- 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
RYE, N.Y. -- (Business Wire)
GAMCO Investors, Inc. (“GAMCO”) (NYSE:GBL) today reported its 2013
fourth quarter results including revenues of $122.7 million, net income
of $33.3 million and earnings per diluted share of $1.29. On a
comparable basis, revenues were $99.3 million, net income was $17.6
million, and earnings per diluted share were $0.67 in the fourth quarter
of 2012. For the full year 2013 revenues increased 15.5% to $397.6
million versus $344.3 million, net income surged to $116.9 million, or
$4.54 per diluted share, an increase of 54.7% from earnings of $75.5
million or $2.86 for the full year 2012.
Assets under Management (“AUM”) rose to a record $47.0 billion, up 8.1%
from $43.5 billion at September 30, 2013 and up 29.1% from $36.4 billion
at December 31, 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights |
|
|
| Fourth Quarter |
| |
| Full Year |
| |
($'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.
|
Assets Under Management
Total firm AUM increased to a record $47.0 billion at December 31, 2013,
up $3.5 billion from the third quarter and $10.6 billion higher than the
fourth quarter of 2012. Our fourth quarter 2013 net inflows were $271
million, reduced by $189 million of net open- and closed-end fund
distributions. Market appreciation totaled $3.4 billion.
AUM in our open-end funds increased $1.5 billion during the quarter to
$18.8 billion at December 31, 2013. Net inflows into our open-end funds
totaled $351 million, reflecting an annualized organic growth rate of
8.1%, reduced by net distributions of $51 million. Market appreciation
added $1.2 billion. AUM in our open-end equity funds totaled $17.1
billion, 9.6% ahead of the previous quarter end AUM and 36.6% higher
than the year earlier period.
Our closed-end funds had AUM of $6.9 billion on December 31, 2013, 10.4%
higher than the $6.3 billion on December 31, 2012 and 3.3% above the
$6.7 billion on September 30, 2013. For 2013, market appreciation was
$991 million and was partially offset by distributions from all
closed-end funds, net of reinvestments, which reduced AUM by $484
million.
Institutional and private wealth management AUM increased 9.1% from the
September 2013 quarter end to $20.3 billion and was 35.3% higher than
the comparable 2012 year end.
Our investment partnerships’ AUM increased to $811 million on December
31, 2013 from $805 million on September 30, 2013.
Firm wide, net inflows during the full year of 2013 were $1.6 billion,
market appreciation totaled $9.6 billion and net open- and closed-end
fund distributions were $625 million. This compares with net outflows of
$1.0 billion, market appreciation of $4.0 billion and net open- and
closed-end fund distributions of $596 million for the full year of 2012.
Revenues
-
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.
Operating Income – Fourth Quarter
Operating income before management fee was $51.5 million in the fourth
quarter 2013 versus $27.9 million in the fourth quarter 2012. Included
in the 2012 quarter was a $10.1 million non-cash charge resulting from
the acceleration of RSAs. Operating margin before management fee
improved to 42.0% versus 28.1% (or 38.3% excluding the non-cash charge)
in the fourth quarter of 2012. Management believes evaluating operating
income before management fee is an important measure in analyzing the
Company’s operating results. Further information regarding Non-GAAP
measures is included in Notes on Non-GAAP Financial Measures and Table
VII included elsewhere herein.
Operating income, which is net of management fee expense, was $47.2
million in the fourth quarter of 2013 versus $24.7 million in the prior
year period, an increase of $22.5 million. The operating margin was
38.4% in the fourth quarter of 2013 versus 24.9% in the comparable prior
year period. The improvement in operating margin was due to leveraging
of fixed costs partially offset by higher management fee expense.
Excluding the non-cash charge, net of management fee, operating income
and operating margin in the fourth quarter of 2012 were $33.8 million
and 34.1%, respectively. Management fee expense, which is incentive
based and entirely variable, is based on pre-tax income and was impacted
by the significant increase in quarter over quarter investment income.
