ANNUAL REPORT PURSUANT TO SECTION 13 OR |
TRANSITION REPORT PURSUANT TO SECTION 13 OR |
Delaware | 13-4007862 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Corporate Center, Rye, NY 10580 | ||
(Address of |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Class A Common Stock, $0.001 par value | GBL | New York Stock Exchange |
Large accelerated filer | Accelerated filer | |
Non-accelerated filer | Smaller reporting company | Emerging growth company ☐ |
GAMCO | |||||
INDEX | |||||
| |||||
Page | |||||
Part I | |||||
Item 1. | Business | 4 | |||
Item 1A. | Risk Factors | 14 | |||
Item 1B. | Unresolved Staff Comments | 22 | |||
Item 2. | Properties | 22 | |||
Item 3. | Legal Proceedings | 22 | |||
Item 4. | Mine Safety Disclosures | 22 | |||
Part II | |||||
Item | Market for | ||||
Purchases of Equity Securities | 23 | ||||
Item | Selected Financial Data | ||||
Item 7. | |||||
Item | Quantitative and Qualitative Disclosures About Market Risk | ||||
Item | Financial Statements and Supplementary Data | ||||
Item | Changes | ||||
Item | Controls and Procedures | ||||
Item 9B. | Other Information | 67 | |||
| |||||
Part III | |||||
Item | Directors, Executive Officers and Corporate Governance | ||||
Item | Executive Compensation | ||||
Item | Security Ownership of Certain Beneficial Owners and Management and Related | ||||
Stockholder Matters | |||||
Item | Certain Relationships and Related Transactions, and Director Independence | ||||
Item | Principal Accountant Fees and Services | ||||
PART IV | |||||
Item 15. | Exhibits and Financial Statement Schedules | ||||
Item 16. | Form 10-K Summary | ||||
72 |
Open and Closed-End Funds: We provide advisory services to |
Institutional and Private Wealth Management: We provide advisory services to a broad range of investors, including corporate retirement plans, foundations, endowments, jointly-trusteed plans and public funds, private wealth clients and also serve as sub-advisor to third party investment funds including registered investment | |
SICAV: We provide advisory services to one |
Gabelli |
Private Market Value (PMV) with a CatalystTM investing is a disciplined, research-driven approach based on intensive security analysis. In this process, |
Raising awareness of complementary investment strategies. With the spread of Coronavirus pandemic in early 2020, investors sought havens in U.S. Government Bonds, Gold as well as opportunities in Growth, Global Growth, and Convertibles. The year over year increase in firm-wide AUM in these strategies accelerated, with AUM totaling $2.8 billion at the end of 2020, up 36% from $2.1 billion at the end of 2019. |
• | Establishing Relationship |
Incentive Fees. As of December 31, |
Expanding |
• | Investment Innovation with launch of actively managed |
Increasing Presence in and Marketing for Private Wealth Management Market.Our private wealth management business focuses, in general, on serving clients who have established an account relationship of $2.5 million or more with us. According to industry estimates, the number of households with over $2.5 million in investable assets will continue to grow, subject to ups and downs in the equity and fixed income markets. With our |
Increasing Marketing for Institutional |
| Attracting and Retaining Experienced Professionals. We offer significant variable compensation that provides opportunities to our staff. The ability to attract and retain highly-experienced investment and other professionals with a long-term commitment to us and our clients has been, and will continue to be, a significant factor in our long-term growth. |
Hosting of Institutional Investor Symposiums.We have a tradition of sponsoring institutional investor symposiums that bring together prominent portfolio managers, members of academia, and other leading business professionals to present, discuss, and debate current issues and topics in the investment industry. These symposiums have included: |
-2020 | "COVID-19: Vaccines, Therapeutics, and Impact on the Healthcare System" |
-2019 | “Healthcare at a Crossroads: What’s the Path Forward?” |
-2019 | “Rule 852(b)(6), the Dynamics and Implications for the Fund Industry” - |
-2017 -2015 | “Digital Evolution in Financial Services” “Capital Allocation – The Tug of War” |
-2013 | “Value Investing 20 Years Later: A Celebration of the Roger Murray Lecture Series” |
-2006 | “Closed-End Funds: Premiums vs. Discounts, Dividends and Distributions” |
-2003 | “Dividends, Taxable versus Non-Taxable Issues” |
-2001 -1998 | “Virtues of Value Investing” “The Role of Hedge Funds as a Way of Generating Absolute Returns” |
-1997 | “Active vs. Passive Stock Selection” |
Hosting of Conferences. Gabelli Funds sponsors a series of industry conferences, which are well known within their respective industries for the intellectual content and for providing insight into investment decisions made on behalf of our clients. |
Conference | Years held | |
Automotive Aftermarket Symposium | 44 | |
Pump, Valve & Water Systems Symposium | 30 | |
Aerospace & Defense Conference | 25 | |
Omaha Research Trip | 14 | |
Entertainment & Broadcasting Conference | 12 | |
Waste & Environmental Services Conference | 6 | |
Healthcare Symposium | 2 |
• | Capitalizing on Acquisitions, Alliances, and Lift-outs.We intend to selectively and opportunistically pursue acquisitions, alliances, and lift-outs that |
• | Solutions For Our Wealth Management Clients With Fixed Income. We look to increase our competitive ability to attract new clients interested in wealth management and fixed income vehicles. The Gabelli U.S. Treasury Money Market Fund, has an investment objective of high current income consistent with the preservation of principal and liquidity. |
● | Strong Industry Fundamentals:According to data compiled by the U.S. Federal Reserve, the investment management industry has grown faster than more traditional segments of the financial services industry, including the banking and insurance industries. Since GBL began managing assets for |
● | Long-Term Performance:We have a superior long-term record of achieving relatively high returns for our Institutional and |
● | Stock Market Gains:Since we began managing for |
● | Widely-Recognized “Gabelli” and “GAMCO” Brand Names:For much of our history, our CEO, portfolio managers, investment style, and investment products have been featured in a variety of |
● | Diversified Product Offerings:Since the inception of our investment management activities, we have sought to expand the breadth of our product offerings. We currently offer a wide spectrum of investment products and strategies, including product offerings in U.S. equities, U.S. fixed income, |
% | % | |||||||||||||||||||||||||||||||||||||||
At December 31, | Change | At December 31, | Change | |||||||||||||||||||||||||||||||||||||
2014 (c) | 2015 | 2016 | 2017 | 2018 | 2018/2017 | 2020 | 2019 | 2018 | _2020/2019 | |||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
Open-end Funds | $ | 17,684 | $ | 13,811 | $ | 13,462 | $ | 13,747 | $ | 10,589 | (23.0 | %) | $ | 9,541 | $ | 10,481 | $ | 10,589 | (9.0 | ) | ||||||||||||||||||||
Closed-end Funds | 6,949 | 6,492 | 7,150 | 8,053 | 6,959 | (13.6 | ) | 7,773 | 8,005 | 6,959 | (2.9 | ) | ||||||||||||||||||||||||||||
Institutional & Private Wealth | ||||||||||||||||||||||||||||||||||||||||
Management | 20,301 | 16,767 | 17,224 | 18,852 | 14,078 | (25.3 | ) | 12,371 | 14,565 | 14,078 | (15.1 | ) | ||||||||||||||||||||||||||||
SICAV | 135 | 178 | 320 | 510 | 507 | (0.6 | ) | 474 | 594 | 507 | (20.2 | ) | ||||||||||||||||||||||||||||
Total Equity | 45,069 | 37,248 | 38,156 | 41,162 | 32,133 | (21.9 | ) | 30,159 | 33,645 | 32,133 | (10.4 | ) | ||||||||||||||||||||||||||||
Fixed Income: | ||||||||||||||||||||||||||||||||||||||||
Money Market Mutual Fund | 1,455 | 1,514 | 1,767 | 1,870 | 2,195 | 17.4 | 2,370 | 2,810 | 2,195 | (15.7 | ) | |||||||||||||||||||||||||||||
Institutional & Private Wealth Management | 58 | 38 | 31 | 31 | 26 | (16.1 | ) | |||||||||||||||||||||||||||||||||
Institutional & Private Wealth | ||||||||||||||||||||||||||||||||||||||||
Management | 32 | 20 | 26 | 60.0 | ||||||||||||||||||||||||||||||||||||
Total Fixed Income | 1,513 | 1,552 | 1,798 | 1,901 | 2,221 | 16.8 | 2,402 | 2,830 | 2,221 | (15.1 | ) | |||||||||||||||||||||||||||||
Total AUM | $ | 46,582 | $ | 38,800 | $ | 39,954 | $ | 43,063 | $ | 34,354 | (20.2 | ) | $ | 32,561 | $ | 36,475 | $ | 34,354 | (10.7 | ) | ||||||||||||||||||||
Breakdown of Total AUM: | ||||||||||||||||||||||||||||||||||||||||
Funds | 26,088 | 21,817 | 22,379 | 23,670 | 19,743 | (16.6 | ) | 19,684 | 21,296 | 19,743 | (7.6 | ) | ||||||||||||||||||||||||||||
Institutional & Private Wealth | ||||||||||||||||||||||||||||||||||||||||
Management | 20,359 | 16,805 | 17,255 | 18,883 | 14,104 | (25.3 | ) | 12,403 | 14,585 | 14,104 | (15.0 | ) | ||||||||||||||||||||||||||||
SICAV | 135 | 178 | 320 | 510 | 507 | (0.6 | )% | 474 | 594 | 507 | (20.2 | ) | ||||||||||||||||||||||||||||
Total AUM | $ | 46,582 | $ | 38,800 | $ | 39,954 | $ | 43,063 | $ | 34,354 | (20.2 | %) | $ | 32,561 | $ | 36,475 | $ | 34,354 | (10.7 | ) |
2020 | 2019 | 2018 | ||||||||||
Open-end Funds | $ | 66 | $ | 93 | $ | 72 | ||||||
Closed-end Funds | 518 | 523 | 522 | |||||||||
Total distributions | $ | 584 | $ | 616 | $ | 594 |
U.S. Equities: | Global and International Equities: |
All Cap Value | International Growth |
Large Cap Value | International Small Cap Growth |
Large Cap Growth | Global Growth |
Mid Cap Value | Global Value |
Small Cap Value | Global Content & Connectivity |
Small Cap Growth | Global Utilities |
Micro Cap | Gold |
Natural Resources | Small and Mid Cap |
Income | |
Utilities | U.S. Fixed Income: |
Non-Market Correlated | Corporate |
Option Income | Government |
Multimedia | Asset-backed |
ESG | Intermediate |
Healthcare | Short-term |
Convertible Securities: | |
Convertible Securities | |
ITEM 1A: | RISK FACTORS |
ITEM 1B: | UNRESOLVED STAFF COMMENTS |
Total Number of | Maximum | |||||||||||||||
Total | Average | Shares Repurchased as | Number of Shares | |||||||||||||
Number of | Price Paid Per | Part of Publicly | That May Yet Be | |||||||||||||
Shares | Share, net of | Announced Plans | Purchased Under | |||||||||||||
Period | Repurchased | Commissions | or Programs | the Plans or Programs | ||||||||||||
10/01/18 - 10/31/18 | - | $ | - | - | 941,949 | |||||||||||
11/01/18 - 11/30/18 | 18,597 | 20.70 | 18,597 | 923,352 | ||||||||||||
12/01/18 - 12/31/18 | 58,542 | 19.25 | 58,542 | 864,810 | ||||||||||||
Totals | 77,139 | $ | 19.60 | 77,139 |
Total Number of | Maximum | |||||||||||||||
Total | Shares Purchased as | Number of Class A | ||||||||||||||
Number of | Average | Part of Publicly | Shares That May Yet Be | |||||||||||||
