|
280
|
$
|
(568
|
)
|
$
|
(49
|
)
|
$
|
13,462
|
||||||||
Closed-end Funds
|
7,178
|
94
|
8
|
(130
|
)
|
7,150
|
||||||||||||||
Institutional & PWM - direct
|
13,245
|
742
|
(546
|
)
|
-
|
13,441
|
||||||||||||||
Institutional & PWM - sub-advisory
|
3,542
|
294
|
(53
|
)
|
-
|
3,783
|
||||||||||||||
SICAV
|
42
|
1
|
7
|
-
|
50
|
|||||||||||||||
Total Equities
|
37,806
|
1,411
|
(1,152
|
)
|
(179
|
)
|
37,886
|
|||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,738
|
1
|
28
|
-
|
1,767
|
|||||||||||||||
Institutional & PWM
|
37
|
-
|
(6
|
)
|
-
|
31
|
||||||||||||||
Total Fixed Income
|
1,775
|
1
|
22
|
-
|
1,798
|
|||||||||||||||
Total Assets Under Management
|
$
|
39,581
|
$
|
1,412
|
$
|
(1,130
|
)
|
$
|
(179
|
)
|
$
|
39,684
|
||||||||
|
||||||||||||||||||||
|
Table II: Fund Flows - Full Year 2016
|
||||||||||||||||||||
|
Fund
|
|||||||||||||||||||
|
Market
|
distributions,
|
||||||||||||||||||
|
December 31,
|
appreciation/
|
Net cash
|
net of
|
December 31,
|
|||||||||||||||
|
2015
|
(depreciation)
|
flows
|
reinvestments
|
2016
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
13,811
|
$
|
1,483
|
$
|
(1,737
|
)
|
$
|
(95
|
)
|
$
|
13,462
|
||||||||
Closed-end Funds
|
6,492
|
713
|
445
|
(500
|
)
|
7,150
|
||||||||||||||
Institutional & PWM - direct
|
13,366
|
1,646
|
(1,571
|
)
|
-
|
13,441
|
||||||||||||||
Institutional & PWM - sub-advisory
|
3,401
|
608
|
(226
|
)
|
-
|
3,783
|
||||||||||||||
SICAV
|
37
|
5
|
8
|
-
|
50
|
|||||||||||||||
Total Equities
|
37,107
|
4,455
|
(3,081
|
)
|
(595
|
)
|
37,886
|
|||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,514
|
4
|
249
|
-
|
1,767
|
|||||||||||||||
Institutional & PWM
|
38
|
-
|
(7
|
)
|
-
|
31
|
||||||||||||||
Total Fixed Income
|
1,552
|
4
|
242
|
-
|
1,798
|
|||||||||||||||
Total Assets Under Management
|
$
|
38,659
|
$
|
4,459
|
$
|
(2,839
|
)
|
$
|
(595
|
)
|
$
|
39,684
|
||||||||
|
||||||||||||||||||||
|
Table III
|
||||||||
|
||||||||
GAMCO INVESTORS, INC.
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
(Dollars in thousands, except per share data)
|
||||||||
|
||||||||
|
For the Quarter Ended
|
|||||||
|
December 31,
|
|||||||
|
2016
|
2015
|
||||||
|
||||||||
Investment advisory and incentive fees
|
$
|
88,865
|
$
|
78,696
|
||||
Distribution fees and other income
|
11,085
|
11,621
|
||||||
Total revenues
|
99,950
|
90,317
|
||||||
|
||||||||
Compensation costs
|
24,442
|
37,195
|
||||||
Distribution costs
|
11,403
|
11,897
|
||||||
Other operating expenses
|
8,932
|
5,005
|
||||||
Total expenses
|
44,777
|
54,097
|
||||||
|
||||||||
Operating income before management fee
|
55,173
|
36,220
|
||||||
|
||||||||
Investment income
|
1,483
|
4,304
|
||||||
Interest expense
|
(2,945
|
)
|
(3,061
|
)
|
||||
Shareholder-designated contribution
|
-
|
(6,396
|
)
|
|||||
Other expense, net
|
(1,462
|
)
|
(5,153
|
)
|
||||
|
||||||||
Income before management fee and income taxes
|
53,711
|
31,067
|
||||||
Management fee expense
|
3,142
|
3,118
|
||||||
Income before income taxes
|
50,569
|
27,949
|
||||||
Income tax expense
|
17,877
|
10,024
|
||||||
Income from continuing operations
|
32,692
|
17,925
|
||||||
Gain from discontinued operations, net of taxes
|
-
|
1,642
|
||||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
32,692
|
$
|
19,567
|
||||
|
||||||||
Net income per share attributable to GAMCO Investors, Inc.:
|
||||||||
Basic - Continuing operations
|
$
|
1.12
|
$
|
0.68
|
||||
Basic - Discontinued operations
|
-
|
0.06
|
||||||
Basic - Total
|
$
|
1.12
|
$
|
0.74
|
||||
|
||||||||
Diluted - Continuing operations
|
$
|
1.07
|
$
|
0.67
|
||||
Diluted - Discontinued operations
|
-
|
0.06
|
||||||
Diluted - Total
|
$
|
1.07
|
$
|
0.73
|
||||
|
||||||||
Weighted average shares outstanding:
|
||||||||
Basic
|
29,062
|
26,547
|
||||||
|
||||||||
Diluted
|
31,241
|
26,813
|
||||||
|
||||||||
Actual shares outstanding (a)
|
29,463
|
29,821
|
||||||
|
||||||||
Notes:
|
||||||||
(a) Includes 424,340 and 553,100 of RSAs, respectively.
