Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | GAMCO INVESTORS, INC. ET AL | |
Entity Central Index Key | 0001060349 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,586,327 | |
Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,024,117 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Total revenues | $ 74,336 | $ 87,497 |
Expenses | ||
Compensation | 30,347 | 25,950 |
Management fee | 1,449 | 4,634 |
Distribution costs | 8,670 | 10,204 |
Other operating expenses | 5,257 | 5,453 |
Total expenses | 45,723 | 46,241 |
Operating income | 28,613 | 41,256 |
Other income (expense) | ||
Net gain (loss) from investments | (1,895) | (5,347) |
Interest and dividend income | 724 | 492 |
Interest expense | (655) | (1,200) |
Total other expense, net | (1,826) | (6,055) |
Income before income taxes | 26,787 | 35,201 |
Income tax provision | 6,895 | 7,940 |
Net income | $ 19,892 | $ 27,261 |
Net income: | ||
Basic (in dollars per share) | $ 0.70 | $ 0.94 |
Diluted (in dollars per share) | $ 0.70 | $ 0.94 |
Weighted average shares outstanding: | ||
Basic (in shares) | 28,507 | 28,916 |
Diluted (in shares) | 28,539 | 28,916 |
Dividends declared: (in dollars per share) | $ 0.02 | $ 0.02 |
Investment Advisory and Incentive Fees [Member] | ||
Revenues | ||
Total revenues | $ 65,888 | $ 77,348 |
Distribution Fees and Other Income [Member] | ||
Revenues | ||
Total revenues | $ 8,448 | $ 10,149 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED [Abstract] | ||
Net income | $ 19,892 | $ 27,261 |
Other comprehensive gain, net of tax: | ||
Foreign currency translation | 20 | 89 |
Other comprehensive gain | 20 | 89 |
Comprehensive income | $ 19,912 | $ 27,350 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
ASSETS | |||
Cash and cash equivalents | $ 64,389 | $ 41,202 | $ 27,383 |
Investments in securities | 31,623 | 33,789 | 31,407 |
Receivable from brokers | 3,529 | 3,423 | 1,876 |
Investment advisory fees receivable | 23,058 | 25,677 | 27,150 |
Receivable from affiliates | 4,435 | 4,194 | 4,794 |
Deferred tax asset and income tax receivable | 15,661 | 15,001 | 12,878 |
Other assets | 11,534 | 11,326 | 11,505 |
Total assets | 154,229 | 134,612 | 116,993 |
LIABILITIES AND EQUITY | |||
Payable to brokers | 478 | 112 | 164 |
Income taxes payable and deferred tax liabilities | 8,068 | 2,388 | 7,491 |
Capital lease obligation | 5,300 | 4,794 | 4,908 |
Compensation payable | 59,142 | 60,408 | 84,333 |
Payable to affiliates | 0 | 1,041 | 864 |
Accrued expenses and other liabilities | 30,196 | 32,091 | 27,706 |
Sub-total | 103,184 | 100,834 | 125,466 |
AC 4% PIK Note (due November 30, 2020) (Note G) | 0 | 0 | 40,000 |
5.875% Senior notes (net of issuance costs of $51, $57 and $75, respectively) (due June 1, 2021) (Note G) | 24,174 | 24,168 | 24,150 |
Total liabilities | 127,358 | 125,002 | 189,616 |
Commitments and contingencies (Note J) | |||
GAMCO Investors, Inc. stockholders' equity | |||
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued and outstanding | 0 | 0 | 0 |
Additional paid-in capital | 14,769 | 14,192 | 12,759 |
Retained earnings | 302,139 | 282,928 | 194,732 |
Accumulated other comprehensive income | (220) | (240) | (145) |
Treasury stock, at cost (6,138,356, 6,012,002 and 5,711,341 shares, respectively) | (289,850) | (287,303) | (280,002) |
Total GAMCO Investors, Inc. stockholders' equity (deficit) | 26,871 | 9,610 | (72,623) |
Total liabilities and equity | 154,229 | 134,612 | 116,993 |
Class A [Member] | |||
GAMCO Investors, Inc. stockholders' equity | |||
Common stock | 14 | 14 | 14 |
Class B [Member] | |||
GAMCO Investors, Inc. stockholders' equity | |||
Common stock | $ 19 | $ 19 | $ 19 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
GAMCO Investors, Inc. stockholders equity | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, outstanding (in shares) | 28,900,000 | 29,000,000 | 28,900,000 |
Treasury stock, shares (in shares) | 6,138,356 | 6,012,002 | 5,711,341 |
Class A [Member] | |||
GAMCO Investors, Inc. stockholders equity | |||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 15,966,926 | 15,969,303 | 15,541,489 |
Common Stock, outstanding (in shares) | 9,828,570 | 9,957,301 | 9,830,148 |
Class B [Member] | |||
GAMCO Investors, Inc. stockholders equity | |||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 24,000,000 | 24,000,000 | 24,000,000 |
Common Stock, outstanding (in shares) | 19,024,117 | 19,024,240 | 19,024,404 |
AC 4% PIK Note [Member] | |||
LIABILITIES AND EQUITY | |||
Debt instrument, interest rate | 4.00% | ||
Debt instrument, maturity date | Nov. 30, 2020 | ||
5.875% Senior Notes [Member] | |||
LIABILITIES AND EQUITY | |||
Debt instrument, interest rate | 5.875% | 5.875% | 5.875% |
Debt issuance costs | $ 51 | $ 57 | $ 75 |
Debt instrument, maturity date | Jun. 1, 2021 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASU | ASU 2016-01 [Member] | $ 0 | $ 0 | $ 12,110 | $ (12,110) | $ 0 | $ 0 |
Balance at Dec. 31, 2017 | 33 | 12,572 | 155,939 | 11,876 | (276,693) | (96,273) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 27,261 | 0 | 0 | 27,261 |
Foreign currency translation | 0 | 0 | 0 | 89 | 0 | 89 |
Dividends declared | 0 | 0 | (578) | 0 | 0 | (578) |
Stock based compensation expense | 0 | 187 | 0 | 0 | 0 | 187 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (3,309) | (3,309) |
Balance at Mar. 31, 2018 | 33 | 12,759 | 194,732 | (145) | (280,002) | (72,623) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASU | ASU 2016-02 [Member] | 0 | 0 | (106) | 0 | 0 | (106) |
Balance at Dec. 31, 2018 | 33 | 14,192 | 282,928 | (240) | (287,303) | 9,610 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 19,892 | 0 | 0 | 19,892 |
Foreign currency translation | 0 | 0 | 0 | 20 | 0 | 20 |
Dividends declared | 0 | 0 | (575) | 0 | 0 | (575) |
Stock based compensation expense | 0 | 577 | 0 | 0 | 0 | 577 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (2,547) | (2,547) |
Balance at Mar. 31, 2019 | $ 33 | $ 14,769 | $ 302,139 | $ (220) | $ (289,850) | $ 26,871 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Dividends declared (in dollars per share) | $ 0.02 | $ 0.02 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income | $ 19,892 | $ 27,261 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 313 | 146 |
Stock based compensation expense | 577 | 187 |
Deferred income taxes | 4,015 | (1,409) |
Foreign currency translation loss | 20 | 89 |
Cost basis of donated securities | 1,691 | 0 |
Unrealized on available for sale securities | 920 | 0 |
Net gains on sales of available for sale securities | 6 | 0 |
(Increase) decrease in assets: | ||
Investments in trading securities | 2,686 | 5,384 |
Receivable from affiliates | (239) | 935 |
Receivable from brokers | (106) | (298) |
Investment advisory fees receivable | 2,619 | 11,562 |
Income tax receivable and deferred tax assets | (660) | 2,738 |
Other assets | (623) | 490 |
Increase (decrease) in liabilities: | ||
Payable to affiliates | (1,041) | 9 |
Payable to brokers | 366 | (282) |
Income taxes payable and deferred tax liabilities | 1,664 | 5,772 |
Compensation payable | (1,267) | 1,424 |
Accrued expenses and other liabilities | (1,393) | (988) |
Total adjustments | 9,548 | 25,759 |
Net cash provided by operating activities | 29,440 | 53,020 |
Investing activities | ||
Purchases of available for sale securities | (3,393) | 0 |
Proceeds from sales of available for sale securities | 252 | 0 |
Return of capital on available for sale securities | 5 | 0 |
Net cash used in investing activities | (3,136) | 0 |
Financing activities | ||
Dividends paid | (571) | (578) |
Purchase of treasury stock | (2,547) | (3,309) |
Amortization of debt issuance costs | 6 | 6 |
Net cash used in financing activities | (3,112) | (43,360) |
