Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Address, State or Province | NY | |
Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,466,852 | |
Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,024,117 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 86,179 | $ 41,202 |
Investments in securities | 32,322 | 33,789 |
Receivable from brokers | 4,574 | 3,423 |
Investment advisory fees receivable | 23,774 | 25,677 |
Receivable from affiliates | 3,804 | 4,194 |
Goodwill and identifiable intangible assets | 3,765 | 3,765 |
Deferred tax asset and income tax receivable | 17,305 | 15,001 |
Other assets | 7,772 | 7,561 |
Total assets | 179,495 | 134,612 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Payable to brokers | 3 | 112 |
Income taxes payable and deferred tax liabilities | 2,314 | 2,388 |
Lease liability obligations | 5,602 | 4,794 |
Compensation payable | 79,841 | 60,408 |
Payable to affiliates | 380 | 1,041 |
Accrued expenses and other liabilities | 34,451 | 32,091 |
Sub-total | 122,591 | 100,834 |
5.875% Senior Notes (net of issuance costs of $39 and $57, respectively) (due June 1, 2021) (Note 7) | 24,186 | 24,168 |
Total liabilities | 146,777 | 125,002 |
Commitments and contingencies (Note 10) | ||
Stockholders' Equity | ||
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 16,190 | 14,192 |
Retained earnings | 338,680 | 282,928 |
Accumulated other comprehensive income | (271) | (240) |
Treasury stock, at cost (7,692,260 and 6,012,002 shares, respectively) | (321,914) | (287,303) |
Total stockholders' equity | 32,718 | 9,610 |
Total liabilities and stockholders' equity | 179,495 | 134,612 |
Class A [Member] | ||
Stockholders' Equity | ||
Common stock | 14 | 14 |
Class B [Member] | ||
Stockholders' Equity | ||
Common stock | $ 19 | $ 19 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
GAMCO Investors, Inc. stockholders equity | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, outstanding (in shares) | 27,500,000 | 29,000,000 |
Treasury stock, shares (in shares) | 7,692,260 | 6,012,002 |
Class A [Member] | ||
GAMCO Investors, Inc. stockholders equity | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 16,216,226 | 15,969,303 |
Common Stock, outstanding (in shares) | 8,523,966 | 9,957,301 |
Class B [Member] | ||
GAMCO Investors, Inc. stockholders equity | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 24,000,000 | 24,000,000 |
Common Stock, outstanding (in shares) | 19,024,117 | 19,024,240 |
5.875% Senior Notes [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Debt instrument, interest rate | 5.875% | 5.875% |
Debt issuance costs | $ 39 | $ 57 |
Debt instrument, maturity date | Jun. 1, 2021 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 75,345 | $ 85,788 | $ 226,088 | $ 260,478 |
Expenses | ||||
Compensation | 29,800 | 17,562 | 90,363 | 72,464 |
Management fee | 2,144 | 1,449 | 8,302 | 7,565 |
Distribution costs | 8,271 | 9,819 | 25,546 | 29,875 |
Other operating expenses | 5,562 | 5,258 | 16,936 | 16,245 |
Total expenses | 45,777 | 34,088 | 141,147 | 126,149 |
Operating income | 29,568 | 51,700 | 84,941 | 134,329 |
Non-operating income / (loss) | ||||
Gain / (loss) from investments, net | (6,529) | (4,328) | (3,160) | (8,090) |
Interest and dividend income | 811 | 531 | 2,250 | 1,549 |
Interest expense | (652) | (759) | (1,962) | (2,881) |
Shareholder-designated contribution | (4,500) | (708) | (4,500) | (884) |
Total non-operating income / (loss) | (10,870) | (5,264) | (7,372) | (10,306) |
Income before income taxes | 18,698 | 46,436 | 77,569 | 124,023 |
Provision for income taxes | 5,072 | 11,420 | 20,034 | 30,164 |
Net income | $ 13,626 | $ 35,016 | $ 57,535 | $ 93,859 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.50 | $ 1.22 | $ 2.08 | $ 3.26 |
Diluted (in dollars per share) | $ 0.50 | $ 1.22 | $ 2.08 | $ 3.26 |
Weighted average shares outstanding | ||||
Basic (in shares) | 26,987 | 28,677 | 27,612 | 28,789 |
Diluted (in shares) | 27,093 | 28,739 | 27,676 | 28,824 |
Investment Advisory and Incentive Fees [Member] | ||||
Revenues | ||||
Total revenues | $ 67,015 | $ 75,934 | $ 200,893 | $ 230,616 |
Distribution Fees and Other Income [Member] | ||||
Revenues | ||||
Total revenues | $ 8,330 | $ 9,854 | $ 25,195 | $ 29,862 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED [Abstract] | ||||
Net income | $ 13,626 | $ 35,016 | $ 57,535 | $ 93,859 |
Other comprehensive income / (loss) | ||||
Foreign currency translation gain / (loss) | (28) | (13) | (31) | 16 |
Total comprehensive income | $ 13,598 | $ 35,003 | $ 57,504 | $ 93,875 |
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) |
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 | 93,859 | |||||
Foreign currency translation | 16 | |||||
Balance at Sep. 30, 2018 | 33 | 13,614 | 260,171 | (218) | (285,790) | (12,190) |
