-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ou3Wn33kE0brhQvjhSVR9IKIXpquxcoRIUtqU1wgiC7+cIlGp15a663tOAcbCk3E C8JlwhPGKVSRB05mdrLQng== 0001072613-04-000140.txt : 20040129 0001072613-04-000140.hdr.sgml : 20040129 20040129165814 ACCESSION NUMBER: 0001072613-04-000140 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040129 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GABELLI ASSET MANAGEMENT INC CENTRAL INDEX KEY: 0001060349 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 134007862 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14761 FILM NUMBER: 04553082 BUSINESS ADDRESS: STREET 1: ONE CORPORATE CENTER CITY: RYE STATE: NY ZIP: 10580 BUSINESS PHONE: 9149213700 MAIL ADDRESS: STREET 1: ONE CORPORATE CENTER CITY: RYE STATE: NY ZIP: 10580 FORMER COMPANY: FORMER CONFORMED NAME: ALPHA G INC DATE OF NAME CHANGE: 19980423 8-K 1 form8-k_12447.txt GABELLI ASSET MANAGEMENT INC. FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) JANUARY 29, 2004 GABELLI ASSET MANAGEMENT INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) NEW YORK 1-14761 13-4007862 (STATE OR OTHER (COMMISSION (IRS EMPLOYER JURISDICTION OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.) ONE CORPORATE CENTER, RYE, NY 10580 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (914) 921-3700 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. Exhibit Number Description -------------- ----------- 99.1 Press Release dated January 29, 2004 ITEM 9. REGULATION FD DISCLOSURE On January 29, 2004, Gabelli Asset Management Inc. reported its fourth quarter and full year 2003 results. A copy of the Company's press release, attached hereto as Exhibit 99.1 and incorporated herein by reference, is being furnished under this Item 9 in accordance with the provisions of Regulation FD (17 CFR section 243.100 ET SEQ .). ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On January 29, 2004, Gabelli Asset Management Inc. reported its fourth quarter and full year 2003 results. A copy of the Company's press release, attached hereto as Exhibit 99.1 and incorporated herein by reference, is being furnished under this Item 12. SIGNATURE - ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Gabelli Asset Management Inc. By: /s/ Michael R. Anastasio Jr. ---------------------------------------- Michael R. Anastasio Jr. Chief Accounting Officer Date: January 29, 2004 ------------------ EX-99.1 3 exh99-1_12447.txt PRESS RELEASE DATED JANUARY 29, 2004 EXHIBIT 99.1 ------------ One Corporate Center Rye, NY 10580-1422 Tel. (914) 921-5146 Fax (914) 921-5392 [LOGO] Gabelli Asset Management Inc. WWW.GABELLI.COM For Immediate Release: Contact: Michael R. Anastasio Chief Accounting Officer (914) 921-5147 For further information please visit www.gabelli.com --------------- GABELLI REPORTS LOWER REVENUE AND EARNINGS FOR 2003 - FOURTH QUARTER RECORDS POSTED - ASSETS UNDER MANAGEMENT GAIN 29.7% TO A RECORD $27.6 BILLION Rye, New York, January 29, 2004 - Gabelli Asset Management Inc. (NYSE: GBL) today reported revenues of $61.6 million for the fourth quarter ended December 31, 2003 up 30.5% from the $47.2 million generated in the fourth quarter of 2002. Net income for the quarter was a record at $16.7 million or $0.54 per diluted share versus $12.5 million or $0.41 per diluted share in the prior year's quarter. For the full year ended December 31, 2003 revenues were $207.4 million, a decline of 1.2% from prior year revenues of $210 million. Operating income before management fee was $83.7 million, down 15.6% from $99.2 million in the full year of 2002. Contributing to the decline in operating income were stock option expense, higher compensation costs related to research, sales and investment professionals, acquisition expenses, expenses related to the offering of new products and a rise in other operating costs, partly related to Sarbanes-Oxley. The costs related to this last item include accounting, legal and insurance. Management remains diligent in meeting all new regulatory requirements, and in a cost efficient way. Net income for 2003 was $49.8 million or $1.65 per diluted share versus $53.3 million or $1.76 per diluted share for 2002. FINANCIAL RESULTS Assets under management rose to a record $27.6 billion on December 31, 2003, up 18.8% from the September 30, 2003 level of $23.2 billion and 29.7% from the $21.2 billion on December 31, 2002. During the quarter, we raised $1.46 billion with the initial public offering of the Gabelli Dividend & Income Trust (NYSE: GDV). Average total assets under management were $25.5 billion in the year-end quarter, up 13.9% from average total assets of $22.4 billion in the last quarter of 2002. Our GAMCO (Gabelli