Effect of exchange rates on cash and cash equivalents | (5) | (98) |
Net increase in cash and cash equivalents | 23,187 | 9,562 |
Cash and cash equivalents at beginning of period | 41,202 | 17,821 |
Cash and cash equivalents at end of period | 64,389 | 27,383 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 279 | 384 |
Cash paid for taxes | 764 | 960 |
AC 4% PIK Note [Member] | ||
Financing activities | ||
Repayment of debt | 0 | (10,000) |
AC 1.6% Note [Member] | ||
Financing activities | ||
Repayment of debt | 0 | (15,000) |
Margin Loan [Member] | ||
Financing activities | ||
Issuance of debt | 0 | 5,000 |
Repayment of debt | $ 0 | $ (19,479) |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Non-cash activity: | ||
Accrued restricted stock award dividends | $ 8 | $ 0 |
AC 4% PIK Note [Member] | ||
Financing activities | ||
Debt instrument, interest rate | 4.00% | |
AC 1.6% Note [Member] | ||
Financing activities | ||
Debt instrument, interest rate | 1.60% |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | A. Significant Accounting Policies Basis of Presentation Unless we have indicated otherwise, or the context otherwise requires, references in this report to “GAMCO Investors, Inc.,” “GAMCO,” “the Company,” “GBL,” “we,” “us” and “our” or similar terms are to GAMCO Investors, Inc., its predecessors and its subsidiaries. The unaudited interim condensed consolidated financial statements of GAMCO included herein have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP in the United States for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of GAMCO for the interim periods presented and are not necessarily indicative of a full year’s results. The interim condensed consolidated financial statements include the accounts of GAMCO and its subsidiaries. Intercompany accounts and transactions are eliminated. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018. Use of Estimates The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported on the interim condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Recent Accounting Developments In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, which amends the guidance in U.S. GAAP for the accounting for leases. ASU 2016-02 requires a lessee to recognize assets and liabilities arising from most operating leases in the condensed consolidated statement of financial position. It requires these operating leases to be recorded on the balance sheet as right of use assets and offsetting lease liability obligations. The Company adopted this guidance on January 1, 2019. We have elected the transition method allowed under ASU 2018-11, which does not require restatement of comparative periods but instead requires a cumulative adjustment to opening retained earnings at the January 1, 2019 adoption date. The Company has performed the analysis on the transition to this new guidance and recorded a $106,000 reduction to retained earnings, a $650,000 increase to other assets and a $756,000 increase to lease liability obligations as a result. In January 2017, the FASB issued ASU 2017-04 to simplify the process used to test for goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This new guidance will be effective for the Company’s first quarter of 2020. The Company is currently evaluating the potential effect of this new guidance on its condensed consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | B. Revenue Recognition The revenue streams in the discussion below and in the table at the end of this Note include those that are within the scope of ASU 2014-09. In all cases for all revenue streams discussed below, the revenue generated is from a single transaction price, and there is no need to allocate the amounts across more than a single revenue stream. The customer for all revenues derived from open-end and closed-end funds described in detail below has been determined to be the fund itself and not the ultimate underlying investor in the fund. The Company has identified similar performance obligations under ASU 2014-09 as compared with ASC Topic 605. As a result, the timing of the recognition of our revenue remains the same under this new guidance as it was under ASC Topic 605. Significant judgments that affect the amounts and timing of revenue recognition: The Company’s analysis of the timing of revenue recognition for each revenue stream is based upon an analysis of current contract terms. Performance obligations could, however, change from time to time if and when existing contracts are modified or new contracts are entered into. These changes could potentially affect the timing of satisfaction of performance obligations, the determination of the transaction price, and the allocation of the price to performance obligations. In the case of the revenue streams discussed below, the performance obligation is satisfied either at a point in time or over time. For performance correlated and conditional revenues, the performance obligation (advising a client portfolio) is satisfied over time, while recognition of revenues effectively occurs at the end of the measurement period as defined within the contract, as such amounts are subject to reduction to zero on the date where the measurement period ends even if the performance benchmarks were exceeded during the intervening period. The judgments outlined below, where the determination as to these factors is discussed in detail, are continually reviewed and monitored by the Company when new contracts or contract modifications occur. Transaction price is in all instances formulaic and not subject to significant (or any) judgment at the current time. The allowance for doubtful accounts is subject to judgment. There were no impairment losses (allowance for doubtful accounts) on any receivables from any revenue stream at the end of the three months ended March 31, 2019. Advisory Fee Revenues Advisory fees for open-end funds, closed-end funds, sub-advisory accounts, SICAVs, and Exchange Traded Managed Funds (“ETMFs”) are earned based on predetermined percentages of the average net assets of the individual funds and are recognized as revenues as the related services are performed. Fees for open-end funds, one non-U.S. closed-end fund, sub-advisory accounts, SICAVs, and ETMFs are computed on a daily basis on average net assets under management (“AUM”). Fees for U.S. closed-end funds are computed on average weekly net AUM, and fees for one non-U.S. closed-end fund are computed on a daily basis based on market value. These fees are received in cash after the end of each monthly period within 30 days. The revenue recognition occurs ratably as the performance obligation (advising the fund) is met continuously over time. There is a risk of non-payment, and therefore an impairment loss on these receivables is possible at each reporting date. There were no such impairment losses for the current period. Advisory fees for Institutional & Private Wealth Management accounts are earned based on predetermined percentages of the AUM and are generally computed quarterly based on account values at the end of the preceding quarter. The revenue recognition occurs daily as the performance obligation (advising the client portfolio) is met continuously. These fees are received in cash, typically within 60 days of the client being billed. There is a risk of non-payment, and therefore an impairment loss on these receivables is possible at each reporting date. There were no such impairment losses for the current period. Performance Correlated and Conditional Revenues Investment advisory fees earned on a portion of the closed-end funds' preferred shares are earned at year-end if the total return to common shareholders of the closed-end fund for the calendar year