|
||||||||
See GAAP to non-GAAP reconciliation on page 13.
|
Table IV
|
||||||||
|
||||||||
GAMCO INVESTORS, INC.
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
(Dollars in thousands, except per share data)
|
||||||||
|
||||||||
|
For the Year Ended
|
|||||||
|
December 31,
|
|||||||
|
2016
|
2015
|
||||||
|
||||||||
Investment advisory and incentive fees
|
$
|
308,459
|
$
|
329,965
|
||||
Distribution fees and other income
|
44,541
|
51,011
|
||||||
Total revenues
|
353,000
|
380,976
|
||||||
|
||||||||
Compensation costs
|
86,572
|
146,371
|
||||||
Distribution costs
|
44,189
|
51,990
|
||||||
Other operating expenses
|
23,925
|
19,163
|
||||||
Total expenses
|
154,686
|
217,524
|
||||||
|
||||||||
Operating income before management fee
|
198,314
|
163,452
|
||||||
|
||||||||
Investment income
|
3,105
|
6,108
|
||||||
Interest expense
|
(12,674
|
)
|
(8,636
|
)
|
||||
Shareholder-designated contribution
|
-
|
(6,396
|
)
|
|||||
Other expense, net
|
(9,569
|
)
|
(8,924
|
)
|
||||
|
||||||||
Income before management fee and income taxes
|
188,745
|
154,528
|
||||||
Management fee expense
|
6,518
|
15,503
|
||||||
Income before income taxes
|
182,227
|
139,025
|
||||||
Income tax expense
|
65,106
|
51,726
|
||||||
Income from continuing operations
|
117,121
|
87,299
|
||||||
Loss from discontinued operations, net of taxes
|
-
|
(3,887
|
)
|
|||||
Net income attributable to GAMCO Investors, Inc.
|
$
|
117,121
|
$
|
83,412
|
||||
|
||||||||
Net income/(loss) per share attributable to GAMCO Investors, Inc.:
|
||||||||
Basic - Continuing operations
|
$
|
4.01
|
$
|
3.43
|
||||
Basic - Discontinued operations
|
-
|
(0.15
|
)
|
|||||
Basic - Total
|
$
|
4.01
|
$
|
3.28
|
||||
|
||||||||
Diluted - Continuing operations
|
$
|
3.92
|
$
|
3.40
|
||||
Diluted - Discontinued operations
|
-
|
(0.15
|
)
|
|||||
Diluted - Total
|
$
|
3.92
|
$
|
3.24
|
||||
|
||||||||
Weighted average shares outstanding:
|
||||||||
Basic
|
29,182
|
25,425
|
||||||
|
||||||||
Diluted
|
30,170
|
25,711
|
||||||
|
||||||||
Actual shares outstanding (a)
|
29,463
|
29,821
|
||||||
|
||||||||
Notes:
|
||||||||
(a) Includes 424,340 and 553,100 of RSAs, respectively.
|
||||||||
See GAAP to non-GAAP reconciliation on page 13.
|
Table V
|
||||||||||||||||||||||||||||||||||||||||
GAMCO INVESTORS, INC.
