☒ | 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 | |
Class A Common Stock, .001 par value | ||
Class B Common Stock, .001 par value |
PART I. | FINANCIAL INFORMATION | Page |
Item 1. | 1 | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | OTHER INFORMATION * | |
Item 1. | ||
Item 2. | ||
Item 6. | ||
March 31, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (a) | $ | 358,594 | $ | 348,588 | $ | 74,405 | $ | 348,588 | ||||||||
Investments in securities (Including GBL stock with a value of $32.3 million and $57.2 million, respectively) (a) | 222,807 | 300,357 | ||||||||||||||
Investments in debt securities (a) | 319,376 | 29,037 | ||||||||||||||
Investments in equity securities (Including GBL stock with a value of $39.0 million and $57.2 million, respectively) (a) | 198,325 | 271,320 | ||||||||||||||
Investments in affiliated registered investment companies | 121,734 | 159,311 | 140,146 | 159,311 | ||||||||||||
Investments in partnerships (a) | 136,937 | 145,372 | 139,362 | 145,372 | ||||||||||||
Receivable from brokers (a) | 17,403 | 24,150 | 18,399 | 24,150 | ||||||||||||
Investment advisory fees receivable | 1,311 | 9,582 | 1,167 | 9,582 | ||||||||||||
Receivable from affiliates | 627 | 4,369 | 622 | 4,369 | ||||||||||||
Deferred tax assets (including taxes receivable of $1,297 in 2020) | 22,128 | 2,004 | ||||||||||||||
Deferred tax assets (including taxes receivable of $309 in 2020) | 11,017 | 2,004 | ||||||||||||||
Goodwill | 3,519 | 3,519 | 3,519 | 3,519 | ||||||||||||
Other assets (a) | 19,030 | 13,654 | 20,286 | 13,654 | ||||||||||||
Total assets | $ | 904,090 | $ | 1,010,906 | $ | 926,624 | $ | 1,010,906 | ||||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||||||||||
Payable to brokers | $ | 8,819 | $ | 14,889 | $ | 7,299 | $ | 14,889 | ||||||||
Income taxes payable | - | 3,676 | - | 3,676 | ||||||||||||
Compensation payable | 5,665 | 20,246 | 6,462 | 20,246 | ||||||||||||
Securities sold, not yet purchased (a) | 17,422 | 16,419 | 9,833 | 16,419 | ||||||||||||
Payable to affiliates | 637 | 483 | 388 | 483 | ||||||||||||
Accrued expenses and other liabilities (a) | 4,835 | 7,373 | 2,777 | 7,373 | ||||||||||||
Total liabilities | 37,378 | 63,086 | 26,759 | 63,086 | ||||||||||||
Redeemable noncontrolling interests (a) | 45,909 | 50,385 | 47,178 | 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; 6,589,254 and 6,569,254 shares issued, respectively; 3,390,590 and 3,452,381 shares outstanding, respectively | 6 | 6 | ||||||||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; NaN issued and outstanding | - | - | ||||||||||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized; 6,629,254 and 6,569,254 shares issued, respectively; 3,399,633 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; | - | |||||||||||||||
19,002,918 and 19,022,918 shares outstanding, respectively | 19 | 19 | ||||||||||||||
18,962,918 and 19,022,918 shares outstanding, respectively | 19 | 19 | ||||||||||||||
Additional paid-in capital | 1,003,450 | 1,003,450 | 1,003,450 | 1,003,450 | ||||||||||||
Retained earnings/(Accumulated deficit) | (74,056 | ) | (701 | ) | ||||||||||||
Treasury stock, at cost (3,198,664 and 3,116,873 shares outstanding, respectively) | (109,567 | ) | (106,342 | ) | ||||||||||||
Accumulated deficit | (41,056 | ) | (701 | ) | ||||||||||||
Treasury stock, at cost (3,229,621 and 3,116,873 shares outstanding, respectively) | (110,635 | ) | (106,342 | ) | ||||||||||||
Total Associated Capital Group, Inc. equity | 819,852 | 896,432 | 851,784 | 896,432 | ||||||||||||
Noncontrolling interests | 951 | 1,003 | 903 | 1,003 | ||||||||||||
Total equity | 820,803 | 897,435 | 852,687 | 897,435 | ||||||||||||
Total liabilities and equity | $ | 904,090 | $ | 1,010,906 | $ | 926,624 | $ | 1,010,906 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Investment advisory and incentive fees | $ | 2,700 | $ | 2,733 | $ | 1,859 | $ | 2,713 | $ | 4,559 | $ | 5,446 | ||||||||||||
Institutional research services | 1,374 | 1,913 | 1,104 | 2,076 | 2,478 | 3,989 | ||||||||||||||||||
Other | 295 | 6 | 174 | 32 | 469 | 38 | ||||||||||||||||||
Total revenues | 4,369 | 4,652 | 3,137 | 4,821 | 7,506 | 9,473 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Compensation | 3,375 | 6,311 | 3,538 | 5,584 | 7,731 | 11,480 | ||||||||||||||||||
Management fee | - | 3,260 | ||||||||||||||||||||||
Stock-based compensation | 447 | 284 | (371 | ) | 699 | |||||||||||||||||||
Other operating expenses | 2,089 | 2,957 | 3,295 | 2,104 | 5,384 | 8,321 | ||||||||||||||||||
Total expenses | 5,464 | 12,528 | 7,280 | 7,972 | 12,744 | 20,500 | ||||||||||||||||||
Operating loss | (1,095 | ) | (7,876 | ) | (4,143 | ) | (3,151 | ) | (5,238 | ) | (11,027 | ) | ||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Net gain/(loss) from investments | (102,090 | ) | 34,979 | 51,714 | (234 | ) | (50,376 | ) | 34,745 | |||||||||||||||
Interest and dividend income | 2,310 | 3,786 | 1,227 | 3,295 | 3,537 | 7,081 | ||||||||||||||||||
Interest expense | (49 | ) | (44 | ) | (65 | ) | (35 | ) | (114 | ) | (79 | ) | ||||||||||||
Shareholder-designated contribution | (227 | ) | - | 2 | - | (225 | ) | - | ||||||||||||||||
Total other income (expense), net | (100,056 | ) | 38,721 | 52,878 | 3,026 | (47,178 | ) | 41,747 | ||||||||||||||||
Income/(loss) before income taxes | (101,151 | ) | 30,845 | 48,735 | (125 | ) | (52,416 | ) | 30,720 | |||||||||||||||
Income tax expense/(benefit) | (23,799 | ) | 6,191 | 11,110 | (277 | ) | (12,689 | ) | 5,914 | |||||||||||||||
Net income/(loss) | (77,352 | ) | 24,654 | 37,625 | 152 | (39,727 | ) | 24,806 | ||||||||||||||||