exceeds the dividend rate of the preferred shares. These fees are recognized at the end of the measurement period which coincides with the calendar year. The fee would also be earned and the contract period ended at any interim point in time that the preferred shares are redeemed. These fees are received in cash after the end of the measurement period, within 30 days. We also receive incentive fees from certain institutional clients which are based upon exceeding a specific benchmark index. These fees are recognized at the end of the stipulated contract period, which is generally annually, for the respective account. The fee would also be earned and the contract period ended at any interim point in time that the client terminated its relationship with us. These fees are received in cash after the end of the measurement period, typically within 60 days. One fund within the SICAV structure charges a performance fee. That fee is recognized at the end of the measurement period which coincides with the calendar year. The fee would also be earned and the measurement period ended at any interim point in time that the client redeemed their shares. That fee is received in cash after the end of the measurement period, within 30 days. We also receive conditional fees from certain institutional clients which are based upon exceeding a defined return for these accounts. These fees are recognized at the end of the stipulated contract period, which is generally annually, for the respective account. The fee would also be earned and the contract period ended at any interim point in time that the client terminated its relationship with us. These fees are received in cash after the end of the measurement period, typically within 60 days. In all cases of the performance correlated and conditional revenue, because of the variable nature of the consideration, revenue recognition is delayed until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, which is generally when the uncertainty associated with the variable consideration is subsequently resolved (for example, the measurement period has concluded and the hurdle has been exceeded). There is a risk of non-payment, and therefore an impairment loss on these receivables is possible at each reporting date. There were no such impairment losses for the current period. Distribution Fees and Other Income Distribution fees and other income primarily includes distribution fee revenue earned in accordance with Rule 12b-1 of the Company Act, as amended, along with sales charges and underwriting fees associated with the sale of the mutual funds. Distribution plan fees are computed based on average daily net assets of each fund and are accrued for during the period in which they are earned. These fees are received in cash after the end of each monthly period within 30 days. In evaluating the appropriate timing of the recognition of these fees, we applied the guidance on up-front fees to determine whether such fees are related to the transfer of a promised service (a distinct performance obligation). Our conclusion is that the service being provided by G.distributors to the customer in exchange for the fee is for the initial distribution of the funds and is completed at the time of the sale. Any fixed amounts are recognized on the trade date, and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the fund, both of which are highly susceptible to factors outside the Company’s influence, the Company does not believe that it can overcome this constraint until the market value of the fund and the investor activities are known, which are usually monthly. Sales charges and underwriting fees associated with the sale of the mutual funds are recognized on the trade date of the sale of the shares. There is a risk of non-payment, and therefore an impairment loss on these receivables is possible at each reporting date. There were no such impairment losses for the current period. Revenue Disaggregated The following table presents our revenue disaggregated by account type: Three Months Ended March 31, 2019 2018 Advisory Fees: Open-end Funds $ 26,925 $ 31,834 Closed-end Funds 15,789 17,145 Sub-advisory accounts 935 1,092 Institutional & Private Wealth Management 20,726 25,965 SICAVs 1,335 1,289 Performance-based 178 23 Distribution and other income 8,448 10,149 Total revenues $ 74,336 $ 87,497 |
Investment in Securities
Investment in Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investment in Securities [Abstract] | |
Investment in Securities | C. Investment in Securities Effective with the Company’s adoption of ASU 2016-01 on January 1, 2018, the Company carries all investments in equity securities at fair value through net income (“FVTNI”) which approximates market value. The Company has no securities that qualify for the equity method or for consolidation of the investee for which the Company has elected the practicality exception to fair value measurement. Investments in securities at March 31, 2019, December 31, 2018 and March 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 March 31, 2018 Estimated Estimated Estimated Cost Market Value Cost Market Value Cost Market Value (In thousands) Securities carried at FVTNI: Common stocks $ 40,562 $ 30,408 $ 38,865 $ 32,414 $ 17,467 $ 31,291 Closed-end funds 1,181 1,173 1,414 1,337 99 105 Mutual funds 44 42 44 38 12 11 Total securities carried at FVTNI $ 41,787 $ 31,623 $ 40,323 $ 33,789 $ 17,578 $ 31,407 There were no securities sold, not yet purchased at March 31, 2019, December 31, 2018 and March 31, 2018. Investments in United States Treasury Bills and Notes with maturities of greater than three months at the time of purchase are classified as investments in securities, and those with maturities of three months or less at the time of purchase are classified as cash equivalents. Securities carried at FVTNI for the March 31, 2019, December 31, 2018, and March 31, 2018 period-end are stated at fair value, with any unrealized gains or losses reported in current period earnings. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value [Abstract] | |
Fair Value | D. Fair Value The following tables present information about the Company’s assets and liabilities by major categories measured at fair value on a recurring basis as of March 31, 2019, December 31, 2018 and March 31, 2018 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2019 (in thousands) Quoted Prices in Active Significant Other Significant Balance as of Markets for Identical Observable Unobservable March 31, Assets Assets (Level 1) Inputs (Level 2) Inputs (Level 3) 2019 Cash equivalents $ 63,985 $ - $ - $ 63,985 Investments in securities: Common stocks 30,408 - - 30,408 Closed-end Funds 1,173 - - 1,173 Mutual Funds 42 - - 42 Total investments in securities 31,623 - - 31,623 Total assets at fair value $ 95,608 $ - $ - $ 95,608 Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2018 (in thousands) Quoted Prices in Active Significant Other Significant Balance as of Markets for Identical Observable Unobservable December 31, Assets Assets (Level 1) Inputs (Level 2) Inputs (Level 3) 2018 Cash equivalents $ 40,905 $ - $ - $ 40,905 Investments in securities: Common stocks 32,414 - - 32,414 Closed-end Funds 1,337 - - 1,337 Mutual Funds 38 - - 38 Total investments in securities 33,789 - - 33,789 Total assets at fair value $ 74,694 $ - $ - $ 74,694 Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2018 (in thousands) Quoted Prices in Active Significant Other Significant Balance as of Markets for Identical Observable Unobservable March 31, Assets Assets (Level 1) Inputs (Level 2) Inputs (Level 3) 2018 Cash equivalents $ 27,034 $ - $ - $ 27,034 Investments in securities: Common stocks 31,291 - - 31,291 Closed-end Funds 105 - - 105 Mutual Funds 11 - - 11 Total investments in securities 31,407 - - 31,407 Total assets at fair value $ 58,441 $ - $ - $ 58,441 During the quarters ended March 31, 2019 and 2018, there were no transfers between any Level 1 and Level 2 holdings, or between Level 1 and Level 3 holdings. