GAMCO Investors (GAMI) 8-K GAMCO Investors, Inc. Reports Third Quarter 2017 Results

Exhibit 99.1

For Immediate Release:	Contact:	Kieran Caterina or Diane M. LaPointe
		SVPs and Co-Chief Accounting Officers
		(914) 921-5149 or 7763
		For further information please visit
		www.gabelli.com

GAMCO Investors, Inc. Reports Third Quarter 2017 Results

-    AUM grew 8.2% to $43.1 billion year to year

-    Revenues were $88.3 million versus $87.7 million in the 2016 third quarter 

-    Third quarter diluted earnings per share was $0.55 compared to $1.03 a year ago

-    Adjusted earnings per share was $0.70 compared to $0.69 a year ago

Rye, New York, November 7, 2017 – GAMCO Investors, Inc. (“GAMCO”) (NYSE: GBL) today reported third quarter 2017 revenues of $88.3 million, net income of $16.6 million and earnings of $0.55 per diluted share compared to third quarter 2016 revenues of $87.7 million, net income of $30.9 million and earnings of $1.03 per diluted share.  On an adjusted basis, 2017 third quarter net income was $21.2 million and earnings were $0.70 per diluted share versus 2016 third quarter net income of $20.4 million and earnings of $0.69 per diluted share.  Adjusted net income and adjusted earnings per share are non-GAAP performance measures and are explained and reconciled with the most comparable GAAP numbers starting on page 10.

Our third quarter 2017 AUM was up 8.2% from the prior year and 3.4% from $41.7 billion at June 30, 2017.  Market appreciation of $1.8 billion was partially offset by net outflows of $213 million and distributions of $140 million.

Average AUM was $42.3 billion for the third quarter of 2017 versus $41.5 billion for the second quarter of 2017 and $39.9 billion for the third quarter of 2016.

As previously disclosed, the Company deferred the compensation of the Chief Executive Officer for all of 2016 and the first half of 2017.  This provided the Company with enhanced flexibility to pay down debt related to the spin-off of Associated Capital in November 2015.  Deferred compensation expense is recognized ratably over the vesting period, which resulted in a $23.1 million increase in compensation expense and management fee year over year.  In addition, the Company incurred additional expenses of $2.9 million due to the accelerated vesting of RSAs and the launching of our 16^th closed-end fund.

As a result, operating income was $23.4 million in the third quarter of 2017 compared to $48.1 million in the year ago quarter.

Financial Highlights
	Third Quarter								YTD
($'s in 000's except AUM and per share data)	2017				2016				2017				2016
AUM - end of period (in millions)	$	43,089			$	39,806			$	43,089			$	39,806
AUM - average (in millions)		42,323				39,883				41,696				38,727
GAAP
Revenues	$	88,341			$	87,721			$	261,858			$	253,050
Operating income		23,393				48,076				105,496				139,765
Income before income taxes		20,434				45,347				98,002				131,658
Effective tax rate			18.8	%			31.9	%			34.4	%			35.9	%
Net income		16,600				30,861				64,314				84,429
Net income per fully diluted share	$	0.55			$	1.03			$	2.14			$	2.85
Non-GAAP
Operating income	$	35,672			$	35,365			$	105,575			$	101,397
Adjusted income before income taxes		33,749				32,636				99,117				93,290
Adjusted effective tax rate			37.1	%			37.6	%			37.8	%			37.8	%
Adjusted net income		21,214				20,376				61,664				58,023
Adjusted net income per fully diluted share	$	0.70			$	0.69			$	2.05			$	1.97
Weighted average diluted shares outstanding		28,926				29,185				28,930				29,222
Shares outstanding at September 30		29,168				29,548				29,168				29,548
See the reconciliation to the comparable U.S. GAAP measures starting on page 10.

Revenues

- Total revenues for the third quarter of 2017 grew to $88.3 million from $87.7 million in the prior year.

- Investment advisory fees advanced to $77.3 million in the third quarter of 2017 from $76.0 million in the third quarter of 2016.  Third quarter revenues from our open-end and closed-end funds were $50.0 million, an increase from $48.9 million in the year ago quarter.  Institutional and Private Wealth Management accounted for $26.0 million of the revenues in 2017 versus $26.2 million in 2016.  SICAV revenues surged to $1.3 million in 2017 from $0.8 million in 2016.