Net income/(loss) attributable to noncontrolling interests | (3,997 | ) | 1,507 | 2,388 | 1,084 | (1,609 | ) | 2,591 | ||||||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | (73,355 | ) | $ | 23,147 | $ | 35,237 | $ | (932 | ) | $ | (38,118 | ) | $ | 22,215 | |||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share: | ||||||||||||||||||||||||
Basic | $ | (3.27 | ) | $ | 1.02 | $ | 1.57 | $ | (0.04 | ) | $ | (1.70 | ) | $ | 0.98 | |||||||||
Diluted | $ | (3.27 | ) | $ | 1.02 | $ | 1.57 | $ | (0.04 | ) | $ | (1.70 | ) | $ | 0.98 | |||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||
Basic | 22,441 | 22,584 | 22,378 | 22,552 | 22,410 | 22,568 | ||||||||||||||||||
Diluted | 22,441 | 22,584 | 22,378 | 22,552 | 22,410 | 22,568 | ||||||||||||||||||
Dividends declared: | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income/(loss) | $ | (77,352 | ) | $ | 24,654 | $ | 37,625 | $ | 152 | $ | (39,727 | ) | $ | 24,806 | ||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | (3,997 | ) | 1,507 | 2,388 | 1,084 | (1,609 | ) | 2,591 | ||||||||||||||||
Comprehensive income/(loss) attributable to Associated Capital Group, Inc. | $ | (73,355 | ) | $ | 23,147 | $ | 35,237 | $ | (932 | ) | $ | (38,118 | ) | $ | 22,215 |
Associated Capital Group, Inc. shareholders | ||||||||||||||||||||||||||||
Common Stock | Retained Earnings/ (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 | - | - | - | - | - | - | (531 | ) | ||||||||||||||||||||
Net loss | - | (73,355 | ) | - | - | (52 | ) | (73,407 | ) | (3,945 | ) | |||||||||||||||||
Purchase of treasury stock | - | - | - | (3,225 | ) | - | (3,225 | ) | - | |||||||||||||||||||
Balance at March 31, 2020 | $ | 25 | $ | (74,056 | ) | $ | 1,003,450 | $ | (109,567 | ) | $ | 951 | $ | 820,803 | $ | 45,909 |
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 | - | - | - | - | - | - | (531 | ) | ||||||||||||||||||||
Net loss | - | (73,355 | ) | - | - | (52 | ) | (73,407 | ) | (3,945 | ) | |||||||||||||||||
Purchase of treasury stock | - | - | - | (3,225 | ) | - | (3,225 | ) | - | |||||||||||||||||||
Balance at March 31, 2020 | $ | 25 | $ | (74,056 | ) | $ | 1,003,450 | $ | (109,567 | ) | $ | 951 | $ | 820,803 | $ | 45,909 | ||||||||||||
Redemptions of noncontrolling interests | - | - | - | - | - | - | - | |||||||||||||||||||||
Net income/(loss) | - | 35,237 | - | - | (48 | ) | 35,189 | (1,167 | ) | |||||||||||||||||||
Dividends declared ($0.10 per share) | (2,237 | ) | - | - | (2,237 | ) | 2,436 | |||||||||||||||||||||
Purchase of treasury stock | - | - | - | (1,068 | ) | - | (1,068 | ) | - | |||||||||||||||||||
Balance at June 30, 2020 | $ | 25 | $ | (41,056 | ) | $ | 1,003,450 | $ | (110,635 | ) | $ | 903 | $ | 852,687 | $ | 47,178 |
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 | ) | - | - | - | - | - | (526 | ) | ||||||||||||||||||||||||||||||||||
Net income | - | 23,147 | - | - | 23,147 | 1,507 | - | 23,147 | - | - | 23,147 | 1,507 | ||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | (391 | ) | (391 | ) | - | - | - | - | (391 | ) | (391 | ) | - | ||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||||||||
Net income | - | (932 | ) | - | - | (932 | ) | 1,084 | ||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.10 per share) | (2,254 | ) | (2,254 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | (1,630 | ) | (1,630 | ) | - | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 25 | $ | (17,674 | ) | $ | 1,006,065 | $ | (104,228 | ) | $ | 884,188 | $ | 49,668 |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating activities | ||||||||||||||||
Net income (loss) | $ | (77,352 | ) | $ | 24,654 | $ | (39,727 | ) | $ | 24,806 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Equity in net (gains) losses from partnerships | 10,676 | (3,838 | ) | 928 | (4,064 | ) | ||||||||||
Deferred income taxes | (8,708 | ) | (3,999 | ) | ||||||||||||
Depreciation and amortization | 802 | 6 | 28 | 12 | ||||||||||||
Deferred income taxes | (21,186 | ) | - | |||||||||||||
Donated securities | 281 | 944 | 441 | 1,758 | ||||||||||||
Unrealized (gains) losses on securities | 64,337 | (20,047 | ) | 39,034 | (13,901 | ) | ||||||||||
Realized gains (losses) on sales of securities | 426 | (218 | ) | |||||||||||||
(Increase) decrease in assets: | ||||||||||||||||
Investments in securities | 50,246 | (35,098 | ) | |||||||||||||
Investments in trading securities | (245,733 | ) | (48,802 | ) | ||||||||||||
Investments in partnerships: | ||||||||||||||||
Contributions to partnerships | (3,429 | ) | (4,071 | ) | (4,229 | ) | (16,671 | ) | ||||||||
Distributions from partnerships | 1,266 | 500 | 8,110 | 1,240 | ||||||||||||
Receivable from affiliates | 3,743 | 578 | 3,748 | 683 | ||||||||||||
Receivable from brokers | 6,748 | (2,351 | ) | 5,752 | 466 | |||||||||||
Investment advisory fees receivable | 8,271 | 3,206 | 8,415 | 3,136 | ||||||||||||
Income taxes receivable | 1,062 | 2,551 | (305 | ) | - | |||||||||||
Other assets | 5,693 | 9,021 | 4,424 | 9,689 | ||||||||||||
Increase (decrease) in liabilities: | ||||||||||||||||
Payable to brokers | (6,070 | ) | 11,912 | (7,590 | ) | 3,836 | ||||||||||
Income taxes payable and deferred tax liabilities, net | (3,676 | ) | 3,645 | |||||||||||||
Income taxes payable | (3,676 | ) | 7,718 | |||||||||||||
Payable to affiliates | 154 | 620 | (95 | ) | (34 | ) | ||||||||||
Compensation payable | (14,582 | ) | (3,877 | ) | (13,785 | ) | (1,931 | ) | ||||||||
Accrued expenses and other liabilities | (367 | ) | (1,060 | ) | (2,425 | ) | 196 | |||||||||
Total adjustments | 103,969 | (37,359 | ) | (215,240 | ) | (60,886 | ) | |||||||||