Balance at Mar. 31, 2018 | 33 | 12,759 | 194,732 | (145) | (280,002) | (72,623) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 31,582 | 0 | 0 | 31,582 |
Foreign currency translation | 0 | 0 | 0 | (60) | 0 | (60) |
Dividends declared | 0 | 0 | (579) | 0 | 0 | (579) |
Stock based compensation expense | 0 | 354 | 0 | 0 | 0 | 354 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (3,543) | (3,543) |
Balance at Jun. 30, 2018 | 33 | 13,113 | 225,735 | (205) | (283,545) | (44,869) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 35,016 | 0 | 0 | 35,016 |
Foreign currency translation | 0 | 0 | 0 | (13) | 0 | (13) |
Dividends declared | 0 | 0 | (580) | 0 | 0 | (580) |
Stock based compensation expense | 0 | 501 | 0 | 0 | 0 | 501 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (2,245) | (2,245) |
Balance at Sep. 30, 2018 | 33 | 13,614 | 260,171 | (218) | (285,790) | (12,190) |
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 |
Balance at Dec. 31, 2018 | 33 | 14,192 | 282,928 | (240) | (287,303) | 9,610 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 57,535 | |||||
Foreign currency translation | (31) | |||||
Balance at Sep. 30, 2019 | 33 | 16,190 | 338,680 | (271) | (321,914) | 32,718 |
Balance at Mar. 31, 2019 | 33 | 14,769 | 302,139 | (220) | (289,850) | 26,871 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 24,017 | 0 | 0 | 24,017 |
Foreign currency translation | 0 | 0 | 0 | (23) | 0 | (23) |
Dividends declared | 0 | 0 | (551) | 0 | 0 | (551) |
Stock based compensation expense | 0 | 578 | 0 | 0 | 0 | 578 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (28,274) | (28,274) |
Balance at Jun. 30, 2019 | 33 | 15,347 | 325,605 | (243) | (318,124) | 22,618 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 13,626 | 0 | 0 | 13,626 |
Foreign currency translation | 0 | 0 | 0 | (28) | 0 | (28) |
Dividends declared | 0 | 0 | (551) | 0 | 0 | (551) |
Stock based compensation expense | 0 | 843 | 0 | 0 | 0 | 843 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (3,790) | (3,790) |
Balance at Sep. 30, 2019 | $ 33 | $ 16,190 | $ 338,680 | $ (271) | $ (321,914) | $ 32,718 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.06 | $ 0.06 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 57,535 | $ 93,859 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 958 | 443 |
Accretion of discounts and amortization of premiums | 3 | 0 |
Stock based compensation expense | 1,998 | 1,042 |
Deferred income taxes | (3,085) | 1,660 |
Foreign currency translation gain/ (loss) | (31) | 16 |
Cost basis of donated securities | 2,601 | 304 |
Unrealized on available for sale securities | 5,947 | 0 |
Net realized loss on available for sale securities | 6 | 0 |
(Increase) decrease in assets: | ||
Investments in securities | (2,276) | 6,783 |
Receivable from brokers | (1,151) | (1,076) |
Investment advisory fees receivable | 1,903 | 13,702 |
Receivable from affiliates | 387 | 1,196 |
Deferred tax asset and income taxes receivable | (2,304) | 4,083 |
Other assets | (1,265) | 1,008 |
Increase (decrease) in liabilities: | ||
Payable to brokers | (110) | (811) |
Income taxes payable | 3,012 | (1,232) |
Compensation payable | 19,436 | (12,520) |
Payable to affiliates | (661) | (715) |
Accrued expenses and other liabilities | 3,845 | (601) |
Total adjustments | 29,213 | 13,282 |
Net cash provided by operating activities | 86,748 | 107,141 |
Cash flows from investing activities: | ||
Purchases of securities | (5,078) | 0 |
Proceeds from sales of securities | 252 | 0 |
Return of capital on securities | 12 | 0 |
Net cash used in investing activities | (4,814) | 0 |
Cash flows from financing activities: | ||
Dividends paid | (2,221) | (2,328) |
Purchase of treasury stock | (34,611) | (9,097) |
Repayment of principal portion of lease liability | (132) | 0 |
Net cash used in financing activities | (36,964) | (90,540) |
Effect of exchange rates on cash and cash equivalents | 7 | (88) |
Net increase in cash and cash equivalents | 44,977 | 16,513 |
Cash and cash equivalents at beginning of period | 41,202 | 17,821 |
Cash and cash equivalents at end of period | 86,179 | 34,334 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 1,551 | 2,695 |
Cash paid for taxes | 20,000 | 24,571 |
AC 4% PIK Note [Member] | ||
Cash flows from financing activities: | ||
Repayment of debt | 0 | (50,000) |
AC 1.6% Note [Member] | ||
Cash flows from financing activities: | ||
Repayment of debt | 0 | (15,000) |
Margin Loan [Member] | ||
Cash flows from financing activities: | ||
Issuance of debt | 0 | 11,000 |
Repayment of debt | $ 0 | $ (25,115) |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Non-cash activity: | ||
Accrued restricted stock award dividends | $ 27 | $ 12 |
AC 4% PIK Note [Member] | ||
Cash flows from financing activities: | ||
Debt instrument, interest rate | 4.00% | |
AC 1.6% Note [Member] | ||
Cash flows from financing activities: | ||