- Distribution fees from our open-end equity funds and other income were $11.0 million for the third quarter 2017, versus the $11.8 million in the prior year quarter.

Operating Income

As noted, there were several distinct items in both quarters that impacted our results.  Operating income before these adjustments was $35.7 million in the third quarter of 2017 versus $35.4 million in the prior year period.  The cash compensation deferrals impacted operating costs by a negative swing of $23.1 million, composed of a $9.8 million expense increase in the third quarter of 2017 versus a $13.3 million expense reduction in the third quarter of 2016.  Further, in the 2017 third quarter, the Company recorded an additional $1.8 million of compensation expense due to the accelerated vesting of the majority of the GAMCO RSAs.  GAMCO also incurred $1.1 million in costs related to launching our 16^th closed-end fund, the Gabelli Merger Plus+ Trust plc.  The net result of these items reduced reported operating income to $23.4 million in the third quarter of 2017 from $48.1 million in the year ago quarter.

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Other expense

We recognized $3.0 million in net other expenses in the third quarter versus net other expenses of $2.7 million in the third quarter of 2016.  In the third quarter of 2017, we recorded $3.9 million of charitable contribution expense.  Interest expense decreased by $0.5 million year over year, reflecting a decline in outstanding debt to $204.0 million at September 30, 2017 from $233.9 million at September 30, 2016.  Investment income for 2017 was $3.6 million vs. $0.4 million in 2016.

Income Taxes

The Company’s effective tax rate (“ETR”) for the quarter ended September 30, 2017 was 18.8% versus 31.9% for the quarter ended September 30, 2016.  The current year quarter’s ETR benefited from the reversal of certain tax accruals totaling $3.4 million as well as a $1.0 million tax benefit related to the charitable contribution.

Balance Sheet

As anticipated, GAMCO has made substantial progress in reducing its debt since the November 2015 spin-off of Associated Capital Group, Inc.  As a result, Standard & Poor’s recently revised its outlook to stable from negative and reaffirmed our debt rating at BBB-.

We ended the quarter with cash of $61.1 million, investments of $101.4 million, and gross debt of $204.0 million.  In this regard, we note that $60.0 million of our cash and investments are held in escrow for benefit of the Convertible note holder.  We have $500 million available on our universal shelf registration.  Together with earnings from operations, the shelf provides us with flexibility to pay down debt, do acquisitions, lift-outs, seed new investment strategies, and co-invest, as well as to fund shareholder compensation, including share repurchases and dividends.

In total, there is $57.2 million of deferred cash compensation that has yet to be recorded and will be during the remainder of 2017, 2018 and 2019, in accordance with GAAP.

Subsequent to quarter end, we reduced the 4% PIK note due November 30, 2020 to $50 million as we redeemed an additional $20 million.

Deferred Compensation

GAMCO entered into a third agreement with its Chief Executive Officer on September 30, 2017 which will defer his cash compensation for the fourth quarter of 2017 until April 2019 under terms that are similar to the prior two deferrals.

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Returns to Shareholder

During the quarter ended September 30, 2017, we repurchased 131,480 shares at an average price of $29.42 per share for a total investment of $3.9 million.  We also distributed $0.6 million in dividends.  Since our IPO in February 1999, we have returned $1.9 billion in total to shareholders comprised of $1.0 billion of spin-offs, $490.4 million in the form of dividends and $447.4 million through stock buybacks of approximately 10.2 million shares.

On November 7, 2017, GAMCO’s Board of Directors declared a regular quarterly dividend of $0.02 per share payable on January 10, 2018 to its Class A and Class B shareholders of record on December 27 2017.

Business and Investment Highlights

- On July 19, 2017, we launched our 16^th closed-end fund and second on the London Stock Exchange, the Gabelli Merger Plus+ Trust plc.  The fund, which trades under the symbol GMP, raised $100 million.

- On September 18, 2017, the Ellsworth Growth and Income Fund Ltd. completed its initial preferred offering.  The Fund issued $30 million of 5.25% Series A Cumulative Preferred Shares which are perpetual, non-callable for five years.