Net cash provided by (used in) operating activities | $ | 26,617 | $ | (12,705 | ) | |||||||||||
Net cash used in operating activities | $ | (254,967 | ) | $ | (36,080 | ) |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Investing activities | ||||||||||||||||
Purchases of securities | $ | (193 | ) | $ | (342 | ) | $ | (226 | ) | $ | (1,024 | ) | ||||
Proceeds from sales of securities | 321 | 2,108 | 429 | 2,686 | ||||||||||||
Return of capital on securities | 349 | 571 | 865 | 732 | ||||||||||||
Purchase of building | (11,084 | ) | - | (11,084 | ) | (6,250 | ) | |||||||||
Net cash (used in) provided by investing activities | (10,607 | ) | 2,337 | |||||||||||||
Net cash used in investing activities | (10,016 | ) | (3,856 | ) | ||||||||||||
Financing activities | ||||||||||||||||
Redemptions of redeemable noncontrolling interests | (531 | ) | (526 | ) | (421 | ) | (1,590 | ) | ||||||||
Dividends paid | (2,248 | ) | (2,259 | ) | (4,486 | ) | (4,513 | ) | ||||||||
Purchase of treasury stock | (3,225 | ) | (391 | ) | (4,293 | ) | (2,021 | ) | ||||||||
Proceeds from promissory note from Executive Chairman | - | 2,124 | ||||||||||||||
Repayment of promissory note to Executive Chairman | - | (2,126 | ) | |||||||||||||
Net cash used in financing activities | (6,004 | ) | (3,176 | ) | (9,200 | ) | (8,126 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 10,006 | (13,544 | ) | |||||||||||||
Net decrease in cash and cash equivalents | (274,183 | ) | (48,062 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 348,588 | 409,764 | 348,588 | 409,564 | ||||||||||||
Increase in cash from consolidation | - | 62 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 358,594 | $ | 396,220 | $ | 74,405 | $ | 361,564 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid for interest | $ | 49 | $ | 44 | $ | 114 | $ | 79 | ||||||||
Cash paid for taxes | $ | - | $ | - | $ | - | $ | 2,200 | ||||||||
Reconciliation to cash, cash equivalents and restricted cash | ||||||||||||||||
Cash and cash equivalents | $ | 358,594 | $ | 396,020 | $ | 74,405 | $ | 361,564 | ||||||||
Restricted cash included in receivable from brokers | 200 | 200 | 200 | 200 | ||||||||||||
Cash, cash equivalents and restricted cash | $ | 358,794 | $ | 396,220 | $ | 74,605 | $ | 361,764 |
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. |
a. | Brokerage Commissions – Acting as agent, G.research buys and sells securities on behalf of its customers. Commissions are charged on the execution of securities transactions made on behalf of client accounts on an agency basis and are based on a rate schedule. G.research recognizes commission revenue when the related securities transactions are executed on trade date. G.research believes that the performance obligation is satisfied on trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to or from the customer. Commissions earned are typically collected from the clearing brokers utilized by G.research on a daily or weekly basis. |
b. | Hard dollar payments – G.research provides research services to unrelated parties, for which direct payment is received. G.research may, or may not have contracts for such services. Where a contract for such services is in place, the contractual fee for the period is recognized ratably over the contract period, which is considered the period over which G.research satisfies its performance obligation. For payments where no research contract exists, revenue is not recognized until agreement is reached with the client at which time the performance obligation is considered to have been met and revenue is recognized. |
c. | Selling concessions |
d. | Sales manager fees – G.research participates as sales manager of at-the-market offerings of certain affiliated closed-end funds and receives a tiered percentage of proceeds as stipulated in agreements between G.research, the funds and the funds’ investment adviser. G.research recognizes sales manager fees upon sale of the related closed-end funds. Sales manager fees earned are fixed and typically collected from the clearing brokers utilized by G.research on a daily or weekly basis. |
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Investment advisory and incentive fees | ||||||||
Asset-based advisory fees | $ | 1,820 | $ | 1,724 | ||||
Performance-based advisory fees | - | 13 | ||||||
Sub-advisory fees | 880 | 996 | ||||||
2,700 | 2,733 | |||||||
Institutional research services | ||||||||
Hard dollar payments | 102 | 487 | ||||||
Commissions | 937 | 1,426 | ||||||
Sales manager fees | 335 | - | ||||||
1,374 | 1,913 | |||||||
Other | ||||||||
Underwriting fees | 30 | - | ||||||
Miscellaneous | 265 | 6 | ||||||
295 | 6 | |||||||
Total | $ | 4,369 | $ | 4,652 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Investment advisory and incentive fees | ||||||||||||||||
Asset-based advisory fees | $ | 1,304 | $ | 1,761 | $ | 3,124 | $ | 3,485 | ||||||||
Performance-based advisory fees | - | 13 | - | 26 | ||||||||||||
Sub-advisory fees | 555 | 939 | 1,435 | 1,935 | ||||||||||||
1,859 | 2,713 | 4,559 | 5,446 | |||||||||||||
Institutional research services | ||||||||||||||||
Hard dollar payments | 101 | 463 | 203 | 950 | ||||||||||||
Commissions | 1,003 | 1,416 | 1,940 | 2,842 | ||||||||||||
Selling concessions | - | 197 | 335 | 197 | ||||||||||||
1,104 | 2,076 | 2,478 | 3,989 | |||||||||||||
Other | ||||||||||||||||
Underwriting fees | - | 19 | 30 | 19 | ||||||||||||
Miscellaneous | 174 | 13 | 439 | 19 | ||||||||||||
174 | 32 | 469 | 38 | |||||||||||||
Total | $ | 3,137 | $ | 4,821 | $ | 7,506 | $ | 9,473 |