Class A Shares | Price Paid Per | Announced Plans | Purchased Under | |||||||||||||
Period | Purchased (1) | Share | or Programs (1) | the Plans or Programs | ||||||||||||
10/01/20 - 10/31/20 | 23,582 | $ | 12.60 | 23,582 | 2,893,193 | |||||||||||
11/01/20 - 11/30/20 | 16,743 | 13.17 | 16,743 | 2,876,450 | ||||||||||||
12/01/20 - 12/31/20 | 1,791 | 16.15 | 1,791 | 2,874,659 | ||||||||||||
Totals | 42,116 | $ | 12.98 | 42,116 | ||||||||||||
(1) | On trade date basis. |
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
GAMCO Investors, Inc. | 100.00 | 102.89 | 67.37 | 67.17 | 64.69 | 36.98 | |||||||||||
SNL Asset Manager | 100.00 | 105.50 | 89.97 | 95.18 | 126.39 | 95.35 | |||||||||||
S&P 500 Index | 100.00 | 113.69 | 115.26 | 129.05 | 157.22 | 150.33 |
Number of Securities to be | Number of Securities to be | ||||||||||||||||
Issued upon Exercise of | Weighted-Average Exercise | Issued upon Exercise of | Weighted-Average Exercise | ||||||||||||||
Outstanding Options, | Price of Outstanding Options, | Outstanding Options, | Price of Outstanding Options, | ||||||||||||||
Plan Category | Warrants and Rights | Warrants and Rights | Warrants and Rights | Warrants and Rights | |||||||||||||
Equity compensation plans approved | |||||||||||||||||
by security holders: | |||||||||||||||||
Equity compensation plans approved by security holders: | |||||||||||||||||
Stock options | 10,000 | $ | 25.55 | 10,000 | $ | 25.55 | |||||||||||
Restricted stock awards | 427,650 | $ | 24.93 | 1,079,650 | $ | 19.45 | |||||||||||
Equity compensation plans not approved | |||||||||||||||||
by security holders: | - | n/a | |||||||||||||||
Equity compensation plans not approved by security holders: | – | n/a | |||||||||||||||
Total | 437,650 | $ | 24.94 | 1,089,650 | $ | 19.51 |
Year Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Income Statement Data (in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Investment advisory and incentive fees | $ | 302,651 | $ | 316,705 | $ | 308,459 | $ | 329,965 | $ | 360,498 | ||||||||||
Distribution fees and other income | 38,804 | 43,819 | 44,541 | 51,011 | 61,438 | |||||||||||||||
Total revenues | 341,455 | 360,524 | 353,000 | 380,976 | 421,936 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Compensation costs | 83,768 | 134,170 | 86,572 | 146,371 | 156,533 | |||||||||||||||
Management fee | 9,014 | 13,666 | 6,518 | 15,503 | 18,663 | |||||||||||||||
Distribution costs | 39,194 | 44,447 | 44,189 | 51,990 | 59,746 | |||||||||||||||
Other operating expenses | 22,692 | 23,221 | 23,925 | 19,163 | 17,542 | |||||||||||||||
Total expenses | 154,668 | 215,504 | 161,204 | 233,027 | 252,484 | |||||||||||||||
Operating income | 186,787 | 145,020 | 191,796 | 147,949 | 169,452 | |||||||||||||||
Other income (expense), net | ||||||||||||||||||||
Net gain from investments | (25,173 | ) | 3,115 | 1,594 | 4,953 | 4,282 | ||||||||||||||
Extinguishment of debt | - | (3,300 | ) | - | (1,067 | ) | (84 | ) | ||||||||||||
Interest and dividend income | 2,241 | 2,350 | 1,511 | 2,222 | 2,154 | |||||||||||||||
Interest expense | (3,525 | ) | (10,160 | ) | (12,674 | ) | (8,636 | ) | (7,653 | ) | ||||||||||
Charitable contributions | (5,671 | ) | (4,137 | ) | - | (6,396 | ) | (134 | ) | |||||||||||
Total other income (expense), net | (32,128 | ) | (12,132 | ) | (9,569 | ) | (8,924 | ) | (1,435 | ) | ||||||||||
Income before income taxes | 154,659 | 132,888 | 182,227 | 139,025 | 168,017 | |||||||||||||||
Income tax provision | 37,463 | 55,079 | 65,106 | 51,726 | 61,734 | |||||||||||||||
Income from continuing operations | 117,196 | 77,809 | 117,121 | 87,299 | 106,283 | |||||||||||||||
Income/(loss) from discontinued operations, net of taxes | - | - | - | (3,887 | ) | 3,107 | ||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | $ | 117,196 | $ | 77,809 | $ | 117,121 | $ | 83,412 | $ | 109,390 | ||||||||||
Net income per share attributable to GAMCO Investors, Inc.'s shareholders: | ||||||||||||||||||||
Basic - Continuing operations | $ | 4.08 | $ | 2.68 | $ | 4.01 | $ | 3.43 | $ | 4.20 | ||||||||||
Basic - Discontinued operations | - | - | - | (0.15 | ) | 0.12 | ||||||||||||||
Basic - Total | $ | 4.08 | $ | 2.68 | $ | 4.01 | $ | 3.28 | $ | 4.32 | ||||||||||
Diluted - Continuing operations | $ | 4.07 | $ | 2.60 | $ | 3.92 | $ | 3.40 | $ | 4.16 | ||||||||||
Diluted - Discontinued operations | - | - | - | (0.15 | ) | 0.12 | ||||||||||||||
Diluted - Total | $ | 4.07 | $ | 2.60 | $ | 3.92 | $ | 3.24 | $ | 4.28 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 28,744 | 28,980 | 29,182 | 25,425 | 25,335 | |||||||||||||||
Diluted | 28,777 | 30,947 | 30,170 | 25,711 | 25,558 | |||||||||||||||
Actual shares outstanding at December 31st (a) | 28,982 | 28,974 | 29,463 | 29,821 | 25,855 | |||||||||||||||
Dividends declared per share: | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.28 | $ | 0.50 |
December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Balance Sheet Data (in thousands) | ||||||||||||||||||||
Total assets (a) | $ | 134,612 | $ | 128,286 | $ | 149,229 | $ | 103,899 | $ | 865,803 | ||||||||||
Long-term obligations (a) | 28,962 | 79,087 | 239,021 | 279,267 | 116,789 | |||||||||||||||
Other liabilities and noncontrolling interest | 96,040 | 145,472 | 76,855 | 100,959 | 221,219 | |||||||||||||||
Total liabilities and noncontrolling interest | 125,002 | 224,559 | 315,876 | 380,226 | 338,008 | |||||||||||||||
Total equity (deficit) | $ | 9,610 | $ | (96,273 | ) | $ | (166,647 | ) | $ | (276,327 | ) | $ | 527,795 |
December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Assets Under Management | ||||||||||||||||||||
(at year end, in millions): | ||||||||||||||||||||
Open-end Funds | $ | 12,784 | $ | 15,617 | $ | 15,229 | $ | 15,325 | $ | 19,139 | ||||||||||
Closed-end Funds | 6,959 | 8,053 | 7,150 | 6,492 | 6,949 | |||||||||||||||
Institutional & PWM Separate Accounts | 14,104 | 18,883 | 17,255 | 16,805 | 20,359 | |||||||||||||||
SICAV (a) | 507 | 510 | 320 | 178 | 135 | |||||||||||||||
Total | $ | 34,354 | $ | 43,063 | $ | 39,954 | $ | 38,800 | $ | 46,582 |
Our 30th Annual Pump, Valve & Water Systems Symposium took place on February 27th 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 |
• | On May 15th, we hosted our 35th GAMCO Investor Client Symposium with over 500 clients and prospects attending on a virtual basis. |
• | On June 4th, the 12th Annual Entertainment & Broadcasting Symposium hosted virtual presentations from more than a dozen companies in media and entertainment. |
• | On August 10th, we announced that our Board of Directors approved a $0.25 per share shareholder designated charitable contribution. |
• | On August 24th, we hosted our 26th Annual Aerospace & Defense Symposium via webcast. The timely conference featured presentations by leading companies. |
• | On November 2nd and 3rd, Gabelli |
• | On November 13th, Gabelli Funds and the Columbia Business School hosted the 2nd Annual Healthcare Symposium which included panels that discussed vaccines and therapeutics to treat COVID-19, health policy and reimbursement trends, and healthcare delivery in |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Equities: | |||||||||||
Open-end Funds | |||||||||||
Beginning of period assets | $ | 8,855 | $ | 10,568 | $ | 10,481 | $ | 10,589 | |||
Market appreciation (depreciation) | 1,146 | 559 | 702 | 2,073 | |||||||
Net flows | (421) | (588) | (1,576) | (2,088) | |||||||
Fund distributions, net of reinvestment | (39) | (58) | (66) | (93) | |||||||
End of period assets | $ | 9,541 | $ | 10,481 | $ | 9,541 | $ | 10,481 | |||
Closed-end Funds | |||||||||||
Beginning of period assets | $ | 7,017 | $ | 7,476 | $ | 8,005 | $ | 6,959 | |||
Market appreciation (depreciation) | 901 | 437 | 606 | 1,291 | |||||||
Net flows | (17) | 227 | (320) | 278 | |||||||
Fund distributions, net of reinvestment | (128) | (135) | (518) | (523) | |||||||
End of period assets | $ | 7,773 | $ | 8,005 | $ | 7,773 | $ | 8,005 | |||
Institutional & PWM | |||||||||||
Beginning of period assets | $ | 10,539 | $ | 14,159 | $ | 14,565 | $ | 14,078 | |||
Market appreciation (depreciation) | 2,221 | 872 | 409 | 2,822 | |||||||
Net flows | (389) | (466) | (2,603) | (2,335) | |||||||
End of period assets (a) | $ | 12,371 | $ | 14,565 | $ | 12,371 | $ | 14,565 | |||
SICAV | |||||||||||
Beginning of period assets | $ | 437 | $ | 550 | $ | 594 | $ | 507 | |||
Market appreciation (depreciation) | 38 | 25 | 44 | 20 | |||||||
Net flows | (1) | 19 | (164) | 67 | |||||||
End of period assets | $ | 474 | $ | 594 | $ | 474 | $ | 594 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Total Equities | |||||||||||
Beginning of period assets | $ | 26,848 | $ | 32,753 | $ | 33,645 | $ | 32,133 | |||
Market appreciation (depreciation) | 4,306 | 1,893 | 1,761 | 6,206 | |||||||
Net flows | (828) | (808) | (4,663) | (4,078) | |||||||
Fund distributions, net of reinvestment | (167) | (193) | (584) | (616) | |||||||
End of period assets | $ | 30,159 | $ | 33,645 | $ | 30,159 | $ | 33,645 | |||
Fixed Income: | |||||||||||
100% U.S. Treasury fund | |||||||||||
Beginning of period assets | $ | 2,822 | $ | 2,921 | $ | 2,810 | $ | 2,195 | |||
Market appreciation (depreciation) | – | 13 | 14 | 54 | |||||||
Net flows | (452) | (124) | (454) | 561 | |||||||
End of period assets | $ | 2,370 | $ | 2,810 | $ | 2,370 | $ | 2,810 | |||
Institutional & PWM | |||||||||||
Beginning of period assets | $ | 22 | $ | 18 | $ | 20 | $ | 26 | |||
Market appreciation (depreciation) | – | – | – | (1) | |||||||
Net flows | 10 | 2 | 12 | (5) | |||||||
End of period assets | $ | 32 | $ | 20 | $ | 32 | $ | 20 | |||
Total Fixed Income | |||||||||||
Beginning of period assets | $ | 2,844 | $ | 2,939 | $ | 2,830 | $ | 2,221 | |||
Market appreciation (depreciation) | – | 13 | 14 | 53 | |||||||
Net flows | (442) | (122) | (442) | 556 | |||||||
End of period assets | $ | 2,402 | $ | 2,830 | $ | 2,402 | $ | 2,830 | |||
Total AUM | |||||||||||
Beginning of period assets | $ | 29,692 | $ | 35,692 | $ | 36,475 | $ | 34,354 | |||
Market appreciation (depreciation) | 4,306 | 1,906 | 1,775 | 6,259 | |||||||
Net flows | (1,270) | (930) | (5,105) | (3,522) | |||||||
Fund distributions, net of reinvestment | (167) | (193) | (584) | (616) | |||||||
End of period assets | $ | 32,561 | $ | 36,475 | $ | 32,561 | $ | 36,475 |
Year Ended December 31, | |||||
2020 | 2019 | ||||
Revenues | |||||
Investment advisory and incentive fees | $ | 233,628 | $ | 279,090 | |
Distribution fees and other income | 26,098 | 33,278 | |||
Total revenues | 259,726 | 312,368 | |||
Expenses | |||||
Compensation | 102,347 | 123,528 | |||
Management fee | 5,376 | 9,963 | |||
Distribution costs | 28,474 | 34,226 | |||