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | E. Income Taxes The effective tax rate ( ETR ) for the three months ended March 31, 2019 and March 31, 2018 was 25.7% and . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | F. Earnings Per Share The Three Months Ended March 31, (In thousands, except per share amounts) 2019 2018 Basic: Net income $ 19,892 $ 27,261 Weighted average shares outstanding 28,507 28,916 Basic net income $ 0.70 $ 0.94 Diluted: Net income $ 19,892 $ 27,261 Weighted average shares outstanding 28,507 28,916 Restricted stock awards 32 - Total 28,539 28,916 Diluted net income $ 0.70 $ 0.94 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Debt | G. Debt Debt consists of the following: March 31, 2019 December 31, 2018 March 31, 2018 Carrying Fair Value Carrying Fair Value Carrying Fair Value Value Level 2 Value Level 2 Value Level 2 (In thousands) AC 4% PIK Note $ - $ - $ - $ - $ 40,000 $ 39,860 5.875% Senior notes 24,174 24,020 24,168 23,061 24,150 23,742 Total $ 24,174 $ 24,020 $ 24,168 $ 23,061 $ 64,150 $ 63,602 AC 4% PIK Note In connection with the Spin-off of Associated Capital Group, Inc. (“AC”) on November 30, 2015, the Company issued a $250 million promissory note (the “AC 4% PIK Note”) payable to AC. The AC 4% PIK Note bore interest at 4.0% per annum. The original principal amount had a maturity date of November 30, 2020. The Company was, under the terms of the note, able to prepay the AC 4% PIK Note (in whole or in part) prior to maturity without penalty. During the three months ended March 31, 2018, the Company prepaid $10 million of principal of the AC 4% PIK Note against the principal amount due on November 30, 2020. The AC 4% PIK Note was fully repaid on August 28, 2018 prior to maturity without penalty. 5.875% Senior Notes On May 31, 2011, the Company issued 10-year, $100 million senior notes (“Senior Notes”). The Senior Notes mature on June 1, 2021 and bear interest at 5.875% per annum, payable semi-annually on June 1 and December 1 of each year and commenced on December 1, 2011. Upon the occurrence of a change of control triggering event, as defined in the indenture, the Company would be required to offer to repurchase the Senior notes at 101% of their principal amount. At March 31, 2019, December 31, 2018 and March 31, 2018, the debt was recorded at its face value, net of issuance costs, of $24.2 million, $24.2 million and $24.2 million, respectively. The Company’s debt, which is a Level 2 valuation, is carried at amortized cost on the condensed consolidated statements of financial position. The Company has not elected the fair value option for its debt, and, therefore, the provisions of ASU 2016-01 (adopted by the Company on January 1, 2018) related to instrument-specific credit risk are not applicable. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | H. Stockholders ’ Shares outstanding were 28.9 million, 29.0 million and 28.9 million on March 31, 2019, December 31, 2018 and March 31, 2018, respectively. Dividends Record Payment Date Date Amount Three months ended March 31, 2019 April 16, 2019 April 30, 2019 $ 0.02 Three months ended March 31, 2018 March 13, 2018 March 27, 2018 $ 0.02 Voting Rights The holders of Class A Stock and Class B Common stock (“Class B Stock”) have identical rights except that (i) holders of Class A Stock are entitled to one vote per share, while holders of Class B Stock are entitled to ten votes per share on all matters to be voted on by shareholders in general, and (ii) holders of Class A Stock are not eligible to vote on matters relating exclusively to Class B Stock and vice versa. Stock Award and Incentive Plan The Company maintains one Plan approved by the shareholders, which is designed to provide incentives which will attract and retain individuals key to the success of GBL through direct or indirect ownership of our common stock. Benefits under the Plan may be granted in any one or a combination of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents and other stock or cash based awards. A maximum of 7.5 million shares of Class A Stock have been reserved for issuance under the Plan by a committee of the Board of Directors responsible for administering the Plan (“Compensation Committee”). Under the Plan, the committee may grant restricted stock awards (“RSAs”) and either incentive or nonqualified stock options with a term not to exceed ten years from the grant date and at an exercise price that the committee may determine. On January 5, 2018, the Compensation Committee of GBL accelerated the vesting relating to the remaining 19,400 RSAs outstanding at that time. As a result, GBL recorded an incremental $0.2 million of stock-based compensation expense during the first quarter of 2018. On April 4, 2018, 270,500 RSAs were issued at a grant price of $24.77. On August 7, 2018, 162,450 RSAs were issued at a grant price of $25.16. On September 17, 2018, 5,000 RSAs were issued at a grant price of $25.74. As of March 31, 2019, there were 425,150 of these RSA shares outstanding with a weighted average grant price of $24.93.There were no RSAs outstanding as of March 31, 2018. All grants of the RSA shares were recommended by the Company's Chairman, who did not receive a RSA, and approved by the Compensation Committee. This expense, net of estimated forfeitures, is recognized over the vesting period for these awards which is either (1) 30% over three years from the date of grant and 70% over five years from the date of grant or (2) 30% over three years from the date of grant and 10% each year over years four through ten from the date of grant. During the vesting period, dividends to RSA holders are held for them until the RSA vesting dates and are forfeited if the grantee is no longer employed by the Company on the vesting dates. Dividends declared on these RSAs, less estimated forfeitures, are charged to retained earnings (deficit) on the declaration date. During the three months ended March 31, 2018, the Company reduced previously recorded tax benefits relating to RSA expense by $0.1 million on RSAs that vested. There were no RSAs that vested for the three months ended March 31, 2019. For the three months ended March 31, 2019 and March 31, 2018, we recognized stock-based compensation expense of $0.6 million and $0.2 million, respectively. Actual and projected stock-based compensation expense for RSA shares for the years ended December 31, 2018 through December 31, 2023 is as follows (in thousands): 2018 2019 2020 2021 2022 2023 Q1 $ 187 $ 577 $ 577 $ 577 $ 330 $ 329 Q2 354 577 577 426 330 128 Q3 501 577 577 362 329 43 Q4 577 577 577 330 329 - Full Year $ 1,619 $ 2,308 $ 2,308 $ 1,695 $ 1,318 $ 500 The total compensation costs related to non-vested RSAs not yet recognized is approximately $7.6 million as of March 31, 2019. Stock Repurchase Program In March 1999, GAMCO s Board of Directors established the Stock Repurchase Program to grant management the authority to repurchase shares of our Class A Common Stock. For the three months ended March 31, 2019, the Company repurchased 126,354 shares at an average price per share of $20.15. At March 31, 2019, the total shares available under the program to be repurchased in the future were 738,456. Shelf Registration In April 2018, the SEC declared effective the Company’s “shelf” registration statement on Form S-3 giving the Company the flexibility to sell any combination of senior and subordinate debt securities, convertible debt securities and equity securities (including common and preferred securities) up to a total amount of $500 million. The shelf is available through April 2021, at which time it may be renewed. |