March 31, 2020 | December 31, 2019 | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Debt - Trading Securities | ||||||||||||||||
Government obligations | $ | - | $ | - | $ | 28,428 | $ | 29,037 | ||||||||
Equity Securities | ||||||||||||||||
Common stocks | 284,446 | 213,374 | 271,627 | 262,562 | ||||||||||||
Mutual funds | 597 | 768 | 1,207 | 2,196 | ||||||||||||
Other investments | 11,796 | 8,665 | 7,847 | 6,562 | ||||||||||||
Total investments in securities | $ | 296,839 | $ | 222,807 | $ | 309,109 | $ | 300,357 |
June 30, 2020 | December 31, 2019 | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Debt - Trading Securities | ||||||||||||||||
Government obligations | $ | 319,323 | $ | 319,376 | $ | 28,428 | $ | 29,037 | ||||||||
Total investments in government obligations | $ | 319,323 | $ | 319,376 | $ | 28,428 | $ | 29,037 |
March 31, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||
Proceeds | Fair Value | Proceeds | Fair Value | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||
Common stocks | $ | 20,314 | $ | 16,656 | $ | 13,863 | $ | 16,300 | $ | 232,290 | $ | 189,351 | $ | 271,627 | $ | 262,562 | ||||||||||||||||
Mutual funds | 597 | 1,015 | 1,207 | 2,196 | ||||||||||||||||||||||||||||
Other investments | 53 | 766 | 13 | 119 | 9,603 | 7,959 | 7,847 | 6,562 | ||||||||||||||||||||||||
Total securities sold, not yet purchased | $ | 20,367 | $ | 17,422 | $ | 13,876 | $ | 16,419 | ||||||||||||||||||||||||
Total investments in securities | $ | 242,490 | $ | 198,325 | $ | 280,681 | $ | 271,320 |
March 31, 2020 | December 31, 2019 | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Equity securities | ||||||||||||||||
Closed-end funds | $ | 75,619 | $ | 68,696 | $ | 75,646 | $ | 99,834 | ||||||||
Mutual funds | 48,708 | 53,038 | 48,348 | 59,477 | ||||||||||||
Total investments in affiliated registered investment companies | $ | 124,327 | $ | 121,734 | $ | 123,994 | $ | 159,311 |
June 30, 2020 | December 31, 2019 | |||||||||||||||
Proceeds | Fair Value | Proceeds | Fair Value | |||||||||||||
Equity securities | ||||||||||||||||
Common stocks | $ | 8,817 | $ | 9,349 | $ | 13,863 | $ | 16,300 | ||||||||
Other investments | 194 | 484 | 13 | 119 | ||||||||||||
Total securities sold, not yet purchased | $ | 9,011 | $ | 9,833 | $ | 13,876 | $ | 16,419 |
June 30, 2020 | December 31, 2019 | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Equity securities | ||||||||||||||||
Closed-end funds | $ | 75,090 | $ | 82,240 | $ | 75,646 | $ | 99,834 | ||||||||
Mutual funds | 48,704 | 57,906 | 48,348 | 59,477 | ||||||||||||
Total investments in affiliated registered investment companies | $ | 123,794 | $ | 140,146 | $ | 123,994 | $ | 159,311 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Statement of | Statement of | Fair Value | Statement of | Fair Value | ||||||||||||||||||||||||||||||||||
Financial Condition | Financial Condition | June 30, | December 31, | Financial Condition | June 30, | December 31, | ||||||||||||||||||||||||||||||||
Location | Location | 2020 | 2019 | Location | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging | Derivatives designated as hedging | |||||||||||||||||||||||||||||||||||||
instruments under FASB ASC 815-20 | instruments under FASB ASC 815-20 | |||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Receivable from brokers | $ | - | $ | 23 | Payable to brokers | $ | 1,349 | $ | - | ||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Statement of | Fair Value | Statement of | Fair Value | |||||||||||||||||||||||||||||||||||
Financial Condition Location | March 31, 2020 | December 31, 2019 | Financial Condition Location | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under FASB ASC 815-20 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Receivable from brokers | $ | 58 | $ | 23 | Payable to brokers | $ | - | $ | - | ||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815-20 | ||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Derivatives not designated as hedging | |||||||||||||||||||||||||||||||||||||
instruments under FASB ASC 815-20 | instruments under FASB ASC 815-20 | |||||||||||||||||||||||||||||||||||||
Equity contracts | Investments in securities | $ | 76 | $ | 291 | Securities sold, not yet purchased | $ | 766 | $ | 119 | ||||||||||||||||||||||||||||
Investments in securities | Investments in securities | $ | 574 | $ | 291 | Securities sold, not yet purchased | $ | 484 | $ | 119 | ||||||||||||||||||||||||||||
Total derivatives | $ | 134 | $ | 314 | $ | 766 | $ | 119 | $ | 574 | $ | 314 | $ | 1,833 | $ | 119 |
Type of Derivative | Income Statement Location | Three Months ended March 31, | Income Statement Location | Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Foreign exchange contracts | Net gain/(loss) from investments | $ | 51 | $ | 81 | Net gain/(loss) from investments | $ | (39 | ) | $ | (13 | ) | $ | 13 | $ | 69 | |||||||||||
Equity contracts | Net gain/(loss) from investments | (86 | ) | (2,022 | ) | Net gain/(loss) from investments | 257 | 10 | (510 | ) | (2,012 | ) | |||||||||||||||
Total | $ | (35 | ) | $ | (1,941 | ) | $ | 219 | $ | (3 | ) | $ | (497 | ) | $ | (1,943 | ) |
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Assets Presented | Gross Amounts Not Offset in the Statements of Financial Condition | Gross Amounts Not Offset in the Statements of Financial Condition | ||||||||||||||||||||||||||||||||||||||||||||
Recognized Assets | Statements of Financial Condition | in the Statements of Financial Condition | Financial Instruments | Cash Collateral Received | Net Amount | 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) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2020 | $ | 76 | $ | - | $ | 76 | $ | (76 | ) | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