Other operating expenses | 23,920 | 26,667 | |||
Total expenses | 160,117 | 194,384 | |||
Operating income | 99,609 | 117,984 | |||
Non-operating income / (loss) | |||||
Loss from investments, net | (8,695) | (5,392) | |||
Interest and dividend income | 826 | 3,175 | |||
Interest expense | (2,620) | (2,609) | |||
Shareholder-designated charitable contribution | (5,436) | (4,500) | |||
Total non-operating loss | (15,925) | (9,326) | |||
Income before income taxes | 83,684 | 108,658 | |||
Provision for income taxes | 24,991 | 26,741 | |||
Net income | $ | 58,693 | $ | 81,917 | |
Earnings per share: | |||||
Basic | $ | 2.21 | $ | 2.99 | |
Diluted | $ | 2.20 | $ | 2.98 |
Year Ended December 31, | CAGR (a) | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | 2018/2014 | |||||||||||||||||||
Equities: | ||||||||||||||||||||||||
Open-End | $ | 10,589 | $ | 13,747 | $ | 13,462 | $ | 13,811 | $ | 17,684 | (12.0 | )% | ||||||||||||
Closed-End | 6,959 | 8,053 | 7,150 | 6,492 | 6,949 | - | ||||||||||||||||||
Institutional & PWM | 14,078 | 18,852 | 17,224 | 16,767 | 20,301 | (8.7 | ) | |||||||||||||||||
SICAV (b) | 507 | 510 | 320 | 178 | 135 | 39.2 | ||||||||||||||||||
Total Equities | 32,133 | 41,162 | 38,156 | 37,248 | 45,069 | (8.1 | ) | |||||||||||||||||
Fixed Income: | ||||||||||||||||||||||||
Money-Market Fund | 2,195 | 1,870 | 1,767 | 1,514 | 1,455 | 10.8 | ||||||||||||||||||
Institutional & PWM | 26 | 31 | 31 | 38 | 58 | (18.2 | ) | |||||||||||||||||
Total Fixed Income | 2,221 | 1,901 | 1,798 | 1,552 | 1,513 | 10.1 | ||||||||||||||||||
Total AUM | $ | 34,354 | $ | 43,063 | $ | 39,954 | $ | 38,800 | $ | 46,582 | (7.3 | )% |
Year Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Equities: | ||||||||||||||||||||
Open-End | $ | (2,160 | ) | $ | (1,347 | ) | $ | (1,832 | ) | $ | (3,053 | ) | $ | (355 | ) | |||||
Closed-End (a) | (501 | ) | (91 | ) | (55 | ) | (87 | ) | (137 | ) | ||||||||||
Institutional & PWM | (2,464 | ) | (1,079 | ) | (1,797 | ) | (2,510 | ) | (1,096 | ) | ||||||||||
SICAV(b) | 28 | 149 | 133 | 49 | 42 | |||||||||||||||
Total Equities | (5,097 | ) | (2,368 | ) | (3,551 | ) | (5,601 | ) | (1,546 | ) | ||||||||||
Fixed Income: | ||||||||||||||||||||
Money-Market Fund | 290 | 89 | 249 | 59 | (280 | ) | ||||||||||||||
Institutional & PWM | (5 | ) | - | (7 | ) | (20 | ) | (4 | ) | |||||||||||
Total Fixed Income | 285 | 89 | 242 | 39 | (284 | ) | ||||||||||||||
Total Net Cash In (Out) Flows | $ | (4,812 | ) | $ | (2,279 | ) | $ | (3,309 | ) | $ | (5,562 | ) | $ | (1,830 | ) |
Closed-End Fund flows | ||||||||||||
Offerings, net | Distributions, net of | |||||||||||
of repurchases | reinvestments | Net | ||||||||||
2018 | $ | 21 | $ | (522 | ) | $ | (501 | ) | ||||
2017 | 392 | (483 | ) | (91 | ) | |||||||
2016 | 445 | (500 | ) | (55 | ) | |||||||
2015 | 374 | (461 | ) | (87 | ) | |||||||
2014 | 342 | (479 | ) | (137 | ) |
Year Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Equities | ||||||||||||||||||||
Open-End | $ | (998 | ) | $ | 1,632 | $ | 1,483 | $ | (820 | ) | $ | 961 | ||||||||
Closed-End | (593 | ) | 994 | 713 | (370 | ) | 141 | |||||||||||||
Institutional & PWM | (2,310 | ) | 2,707 | 2,254 | (1,024 | ) | 1,114 | |||||||||||||
SICAV(a) | (31 | ) | 41 | 9 | (6 | ) | (3 | ) | ||||||||||||
Total Equities | (3,932 | ) | 5,374 | 4,459 | (2,220 | ) | 2,213 | |||||||||||||
Fixed Income | ||||||||||||||||||||
Money-Market Fund | 35 | 14 | 4 | - | - | |||||||||||||||
Institutional & PWM | - | - | - | - | - | |||||||||||||||
Total Fixed Income | 35 | 14 | 4 | - | - | |||||||||||||||
Total Net Appreciation/(Depreciation) | $ | (3,897 | ) | $ | 5,388 | $ | 4,463 | $ | (2,220 | ) | $ | 2,213 |
Year Ended December 31, | Increase (decrease) | |||||||||||||||||||||||||||||||
2018 | 2017 | $ | % | Year Ended December 31, | Increase (decrease) | |||||||||||||||||||||||||||
2020 | 2019 | _$ | _% | |||||||||||||||||||||||||||||
Investment advisory | $ | 299.6 | $ | 307.6 | $ | (8.0 | ) | (2.6 | ) | $ | 224.7 | $ | 264.6 | $ | (39.9 | ) | (15.1 | ) | ||||||||||||||
Incentive fees | 3.1 | 9.1 | (6.0 | ) | (65.9 | ) | 8.9 | 14.5 | (5.6 | ) | (38.6 | ) | ||||||||||||||||||||
Distribution fees and other income | 38.8 | 43.8 | (5.0 | ) | (11.4 | ) | 26.1 | 33.3 | (7.2 | ) | (21.6 | ) | ||||||||||||||||||||
Total revenues | $ | 341.5 | $ | 360.5 | $ | (19.0 | ) | (5.3 | ) | $ | 259.7 | $ | 312.4 | $ | (52.7 | ) | (16.9 | ) |
2018 | 2017 | |||||||
Revenues | $ | 341,455 | $ | 360,524 | ||||
Operating Income | 186,787 | 145,020 | ||||||
Add back: management fee expense | 9,014 | 13,666 | ||||||
Operating income before management fee | $ | 195,801 | $ | 158,686 | ||||
Operating margin | 54.7 | % | 40.2 | % | ||||
Operating margin before management fee | 57.3 | % | 44.0 | % |
Year Ended December 31, | Increase (decrease) | ||||||||||||||||
2017 | 2016 | $ | % | ||||||||||||||
Investment advisory | $ | 307.6 | $ | 293.1 | $ | 14.5 | 4.9 | ||||||||||
Incentive fees | 9.1 | 15.4 | (6.3 | ) | (40.9) | | |||||||||||
Distribution fees and other income | 43.8 | 44.5 | (0.7 | ) | (1.6) | | |||||||||||
Total revenues | $ | 360.5 | $ | 353.0 | $ | 7.5 | 2.1 |
2017 | 2016 | 2020 | 2019 | ||||||||||
Revenues | $ | 360,524 | $ | 353,000 | |||||||||
Operating income | 145,020 | 191,796 | |||||||||||
Revenues, U.S. GAAP basis | $ | 259,726 | $ | 312,368 | |||||||||
Operating income, U.S. GAAP basis | 99,609 | 117,984 | |||||||||||
Add back: management fee expense | 13,666 | 6,518 | 5,376 | 9,963 | |||||||||
Operating income before management fee | $ | 158,686 | $ | 198,314 | $ | 104,985 | $ | 127,947 | |||||
Operating margin | 40.2 | % | 54.3 | % | 38.4% | 37.8% | |||||||
Operating margin before management fee | 44.0 | % | 56.2 | % | 40.4% | 41.0% |
Number of RSUs | Original VWAP | Vesting Date VWAP | Vesting Date | Deferred Cash Compensation | Impact of Indexing to GBL Stock Price | Waiver | Vesting Date Cash Payment | ||||||||||||||||||||||
2016 DCCA | 2,314,695 | $ | 32.8187 | $ | 18.8812 | 1/2/2020 | $ | 76.0 | $ | (32.3 | ) | $ | - | $ | 43.7 | ||||||||||||||
Fourth Quarter 2017 DCCA | 530,662 | 29.1875 | 20.7916 | 4/1/2019 | 15.5 | (4.5 | ) | - | 11.0 |
2017 | 2018 | 2019 | 2020 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
Q1 | $ | (8,126 | ) | $ | 979 | $ | 3,937 | $ | - | Q1 | $ | 0.16 | $ | (0.03 | ) | $ | 0.10 | $ | - | |||||||||||||||||||
Q2 | (7,389 | ) | 11,232 | 2,443 | - | Q2 | 0.15 | (0.29 | ) | 0.06 | - | |||||||||||||||||||||||||||
Q3 | 9,805 | 183 | 2,443 | - | Q3 | (0.20 | ) | - | 0.06 | - | ||||||||||||||||||||||||||||
Q4 | (1,857 | ) | (8,764 | ) | 2,443 | - | Q4 | 0.04 | (0.23 | ) | 0.06 | - | ||||||||||||||||||||||||||
Year | $ | (7,567 | ) | $ | 3,630 | $ | 11,266 | $ | - | Year | $ | 0.15 | $ | (0.55 | ) | $ | 0.28 | $ | - |
Amortization by quarter (increase / (decrease)): | EPS impact by quarter: | ||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||
_Q1 | $ | 12,615 | $ | (1,409) | _Q1 | $ | (0.33) | $ | 0.04 | ||||
_Q2 | 427 | — | _Q2 | (0.01) | — | ||||||||
_Q3 | 3,598 | — | _Q3 | (0.09) | — | ||||||||
_Q4 | 2,689 | — | _Q4 | (0.09) | — | ||||||||
Year | $ | 19,329 | $ | (1,409) | Year | $ | (0.53) | $ | 0.04 |
Year Ended December 31, 2018 | ||||||||||||||||||||
Impact of | Impact of | |||||||||||||||||||
Reported | Fourth Quarter | First Half | Impact of | |||||||||||||||||
GAAP | 2017 DCCA | 2017 DCCA | 2016 DCCA | Non-GAAP | ||||||||||||||||
Revenues | ||||||||||||||||||||
Investment advisory and incentive fees | $ | 302,651 | $ | - | $ | - | $ | - | $ | 302,651 | ||||||||||
Distribution fees and other income | 38,804 | - | - | - | 38,804 | |||||||||||||||
Total revenues | 341,455 | - | - | - | 341,455 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation | 83,768 | (3,210 | ) | (2,335 | ) | 9,113 | 87,336 | |||||||||||||
Management fee | 9,014 | (1,676 | ) | (1,401 | ) | (4,120 | ) | 1,817 | ||||||||||||
Distribution costs | 39,194 | - | - | - | 39,194 | |||||||||||||||
Other operating expenses | 22,692 | - | - | - | 22,692 | |||||||||||||||
Total expenses | 154,668 | (4,886 | ) | (3,736 | ) | 4,993 | 151,039 | |||||||||||||
Operating income | 186,787 | 4,886 | 3,736 | (4,993 | ) | 190,416 | ||||||||||||||
Other income (expense) | ||||||||||||||||||||
Net gain (loss) from investments | (25,173 | ) | - | - | - | (25,173 | ) | |||||||||||||
Interest and dividend income | 2,241 | - | - | - | 2,241 | |||||||||||||||
Interest expense | (3,525 | ) | - | - | - | (3,525 | ) | |||||||||||||
Charitable contributions | (5,671 | ) | - | - | - | (5,671 | ) | |||||||||||||
Total other expense, net | (32,128 | ) | - | - | - | (32,128 | ) | |||||||||||||
Income before income taxes | 154,659 | 4,886 | 3,736 | (4,993 | ) | 158,288 | ||||||||||||||
Income tax provision | 37,463 | 1,222 | 934 | (1,249 | ) | 38,370 | ||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | $ | 117,196 | $ | 3,664 | $ | 2,802 | $ | (3,744 | ) | $ | 119,918 | |||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | ||||||||||||||||||||
per share: | ||||||||||||||||||||
Basic | $ | 4.08 | $ | 0.13 | $ | 0.10 | $ | (0.13 | ) | $ | 4.17 | |||||||||
Diluted | $ | 4.07 | $ | 0.13 | $ | 0.10 | $ | (0.13 | ) | $ | 4.17 |
Year Ended December 31, 2017 | ||||||||||||||||||||
Impact of | Impact of | |||||||||||||||||||
Reported | Fourth Quarter | First Half | Impact of | |||||||||||||||||
GAAP | 2017 DCCA | 2017 DCCA | 2016 DCCA | Non-GAAP | ||||||||||||||||
Revenues | ||||||||||||||||||||
Investment advisory and incentive fees | $ | 316,705 | $ | - | $ | - | $ | - | $ | 316,705 | ||||||||||
Distribution fees and other income | 43,819 | - | - | - | 43,819 | |||||||||||||||
Total revenues | 360,524 | - | - | - | 360,524 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation | 134,170 | 10,318 | 9,619 | (12,322 | ) | 141,785 | ||||||||||||||
Management fee | 13,666 | 1,064 | 1,775 | (2,887 | ) | 13,618 | ||||||||||||||
Distribution costs | 44,447 | - | - | - | 44,447 | |||||||||||||||
Other operating expenses | 23,221 | - | - | - | 23,221 | |||||||||||||||
Total expenses | 215,504 | 11,382 | 11,394 | (15,209 | ) | 223,071 | ||||||||||||||
Operating income | 145,020 | (11,382 | ) | (11,394 | ) | 15,209 | 137,453 | |||||||||||||
Other income (expense) | ||||||||||||||||||||
Net gain (loss) from investments | (185 | ) | - | - | - | (185 | ) | |||||||||||||
Interest and dividend income | 2,350 | - | - | - | 2,350 | |||||||||||||||
Interest expense | (10,160 | ) | - | - | - | (10,160 | ) | |||||||||||||
Charitable contributions | (4,137 | ) | - | - | - | (4,137 | ) | |||||||||||||
Total other expense, net | (12,132 | ) | - | - | - | (12,132 | ) | |||||||||||||
Income before income taxes | 132,888 | (11,382 | ) | (11,394 | ) | 15,209 | 125,321 | |||||||||||||