Identifiable Intangible Assets
Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Identifiable Intangible Assets [Abstract] | |
Identifiable Intangible Assets | I. Identifiable Intangible Assets As a result of becoming the advisor to the Gabelli Enterprise Mergers and Acquisitions Fund and the associated consideration paid, the Company maintains an identifiable intangible asset of $1.9 million within other assets in the condensed consolidated statements of financial condition at March 31, 2019, December 31, 2018 and March 31, 2018. The investment advisory agreement is subject to annual renewal by the fund's Board of Directors, which the Company expects to be renewed, and the Company does not expect to incur additional expense as a result, which is consistent with other investment advisory agreements entered into by the Company. The advisory contract is next up for renewal in February 2020. As a result of becoming the advisor to the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. and the associated consideration paid, the Company maintains an identifiable intangible asset of $1.6 million within other assets in the condensed consolidated statement of financial condition at March 31, 2019, December 31, 2018 and March 31, 2018. The advisory contracts for the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. are next up for renewal in August 2019. The Company assesses the recoverability of this intangible asset at least annually, or more often should events warrant. There were no indicators of impairment for the three months ended March 31, 2019 or March 31, 2018, and as such there was no impairment analysis performed or charge recorded. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | J. Commitments and Contingencies From time to time, the Company may be named in legal actions and proceedings. These actions may seek substantial or indeterminate compensatory as well as punitive damages or injunctive relief. The Company is also subject to governmental or regulatory examinations or investigations. The examinations or investigations could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief. For any such matters, the condensed consolidated financial statements include the necessary provisions for losses that the Company believes are probable and estimable. Furthermore, the Company evaluates whether there exists losses which may be reasonably possible and will, if material, make the necessary disclosures. However, management believes such amounts, both those that are probable and those that are reasonably possible, are not material to the Company’s financial condition, operations or cash flows at March 31, 2019. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | K. Related Party Transactions On February 23, 2018, the Chief Executive Officer of the Company elected to waive all of his compensation that he would have otherwise been entitled to for the period of March 1, 2018 through December 31, 2018. On December 26, 2018, the CEO elected to continue to waive all of his compensation that he would otherwise have been entitled to for the period from January 1, 2019 to March 31, 2019. For the three months ended March 31, 2019 and March 31, 2018, the waiver reduced compensation by $12.2 million and $4.9 million, respectively, and management fee by $1.7 million and $1.7 million, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | L. Subsequent Events On April 1, 2019, GAMCO and AC agreed to extend AC’s lease agreement, that expired on March 31, 2019, on the same terms and conditions on a month-to-month basis commencing on April 1, 2019. On April 1, 2019, the deferred cash compensation agreement (“DCCA”) with the CEO covering compensation from the fourth quarter of 2017 vested in accordance with the terms of the agreement. The CEO earned $15.5 million during the fourth quarter of 2017 resulting in the issuance of 530,662 RSUs based on the volume weighted average price (“VWAP”) of GBL stock over the fourth quarter of 2017. Under the terms of the agreement, if the RSUs were settled in cash, the amount paid to the CEO upon vesting would be capped and calculated as the number of net RSUs vesting (530,662) valued at the lesser of the VWAP over the fourth quarter of 2017 or the VWAP on the date of vesting. The Company elected to settle the DCCA in cash, as had been the stated intention at the time the DCCA was entered into, notwithstanding the Compensation Committee’s ability to settle it by issuing stock. This resulted in a cash payment of $11.0 million by the Company in April 2019, which, because of the cap, was $4.5 million less than what he had been entitled to receive absent the DCCA. On April 16, 2019, GAMCO repurchased 1.2 million shares of GBL class A stock at $21.00 per share in a private transaction. This transaction resulted in a 12.4% reduction in Class A shares outstanding from 9.8 million to 8.6 million and a 4.2% reduction in total shares outstanding from 28.8 million to 27.6 million. From April 1, 2019 to May 7, 2019, and excluding the private transaction, the Company repurchased 29,484 shares at $20.90 per share. On May 7, 2019, the Board of Directors declared its regular quarterly dividend of $0.02 per share to all of its shareholders, payable on June 25, 2019 to shareholders of record on June 11, 2019. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Unless we have indicated otherwise, or the context otherwise requires, references in this report to “GAMCO Investors, Inc.,” “GAMCO,” “the Company,” “GBL,” “we,” “us” and “our” or similar terms are to GAMCO Investors, Inc., its predecessors and its subsidiaries. The unaudited interim condensed consolidated financial statements of GAMCO included herein have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP in the United States for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of GAMCO for the interim periods presented and are not necessarily indicative of a full year’s results. The interim condensed consolidated financial statements include the accounts of GAMCO and its subsidiaries. Intercompany accounts and transactions are eliminated. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018. |
Use of Estimates | Use of Estimates The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported on the interim condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Recent Accounting Developments | Recent Accounting Developments In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, which amends the guidance in U.S. GAAP for the accounting for leases. ASU 2016-02 requires a lessee to recognize assets and liabilities arising from most operating leases in the condensed consolidated statement of financial position. It requires these operating leases to be recorded on the balance sheet as right of use assets and offsetting lease liability obligations. The Company adopted this guidance on January 1, 2019. We have elected the transition method allowed under ASU 2018-11, which does not require restatement of comparative periods but instead requires a cumulative adjustment to opening retained earnings at the January 1, 2019 adoption date. The Company has performed the analysis on the transition to this new guidance and recorded a $106,000 reduction to retained earnings, a $650,000 increase to other assets and a $756,000 increase to lease liability obligations as a result. In January 2017, the FASB issued ASU 2017-04 to simplify the process used to test for goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This new guidance will be effective for the Company’s first quarter of 2020. The Company is currently evaluating the potential effect of this new guidance on its condensed consolidated financial statements and related disclosures. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Disaggregated | Revenue Disaggregated The following table presents our revenue disaggregated by account type: Three Months Ended March 31, 2019 2018 Advisory Fees: Open-end Funds $ 26,925 $ 31,834 Closed-end Funds 15,789 17,145 Sub-advisory accounts 935 1,092 Institutional & Private Wealth Management 20,726 25,965 SICAVs 1,335 1,289 Performance-based 178 23 Distribution and other income 8,448 10,149 Total revenues $ 74,336 $ 87,497 |
