☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ASSOCIATED CAPITAL GROUP, INC. |
(Exact name of Registrant as specified in its charter) |
Delaware | 47-3965991 | |
(State of other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
191 Mason Street, Greenwich, CT | 06830 | |
(Address of principle executive offices) | (Zip Code) |
(203) 629-9595 |
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Class A Common Stock, par value $0.001 per share | AC | New York Stock Exchange |
Large accelerated filer ☐ | Accelerated filer ☒ | ||
Non-accelerated filer ☐ | Smaller reporting company ☒ | Emerging growth company ☒ |
Class | Outstanding at October | |
Class A Common Stock, .001 par value | ||
Class B Common Stock, .001 par value |
PART I. | FINANCIAL INFORMATION | Page |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | OTHER INFORMATION * | |
Item 1. | ||
Item 2. | ||
Item 6. | ||
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 350,934 | $ | 409,564 | $ | 47,331 | $ | 342,001 | ||||||||
Investments in securities | 245,063 | 179,011 | ||||||||||||||
Investment in GBL stock (3,016,501 shares) | 58,973 | 50,949 | ||||||||||||||
Investments in government securities (a) | 330,942 | 29,037 | ||||||||||||||
Investments in equity securities (Including GBL stock with a value of $34.0 million and $57.2 million, respectively) (a) | 213,586 | 271,320 | ||||||||||||||
Investments in affiliated registered investment companies | 152,453 | 142,135 | 146,391 | 159,311 | ||||||||||||
Investments in partnerships | 143,658 | 118,729 | 127,965 | 145,372 | ||||||||||||
Receivable from brokers | 23,702 | 24,629 | 21,065 | 23,141 | ||||||||||||
Investment advisory fees receivable | 1,287 | 4,394 | 1,160 | 9,582 | ||||||||||||
Receivable from affiliates | 738 | 1,309 | 588 | 4,369 | ||||||||||||
Deferred tax assets, net | 4,403 | 9,422 | ||||||||||||||
Goodwill and intangible assets | 3,519 | 3,519 | ||||||||||||||
Deferred tax assets and taxes receivable (including taxes receivable of $2,132 in 2020 and $0 for 2019) | 10,059 | 1,820 | ||||||||||||||
Goodwill | 3,519 | 3,519 | ||||||||||||||
Other assets | 8,395 | 10,772 | 23,003 | 13,297 | ||||||||||||
Investments in government securities held in trust | 175,002 | 0 | ||||||||||||||
Assets of discontinued operations (including receivable from affiliates of $31) | 0 | 8,137 | ||||||||||||||
Total assets | $ | 993,125 | $ | 954,433 | $ | 1,100,611 | $ | 1,010,906 | ||||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||||||||||
Payable to brokers | $ | 10,557 | $ | 5,511 | $ | 8,443 | $ | 14,889 | ||||||||
Income taxes payable | 3,888 | 3,577 | 897 | 3,622 | ||||||||||||
Compensation payable | 11,594 | 11,388 | 7,445 | 19,536 | ||||||||||||
Securities sold, not yet purchased | 25,475 | 9,574 | ||||||||||||||
Securities sold, not yet purchased (a) | 12,827 | 16,419 | ||||||||||||||
Payable to affiliates | 472 | 515 | 455 | 483 | ||||||||||||
Accrued expenses and other liabilities | 2,643 | 7,820 | ||||||||||||||
Accrued expenses and other liabilities (a) | 6,088 | 6,037 | ||||||||||||||
Deferred underwriting fee payable | 6,125 | 0 | ||||||||||||||
Liabilities of discontinued operations (including payable to affiliates $986) | 0 | 2,100 | ||||||||||||||
Total liabilities | 54,629 | 38,385 | 42,280 | 63,086 | ||||||||||||
Redeemable noncontrolling interests | 49,699 | 49,800 | ||||||||||||||
Redeemable noncontrolling interests (a) | 204,164 | 50,385 | ||||||||||||||
Equity: | ||||||||||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued and outstanding | - | - | ||||||||||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized; 6,569,254 and 6,537,768 shares issued, respectively; 3,473,355 and 3,530,752 shares outstanding, respectively | 6 | 6 | ||||||||||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 19,196,792 shares issued; 19,022,918 and 19,054,404 shares outstanding, respectively | 19 | 19 | ||||||||||||||
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; 6,629,254 and 6,569,254 shares issued, respectively; 3,369,896 and 3,452,381 shares outstanding, respectively | 6 | 6 | ||||||||||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 19,196,792 shares issued; 18,962,918 and 19,022,918 shares outstanding, respectively | 19 | 19 | ||||||||||||||
Additional paid-in capital | 1,006,065 | 1,008,319 | 999,047 | 1,003,450 | ||||||||||||
Accumulated deficit | (11,723 | ) | (39,889 | ) | (35,241 | ) | (701 | ) | ||||||||
Treasury stock, at cost (3,095,899 and 3,007,016 shares, respectively) | (105,570 | ) | (102,207 | ) | ||||||||||||
Total Associated Capital Group, Inc. stockholders’ equity | 888,797 | 866,248 | ||||||||||||||
Treasury stock, at cost (3,259,358 and 3,116,873 shares outstanding, respectively) | (111,736 | ) | (106,342 | ) | ||||||||||||
Total Associated Capital Group, Inc. equity | 852,095 | 896,432 | ||||||||||||||
Noncontrolling interests (from discontinued operations in 2019) | 2,072 | 1,003 | ||||||||||||||
Total equity | 854,167 | 897,435 | ||||||||||||||
Total liabilities and equity | $ | 993,125 | $ | 954,433 | $ | 1,100,611 | $ | 1,010,906 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Investment advisory and incentive fees | $ | 2,753 | $ | 2,805 | $ | 8,199 | $ | 7,949 | $ | 1,865 | $ | 2,753 | $ | 6,424 | $ | 8,199 | ||||||||||||||||
Institutional research services | 2,354 | 1,855 | 6,343 | 6,179 | ||||||||||||||||||||||||||||
Other | 11 | 6 | 49 | 37 | 80 | 1 | 550 | 12 | ||||||||||||||||||||||||
Total revenues | 5,118 | 4,666 | 14,591 | 14,165 | 1,945 | 2,754 | 6,974 | 8,211 | ||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Compensation | 4,808 | 5,618 | 16,288 | 17,812 | 3,026 | 3,071 | 8,405 | 10,287 | ||||||||||||||||||||||||
Stock-based compensation | 256 | 289 | 955 | 361 | ||||||||||||||||||||||||||||
Other operating expenses | 3,063 | 2,258 | 11,384 | 7,187 | 2,471 | 2,276 | 6,422 | 9,072 | ||||||||||||||||||||||||
Total expenses | 8,127 | 8,165 | 28,627 | 25,360 | 5,497 | 5,347 | 14,827 | 19,359 | ||||||||||||||||||||||||
Operating loss | (3,009 | ) | (3,499 | ) | (14,036 | ) | (11,195 | ) | (3,552 | ) | (2,593 | ) | (7,853 | ) | (11,148 | ) | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||
Net gain/(loss) from investments | 7,606 | (7,977 | ) | 42,351 | (18,936 | ) | 15,603 | 7,613 | (34,770 | ) | 42,358 | |||||||||||||||||||||
Interest and dividend income | 2,618 | 3,466 | 9,699 | 9,338 | 1,218 | 2,581 | 4,675 | 9,541 | ||||||||||||||||||||||||
Interest expense | (69 | ) | (70 | ) | (148 | ) | (142 | ) | (32 | ) | (70 | ) | (146 | ) | (148 | ) | ||||||||||||||||
Shareholder-designated contribution | (2,782 | ) | 0 | (3,007 | ) | 0 | ||||||||||||||||||||||||||
Total other income (expense), net | 10,155 | (4,581 | ) | 51,902 | (9,740 | ) | 14,007 | 10,124 | (33,248 | ) | 51,751 | |||||||||||||||||||||
Income/(loss) before income taxes | 7,146 | (8,080 | ) | 37,866 | (20,935 | ) | 10,455 | 7,531 | (41,101 | ) | 40,603 | |||||||||||||||||||||
Income tax expense/(benefit) | 1,554 | (858 | ) | 7,468 | (4,204 | ) | 3,564 | 1,638 | (8,858 | ) | 8,064 | |||||||||||||||||||||
Net income/(loss) | 5,592 | (7,222 | ) | 30,398 | (16,731 | ) | ||||||||||||||||||||||||||
Net income/(loss) attributable to noncontrolling interests | (359 | ) | 157 | 2,232 | 1,053 | |||||||||||||||||||||||||||
Income/(loss) from continuing operations before noncontrolling interests | 6,891 | 5,893 | (32,243 | ) | 32,539 | |||||||||||||||||||||||||||
Income/(loss) attributable to noncontrolling interests | 937 | (359 | ) | (572 | ) | 2,232 | ||||||||||||||||||||||||||
Income/(loss) from continuing operations | 5,954 | 6,252 | (31,671 | ) | 30,307 | |||||||||||||||||||||||||||
Income/(loss) from discontinued operations, net of taxes and noncontrolling interests | (139 | ) | (301 | ) | (632 | ) | (2,141 | ) | ||||||||||||||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | 5,951 | $ | (7,379 | ) | $ | 28,166 | $ | (17,784 | ) | $ | 5,815 | $ | 5,951 | $ | (32,303 | ) | $ | 28,166 | |||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.26 | $ | (0.32 | ) | $ | 1.25 | $ | (0.77 | ) | ||||||||||||||||||||||
Diluted | $ | 0.26 | $ | (0.32 | ) | $ | 1.25 | $ | (0.77 | ) | ||||||||||||||||||||||
Basic- Continuing operations | $ | 0.27 | $ | 0.27 | $ | (1.41 | ) | $ | 1.34 | |||||||||||||||||||||||
Basic - Discontinued operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.09 | ) | ||||||||||||||||||||||||