Income tax provision | 55,079 | (4,325 | ) | (4,442 | ) | 5,818 | 52,130 | |||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | $ | 77,809 | $ | (7,057 | ) | $ | (6,952 | ) | $ | 9,391 | $ | 73,191 | ||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | ||||||||||||||||||||
per share: | ||||||||||||||||||||
Basic | $ | 2.68 | $ | (0.24 | ) | $ | (0.24 | ) | $ | 0.32 | $ | 2.53 | ||||||||
Diluted | $ | 2.60 | $ | (0.23 | ) | $ | (0.22 | ) | $ | 0.30 | $ | 2.45 |
December 31, 2018 | ||||||||||||||||
Impact of | ||||||||||||||||
Reported | Fourth Quarter | Impact of | ||||||||||||||
GAAP | 2017 DCCA | 2016 DCCA | Non-GAAP | |||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 41,202 | $ | - | $ | - | $ | 41,202 | ||||||||
Investments in securities | 33,789 | - | - | 33,789 | ||||||||||||
Receivable from brokers | 3,423 | - | - | 3,423 | ||||||||||||
Investment advisory fees receivable | 25,677 | - | - | 25,677 | ||||||||||||
Receivable from affiliates | 4,194 | - | - | 4,194 | ||||||||||||
Income tax receivable | 15,001 | 374 | 2,444 | 17,819 | ||||||||||||
Other assets | 11,326 | - | - | 11,326 | ||||||||||||
Total assets | $ | 134,612 | $ | 374 | $ | 2,444 | $ | 137,430 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Payable to brokers | 112 | - | - | 112 | ||||||||||||
Income taxes payable and deferred tax liabilities | 2,388 | - | - | 2,388 | ||||||||||||
Capital lease obligation | 4,794 | - | - | 4,794 | ||||||||||||
Compensation payable | 60,408 | 1,494 | 9,774 | 71,676 | ||||||||||||
Payable to affiliates | 1,041 | - | - | 1,041 | ||||||||||||
Accrued expenses and other liabilities | 32,091 | - | - | 32,091 | ||||||||||||
Sub-total | 100,834 | 1,494 | 9,774 | 112,102 | ||||||||||||
5.875% Senior notes (due June 1, 2021) | 24,168 | - | - | 24,168 | ||||||||||||
Total liabilities | 125,002 | 1,494 | 9,774 | 136,270 | ||||||||||||
Equity | ||||||||||||||||
GAMCO Investors, Inc. stockholders' equity | ||||||||||||||||
Class A Common Stock | 14 | - | - | 14 | ||||||||||||
Class B Common Stock | 19 | - | - | 19 | ||||||||||||
Additional paid-in capital | 14,192 | - | - | 14,192 | ||||||||||||
Retained earnings (deficit) | 282,928 | (1,120 | ) | (7,330 | ) | 274,478 | ||||||||||
Accumulated other comprehensive income | (240 | ) | - | - | (240 | ) | ||||||||||
Treasury stock, at cost | (287,303 | ) | - | - | (287,303 | ) | ||||||||||
Total GAMCO Investors, Inc. stockholders' equity (deficit) | 9,610 | (1,120 | ) | (7,330 | ) | 1,160 | ||||||||||
Total liabilities and equity (deficit) | $ | 134,612 | $ | 374 | $ | 2,444 | $ | 137,430 |
Year Ended December 31, | |||||
2020 | 2019 | ||||
Net income, U.S. GAAP basis | $ | 58,693 | $ | 81,917 | |
Impact of 2016 DCCA on expenses and taxes: | |||||
Compensation costs | (1,409) | 11,654 | |||
Management fee expense | - | 4,119 | |||
Provision for income taxes | 338 | (3,785) | |||
Total impact of 2016 DCCA | (1,071) | 11,988 | |||
Impact of Fourth Quarter 2017 DCCA on expenses and taxes: | |||||
Compensation costs | - | 3,137 | |||
Management fee expense | - | 419 | |||
Provision for income taxes | - | (854) | |||
Total impact of Fourth Quarter 2017 DCCA | - | 2,702 | |||
Total impact of DCCAs on expense and taxes | (1,071) | 14,690 | |||
Net income, as adjusted | $ | 57,622 | $ | 96,607 | |
Per share (basic): | |||||
Net income, U.S. GAAP basis | $ | 2.21 | $ | 2.99 | |
Impact of DCCAs | (0.04) | 0.54 | |||
Net income, as adjusted | $ | 2.17 | $ | 3.53 | |
Per fully diluted share: | |||||
Net income, U.S. GAAP basis | $ | 2.20 | $ | 2.98 | |
Impact of DCCAs | (0.04) | 0.53 | |||
Net income, as adjusted | $ | 2.16 | $ | 3.51 |
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||
2018 | 2017 | 2016 | 2020 | 2019 | |||||||||||||
(in thousands) | |||||||||||||||||
Cash flows provided by (used in) from continuing operations: | |||||||||||||||||
Cash flows provided by (used in): | |||||||||||||||||
Operating activities | $ | 117,882 | $ | 126,691 | $ | 115,737 | $ | 40,734 | $ | 89,991 | |||||||
Investing activities | (2,388 | ) | 237 | (1,435 | ) | (63,511) | (4,756) | ||||||||||
Financing activities | (92,029 | ) | (148,902 | ) | (88,247 | ) | (30,026) | (40,293) | |||||||||
Increase (decrease) in cash and cash equivalents from continuing operations | 23,465 | (21,974 | ) | 26,055 | |||||||||||||
Increase (decrease) in cash and cash equivalents | (52,803) | 44,942 | |||||||||||||||
Effect of exchange rates on cash and cash equivalents | (84 | ) | (17 | ) | 38 | (8) | (8) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 23,381 | (21,991 | ) | 26,093 | (52,811) | 44,934 | |||||||||||
Cash and cash equivalents at beginning of year | 17,821 | 39,812 | 13,719 | 86,136 | 41,202 | ||||||||||||
Cash and cash equivalents at end of year | $ | 41,202 | $ | 17,821 | $ | 39,812 | $ | 33,325 | $ | 86,136 | |||||||
Short-term investments in U.S. Treasury Bills | $ | 64,988 | $ | - | |||||||||||||
Investments in fixed maturity securities | - | 6,547 | |||||||||||||||
Cash, cash equivalents, short-term investments in U.S Treasury Bills, | |||||||||||||||||
and investments in fixed maturity securities | $ | 98,313 | $ | 92,683 |
Fair Value | Fair Value | |||||||||||
assuming | assuming | |||||||||||
10% decrease in | 10% increase in | |||||||||||
Fair Value | equity prices | equity prices | ||||||||||
At December 31, 2018: | ||||||||||||
Equity price sensitive investments, at fair value | $ | 33,789 | $ | 30,410 | $ | 37,168 | ||||||
At December 31, 2017: | ||||||||||||
Equity price sensitive investments, at fair value | $ | 36,790 | $ | 33,111 | $ | 40,470 |
Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | |||||||||||||||||||||||||||||||||||
Contractual Obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||
5.875% Senior notes | $ | 24,225 | $ | - | $ | - | $ | 24,225 | $ | - | $ | - | $ | - | $ | 24,225 | $ | 24,225 | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||||||||||||
Interest on 5.875% Senior notes | 3,439 | 1,423 | 1,423 | 593 | - | - | - | 593 | 593 | – | – | – | – | – | ||||||||||||||||||||||||||||||||||
Capital lease obligations | 10,973 | 1,253 | 1,080 | 1,080 | 1,080 | 1,080 | 5,400 | |||||||||||||||||||||||||||||||||||||||||
Finance lease obligations | 8,854 | 1,294 | 1,080 | 1,080 | 1,080 | 1,080 | 3,240 | |||||||||||||||||||||||||||||||||||||||||
Non-cancelable operating lease obligations | 809 | 616 | 121 | 68 | 4 | - | - | 1,000 | 473 | 281 | 185 | 61 | – | – | ||||||||||||||||||||||||||||||||||
Total | $ | 39,446 | $ | 3,292 | $ | 2,624 | $ | 25,966 | $ | 1,084 | $ | 1,080 | $ | 5,400 | $ | 34,672 | $ | 26,585 | $ | 1,361 | $ | 1,265 | $ | 1,141 | $ | 1,080 | $ | 3,240 |
Fair Value | Fair Value | |||||||||||
assuming | assuming | |||||||||||
10% decrease in | 10% increase in | |||||||||||
Fair Value | equity prices | equity prices | ||||||||||
At December 31, 2020: | ||||||||||||
Equity price sensitive investments, at fair value | $ | 25,845 | $ | 23,261 | $ | 28,430 | ||||||
At December 31, 2019: | ||||||||||||
Equity price sensitive investments, at fair value | $ | 27,726 | $ | 24,953 | $ | 30,499 |
Page | |
Report of Independent Registered Public Accounting Firm | |
Report of Independent Registered Public Accounting Firm on Effectiveness of Internal Control over Financial Reporting | |
Consolidated Financial Statements: | |
Consolidated Statements of Financial Condition at December 31, 2020 and 2019 | 43 |
Consolidated Statements of Income for the years ended December 31, | |
Consolidated Statements of Comprehensive Income for the years ended December 31, | |
Consolidated Statements of Equity for the years ended December 31, | |
Consolidated Statements of Cash Flows for the years ended December 31, | |
Notes to Consolidated Financial Statements |
December 31, 2020 | December 31, 2019 | |||||||
ASSETS | ||||||||
Cash and cash equivalents (a) | $ | 33,325 | $ | 86,136 | ||||
Short-term investments in U.S. Treasury Bills | 64,988 | 0 | ||||||
Investments in fixed maturity securities | 0 | 6,547 | ||||||
Investments in equity securities, at fair value | 25,845 | 27,726 | ||||||
Receivable from brokers | 5,833 | 989 | ||||||
Investment advisory fees receivable | 28,796 | 36,093 | ||||||
Receivable from affiliates | 4,882 | 3,940 | ||||||
Finance lease | 2,452 | 2,678 | ||||||
Goodwill and identifiable intangible assets | 3,176 | 3,765 | ||||||
Deferred tax asset and income taxes receivable | 9,462 | 16,389 | ||||||
Other assets | 6,643 | 5,623 | ||||||
Total assets | $ | 185,402 | $ | 189,886 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Income taxes payable | $ | 3,910 | $ | 757 | ||||
Lease liability obligations | 5,208 | 5,431 | ||||||
Compensation payable | 21,543 | 64,279 | ||||||
Securities Sold, not yet purchased | 799 | 0 | ||||||
Payable to affiliates | 3,843 | 3,982 | ||||||
Accrued expenses and other liabilities | 38,973 | 36,529 | ||||||
Sub-total | 74,276 | 110,978 | ||||||
5.875% Senior Notes (net of issuance costs of $10 and $34, respectively) (due June 1, 2021) (Note 7) | 24,215 | 24,191 | ||||||
Total liabilities | 98,491 | 135,169 | ||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||
Stockholders' Equity | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; NaN issued and outstanding | 0 | 0 | ||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized; 16,621,426 and 16,202,726 shares issued, respectively; 8,478,694 and 8,356,290 shares outstanding, respectively | 14 | 14 | ||||||
Class B Common Stock, $0.001 par value; 25,000,000 shares and 100,000,000 shares authorized, respectively; 24,000,000 shares issued; 19,024,117 shares outstanding | 19 | 19 | ||||||
Additional paid-in capital | 21,219 | 17,033 | ||||||
Retained earnings | 394,386 | 362,515 | ||||||
Accumulated comprehensive income | (165 | ) | (204 | ) | ||||
Treasury stock, at cost (8,142,732 and 7,846,436 shares, respectively) | (328,562 | ) | (324,660 | ) | ||||
Total stockholders' equity | 86,911 | 54,717 | ||||||
Total liabilities and stockholders' equity | $ | 185,402 | $ | 189,886 |
Year Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2020 | 2019 | ||||||||||||||||
Revenues | ||||||||||||||||||||
Investment advisory and incentive fees | $ | 302,651 | $ | 316,705 | $ | 308,459 | $ | 233,628 | $ | 279,090 | ||||||||||
Distribution fees and other income | 38,804 | 43,819 | 44,541 | 26,098 | 33,278 | |||||||||||||||
Total revenues | 341,455 | 360,524 | 353,000 | 259,726 | 312,368 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation | 83,768 | 134,170 | 86,572 | 102,347 | 123,528 | |||||||||||||||
Management fee | 9,014 | 13,666 | 6,518 | 5,376 | 9,963 | |||||||||||||||
Distribution costs | 39,194 | 44,447 | 44,189 | 28,474 | 34,226 | |||||||||||||||
Other operating expenses | 22,692 | 23,221 | 23,925 | 23,920 | 26,667 | |||||||||||||||
