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, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Revenues | ||||||||||||
Distribution fees and other income | $ | 25,468 | $ | 29,045 | $ | 26,860 | ||||||
Total revenues | 25,468 | 29,045 | 26,860 | |||||||||
Expenses | ||||||||||||
Compensation | 1,469 | 1,929 | 3,550 | |||||||||
Stock based compensation | 8,670 | 3,959 | 9,868 | |||||||||
Management fee benefit | (3,082 | ) | (13,943 | ) | (2,209 | ) | ||||||
Other operating expenses | 7,329 | 9,102 | 9,243 | |||||||||
Total expenses | 14,386 | 1,047 | 20,452 | |||||||||
Operating income | 11,082 | 27,998 | 6,408 | |||||||||
Other income (expense) | ||||||||||||
Equity earnings from subsidiaries | 72,001 | 100,698 | 87,206 | |||||||||
Net gain from investments | 3,230 | 1,447 | 4,635 | |||||||||
Extinguishment of debt | (3,300 | ) | - | (1,067 | ) | |||||||
Interest and dividend income | 1,703 | 1,447 | 2,246 | |||||||||
Interest expense | (9,347 | ) | (11,814 | ) | (7,886 | ) | ||||||
Charitable contributions | (4,137 | ) | - | (6,396 | ) | |||||||
Total other income, net | 60,150 | 91,778 | 78,738 | |||||||||
Income before income taxes | 71,232 | 119,776 | 85,146 | |||||||||
Income tax provision/(benefit) | (6,577 | ) | 2,655 | (2,204 | ) | |||||||
Income from continuing operations | 77,809 | 117,121 | 87,350 | |||||||||
Loss from discontinued operations, net of taxes | - | - | (3,938 | ) | ||||||||
Net income | $ | 77,809 | $ | 117,121 | $ | 83,412 | ||||||
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Parent company only)
(In thousands, except per share data)
December 31, | ||||||||
2017 | 2016 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 5,990 | $ | 7,209 | ||||
Investments in securities | 36,750 | 37,235 | ||||||
Receivable from brokers | 1,246 | 55 | ||||||
Investment in subsidiaries and receivable from affiliates | 108,669 | 57,274 | ||||||
Capital lease | 2,304 | 2,514 | ||||||
Income tax receivable | 77,832 | - | ||||||
Other assets | 3,655 | 4,149 | ||||||
Total assets | $ | 236,446 | $ | 108,436 | ||||
LIABILITIES AND EQUITY | ||||||||
Payable to brokers | $ | 14,926 | $ | 66 | ||||
Capital lease obligation | 4,943 | 5,066 | ||||||
Compensation payable | 73,275 | 27,496 | ||||||
Payable to affiliates | 134,318 | 462 | ||||||
Accrued expenses and other liabilities | 16,113 | 5,556 | ||||||
Sub-total | 243,575 | 38,646 | ||||||
AC 4% PIK Note (due November 30, 2020) | 50,000 | 100,000 | ||||||
4.5% Convertible note (due August 15, 2021) | - | 109,835 | ||||||
AC 1.6% Note Payable (due February 28, 2018) | 15,000 | - | ||||||
5.875% Senior notes (due June 1, 2021) | 24,144 | 24,120 | ||||||
Total liabilities | 332,719 | 272,601 | ||||||
Total equity (deficit) | (96,273 | ) | (164,165 | ) | ||||
Total liabilities and equity | $ | 236,446 | $ | 108,436 |
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Parent company only)
(In thousands)
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Operating activities | ||||||||||||
Net income | $ | 77,809 | $ | 117,121 | $ | 83,412 | ||||||
Loss from discontinued operations, net of taxes | - | - | 3,938 | |||||||||
Income from continuing operations | 77,809 | 117,121 | 87,350 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 570 | 607 | 595 | |||||||||
Stock based compensation expense | 8,670 | 3,959 | 9,868 | |||||||||
Tax benefit from exercise of stock options | - | - | 102 | |||||||||
Donated securities | 1,124 | 499 | 1,945 | |||||||||
Gains on sales of available for sale securities | (62 | ) | (4 | ) | (6 | ) | ||||||
Accretion of zero coupon debentures | - | - | 628 | |||||||||