Basis - Total | $ | 0.26 | $ | 0.26 | $ | (1.44 | ) | $ | 1.25 | |||||||||||||||||||||||
Diluted- Continuing operations | $ | 0.27 | $ | 0.27 | $ | (1.41 | ) | $ | 1.34 | |||||||||||||||||||||||
Diluted - Discontinued operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.09 | ) | ||||||||||||||||||||||||
Diluted - Total | $ | 0.26 | $ | 0.26 | $ | (1.44 | ) | $ | 1.25 | |||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 22,514 | 22,979 | 22,550 | 23,187 | 22,354 | 22,514 | 22,391 | 22,550 | ||||||||||||||||||||||||
Diluted | 22,514 | 22,979 | 22,550 | 23,187 | 22,354 | 22,514 | 22,391 | 22,550 | ||||||||||||||||||||||||
Actual shares outstanding - end of period | 22,333 | 22,496 | 22,333 | 22,496 | ||||||||||||||||||||||||||||
Dividends declared: | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Net income/(loss) | $ | 5,592 | $ | (7,222 | ) | $ | 30,398 | $ | (16,731 | ) | $ | 5,815 | $ | 5,951 | $ | (32,303 | ) | $ | 28,166 | |||||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | (359 | ) | 157 | 2,232 | 1,053 | 937 | (359 | ) | (572 | ) | 2,232 | |||||||||||||||||||||
Comprehensive income/(loss) attributable to Associated Capital Group, Inc. | $ | 5,951 | $ | (7,379 | ) | $ | 28,166 | $ | (17,784 | ) | $ | 4,878 | $ | 6,310 | $ | (31,731 | ) | $ | 25,934 |
Associated Capital Group, Inc. shareholders | ||||||||||||||||||||||||||||
Common Stock | Accumulated Deficit | Additional Paid-in Capital | Treasury Stock | Noncontrolling Interest | Total | Redeemable Noncontrolling Interests | ||||||||||||||||||||||
Balance at December 31, 2019 | $ | 25 | $ | (701 | ) | $ | 1,003,450 | $ | (106,342 | ) | $ | 1,003 | $ | 897,435 | $ | 50,385 | ||||||||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (531 | ) | ||||||||||||||||||||
Net loss | 0 | (73,355 | ) | 0 | 0 | (52 | ) | (73,407 | ) | (3,945 | ) | |||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | (3,225 | ) | 0 | (3,225 | ) | 0 | |||||||||||||||||||
Balance at March 31, 2020 | $ | 25 | $ | (74,056 | ) | $ | 1,003,450 | $ | (109,567 | ) | $ | 951 | $ | 820,803 | $ | 45,909 | ||||||||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (1,167 | ) | ||||||||||||||||||||
Net income/(loss) | 0 | 35,237 | 0 | 0 | (48 | ) | 35,189 | 2,436 | ||||||||||||||||||||
Dividends declared ($0.10 per share) | - | (2,237 | ) | 0 | - | 0 | (2,237 | ) | 0 | |||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | (1,068 | ) | 0 | (1,068 | ) | 0 | |||||||||||||||||||
Balance at June 30, 2020 | $ | 25 | $ | (41,056 | ) | $ | 1,003,450 | $ | (110,635 | ) | $ | 903 | $ | 852,687 | $ | 47,178 | ||||||||||||
Contributions from redeemable noncontrolling interests (1) | 0 | 0 | 0 | 0 | 0 | 0 | 156,049 | |||||||||||||||||||||
Spin-off of MGHL | 0 | 0 | (4,403 | ) | 0 | (903 | ) | (5,306 | ) | 0 | ||||||||||||||||||
PMV Sponsor members' interest | 0 | 0 | 0 | 0 | 2,072 | 2,072 | 0 | |||||||||||||||||||||
Net income | 0 | 5,815 | 0 | 0 | 0 | 5,815 | 937 | |||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | (1,101 | ) | 0 | (1,101 | ) | 0 | |||||||||||||||||||
Balance at September 30, 2020 | $ | 25 | $ | (35,241 | ) | $ | 999,047 | $ | (111,736 | ) | $ | 2,072 | $ | 854,167 | $ | 204,164 |
Associated Capital Group, Inc. shareholders | Associated Capital Group, Inc. shareholders | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Deficit | Additional Paid-in Capital | Treasury Stock | Total | Redeemable Noncontrolling Interests | Common Stock | Accumulated Deficit | Additional Paid-in Capital | Treasury Stock | Total | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 25 | $ | (39,889 | ) | $ | 1,008,319 | $ | (102,207 | ) | $ | 866,248 | $ | 49,800 | $ | 25 | $ | (39,889 | ) | $ | 1,008,319 | $ | (102,207 | ) | $ | 866,248 | $ | 49,800 | ||||||||||||||||||||
Redemptions of noncontrolling interests | - | - | - | - | - | (526 | ) | 0 | 0 | 0 | 0 | 0 | (526 | ) | ||||||||||||||||||||||||||||||||||
Net income | - | 23,147 | - | - | 23,147 | 1,507 | 0 | 23,147 | 0 | 0 | 23,147 | 1,507 | ||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | (391 | ) | (391 | ) | - | 0 | 0 | 0 | (391 | ) | (391 | ) | 0 | ||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 25 | $ | (16,742 | ) | $ | 1,008,319 | $ | (102,598 | ) | $ | 889,004 | $ | 50,781 | $ | 25 | $ | (16,742 | ) | $ | 1,008,319 | $ | (102,598 | ) | $ | 889,004 | $ | 50,781 | ||||||||||||||||||||
Redemptions of noncontrolling interests | - | - | - | - | - | (2,197 | ) | 0 | 0 | 0 | 0 | 0 | (2,197 | ) | ||||||||||||||||||||||||||||||||||
Net income | - | (932 | ) | - | - | (932 | ) | 1,084 | 0 | (932 | ) | 0 | 0 | (932 | ) | 1,084 | ||||||||||||||||||||||||||||||||
Dividends declared ($0.10 per share) | - | - | (2,254 | ) | - | (2,254 | ) | - | - | - | (2,254 | ) | - | (2,254 | ) | - | ||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | (1,630 | ) | (1,630 | ) | - | 0 | 0 | 0 | (1,630 | ) | (1,630 | ) | 0 | ||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 25 | $ | (17,674 | ) | $ | 1,006,065 | $ | (104,228 | ) | $ | 884,188 | $ | 49,668 | $ | 25 | $ | (17,674 | ) | $ | 1,006,065 | $ | (104,228 | ) | $ | 884,188 | $ | 49,668 | ||||||||||||||||||||
Redemptions of noncontrolling interests | - | - | - | - | - | 390 | 0 | 0 | 0 | 0 | 0 | 390 | ||||||||||||||||||||||||||||||||||||
Net income | - | 5,951 | - | - | 5,951 | (359 | ) | 0 | 5,951 | 0 | 0 | 5,951 | (359 | ) | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | (1,342 | ) | (1,342 | ) | - | 0 | 0 | 0 | (1,342 | ) | (1,342 | ) | 0 | ||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 25 | $ | (11,723 | ) | $ | 1,006,065 | $ | (105,570 | ) | $ | 888,797 | $ | 49,699 | $ | 25 | $ | (11,723 | ) | $ | 1,006,065 | $ | (105,570 | ) | $ | 888,797 | $ | 49,699 |
Associated Capital Group, Inc. shareholders | ||||||||||||||||||||||||||||||||
Common Stock | Retained Earnings | Additional Paid-in Capital | GBL 4% PIK Note | Accumulated Comprehensive Income | Treasury Stock | Total | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 25 | $ | 13,800 | $ | 1,010,505 | $ | (50,000 | ) | $ | 6,712 | $ | (62,895 | ) | $ | 918,147 | $ | 46,230 | ||||||||||||||
Reclassifications pursuant to adoption of new accounting guidance | - | 6,712 | - | - | (6,712 | ) | - | - | - | |||||||||||||||||||||||
Redemptions of noncontrolling interests | - | - | - | - | - | - | - | (1,971 | ) | |||||||||||||||||||||||
Consolidation of certain investment funds | - | - | - | - | - | - | - | 6,488 | ||||||||||||||||||||||||
Net loss | - | (22,229 | ) | - | - | - | - | (22,229 | ) | (143 | ) | |||||||||||||||||||||
Stock-based compensation expense | - | - | 72 | - | - | - | 72 | - | ||||||||||||||||||||||||
Proceeds from payment of GBL 4% PIK Note | - | - | - | 10,000 | - | - | 10,000 | - | ||||||||||||||||||||||||
Exchange of GBL stock for AC stock | - | - | - | - | - | (17,737 | ) | (17,737 | ) | - | ||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (459 | ) | (459 | ) | - | ||||||||||||||||||||||
Balance at March 31, 2018 | $ | 25 | $ | (1,717 | ) | $ | 1,010,577 | $ | (40,000 | ) | $ | - | $ | (81,091 | ) | $ | 887,794 | $ | 50,604 | |||||||||||||
Redemptions of noncontrolling interests | - | - | - | - | - | - | - | (336 | ) | |||||||||||||||||||||||
Net income/(loss) | - | 11,824 | - | - | - | - | 11,824 | 1,039 | ||||||||||||||||||||||||
Proceeds from payment of GBL 4% PIK Note | - | - | - | 20,000 | - | - | 20,000 | - | ||||||||||||||||||||||||
Dividends declared ($0.10 per share) | (2,302 | ) | (2,302 | ) | - | |||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (5,380 | ) | (5,380 | ) | - | ||||||||||||||||||||||
Balance at June 30, 2018 | $ | 25 | $ | 7,805 | $ | 1,010,577 | $ | (20,000 | ) | $ | - | $ | (86,471 | ) | $ | 911,936 | $ | 51,307 | ||||||||||||||
Redemptions of noncontrolling interests | - | - | - | - | - | - | - | (345 | ) | |||||||||||||||||||||||
Net income/(loss) | - | (7,379 | ) | - | - | - | - | (7,379 | ) | 157 | ||||||||||||||||||||||
Proceeds from payment of GBL 4% PIK Note | - | - | - | 20,000 | - | - | 20,000 | - | ||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (732 | ) | (732 | ) | - | ||||||||||||||||||||||
Balance at September 30, 2018 | $ | 25 | $ | 426 | $ | 1,010,577 | $ | - | $ | - | $ | (87,203 | ) | $ | 923,825 | $ | 51,119 |
Nine Months Ended | ||||||||||||||||
September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
Operating activities | ||||||||||||||||
Net income/(loss) | $ | 30,398 | $ | (16,731 | ) | |||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