June 30, 2020 | $ | 574 | $ | - | $ | 574 | $ | (484 | ) | $ | - | $ | 90 | |||||||||||||||||||||||||||||||||||
December 31, 2019 | 291 | - | 291 | (119 | ) | - | 172 | 291 | - | 291 | (119 | ) | - | 172 |
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Presented | Gross Amounts Not Offset in the Statements of Financial Condition | Gross Amounts Not Offset in the Statements of Financial Condition | ||||||||||||||||||||||||||||||||||||||||||||
Recognized Liabilities | Statements of Financial Condition | in the Statements of Financial Condition | Financial Instruments | Cash Collateral Pledged | Net Amount | 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) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2020 | $ | 766 | $ | - | $ | 766 | $ | (76 | ) | $ | - | $ | 690 | |||||||||||||||||||||||||||||||||||
June 30, 2020 | $ | 484 | $ | - | $ | 484 | $ | (484 | ) | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
December 31, 2019 | 119 | - | 119 | (119 | ) | - | - | 119 | - | 119 | (119 | ) | - | - |
March 31, 2020 | June 30, 2020 | |||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | Prior to Consolidation | Consolidated Entities | As Reported | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 342,127 | $ | 16,467 | $ | 358,594 | $ | 52,396 | $ | 22,009 | $ | 74,405 | ||||||||||||
Investments in securities (including GBL stock) | 127,360 | 95,447 | 222,807 | |||||||||||||||||||||
Investments in debt securities | 299,880 | 19,496 | 319,376 | |||||||||||||||||||||
Investments in equity securities (including GBL stock) | 132,395 | 65,930 | 198,325 | |||||||||||||||||||||
Investments in affiliated investment companies | 169,133 | (47,399 | ) | 121,734 | 179,602 | (39,456 | ) | 140,146 | ||||||||||||||||
Investments in partnerships | 154,669 | (17,732 | ) | 136,937 | 159,905 | (20,543 | ) | 139,362 | ||||||||||||||||
Receivable from brokers | 4,788 | 12,615 | 17,403 | 7,205 | 11,194 | 18,399 | ||||||||||||||||||
Investment advisory fees receivable | 1,334 | (23 | ) | 1,311 | 1,193 | (26 | ) | 1,167 | ||||||||||||||||
Other assets | 45,172 | 132 | 45,304 | 35,135 | 309 | 35,444 | ||||||||||||||||||
Total assets | $ | 844,583 | $ | 59,507 | $ | 904,090 | $ | 867,711 | $ | 58,913 | $ | 926,624 | ||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Securities sold, not yet purchased | $ | 6,964 | $ | 10,458 | $ | 17,422 | $ | 3,209 | $ | 6,624 | $ | 9,833 | ||||||||||||
Accrued expenses and other liabilities | 16,816 | 3,140 | 19,956 | 11,815 | 5,111 | 16,926 | ||||||||||||||||||
Redeemable noncontrolling interests | - | 45,909 | 45,909 | - | 47,178 | 47,178 | ||||||||||||||||||
Total equity | 820,803 | - | 820,803 | 852,687 | - | 852,687 | ||||||||||||||||||
Total liabilities and equity | $ | 844,583 | $ | 59,507 | $ | 904,090 | $ | 867,711 | $ | 58,913 | $ | 926,624 | ||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 335,421 | $ | 13,167 | $ | 348,588 | ||||||||||||||||||
Investments in securities (including GBL stock) | 182,673 | 117,684 | 300,357 | |||||||||||||||||||||
Investments in affiliated investment companies | 211,024 | (51,713 | ) | 159,311 | ||||||||||||||||||||
Investments in partnerships | 167,781 | (22,409 | ) | 145,372 | ||||||||||||||||||||
Receivable from brokers | 7,759 | 16,391 | 24,150 | |||||||||||||||||||||
Investment advisory fees receivable | 9,604 | (22 | ) | 9,582 | ||||||||||||||||||||
Other assets | 23,517 | 29 | 23,546 | |||||||||||||||||||||
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 | 35,718 | 10,949 | 46,667 | |||||||||||||||||||||
Redeemable noncontrolling interests | 1 | 50,384 | 50,385 | |||||||||||||||||||||
Total equity | 897,435 | - | 897,435 | |||||||||||||||||||||
Total liabilities and equity | $ | 937,779 | $ | 73,127 | $ | 1,010,906 |
December 31, 2019 | ||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 335,421 | $ | 13,167 | $ | 348,588 | ||||||
Investments in debt 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 | 7,759 | 16,391 | 24,150 | |||||||||
Investment advisory fees receivable | 9,604 | (22 | ) | 9,582 | ||||||||
Other assets | 23,517 | 29 | 23,546 | |||||||||
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 | 35,718 | 10,949 | 46,667 | |||||||||
Redeemable noncontrolling interests | 1 | 50,384 | 50,385 | |||||||||
Total equity | 897,435 | - | 897,435 | |||||||||
Total liabilities and equity | $ | 937,779 | $ | 73,127 | $ | 1,010,906 |
Three Months Ended March 31, 2020 | Three Months Ended June 30, 2020 | |||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | Prior to Consolidation | Consolidated Entities | As Reported | |||||||||||||||||||
Total revenues | $ | 3,725 | $ | 644 | $ | 4,369 | $ | 3,304 | $ | (167 | ) | $ | 3,137 | |||||||||||
Total expenses | 5,493 | 198 | 5,464 | 6,524 | 756 | 7,280 | ||||||||||||||||||
Operating loss | (1,768 | ) | 446 | (1,095 | ) | (3,220 | ) | (923 | ) | (4,143 | ) | |||||||||||||
Total other income, net | (95,438 | ) | (4,391 | ) | (100,056 | ) | 49,519 | 3,359 | 52,878 | |||||||||||||||
Income before income taxes | (97,206 | ) | (3,945 | ) | (101,151 | ) | 46,299 | 2,436 | 48,735 | |||||||||||||||
Income tax expense | (23,799 | ) | - | (23,799 | ) | 11,110 | - | 11,110 | ||||||||||||||||
Net income before NCI | (73,407 | ) | (3,945 | ) | (77,352 | ) | 35,189 | 2,436 | 37,625 | |||||||||||||||
Net income attributable to noncontrolling interests | (52 | ) | (3,945 | ) | (3,997 | ) | ||||||||||||||||||
Net income | $ | (73,355 | ) | $ | - | $ | (73,355 | ) | ||||||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||||||||||||||