- On September 26, 2017, the Gabelli Multimedia Trust completed its offering of $50 million of 5.125% Series E Cumulative Preferred Stock.  The preferred stock is perpetual, non-callable for five years, and was issued at $25 per share.

About GAMCO Investors, Inc.

GAMCO Investors, Inc., through its subsidiaries, manages private advisory accounts (GAMCO Asset Management Inc.) and open-end funds and closed-end funds (Gabelli Funds, LLC).

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	September 30,		September 30,
	2017		2016
Equities:
Open-end Funds	$	13,762	$	13,799
Closed-end Funds		7,668		7,178
Institutional & PWM - direct (a)		13,893		13,245
Institutional & PWM - sub-advisory		5,346		3,542
SICAV		504		267	(b)
Total Equities		41,173		38,031
Fixed Income:
Money-Market Fund		1,890		1,738
Institutional & PWM		26		37
Total Fixed Income		1,916		1,775
Total Assets Under Management	$	43,089	$	39,806
(a) Includes $280 million and $286 million of Money Market Fund AUM at
September 30, 2017 and September 30, 2016, respectively.
(b) Adjusted to include $225 million of Merger Arbitrage assets.

The Company reported Assets Under Management as follows (in millions):
Table I: Fund Flows - 3rd Quarter 2017
								Fund
			Market					distributions,
	June 30,		appreciation/		Net cash			net of			September 30,
	2017		(depreciation)		flows			reinvestments			2017
Equities:
Open-end Funds	$	13,574	$	517	$	(305	)	$	(24	)	$	13,762
Closed-end Funds		7,359		249		176			(116	)		7,668
Institutional & PWM - direct		13,437		613		(157	)		-			13,893
Institutional & PWM - sub-advisory		5,048		368		(70	)		-			5,346
SICAV (a)		421		10		73			-			504
Total Equities		39,839		1,757		(283	)		(140	)		41,173
Fixed Income:
Money-Market Fund		1,813		4		73			-			1,890
Institutional & PWM		29		-		(3	)		-			26
Total Fixed Income		1,842		4		70			-			1,916
Total Assets Under Management	$	41,681	$	1,761	$	(213	)	$	(140	)	$	43,089
(a) Adjusted to include Merger Arbitrage assets of $371 million at June 30, 2017.

Table II: Fund Flows - Year to date September 2017
									Fund
			Market						distributions,
	December 31,		appreciation/		Net cash				net of			September 30,
	2016		(depreciation)		flows				reinvestments			2017
Equities:
Open-end Funds	$	13,462	$	1,354	$	(1,009	)		$	(45	)	$	13,762
Closed-end Funds		7,150		712		162				(356	)		7,668
Institutional & PWM - direct		13,441		1,523		(1,071	)			-			13,893
Institutional & PWM - sub-advisory		3,783		522		1,041		(b)		-			5,346
SICAV (a)		320		29		155				-			504
Total Equities		38,156		4,140		(722	)			(401	)		41,173
Fixed Income:
Money-Market Fund		1,767		9		114				-			1,890
Institutional & PWM		31		-		(5	)			-			26
Total Fixed Income		1,798		9		109				-			1,916
Total Assets Under Management	$	39,954	$	4,149	$	(613	)		$	(401	)	$	43,089
(a) Adjusted to include Merger Arbitrage assets of $270 million at December 31, 2016.
(b) Includes $1.2 billion from being approved as the sub-advisor on two sub-advisory entities as of February 27, 2017.

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Table III
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
	For the Quarter Ended
	September 30,
	2017			2016
Investment advisory and incentive fees	$	77,328		$	75,952
Distribution fees and other income		11,013			11,769
Total revenues		88,341			87,721
Compensation costs		42,919			21,233
Distribution costs		11,665			11,568
Other operating expenses		5,429			5,681
Total expenses		60,013			38,482
Operating income before management fee		28,328			49,239
Investment income		3,586			426
Interest expense		(2,688	)		(3,155	)
Shareholder-designated contribution		(3,857	)		-
Other expense, net		(2,959	)		(2,729	)
Income before management fee and income taxes		25,369			46,510
Management fee expense		4,935			1,163
Income before income taxes		20,434			45,347
Income tax expense		3,834			14,486
Net income attributable to GAMCO Investors, Inc.	$	16,600		$	30,861
Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	0.57		$	1.06
Diluted	$	0.55		$	1.03
Weighted average shares outstanding:
Basic		28,926			29,185
Diluted		31,173			30,406
Actual shares outstanding (a)		29,168			29,548
Notes:
(a) Includes 164,050 and 427,290 of RSAs, respectively.
See GAAP to non-GAAP reconciliation on page 8.