|
||||||||||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||||||||||||||||||||||
|
1st
|
2nd
|
3rd
|
4th
|
1st
|
2nd
|
3rd
|
4th
|
||||||||||||||||||||||||||||||||
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Full Year
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Full Year
|
||||||||||||||||||||||||||||||
Income Statement Data:
|
||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Revenues
|
$
|
81,385
|
$
|
83,944
|
$
|
87,721
|
$
|
99,950
|
$
|
353,000
|
$
|
99,806
|
$
|
98,693
|
$
|
92,160
|
$
|
90,317
|
$
|
380,976
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Expenses
|
35,363
|
36,064
|
38,482
|
44,777
|
154,686
|
57,081
|
55,518
|
50,828
|
54,097
|
217,524
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Operating income before
|
||||||||||||||||||||||||||||||||||||||||
management fee
|
46,022
|
47,880
|
49,239
|
55,173
|
198,314
|
42,725
|
43,175
|
41,332
|
36,220
|
163,452
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Investment income
|
591
|
605
|
426
|
1,483
|
3,105
|
541
|
638
|
625
|
4,304
|
6,108
|
||||||||||||||||||||||||||||||
Interest expense
|
(3,406
|
)
|
(3,168
|
)
|
(3,155
|
)
|
(2,945
|
)
|
(12,674
|
)
|
(1,905
|
)
|
(1,855
|
)
|
(1,815
|
)
|
(3,061
|
)
|
(8,636
|
)
|
||||||||||||||||||||
Shareholder-designated | ||||||||||||||||||||||||||||||||||||||||
contribution
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(6,396
|
)
|
(6,396
|
)
|
||||||||||||||||||||||||||||
Other expense, net
|
(2,815
|
)
|
(2,563
|
)
|
(2,729
|
)
|
(1,462
|
)
|
(9,569
|
)
|
(1,364
|
)
|
(1,217
|
)
|
(1,190
|
)
|
(5,153
|
)
|
(8,924
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Income before management
|
||||||||||||||||||||||||||||||||||||||||
fee and income taxes
|
43,207
|
45,317
|
46,510
|
53,711
|
188,745
|
41,361
|
41,958
|
40,142
|
31,067
|
154,528
|
||||||||||||||||||||||||||||||
Management fee expense
|
1,080
|
1,133
|
1,163
|
3,142
|
6,518
|
4,135
|
4,194
|
4,056
|
3,118
|
15,503
|
||||||||||||||||||||||||||||||
Income before income taxes
|
42,127
|
44,184
|
45,347
|
50,569
|
182,227
|
37,226
|
37,764
|
36,086
|
27,949
|
139,025
|
||||||||||||||||||||||||||||||
Income tax expense
|
16,102
|
16,641
|
14,486
|
17,877
|
65,106
|
14,078
|
13,989
|
13,635
|
10,024
|
51,726
|
||||||||||||||||||||||||||||||
Income from continuing operations
|
26,025
|
27,543
|
30,861
|
32,692
|
117,121
|
23,148
|
23,775
|
22,451
|
17,925
|
87,299
|
||||||||||||||||||||||||||||||
Income/(loss) from discontinued
|
||||||||||||||||||||||||||||||||||||||||
operations, net of taxes
|
-
|
-
|
-
|
-
|
-
|
1,628
|
326
|
(7,483
|
)
|
1,642
|
(3,887
|
)
|
||||||||||||||||||||||||||||
Net income attributable to
|
||||||||||||||||||||||||||||||||||||||||
GAMCO Investors, Inc.
|
$
|
26,025
|
$
|
27,543
|
$
|
30,861
|
$
|
32,692
|
$
|
117,121
|
$
|
24,776
|
$
|
24,101
|
$
|
14,968
|
$
|
19,567
|
$
|
83,412
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Net income per share
|
||||||||||||||||||||||||||||||||||||||||
attributable to GAMCO
|
||||||||||||||||||||||||||||||||||||||||
Investors, Inc.:
|
||||||||||||||||||||||||||||||||||||||||
Basic - Continuing operations
|
$
|
0.89
|
$
|
0.94
|
$
|
1.06
|
$
|
1.12
|
$
|
4.01
|
$
|
0.92
|
$
|
0.95
|
$
|
0.90
|
$
|
0.68
|
$
|
3.43
|
||||||||||||||||||||
Basic - Discontinued operations
|
-
|
-
|
-
|
-
|
-
|
0.07
|
0.01
|
(0.30
|
)
|
0.06
|
(0.15
|
)
|
||||||||||||||||||||||||||||
Basic - Total
|
$
|
0.89
|
$
|
0.94
|
$
|
1.06
|
$
|
1.12
|
$
|
4.01
|
$
|
0.99
|
$
|
0.96
|
$
|
0.60
|
$
|
0.74
|
$
|
3.28