Total revenues | $ | 4,817 | $ | (165 | ) | $ | 4,652 | |||||||||||||||||
Total expenses | 11,462 | 1,066 | 12,528 | |||||||||||||||||||||
Operating loss | (6,645 | ) | (1,231 | ) | (7,876 | ) | ||||||||||||||||||
Total other income/(expense), net | 35,983 | 2,738 | 38,721 | |||||||||||||||||||||
Loss before income taxes | 29,338 | 1,507 | 30,845 | |||||||||||||||||||||
Income tax benefit | 6,191 | - | 6,191 | |||||||||||||||||||||
Net loss before NCI | 23,147 | 1,507 | 24,654 | |||||||||||||||||||||
Net loss attributable to noncontrolling interests | - | 1,507 | 1,507 | |||||||||||||||||||||
Net loss | $ | 23,147 | $ | - | $ | 23,147 | ||||||||||||||||||
Net income/(loss) attributable to noncontrolling interests | (48 | ) | 2,436 | 2,388 | ||||||||||||||||||||
Net Income | $ | 35,237 | $ | - | $ | 35,237 |
Three Months Ended June 30, 2019 | ||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||
Total revenues | $ | 5,001 | $ | (180 | ) | $ | 4,821 | |||||
Total expenses | 7,657 | 315 | 7,972 | |||||||||
Operating loss | (2,656 | ) | (495 | ) | (3,151 | ) | ||||||
Total other income, net | 1,447 | 1,579 | 3,026 | |||||||||
Income/(loss) before income taxes | (1,209 | ) | 1,084 | (125 | ) | |||||||
Income tax benefit | (277 | ) | - | (277 | ) | |||||||
Net income/(loss) before NCI | (932 | ) | 1,084 | 152 | ||||||||
Net income attributable to noncontrolling interests | - | 1,084 | 1,084 | |||||||||
Net loss | $ | (932 | ) | $ | - | $ | (932 | ) |
Six Months Ended June 30, 2020 | ||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||
Total revenues | $ | 7,029 | $ | 477 | $ | 7,506 | ||||||
Total expenses | 11,790 | 954 | 12,744 | |||||||||
Operating loss | (4,761 | ) | (477 | ) | (5,238 | ) | ||||||
Total other income/(expense), net | (46,146 | ) | (1,032 | ) | (47,178 | ) | ||||||
Loss before income taxes | (50,907 | ) | (1,509 | ) | (52,416 | ) | ||||||
Income tax benefit | (12,689 | ) | - | (12,689 | ) | |||||||
Net loss before NCI | (38,218 | ) | (1,509 | ) | (39,727 | ) | ||||||
Net loss attributable to noncontrolling interests | (100 | ) | (1,509 | ) | (1,609 | ) | ||||||
Net loss | $ | (38,118 | ) | $ | - | $ | (38,118 | ) |
Six Months Ended June 30, 2019 | ||||||||||||
Prior to Consolidation | Consolidated Entities | As Reported | ||||||||||
Total revenues | $ | 9,818 | $ | (345 | ) | $ | 9,473 | |||||
Total expenses | 19,119 | 1,381 | 20,500 | |||||||||
Operating loss | (9,301 | ) | (1,726 | ) | (11,027 | ) | ||||||
Total other income, net | 37,430 | 4,317 | 41,747 | |||||||||
Income before income taxes | 28,129 | 2,591 | 30,720 | |||||||||
Income tax expense | 5,914 | - | 5,914 | |||||||||
Net income before NCI | 22,215 | 2,591 | 24,806 | |||||||||
Net income attributable to noncontrolling interests | - | 2,591 | 2,591 | |||||||||
Net income | $ | 22,215 | $ | - | $ | 22,215 |
March 31, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | |||||||||||||
Cash and cash equivalents | $ | 2,384 | $ | 2,224 | $ | 2,840 | $ | 2,224 | ||||||||
Investments in securities | 13,570 | 18,454 | 15,344 | 18,454 | ||||||||||||
Receivable from brokers | 2,097 | 2,601 | 2,399 | 2,601 | ||||||||||||
Investments in partnerships and affiliates | 8,120 | 8,363 | 7,704 | 8,363 | ||||||||||||
Accrued expenses and other liabilities | (198 | ) | (329 | ) | (151 | ) | (329 | ) | ||||||||
Redeemable noncontrolling interests | (8,419 | ) | (9,592 | ) | (8,483 | ) | (9,592 | ) | ||||||||
AC Group’s net interests in consolidated VIEs | $ | 17,554 | $ | 21,721 | $ | 19,653 | $ | 21,721 |
March 31, 2020 | June 30, 2020 | |||||||||||||||||||||||||||||||
Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | 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 | $ | 354,434 | $ | - | $ | - | $ | 354,434 | $ | 73,075 | $ | - | $ | - | $ | 73,075 | ||||||||||||||||
Investments in securities (including GBL stock): | ||||||||||||||||||||||||||||||||
Investments in debt securities: | ||||||||||||||||||||||||||||||||
Trading - Gov’t obligations | - | - | - | - | 319,376 | 319,376 | ||||||||||||||||||||||||||
Total investments in debt securities | 319,376 | - | - | 319,376 | ||||||||||||||||||||||||||||
Investments in equity securities (including GBL stock): | ||||||||||||||||||||||||||||||||
Common stocks | 206,694 | 6,644 | 36 | 213,374 | 182,599 | 6,716 | 36 | 189,351 | ||||||||||||||||||||||||
Mutual funds | 768 | - | - | 768 | 1,015 | - | - | 1,015 | ||||||||||||||||||||||||
Other | 3,460 | 1,310 | 3,895 | 8,665 | 2,394 | 577 | 4,988 | 7,959 | ||||||||||||||||||||||||
Total investments in securities | 210,922 | 7,954 | 3,931 | 222,807 | ||||||||||||||||||||||||||||
Total investments in equity securities | 186,008 | 7,293 | 5,024 | 198,325 | ||||||||||||||||||||||||||||
Investments in affiliated registered investment companies: | ||||||||||||||||||||||||||||||||
Closed-end funds | 68,696 | - | - | 68,696 | 82,240 | - | - | 82,240 | ||||||||||||||||||||||||
Mutual funds | 53,038 | - | - | 53,038 | 57,906 | - | - | 57,906 | ||||||||||||||||||||||||
Total investments in affiliated registered investment companies | 121,734 | - | - | 121,734 | 140,146 | - | - | 140,146 | ||||||||||||||||||||||||
Total investments held at fair value | 332,656 | 7,954 | 3,931 | 344,541 | 645,530 | 7,293 | 5,024 | 657,847 | ||||||||||||||||||||||||
Total assets at fair value | $ | 687,090 | $ | 7,954 | $ | 3,931 | $ | 698,975 | $ | 718,605 | $ | 7,293 | $ | 5,024 | $ | 730,922 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Common stocks | $ | 16,656 | $ | - | $ | - | $ | 16,656 | $ | 9,349 | $ | - | $ | - | $ | 9,349 | ||||||||||||||||