Investment in Securities (Table
Investment in Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investment in Securities [Abstract] | |
Investments in Securities | Investments in securities at March 31, 2019, December 31, 2018 and March 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 March 31, 2018 Estimated Estimated Estimated Cost Market Value Cost Market Value Cost Market Value (In thousands) Securities carried at FVTNI: Common stocks $ 40,562 $ 30,408 $ 38,865 $ 32,414 $ 17,467 $ 31,291 Closed-end funds 1,181 1,173 1,414 1,337 99 105 Mutual funds 44 42 44 38 12 11 Total securities carried at FVTNI $ 41,787 $ 31,623 $ 40,323 $ 33,789 $ 17,578 $ 31,407 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s assets and liabilities by major categories measured at fair value on a recurring basis as of March 31, 2019, December 31, 2018 and March 31, 2018 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2019 (in thousands) Quoted Prices in Active Significant Other Significant Balance as of Markets for Identical Observable Unobservable March 31, Assets Assets (Level 1) Inputs (Level 2) Inputs (Level 3) 2019 Cash equivalents $ 63,985 $ - $ - $ 63,985 Investments in securities: Common stocks 30,408 - - 30,408 Closed-end Funds 1,173 - - 1,173 Mutual Funds 42 - - 42 Total investments in securities 31,623 - - 31,623 Total assets at fair value $ 95,608 $ - $ - $ 95,608 Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2018 (in thousands) Quoted Prices in Active Significant Other Significant Balance as of Markets for Identical Observable Unobservable December 31, Assets Assets (Level 1) Inputs (Level 2) Inputs (Level 3) 2018 Cash equivalents $ 40,905 $ - $ - $ 40,905 Investments in securities: Common stocks 32,414 - - 32,414 Closed-end Funds 1,337 - - 1,337 Mutual Funds 38 - - 38 Total investments in securities 33,789 - - 33,789 Total assets at fair value $ 74,694 $ - $ - $ 74,694 Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2018 (in thousands) Quoted Prices in Active Significant Other Significant Balance as of Markets for Identical Observable Unobservable March 31, Assets Assets (Level 1) Inputs (Level 2) Inputs (Level 3) 2018 Cash equivalents $ 27,034 $ - $ - $ 27,034 Investments in securities: Common stocks 31,291 - - 31,291 Closed-end Funds 105 - - 105 Mutual Funds 11 - - 11 Total investments in securities 31,407 - - 31,407 Total assets at fair value $ 58,441 $ - $ - $ 58,441 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income per Share | The Three Months Ended March 31, (In thousands, except per share amounts) 2019 2018 Basic: Net income $ 19,892 $ 27,261 Weighted average shares outstanding 28,507 28,916 Basic net income $ 0.70 $ 0.94 Diluted: Net income $ 19,892 $ 27,261 Weighted average shares outstanding 28,507 28,916 Restricted stock awards 32 - Total 28,539 28,916 Diluted net income $ 0.70 $ 0.94 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Debt | Debt consists of the following: March 31, 2019 December 31, 2018 March 31, 2018 Carrying Fair Value Carrying Fair Value Carrying Fair Value Value Level 2 Value Level 2 Value Level 2 (In thousands) AC 4% PIK Note $ - $ - $ - $ - $ 40,000 $ 39,860 5.875% Senior notes 24,174 24,020 24,168 23,061 24,150 23,742 Total $ 24,174 $ 24,020 $ 24,168 $ 23,061 $ 64,150 $ 63,602 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity [Abstract] | |
Dividends | Dividends Record Payment Date Date Amount Three months ended March 31, 2019 April 16, 2019 April 30, 2019 $ 0.02 Three months ended March 31, 2018 March 13, 2018 March 27, 2018 $ 0.02 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
New Accounting Pronouncement [Abstract] | ||
Increase to other assets | $ 623 | $ (490) |
ASU 2016-02 [Member] | ||
New Accounting Pronouncement [Abstract] | ||
Impact of ASU adoption on retained earnings | (106) | |
Increase to other assets | 650 | |
Increase to lease liability obligations | $ 756 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue Streams [Abstract] | ||
Revenue | $ 74,336 | $ 87,497 |
Closed-end Funds [Member] | Performance Correlated [Member] | ||
Revenue Streams [Abstract] | ||
Number of days for customer to make payment after being invoiced | 30 days | |
Advisory Fees [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | $ 65,888 | 77,348 |
Advisory Fees [Member] | Performance Correlated [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | 178 | 23 |
Advisory Fees [Member] | Conditional [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | $ 0 | 0 |
Number of days for customer to make payment after being invoiced | 60 days | |
Advisory Fees [Member] | Open-end Funds [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | $ 26,925 | 31,834 |
Number of days for customer to make payment after being invoiced | 30 days | |
Advisory Fees [Member] | Closed-end Funds [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | $ 15,789 | 17,145 |
Number of days for customer to make payment after being invoiced | 30 days | |
Advisory Fees [Member] | Closed-end Funds [Member] | Performance Correlated [Member] | ||
Revenue Streams [Abstract] | ||
Number of days for customer to make payment after being invoiced | 30 days | |
Advisory Fees [Member] | Sub-advisory Accounts [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | $ 935 | 1,092 |
Number of days for customer to make payment after being invoiced | 30 days | |
Advisory Fees [Member] | Institutional and Private Wealth Management Clients [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | $ 20,726 | 25,965 |
Number of days for customer to make payment after being invoiced | 60 days | |
Advisory Fees [Member] | Institutional and Private Wealth Management Clients [Member] | Performance Correlated [Member] | ||
Revenue Streams [Abstract] | ||
Number of days for customer to make payment after being invoiced | 60 days | |
Advisory Fees [Member] | SICAVs [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | $ 1,335 | 1,289 |
Number of days for customer to make payment after being invoiced | 30 days | |
Distribution Fees [Member] | ||
Revenue Streams [Abstract] | ||
Revenue | $ 8,448 | $ 10,149 |
Number of days for customer to make payment after being invoiced | 30 days |
Investment in Securities, Inves
Investment in Securities, Investment in Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Securities carried at FVTNI [Abstract] | |||
Cost | $ 41,787 | $ 40,323 | $ 17,578 |
Fair Value | 31,623 | 33,789 | 31,407 |
Common Stock [Member] | |||
Securities carried at FVTNI [Abstract] | |||
Cost | 40,562 | 38,865 | 17,467 |
Fair Value | 30,408 | 32,414 | 31,291 |
Closed End Funds [Member] | |||
Securities carried at FVTNI [Abstract] | |||
Cost | 1,181 | 1,414 | 99 |
Fair Value | 1,173 | 1,337 | 105 |
Mutual Funds [Member] | |||
Securities carried at FVTNI [Abstract] | |||
Cost | 44 | 44 | 12 |
Fair Value | $ 42 | $ 38 | $ 11 |
Investment in Securities, Secur
Investment in Securities, Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Securities carried at FVTNI [Abstract] | ||||
Investment sold, not yet purchased | $ 0 | $ 0 | $ 0 | |
ASU 2016-01 [Member] | ||||