Debt instrument, interest rate | 1.60% |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business | Organization and Description of Business Unless indicated otherwise, or the context otherwise requires, references in this report to “GAMCO Investors, Inc.,” “GAMCO,” “the Company” and “GBL” or similar terms are to GAMCO Investors, Inc., its predecessors and its subsidiaries. GAMCO (New York Stock Exchange (“NYSE”): GBL), a company incorporated under the laws of Delaware, is a widely-recognized provider of investment advisory services to 24 open-end funds, 16 closed-end funds, one société d’investissement à capital variable (“SICAV”) and approximately 1,700 institutional and private wealth management (“Institutional & PWM”) investors principally in the United States. The Company generally manages assets on a fully discretionary basis and invests in a variety of United States (“U.S.”) and international securities through various investment styles including value, growth, non-market correlated, and convertible securities. The Company’s revenues are based primarily on the levels of assets under management (“AUM”) and fees associated with the various investment products. Since the Company’s inception in 1977, it has been identified with its research driven approach to equity investing and proprietary Private Market Value (PMV) with a Catalyst™ investment approach. The investment advisory business is conducted principally through the following subsidiaries: GAMCO Asset Management Inc. (Institutional & PWM) and Gabelli Funds, LLC (open-end and closed-end funds). The distribution of open-end funds is conducted through G.distributors, LLC (“G.distributors”), the Company’s broker-dealer subsidiary. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation The unaudited interim condensed consolidated financial statements of GAMCO included herein have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the U.S. 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 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 have been 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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In September 2018, related to the Securities Act Release No. 33-10532, Disclosure Update and Simplification (“DUST-R”), the FASB issued Compliance and Disclosure Interpretation 105.09 guidance (“CD&I 105.09”) on compliance with the new requirement to present changes in shareholders’ equity in interim condensed consolidated financial statements within Form 10-Q filings . DUST-R requires disclosure of changes in shareholders’ equity within a registrant’s Form 10-Q filing on a quarter-to-date and year-to-date basis for both the current year and prior year comparative periods. CD&I 105.09 notes that the Securities and Exchange Commission (“SEC”) would not object if a registrant first discloses the changes in shareholders’ equity in its Form 10-Q for the quarter that begins after November 5, 2018. The Company has adopted the new requirement starting with the quarter that began on January 1, 2019, which did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326) |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition The revenue streams in the discussion below include those that are within the scope of ASU 2014-09, Revenue From Contracts With Customers (Topic 606) 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 the current terms of each contract. 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 incentive fee revenues, the performance obligation (advising a client portfolio) is satisfied over time, while the 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. Investment Advisory Fees Advisory fees for open-end funds, closed-end funds, sub-advisory accounts, and the SICAV 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, and the SICAV are computed on a daily basis based on average daily 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 daily 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 periods presented. Advisory fees for institutional and 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 periods presented. Incentive Fees Investment advisory fees are earned on a portion of some closed-end funds’ preferred shares at year-end if the total return to common shareholders of the respective closed-end fund for the 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. These fees would also be earned and the contract period ended at any interim point in time that the respective preferred shares are redeemed. These fees are received in cash after the end of each annual measurement period, within 30 days. Two closed-end funds charge incentive fees. For The GDL Fund (GDL), there is an incentive fee, which is earned and recognized as of the end of each calendar year and varies to the extent the total return of the fund is in excess of the ICE Bank