Equity in net gains from partnerships | (5,029 | ) | (3,697 | ) | ||||||||||||
Net income (loss) | $ | (32,875 | ) | $ | 30,398 | |||||||||||
Loss from discontinued operations, net of taxes | 632 | 2,141 | ||||||||||||||
Loss from continuing operations | (32,243 | ) | 32,539 | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
from continuing activities | ||||||||||||||||
Equity in net (gains) losses from partnerships | (4,316 | ) | (5,029 | ) | ||||||||||||
Deferred income taxes | 5,019 | - | (5,923 | ) | 4,739 | |||||||||||
Depreciation and amortization | 18 | 15 | 40 | 10 | ||||||||||||
Stock-based compensation expense | - | 72 | ||||||||||||||
Loss on exchange offer | - | 2,127 | ||||||||||||||
Donated securities | 1,875 | - | 441 | 1,875 | ||||||||||||
Unrealized gains on securities | (18,450 | ) | - | |||||||||||||
Realized gains on sales of securities | (220 | ) | - | |||||||||||||
Unrealized (gains) losses on securities | 37,511 | (18,450 | ) | |||||||||||||
Realized gains (losses) on sales of securities | 1,017 | (220 | ) | |||||||||||||
(Increase) decrease in assets: | ||||||||||||||||
Investments in trading securities | (54,357 | ) | 1,983 | (283,070 | ) | (54,341 | ) | |||||||||
Investments in partnerships: | ||||||||||||||||
Contributions to partnerships | (22,671 | ) | (8,077 | ) | (4,229 | ) | (22,671 | ) | ||||||||
Distributions from partnerships | 2,772 | 9,512 | 24,841 | 2,772 | ||||||||||||
Receivable from affiliates | 571 | 451 | 3,600 | 688 | ||||||||||||
Goodwill and intangible assets | - | (97 | ) | |||||||||||||
Receivable from brokers | 927 | 19,706 | 2,077 | 856 | ||||||||||||
Investment advisory fees receivable | 3,107 | 4,372 | 8,423 | 3,107 | ||||||||||||
Income taxes receivable | (2,207 | ) | 8 | |||||||||||||
Other assets | 8,609 | 5,983 | 1,260 | 8,604 | ||||||||||||
Increase (decrease) in liabilities: | ||||||||||||||||
Payable to brokers | 5,046 | 44 | (6,446 | ) | 4,766 | |||||||||||
Income taxes payable and deferred tax liabilities | 311 | (4,656 | ) | |||||||||||||
Income taxes payable | (2,833 | ) | 311 | |||||||||||||
Payable to affiliates | (43 | ) | 161 | 122 | 176 | |||||||||||
Compensation payable | 206 | (5,994 | ) | (12,092 | ) | 723 | ||||||||||
Accrued expenses and other liabilities | (2,917 | ) | (557 | ) | 1,824 | (2,784 | ) | |||||||||
Total adjustments | (75,226 | ) | 21,348 | (239,960 | ) | (74,860 | ) | |||||||||
Net cash provided by (used in) operating activities | $ | (44,828 | ) | $ | 4,617 | |||||||||||
Net cash used in operating activities | $ | (272,203 | ) | $ | (42,321 | ) |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
Investing activities | ||||||||||||||||
Purchases of securities | $ | (1,366 | ) | $ | - | $ | (434 | ) | $ | (1,366 | ) | |||||
Proceeds from sale of securities | 2,699 | - | ||||||||||||||
Proceeds from sales of securities | 8,406 | 2,699 | ||||||||||||||
Return of capital on securities | 1,326 | - | 1,320 | 1,326 | ||||||||||||
Purchase of building | (6,250 | ) | - | (11,084 | ) | (6,250 | ) | |||||||||
Proceeds from note receivable | - | 15,000 | ||||||||||||||
Net cash provided by (used in) investing activities | (3,591 | ) | 15,000 | |||||||||||||
Investment of cash in Trust Account | (175,000 | ) | 0 | |||||||||||||
Net cash used in investing activities | (176,792 | ) | (3,591 | ) | ||||||||||||
Financing activities | ||||||||||||||||
Contributions from redeemable noncontrolling interests | 162,020 | 0 | ||||||||||||||
Redemptions of redeemable noncontrolling interests | (2,333 | ) | (2,652 | ) | 0 | (2,333 | ) | |||||||||
Dividends paid | (4,513 | ) | (4,666 | ) | (4,486 | ) | (4,513 | ) | ||||||||
Purchase of treasury stock | (3,363 | ) | (6,571 | ) | (5,395 | ) | (3,363 | ) | ||||||||
Proceeds from payment of GBL 4% PIK Note | - | 50,000 | ||||||||||||||
Contributions from nonredeemable noncontrolling interests | 2,072 | 0 | ||||||||||||||
Proceeds from promissory note from Executive Chairman | 2,124 | - | 0 | 2,124 | ||||||||||||
Repayment of promissory note to Executive Chairman | (2,126 | ) | - | 0 | (2,126 | ) | ||||||||||
Net cash provided by (used in) financing activities | (10,211 | ) | 36,111 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (58,630 | ) | 55,728 | |||||||||||||
Cash, restricted cash and cash equivalents at beginning of period | 409,764 | 293,112 | ||||||||||||||
Increase in cash from consolidation | - | 47 | ||||||||||||||
Cash, restricted cash and cash equivalents at end of period | $ | 351,134 | $ | 348,887 | ||||||||||||
Net cash used in financing activities | 154,211 | (10,211 | ) | |||||||||||||
Cash flows of discontinued operations | ||||||||||||||||
Net cash provided by (used in) operating activities | 114 | (2,507 | ) | |||||||||||||
Net decrease in cash and cash equivalents | (294,670 | ) | (58,630 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 342,001 | 398,363 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 47,331 | $ | 339,733 | ||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid for interest | $ | 136 | $ | 141 | $ | 114 | $ | 79 | ||||||||
Cash paid for taxes | $ | 2,200 | $ | 304 | $ | 2,000 | $ | 2,200 | ||||||||
Reconciliation to cash, restricted cash and cash equivalents | ||||||||||||||||
Cash and cash equivalents | 350,934 | 348,887 | ||||||||||||||
Restricted cash included in receivable from brokers | 200 | 200 | ||||||||||||||
Cash, restricted cash and cash equivalents | $ | 351,134 | $ | 349,087 | ||||||||||||
Non-cash activity: | Non-cash activity: | |||||||||||||||
- On September 21, 2020 a deferred underwriting fee of $6.1 million was recorded with an offset to redeemable noncontrolling interests. |
a. | Asset-based advisory fees – The Company receives a management fee, payable monthly in advance based on value of the net assets of the client. It is generally set at a rate of 1%-1.5% per annum. Asset-based management fee revenue is recognized only as the services are performed over the period. |
b. | Performance-based advisory fees – Certain client contracts call for additional fees and or allocations of income tied to a certain percentage, generally 20%, of the investment performance of the account over a measurement period, typically the calendar year. In addition, the contracts provide that performance-based fees or allocations become fixed in the event of an investor redemption prior to the end of the measurement period. In the event that an account suffers a loss in one period, it must be recovered before incentive fees are earned by the Company; this is commonly referred to as a “high water mark” provision. While the Company’s performance obligation is satisfied over time, the Company does not recognize performance-based fees until the end of the measurement period or the time of the investor redemption when the uncertainty surrounding the amount of the variable consideration is resolved. |
c. | Sub-advisory fees – Pursuant to agreements with other investment advisors, the Company receives a percentage of advisory fees received by such advisors from certain of their investment fund clients. These fees may be either asset- or performance-based. In addition, they may be subject to reduction by certain expenses as set forth in the respective agreements. Sub-advisory fee revenue which is asset-based is recognized ratably as the services are performed over the relevant contractual performance period. Sub-advisory fee revenue which is performance-based is recognized only when it becomes fixed and not subject to adjustment. |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Investment advisory and incentive fees | ||||||||||||||||||||||||||||||||
Asset-based advisory fees | $ | 1,723 | $ | 1,879 | $ | 5,208 | $ | 5,561 | $ | 1,161 | $ | 1,723 | $ | 4,284 | $ | 5,208 | ||||||||||||||||
Performance-based advisory fees | 35 | 27 | 61 | 34 | 8 | 35 | 8 | 61 | ||||||||||||||||||||||||
Sub-advisory fees | 995 | 899 | 2,930 | 2,354 | 696 | 995 | 2,132 | 2,930 | ||||||||||||||||||||||||
2,753 | 2,805 | 8,199 | 7,949 | 1,865 | 2,753 | 6,424 | 8,199 | |||||||||||||||||||||||||
Institutional research services | ||||||||||||||||||||||||||||||||
Hard dollar payments | 520 | 541 | 1,470 | 2,236 | ||||||||||||||||||||||||||||
Commissions | 1,365 | 1,284 | 4,207 | 3,844 | ||||||||||||||||||||||||||||
Selling concessions | - | 15 | 75 | 84 | ||||||||||||||||||||||||||||
Sales manager fees | 469 | 15 | 591 | 15 | ||||||||||||||||||||||||||||