Total expenses | 154,668 | 215,504 | 161,204 | 160,117 | 194,384 | |||||||||||||||
Operating income | 186,787 | 145,020 | 191,796 | 99,609 | 117,984 | |||||||||||||||
Other income (expense) | ||||||||||||||||||||
Net gain/(loss) from investments | (25,173 | ) | 3,115 | 1,594 | ||||||||||||||||
Extinguishment of debt | - | (3,300 | ) | - | ||||||||||||||||
Non-operating income / (loss) | ||||||||||||||||||||
Loss from investments, net | (8,695 | ) | (5,392 | ) | ||||||||||||||||
Interest and dividend income | 2,241 | 2,350 | 1,511 | 826 | 3,175 | |||||||||||||||
Interest expense | (3,525 | ) | (10,160 | ) | (12,674 | ) | (2,620 | ) | (2,609 | ) | ||||||||||
Charitable contributions | (5,671 | ) | (4,137 | ) | - | |||||||||||||||
Total other income (expense), net | (32,128 | ) | (12,132 | ) | (9,569 | ) | ||||||||||||||
Shareholder-designated charitable contribution | (5,436 | ) | (4,500 | ) | ||||||||||||||||
Total non-operating loss | (15,925 | ) | (9,326 | ) | ||||||||||||||||
Income before income taxes | 154,659 | 132,888 | 182,227 | 83,684 | 108,658 | |||||||||||||||
Income tax provision | 37,463 | 55,079 | 65,106 | |||||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | $ | 117,196 | $ | 77,809 | $ | 117,121 | ||||||||||||||
Net income per share attributable to GAMCO Investors, Inc.'s | ||||||||||||||||||||
shareholders: | ||||||||||||||||||||
Provision for income taxes | 24,991 | 26,741 | ||||||||||||||||||
Net income | $ | 58,693 | $ | 81,917 | ||||||||||||||||
�� | ||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 4.08 | $ | 2.68 | $ | 4.01 | $ | 2.21 | $ | 2.99 | ||||||||||
Diluted | $ | 4.07 | $ | 2.60 | $ | 3.92 | $ | 2.20 | $ | 2.98 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 28,744 | 28,980 | 29,182 | 26,571 | 27,407 | |||||||||||||||
Diluted | 28,777 | 30,947 | 30,170 | 26,680 | 27,479 | |||||||||||||||
Actual shares outstanding | 28,982 | 28,974 | 29,463 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | $ | 117,196 | $ | 77,809 | $ | 117,121 | ||||||
Other comprehensive income/(loss), net of tax: | ||||||||||||
Foreign currency translation | (6 | ) | 82 | (164 | ) | |||||||
Net unrealized gains on securities available for sale (a) | - | 523 | 2,320 | |||||||||
Other comprehensive income/(loss) | (6 | ) | 605 | 2,156 | ||||||||
Comprehensive income attributable to GAMCO Investors, Inc. shareholders | $ | 117,190 | $ | 78,414 | $ | 119,277 |
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 58,693 | $ | 81,917 | ||||
Other comprehensive income: | ||||||||
Foreign currency translation gain | 39 | 36 | ||||||
Total comprehensive income | $ | 58,732 | $ | 81,953 |
December 31, | December 31, | |||||||
2018 | 2017 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 41,202 | $ | 17,821 | ||||
Investments in securities | 33,789 | 36,790 | ||||||
Receivable from brokers | 3,423 | 1,578 | ||||||
Investment advisory fees receivable | 25,677 | 38,712 | ||||||
Receivable from affiliates | 4,194 | 5,635 | ||||||
Capital lease | 2,095 | 2,304 | ||||||
Goodwill and identifiable intangible assets | 3,765 | 3,765 | ||||||
Income taxes receivable and deferred tax assets, net | 15,001 | 15,615 | ||||||
Other assets | 5,466 | 6,066 | ||||||
Total assets | $ | 134,612 | $ | 128,286 | ||||
LIABILITIES AND EQUITY | ||||||||
Payable to brokers | $ | 112 | $ | 14,926 | ||||
Income taxes payable | 2,388 | 3,128 | ||||||
Capital lease obligation | 4,794 | 4,943 | ||||||
Compensation payable | 60,408 | 82,907 | ||||||
Payable to affiliates | 1,041 | 855 | ||||||
Accrued expenses and other liabilities | 32,091 | 28,656 | ||||||
Sub-total | 100,834 | 135,415 | ||||||
AC 4% PIK Note (due November 30, 2020) (Note G) | - | 50,000 | ||||||
5.875% Senior notes (net of issuance costs of $57 and $81, respectively) (due June 1, 2021) (Note G) | 24,168 | 24,144 | ||||||
AC 1.6% Note Payable (due February 28, 2018) (Note G) | - | 15,000 | ||||||
Total liabilities | 125,002 | 224,559 | ||||||
Commitments and contingencies (Note J) | ||||||||
Equity: | ||||||||
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued and outstanding | - | - | ||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized; 15,969,303 and 15,541,489 | ||||||||
shares issued, respectively; 9,957,301 and 9,949,482 shares outstanding, respectively | 14 | 14 | ||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 24,000,000 shares issued | ||||||||
and 19,024,240 and 19,024,404 shares outstanding, respectively | 19 | 19 | ||||||
Additional paid-in capital | 14,192 | 12,572 | ||||||
Retained earnings | 282,928 | 155,939 | ||||||
Accumulated comprehensive income | (240 | ) | 11,876 | |||||
Treasury stock, at cost (6,012,002 and 5,592,007 shares, respectively) | (287,303 | ) | (276,693 | ) | ||||
Total equity/(deficit) | 9,610 | (96,273 | ) | |||||
Total liabilities and equity | $ | 134,612 | $ | 128,286 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total | |||||||||||||||||||
Balance at December 31, 2019 | $ | 33 | $ | 17,033 | $ | 362,515 | $ | (204 | ) | $ | (324,660 | ) | $ | 54,717 | ||||||||||
Net income | 0 | 0 | 11,245 | 0 | 0 | 11,245 | ||||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | (61 | ) | 0 | (61 | ) | ||||||||||||||||
Dividends declared ($0.02 per share) | 0 | 0 | (552 | ) | 0 | 0 | (552 | ) | ||||||||||||||||
Stock based compensation expense | 0 | 941 | 0 | 0 | 0 | 941 | ||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (946 | ) | (946 | ) | ||||||||||||||||
Balance at March 31, 2020 | $ | 33 | $ | 17,974 | $ | 373,208 | $ | (265 | ) | $ | (325,606 | ) | $ | 65,344 | ||||||||||
Net income | 0 | 0 | 11,290 | 0 | 0 | 11,290 | ||||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | (4 | ) | 0 | (4 | ) | ||||||||||||||||
Dividends declared ($0.02 per share) | 0 | 0 | (551 | ) | 0 | 0 | (551 | ) | ||||||||||||||||
Stock based compensation expense | 0 | 1,137 | 0 | 0 | 0 | 1,137 | ||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (772 | ) | (772 | ) | ||||||||||||||||
Balance at June 30, 2020 | $ | 33 | $ | 19,111 | $ | 383,947 | $ | (269 | ) | $ | (326,378 | ) | $ | 76,444 | ||||||||||
Net income | 0 | 0 | 16,435 | 0 | 0 | 16,435 | ||||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | 42 | 0 | 42 | ||||||||||||||||||
Dividends declared ($0.02 per share) | 0 | 0 | (547 | ) | 0 | 0 | (547 | ) | ||||||||||||||||
Stock based compensation expense | 0 | 993 | 0 | 0 | 0 | 993 | ||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (1,637 | ) | (1,637 | ) | ||||||||||||||||
Balance at September 30, 2020 | $ | 33 | $ | 20,104 | $ | 399,835 | $ | (227 | ) | $ | (328,015 | ) | $ | 91,730 | ||||||||||
Net income | 0 | 0 | 19,723 | 0 | 0 | 19,723 | ||||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | 62 | 0 | 62 | ||||||||||||||||||
Dividends declared ($0.92 per share) | 0 | 0 | (25,172 | ) | 0 | 0 | (25,172 | ) | ||||||||||||||||
Stock based compensation expense | 0 | 1,115 | 0 | 0 | 0 | 1,115 | ||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (547 | ) | (547 | ) | ||||||||||||||||
Balance at December 31, 2020 | $ | 33 | $ | 21,219 | $ | 394,386 | $ | (165 | ) | $ | (328,562 | ) | $ | 86,911 |
GAMCO Investors, Inc. shareholders | ||||||||||||||||||||||||
Additional | Retained | Accumulated | ||||||||||||||||||||||
Common | Paid-in | Earnings | Comprehensive | Treasury | ||||||||||||||||||||
Stock | Capital | (Deficit) | Income | Stock | Total | |||||||||||||||||||
Balance at December 31, 2015 | $ | 33 | $ | 345 | $ | (34,224 | ) | $ | 9,115 | $ | (251,596 | ) | $ | (276,327 | ) | |||||||||
Net income | - | - | 117,121 | - | - | 117,121 | ||||||||||||||||||
Net unrealized gains on | ||||||||||||||||||||||||
securities available for sale, | ||||||||||||||||||||||||
net of income tax expense ($1,857) | - | - | - | 3,111 | - | 3,111 | ||||||||||||||||||
Amounts reclassified from | ||||||||||||||||||||||||
accumulated other | ||||||||||||||||||||||||
comprehensive income, | ||||||||||||||||||||||||
net of income tax benefit ($464) | - | - | - | (791 | ) | - | (791 | ) | ||||||||||||||||
Foreign currency translation | - | - | - | (164 | ) | - | (164 | ) | ||||||||||||||||
Dividends declared ($0.08 per | ||||||||||||||||||||||||
share) | - | - | (2,382 | ) | - | - | (2,382 | ) | ||||||||||||||||
Stock based compensation | ||||||||||||||||||||||||
expense | - | 3,959 | - | - | - | 3,959 | ||||||||||||||||||
Reduction of deferred tax asset for excess of | ||||||||||||||||||||||||
recorded RSA tax benefit over actual tax | ||||||||||||||||||||||||
benefit | - | (401 | ) | - | - | - | (401 | ) | ||||||||||||||||
Purchase of treasury stock | - | - | - | - | (10,773 | ) | (10,773 | ) | ||||||||||||||||
Balance at December 31, 2016 | $ | 33 | $ | 3,903 | $ | 80,515 | $ | 11,271 | $ | (262,369 | ) | $ | (166,647 | ) |
GAMCO Investors, Inc. shareholders | ||||||||||||||||||||||||
Additional | Retained | Accumulated | ||||||||||||||||||||||
Common | Paid-in | Earnings | Comprehensive | Treasury | ||||||||||||||||||||
Stock | Capital | (Deficit) | Income | Stock | Total | |||||||||||||||||||
Balance at December 31, 2016 | $ | 33 | $ | 3,903 | $ | 80,515 | $ | 11,271 | $ | (262,369 | ) | $ | (166,647 | ) | ||||||||||
Net income | - | - | 77,809 | - | - | 77,809 | ||||||||||||||||||
Net unrealized gains on | ||||||||||||||||||||||||
securities available for sale, | ||||||||||||||||||||||||
net of income tax expense ($1,446) | - | - | - | 2,492 | - | 2,492 | ||||||||||||||||||
Amounts reclassified from | ||||||||||||||||||||||||
accumulated other | ||||||||||||||||||||||||
comprehensive income, | ||||||||||||||||||||||||
net of income tax benefit ($1,156) | - | - | - | (1,969 | ) | - | (1,969 | ) | ||||||||||||||||
Foreign currency translation | - | - | - | 82 | - | 82 | ||||||||||||||||||
Dividends declared ($0.08 per | ||||||||||||||||||||||||
share) | - | - | (2,385 | ) | - | - | (2,385 | ) | ||||||||||||||||
Stock based compensation | ||||||||||||||||||||||||
expense | - | 8,669 | - | - | - | 8,669 | ||||||||||||||||||
Purchase of treasury stock | - | - | - | - | (14,324 | ) | (14,324 | ) | ||||||||||||||||
Balance at December 31, 2017 | $ | 33 | $ | 12,572 | $ | 155,939 | $ | 11,876 | $ | (276,693 | ) | $ | (96,273 | ) |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total | |||||||||||||||||||
Balance at December 31, 2018 | $ | 33 | $ | 14,192 | $ | 282,928 | $ | (240 | ) | $ | (287,303 | ) | $ | 9,610 | ||||||||||
Net income | 0 | 0 | 19,892 | 0 | 0 | 19,892 | ||||||||||||||||||
Adoption of ASU 2016-02 | 0 | 0 | (106 | ) | 0 | 0 | (106 | ) | ||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | 20 | 0 | 20 | ||||||||||||||||||
Dividends declared ($0.02 per share) | 0 | 0 | (575 | ) | 0 | 0 | (575 | ) | ||||||||||||||||