Asset Management Company) institutional and high net worth separate accounts business had final quarter net cash inflows of $166 million. Assets under management in our separately managed equity accounts on December 31, 2003 were $13.0 billion, 30.4% ahead of the $10.0 billion on December 31, 2002, and 15.3% higher than the $11.3 billion on September 30, 2003. Our mutual fund net cash inflows, mostly traceable to our new closed-end fund, were $1.4 billion in the fourth quarter of 2003. As a result, mutual fund assets were $13.3 billion at year-end, up 32.4% from $10.1 billion at the end of 2002. Commission revenues for our institutional research boutique, Gabelli & Company Inc., increased $1.3 million or 41.5% during the fourth quarter of 2003 versus the 2002 quarter. For 2003, variable expenses increased to 43.9% from 41.5% traceable mostly to a shift in revenue mix, and the accounting for costs related to the acquisition of Woodland and Grove in 2002's fourth quarter. Expenses not directly tied to revenues increased $3.2 million over the prior year's quarter with the majority of this increase attributable to the addition of research analysts and marketing professionals, stock option expense ($435,000 vs. $72,000 for the quarter and $1,554,000 vs. $254,000 for the full year), the effect of incentive compensation versus the final quarter of 2002 which benefited from year-end adjustment in bonus accruals and other operating expenses, including insurance, legal and accounting costs. For 2003, these expenses rose $8.9 million as higher costs primarily related to the addition of research analysts, marketing and investment professionals, higher bonuses and other operating expenses including Sarbanes Oxley related costs. Management fee expense, a totally variable cost based on pre-tax profits, declined 5.6% to $9.0 million for the full year of 2003, but was up to $3 million in the fourth quarter. Investment income increased $5.3 million to $8.9 million during the fourth quarter of 2003 and $13.0 million to $21.1 million for the full year 2003 versus their comparable 2002 periods. Results in the fourth quarter of 2003 included $1.8 million from the partial harvesting of a $100,000 venture capital investment made in 2001 through our 92% owned subsidiary, Gabelli Securities, Inc. Interest expense rose to $4.0 million during the last quarter of 2003 compared to $3.0 million in the prior year's quarter. For 2003, interest expense was up 23.9% to $14.8 million due mostly to the May 2003 issuance of $100 million of 5.5% senior notes. This increase was offset in part by a one-percentage point decrease in the interest rate on our $100 million convertible note from 6% to 5% in mid-August. The effective tax rate for 2003 was 37.4% versus 37.6% in 2002 traceable to the effect of a dividend received deduction related to a $518,000 dividend in the third quarter from our Westwood Holdings Group, Inc. investment. The increase in minority interest expense for both the three and twelve months ended December 31, 2003 versus the prior year periods is largely the result of increased earnings from our alternative investment products and income from our investments at our 92% owned subsidiary, Gabelli Securities, Inc. Implementation of FASB Interpretation No. 46 has been deferred to the end of the first quarter of 2004. INVESTMENT AND BUSINESS ITEMS o The Gabelli Dividend & Income Trust (NYSE: GDV), our new closed-end fund investing primarily in dividend-paying equity securities, completed its initial public offering in November issuing 73 million shares at an initial price of $20 per share, generating gross proceeds of $1.46 billion. The Fund's shares commenced trading on the New York Stock Exchange on November 25th. During January, the Fund issued an additional 9.7 million shares in conjunction with the exercise of the underwriters' over allotment option and received additional gross proceeds of $194 million. o Assets of each of our three advisory business segments, GAMCO, Gabelli Funds, and Alternative Investments are at record levels. o GAMCO separate account AUM levels eclipsed the prior quarter-end values by over $1.8 billion. The major factor contributing to this accelerating asset growth was solid performance from all equity portfolios. GAMCO VALUE 1977-2003 GAMCO S&P 500 RUSSELL 2000 CPI+10 Number of Up Years 23 21 19* Number of Down Years 3 5 7 Years GAMCO Beat Index 18 18* 17 Total Return (CARR)(a) 18.4% 13.4% * 14.3% Beta 0.77 * Calculation of Russell 2000 commenced 1/1/79 (a) Annual periods ending December 31, 2003 Doug Jamieson, COO of GAMCO, indicated that GAMCO's historical performance coupled with renewed interest from