2,354 | 1,855 | 6,343 | 6,179 | |||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Underwriting fees | 5 | - | 24 | 19 | ||||||||||||||||||||||||||||
Miscellaneous | 6 | 6 | 25 | 18 | 80 | 1 | 550 | 12 | ||||||||||||||||||||||||
11 | 6 | 49 | 37 | 80 | 1 | 550 | 12 | |||||||||||||||||||||||||
Total | $ | 5,118 | $ | 4,666 | $ | 14,591 | $ | 14,165 | $ | 1,945 | $ | 2,754 | $ | 6,974 | $ | 8,211 |
September 30, 2019 | December 31, 2018 | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Government obligations | $ | 28,842 | $ | 29,335 | $ | 11,694 | $ | 11,707 | ||||||||
Common stocks | 289,127 | 268,951 | 244,557 | 213,151 | ||||||||||||
Mutual funds | 659 | 1,137 | 761 | 1,161 | ||||||||||||
Other investments | 5,776 | 4,613 | 5,285 | 3,941 | ||||||||||||
Total investments in securities | $ | 324,404 | $ | 304,036 | $ | 262,297 | $ | 229,960 |
September 30, 2020 | December 31, 2019 | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Trading Securities | ||||||||||||||||
Government securities | $ | 330,795 | $ | 330,942 | $ | 28,428 | $ | 29,037 | ||||||||
Total investments in debt securities | $ | 330,795 | $ | 330,942 | $ | 28,428 | $ | 29,037 |
September 30, 2020 | December 31, 2019 | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Equity Securities | ||||||||||||||||
Common stocks | $ | 244,611 | $ | 205,413 | $ | 271,627 | $ | 262,562 | ||||||||
Mutual funds | 555 | 1,128 | 1,207 | 2,196 | ||||||||||||
Other investments | 8,040 | 7,045 | 7,847 | 6,562 | ||||||||||||
Total investments in securities | $ | 253,206 | $ | 213,586 | $ | 280,681 | $ | 271,320 |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||
Proceeds | Fair Value | Proceeds | Fair Value | Proceeds | Fair Value | Proceeds | Fair Value | |||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Common stocks | $ | 24,894 | $ | 25,402 | $ | 10,150 | $ | 9,485 | $ | 10,730 | $ | 11,661 | $ | 13,863 | $ | 16,300 | ||||||||||||||||
Other investments | - | 73 | - | 89 | 645 | 1,166 | 13 | 119 | ||||||||||||||||||||||||
Total securities sold, not yet purchased | $ | 24,894 | $ | 25,475 | $ | 10,150 | $ | 9,574 | $ | 11,375 | $ | 12,827 | $ | 13,876 | $ | 16,419 |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Closed-end funds | $ | 73,938 | $ | 95,017 | $ | 73,950 | $ | 85,090 | $ | 74,741 | $ | 87,307 | $ | 75,646 | $ | 99,834 | ||||||||||||||||
Mutual funds | 47,390 | 57,436 | 49,714 | 57,045 | 48,287 | 59,084 | 48,348 | 59,477 | ||||||||||||||||||||||||
Total investments in affiliated registered investment companies | $ | 121,328 | $ | 152,453 | $ | 123,664 | $ | 142,135 | $ | 123,028 | $ | 146,391 | $ | 123,994 | $ | 159,311 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Statement of Financial Condition Location | Fair Value | Statement of Financial Condition Location | Fair Value | |||||||||||||||
September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||
Derivatives designated as hedging instruments under FASB ASC 815-20 | ||||||||||||||||||
Foreign exchange contracts | Receivable from brokers | $ | 79 | $ | 204 | Payable to brokers | $ | - | $ | - | ||||||||
Sub total | $ | 79 | $ | 204 | $ | - | $ | - | ||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815-20 | ||||||||||||||||||
Equity contracts | Investments in securities | $ | 77 | $ | 464 | Securities sold, not yet purchased | $ | 73 | $ | 89 | ||||||||
Sub total | $ | 77 | $ | 464 | $ | 73 | $ | 89 | ||||||||||
Total derivatives | $ | 156 | $ | 668 | $ | 73 | $ | 89 |
Type of Derivative | Income Statement Location | Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Foreign exchange contracts | Net gain/(loss) from investments | $ | 124 | $ | 36 | $ | 177 | $ | 138 | |||||||||
Equity contracts | Net gain/(loss) from investments | 1,143 | 652 | (324 | ) | 3,304 | ||||||||||||
Total | $ | 1,267 | $ | 688 | $ | (147 | ) | $ | 3,442 |
Asset Derivatives | Liability Derivatives | |||||||||||||||
Statement of | Fair Value | Statement of | Fair Value | |||||||||||||
Financial Condition | September 30, | December 31, | Financial Condition | September 30, | December 31, | |||||||||||
Location | 2020 | 2020 | Location | 2020 | 2019 | |||||||||||
Derivatives designated as hedging | ||||||||||||||||
instruments under FASB ASC 815-20 | ||||||||||||||||
Foreign exchange contracts | Receivable from brokers | $ | 0 | $ | 23 | Payable to brokers | $ | 0 | $ | 0 | ||||||
Derivatives not designated as hedging | ||||||||||||||||
instruments under FASB ASC 815-20 | ||||||||||||||||
Equity contracts | ||||||||||||||||
Investments in securities | $ | 771 | $ | 291 | Securities sold, not yet purchased | $ | 705 | $ | 119 | |||||||
Total derivatives | $ | 771 | $ | 314 | $ | 705 | $ | 119 |
Type of Derivative | Income Statement Location | Three Months ended September 30, | Nine Months ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Foreign exchange contracts | Net gain/(loss) from investments | $ | (57 | ) | $ | 124 | $ | (44 | ) | $ | $177 | ||||||
Equity contracts | Net gain/(loss) from investments | 99 | 1,143 | (411 | ) | (324 | ) | ||||||||||
Total | $ | 42 | $ | 1,267 | $ | (455 | ) | $ | $(147 | ) |
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statements of Financial Condition | Net Amounts of Assets Presented in the Statements of Financial Condition | Gross Amounts Not Offset in the Statements of Financial Condition | |||||||||||||||||||||
Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||||
Swaps: | (In thousands) | |||||||||||||||||||||||
September 30, 2019 | $ | 77 | $ | - | $ | 77 | $ | (73 | ) | $ | - | $ | 4 | |||||||||||
December 31, 2018 | 416 | - | 416 | (89 | ) | - | 327 | |||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statements of Financial Condition | Net Amounts of Liabilities Presented in the Statements of Financial Condition | Gross Amounts Not Offset in the Statements of Financial Condition | |||||||||||||||||||||
Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||||
Swaps: | (In thousands) | |||||||||||||||||||||||
September 30, 2019 | $ | 73 | $ | - | $ | 73 | $ | (73 | ) | $ | - | $ | - | |||||||||||
December 31, 2018 | 89 | - | 89 | (89 | ) | - | - |
Gross Amounts Not Offset in the Statements of Financial Condition | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statements of Financial Condition | Net Amounts of Assets Presented in the Statements of Financial Condition | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Swaps: | (In thousands) | |||||||||||||||||||||||
September 30, 2020 | $ | 771 | $ | 0 | $ | 771 | $ | (705 | ) | $ | 0 | $ | 66 | |||||||||||
December 31, 2019 | 291 | 0 | 291 | (119 | ) | 0 | 172 |
Gross Amounts Not Offset in the Statements of Financial Condition | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statements of Financial Condition | Net Amounts of Liabilities Presented in the Statements of Financial Condition | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||||||
Swaps: | (In thousands) | |||||||||||||||||||||||
September 30, 2020 | $ | 705 | $ | 0 | $ | 705 | $ | (705 | ) | $ | 0 | $ | 0 | |||||||||||
December 31, 2019 | 119 | 0 | 119 | (119 | ) | 0 | 0 |
VIEs | VOEs | |||||||
Entities consolidated at December 31, 2017 | 1 | 3 | ||||||
Additional consolidated entities | - | 2 | ||||||
Deconsolidated entities | - | - | ||||||
Entities consolidated at September 30, 2018 | 1 | 5 | ||||||
Additional consolidated entities | - | - | ||||||
Deconsolidated entities | - | - | ||||||
Entities consolidated at December 31, 2018 | 1 | 5 | ||||||
Additional consolidated entities | - | - | ||||||
Deconsolidated entities | - | - | ||||||
Entities consolidated at September 30, 2019 | 1 | 5 |
September 30, 2019 | September 30, 2020 | |||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | Prior to Consolidation | Consolidated Entities | As Reported | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | 346,501 | $ | 4,433 | $ | 350,934 | $ | 35,808 | $ | 11,523 | $ | 47,331 | |||||||||||||
Investments in securities (including GBL stock) | 167,129 | 136,907 | 304,036 | |||||||||||||||||||||
Investments in government securities | 319,943 | 10,999 | 330,942 | |||||||||||||||||||||
Investments in equity securities (including GBL stock) | 136,428 | 77,158 | 213,586 | |||||||||||||||||||||
Investments in affiliated investment companies | 212,576 | (60,123 | ) | 152,453 | 195,737 | (49,346 | ) | 146,391 | ||||||||||||||||