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Table IV
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
	For the Nine Months Ended
	September 30,
	2017			2016
Investment advisory and incentive fees	$	228,942		$	219,594
Distribution fees and other income		32,916			33,456
Total revenues		261,858			253,050
Compensation costs		97,634			62,130
Distribution costs		33,373			32,786
Other operating expenses		15,900			14,993
Total expenses		146,907			109,909
Operating income before management fee		114,951			143,141
Investment income		4,632			1,622
Interest expense		(8,269	)		(9,729	)
Shareholder-designated contribution		(3,857	)		-
Other expense, net		(7,494	)		(8,107	)
Income before management fee and income taxes		107,457			135,034
Management fee expense		9,455			3,376
Income before income taxes		98,002			131,658
Income tax expense		33,688			47,229
Net income attributable to GAMCO Investors, Inc.	$	64,314		$	84,429
Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	2.22		$	2.89
Diluted	$	2.14		$	2.85
Weighted average shares outstanding:
Basic		28,930			29,222
Diluted		31,144			29,811
Actual shares outstanding (a)		29,168			29,548
Notes:
(a) Includes 164,050 and 427,290 of RSAs, respectively.
See GAAP to non-GAAP reconciliation on page 8.

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Table V
GAMCO INVESTORS, INC.
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
																						��
	2017												2016
	1st			2nd			3rd						1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Full Year			Quarter			Quarter			Quarter			Quarter			Full Year
Income Statement Data:
Revenues	$	85,917		$	87,600		$	88,341		$	261,858		$	81,385		$	83,944		$	87,721		$	99,950		$	353,000
Expenses		41,310			45,584			60,013			146,907			35,363			36,064			38,482			44,777			154,686
Operating income before
management fee		44,607			42,016			28,328			114,951			46,022			47,880			49,239			55,173			198,314
Investment income		509			537			(271	)		775			591			605			426			1,483			3,105
Interest expense		(2,832	)		(2,749	)		(2,688	)		(8,269	)		(3,406	)		(3,168	)		(3,155	)		(2,945	)		(12,674	)
Other expense, net		(2,323	)		(2,212	)		(2,959	)		(7,494	)		(2,815	)		(2,563	)		(2,729	)		(1,462	)		(9,569	)
Income before management
fee and income taxes		42,284			39,804			25,369			107,457			43,207			45,317			46,510			53,711			188,745
Management fee expense		2,164			2,356			4,935			9,455			1,080			1,133			1,163			3,142			6,518
Income before income taxes		40,120			37,448			20,434			98,002			42,127			44,184			45,347			50,569			182,227
Income tax expense		15,300			14,554			3,834			33,688			16,102			16,641			14,486			17,877			65,106
Net income attributable to
GAMCO Investors, Inc.	$	24,820		$	22,894		$	16,600		$	64,314		$	26,025		$	27,543		$	30,861		$	32,692		$	117,121
Net income per share
attributable to GAMCO
Investors, Inc.:
Basic	$	0.86		$	0.79		$	0.57		$	2.22		$	0.89		$	0.94		$	1.06		$	1.12		$	4.01
Diluted	$	0.82		$	0.76		$	0.55		$	2.14		$	0.88		$	0.93		$	1.03		$	1.07		$	3.92
Weighted average shares outstanding:
Basic		28,970			28,896			28,926			28,930			29,247			29,234			29,185			29,062			29,182
Diluted		31,160			31,100			31,173			31,144			29,684			29,522			30,406			31,241			30,170
Reconciliation of non-GAAP
financial measures to GAAP:
Operating income before
management fee		44,607			42,016			28,328			114,951			46,022			47,880			49,239			55,173			198,314
Deduct: management fee expense		2,164			2,356			4,935			9,455			1,080			1,133			1,163			3,142			6,518
Operating income	$	42,443		$	39,660		$	23,393		$	105,496		$	44,942		$	46,747		$	48,076		$	52,031		$	191,796
Operating margin before
management fee		51.9	%		48.0	%		32.1	%		43.9	%		56.5	%		57.0	%		56.1	%		55.2	%		56.2	%
Operating margin after
management fee		49.4	%		45.3	%		26.5	%		40.3	%		55.2	%		55.7	%		54.8	%		52.1	%		54.3	%
Notes on Non-GAAP Financial Measures:
Operating income before management fee is used by management to evaluate its business operations. We believe this measure is useful in
illustrating the operating results of GAMCO Investors, Inc. (the "Company") as management fee expense is based on pre-tax income before
management fee expense, which includes non-operating items including investment gains and losses from the Company's proprietary investment
portfolio and interest expense.