investors seeking to rebalance their portfolios and reallocate from fixed income to tax-sensitive, separately managed equity accounts will continue to provide a fertile opportunity in 2004. We note again that GAMCO revenues are based largely on quarterly billings which lag changes in the market. o Our ABC Fund, one of a handful of equity funds in the U.S to enjoy absolute returns for each year since inception (1993), is about to reopen. This fund has reduced its advisory fee to fifty basis points and has waived the 12b-1 fee. It will reopen with the same reduced fee until it becomes more fully invested. Subject to approval by the directors of this fund, the 12b-1 will be eliminated. o Our Alternative Investment business completed the year with significant additional global distribution platforms and new products. - We further extended our long-term relationship with Global Asset Management (a subsidiary of Zurich-based UBS AG) with products for both U.S. and non-U.S. investors seeking exposure to our distinctive event-driven value style in a U. S. Long/Short portfolio context. - The performance of our merger arbitrage partnerships benefited from increased deal activity both in the U.S. and internationally. o Gabelli & Company, Inc. hosted its 27th Annual Automotive Aftermarket Symposium in November in Las Vegas, where portfolio managers and securities analysts met with senior management from automotive parts suppliers, retailers, and manufacturers. AutoNation, AutoZone, Dana and Navistar were among the 23 leading companies making presentations which provided insights on their industries, competition, regulatory issues and the challenges and opportunities for their individual businesses. o Gabelli & Company Inc. was a leader in the underwriting group that led the initial public offering of the Gabelli Dividend & Income Trust. o Our corporate investment portfolio, consisting of both proprietary and strategic external investments, contributed to our overall results for the year, more than offsetting increased interest expense. o Our internal review regarding regulatory matters is ongoing and once all the pertinent facts are in, we will provide an update to our press release (update#2) issued on November 19, 2003. SHAREHOLDER INITIATIVES We paid our first dividend of $0.02 per share on December 15, 2003 to our Class A shareholders of record on December 1, 2003. The holders of Gabelli's Class B Common Stock agreed to waive receipt of this dividend or $460,000. During the fourth quarter of 2003, we bought back 49,400 shares at an average cost of $35.18 per share. We initiated a stock buyback program in March of 1999. Since that time, 1,177,349 Class A shares have been repurchased through December 2003 at an average cost of $25.65 per share, including 56,922 shares in 2003. At year-end 2003, $12.1 million remained available for future share purchases. FINANCIAL STRENGTH AND FLEXIBILITY Our balance sheet strengthened again during the quarter. Overall, we ended the year with roughly $610 million in cash and marketable securities. In addition, we increased our ownership of Westwood Holdings (WHG-NYSE) to nearly 12% representing an investment of $11.6 million and invested $45 million in GDV. Our debt consists of a $100 million ten-year convertible note, $100 million of 5.5% senior notes, and $84 million of mandatory convertible securities which will be exchanged in February 2005 for approximately two million Class A common shares. Expressed another way, and allowing for exchange of our mandatory convertible securities at the maximum amount for 2.1 million shares, we had $14.80 cash per share net of all debt. Stockholders' equity, on a GAAP basis, was $378 million on December 31, 2003 compared with $322 million on December 31, 2002. We repurchased 20,600 shares of our mandatory convertible securities during 2003, bringing the total shares repurchased since May 2002 to 238,800 at a total cost of $5.2 million. An additional 461,200 shares remain to be repurchased under this program. OUTLOOK We positioned GBL last year to renewed growth by adding to our research and sales staff in the U.S. and abroad. We were prepared for the market's recovery. We now will add staff to assist in the execution of our business plan. Mario Gabelli's view on the overall equity market for 2004 may be gleaned from recently published comments in Barron's Year End Roundtable. (www.gabelli.com) --------------- As for our own investment portfolio, an increase in merger activity will provide a good tail wind to results through our investment in our own products. NOTES ON NON-GAAP FINANCIAL MEASURES A. Cash and investments as adjusted have been computed