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, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Revenues | ||||||||||||
Distribution fees and other income | $ | 29,045 | $ | 26,860 | $ | 29,611 | ||||||
Total revenues | 29,045 | 26,860 | 29,611 | |||||||||
Expenses | ||||||||||||
Compensation | 1,929 | 3,550 | 4,005 | |||||||||
Stock based compensation | 3,959 | 9,868 | 5,278 | |||||||||
Management fee benefit | (13,943 | ) | (2,209 | ) | (1,076 | ) | ||||||
Other operating expenses | 9,102 | 9,243 | 8,990 | |||||||||
Total expenses | 1,047 | 20,452 | 17,197 | |||||||||
Operating income | 27,998 | 6,408 | 12,414 | |||||||||
Other income (expense) | ||||||||||||
Equity earnings from subsidiaries | 100,698 | 87,206 | 97,234 | |||||||||
Net gain from investments | 1,447 | 4,635 | 4,272 | |||||||||
Extinguishment of debt | - | (1,067 | ) | (84 | ) | |||||||
Interest and dividend income | 1,447 | 2,246 | 2,175 | |||||||||
Interest expense | (11,814 | ) | (7,886 | ) | (6,919 | ) | ||||||
Shareholder-designated contributions | - | (6,396 | ) | (134 | ) | |||||||
Total other income, net | 91,778 | 78,738 | 96,544 | |||||||||
Income before income taxes | 119,776 | 85,146 | 108,958 | |||||||||
Income tax provision/(benefit) | 2,655 | (2,204 | ) | 1,605 | ||||||||
Income from continuing operations | 117,121 | 87,350 | 107,353 | |||||||||
Income/(loss) from discontinued operations, net of taxes | - | (3,938 | ) | 2,037 | ||||||||
Net income | $ | 117,121 | $ | 83,412 | $ | 109,390 | ||||||
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Parent company only)
(In thousands, except per share data)
December 31, | December 31, | |||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 7,209 | $ | 3,982 | ||||
Investments in securities | 37,235 | 32,735 | ||||||
Receivable from brokers | 55 | 635 | ||||||
Receivable from affiliates | 57,274 | 20,445 | ||||||
Capital lease | 2,514 | 2,723 | ||||||
Income tax receivable | - | 11,991 | ||||||
Other assets | 4,149 | 4,218 | ||||||
Total assets | $ | 108,436 | $ | 76,729 | ||||
LIABILITIES AND EQUITY | ||||||||
Payable to brokers | $ | 66 | $ | 12 | ||||
Capital lease obligation | 5,066 | 5,170 | ||||||
Compensation payable | 27,496 | 11,144 | ||||||
Securities sold, not yet purchased | - | 129 | ||||||
Payable to affiliates | 462 | 31,029 | ||||||
Accrued expenses and other liabilities | 5,556 | 5,579 | ||||||
Sub-total | 38,646 | 53,063 | ||||||
AC 4% PIK Note (due November 30, 2020) | 100,000 | 250,000 | ||||||
4.5% Convertible note (due August 15, 2021) | 109,835 | - | ||||||
Loan from GGCP (due December 28, 2016) | - | 35,000 | ||||||
5.875% Senior notes (due June 1, 2021) | 24,120 | 24,097 | ||||||
Total liabilities | 272,601 | 362,160 | ||||||
Total equity | (164,165 | ) | (285,431 | ) | ||||
Total liabilities and equity | $ | 108,436 | $ | 76,729 |
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Parent company only)
(In thousands)
Year Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Operating activities | ||||||||||||
Net income | $ | 117,121 | $ | 83,412 | $ | 109,390 | ||||||
Loss/(income) from discontinued operations, net of taxes | - | 3,938 | (2,037 | ) | ||||||||
Income from continuing operations | 117,121 | 87,350 | 107,353 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 607 | 595 | 589 | |||||||||
Stock based compensation expense | 3,959 | 9,868 | 5,278 | |||||||||
Tax benefit from exercise of stock options | - | 102 | 349 | |||||||||