Other | - | 766 | - | 766 | 123 | 361 | - | 484 | ||||||||||||||||||||||||
Securities sold, not yet purchased | $ | 16,656 | $ | 766 | $ | - | $ | 17,422 | $ | 9,472 | $ | 361 | $ | - | $ | 9,833 |
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 | $ | - | $ | - | $ | 343,428 | ||||||||
Investments in securities (including GBL stock): | ||||||||||||||||
Trading - Gov’t obligations | 29,037 | - | - | 29,037 | ||||||||||||
Common stocks | 257,520 | 4,444 | 89 | 262,562 | ||||||||||||
Mutual funds | 2,196 | - | - | 2,196 | ||||||||||||
Other | 2,428 | 509 | 4,134 | 6,562 | ||||||||||||
Total investments in securities | 291,181 | 4,953 | 4,223 | 300,357 | ||||||||||||
Investments in affiliated registered investment companies: | ||||||||||||||||
Closed-end funds | 99,834 | - | - | 99,834 | ||||||||||||
Mutual funds | 59,477 | - | - | 59,477 | ||||||||||||
Total investments in affiliated registered investment companies | 159,311 | - | - | 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 | $ | - | $ | - | $ | 16,300 | ||||||||
Other | - | 119 | - | 119 | ||||||||||||
Securities sold, not yet purchased | $ | 16,300 | $ | 119 | $ | - | $ | 16,419 |
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 | $ | - | $ | - | $ | 343,428 | ||||||||
Investments in debt securities: | ||||||||||||||||
Trading - Gov’t obligations | 29,037 | - | - | 29,037 | ||||||||||||
Total investments in debt securities | 29,037 | - | - | 29,037 | ||||||||||||
Investments in equity securities (including GBL stock): | ||||||||||||||||
Common stocks | 257,520 | 4,444 | 89 | 262,562 | ||||||||||||
Mutual funds | 2,196 | - | - | 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 | - | - | 99,834 | ||||||||||||
Mutual funds | 59,477 | - | - | 59,477 | ||||||||||||
Total investments in affiliated registered investment companies | 159,311 | - | - | 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 | $ | - | $ | - | $ | 16,300 | ||||||||
Other | - | 119 | - | 119 | ||||||||||||
Securities sold, not yet purchased | $ | 16,300 | $ | 119 | $ | - | $ | 16,419 |
Three months ended March 31, 2020 | Three months ended March 31, 2019 | Three months ended June 30, 2020 | Three months ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Common Stocks | Other | Total | Common Stocks | Other | Total | Common Stocks | Other | Total | Common Stocks | Other | Total | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 89 | $ | 4,134 | $ | 4,223 | $ | 12 | $ | 3,458 | $ | 3,470 | $ | 36 | $ | 3,895 | $ | 3,931 | $ | 33 | $ | 3,311 | $ | 3,344 | ||||||||||||||||||||||||
Consolidated fund | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total gains/(losses) | (53 | ) | (130 | ) | (183 | ) | (42 | ) | (147 | ) | (189 | ) | - | 107 | 107 | 158 | 944 | 1,102 | ||||||||||||||||||||||||||||||
Purchases | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Sales | - | - | - | - | - | - | - | (41 | ) | (41 | ) | - | - | - | ||||||||||||||||||||||||||||||||||
Transfers | - | (109 | ) | (109 | ) | 63 | - | 63 | - | 1,027 | 1,027 | - | - | - | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 36 | $ | 3,895 | $ | 3,931 | $ | 33 | $ | 3,311 | $ | 3,344 | $ | 36 | $ | 4,988 | $ | 5,024 | $ | 191 | $ | 4,255 | $ | 4,446 | ||||||||||||||||||||||||
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 | ) | $ | (130 | ) | $ | (183 | ) | $ | (42 | ) | $ | (147 | ) | $ | (189 | ) | $ | - | $ | 92 | $ | 92 | $ | 158 | $ | 944 | $ | 1,102 |
Six months ended June 30, 2020 | Six months ended June 30, 2019 | |||||||||||||||||||||||
Common Stocks | Other | Total | Common Stocks | Other | Total | |||||||||||||||||||
Beginning balance | $ | 89 | $ | 4,134 | $ | 4,223 | $ | 12 | $ | 3,458 | $ | 3,470 | ||||||||||||
Total gains/(losses) | (53 | ) | (23 | ) | (76 | ) | 116 | 797 | 913 | |||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||||||
Sales | - | (41 | ) | (41 | ) | - | - | - | ||||||||||||||||
Transfers | - | 918 | 918 | 63 | - | 63 | ||||||||||||||||||
Ending balance | $ | 36 | $ | 4,988 | $ | 5,024 | $ | 191 | $ | 4,255 | $ | 4,446 | ||||||||||||
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 | ) | $ | (35 | ) | $ | (88 | ) | $ | 116 | $ | 797 | $ | 913 |
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||
(amounts in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Basic: | ||||||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | (73,355 | ) | $ | 23,147 | $ | 35,237 | $ | (932 | ) | ||||||
Weighted average shares outstanding | 22,441 | 22,584 | 22,378 | 22,552 | ||||||||||||
Basic net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share | $ | (3.27 | ) | $ | 1.02 | $ | 1.57 | $ | (0.04 | ) | ||||||
Diluted: | ||||||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | (73,355 | ) | $ | 23,147 | $ | 35,237 | $ | (932 | ) | ||||||
Weighted average share outstanding | 22,441 | 22,584 | 22,378 | 22,552 | ||||||||||||
Total | 22,378 | 22,552 | ||||||||||||||
Diluted net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share | $ | (3.27 | ) | $ | 1.02 | $ | 1.57 | $ | (0.04 | ) |
Six Months Ended June 30, | ||||||||
(amounts in thousands, except per share amounts) | 2020 | 2019 | ||||||
Basic: | ||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | (38,118 | ) | $ | 22,215 | |||
Weighted average shares outstanding | 22,410 | 22,568 | ||||||
Basic net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share | $ | (1.70 | ) | $ | 0.98 | |||
Diluted: | ||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | (38,118 | ) | $ | 22,215 | |||
Weighted average share outstanding | 22,410 | 22,568 | ||||||
Total | 22,410 | 22,568 | ||||||