New Accounting Pronouncement [Abstract] | ||||
Reclassification pursuant to adoption of ASU 2016-01, net of tax | $ 0 | |||
ASU 2016-01 [Member] | Retained Earnings [Member] | ||||
New Accounting Pronouncement [Abstract] | ||||
Reclassification pursuant to adoption of ASU 2016-01, net of tax | 12,110 | |||
ASU 2016-01 [Member] | Accumulated Other Comprehensive Income [Member] | ||||
New Accounting Pronouncement [Abstract] | ||||
Reclassification pursuant to adoption of ASU 2016-01, net of tax | $ (12,110) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Investments in securities [Abstract] | |||
Investments in securities | $ 31,623 | $ 31,407 | $ 33,789 |
Fair Value, Transfers between Level 1 and Level 2 and between Level 1 and Level 3 [Abstract] | |||
Level 1 to level 2 transfers | 0 | 0 | |
Level 2 to level 1 transfers | 0 | 0 | |
Level 1 to level 3 transfers | 0 | 0 | |
Level 3 to level 1 transfers | 0 | 0 | |
Common Stocks [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 30,408 | 31,291 | 32,414 |
Closed-end Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 1,173 | 105 | 1,337 |
Mutual Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 42 | 11 | 38 |
Recurring Basis [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 63,985 | 27,034 | 40,905 |
Investments in securities [Abstract] | |||
Investments in securities | 31,623 | 31,407 | 33,789 |
Total assets at fair value | 95,608 | 58,441 | 74,694 |
Recurring Basis [Member] | Common Stocks [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 30,408 | 31,291 | 32,414 |
Recurring Basis [Member] | Closed-end Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 1,173 | 105 | 1,337 |
Recurring Basis [Member] | Mutual Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 42 | 11 | 38 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 63,985 | 27,034 | 40,905 |
Investments in securities [Abstract] | |||
Investments in securities | 31,623 | 31,407 | 33,789 |
Total assets at fair value | 95,608 | 58,441 | 74,694 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Stocks [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 30,408 | 31,291 | 32,414 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Closed-end Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 1,173 | 105 | 1,337 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mutual Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 42 | 11 | 38 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 0 | 0 | 0 |
Investments in securities [Abstract] | |||
Investments in securities | 0 | 0 | 0 |
Total assets at fair value | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Common Stocks [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Closed-end Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mutual Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 0 | 0 | 0 |
Investments in securities [Abstract] | |||
Investments in securities | 0 | 0 | 0 |
Total assets at fair value | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Common Stocks [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Closed-end Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | 0 | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mutual Funds [Member] | |||
Investments in securities [Abstract] | |||
Investments in securities | $ 0 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Effective tax rate [Abstract] | ||
Effective income tax rate | 25.70% | 22.60% |
Accrual adjustment of uncertain tax position | $ 1.5 | |
Adjusted effective income tax rate | 20.40% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic [Abstract] | ||
Net income | $ 19,892 | $ 27,261 |
Weighted average share outstanding (in shares) | 28,507 | 28,916 |
Basic net income per share (in dollars per share) | $ 0.70 | $ 0.94 |
Diluted [Abstract] | ||
Net income | $ 19,892 | $ 27,261 |
Weighted average share outstanding (in shares) | 28,507 | 28,916 |
Restricted stock awards (in shares) | 32 | 0 |
Total (in shares) | 28,539 | 28,916 |
Diluted net income per share (in dollars per share) | $ 0.70 | $ 0.94 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | May 31, 2011 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Apr. 23, 2018 | Nov. 30, 2015 |
Long-term debt [Abstract] | ||||||
Carrying value | $ 24,174 | $ 64,150 | $ 24,168 | |||
Maximum amount of debt and equity to be issued under shelf registration | $ 500,000 | |||||
Level 2 [Member] | ||||||
Long-term debt [Abstract] | ||||||
Fair value | 24,020 | 63,602 | 23,061 | |||
AC 4% PIK Note [Member] | ||||||
Long-term debt [Abstract] | ||||||
Carrying value | $ 0 | 40,000 | 0 | |||
Debt instrument, interest rate | 4.00% | 4.00% | ||||
Face value of debt | $ 250,000 | |||||
Debt instrument, maturity date | Nov. 30, 2020 | |||||
Prepayment of debt | 10,000 | |||||
Repayment of debt | $ 0 | 10,000 | ||||
AC 4% PIK Note [Member] | Level 2 [Member] | ||||||
Long-term debt [Abstract] | ||||||
Fair value | $ 0 | 39,860 | 0 | |||
AC 1.6% Note [Member] | ||||||
Long-term debt [Abstract] | ||||||
Debt instrument, interest rate | 1.60% | |||||
Repayment of debt | $ 0 | 15,000 | ||||
5.875% Senior Notes [Member] | ||||||
Long-term debt [Abstract] | ||||||
Carrying value | $ 24,174 | $ 24,150 | $ 24,168 | |||
Debt instrument, interest rate | 5.875% | 5.875% | 5.875% | 5.875% | ||
Debt instrument, term | 10 years | |||||
Face value of debt | $ 100,000 | |||||
Debt instrument, maturity date | Jun. 1, 2021 | |||||
Debt issuance costs | $ 51 | $ 75 | $ 57 | |||
Debt redemption price | 101.00% | |||||
5.875% Senior Notes [Member] | Level 2 [Member] | ||||||
Long-term debt [Abstract] | ||||||
Fair value | $ 24,020 | $ 23,742 | $ 23,061 |
Stockholders' Equity, Dividends
Stockholders' Equity, Dividends (Details) - $ / shares shares in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Stockholders' Equity [Abstract] | |||
Shares outstanding (in shares) | 28.9 | 28.9 | 29 |
Dividends [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.02 | $ 0.02 | |
Quarterly Dividend Declared in Q1 2019 [Member] | |||
Dividends [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.02 | ||
Dividend payment date | Apr. 30, 2019 | ||
Dividend record date | Apr. 16, 2019 | ||
Quarterly Dividend Declared in Q1 2018 [Member] | |||
Dividends [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.02 | ||
Dividend payment date | Mar. 27, 2018 | ||
Dividend record date | Mar. 13, 2018 |
Stockholders' Equity, Voting Ri
Stockholders' Equity, Voting Rights, Stock Award and Incentive Plan (Details) $ / shares in Units, $ in Thousands | Sep. 17, 2018$ / sharesshares | Aug. 07, 2018$ / sharesshares | Apr. 04, 2018$ / sharesshares | Jan. 05, 2018shares | Mar. 31, 2019USD ($)VoteperSharePlan$ / sharesshares | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($)shares | Dec. 31, 2018USD ($) |
Stock Award and Incentive Plan [Abstract] | ||||||||||
Number of incentive plans | Plan | 1 | |||||||||
Compensation record expenses due to accelerated vesting | $ 200 | |||||||||
Actual and projected stock based compensation expense for RSA shares and options [Abstract] | ||||||||||
Actual stock based compensation expense | $ 577 | $ 577 | $ 501 | $ 354 | $ 187 | $ 1,619 | ||||
2019 | 2,308 | |||||||||
2020 | 2,308 | |||||||||
2021 | 1,695 | |||||||||
2022 | 1,318 | |||||||||
2023 | 500 | |||||||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||||||||
Compensation cost related to non-vested options not yet recognized | $ 7,600 | |||||||||
Stock Options [Member] | Maximum [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Term of nonqualified stock options | 10 years | |||||||||
Restricted Stock Awards [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
RSAs granted (in shares) | shares | 5,000 | 162,450 | 270,500 | |||||||