Donated securities | 499 | 1,945 | 1,486 | |||||||||
Gains on sales of available for sale securities | (4 | ) | (6 | ) | (587 | ) | ||||||
Accretion of zero coupon debentures | - | 628 | 885 | |||||||||
Loss on extinguishment of debt | - | 1,067 | 84 | |||||||||
(Increase) decrease in assets: | ||||||||||||
Investments in trading securities | (5 | ) | - | - | ||||||||
Receivable from affiliates | (25,510 | ) | (31,205 | ) | 23,758 | |||||||
Receivable from brokers | 580 | 976 | (983 | ) | ||||||||
Income tax receivable and deferred tax assets | 11,991 | 29,164 | (7,544 | ) | ||||||||
Other assets | (330 | ) | (478 | ) | 345 | |||||||
Increase (decrease) in liabilities: | ||||||||||||
Payable to affiliates | (30,567 | ) | 31,017 | (228 | ) | |||||||
Payable to brokers | 54 | (539 | ) | (752 | ) | |||||||
Income taxes payable and deferred tax liabilities | (1,137 | ) | 3,920 | 1,611 | ||||||||
Compensation payable | 16,351 | (3,319 | ) | 11,541 | ||||||||
Accrued expenses and other liabilities | (700 | ) | (424 | ) | (5,581 | ) | ||||||
Total adjustments | (24,212 | ) | 43,311 | 30,251 | ||||||||
Net cash provided by operating activities from continuing operations | $ | 92,909 | $ | 130,661 | $ | 137,604 |
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Parent company only)
(In thousands)
Year Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Investing activities | ||||||||||||
Purchases of available for sale securities | $ | (1,843 | ) | $ | (6,279 | ) | $ | (5,024 | ) | |||
Proceeds from sales of available for sale securities | 408 | 81 | 3,877 | |||||||||
Net cash used in investing activities from continuing operations | (1,435 | ) | (6,198 | ) | (1,147 | ) | ||||||
Financing activities | ||||||||||||
Repurchase of Zero coupon subordinated debentures due December 31, 2015 | - | (13,101 | ) | (716 | ) | |||||||
Repurchase of 5.875% Senior note due June 1, 2021 | - | (76,533 | ) | - | ||||||||
Repayment of AC 4% PIK Note due November 30, 2020 | (150,000 | ) | - | - | ||||||||
Issuance of 4.5% Convertible note due August 15, 2021 | 109,826 | - | - | |||||||||
Loan from GGCP due December 28, 2016 | (35,000 | ) | 35,000 | - | ||||||||
Amortization of debt issuance costs | 33 | - | - | |||||||||
Dividends paid by subsidiaries to GBL | - | 164,000 | 101,000 | |||||||||
Net transfer to/(from) AC | - | (196,297 | ) | (193,021 | ) | |||||||
Proceeds from exercise of stock options | - | 1,167 | 1,637 | |||||||||
Dividends paid | (2,333 | ) | (7,468 | ) | (12,618 | ) | ||||||
Purchase of treasury stock | (10,773 | ) | (27,249 | ) | (32,739 | ) | ||||||
Net cash used in financing activities from continuing operations | (88,247 | ) | (120,481 | ) | (136,457 | ) | ||||||
Cash flows of discontinued operations | ||||||||||||
Net cash provided by/(used in) operating activities | - | 82,759 | (66,053 | ) | ||||||||
Net cash provided by/(used in) investing activities | - | (35,216 | ) | 3,900 | ||||||||
Net cash provided by/(used in) financing activities | - | (47,543 | ) | 62,153 | ||||||||
Net cash provided by/(used in) discontinued operations | - | - | - | |||||||||
Net increase in cash and cash equivalents | 3,227 | 3,982 | - | |||||||||
Cash and cash equivalents at beginning of period | 3,982 | - | - | |||||||||
Cash and cash equivalents at end of period | $ | 7,209 | $ | 3,982 | $ | - | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 10,425 | $ | 6,282 | $ | 5,936 | ||||||
Cash paid for taxes | $ | 74,457 | $ | 58,353 | $ | 69,287 |