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Diluted - Continuing operations
|
$
|
0.88
|
$
|
0.93
|
$
|
1.03
|
$
|
1.07
|
$
|
3.92
|
$
|
0.91
|
$
|
0.94
|
$
|
0.89
|
$
|
0.67
|
$
|
3.40
|
||||||||||||||||||||
Diluted - Discontinued operations
|
-
|
-
|
-
|
-
|
-
|
0.06
|
0.01
|
(0.30
|
)
|
0.06
|
(0.15
|
)
|
||||||||||||||||||||||||||||
Diluted - Total
|
$
|
0.88
|
$
|
0.93
|
$
|
1.03
|
$
|
1.07
|
$
|
3.92
|
$
|
0.97
|
$
|
0.95
|
$
|
0.59
|
$
|
0.73
|
$
|
3.24
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||||||||||||||||||||||||||
Basic
|
29,247
|
29,234
|
29,185
|
29,062
|
29,182
|
25,132
|
25,065
|
24,947
|
26,547
|
25,425
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Diluted
|
29,684
|
29,522
|
30,406
|
31,241
|
30,170
|
25,414
|
25,358
|
25,241
|
26,813
|
25,711
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Reconciliation of non-GAAP
|
||||||||||||||||||||||||||||||||||||||||
financial measures to GAAP:
|
||||||||||||||||||||||||||||||||||||||||
Operating income before
|
||||||||||||||||||||||||||||||||||||||||
management fee
|
46,022
|
47,880
|
49,239
|
55,173
|
198,314
|
42,725
|
43,175
|
41,332
|
36,220
|
163,452
|
||||||||||||||||||||||||||||||
Deduct: management fee expense
|
1,080
|
1,133
|
1,163
|
3,142
|
6,518
|
4,135
|
4,194
|
4,056
|
3,118
|
15,503
|
||||||||||||||||||||||||||||||
Operating income
|
$
|
44,942
|
$
|
46,747
|
$
|
48,076
|
$
|
52,031
|
$
|
191,796
|
$
|
38,590
|
$
|
38,981
|
$
|
37,276
|
$
|
33,102
|
$
|
147,949
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Operating margin before
|
||||||||||||||||||||||||||||||||||||||||
management fee
|
56.5
|
%
|
57.0
|
%
|
56.1
|
%
|
55.2
|
%
|
56.2
|
%
|
42.8
|
%
|
43.7
|
%
|
44.8
|
%
|
40.1
|
%
|
42.9
|
%
|
||||||||||||||||||||
Operating margin after
|
||||||||||||||||||||||||||||||||||||||||
management fee
|
55.2
|
%
|
55.7
|
%
|
54.8
|
%
|
52.1
|
%
|
54.3
|
%
|
38.7
|
%
|
39.5
|
%
|
40.4
|
%
|
36.7
|
%
|
38.8
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Table VI
|
||||||||
GAMCO INVESTORS, INC.
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
||||||||
(Dollars in thousands, except per share data)
|
||||||||
|
||||||||
|
December 31,
|
December 31,
|
||||||
|
2016
|
2015
|
||||||
|
||||||||
ASSETS
|
||||||||
|
||||||||
Cash and cash equivalents
|
$
|
39,812
|
$
|
13,719
|
||||
Investments
|
37,285
|
32,979
|
||||||
Receivable from brokers
|
453
|
1,091
|
||||||
Other receivables
|
50,756
|
37,252
|
||||||
Income tax receivable
|
9,349
|
6,787
|
||||||
Other assets
|
11,574
|
12,071
|
||||||
|
||||||||
Total assets
|
$
|
149,229
|
$
|
103,899
|
||||
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
|
||||||||
Payable to brokers
|
$
|
66
|
$
|
12
|
||||
Income taxes payable and deferred tax liabilities
|
3,815
|
4,823
|
||||||
Compensation payable
|
42,384
|
24,426
|
||||||
Securities sold short, not yet purchased
|
-
|
129
|
||||||
Accrued expenses and other liabilities
|
35,656
|
41,739
|
||||||
Sub-total
|
81,921
|
71,129
|
||||||
|
||||||||
5.875% Senior notes (due June 1, 2021)
|
24,120
|
24,097
|
||||||
4.5% Convertible note (due August 15, 2021)
|
109,835
|
-
|
||||||
4% PIK note (due November 30, 2020)
|
100,000
|
250,000
|
||||||
Loan from GGCP (due December 28, 2016)
|
-
|
35,000
|
||||||
Total debt
|
233,955
|
309,097
|
||||||
Total liabilities
|
315,876
|
380,226
|
||||||
|
||||||||
GAMCO Investors, Inc.'s stockholders' deficit
|
(166,647
|
)
|
(276,327
|
)
|
||||
Total deficit
|
(166,647
|
)
|
(276,327
|
)
|
||||
|
||||||||
Total liabilities and equity
|
$
|
149,229
|
$
|
103,899
|
||||
|