Investments in partnerships | 165,088 | (21,430 | ) | 143,658 | 147,326 | (19,361 | ) | 127,965 | ||||||||||||||||
Receivable from brokers | 8,364 | 15,338 | 23,702 | 6,524 | 14,541 | 21,065 | ||||||||||||||||||
Investment advisory fees receivable | 1,308 | (21 | ) | 1,287 | 1,189 | (29 | ) | 1,160 | ||||||||||||||||
Other assets | 17,017 | 38 | 17,055 | 37,238 | (69 | ) | 37,169 | |||||||||||||||||
Investments in government securities held in trust | 0 | 175,002 | 175,002 | |||||||||||||||||||||
Total assets | $ | 917,983 | $ | 75,142 | $ | 993,125 | $ | 880,193 | $ | 220,418 | $ | 1,100,611 | ||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Securities sold, not yet purchased | $ | 7,538 | $ | 17,937 | $ | 25,475 | $ | 6,397 | $ | 6,430 | $ | 12,827 | ||||||||||||
Accrued expenses and other liabilities | 21,648 | 7,506 | 29,154 | 19,629 | 9,824 | 29,453 | ||||||||||||||||||
Redeemable noncontrolling interests | - | 49,699 | 49,699 | 0 | 204,164 | 204,164 | ||||||||||||||||||
Total equity | 888,797 | - | 888,797 | 854,167 | 0 | 854,167 | ||||||||||||||||||
Total liabilities and equity | $ | 917,983 | $ | 75,142 | $ | 993,125 | $ | 880,193 | $ | 220,418 | $ | 1,100,611 | ||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 396,074 | $ | 13,490 | $ | 409,564 | ||||||||||||||||||
Investments in securities (including GBL stock) | 131,764 | 98,196 | 229,960 | |||||||||||||||||||||
Investments in affiliated investment companies | 193,006 | (50,871 | ) | 142,135 | ||||||||||||||||||||
Investments in partnerships | 138,119 | (19,390 | ) | 118,729 | ||||||||||||||||||||
Receivable from brokers | 7,998 | 16,631 | 24,629 | |||||||||||||||||||||
Investment advisory fees receivable | 4,427 | (33 | ) | 4,394 | ||||||||||||||||||||
Other assets | 24,551 | 471 | 25,022 | |||||||||||||||||||||
Total assets | $ | 895,939 | $ | 58,494 | $ | 954,433 | ||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Securities sold, not yet purchased | $ | 4,631 | $ | 4,943 | $ | 9,574 | ||||||||||||||||||
Accrued expenses and other liabilities | 25,060 | 3,751 | 28,811 | |||||||||||||||||||||
Redeemable noncontrolling interests | - | 49,800 | 49,800 | |||||||||||||||||||||
Total equity | 866,248 | - | 866,248 | |||||||||||||||||||||
Total liabilities and equity | $ | 895,939 | $ | 58,494 | $ | 954,433 |
December 31, 2019 | ||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 328,834 | $ | 13,167 | $ | 342,001 | ||||||
Investments in government securities | 25,050 | 3,987 | 29,037 | |||||||||
Investments in equity securities (including GBL stock) | 157,623 | 113,697 | 271,320 | |||||||||
Investments in affiliated investment companies | 211,024 | (51,713 | ) | 159,311 | ||||||||
Investments in partnerships | 167,781 | (22,409 | ) | 145,372 | ||||||||
Receivable from brokers | 6,750 | 16,391 | 23,141 | |||||||||
Investment advisory fees receivable | 9,604 | (22 | ) | 9,582 | ||||||||
Other assets | 22,976 | 29 | 23,005 | |||||||||
Assets of discontinued operations | 8,137 | 0 | 8,137 | |||||||||
Total assets | $ | 937,779 | $ | 73,127 | $ | 1,010,906 | ||||||
Liabilities and equity | ||||||||||||
Securities sold, not yet purchased | $ | 4,625 | $ | 11,794 | $ | 16,419 | ||||||
Accrued expenses and other liabilities | 33,618 | 10,949 | 44,567 | |||||||||
Liabilities of discontinued operations | 2,100 | 2,100 | ||||||||||
Redeemable noncontrolling interests | 1 | 50,384 | 50,385 | |||||||||
Total equity | 897,435 | 0 | 897,435 | |||||||||
Total liabilities and equity | $ | 937,779 | $ | 73,127 | $ | 1,010,906 |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||||||||||||||
Total revenues | $ | 5,299 | $ | (181 | ) | $ | 5,118 | |||||||||||||||||
Total expenses | 8,251 | (124 | ) | 8,127 | ||||||||||||||||||||
Operating loss | (2,952 | ) | (57 | ) | (3,009 | ) | ||||||||||||||||||
Total other income/(expense), net | 10,457 | (302 | ) | 10,155 | ||||||||||||||||||||
Income/(loss) before income taxes | 7,505 | (359 | ) | 7,146 | ||||||||||||||||||||
Income tax expense | 1,554 | - | 1,554 | |||||||||||||||||||||
Net income/(loss) before NCI | 5,951 | (359 | ) | 5,592 | ||||||||||||||||||||
Net loss attributable to noncontrolling interests | - | (359 | ) | (359 | ) | |||||||||||||||||||
Net income | $ | 5,951 | $ | - | $ | 5,951 | ||||||||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||||||||||||||
Total revenues | $ | 4,683 | $ | (17 | ) | $ | 4,666 | |||||||||||||||||
Total expenses | 7,698 | 467 | 8,165 | |||||||||||||||||||||
Operating loss | (3,015 | ) | (484 | ) | (3,499 | ) | ||||||||||||||||||
Total other income/(expense), net | (5,222 | ) | 641 | (4,581 | ) | |||||||||||||||||||
Income/(loss) before income taxes | (8,237 | ) | 157 | (8,080 | ) | |||||||||||||||||||
Income tax benefit | (858 | ) | - | (858 | ) | |||||||||||||||||||
Net income/(loss) before NCI | (7,379 | ) | 157 | (7,222 | ) | |||||||||||||||||||
Net income attributable to noncontrolling interests | - | 157 | 157 | |||||||||||||||||||||
Net loss | $ | (7,379 | ) | $ | - | $ | (7,379 | ) | ||||||||||||||||
Nine Months Ended September 30, 2019 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | Prior to Consolidation | Consolidated Entities | As Reported | |||||||||||||||||||
Total revenues | $ | 15,117 | $ | (526 | ) | $ | 14,591 | $ | 2,117 | $ | (172 | ) | $ | 1,945 | ||||||||||
Total expenses | 27,370 | 1,257 | 28,627 | 4,754 | 743 | 5,497 | ||||||||||||||||||
Operating loss | (12,253 | ) | (1,783 | ) | (14,036 | ) | (2,637 | ) | (915 | ) | (3,552 | ) | ||||||||||||
Total other income, net | 47,887 | 4,015 | 51,902 | 12,040 | 1,967 | 14,007 | ||||||||||||||||||
Income before income taxes | 35,634 | 2,232 | 37,866 | 9,403 | 1,052 | 10,455 | ||||||||||||||||||
Income tax expense | 7,468 | - | 7,468 | 3,456 | 108 | 3,564 | ||||||||||||||||||
Net income before NCI | 28,166 | 2,232 | 30,398 | |||||||||||||||||||||
Net income attributable to noncontrolling interests | - | 2,232 | 2,232 | |||||||||||||||||||||
Income before NCI | 5,947 | 944 | 6,891 | |||||||||||||||||||||
Income/(loss) attributable to NCI | (7 | ) | 944 | 937 | ||||||||||||||||||||
Income from continuing operations | 5,954 | 0 | 5,954 | |||||||||||||||||||||
Loss from discontinued operations, net of taxes | (139 | ) | 0 | (139 | ) | |||||||||||||||||||
Net income | $ | 28,166 | $ | - | $ | 28,166 | $ | 5,815 | $ | 0 | $ | 5,815 | ||||||||||||
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||||||||||||||
Total revenues | $ | 14,215 | $ | (50 | ) | $ | 14,165 | |||||||||||||||||
Total expenses | 23,913 | 1,447 | 25,360 | |||||||||||||||||||||
Operating loss | (9,698 | ) | (1,497 | ) | (11,195 | ) | ||||||||||||||||||
Total other income/(expense), net | (12,290 | ) | 2,550 | (9,740 | ) | |||||||||||||||||||
Income/(loss) before income taxes | (21,988 | ) | 1,053 | (20,935 | ) | |||||||||||||||||||
Income tax benefit | (4,204 | ) | - | (4,204 | ) | |||||||||||||||||||
Net income/(loss) before NCI | (17,784 | ) | 1,053 | (16,731 | ) | |||||||||||||||||||
Net income attributable to noncontrolling interests | - | 1,053 | 1,053 | |||||||||||||||||||||
Net loss | $ | (17,784 | ) | $ | - | $ | (17,784 | ) |
Three Months Ended September 30, 2019 | ||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||
Total revenues | $ | 2,935 | $ | (181 | ) | $ | 2,754 | |||||
Total expenses | 5,471 | (124 | ) | 5,347 | ||||||||
Operating loss | (2,536 | ) | (57 | ) | (2,593 | ) | ||||||
Total other income, net | 10,426 | (302 | ) | 10,124 | ||||||||
Income before income taxes | 7,890 | (359 | ) | 7,531 | ||||||||
Income tax expense | 1,638 | 0 | 1,638 | |||||||||
Net income before NCI | 6,252 | (359 | ) | 5,893 | ||||||||
Net income/(loss) attributable to NCI | 0 | (359 | ) | (359 | ) | |||||||
Income from continuing operations | 6,252 | 0 | 6,252 | |||||||||
Loss from discontinued operations, net of taxes | (301 | ) | 0 | (301 | ) | |||||||
Net income | $ | 5,951 | $ | 0 | $ | 5,951 |
Nine Months Ended September 30, 2020 | ||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||
Total revenues | $ | 6,669 | $ | 305 | $ | 6,974 | ||||||
Total expenses | 13,131 | 1,696 | 14,827 | |||||||||
Operating loss | (6,462 | ) | (1,391 | ) | (7,853 | ) | ||||||
Total other income/(expense), net | (34,181 | ) | 934 | (33,248 | ) | |||||||
Loss before income taxes | (40,643 | ) | (457 | ) | (41,101 | ) | ||||||
Income tax benefit | (8,965 | ) | 108 | (8,858 | ) | |||||||
Net loss before NCI | (31,678 | ) | (565 | ) | (32,243 | ) | ||||||