Other income (expense)
Other income/(expense), net, was $6.2 million, or $0.12 per diluted
share, in the 2013 quarter versus $3.7 million, or $0.07 per diluted
share, in the fourth quarter of 2012. Gains from investments in mutual
funds, alternative products and proprietary accounts were $11.4 million
in the 2013 quarter versus gains of $5.5 million in the fourth quarter
of 2012. Dividend and interest income totaled $2.1 million, up from $1.7
million in the prior year period. Interest expense was $2.1 million in
the 2013 fourth quarter; $1.4 million lower than the prior year quarter
due to the fourth quarter 2012 repurchase of $64.1 million (face value)
of 0% subordinated debentures through a tender offer as well as the
payment of the $99 million 5.5% senior notes which came due May 15,
2013. In addition, the fourth quarter 2013 had a charge of $5.3 million,
or $0.12 per diluted share, for our 2014 Shareholder Designated
Charitable Contribution program.
Income Taxes
The effective tax rate for the quarter ended December 31, 2013 was 37.0%
compared to the 2012 quarter effective tax rate of 38.0%.
Business and Investment Highlights
-
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.
Balance Sheet – $578.7 million of Cash and Investments at Quarter End
We ended the quarter with cash and investments of $578.7 million, debt
of $111.9 million ($113.8 million face value) and equity attributable to
GAMCO shareholders of $457.3 million. We have $400 million available on
our universal shelf registration which allows us the flexibility to
issue any combination of senior and subordinated debt securities,
convertible debt securities and common and preferred equity. Together
with earnings from operations, the shelf provides us with flexibility to
do acquisitions, lift-outs, seed new investment strategies, and
co-invest as well as fund shareholder compensation including share
repurchase, and dividends.
Shareholder Compensation
During the year ended December 31, 2013, we returned $33.5 million of
our earnings to shareholders through dividends and stock repurchases. We
repurchased 229,228 shares at an average price of $64.41 per share
through our stock buyback program, for a total investment of $14.8
million. We returned $18.7 million through cash dividends.
On February 4, 2014, GAMCO’s Board of Directors declared a regular
quarterly dividend of $0.06 per share payable on March 25, 2014 to its
Class A and Class B shareholders of record on March 11, 2014.
NOTES ON NON-GAAP FINANCIAL MEASURES
|
| |
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
|
| | | | | | | |
|
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
The financial results set forth in this press release are preliminary.
Our disclosure and analysis in this press release, which do not present
historical information, contain “forward-looking statements” within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements convey 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, the
economy and other conditions, there can be no assurance that our actual
results will not differ materially from what we expect or believe.
Therefore, you should proceed with caution in relying on any of these
forward-looking statements. They are neither statements of historical
fact nor guarantees or assurances of future performance.
Forward-looking statements involve a number of known and unknown risks,
uncertainties and other important factors, some of which are listed
below, that are difficult to predict and could cause actual results and
outcomes to differ materially from any future results or outcomes
expressed or implied by such forward-looking statements. Some of the
factors that could cause our actual results to differ from our
expectations or beliefs include a decline in the securities markets that
adversely affect our assets under management, negative performance of
our products, the failure to perform as required under our investment
management agreements, a general downturn in the economy that negatively
impacts our operations. We also direct your attention to the more
specific discussions of these and other risks, uncertainties and other
important factors contained in our Form 10-K and other public filings.
Other factors that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of them.
We do not undertake to update publicly any forward-looking statements if
we subsequently learn that we are unlikely to achieve our expectations
whether as a result of new information, future developments or
otherwise, except as may be required by law.
|
|
| |
| |
| |
| |
| |
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 | | | | | | | | | | |
|
|
|
| |
| | | | | | | | | | | |
| | | | | | | | | | | | | | % ∆ |
| | | | 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.
|
Contacts:
GAMCO Investors, Inc.
Robert S. Zuccaro, 914-921-5088
Executive
Vice President
and Chief Financial Officer
or
For further
information please visit
www.gabelli.com
Source: GAMCO Investors, Inc.
© 2024 Canjex Publishing Ltd. All rights reserved.