Stock based compensation expense | 0 | 577 | 0 | 0 | 0 | 577 | ||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (2,547 | ) | (2,547 | ) | ||||||||||||||||
Balance at March 31, 2019 | $ | 33 | $ | 14,769 | $ | 302,139 | $ | (220 | ) | $ | (289,850 | ) | $ | 26,871 | ||||||||||
Net income | 0 | 0 | 24,017 | 0 | 0 | 24,017 | ||||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | (23 | ) | 0 | (23 | ) | ||||||||||||||||
Dividends declared ($0.02 per share) | 0 | 0 | (551 | ) | 0 | 0 | (551 | ) | ||||||||||||||||
Stock based compensation expense | 0 | 578 | 0 | 0 | 0 | 578 | ||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (28,274 | ) | (28,274 | ) | ||||||||||||||||
Balance at June 30, 2019 | $ | 33 | $ | 15,347 | $ | 325,605 | $ | (243 | ) | $ | (318,124 | ) | $ | 22,618 | ||||||||||
Net income | 0 | 0 | 13,626 | 0 | 0 | 13,626 | ||||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | (28 | ) | 0 | (28 | ) | ||||||||||||||||
Dividends declared ($0.02 per share) | 0 | 0 | (551 | ) | 0 | 0 | (551 | ) | ||||||||||||||||
Stock based compensation expense | 0 | 843 | 0 | 0 | 0 | 843 | ||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (3,790 | ) | (3,790 | ) | ||||||||||||||||
Balance at September 30, 2019 | $ | 33 | $ | 16,190 | $ | 338,680 | $ | (271 | ) | $ | (321,914 | ) | $ | 32,718 | ||||||||||
Net income | 0 | 0 | 24,382 | 0 | 0 | 24,382 | ||||||||||||||||||
Foreign currency translation | 0 | 0 | 0 | 67 | 0 | 67 | ||||||||||||||||||
Dividends declared ($0.02 per share) | 0 | 0 | (547 | ) | 0 | 0 | (547 | ) | ||||||||||||||||
Stock based compensation expense | 0 | 843 | 0 | 0 | 0 | 843 | ||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (2,746 | ) | (2,746 | ) | ||||||||||||||||
Balance at December 31, 2019 | $ | 33 | $ | 17,033 | $ | 362,515 | $ | (204 | ) | $ | (324,660 | ) | $ | 54,717 |
GAMCO Investors, Inc. shareholders | ||||||||||||||||||||||||
Additional | Retained | Accumulated | ||||||||||||||||||||||
Common | Paid-in | Earnings | Comprehensive | Treasury | ||||||||||||||||||||
Stock | Capital | (Deficit) | Income | Stock | Total | |||||||||||||||||||
Balance at December 31, 2017 | $ | 33 | $ | 12,572 | $ | 155,939 | $ | 11,876 | $ | (276,693 | ) | $ | (96,273 | ) | ||||||||||
Net income | - | - | 117,196 | - | - | 117,196 | ||||||||||||||||||
Reclassification pursuant to adoption of ASU | ||||||||||||||||||||||||
2016-01, net of tax ($7,095) | - | - | 12,110 | (12,110 | ) | - | - | |||||||||||||||||
Foreign currency translation | - | - | - | (6 | ) | - | (6 | ) | ||||||||||||||||
Dividends declared ($0.08 per | ||||||||||||||||||||||||
share) | - | - | (2,317 | ) | - | - | (2,317 | ) | ||||||||||||||||
Stock based compensation | ||||||||||||||||||||||||
expense | - | 1,620 | - | - | - | 1,620 | ||||||||||||||||||
Purchase of treasury stock | - | - | - | - | (10,610 | ) | (10,610 | ) | ||||||||||||||||
Balance at December 31, 2018 | $ | 33 | $ | 14,192 | $ | 282,928 | $ | (240 | ) | $ | (287,303 | ) | $ | 9,610 |
Year Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2020 | 2019 | ||||||||||||||||
Operating activities | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 117,196 | $ | 77,809 | $ | 117,121 | $ | 58,693 | $ | 81,917 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 562 | 595 | 625 | 973 | 1,222 | |||||||||||||||
Accretion of discounts and amortization of premiums | 53 | 34 | ||||||||||||||||||
Stock based compensation expense | 1,620 | 8,669 | 3,959 | 4,186 | 2,841 | |||||||||||||||
Deferred income taxes | (487 | ) | (5,451 | ) | (5,537 | ) | 7,904 | (4,777 | ) | |||||||||||
Foreign currency translation gain/(loss) | (6 | ) | 82 | (164 | ) | |||||||||||||||
Donated securities | 325 | 1,124 | 499 | |||||||||||||||||
Unrealized on available for sale securities | 18,632 | - | - | |||||||||||||||||
Gains on sales of available for sale securities | - | (62 | ) | (4 | ) | |||||||||||||||
Loss on extinguishment of debt | - | 3,300 | - | |||||||||||||||||
Foreign currency translation gain | 39 | 35 | ||||||||||||||||||
Cost basis of donated securities | 0 | 2,601 | ||||||||||||||||||
Unrealized loss on securities | 6,154 | 4,717 | ||||||||||||||||||
Net realized loss on securities | 1,555 | 74 | ||||||||||||||||||
Impairment charge on intangible asset | 589 | 0 | ||||||||||||||||||
(Increase) decrease in assets: | ||||||||||||||||||||
Investments in trading securities | (13,568 | ) | 8 | 186 | ||||||||||||||||
Receivable from affiliates | 1,532 | 329 | (927 | ) | ||||||||||||||||
Investments in securities | (12 | ) | (3,154 | ) | ||||||||||||||||
Receivable from brokers | (1,845 | ) | (1,125 | ) | 638 | (4,844 | ) | 2,434 | ||||||||||||
Investment advisory fees receivable | 13,035 | 5,024 | (12,688 | ) | 7,297 | (10,416 | ) | |||||||||||||
Income tax receivable and deferred tax assets | 615 | (1,105 | ) | (2,562 | ) | |||||||||||||||
Receivable from affiliates | (938 | ) | 257 | |||||||||||||||||
Income taxes receivable | (977 | ) | (1,388 | ) | ||||||||||||||||
Other assets | 234 | (73 | ) | (69 | ) | (1,736 | ) | (2,037 | ) | |||||||||||
Increase (decrease) in liabilities: | ||||||||||||||||||||
Payable to affiliates | 186 | (557 | ) | (6,275 | ) | |||||||||||||||
Payable to brokers | (698 | ) | (990 | ) | 54 | 0 | (112 | ) | ||||||||||||
Income taxes payable | (252 | ) | (689 | ) | 2,768 | 3,152 | 3,145 | |||||||||||||
Compensation payable | (22,496 | ) | 40,517 | 17,969 | (42,738 | ) | 3,869 | |||||||||||||
Payable to affiliates | (139 | ) | 2,941 | |||||||||||||||||
Accrued expenses and other liabilities | 3,297 | (714 | ) | 144 | 1,523 | 5,788 | ||||||||||||||
Total adjustments | 686 | 48,882 | (1,384 | ) | (17,959 | ) | 8,074 | |||||||||||||
Net cash provided by operating activities | $ | 117,882 | $ | 126,691 | $ | 115,737 | 40,734 | 89,991 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of securities | (120,724 | ) | (5,084 | ) | ||||||||||||||||
Proceeds from sales of securities | 57,189 | 314 | ||||||||||||||||||
Return of capital on securities | 24 | 14 | ||||||||||||||||||
Net cash used in investing activities | (63,511 | ) | (4,756 | ) | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Dividends paid | (25,906 | ) | (2,756 | ) | ||||||||||||||||
Purchase of treasury stock | (3,902 | ) | (37,357 | ) | ||||||||||||||||
Repayment of principal portion of lease liability | (218 | ) | (180 | ) | ||||||||||||||||
Net cash used in financing activities | (30,026 | ) | (40,293 | ) | ||||||||||||||||
Effect of exchange rates on cash and cash equivalents | (8 | ) | (8 | ) | ||||||||||||||||
Net increase in cash and cash equivalents | (52,811 | ) | 44,934 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 86,136 | 41,202 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 33,325 | $ | 86,136 | ||||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash paid for interest | $ | 2,581 | $ | 2,539 | ||||||||||||||||
Cash paid for taxes | $ | 16,546 | $ | 26,874 | ||||||||||||||||
Supplemental disclosure of non-cash activity: |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Investing activities | ||||||||||||
Purchases of available for sale securities | $ | (2,388 | ) | $ | (3,932 | ) | $ | (1,843 | ) | |||
Proceeds from sales of available for sale securities | - | 4,169 | 408 | |||||||||
Net cash provided by (used in) investing activities | (2,388 | ) | 237 | (1,435 | ) | |||||||
Financing activities | ||||||||||||
Dividends paid | (2,328 | ) | (2,315 | ) | (2,333 | ) | ||||||
Purchase of treasury stock | (10,610 | ) | (14,324 | ) | (10,773 | ) | ||||||
Repurchases of AC 4% PIK Note due November 30, 2020 | (50,000 | ) | (50,000 | ) | (150,000 | ) | ||||||
Proceeds from 4.5% Convertible note due August 15, 2021 | - | - | 109,826 | |||||||||
Repayment of 4.5% Convertible note due August 15, 2021 | - | (113,300 | ) | - | ||||||||
Repayment of GGCP loan due December 28, 2016 | - | - | (35,000 | ) | ||||||||
Repayment of AC 1.6% Note due February 28, 2018 | (15,000 | ) | - | - | ||||||||
Proceeds from AC 1.6% Note due February 28, 2018 | - | 15,000 | - | |||||||||
Margin loan borrowings | 11,000 | 20,850 | - | |||||||||
Margin loan repayments | (25,115 | ) | (5,000 | ) | - | |||||||
Amortization of debt issuance costs | 24 | 187 | 33 | |||||||||
Net cash used in financing activities | (92,029 | ) | (148,902 | ) | (88,247 | ) | ||||||
Effect of exchange rates on cash and cash equivalents | (84 | ) | (17 | ) | 38 | |||||||
Net increase (decrease) in cash and cash equivalents | 23,381 | (21,991 | ) | 26,093 | ||||||||
Cash and cash equivalents at beginning of period | 17,821 | 39,812 | 13,719 | |||||||||
Cash and cash equivalents at end of period | $ | 41,202 | $ | 17,821 | $ | 39,812 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 3,622 | $ | 12,180 | $ | 11,274 | ||||||
Cash paid for taxes | $ | 36,400 | $ | 62,259 | $ | 75,238 |
Twelve Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2020 | 2019 | |||||||||||||
Advisory Fees: | ||||||||||||||||
Investment advisory and incentive fees: | ||||||||||||||||
Open-end Funds | $ | 122,804 | $ | 130,543 | $ | 88,884 | $ | 105,975 | ||||||||
Closed-end Funds | 67,418 | 64,198 | 64,221 | 65,569 | ||||||||||||
Sub-advisory accounts | 4,479 | 3,434 | 2,313 | 3,494 | ||||||||||||
Institutional & Private Wealth Management | 99,180 | 104,760 | 64,290 | 83,814 | ||||||||||||
SICAVs | 5,625 | 4,628 | 4,996 | 5,742 | ||||||||||||
Performance-based | 1,495 | 9,142 | 8,924 | 14,496 | ||||||||||||
Conditional | 1,650 | - | ||||||||||||||
Distribution and other income | 38,804 | 43,819 | ||||||||||||||
Distribution fees and other income | 26,098 | 33,278 | ||||||||||||||
Total revenues | $ | 341,455 | $ | 360,524 | $ | 259,726 | $ | 312,368 |
2018 | 2017 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | Cost | Estimated Fair Value | Cost | Estimated Fair Value | ||||||||||||||||||||||||||
Securities carried at FVTNI: | Trading securities: | ||||||||||||||||||||||||||||||||
Investments in securities: | |||||||||||||||||||||||||||||||||
Common stocks | $ | 38,865 | $ | 32,414 | Common stocks | $ | 26 | $ | 34 | $ | 41,341 | $ | 19,099 | $ | 41,226 | $ | 26,463 | ||||||||||||||||
Open-end funds | 5,757 | 6,128 | 755 | 752 | |||||||||||||||||||||||||||||
Closed-end funds | 1,414 | 1,337 | Closed-end funds | - | - | 628 | 618 | 494 | 511 | ||||||||||||||||||||||||
Mutual funds | 44 | 38 | Mutual funds | 11 | 11 | ||||||||||||||||||||||||||||
Total securities at FVTNI | 40,323 | 33,789 | Total trading securities | 37 | 45 | ||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||
Common stocks | 17,441 | 36,637 | |||||||||||||||||||||||||||||||
Closed-end funds | 99 | 108 | |||||||||||||||||||||||||||||||
Total available for sale securities | 17,540 | 36,745 | |||||||||||||||||||||||||||||||