Net loss attributable to NCI | (7 | ) | (565 | ) | (572 | ) | ||||||
Loss from continuing operations | (31,671 | ) | 0 | (31,671 | ) | |||||||
Loss from discontinued operations, net of taxes | (632 | ) | 0 | (632 | ) | |||||||
Net loss | $ | (32,303 | ) | $ | 0 | $ | (32,303 | ) |
Nine Months Ended September 30, 2019 | ||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||
Total revenues | $ | 8,737 | $ | (526 | ) | $ | 8,211 | |||||
Total expenses | 18,102 | 1,257 | 19,359 | |||||||||
Operating loss | (9,365 | ) | (1,783 | ) | (11,148 | ) | ||||||
Total other income, net | 47,736 | 4,015 | 51,751 | |||||||||
Income before income taxes | 38,371 | 2,232 | 40,603 | |||||||||
Income tax expense | 8,064 | 0 | 8,064 | |||||||||
Net income before NCI | 30,307 | 2,232 | 32,539 | |||||||||
Net income/(loss) attributable to NCI | 0 | 2,232 | 2,232 | |||||||||
Income from continuing operations | 30,307 | 0 | 30,307 | |||||||||
Loss from discontinued operations, net of taxes | (2,141 | ) | 0 | (2,141 | ) | |||||||
Net income | $ | 28,166 | $ | 0 | $ | 28,166 |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | |||||||||||||
Cash and cash equivalents | $ | 1,986 | $ | 2,560 | $ | 4,027 | $ | 2,224 | ||||||||
Investments in securities | 9,255 | 7,253 | 22,521 | 18,454 | ||||||||||||
Receivable from brokers | 473 | 553 | 1,491 | 2,601 | ||||||||||||
Other assets | - | (11 | ) | |||||||||||||
Investments in partnerships and affiliates | 8,022 | 8,363 | ||||||||||||||
Accrued expenses and other liabilities | (41 | ) | (31 | ) | (823 | ) | (329 | ) | ||||||||
Nonredeemable noncontrolling interests | (2,072 | ) | 0 | |||||||||||||
Redeemable noncontrolling interests | (447 | ) | (419 | ) | (10,292 | ) | (9,592 | ) | ||||||||
AC Group's net interests in consolidated VIE | $ | 11,226 | $ | 9,905 | ||||||||||||
AC Group’s net interests in consolidated VIEs | $ | 22,874 | $ | 21,721 |
September 30, 2020 | December 31, 2019 | |||||||
Cash and cash equivalents | $ | 7,496 | $ | 10,943 | ||||
Investments in securities | 88,615 | 99,231 | ||||||
Receivable from brokers | 13,052 | 13,790 | ||||||
Investments in government securities held in trust | 175,002 | 0 | ||||||
Other assets | 82 | 28 | ||||||
Securities sold, not yet purchased | (6,430 | ) | (11,794 | ) | ||||
Accrued expenses and other liabilities | (9,842 | ) | (10,665 | ) | ||||
Redeemable noncontrolling interests | (193,873 | ) | (40,792 | ) | ||||
AC Group’s net interests in consolidated VOEs | $ | 74,102 | $ | 60,741 |
September 30, 2019 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||
Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Investments Using NAV as Fair Value (a) | Other Assets Not Held at Fair Value (b) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||||||||||||
Cash equivalents | $ | 349,848 | $ | - | $ | - | $ | - | $ | - | $ | 349,848 | $ | 39,552 | $ | 0 | $ | 0 | $ | 39,552 | ||||||||||||||||||||
Investments in partnerships | - | - | - | 139,401 | 4,257 | 143,658 | ||||||||||||||||||||||||||||||||||
Investments in securities (including GBL stock): | ||||||||||||||||||||||||||||||||||||||||
Gov't obligations | 29,335 | - | - | 29,335 | ||||||||||||||||||||||||||||||||||||
Investments in government securities: | ||||||||||||||||||||||||||||||||||||||||
Trading - Gov’t securities | 330,942 | 330,942 | ||||||||||||||||||||||||||||||||||||||
Total investments in government securities | 330,942 | 0 | 0 | 330,942 | ||||||||||||||||||||||||||||||||||||
Investments in equity securities (including GBL stock): | ||||||||||||||||||||||||||||||||||||||||
Common stocks | 268,361 | 501 | 89 | - | - | 268,951 | 198,266 | 7,111 | 36 | 205,413 | ||||||||||||||||||||||||||||||
Mutual funds | 1,137 | - | - | - | - | 1,137 | 1,128 | 0 | 0 | 1,128 | ||||||||||||||||||||||||||||||
Other | 316 | 88 | 4,209 | - | - | 4,613 | 1,269 | 771 | 5,005 | 7,045 | ||||||||||||||||||||||||||||||
Total investments in securities | 299,149 | 589 | 4,298 | - | - | 304,036 | ||||||||||||||||||||||||||||||||||
Total investments in equity securities | 200,663 | 7,882 | 5,041 | 213,586 | ||||||||||||||||||||||||||||||||||||
Investments in affiliated registered investment companies: | Investments in affiliated registered investment companies: | |||||||||||||||||||||||||||||||||||||||
Closed-end funds | 95,017 | - | - | - | - | 95,017 | 87,307 | 0 | 0 | 87,307 | ||||||||||||||||||||||||||||||
Mutual funds | 57,436 | - | - | - | - | 57,436 | 59,084 | 0 | 0 | 59,084 | ||||||||||||||||||||||||||||||
Total investments in affiliated registered investment companies | 152,453 | - | - | - | - | 152,453 | 146,391 | 0 | 0 | 146,391 | ||||||||||||||||||||||||||||||
Total investments | 451,602 | 589 | 4,298 | 139,401 | 4,257 | 600,147 | ||||||||||||||||||||||||||||||||||
Total investments held at fair value | 677,996 | 7,882 | 5,041 | 690,919 | ||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 801,450 | $ | 589 | $ | 4,298 | $ | 139,401 | $ | 4,257 | $ | 949,995 | $ | 717,548 | $ | 7,882 | $ | 5,041 | $ | 730,471 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Common stocks | $ | 25,402 | $ | - | $ | - | $ | - | $ | - | $ | 25,402 | $ | 11,661 | $ | 0 | $ | 0 | $ | 11,661 | ||||||||||||||||||||
Other | - | 73 | - | - | - | 73 | 461 | 705 | 0 | 1,166 | ||||||||||||||||||||||||||||||
Securities sold, not yet purchased | $ | 25,402 | $ | 73 | $ | - | $ | - | $ | - | $ | 25,475 | $ | 12,122 | $ | 705 | $ | 0 | $ | 12,827 |
December 31, 2019 | ||||||||||||||||
Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash equivalents | $ | 343,428 | $ | 0 | $ | 0 | $ | 343,428 | ||||||||
Investments in government securities: | ||||||||||||||||
Trading - Gov’t securities | 29,037 | 0 | 0 | 29,037 | ||||||||||||
Total investments in government securities | 29,037 | 0 | 0 | 29,037 | ||||||||||||
Investments in equity securities (including GBL stock): | ||||||||||||||||
Common stocks | 257,520 | 4,444 | 89 | 262,562 | ||||||||||||
Mutual funds | 2,196 | 0 | 0 | 2,196 | ||||||||||||
Other | 2,428 | 509 | 4,134 | 6,562 | ||||||||||||
Total investments in equity securities | 262,144 | 4,953 | 4,223 | 271,320 | ||||||||||||
Investments in affiliated registered investment companies: | ||||||||||||||||
Closed-end funds | 99,834 | 0 | 0 | 99,834 | ||||||||||||
Mutual funds | 59,477 | 0 | 0 | 59,477 | ||||||||||||
Total investments in affiliated registered investment companies | 159,311 | 0 | 0 | 159,311 | ||||||||||||
Total investments held at fair value | 450,492 | 4,953 | 4,223 | 459,668 | ||||||||||||
Total assets at fair value | $ | 793,920 | $ | 4,953 | $ | 4,223 | $ | 803,096 | ||||||||
Liabilities | ||||||||||||||||
Common stocks | $ | 16,300 | $ | 0 | $ | 0 | $ | 16,300 | ||||||||
Other | 0 | 119 | 0 | 119 | ||||||||||||
Securities sold, not yet purchased | $ | 16,300 | $ | 119 | $ | 0 | $ | 16,419 |
December 31, 2018 | ||||||||||||||||||||||||
Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Investments Using NAV as Fair Value (a) | Other Assets Not Held at Fair Value (b) | Total | ||||||||||||||||||
Cash equivalents | $ | 407,239 | $ | - | $ | - | $ | - | $ | - | $ | 407,239 | ||||||||||||
Investments in partnerships | - | - | - | 114,449 | 4,280 | 118,729 | ||||||||||||||||||
Investments in securities (including GBL stock): | ||||||||||||||||||||||||
Gov't obligations | 11,707 | - | - | - | - | 11,707 | ||||||||||||||||||
Common stocks | 205,978 | 7,161 | 12 | - | - | 213,151 | ||||||||||||||||||
Mutual funds | 1,161 | - | - | - | - | 1,161 | ||||||||||||||||||
Other | 19 | 464 | 3,458 | - | - | 3,941 | ||||||||||||||||||
Total investments in securities | 218,865 | 7,625 | 3,470 | - | - | 229,960 | ||||||||||||||||||
Investments in affiliated registered investment companies: | ||||||||||||||||||||||||
Closed-end funds | 85,090 | - | - | - | - | 85,090 | ||||||||||||||||||
Mutual funds | 57,045 | - | - | - | - | 57,045 | ||||||||||||||||||
Total investments in affiliated registered investment companies | 142,135 | - | - | - | - | 142,135 | ||||||||||||||||||
Total investments | 361,000 | 7,625 | 3,470 | 114,449 | 4,280 | 490,824 | ||||||||||||||||||
Total assets at fair value | $ | 768,239 | $ | 7,625 | $ | 3,470 | $ | 114,449 | $ | 4,280 | $ | 898,063 | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Common stocks | $ | 9,485 | $ | - | $ | - | $ | - | $ | - | $ | 9,485 | ||||||||||||
Other | - | 89 | - | - | - | 89 | ||||||||||||||||||
Securities sold, not yet purchased | $ | 9,485 | $ | 89 | $ | - | $ | - | $ | - | $ | 9,574 |