Grant date fair value (in dollars per share) | $ / shares | $ 25.74 | $ 25.16 | $ 24.77 | |||||||
RSA shares outstanding (in shares) | shares | 425,150 | 0 | ||||||||
Average weighted grant price (in dollars per share) | $ / shares | $ 24.93 | |||||||||
Number of shares with accelerated vesting (in shares) | shares | 19,400 | |||||||||
Tax benefit from stock based compensation expenses | $ 100 | |||||||||
RSAs vested (in shares) | shares | 0 | |||||||||
Restricted Stock Awards [Member] | Vesting in Three Years from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 30.00% | |||||||||
Award vesting period | 3 years | |||||||||
Restricted Stock Awards [Member] | Vesting in Five Years from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 70.00% | |||||||||
Award vesting period | 5 years | |||||||||
Restricted Stock Awards [Member] | Vesting in Year Four from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 10.00% | |||||||||
Restricted Stock Awards [Member] | Vesting in Year Five from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 10.00% | |||||||||
Restricted Stock Awards [Member] | Vesting in Year Six from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 10.00% | |||||||||
Restricted Stock Awards [Member] | Vesting in Year Seven from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 10.00% | |||||||||
Restricted Stock Awards [Member] | Vesting in Year Eight from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 10.00% | |||||||||
Restricted Stock Awards [Member] | Vesting in Year Nine from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 10.00% | |||||||||
Restricted Stock Awards [Member] | Vesting in Year Ten from Date of Grant [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Award vesting percentage | 10.00% | |||||||||
Q1 [Member] | ||||||||||
Actual and projected stock based compensation expense for RSA shares and options [Abstract] | ||||||||||
2020 | $ 577 | |||||||||
2021 | 577 | |||||||||
2022 | 330 | |||||||||
2023 | 329 | |||||||||
Q2 [Member] | ||||||||||
Actual and projected stock based compensation expense for RSA shares and options [Abstract] | ||||||||||
2019 | 577 | |||||||||
2020 | 577 | |||||||||
2021 | 426 | |||||||||
2022 | 330 | |||||||||
2023 | 128 | |||||||||
Q3 [Member] | ||||||||||
Actual and projected stock based compensation expense for RSA shares and options [Abstract] | ||||||||||
2019 | 577 | |||||||||
2020 | 577 | |||||||||
2021 | 362 | |||||||||
2022 | 329 | |||||||||
2023 | 43 | |||||||||
Q4 [Member] | ||||||||||
Actual and projected stock based compensation expense for RSA shares and options [Abstract] | ||||||||||
2019 | 577 | |||||||||
2020 | 577 | |||||||||
2021 | 330 | |||||||||
2022 | 329 | |||||||||
2023 | $ 0 | |||||||||
Class A [Member] | ||||||||||
Voting Rights [Abstract] | ||||||||||
Number of votes per share | VoteperShare | 1 | |||||||||
Class A [Member] | Maximum [Member] | ||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||
Number of shares reserved for issuance under each plan (in shares) | shares | 7,500,000 | |||||||||
Class B [Member] | ||||||||||
Voting Rights [Abstract] | ||||||||||
Number of votes per share | VoteperShare | 10 |
Stockholders' Equity, Stock Rep
Stockholders' Equity, Stock Repurchase Program and Shelf Registration (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 23, 2018 | |
Shelf Registration [Abstract] | ||
Maximum amount of debt and equity to be issued under shelf registration | $ 500 | |
Common Class A [Member] | Stock Repurchase Program [Member] | ||
Stock Repurchase Program [Abstract] | ||
Shares repurchased (in shares) | 126,354 | |
Average price per share of repurchased shares (in dollars per share) | $ 20.15 | |
Share available under program to repurchase (in shares) | 738,456 |
Identifiable Intangible Assets
Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Intangible assets, net [Abstract] | |||
Impairment on intangible assets | $ 0 | $ 0 | |
Investment Advisory Contract [Member] | Gabelli Enterprise Mergers and Acquisitions Fund [Member] | |||
Intangible assets, net [Abstract] | |||
Identifiable intangible asset | 1.9 | 1.9 | $ 1.9 |
Investment Advisory Contract [Member] | Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. [Member] | |||
Intangible assets, net [Abstract] | |||
Identifiable intangible asset | $ 1.6 | $ 1.6 | $ 1.6 |
Related Party Transactions (Det
Related Party Transactions (Details) - Chief Executive Officer [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related party expenses [Abstract] | ||
Compensation | $ (12.2) | $ (4.9) |
Management fee | $ (1.7) | $ (1.7) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | May 09, 2019 | Apr. 16, 2019 | Apr. 01, 2019 | Sep. 17, 2018 | Aug. 07, 2018 | Apr. 04, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 15, 2019 | Dec. 31, 2018 | Nov. 30, 2015 |
Repayments of Long-term Debt [Abstract] | |||||||||||
Principal amount outstanding | $ 24,174 | $ 64,150 | $ 24,168 | ||||||||
Stock Repurchase [Abstract] | |||||||||||
Stock outstanding (in shares) | 28,900,000 | 28,900,000 | 29,000,000 | ||||||||
Dividends [Abstract] | |||||||||||
Dividends declared (in dollars per share) | $ 0.02 | $ 0.02 | |||||||||
Restricted Stock Awards [Member] | |||||||||||
Share-based Compensation [Abstract] | |||||||||||
Number of shares authorized for granting (in shares) | 5,000 | 162,450 | 270,500 | ||||||||
Restricted Stock Awards [Member] | Vesting after Third Anniversary Date [Member] | |||||||||||
Share-based Compensation [Abstract] | |||||||||||
Award vesting percentage | 30.00% | ||||||||||
Restricted Stock Awards [Member] | Vesting after Fifth Anniversary Date [Member] | |||||||||||
Share-based Compensation [Abstract] | |||||||||||
Award vesting percentage | 70.00% | ||||||||||
AC 4% PIK Note [Member] | |||||||||||
Repayments of Long-term Debt [Abstract] | |||||||||||
Prepayment of debt | $ 10,000 | ||||||||||
Principal amount outstanding | $ 0 | $ 40,000 | $ 0 | ||||||||
Debt instrument, interest rate | 4.00% | 4.00% | |||||||||
Debt instrument, maturity date | Nov. 30, 2020 | ||||||||||
Class A [Member] | |||||||||||
Stock Repurchase [Abstract] | |||||||||||
Stock outstanding (in shares) | 9,828,570 | 9,830,148 | 9,957,301 | ||||||||
Subsequent Event [Member] | |||||||||||
Stock Repurchase [Abstract] | |||||||||||
Percentage of reduction in shares outstanding | (4.20%) | ||||||||||
Stock outstanding (in shares) | 27,600,000 | ||||||||||
Subsequent Event [Member] | Quarterly Dividend Declared in Q2 2019 [Member] | |||||||||||
Dividends [Abstract] | |||||||||||
Dividends declared (in dollars per share) | $ 0.02 | ||||||||||
Dividends declared date | May 9, 2019 | ||||||||||
Dividends payable date | Jun. 25, 2019 | ||||||||||
Dividends record date | Jun. 11, 2019 | ||||||||||
Subsequent Event [Member] | Restricted Stock Awards [Member] | Award Granted from Fourth Quarter of 2017 [Member] | Mr. Gabelli [Member] | |||||||||||
Deferred Compensation Arrangements [Abstract] | |||||||||||
Deferred compensation agreement, value of shares issued | $ 15,500 | ||||||||||
Deferred compensation agreement, shares issued (in shares) | 530,662 | ||||||||||
Deferred compensation arrangement with individual, vested | (530,662) | ||||||||||
Payments for compensation agreement | $ 11,000 | ||||||||||
Reduction of RSU expense due to cap and waiver of receipt of deferred compensation expense | $ 4,500 | ||||||||||
Subsequent Event [Member] | Class A [Member] | |||||||||||
Stock Repurchase [Abstract] | |||||||||||
Stock repurchased (in shares) | 1,200,000 | ||||||||||
Average price per share of repurchased shares (in dollars per share) | $ 21 | ||||||||||
Percentage of reduction in shares outstanding | (12.40%) | ||||||||||
Stock outstanding (in shares) | 8,600,000 | 28,800,000 |