as follows: (in millions) 12/31/02 12/31/03 -------- -------- Cash and cash equivalents $ 311.4 $ 386.5 Investments (marketable securities) 217.5 228.0 -------- -------- Total cash and investments (marketable securities) 528.9 614.5 Amounts payable to brokers (17.2) (5.7) -------- -------- Adjusted cash and investments (marketable securities) $ 511.7 $ 608.8 Investments (available for sale) 5.9 67.4 -------- -------- Total adjusted cash and investments $ 517.6 $ 676.2 ======== ======== We believe cash and investments as adjusted is a more useful measure of the company's liquidity for analytical purposes. Amounts payable to broker reflects cash payable for securities purchased and recorded on a trade date basis for which settlement occurs subsequent to year end. B. Operating income before management fee expense is used by management for purposes of evaluating its business operations. We believe this measure is useful in illustrating the operating results of the Company as management fee expense is based on pre-tax income and 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 to operating income is provided in Table IV. SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION Our disclosure and analysis in this press release contain some forward-looking statements. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, there can be no assurance that our actual results will not differ materially from what we expect or believe. Some of the factors that could cause our actual results to differ from our expectations or beliefs include, without limitation: the adverse effect from a decline in the securities markets; a decline in the performance of our products; a general downturn in the economy; changes in government policy or regulation; changes in our ability to attract or retain key employees; and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. We also direct your attention to any more specific discussions of risk contained in our Form 10-K and other public filings. We are providing these statements as permitted by the Private Litigation Reform Act of 1995. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations or if we receive any additional information relating to the subject matters of our forward-looking statements. Assets Under Management The company reported assets under management as follows: TABLE I:
Assets Under Management (in millions) ------------------------------------- December 31 ------------------------ % 2002 2003 Inc. (Dec.) -------- -------- ----------- Mutual Funds: Open End $ 6,482 $ 8,088 24.8% Closed End 1,609 3,530 119.4 Fixed Income 1,977 1,714 (13.3) -------- -------- Total Mutual Funds 10,068 13,332 32.4 -------- -------- Institutional & High Net Worth Separate Accounts: Equities 9,990 13,031 30.4 Fixed Income 613 504 (17.8) -------- -------- Total Institutional & High Net Worth Separate Accounts 10,603 13,535 27.7 -------- -------- Alternative Investments 578 692 19.7 -------- -------- Total Assets Under Management $ 21,249 $ 27,559 29.7 ======== ========
TABLE II:
Fund Flows - 4th Quarter 2003 (in millions) --------------------------------------------------------- Market September 30, Net Appreciation / December 31, 2003 Cash Flows (Depreciation) 2003 -------- -------- -------- -------- Mutual Funds: Equities $ 9,041 $ 1,464 $ 1,113 $ 11,618 Fixed Income 1,783 (72) 3 1,714 -------- -------- -------- -------- Total Mutual Funds 10,824 1,392 1,116 13,332 -------- -------- -------- -------- Institutional & HNW Separate Accounts Equities 11,304 166 1,561 13,031 Fixed Income 391 112 1 504 -------- -------- -------- -------- Total Institutional & HNW Separate Accounts 11,695 278 1,562 13,535 -------- -------- -------- -------- Alternative Investments 687 (20) 25 692 -------- -------- -------- -------- Total Assets Under Management $ 23,206 $ 1,650 $ 2,703 $ 27,559 ======== ======== ======== ========
TABLE III:
Assets Under Management (in millions) -------------------------------------------------------- % Increase/(decrease) 12/02 3/03 6/03 9/03 12/03 9/03 12/02 -------- -------- -------- -------- -------- -------- -------- Mutual Funds Open end $ 6,482 $ 6,213 $ 7,118 $ 7,280 $ 8,088 11.1% 24.8% Closed end 1,609 1,545 1,646 1,761 3,530 100.5 119.4 Fixed income 1,977 1,916 1,880 1,783 1,714 (3.9) (13.3) -------- -------- -------- -------- -------- Total Mutual Funds 10,068 9,674 10,644 10,824 13,332 23.2 32.4 -------- -------- -------- -------- -------- Institutional & HNW Separate Accounts: Equities 9,990 9,247 10,820 11,304 13,031 15.3 30.4 Fixed Income 613 547 404 391 504 28.9 (17.8) -------- -------- -------- -------- -------- Total Institutional & HNW Separate Accounts 10,603 9,794 11,224 11,695 13,535 15.7 27.7 -------- -------- -------- -------- -------- Alternative Investments 578 585 625 687 692 0.7 19.7 -------- -------- -------- -------- -------- Total Assets Under Management $ 21,249 $ 20,053 $ 22,493 $ 23,206 $ 27,559 18.8 29.7 ======== ======== ======== ======== ========