Three months ended September 30, 2019 | Three months ended September 30, 2018 | Three months ended September 30, 2020 | Three months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Common Stocks | Other | Total | Common Stocks | Other | Total | Common Stocks | Other | Total | Common Stocks | Other | Total | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 191 | $ | 4,255 | $ | 4,446 | $ | 590 | $ | 4,465 | $ | 5,055 | $ | 36 | $ | 4,988 | $ | 5,024 | $ | 191 | $ | 4,255 | $ | 4,446 | ||||||||||||||||||||||||
Total gains/(losses) | (102 | ) | (46 | ) | (148 | ) | 2 | 2 | 4 | 0 | 17 | 17 | (102 | ) | (46 | ) | (148 | ) | ||||||||||||||||||||||||||||||
Purchases | - | - | - | - | 15 | 15 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Sales | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Transfers | - | - | - | (580 | ) | 53 | (527 | ) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 89 | $ | 4,209 | $ | 4,298 | $ | 12 | $ | 4,535 | $ | 4,547 | $ | 36 | $ | 5,005 | $ | 5,041 | $ | 89 | $ | 4,209 | $ | 4,298 | ||||||||||||||||||||||||
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date | $ | (102 | ) | $ | (46 | ) | $ | (148 | ) | $ | 2 | $ | 2 | $ | 4 | $ | 0 | $ | 17 | $ | 17 | $ | (102 | ) | $ | (46 | ) | $ | (148 | ) |
Nine months ended September 30, 2020 | Nine months ended September 30, 2019 | |||||||||||||||||||||||
Common Stocks | Other | Total | Common Stocks | Other | Total | |||||||||||||||||||
Beginning balance | $ | 89 | $ | 4,134 | $ | 4,223 | $ | 12 | $ | 3,458 | $ | 3,470 | ||||||||||||
Consolidated fund | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total gains/(losses) | (53 | ) | (6 | ) | (59 | ) | 14 | 751 | 765 | |||||||||||||||
Purchases | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Sales | 0 | (41 | ) | (41 | ) | 0 | 0 | 0 | ||||||||||||||||
Transfers | 0 | 918 | 918 | 63 | 0 | 63 | ||||||||||||||||||
Ending balance | $ | 36 | $ | 5,005 | $ | 5,041 | $ | 89 | $ | 4,209 | $ | 4,298 | ||||||||||||
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date | $ | (53 | ) | $ | (18 | ) | $ | (71 | ) | $ | 14 | $ | 751 | $ | 765 |
Nine months ended September 30, 2019 | Nine months ended September 30, 2018 | |||||||||||||||||||||||
Common Stocks | Other | Total | Common Stocks | Other | Total | |||||||||||||||||||
Beginning balance | $ | 12 | $ | 3,458 | $ | 3,470 | $ | 618 | $ | 1,169 | $ | 1,787 | ||||||||||||
Consolidated fund | 984 | 984 | ||||||||||||||||||||||
Total gains/(losses) | 14 | 751 | 765 | (1 | ) | (2,413 | ) | (2,414 | ) | |||||||||||||||
Purchases | - | - | - | - | 4,773 | 4,773 | ||||||||||||||||||
Sales | - | - | - | - | (31 | ) | (31 | ) | ||||||||||||||||
Transfers | 63 | - | 63 | (605 | ) | 53 | (552 | ) | ||||||||||||||||
Ending balance | $ | 89 | $ | 4,209 | $ | 4,298 | $ | 12 | $ | 4,535 | $ | 4,547 | ||||||||||||
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date | $ | 14 | $ | 751 | $ | 765 | $ | - | $ | (2,429 | ) | $ | (2,429 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(amounts in thousands, except per share amounts) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Basic: | ||||||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ | 5,951 | $ | (7,379 | ) | $ | 28,166 | $ | (17,784 | ) | ||||||
Weighted average shares outstanding | 22,514 | 22,979 | 22,550 | 23,187 | ||||||||||||
Basic net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share | $ | 0.26 | $ | (0.32 | ) | $ | 1.25 | $ | (0.77 | ) | ||||||
Diluted: | ||||||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ | 5,951 | $ | (7,379 | ) | $ | 28,166 | $ | (17,784 | ) | ||||||
Weighted average share outstanding | 22,514 | 22,979 | 22,550 | 23,187 | ||||||||||||
Dilutive restricted stock awards | - | - | - | - | ||||||||||||
Total | 22,514 | 22,979 | 22,550 | 23,187 | ||||||||||||
Diluted net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share | $ | 0.26 | $ | (0.32 | ) | $ | 1.25 | $ | (0.77 | ) |
Three Months Ending September 30, | ||||||||
(In thousands, except per share amounts) | 2020 | 2019 | ||||||
Basic: | ||||||||
Income from continuing operations | $ | 5,954 | $ | 6,252 | ||||
Loss from discontinued operations, net of taxes | (139 | ) | (301 | ) | ||||
Net income attributable to Associated Capital Group, Inc.’s shareholders | $ | 5,815 | $ | 5,951 | ||||
Weighted average shares outstanding | 22,354 | 22,514 | ||||||
Basic net income per share attributable to Associated Capital Group, Inc.’s shareholders: | ||||||||
Continuing operations | $ | 0.27 | $ | 0.27 | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Total | $ | 0.26 | $ | 0.26 | ||||
Diluted: | ||||||||
Income from continuing operations | $ | 5,954 | $ | 6,252 | ||||
Loss from discontinued operations, net of taxes | (139 | ) | (301 | ) | ||||
Net income attributable to Associated Capital Group, Inc.’s shareholders | $ | 5,815 | $ | 5,951 | ||||
Weighted average share outstanding | 22,354 | 22,514 | ||||||
Diluted net income per share attributable to Associated Capital Group, Inc.'s shareholders: | ||||||||
Continuing operations | $ | 0.27 | $ | 0.27 | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Total | $ | 0.26 | $ | 0.26 | ||||
Nine Months Ending September 30, | ||||||||
(In thousands, except per share amounts) | 2020 | 2019 | ||||||
Basic: | ||||||||
Income/(loss) from continuing operations | $ | (31,671 | ) | $ | 30,307 | |||
Loss from discontinued operations, net of taxes | (632 | ) | (2,141 | ) | ||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | (32,303 | ) | $ | 28,166 | |||
Weighted average shares outstanding | 22,391 | 22,550 | ||||||
Basic net income per share attributable to Associated Capital Group, Inc.’s shareholders: | ||||||||
Continuing operations | $ | (1.41 | ) | $ | 1.34 | |||
Discontinued operations | (0.03 | ) | (0.09 | ) | ||||
Total | $ | (1.44 | ) | $ | 1.25 | |||
Diluted: | ||||||||
Income from continuing operations | $ | (31,671 | ) | $ | 30,307 | |||
Income/(loss) from discontinued operations, net of taxes | (632 | ) | (2,141 | ) | ||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | (32,303 | ) | $ | 28,166 | |||
Weighted average share outstanding | 22,391 | 22,550 | ||||||
Diluted net income per share attributable to Associated Capital Group, Inc.'s shareholders: | ||||||||
Continuing operations | $ | (1.41 | ) | $ | 1.34 | |||
Discontinued operations | (0.03 | ) | (0.09 | ) | ||||
Total | $ | (1.44 | ) | $ | 1.25 |
H. | Stockholders’ Equity |
I. | Goodwill and Identifiable Intangible Assets |
J. | Commitments and Contingencies |
K. | Discontinued Operations |
Three Months Ended September 30, (1) | Nine Months Ended September 30, (1) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues | ||||||||||||||||
Institutional research services | $ | 446 | $ | 2,354 | $ | 2,924 | $ | 6,343 | ||||||||
Other | 37 | 10 | 36 | 37 | ||||||||||||
Total revenues | 483 | 2,364 | 2,960 | 6,380 | ||||||||||||
Expenses | ||||||||||||||||
Compensation | 296 | 1,993 | 2,276 | 6,956 | ||||||||||||
Other operating expenses | 266 | 787 | 1,699 | 2,312 | ||||||||||||
Total expenses | 562 | 2,780 | 3,975 | 9,268 | ||||||||||||
Operating loss | (79 | ) | (416 | ) | (1,015 | ) | (2,888 | ) | ||||||||
Other income (expense) | ||||||||||||||||
Net loss from investments | (5 | ) | (7 | ) | (8 | ) | (7 | ) | ||||||||
Interest and dividend income | 2 | 38 | 81 | 158 | ||||||||||||
Total other income (expense), net | (3 | ) | 31 | 73 | 151 | |||||||||||
Income/(loss) from discontinued operations before income taxes | (82 | ) | (385 | ) | (942 | ) | (2,737 | ) | ||||||||
Income tax provision/(benefit) | 62 | (84 | ) | (205 | ) | (596 | ) | |||||||||
Income/(loss) from discontinued operations, net of taxes | (144 | ) | (301 | ) | (737 | ) | (2,141 | ) | ||||||||
Net income/(loss) attributable to noncontrolling interests | (5 | ) | 0 | (105 | ) | 0 | ||||||||||
Net income/(loss) attributable to GAMCO Investors, Inc.'s discontinued operations, net of taxes | $ | (139 | ) | $ | (301 | ) | $ | (632 | ) | $ | (2,141 | ) |
December 31, 2019 | ||||
Cash and cash equivalents | $ | 6,587 | ||
Receivable from brokers | 1,009 | |||
Receivable from affiliates | 31 | |||
Deferred tax assets | 184 | |||
Other assets | 326 | |||
Total assets of discontinued operations | 8,137 | |||
Income taxes payable | 54 | |||
Compensation payable | 710 | |||
Accrued expenses and other liabilities | 1,336 | |||
