Delaware
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1-14761
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13-4007862
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(State or Other Jurisdiction
of Incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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191 Mason Street, Greenwich, CT
One Corporate Center, Rye, NY
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06830
10580
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Class A Common Stock, .001 par value
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GBL
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New York Stock Exchange
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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Exhibit
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Number
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Description
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GAMCO's Press Release, dated May 8, 2020
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For Immediate Release:
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Contact:
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Howard Green
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SVP of Corporate Development
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(914) 921-7729
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For further information please visit
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www.gabelli.com
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-
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First quarter net income was $11.2 million vs. $19.9 million a year ago
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-
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Fully diluted first quarter earnings were $0.42 per share versus $0.70 per share a year ago
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-
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March 31, 2020 AUM was $27.5 billion
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Financial Highlights (Unaudited)
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||||||||
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Three Months Ended
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|||||||
(In thousands, except per share data)
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March 31, 2020
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March 31, 2019
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||||||
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||||||||
U.S. GAAP Basis
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||||||||
Revenues
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$
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69,567
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$
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74,336
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||||
Operating income
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25,320
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28,613
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||||||
Net income
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11,245
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19,892
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||||||
Diluted earnings per common share (a)
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$
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0.42
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$
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0.70
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||||
Weighted average diluted shares outstanding
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26,770
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28,539
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||||||
Shares outstanding
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27,705
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28,853
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||||||
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||||||||
Assets Under Management
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||||||||
AUM - average (in millions)
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$
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33,589
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$
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36,837
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||||
AUM - end of period (in millions)
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27,505
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37,273
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||||||
(a) CEO waiver of compensation bolstered earnings by $0.36 per share in the
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||||||||
March 31, 2019 quarter.
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-
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Total revenues for the first quarter of 2020 were $69.6 million compared with $74.3 million in the first quarter of 2019.
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-
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Investment advisory fees were $62.3 million in the first quarter of 2020 versus $65.9 million in the first quarter of 2019:
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-
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Gabelli Funds’ revenues were $40.7 million compared to $43.6 million in the first quarter of 2019.
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-
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Institutional and Private Wealth Management revenues, which are generally billed on portfolio values at the beginning of the quarter, were $20.0 million compared to $20.8 million in the year
ago quarter.
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-
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SICAV revenues were $1.6 million versus $1.5 million in last year’s first quarter.
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-
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Distribution fees from our equity mutual funds and other income were $7.3 million for the quarter versus $8.4 million in 2019.
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-
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As a result of the COVID-19 pandemic, the majority of our teammates are working remotely. However, there has been no material impact of remote work arrangements on our operations, including
our financial reporting systems, internal control over financial reporting, and disclosure controls and procedures, and there has been no material challenge in implementing our business continuity plan.
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-
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We distributed $4.5 million under our SDCC Program during 2020, bringing the total distributed through that program to $31.3 million since its inception.
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-
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Our 30th Annual Pump, Valve & Water Systems Symposium took place on February 27 in New York City. The meeting featured presentations by senior management of several leading
industrial companies with an emphasis on industrial and municipal water use and the role of technology.
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-
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Our 11th Annual Specialty Chemicals Conference was held on March 12. The virtual meeting featured presentations by several leading specialty chemical companies, with an emphasis
on industry dynamics, new technologies, and company fundamentals.
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-
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On April 2nd, we hosted our 6th Annual Waste & Environmental Services Symposium via webcast. The timely conference featured presentations by leading companies.
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Table I: Assets Under Management and Fund Flows - 1st Quarter 2020 (in millions)
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||||||||||||||||||||
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Fund
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|||||||||||||||||||
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Market
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distributions,
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||||||||||||||||||
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December 31,
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appreciation/
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Net cash
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net of
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March 31,
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|||||||||||||||
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2019
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(depreciation)
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flows
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reinvestments
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2020
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|||||||||||||||
Equities:
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||||||||||||||||||||
Mutual Funds
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$
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10,481
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$
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(2,144
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)
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$
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(531
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)
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$
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(8
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)
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$
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7,798
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|||||||
Closed-end Funds
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8,005
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(1,723
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)
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(64
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)
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(134
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)
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6,084
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||||||||||||
Institutional & PWM (a)
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14,565
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(3,961
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)
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(419
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)
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-
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10,185
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|||||||||||||
SICAV
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594
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(57
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)
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(57
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)
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-
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480
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|||||||||||||
Total Equities
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33,645
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(7,885
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)
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(1,071)
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(142
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)
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24,547
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|||||||||||||
Fixed Income:
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||||||||||||||||||||
100% U.S. Treasury Fund
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2,810
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10
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118
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-
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2,938
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|||||||||||||||
Institutional & PWM
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20
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-
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-
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-
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20
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|||||||||||||||
Total Fixed Income
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2,830
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10
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118
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-
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2,958
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|||||||||||||||
Total Assets Under Management
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$
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36,475
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$
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(7,875
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)
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$
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(953
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)
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$
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(142
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)
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$
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27,505
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|||||||
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||||||||||||||||||||
(a) Includes $215 and $263 of 100% U.S. Treasury Fund AUM at December 31, 2019 and March 31, 2020, respectively.