TABLE IV GABELLI ASSET MANAGEMENT INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THREE MONTHS ENDED FOR THE TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ------------------------ ------------------------ % INC. % INC. 2002 2003 (DEC.) 2002 2003 (DEC.) ---------- ---------- ---------- ---------- ---------- ---------- Revenues .......................................... $ 47,205 $ 61,605 30.5% $ 209,959 $ 207,437 (1.2%) Expenses .......................................... 25,271 35,996 42.4 110,764 123,721 11.7 ---------- ---------- ---------- ---------- Operating income before management fee ............ 21,934 25,609 16.8 99,195 83,716 (15.6) Investment income ................................. 3,543 8,863 150.2 8,110 21,140 160.7 Interest expense .................................. (3,006) (4,048) 34.7 (11,977) (14,838) 23.9 ---------- ---------- ---------- ---------- Other income (expense), net ....................... 537 4,815 796.6 (3,867) 6,302 263.0 ---------- ---------- ---------- ---------- Income before management fee, income taxes and minority interest .............................. 22,471 30,424 35.4 95,328 90,018 (5.6) Management fee ................................. 2,247 3,043 9,533 9,002 ---------- ---------- ---------- ---------- Income before income taxes and minority interest .. 20,224 27,381 85,795 81,016 Income taxes ................................... 7,604 10,295 32,259 30,339 Minority interest .............................. 131 428 224 833 ---------- ---------- ---------- ---------- Net income ........................................ $ 12,489 $ 16,658 33.4 $ 53,312 $ 49,844 (6.5) ========== ========== ========== ========== Net income per share: Basic ............................................. $ 0.42 $ 0.55 31.0 $ 1.77 $ 1.66 (6.2) ========== ========== ========== ========== Diluted ........................................... $ 0.41 $ 0.54 31.7 $ 1.76 $ 1.65 (6.3) ========== ========== ========== ========== Weighted average shares outstanding: Basic ............................................ 30,062 30,065 0.0 30,092 30,018 (0.2) ========== ========== ========== ========== Diluted .......................................... 30,204 32,155 6.5 30,302 32,081 5.9 ========== ========== ========== ========== Reconciliation of Non-GAAP Financial Measures to GAAP: Operating income before management fee ............ $ 21,934 $ 25,609 16.8 $ 99,195 $ 83,716 (15.6) Deduct: management fee ........................... 2,247 3,043 9,533 9,002 ---------- ---------- ---------- ---------- Operating income .................................. $ 19,687 $ 22,566 14.6 $ 89,662 $ 74,714 (16.7) ---------- ---------- ---------- ---------- Operating margin before management fee ............ 46.5% 41.6% 47.2% 40.4% Operating margin after management fee ............. 41.7% 36.6% 42.7% 36.0% ---------- ---------- ---------- ----------
TABLE V GABELLI ASSET MANAGEMENT INC. UNAUDITED QUARTERLY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
2002 ----------------------------------------------------------------------------- 1ST 2ND 3RD 4TH QUARTER QUARTER QUARTER QUARTER TOTAL ---------- ---------- ---------- ---------- ---------- Income Statement Data: Revenues $ 58,032 $ 57,402 $ 47,320 $ 47,205 $ 209,959 Expenses 29,915 30,533 25,045 25,271 110,764 ---------- ---------- ---------- ---------- ---------- Operating income before management fee 28,117 26,869 22,275 21,934 99,195 Investment income 2,093 1,144 1,330 3,543 8,110 Interest expense (2,728) (3,186) (3,057) (3,006) (11,977) ---------- ---------- ---------- ---------- ---------- Other income (expense), net (635) (2,042) (1,727) 537 (3,867) ---------- ---------- ---------- ---------- ---------- Income before management fee, income taxes and minority interest 27,482 24,827 20,548 22,471 95,328 Management fee 2,748 2,483 2,055 2,247 9,533 ---------- ---------- ---------- ---------- ---------- Income before income taxes and minority interest 24,734 22,344 18,493 20,224 85,795 Income taxes 9,300 8,401 6,954 7,604 32,259 Minority interest 45 2 46 131 224 ---------- ---------- ---------- ---------- ---------- Net income $ 15,389 $ 13,941 $ 11,493 $ 12,489 $ 53,312 ========== ========== ========== ========== ========== Net income per share: Basic $ 0.51 $ 0.46 $ 0.38 $ 0.42 $ 1.77 ========== ========== ========== ========== ========== Diluted $ 