Total investments in securities | $ | 40,323 | $ | 33,789 | Total investments in securities | $ | 17,577 | $ | 36,790 | $ | 47,726 | $ | 25,845 | $ | 42,475 | $ | 27,726 |
December 31, 2020 | ||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Estimated Fair Value | |||||||||||||
Short-term investments in U.S. Treasury Bills: | ||||||||||||||||
U.S. Treasury Bills | $ | 64,988 | $ | 6 | $ | 0 | $ | 64,994 | ||||||||
Total short-term investments in U.S. Treasury Bills | $ | 64,988 | $ | 6 | $ | 0 | $ | 64,994 |
December 31, 2019 | ||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Estimated Fair Value | |||||||||||||
Investments in fixed maturity securities: | ||||||||||||||||
U.K. Gilts | $ | 6,547 | $ | 0 | $ | 0 | $ | 6,547 | ||||||||
Total investments in fixed maturity securities | $ | 6,547 | $ | 0 | $ | 0 | $ | 6,547 |
December 31, 2020 | December 31, 2019 | |||||||||||||||
Cost | Estimated Fair Value | Cost | Estimated Fair Value | |||||||||||||
Investments in equity securities: | ||||||||||||||||
Common stocks | $ | 728 | $ | 799 | $ | 0 | $ | 0 | ||||||||
Total securities sold, not yet purchased | $ | 728 | $ | 799 | $ | 0 | $ | 0 |
Amount | Affected Line Item in | Reason for | ||||
Reclassified | in the Statements | Reclassification | ||||
from AOCI | Of Income | from AOCI | ||||
For the year ended | ||||||
December 31, 2017 | ||||||
$ | 62 | Net gain from investments | Realized gain on sale of AFS securities | |||
3,063 | Other operating expenses | Donation of AFS securities | ||||
3,125 | Income before income taxes | |||||
(1,156 | ) | Income tax provision | ||||
$ | 1,969 | Net income |
December 31, 2017 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Common stocks | $ | 17,441 | $ | 19,196 | $ | - | $ | 36,637 | ||||||||
Closed-end funds | 99 | 9 | - | 108 | ||||||||||||
Total available for sale securities | $ | 17,540 | $ | 19,205 | $ | - | $ | 36,745 |
- | Level 1 - the valuation methodology utilizes quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. Level 1 assets include cash equivalents, government obligations, open-end funds, closed-end funds, and listed equities. |
- | Level 2 - the valuation methodology utilizes inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities that are not active and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly-quoted intervals. |
- | Level 3 - the valuation methodology utilizes unobservable inputs for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability. |
Quoted Prices in Active | Significant Other | Significant | Balance as of | |||||||||||||||||||||||||||||
Markets for Identical | Observable | Unobservable | December 31, | |||||||||||||||||||||||||||||
Assets | Assets (Level 1) | Inputs (Level 2) | Inputs (Level 3) | 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2020 | ||||||||||||||||||||||||
Cash equivalents | $ | 40,905 | $ | - | $ | - | $ | 40,905 | $ | 32,661 | $ | 0 | $ | 0 | $ | 32,661 | ||||||||||||||||
Investments in securities: | ||||||||||||||||||||||||||||||||
Common stocks | 32,414 | - | - | 32,414 | 19,099 | 0 | 0 | 19,099 | ||||||||||||||||||||||||
Open-end Funds | 6,128 | 0 | 0 | 6,128 | ||||||||||||||||||||||||||||
Closed-end Funds | 38 | - | - | 38 | 618 | 0 | 0 | 618 | ||||||||||||||||||||||||
Mutual Funds | 1,337 | - | - | 1,337 | ||||||||||||||||||||||||||||
Total investments in securities | 33,789 | - | - | 33,789 | 25,845 | 0 | 0 | 25,845 | ||||||||||||||||||||||||
Total assets at fair value | $ | 74,694 | $ | - | $ | - | $ | 74,694 | $ | 58,506 | $ | 0 | $ | 0 | $ | 58,506 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Securities sold, not yet purchased: | ||||||||||||||||||||||||||||||||
Trading - Common stocks | $ | 799 | $ | 0 | $ | 0 | $ | 799 | ||||||||||||||||||||||||
Total securities sold, not yet purchased | $ | 799 | $ | 0 | $ | 0 | $ | 799 |
Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2019 | ||||||||||||
Cash equivalents | $ | 85,823 | $ | 0 | $ | 0 | $ | 85,823 | ||||||||
Investments in securities: | ||||||||||||||||
Common stocks | 26,463 | 0 | 0 | 26,463 | ||||||||||||
Closed-end Funds | 511 | 0 | 0 | 511 | ||||||||||||
Open-end Funds | 752 | 0 | 0 | 752 | ||||||||||||
Total investments in securities | 27,726 | 0 | 0 | 27,726 | ||||||||||||
Total assets at fair value | $ | 113,549 | $ | 0 | $ | 0 | $ | 113,549 |
Quoted Prices in Active | Significant Other | Significant | Balance as of | |||||||||||||
Markets for Identical | Observable | Unobservable | December 31, | |||||||||||||
Assets | Assets (Level 1) | Inputs (Level 2) | Inputs (Level 3) | 2017 | ||||||||||||
Cash equivalents | $ | 17,475 | $ | - | $ | - | $ | 17,475 | ||||||||
Investments in securities: | ||||||||||||||||
AFS - Common stocks | 36,637 | - | - | 36,637 | ||||||||||||
AFS - Closed-end Funds | 108 | - | - | 108 | ||||||||||||
Trading - Common stocks | 34 | - | - | 34 | ||||||||||||
Trading - Mutual Funds | 11 | - | - | 11 | ||||||||||||
Total investments in securities | 36,790 | - | - | 36,790 | ||||||||||||
Total assets at fair value | $ | 54,265 | $ | - | $ | - | $ | 54,265 |
December 31, 2020 | December 31, 2019 | |||||||||||||||
Carrying Value | Fair Value Level 1 | Carrying Value (1) | Fair Value Level 1 | |||||||||||||
U.S. Treasury Bills | $ | 64,988 | $ | 64,994 | $ | 0 | $ | 0 | ||||||||
U.K. Gilts | 0 | 0 | 6,547 | 6,547 | ||||||||||||
Total | $ | 64,988 | $ | 64,994 | $ | 6,547 | $ | 6,547 |
(1) | Amortized cost at December 31, 2019 prior to remeasurement in U.S. dollars was $6,343. |
December 31, 2020 | December 31, 2019 | |||||||||||||||
Carrying Value | Fair Value Level 2 | Carrying Value | Fair Value Level 2 | |||||||||||||
5.875% Senior notes | $ | 24,215 | $ | 24,554 | $ | 24,191 | $ | 24,815 | ||||||||
Total | $ | 24,215 | $ | 24,554 | $ | 24,191 | $ | 24,815 |
2018 | 2017 | 2016 | 2020 | 2019 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Federal: | ||||||||||||||||||||
Current | $ | 32,979 | $ | 54,318 | $ | 63,991 | $ | 16,338 | $ | 26,369 | ||||||||||
Deferred | (604 | ) | (3,670 | ) | (4,424 | ) | 5,763 | (4,350 | ) | |||||||||||
State and local: | ||||||||||||||||||||
Current | 4,971 | 6,212 | 6,652 | 749 | 5,149 | |||||||||||||||
Deferred | 117 | (1,781 | ) | (1,113 | ) | 2,141 | (427 | ) | ||||||||||||
Total | $ | 37,463 | $ | 55,079 | $ | 65,106 | $ | 24,991 | $ | 26,741 |
2018 | 2017 | 2016 | 2020 | 2019 | ||||||||||||
Statutory Federal income tax rate | 21.0 | % | 35.0 | % | 35.0 | % | 21.0 | % | 21.0 | % | ||||||
State income tax, net of Federal benefit | 2.6 | 0.5 | 1.0 | 2.7 | 4.0 | |||||||||||
Impact of Tax Act | - | 6.2 | - | |||||||||||||
Section 162(m) limitation | 6.2 | 0.4 | ||||||||||||||
Other | 0.6 | (0.3) | (0.3) | 0 | (0.8 | ) | ||||||||||
Effective income tax rate | 24.2 | % | 41.4 | % | 35.7 | % | 29.9 | % | 24.6 | % |
2018 | 2017 | 2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
Deferred tax assets: | ||||||||||||||||
Investments in securities | $ | 1,567 | $ | - | $ | 5,655 | $ | 3,536 | ||||||||
Stock compensation expense | 344 | 110 | 2,030 | 1,026 | ||||||||||||
Deferred compensation | 8,830 | 14,740 | 400 | 11,069 | ||||||||||||
Capital lease obligation | 648 | 633 | 661 | 655 | ||||||||||||
Other | 211 | 238 | 0 | 224 | ||||||||||||
Total deferred tax assets | 11,600 | 15,721 | 8,746 | 16,510 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Investments in securities available for sale | - | (4,609 | ) | |||||||||||||
Intangible asset amortization | (353 | ) | (394 | ) | ||||||||||||
Contingent deferred sales commissions | (107 | ) | (189 | ) | (85 | ) | (154 | ) | ||||||||
Intangible asset amortization | (313 | ) | (233 | ) | ||||||||||||
Other | (13 | ) | (10 | ) | (267 | ) | (17 | ) | ||||||||
Total deferred tax liabilities | (433 | ) | (5,041 | ) | (705 | ) | (565 | ) | ||||||||
Net deferred tax assets (liabilities) | $ | 11,167 | $ | 10,680 | ||||||||||||
Net deferred tax assets | $ | 8,041 | $ | 15,945 |
(in millions) | ||||||||
Balance at December 31, 2015 | $ | 18.4 | ||||||
Balance at December 31, 2018 | $ | 14.2 | ||||||
Additions based on tax positions related to the current year | 2.3 | 1.5 | ||||||
Additions for tax positions of prior years | 1.2 | 1.4 | ||||||
Reductions for tax positions of prior years | (6.9 | ) | (0.8 | ) | ||||
Settlements | - | |||||||
Balance at December 31, 2016 | 15.0 | |||||||
Balance at December 31, 2019 | 16.3 | |||||||
Additions based on tax positions related to the current year | 2.2 | 0.5 | ||||||
Additions for tax positions of prior years | - | 0 | ||||||
Reductions for tax positions of prior years | (3.9 | ) | (1.5 | ) | ||||
Settlements | - | |||||||
Balance at December 31, 2017 | 13.3 | |||||||
Additions based on tax positions related to the current year | 1.8 | |||||||
Additions for tax positions of prior years | - | |||||||
Reductions for tax positions of prior years | (0.9 | ) | ||||||
Settlements | - | |||||||
Balance at December 31, 2018 | $ | 14.2 | ||||||
Balance at December 31, 2020 | $ | 15.3 |
For the Years Ending December 31, | ||||||||||||
(In thousands, except per share amounts) | 2018 | 2017 | 2016 | |||||||||
Basic: | ||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | $ | 117,196 | $ | 77,809 | $ | 117,121 | ||||||
Weighted average shares outstanding | 28,744 | 28,980 | 29,182 | |||||||||
Basic net income per share attributable to GAMCO | ||||||||||||
Investors, Inc.'s shareholders | $ | 4.08 | $ | 2.68 | $ | 4.01 | ||||||
Diluted: | ||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders | $ | 117,196 | $ | 77,809 | $ | 117,121 | ||||||
Add interest on convertible notes, net of management fee and taxes | - | 2,604 | 1,133 | |||||||||
Total income attributable to GAMCO Investors, Inc.'s shareholders | 117,196 | 80,413 | 118,254 | |||||||||
Weighted average share outstanding | 28,744 | 28,980 | 29,182 | |||||||||
Restricted stock awards | 33 | 192 | 234 | |||||||||
Assumed conversion of convertible note | - | 1,775 | 754 | |||||||||
Total | 28,777 | 30,947 | 30,170 | |||||||||
Diluted net income per share attributable to GAMCO | ||||||||||||
Investors, Inc.'s shareholders | $ | 4.07 | $ | 2.60 | $ | 3.92 |
Years Ending December 31, | ||||||||
2020 | 2019 | |||||||
Basic: | ||||||||
Net income | $ | 58,693 | $ | 81,917 | ||||
Weighted average shares outstanding | 26,571 | 27,407 | ||||||
Basic net income per share | $ | 2.21 | $ | 2.99 | ||||
Diluted: | ||||||||
Net income | $ | 58,693 | $ | 81,917 | ||||
Weighted average share outstanding | 26,571 | 27,407 | ||||||
Restricted stock awards | 109 | 72 | ||||||
Total | 26,680 | 27,479 | ||||||
Diluted net income per share | $ | 2.20 | $ | 2.98 |
December 31, 2018 | December 31, 2017 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Value | Level 2 | Value | Level 2 | |||||||||||||