Loss on extinguishment of debt | 3,300 | - | 1,067 | |||||||||
(Increase) decrease in assets: | ||||||||||||
Investments in trading securities | (1 | ) | (5 | ) | - | |||||||
Receivable from affiliates | (53,797 | ) | (25,510 | ) | (31,205 | ) | ||||||
Receivable from brokers | (1,192 | ) | 580 | 976 | ||||||||
Income tax receivable and deferred tax assets | (77,832 | ) | 11,991 | 29,164 | ||||||||
Other assets | 136 | (330 | ) | (478 | ) | |||||||
Increase (decrease) in liabilities: | ||||||||||||
Payable to affiliates | 133,856 | (30,567 | ) | 31,017 | ||||||||
Payable to brokers | (990 | ) | 54 | (539 | ) | |||||||
Income taxes payable and deferred tax liabilities | 12,281 | (1,137 | ) | 3,920 | ||||||||
Compensation payable | 45,779 | 16,351 | (3,319 | ) | ||||||||
Accrued expenses and other liabilities | (2,205 | ) | (700 | ) | (424 | ) | ||||||
Total adjustments | 69,637 | (24,212 | ) | 43,311 | ||||||||
Net cash provided by operating activities from continuing operations | $ | 147,446 | $ | 92,909 | $ | 130,661 |
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Parent company only)
(In thousands)
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Investing activities | ||||||||||||
Purchases of available for sale securities | $ | (3,932 | ) | $ | (1,843 | ) | $ | (6,279 | ) | |||
Proceeds from sales of available for sale securities | 4,169 | 408 | 81 | |||||||||
Net cash provided by/(used in) investing activities from continuing operations | 237 | (1,435 | ) | (6,198 | ) | |||||||
Financing activities | ||||||||||||
Repurchase of Zero coupon subordinated debentures due December 31, 2015 | - | - | (13,101 | ) | ||||||||
Repurchase of 5.875% Senior note due June 1, 2021 | - | - | (76,533 | ) | ||||||||
Repayment of AC 4% PIK Note due November 30, 2020 | (50,000 | ) | (150,000 | ) | - | |||||||
Issuance of 4.5% Convertible note due August 15, 2021 | - | 109,826 | - | |||||||||
Repayment of 4.5% Convertible note due August 15, 2021 | (113,300 | ) | - | - | ||||||||
Repayment of GGCP loan due December 28, 2016 | - | (35,000 | ) | - | ||||||||
Proceeds from GGCP due December 28, 2016 | - | - | 35,000 | |||||||||
Proceeds from 1.6% AC Note de February 28, 2018 | 15,000 | - | - | |||||||||
Margin loan borrowings | 20,850 | - | - | |||||||||
Margin loan repayments | (5,000 | ) | - | - | ||||||||
Amortization of debt issuance costs | 187 | 33 | - | |||||||||
Dividends paid by subsidiaries to GBL | - | - | 164,000 | |||||||||
Net transfer to AC | - | - | (196,297 | ) | ||||||||
Proceeds from exercise of stock options | - | - | 1,167 | |||||||||
Dividends paid | (2,315 | ) | (2,333 | ) | (7,468 | ) | ||||||
Purchase of treasury stock | (14,324 | ) | (10,773 | ) | (27,249 | ) | ||||||
Net cash used in financing activities from continuing operations | (148,902 | ) | (88,247 | ) | (120,481 | ) | ||||||
Cash flows of discontinued operations | ||||||||||||
Net cash provided by operating activities | - | - | 82,759 | |||||||||
Net cash used in investing activities | - | - | (35,216 | ) | ||||||||
Net cash used in financing activities | - | - | (47,543 | ) | ||||||||
Net cash provided by/(used in) discontinued operations | - | - | - | |||||||||
Net increase (decrease) in cash and cash equivalents | (1,219 | ) | 3,227 | 3,982 | ||||||||
Cash and cash equivalents at beginning of period | 7,209 | 3,982 | - | |||||||||
Cash and cash equivalents at end of period | $ | 5,990 | $ | 7,209 | $ | 3,982 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 10,891 | $ | 10,425 | $ | 6,282 | ||||||
Cash paid for taxes | $ | 61,704 | $ | 74,457 | $ | 58,353 |