Diluted net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share | $ | (1.70 | ) | $ | 0.98 |
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 March 31, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Investment advisory and incentive fees | $ | 2,700 | $ | 2,733 | $ | 1,859 | $ | 2,713 | $ | 4,559 | $ | 5,446 | ||||||||||||
Institutional research services | 1,374 | 1,913 | 1,104 | 2,076 | 2,478 | 3,989 | ||||||||||||||||||
Other | 295 | 6 | 174 | 32 | 469 | 38 | ||||||||||||||||||
Total revenues | 4,369 | 4,652 | 3,137 | 4,821 | 7,506 | 9,473 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Compensation | 4,193 | 5,896 | 3,538 | 5,584 | 7,731 | 11,480 | ||||||||||||||||||
Stock-based compensation | (818 | ) | 415 | 447 | 284 | (371 | ) | 699 | ||||||||||||||||
Management fee | - | 3,260 | ||||||||||||||||||||||
Other operating expenses | 2,089 | 2,957 | 3,295 | 2,104 | 5,384 | 8,321 | ||||||||||||||||||
Total expenses | 5,464 | 12,528 | 7,280 | 7,972 | 12,744 | 20,500 | ||||||||||||||||||
Operating loss | (1,095 | ) | (7,876 | ) | (4,143 | ) | (3,151 | ) | (5,238 | ) | (11,027 | ) | ||||||||||||
Other income/(expense) | ||||||||||||||||||||||||
Net gain/(loss) from investments | (102,090 | ) | 34,979 | 51,714 | (234 | ) | (50,376 | ) | 34,745 | |||||||||||||||
Interest and dividend income | 2,310 | 3,786 | 1,227 | 3,295 | 3,537 | 7,081 | ||||||||||||||||||
Interest expense | (49 | ) | (44 | ) | (65 | ) | (35 | ) | (114 | ) | (79 | ) | ||||||||||||
Shareholder-designated contribution | (227 | ) | - | 2 | - | (225 | ) | - | ||||||||||||||||
Total other income/(expense), net | (100,056 | ) | 38,721 | 52,878 | 3,026 | (47,178 | ) | 41,747 | ||||||||||||||||
Income/(loss) before income taxes | (101,151 | ) | 30,845 | 48,735 | (125 | ) | (52,416 | ) | 30,720 | |||||||||||||||
Income tax expense/(benefit) | (23,799 | ) | 6,191 | 11,110 | (277 | ) | (12,689 | ) | 5,914 | |||||||||||||||
Net income/(loss) | (77,352 | ) | 24,654 | 37,625 | 152 | (39,727 | ) | 24,806 | ||||||||||||||||
Net income/(loss) attributable to noncontrolling interests | (3,997 | ) | 1,507 | 2,388 | 1,084 | (1,609 | ) | 2,591 | ||||||||||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders | $ | (73,355 | ) | $ | 23,147 | $ | 35,237 | $ | (932 | ) | $ | (38,118 | ) | $ | 22,215 | |||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share: | ||||||||||||||||||||||||
Basic | $ | (3.27 | ) | $ | 1.02 | $ | 1.57 | $ | (0.04 | ) | $ | (1.70 | ) | $ | 0.98 | |||||||||
Diluted | $ | (3.27 | ) | $ | 1.02 | $ | 1.57 | $ | (0.04 | ) | $ | (1.70 | ) | $ | 0.98 |
% Change From | % Change From | |||||||||||||||||||||||||||||||||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | December 31, 2019 | March 31, 2019 | June 30, 2020 | December 31, 2019 | June 30, 2019 | December 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||
Event Merger Arbitrage | $ | 1,312 | $ | 1,525 | $ | 1,401 | (14.0 | ) | (6.4 | ) | $ | 1,147 | $ | 1,525 | $ | 1,422 | (24.8 | ) | (19.3 | ) | ||||||||||||||||||||
Event-Driven Value | 112 | 132 | 127 | (15.2 | ) | (11.8 | ) | 104 | 132 | 127 | (21.2 | ) | (18.1 | ) | ||||||||||||||||||||||||||
Other | 49 | 59 | 63 | (16.9 | ) | (22.2 | ) | 54 | 59 | 58 | (8.5 | ) | (6.9 | ) | ||||||||||||||||||||||||||
Total AUM | $ | 1,473 | $ | 1,716 | $ | 1,591 | (14.2 | ) | (7.4 | ) | $ | 1,305 | $ | 1,716 | $ | 1,607 | (24.0 | ) | (18.8 | ) |
December 31, 2019 | Market appreciation/ (depreciation) | Net cash flows | March 31, 2020 | March 31, 2020 | Market appreciation/ (depreciation) | Net cash flows | June 30, 2020 | |||||||||||||||||||||||||
Event Merger Arbitrage | $ | 1,525 | $ | (122 | ) | $ | (91 | ) | $ | 1,312 | $ | 1,312 | $ | 83 | $ | (248 | ) | $ | 1,147 | |||||||||||||
Event-Driven Value | 132 | (23 | ) | 3 | 112 | 112 | 8 | (16 | ) | 104 | ||||||||||||||||||||||
Other | 59 | (9 | ) | (1 | ) | 49 | 49 | 6 | (1 | ) | 54 | |||||||||||||||||||||
Total AUM | $ | 1,716 | $ | (154 | ) | $ | (89 | ) | $ | 1,473 | $ | 1,473 | $ | 97 | $ | (265 | ) | $ | 1,305 |
Three months ended March 31, | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cash flows provided by (used in): | ||||||||||||||||
Operating activities | $ | 26,617 | $ | (12,705 | ) | $ | (254,967 | ) | $ | (36,080 | ) | |||||
Investing activities | (10,607 | ) | 2,337 | (10,016 | ) | (3,856 | ) | |||||||||
Financing activities | (6,004 | ) | (3,176 | ) | (9,200 | ) | (8,126 | ) | ||||||||
Net increase (decrease) | 10,006 | (13,544 | ) | (274,183 | ) | (48,062 | ) | |||||||||
Cash and cash equivalents at beginning of period | 348,588 | 409,564 | 348,588 | 409,564 | ||||||||||||
Increase in cash from consolidation | - | 62 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 358,594 | $ | 396,020 | $ | 74,405 | $ | 361,564 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. |
Item 2. |
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 | ||||||||||||
01/01/20 - 01/31/20 | 17,929 | $ | 46.46 | 17,929 | 1,076,427 | |||||||||||
02/01/20 - 02/29/20 | 33,452 | 41.51 | 33,452 | 1,042,975 | ||||||||||||
03/01/20 - 03/31/20 | 30,410 | 33.01 | 30,410 | 1,012,565 | ||||||||||||
Totals | 81,791 | $ | 39.43 | 81,791 |
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 | ||||||||||||
04/01/20 - 04/30/20 | 6,049 | $ | 34.77 | 6,049 | 1,006,516 | |||||||||||
05/01/20 - 05/31/20 | 16,622 | 34.33 | 16,622 | 989,894 | ||||||||||||
06/01/20 - 06/30/20 | 8,286 | 34.66 | 8,286 | 981,608 | ||||||||||||
Totals | 30,957 | $ | 34.51 | 30,957 |
Item 6. |
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 | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |