Exhibit 99.1
Schedule I
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF INCOME
(Parent company only)
(In thousands, except per share data)
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Revenues | ||||||||||||
Distribution fees and other income | $ | 26,860 | $ | 29,611 | $ | 26,785 | ||||||
Total revenues | 26,860 | 29,611 | 26,785 | |||||||||
Expenses | ||||||||||||
Compensation | 3,550 | 4,005 | 4,126 | |||||||||
Stock based compensation | 9,868 | 5,278 | 1,562 | |||||||||
Management fee benefit | (2,209 | ) | (1,076 | ) | (3,690 | ) | ||||||
Other operating expenses | 9,243 | 8,990 | 10,961 | |||||||||
Total expenses | 20,452 | 17,197 | 12,959 | |||||||||
Operating income | 6,408 | 12,414 | 13,826 | |||||||||
Other income (expense) | ||||||||||||
Equity earnings from subsidiaries | 87,206 | 97,234 | 89,142 | |||||||||
Net gain from investments | 4,635 | 4,272 | 5,154 | |||||||||
Extinguishment of debt | (1,067 | ) | (84 | ) | (998 | ) | ||||||
Interest and dividend income | 2,246 | 2,175 | 2,682 | |||||||||
Interest expense | (7,886 | ) | (6,919 | ) | (9,356 | ) | ||||||
Shareholder-designated contributions | (6,396 | ) | (134 | ) | (10,626 | ) | ||||||
Total other income (expense), net | 78,738 | 96,544 | 75,998 | |||||||||
Income before income taxes | 85,146 | 108,958 | 89,824 | |||||||||
Income tax provision/(benefit) | (2,204 | ) | 1,605 | (2,154 | ) | |||||||
Income from continuing operations | 87,350 | 107,353 | 91,978 | |||||||||
Income/(loss) from discontinued operations, net of taxes | (3,938 | ) | 2,037 | 24,875 | ||||||||
Net income | $ | 83,412 | $ | 109,390 | $ | 116,853 | ||||||
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Parent company only)
(In thousands, except per share data) |
December 31, | December 31, | |||||||
2015 | 2014 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 3,982 | $ | - | ||||
Investments in securities | 32,735 | 38,942 | ||||||
Receivable from brokers | 635 | 1,611 | ||||||
Receivable from affiliates | 20,445 | 43,700 | ||||||
Capital lease | 2,723 | 2,933 | ||||||
Income tax receivable | 11,991 | 41,260 | ||||||
Other assets | 4,346 | 4,253 | ||||||
Assets of discontinued operations | - | 700,958 | ||||||
Total assets | $ | 76,857 | $ | 833,657 | ||||
LIABILITIES AND EQUITY | ||||||||
Payable to brokers | $ | 12 | $ | 12 | ||||
Capital lease obligation | 5,170 | 5,253 | ||||||
Compensation payable | 11,144 | 14,464 | ||||||
Securities sold, not yet purchased | 129 | - | ||||||
Payable to affiliates | 31,029 | 55,011 | ||||||
Accrued expenses and other liabilities | 5,579 | 5,914 | ||||||
Liabilities of discontinued operations | - | 52,438 | ||||||
Sub-total | 53,063 | 133,092 | ||||||
AC 4% PIK Note (due November 30, 2020) | 250,000 | - | ||||||
Loan from GGCP (due December 28, 2016) | 35,000 | - | ||||||
5.875% Senior notes (due June 1, 2021) | 24,225 | 100,000 | ||||||
Zero coupon subordinated debentures, Face value: $0.0 million at December 31, 2015 and | ||||||||
$13.1 million at December 31, 2014 (matured on December 31, 2015) | - | 12,163 | ||||||
Total liabilities | 362,288 | 245,255 | ||||||
Redeemable noncontrolling interests from discontinued operations | - | 63,632 | ||||||
Equity: | ||||||||
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued and outstanding | ||||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized; 15,422,901 and 15,341,433 | ||||||||
shares issued, respectively; 10,664,107 and 6,616,212 shares outstanding, respectively | 14 | 14 | ||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 24,000,000 shares issued | ||||||||
and 19,156,792 and 19,239,260 shares outstanding, respectively | 19 | 19 | ||||||
Additional paid-in capital | 345 | 292,250 | ||||||
Retained earnings (deficit) | (43,480 | ) | 603,032 | |||||
Accumulated comprehensive income | 9,267 | 24,072 | ||||||
Treasury stock, at cost (4,758,794 and 8,725,221 shares, respectively) | (251,596 | ) | (394,617 | ) | ||||
Total equity | (285,431 | ) | 524,770 | |||||
Total liabilities and equity | $ | 76,857 | $ | 833,657 | ||||
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Parent company only)
(In thousands)
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Operating activities | ||||||||||||
Net income | $ | 83,412 | $ | 109,390 | $ | 116,853 | ||||||
Loss/(income) from discontinued operations, net of taxes | 3,938 | (2,037 | ) | (24,875 | ) | |||||||
Income from continuing operations | 87,350 | 107,353 | 91,978 | |||||||||
Adjustments to reconcile net income to net cash provided by | ||||||||||||
operating activities: | ||||||||||||
Depreciation and amortization | 595 | 589 | 669 | |||||||||
Stock based compensation expense | 9,868 | 5,278 | 1,562 | |||||||||
Tax benefit from exercise of stock options | 102 | 349 | 16 | |||||||||
Donated securities | 1,945 | 1,486 | 1,893 | |||||||||
Gains on sales of available for sale securities | (6 | ) | (587 | ) | (1,324 | ) | ||||||
Accretion of zero coupon debentures | 628 | 885 | 1,253 | |||||||||
Loss on extinguishment of debt | 1,067 | 84 | 998 | |||||||||
(Increase) decrease in assets: | ||||||||||||
Investment in subsidiaries | (69,963 | ) | 19,448 | 4,908 | ||||||||
Receivable from affiliates | 38,758 | 4,310 | (6,672 | ) | ||||||||
Receivable from brokers | 976 | (983 | ) | (628 | ) | |||||||
Income tax receivable and deferred tax assets | 29,164 | (7,544 | ) | (1,394 | ) | |||||||
Other assets | (478 | ) | 345 | 189 | ||||||||
Increase (decrease) in liabilities: | ||||||||||||
Payable to affiliates | 31,017 | (228 | ) | 770 | ||||||||
Payable to brokers | (539 | ) | (752 | ) | 763 | |||||||
Income taxes payable and deferred tax liabilities | 3,920 | 1,611 | (4,040 | ) | ||||||||
Compensation payable | (3,319 | ) | 11,541 | 10,902 | ||||||||
Accrued expenses and other liabilities | (424 | ) | (5,581 | ) | 5,894 | |||||||
Total adjustments | 43,311 | 30,251 | 15,759 | |||||||||
Net cash provided by operating activities from continuing operations | $ | 130,661 | $ | 137,604 | $ | 107,737 | ||||||
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Parent company only)
(In thousands)
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Investing activities | ||||||||||||
Purchases of available for sale securities | $ | (6,279 | ) | $ | (5,024 | ) | $ | (4,398 | ) | |||
Proceeds from sales of available for sale securities | 81 | 3,877 | 5,262 | |||||||||
Net cash provided by/(used in) investing activities from continuing operations | (6,198 | ) | (1,147 | ) | 864 | |||||||
Financing activities | ||||||||||||
Repayment of 5.5% senior note due May 15, 2013 | - | - | (99,000 | ) | ||||||||
Repurchase of Zero coupon subordinated debentures due December 31, 2015 | (13,101 | ) | (716 | ) | (7,705 | ) | ||||||
Repurchase of 5.875% Senior note due June 1, 2021 | (76,533 | ) | - | - | ||||||||
Loan from GGCP due December 28, 2016 | 35,000 | - | - | |||||||||
Dividends paid by subsidiaries to GBL | 164,000 | 101,000 | 62,000 | |||||||||
Net transfer to/(from) AC | (196,297 | ) | (193,021 | ) | (30,785 | ) | ||||||
Proceeds from exercise of stock options | 1,167 | 1,637 | 76 | |||||||||
Dividends paid | (7,468 | ) | (12,618 | ) | (18,419 | ) | ||||||
Purchase of treasury stock | (27,249 | ) | (32,739 | ) | (14,768 | ) | ||||||
Net cash used in financing activities from continuing operations | (120,481 | ) | (136,457 | ) | (108,601 | ) | ||||||
Cash flows of discontinued operations | ||||||||||||
Net cash provided by/(used in) operating activities | 82,759 | (66,053 | ) | (6,475 | ) | |||||||
Net cash provided by/(used in) investing activities | (35,216 | ) | 3,900 | 29,234 | ||||||||
Net cash provided by/(used in) financing activities | (47,543 | ) | 62,153 | (22,759 | ) | |||||||
Net cash provided by/(used in) discontinued operations | - | - | - | |||||||||
Net increase in cash and cash equivalents | 3,982 | - | - | |||||||||
Cash and cash equivalents at beginning of period | - | - | - | |||||||||
Cash and cash equivalents at end of period | $ | 3,982 | $ | - | $ | - | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 6,282 | $ | 5,936 | $ | 8,654 | ||||||
Cash paid for taxes | $ | 58,353 | $ | 69,287 | $ | 51,729 | ||||||