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Table VI
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
	September 30,			December 31,			September 30,
	2017			2016			2016
ASSETS
Cash and cash equivalents (includes restricted cash of $95
and $0, respectively)	$	61,097		$	39,812		$	33,852
Investments (includes restricted investments in securities
of $59,954 and $0, respectively)		101,425			37,285			32,889
Receivable from brokers		1,342			453			344
Other receivables		31,641			50,756			32,429
Income tax receivable and deferred tax asset		24,941			9,349			10,634
Other assets		10,580			11,574			11,120
Total assets	$	231,026		$	149,229		$	121,268
LIABILITIES AND EQUITY
Payable to brokers	$	13,311		$	66		$	10,203
Income taxes payable and deferred tax liabilities		3,215			3,815			164
Compensation payable (a)		82,896			42,384			31,469
Accrued expenses and other liabilities		32,091			35,656			44,574
Sub-total		131,513			81,921			86,410
5.875% Senior notes (due June 1, 2021)		24,138			24,120			24,115
4.5% Convertible note (due August 15, 2021)		109,862			109,835			109,826
4% PIK note (due November 30, 2020)		70,000			100,000			100,000
Total debt		204,000			233,955			233,941
Total liabilities		335,513			315,876			320,351
GAMCO Investors, Inc.'s stockholders' deficit		(104,487	)		(166,647	)		(199,083	)
Total liabilities and equity	$	231,026		$	149,229		$	121,268
(a) Excludes $57.2 million of DCCA expense that is not yet recorded under GAAP.

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Non-GAAP information and reconciliation:

GAMCO’s non-GAAP measures include adjusted income before taxes, adjusted effective tax rate, adjusted net income and adjusted net income per fully diluted share.  GAMCO’s calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in  the method of calculation.  As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or a substitute for, related U.S. GAAP measures.

These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons and benchmark performance between periods to understand operating performance without regard to items that we do not consider to be a component of our core operating performance.  Management uses these measures in its financial, investment and operational decision-making processes, for internal reporting and as part of its forecasting and budgeting processes.  For these reasons we believe these non-GAAP measures are useful for our investors.

Adjusted income before taxes, adjusted effective tax rate, adjusted net income and adjusted net income per fully diluted share can be used by investors to review our results on a consistent basis.  Examples of adjustments to these measures include the GAAP impact of the 2016 DCCA and First Half 2017 DCCA that were put in place to enable the Company to more quickly pay down its debt, the acceleration of outstanding RSAs, charitable contributions and closed-end fund launch expenses.

The following tables reconcile adjusted income before taxes, adjusted effective tax rate, adjusted net income and adjusted net income per share to their closest GAAP equivalent:

	For the three months ended September 30, 2017
	Reported			First Half						RSA
	GAAP			2017 DCCA			2016 DCCA			Acceleration			Other			Adjusted
Total revenues	$	88,341		$	-		$	-		$	-		$	-		$	88,341
Compensation costs		42,919			(4,816	)		(3,415	)		(1,796	)		-			32,892
Distribution costs		11,665			-			-			-			(1,068	)		10,597
Other operating expenses		5,429			-			-			-			-			5,429
Total expenses		60,013			(4,816	)		(3,415	)		(1,796	)		(1,068	)		48,918
Operating income before management fee		28,328			4,816			3,415			1,796			1,068			39,423
Other expense, net		(2,959	)		-			-			-			1,036			(1,923	)
Income before management fee and income taxes		25,369			4,816			3,415			1,796			2,104			37,500
Management fee expense		4,935			(886	)		(688	)		180			210			3,751
Income before income taxes		20,434			5,702			4,103			1,616			1,894			33,749
Income tax expense		3,834			2,167			1,559			(113	)		5,088			12,535
Net income attributable to GAMCO Investors, Inc.	$	16,600		$	3,535		$	2,544		$	1,729		$	(3,194	)	$	21,214
Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	0.57		$	0.12		$	0.09		$	0.06		$	(0.11	)	$	0.73
Diluted	$	0.55		$	0.11		$	0.08		$	0.06		$	(0.10	)	$	0.70