(In thousands) | ||||||||||||||||
AC 4% PIK Note | $ | - | $ | - | $ | 50,000 | $ | 50,572 | ||||||||
AC 1.6% Note | - | - | 15,000 | 14,972 | ||||||||||||
5.875% Senior notes | 24,168 | 23,061 | 24,144 | 24,543 | ||||||||||||
Total | $ | 24,168 | $ | 23,061 | $ | 89,144 | $ | 90,087 |
Options | RSAs | |||||||||||||||
Weighted Average | ||||||||||||||||
Weighted Average | Grant Date | |||||||||||||||
Shares | Exercise Price | Shares | Fair Value | |||||||||||||
Outstanding at December 31, 2016 | - | $ | - | 424,340 | $ | 65.74 | ||||||||||
Granted | - | - | - | - | ||||||||||||
Forfeited | - | - | (4,500 | ) | 78.62 | |||||||||||
Exercised / Vested | - | - | (400,440 | ) | 65.60 | |||||||||||
Outstanding at December 31, 2017 | - | - | 19,400 | 65.67 | ||||||||||||
Granted | 10,000 | 25.55 | 437,950 | 24.93 | ||||||||||||
Forfeited | - | - | (10,300 | ) | 24.81 | |||||||||||
Exercised / Vested | - | - | (19,400 | ) | 65.67 | |||||||||||
Outstanding at December 31, 2018 | 10,000 | $ | 25.55 | 427,650 | $ | 24.93 | ||||||||||
Shares available for future issuance at | ||||||||||||||||
December 31, 2018 | 1,087,717 |
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||||
$ | 1,620 | $ | 2,310 | $ | 2,310 | $ | 1,695 | $ | 1,319 | $ | 499 |
Years Ended December 31, | ||||||||
2019 | 2018 | |||||||
Finance lease cost - interest expense | $ | 1,062 | $ | 1,076 | ||||
Finance lease cost - amortization of right-of-use asset | 267 | 267 | ||||||
Operating lease cost | 387 | 683 | ||||||
Sublease income | (184 | ) | (485 | ) | ||||
Total lease cost | $ | 1,532 | $ | 1,541 | ||||
Other information: | ||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows from finance lease | $ | 0 | $ | 0 | ||||
Operating cash flows from operating leases | 328 | 725 | ||||||
Financing cash flows from finance lease | 218 | 180 | ||||||
Total cash paid for amounts included in the measurement of lease liabilities | $ | 546 | $ | 905 | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 324 | 1,431 | |||||
Weighted average remaining lease term—finance lease (years) | 8.0 | 9.3 | ||||||
Weighted average remaining lease term—operating leases (years) | 2.2 | 2.8 | ||||||
Weighted average discount rate—finance lease | 19.1 | % | 19.1 | % | ||||
Weighted average discount rate—operating leases | 5.0 | % | 5.0 | % |
(In thousands) | ||||
2019 | $ | 1,253 | ||
2020 | 1,080 | |||
2021 | 1,080 | |||
2022 | 1,080 | |||
2023 | 1,080 | |||
Thereafter | 5,400 | |||
Total minimum obligations | 10,973 | |||
Interest | 6,166 | |||
Present value of net obligations | $ | 4,807 |
Year ending December 31, | Finance Leases | Operating Leases | Total Leases | |||||||||
2021 | $ | 1,294 | $ | 473 | $ | 1,767 | ||||||
2022 | 1,080 | 281 | 1,361 | |||||||||
2023 | 1,080 | 185 | 1,265 | |||||||||
2024 | 1,080 | 61 | 1,141 | |||||||||
2025 | 1,080 | 0 | 1,080 | |||||||||
Thereafter | 3,240 | 0 | 3,240 | |||||||||
Total lease payments | $ | 8,854 | $ | 1,000 | $ | 9,854 | ||||||
Less imputed interest | (4,351 | ) | (62 | ) | (4,413 | ) | ||||||
Total lease liabilities | $ | 4,503 | $ | 938 | $ | 5,441 |
(In thousands) | ||||
2019 | $ | 616 | ||
2020 | 121 | |||
2021 | 68 | |||
2022 | 4 | |||
Total | $ | 809 |
2018 | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||||||
Revenues | $ | 87,497 | $ | 87,193 | $ | 85,788 | $ | 80,977 | $ | 341,455 | ||||||||||
Operating income | 41,256 | 41,373 | 51,700 | 52,458 | 186,787 | |||||||||||||||
Net income attributable to GAMCO | ||||||||||||||||||||
Investors, Inc.'s shareholders | 27,261 | 31,582 | 35,016 | 23,337 | 117,196 | |||||||||||||||
Net income attributable to GAMCO | ||||||||||||||||||||
Investors, Inc.'s shareholders per share: | ||||||||||||||||||||
Basic | 0.94 | 1.10 | 1.22 | 0.82 | 4.08 | |||||||||||||||
Diluted | $ | 0.94 | $ | 1.10 | $ | 1.22 | $ | 0.81 | $ | 4.07 |
2017 | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||||||
Revenues | $ | 85,917 | $ | 87,600 | $ | 88,341 | $ | 98,666 | $ | 360,524 | ||||||||||
Operating income | 42,443 | 39,660 | 23,393 | 39,524 | 145,020 | |||||||||||||||
Net income attributable to GAMCO | ||||||||||||||||||||
Investors, Inc.'s shareholders | 24,820 | 22,894 | 16,600 | 13,495 | 77,809 | |||||||||||||||
Net income attributable to GAMCO | ||||||||||||||||||||
Investors, Inc.'s shareholders per share: | ||||||||||||||||||||
Basic | 0.86 | 0.79 | 0.57 | 0.46 | 2.68 | |||||||||||||||
Diluted | $ | 0.82 | $ | 0.76 | $ | 0.55 | $ | 0.46 | $ | 2.60 |
Exhibit Number | Description of Exhibit | |
2.1 | ||
Separation and Distribution Agreement, dated November 30, 2015, by and between GAMCO Investors, Inc. (the “Company”) and Associated Capital Group, | ||
3.1 | Amended and Restated Certificate of Incorporation of the Company (Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K dated November 20, 2013 filed with the | |
3.2 | Amended and Restated Bylaws of the | |
3.3 | Amendment No. 1 to Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.3 to the Company’s Report on Form 8-K dated September 23, 2014 filed with the | |
3.4 | Amendment No. 2 to Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.4 to the Company’s Report on Form 8-K dated February 20, 2020 filed with the SEC on February 21, 2020). |
4.1 | Form of Common Stock | |
4.2 | Indenture, dated as of December 31, 2010, by and between the Company and Computershare Trust Company, N.A., as Trustee (includes form of 0% Subordinated Debenture due 2015). (Incorporated by reference to Exhibit 4.1 to the Company's Report on Form 8-K dated December 31, 2010 filed with the |
4.3 | First Supplemental Indenture, dated as of November 22, 2013, by and between the Company and, Computershare Trust Company, N.A. as | |
4.4 | Indenture, dated as of February 6, 2002, by and between the Company and The Bank of New York, as | |
4.5 | Second Supplemental Indenture, dated May 31, 2011, by and between the Company and The Bank of New York Mellon, as Trustee (includes form of 5.875% Senior Notes due 2021). (Incorporated by reference to Exhibit 4.1 to the Company's Report on Form 8-K dated May 25, 2011 filed with the | |
4.6 | Third Supplemental Indenture, dated November 22, 2013, by and between the Company and The Bank of New York Mellon, as | |
4.7 | Convertible Promissory Note, dated August 15, 2016, issued by the Company to Cascade Investment, | |
4.8 | Irrevocable Standby Letter of Credit Agreement No. 1, dated August 15, 2016, issued by the Company in favor of GGCP, | |
4.9 | Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. (Incorporated by reference to Exhibit 4.9 to the Company's Report on Form 10-K filed with the SEC on March 6, 2020). | |
10.1 | Tax Indemnification Agreement between the Company and Gabelli Funds, Inc. (Incorporated by reference to Exhibit 10.2 to Amendment No. 3 to the Company's Registration Statement on Form S-1 (File No. 333-51023) filed with the | |
10.2 | The Company's 2002 Stock Award and Incentive Plan (Incorporated by reference to Exhibit A to the Company's definitive proxy statement on Schedule 14A filed with the |
10.3 | First Amendment to the Company’s 2002 Stock Award and Incentive Plan (Incorporated by reference to Annex D to the Company’s definitive proxy statement on Schedule 14A filed with the | |
10.4 | Second Amendment to the Company’s 2002 Stock Award and Incentive Plan (Incorporated by reference to Exhibit A to the Company’s definitive proxy statement on Schedule 14A filed with the | |
10.5 | Third Amendment to the Company’s 2002 Stock Award and Incentive Plan (Incorporated by reference to Exhibit A to the Company’s definitive proxy statement on Schedule 14A filed with the | |
10.6 | Employment Agreement, dated February 6, 2008, by and between the Company and Mario J. Gabelli |
10.7 | Service Mark and Name License Agreement, dated November 30, 2015, by and between the Company and Associated Capital Group, | |
10.8 | Transitional Administrative and Management Services Agreement, dated November 30, 2015, by and between the Company and Associated Capital Group, | |
10.9 | Promissory note, dated November 30, 2015, issued by the Company to Associated Capital Group, | |
10.10 | Tax Indemnity and Sharing Agreement, dated November 30, 2015, by and between GAMCO Investors, Inc. and Associated Capital Group, | |
10.11 | Restricted Stock Unit Agreement, dated December 21, 2015, by and between the Company and Mario J. | |
10.12 | Note Purchase Agreement, dated August 15, 2016, by and among Cascade Investment, L.L.C., the Company, Mario J. Gabelli and GGCP, | |
10.13 | Registration Rights Agreement, dated August 15, 2016, by and between Cascade Investment, L.L.C. and the |
10.14 | Escrow Agreement, dated August 15, 2016, by and among the Company, GGCP, Inc., Cascade Investment, L.L.C. and JPMorgan Chase Bank, National | |
10.15 | Restricted Stock Unit Agreement, dated December 23, 2016, by and between the Company and Mario J. | |
10.16 | Restricted Stock Unit Agreement, dated September 30, 2017, by and between the Company and Mario J. Gabelli. (Incorporated by reference to Exhibit 99.1 to the Company’s Report on Form 8-K dated September 30, 2017 filed with the | |
10.17 | Promissory Note, dated December 28, 2015 issued by the Company to GGCP, |
10.18 | License Agreement, dated February 9, 1999, by and among the Company, Gabelli International Limited, Gabelli International II Limited, Gabelli Fund, LDC, and Gabelli Performance Partnership, L.P. and MJG Associates, Inc. (Incorporated by reference to Exhibit 10.14 to the Company’s Form 10-K for the year ended December 31, 2015 filed with the | |
Subsidiaries of the Company. | ||
Consent of Independent Registered Public Accounting Firm. | ||
24.1 | Powers of Attorney (included on page | |
Certification of CEO pursuant to Rule 13a-14(a). | ||
Certification of | ||
Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification of | ||
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
By: /s/ Kieran Caterina | ||
Name: Kieran Caterina | ||
Title: | ||
Date: March |
Signature | Title | Date | ||
/s/ Mario J. Gabelli | Chairman of the Board, | March | ||
Mario J. Gabelli | Chief Executive Officer | |||
(Principal Executive Officer) | ||||
and Director | ||||
/s/ Kieran Caterina | March | |||
Kieran Caterina | ||||
(Principal Financial Officer) | ||||
/s/ Edwin L. Artzt | Director | March | ||
Edwin L. Artzt | ||||
/s/ Raymond C. Avansino, Jr. | Director | March | ||
Raymond C. Avansino, Jr. | ||||
/s/ Leslie B. Daniels | Director | March | ||
Leslie B. Daniels | ||||
/s/ Eugene R. McGrath | Director | March | ||
Eugene R. McGrath | ||||
/s/ Robert S. Prather, Jr. | Director | March | ||
Robert S. Prather, Jr. | ||||
/s/ Elisa M. Wilson | Director | March | ||
Elisa M. Wilson |