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||||||||||||||||||||
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Table II
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||||||||
GAMCO INVESTORS, INC.
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||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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||||||||
(In thousands, except per share data)
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||||||||
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||||||||
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Three Months Ended
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|||||||
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March 31,
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|||||||
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2020
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2019
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||||||
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||||||||
Investment advisory and incentive fees
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$
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62,273
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$
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65,888
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||||
Distribution fees and other income
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7,294
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8,448
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||||||
Total revenues
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69,567
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74,336
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||||||
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||||||||
Compensation costs (a) (b)
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29,250
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30,347
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||||||
Management fee expense (a)
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1,665
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1,449
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||||||
Distribution costs
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7,630
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8,670
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||||||
Other operating expenses
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5,702
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5,257
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||||||
Total expenses
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44,247
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45,723
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||||||
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||||||||
Operating income
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25,320
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28,613
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||||||
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||||||||
Investment loss
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(9,693
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)
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(1,171
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)
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Interest expense
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(647
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)
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(655
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)
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Non-operating loss
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(10,340
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)
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(1,826
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)
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||||||||
Income before income taxes
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14,980
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26,787
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||||||
Provision for income taxes
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3,735
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6,895
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||||||
Net income
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$
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11,245
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$
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19,892
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||||||||
Net income:
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||||||||
Basic
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$
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0.42
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$
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0.70
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Diluted
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$
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0.42
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$
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0.70
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||||||||
Weighted average shares outstanding:
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||||||||
Basic
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26,687
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28,507
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||||||
Diluted
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26,770
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28,539
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||||||
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||||||||
Actual shares outstanding (c)
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27,705
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28,853
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||||||
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||||||||
(a) For the quarter ended March 31, 2019, the CEO waiver reduced compensation costs and management
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||||||||
fee expense by $12,178 and $1,689, respectively.
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||||||||
(b) For the quarter ended March 31, 2020, compensation costs were reduced by $1,409 due to indexing
|
||||||||
of deferred compensation to the GBL stock price.
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||||||||
(c) Includes 1,041 and 425 of RSAs, respectively.
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Table III
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||||||||
GAMCO INVESTORS, INC.
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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||||||||
(In thousands, except per share data)
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||||||||
|
||||||||
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March 31,
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December 31,
|
||||||
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2020
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2019
|
||||||
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||||||||
ASSETS
|
||||||||
Cash and cash equivalents
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$
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77,834
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$
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86,136
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||||
Investments in securities
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20,817
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34,273
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||||||
Receivable from brokers
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3,808
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989
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||||||
Other receivables
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24,379
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41,557
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||||||
Deferred tax asset and income tax receivable
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11,043
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16,389
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||||||
Other assets
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9,583
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10,542
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||||||
Total assets
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$
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147,464
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$
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189,886
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||||
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||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Income taxes payable and deferred tax liabilities
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$
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219
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$
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757
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||||
Compensation payable
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21,291
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64,279
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||||||
Accrued expenses and other liabilities
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36,413
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45,942
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||||||
Sub-total
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57,923
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110,978
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||||||
Senior Notes (due June 1, 2021)
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24,197
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24,191
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||||||
Total liabilities
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82,120
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135,169
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||||||
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||||||||
Stockholders' equity
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65,344
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54,717
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||||||
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||||||||
Total liabilities and stockholders' equity
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$
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147,464
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$
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189,886
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Management believes the use of non-GAAP measures provides relevant information to allow investors to view operating trends, perform analytical comparisons and benchmark performance between periods for its core
operating results. Management uses non-GAAP measures in its financial, investing and operational decision-making process, for internal reporting and as part of its forecasting and budgeting processes. GAMCO’s calculation of non-GAAP measures
may not be comparable to other companies due to potential differences between companies in the method of calculation. Non-GAAP measures should not be considered a substitute for related U.S. GAAP measures.
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|
Three Months Ended
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|||||||
(Unaudited) (In thousands, except per share data)
|
March 31, 2020
|
March 31, 2019
|
||||||
|
||||||||
Net income, U.S. GAAP basis
|
$
|
11,245
|
$
|
19,892
|
||||
Impact of DCCAs on expenses and taxes (a):
|
||||||||
Compensation costs
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(1,409
|
)
|
11,167
|
|||||
Management fee expense
|
-
|
1,449
|
||||||
Provision for income taxes
|
349
|
(3,027
|
)
|
|||||
Total impact of DCCAs on expenses and taxes
|
(1,060
|
)
|
9,589
|
|||||
Net income, as adjusted
|
$
|
10,185
|
$
|
29,481
|
||||
|
||||||||
Per fully diluted share:
|
||||||||
Net income, U.S. GAAP basis
|
$
|
0.42
|
$
|
0.70
|
||||
Impact of DCCAs
|
$
|
(0.04
|
)
|
$
|
0.33
|
|||
Net income, as adjusted
|
$
|
0.38
|
$
|
1.03
|
||||
|
||||||||
(a) The non-GAAP adjustments relate to multiple DCCAs.
|