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	For the three months ended September 30, 2016
	Reported
	GAAP			2016 DCCA			Other			Adjusted
Total revenues	$	87,721		$	-		$	-		$	87,721
Compensation costs		21,233			10,885			-			32,118
Distribution costs		11,568			-			(638	)		10,930
Other operating expenses		5,681			-			-			5,681
Total expenses		38,482			10,885			(638	)		48,729
Operating income before management fee		49,239			(10,885	)		638			38,992
Other expense, net		(2,729	)		-			-			(2,729	)
Income before management fee and income taxes		46,510			(10,885	)		638			36,263
Management fee expense		1,163			2,400			64			3,627
Income before income taxes		45,347			(13,285	)		574			32,636
Income tax expense		14,486			(5,075	)		2,849			12,260
Net income attributable to GAMCO Investors, Inc.	$	30,861		$	(8,210	)	$	(2,275	)	$	20,376
Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	1.06		$	(0.28	)	$	(0.08	)	$	0.70
Diluted	$	1.03		$	(0.27	)	$	(0.07	)	$	0.69

	For the nine months ended September 30, 2017
	Reported			First Half						RSA
	GAAP			2017 DCCA			2016 DCCA			Acceleration			Other			Adjusted
Total revenues	$	261,858		$	-		$	-		$	-		$	-		$	261,858
Compensation costs		97,634			14,390			(9,174	)		(5,479	)		-			97,371
Distribution costs		33,373			-			-			-			(1,068	)		32,305
Other operating expenses		15,900			-			-			-			-			15,900
Total expenses		146,907			14,390			(9,174	)		(5,479	)		(1,068	)		145,576
Operating income before management fee		114,951			(14,390	)		9,174			5,479			1,068			116,282
Other expense, net		(7,494	)		-			-			-			1,036			(6,458	)
Income before management fee and income taxes		107,457			(14,390	)		9,174			5,479			2,104			109,824
Management fee expense		9,455			2,666			(2,172	)		548			210			10,707
Income before income taxes		98,002			(17,056	)		11,346			4,931			1,894			99,117
Income tax expense		33,688			(6,594	)		4,350			921			5,088			37,453
Net income attributable to GAMCO Investors, Inc.	$	64,314		$	(10,462	)	$	6,996		$	4,010		$	(3,194	)	$	61,664
Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	2.22		$	(0.36	)	$	0.24		$	0.14		$	(0.11	)	$	2.13
Diluted	$	2.14		$	(0.34	)	$	0.22		$	0.13		$	(0.10	)	$	2.05

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	For the nine months ended September 30, 2016
	Reported
	GAAP			2016 DCCA			Other			Adjusted
Total revenues	$	253,050		$	-		$	-		$	253,050
Compensation costs		62,130			32,016			-			94,146
Distribution costs		32,786			-			(638	)		32,148
Other operating expenses		14,993			-			-			14,993
Total expenses		109,909			32,016			(638	)		141,287
Operating income before management fee		143,141			(32,016	)		638			111,763
Other expense, net		(8,107	)		-			-			(8,107	)
Income before management fee and income taxes		135,034			(32,016	)		638			103,656
Management fee expense		3,376			6,926			64			10,366
Income before income taxes		131,658			(38,942	)		574			93,290
Income tax expense		47,229			(14,811	)		2,849			35,267
Net income attributable to GAMCO Investors, Inc.	$	84,429		$	(24,131	)	$	(2,275	)	$	58,023
Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	2.89		$	(0.83	)	$	(0.08	)	$	1.99
Diluted	$	2.85		$	(0.81	)	$	(0.08	)	$	1.97

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.  Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results.  Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe.  Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements.  Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors  contained in our Form 10-K and other public filings.  Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.

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