0.51 $ 0.46 $ 0.38 $ 0.41 $ 1.76 ========== ========== ========== ========== ========== Weighted average shares outstanding: Basic 29,941 30,222 30,141 30,062 30,092 ========== ========== ========== ========== ========== Diluted 32,164 32,327 30,296 30,204 30,302 ========== ========== ========== ========== ========== Reconciliation of Non-GAAP Financial Measures to GAAP: Operating income before management fee $ 28,117 $ 26,869 $ 22,275 $ 21,934 $ 99,195 Deduct: management fee 2,748 2,483 2,055 2,247 9,533 ---------- ---------- ---------- ---------- ---------- Operating income $ 25,369 $ 24,386 $ 20,220 $ 19,687 $ 89,662 ---------- ---------- ---------- ---------- ---------- Operating margin before management fee 48.5% 46.8% 47.1% 46.5% 47.2% Operating margin after management fee 43.7% 42.5% 42.7% 41.7% 42.7% ---------- ---------- ---------- ---------- ----------
TABLE V (Continued) GABELLI ASSET MANAGEMENT INC. UNAUDITED QUARTERLY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
2003 ----------------------------------------------------------------------------- 1ST 2ND 3RD 4TH QUARTER QUARTER QUARTER QUARTER TOTAL ---------- ---------- ---------- ---------- ---------- Income Statement Data: Revenues $ 46,053 $ 47,956 $ 51,823 $ 61,605 $ 207,437 Expenses 28,044 29,454 30,227 35,996 123,721 ---------- ---------- ---------- ---------- ---------- Operating income before management fee 18,009 18,502 21,596 25,609 83,716 Investment income 1,690 6,079 4,508 8,863 21,140 Interest expense (3,011) (3,605) (4,174) (4,048) (14,838) ---------- ---------- ---------- ---------- ---------- Other income (expense), net (1,321) 2,474 334 4,815 6,302 ---------- ---------- ---------- ---------- ---------- Income before management fee, income taxes and minority interest 16,688 20,976 21,930 30,424 90,018 Management fee 1,669 2,097 2,193 3,043 9,002 ---------- ---------- ---------- ---------- ---------- Income before income taxes and minority interest 15,019 18,879 19,737 27,381 81,016 Income taxes 5,647 7,099 7,298 10,295 30,339 Minority interest 45 223 137 428 833 ---------- ---------- ---------- ---------- ---------- Net income $ 9,327 $ 11,557 $ 12,302 $ 16,658 $ 49,844 ========== ========== ========== ========== ========== Net income per share: Basic $ 0.31 $ 0.38 $ 0.41 $ 0.55 $ 1.66 ========== ========== ========== ========== ========== Diluted $ 0.31 $ 0.38 $ 0.41 $ 0.54 $ 1.65 ========== ========== ========== ========== ========== Weighted average shares outstanding: Basic 29,918 30,025 30,061 30,065 30,018 ========== ========== ========== ========== ========== Diluted 30,031 30,139 32,170 32,155 32,081 ========== ========== ========== ========== ========== Reconciliation of Non-GAAP Financial Measures to GAAP: Operating income before management fee $ 18,009 $ 18,502 $ 21,596 $ 25,609 $ 83,716 Deduct: management fee 1,669 2,097 2,193 3,043 9,002 ---------- ---------- ---------- ---------- ---------- Operating income $ 16,340 $ 16,405 $ 19,403 $ 22,566 $ 74,714 ---------- ---------- ---------- ---------- ---------- Operating margin before management fee 39.1% 38.6% 41.7% 41.6% 40.4% Operating margin after management fee 35.5% 34.2% 37.4% 36.6% 36.0% ---------- ---------- ---------- ---------- ----------
TABLE VI GABELLI ASSET MANAGEMENT INC. CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION (IN THOUSANDS)
December 31, December 31, 2002 2003 ------------ ------------ ASSETS (unaudited) Cash and cash equivalents ...................... $ 311,430 $ 386,511 Investments .................................... 223,398 295,411 Receivables .................................... 32,238 39,667 Other assets ................................... 15,665 14,922 ------------ ------------ Total assets .............................. $ 582,731 $ 736,511 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Compensation payable ........................... $ 18,459 $ 25,552 Income taxes payable ........................... 9,196 12,323 Accrued expenses and other liabilities ......... 41,176 27,900 ------------ ------------ Total operating liabilities ............... 68,831 65,775 5.5% Senior notes .............................. -- 100,000 5% Convertible note ............................ 100,000 100,000 Mandatory convertible securities ............... 84,545 84,030 ------------ ------------ Total liabilities ......................... 253,376 349,805 Minority interest .............................. 7,562 8,395 Stockholders' equity ........................... 321,793 378,311 ------------ ------------ Total liabilities and stockholders' equity ..... $ 582,731 $ 736,511 ============ ============
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