Total liabilities of discontinued operations | 2,100 | |||
Noncontrolling interests from discontinued operations | 1,003 | |||
Net assets of discontinued operations | $ | 5,034 |
Decrease in additional paid-in capital | $ | (4,403 | ) | |
Decrease in noncontrolling interest | (903 | ) | ||
Total | $ | (5,306 | ) |
L. | Subsequent Events |
ITEM 2: | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (INCLUDING QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK) (“MD&A”) |
(in thousands, except per share data) | Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Investment advisory and incentive fees | $ | 2,753 | $ | 2,805 | $ | 8,199 | $ | 7,949 | $ | 1,865 | $ | 2,753 | $ | 6,424 | $ | 8,199 | ||||||||||||||||
Institutional research services | 2,354 | 1,855 | 6,343 | 6,179 | ||||||||||||||||||||||||||||
Other | 11 | 6 | 49 | 37 | 80 | 1 | 550 | 12 | ||||||||||||||||||||||||
Total revenues | 5,118 | 4,666 | 14,591 | 14,165 | 1,945 | 2,754 | 6,974 | 8,211 | ||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Compensation | 4,808 | 5,618 | 16,288 | 17,812 | 3,026 | 3,071 | 8,405 | 10,287 | ||||||||||||||||||||||||
Stock-based compensation | 256 | 289 | 955 | 361 | ||||||||||||||||||||||||||||
Management fee | 833 | - | 3,959 | - | ||||||||||||||||||||||||||||
Other operating expenses | 2,230 | 2,258 | 7,425 | 7,187 | 2,471 | 2,276 | 6,422 | 9,072 | ||||||||||||||||||||||||
Total expenses | 8,127 | 8,165 | 28,627 | 25,360 | 5,497 | 5,347 | 14,827 | 19,359 | ||||||||||||||||||||||||
Operating loss | (3,009 | ) | (3,499 | ) | (14,036 | ) | (11,195 | ) | (3,552 | ) | (2,593 | ) | (7,853 | ) | (11,148 | ) | ||||||||||||||||
Other income/(expense) | ||||||||||||||||||||||||||||||||
Net gain/(loss) from investments | 7,606 | (7,977 | ) | 42,351 | (18,936 | ) | 15,603 | 7,613 | (34,770 | ) | 42,358 | |||||||||||||||||||||
Interest and dividend income | 2,618 | 3,466 | 9,699 | 9,338 | 1,218 | 2,581 | 4,675 | 9,541 | ||||||||||||||||||||||||
Interest expense | (69 | ) | (70 | ) | (148 | ) | (142 | ) | (32 | ) | (70 | ) | (146 | ) | (148 | ) | ||||||||||||||||
Shareholder-designated contribution | (2,782 | ) | - | (3,007 | ) | - | ||||||||||||||||||||||||||
Total other income/(expense), net | 10,155 | (4,581 | ) | 51,902 | (9,740 | ) | 14,007 | 10,124 | (33,248 | ) | 51,751 | |||||||||||||||||||||
Income/(loss) before income taxes | 7,146 | (8,080 | ) | 37,866 | (20,935 | ) | 10,455 | 7,531 | (41,101 | ) | 40,603 | |||||||||||||||||||||
Income tax expense/(benefit) | 1,554 | (858 | ) | 7,468 | (4,204 | ) | 3,564 | 1,638 | (8,858 | ) | 8,064 | |||||||||||||||||||||
Net income/(loss) | 5,592 | (7,222 | ) | 30,398 | (16,731 | ) | ||||||||||||||||||||||||||
Net income/(loss) attributable to noncontrolling interests | (359 | ) | 157 | 2,232 | 1,053 | |||||||||||||||||||||||||||
Income/(loss) before noncontroling interests | 6,891 | 5,893 | (32,243 | ) | 32,539 | |||||||||||||||||||||||||||
Income/(loss) attributable to noncontrolling interests | 937 | (359 | ) | (572 | ) | 2,232 | ||||||||||||||||||||||||||
Income/(loss from continuing operations | 5,954 | 6,252 | (31,671 | ) | 30,307 | |||||||||||||||||||||||||||
Income/(loss) from discontinued operations, net of taxes | (139 | ) | (301 | ) | (632 | ) | (2,141 | ) | ||||||||||||||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ | 5,951 | $ | (7,379 | ) | $ | 28,166 | $ | (17,784 | ) | $ | 5,815 | $ | 5,951 | $ | (32,303 | ) | $ | 28,166 | |||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share: | ||||||||||||||||||||||||||||||||
Basic- Continuing operations | $ | 0.27 | $ | 0.27 | $ | (1.41 | ) | $ | 1.34 | |||||||||||||||||||||||
Basic - Discontinued operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.09 | ) | ||||||||||||||||||||||||
Basis - Total | $ | 0.26 | $ | 0.26 | $ | (1.44 | ) | $ | 1.25 | |||||||||||||||||||||||
Diluted- Continuing operations | $ | 0.27 | $ | 0.27 | $ | (1.41 | ) | $ | 1.34 | |||||||||||||||||||||||
Diluted - Discontinued operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.09 | ) | ||||||||||||||||||||||||
Diluted - Total | $ | 0.26 | $ | 0.26 | $ | (1.44 | ) | $ | 1.25 | |||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.26 | $ | (0.32 | ) | $ | 1.25 | $ | (0.77 | ) | 22,354 | 22,514 | 22,391 | 22,550 | ||||||||||||||||||
Diluted | 0.26 | (0.32 | ) | 1.25 | (0.77 | ) | 22,354 | 22,514 | 22,391 | 22,550 | ||||||||||||||||||||||
Actual shares outstanding - end of period | 22,333 | 22,496 | 22,333 | 22,496 |
% Change From | % Change From | |||||||||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | September 30, 2018 | December 31, 2018 | September 30, 2018 | September 30, 2020 | December 31, 2019 | September 30, 2019 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||
Event Merger Arbitrage | $ | 1,466 | $ | 1,342 | $ | 1,466 | 9.2 | - | $ | 1,091 | $ | 1,525 | $ | 1,466 | (28.5 | ) | (25.6 | ) | ||||||||||||||||||||||
Event-Driven Value | 128 | 118 | 89 | 8.5 | 43.8 | 105 | 132 | 128 | (20.5 | ) | (18.0 | ) | ||||||||||||||||||||||||||||
Other | 57 | 60 | 64 | (5.0 | ) | (10.9 | ) | 55 | 59 | 57 | (6.8 | ) | (3.5 | ) | ||||||||||||||||||||||||||
Total AUM | $ | 1,651 | $ | 1,520 | $ | 1,619 | 8.6 | 2.0 | $ | 1,251 | $ | 1,716 | $ | 1,651 | (27.1 | ) | (24.2 | ) |
June 30, 2019 | Market appreciation/ (depreciation) | Net cash flows | September 30, 2019 | June 30, 2020 | Market appreciation/ (depreciation) | Net cash flows | September 30, 2020 | |||||||||||||||||||||||||
Event Merger Arbitrage | $ | 1,422 | $ | (9 | ) | $ | 53 | $ | 1,466 | $ | 1,147 | $ | 46 | $ | (102 | ) | $ | 1,091 | ||||||||||||||
Event-Driven Value | 127 | (2 | ) | 3 | 128 | 104 | 2 | (1 | ) | 105 | ||||||||||||||||||||||
Other | 58 | (1 | ) | - | 57 | 54 | 2 | (1 | ) | 55 | ||||||||||||||||||||||
Total AUM | $ | 1,607 | $ | (12 | ) | $ | 56 | $ | 1,651 | $ | 1,305 | $ | 50 | $ | (104 | ) | $ | 1,251 |
December 31, 2018 | Market appreciation/ (depreciation) | Net cash flows | September 30, 2019 | |||||||||||||
Event Merger Arbitrage | $ | 1,342 | $ | 30 | $ | 94 | $ | 1,466 | ||||||||
Event-Driven Value | 118 | 5 | 5 | 128 | ||||||||||||
Other | 60 | 5 | (8 | ) | 57 | |||||||||||
Total AUM | $ | 1,520 | $ | 40 | $ | 91 | $ | 1,651 |
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
Cash flows provided by (used in): | ||||||||||||||||
Cash flows provided by (used in) from continuing operations: | ||||||||||||||||
Operating activities | $ | (44,828 | ) | $ | 4,617 | $ | (272,203 | ) | $ | (42,321 | ) | |||||
Investing activities | (3,591 | ) | 15,000 | (176,792 | ) | (3,591 | ) | |||||||||
Financing activities | (10,211 | ) | 36,111 | 154,211 | (10,211 | ) | ||||||||||
Net increase (decrease) | (58,630 | ) | 55,728 | |||||||||||||
Net decrease from continuing operations | (294,784 | ) | (56,123 | ) | ||||||||||||
Cash flows provided by (used in) discontinued operations | ||||||||||||||||
Operating activities | 114 | (2,507 | ) | |||||||||||||
Net decrese in cash and cash equivalents | (294,670 | ) | (58,630 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 409,564 | 293,112 | 342,001 | 398,363 | ||||||||||||
Increase in cash from consolidation | - | 47 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 350,934 | $ | 348,887 | $ | 47,331 | $ | 339,733 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Part II: | Other Information |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Repurchased | Average Price Paid Per Share, net of Commissions | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||
7/01/19 - 7/31/19 | 17,392 | $ | 37.90 | 17,392 | 1,134,432 | |||||||||||
8/01/19 - 8/31/19 | 8,574 | 35.82 | 8,574 | 1,125,858 | ||||||||||||
9/01/19 - 9/30/19 | 10,528 | 35.61 | 10,528 | 1,115,330 | ||||||||||||
Totals | 36,494 | $ | 36.75 | 36,494 |
Period | Total Number of Shares Repurchased | Average Price Paid Per Share, net of Commissions | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||||||
07/01/20 - 07/31/20 | 804 | $ | 35.94 | 804 | 980,804 | ||||||||||||
08/01/20 - 08/31/20 | 8,607 | 38.11 | 8,607 | 972,197 | |||||||||||||
09/01/20 - 09/30/20 | 20,326 | 36.62 | (a) | 20,326 | 951,871 | ||||||||||||
Totals | 29,737 | $ | 37.03 | 29,737 |
(a) Exhibits | ||
Certification of CEO pursuant to Rule 13a-14(a). | ||
Certification of CAO pursuant to Rule 13a-14(a). | ||
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 CAO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002. | ||
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 |