of America Merrill Lynch 3-month U.S. Treasury Bill Index total return. For the Gabelli Merger Plus+ Trust Plc (GMP), there is an incentive fee, which is earned and recognized as of the end of each measurement period, June 30 th A SICAV sub-fund, the GAMCO Merger Arbitrage SICAV, charges a performance fee. This 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 a client redeemed their respective shares. This fee is 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 either a specific benchmark index or a defined return for these accounts. These fees are recognized at the end of the stipulated contract period, which is generally annually, for each respective account. These fees would also be earned and the contract period ended at any interim point in time that the client terminated its relationship with the Company. These fees are received in cash after the end of the measurement period, typically within 60 days. In all cases of the incentive fees, 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 rate 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 periods presented. Distribution Fees and Other Income Distribution fees and other income primarily includes distribution fee revenue earned in accordance with Rule 12b-1 of the Investment Company Act of 1940, as amended, along with sales charges and underwriting fees associated with the sale of the class A shares of open-end funds. Distribution plan fees are computed based on average daily net assets of certain classes of each fund and are accrued 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, the Company 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). The Company’s conclusion is that the service being provided by G.distributors to the customer in exchange for the fee is for the initial distribution of certain classes of the open-end funds and is completed at the time of each respective 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 generally monthly. Sales charges and underwriting fees associated with the sale of certain classes of the open-end funds are recognized on the trade date of the sale of the respective 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 periods presented. Revenue Disaggregated The following table presents our revenue disaggregated by account type (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Investment advisory and incentive fees: Open-end funds $ 26,263 $ 31,481 $ 80,215 $ 94,326 Closed-end funds 16,475 17,337 48,555 51,389 Sub-advisory accounts 843 1,189 2,677 3,430 Institutional & PWM 21,500 24,276 64,421 75,391 SICAV 1,485 1,471 4,218 4,223 Performance-based 449 180 807 207 Conditional - - - 1,650 Distribution fees and other income 8,330 9,854 25,195 29,862 Total revenues $ 75,345 $ 85,788 $ 226,088 $ 260,478 |
Investment in Securities
Investment in Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment in Securities [Abstract] | |
Investment in Securities | 3. Investment in Securities Effective with the Company’s adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities Investments in securities at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cost Estimated Market Value Cost Estimated Market Value Securities carried at FVTNI: Common stocks $ 41,356 $ 29,270 $ 38,865 $ 32,414 Foreign government obligations 1,895 1,877 - - Open-end funds 753 675 44 38 Closed-end funds 489 500 1,414 1,337 Total securities carried at FVTNI $ 44,493 $ 32,322 $ 40,323 $ 33,789 There were no securities sold, not yet purchased at September 30, 2019 and December 31, 2018. Investments in U.S. 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 at September 30, 2019 and December 31, 2018 are stated at fair value with any unrealized gains or losses reported in each respective period’s earnings. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value [Abstract] | |
Fair Value | 4. Fair Value The Company applies fair value accounting in accordance with the terms of FASB Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement - Level 1 - inputs to the valuation methodology utilize quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. Level 1 assets include cash equivalents, government obligations, open-end funds, closed-end funds and equities. - Level 2 - inputs to the valuation methodology utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities that are not active and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly-quoted intervals. - Level 3 - inputs to the valuation methodology are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of September 30, 2019 and December 31, 2018 (in thousands): Assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of September 30, 2019 Cash equivalents $ 85,699 $ - $ - $ 85,699 Investments in securities: Common stocks 29,270 - - 29,270 Foreign government obligations 1,877 - - 1,877 Open-end funds 675 - - 675 Closed-end funds 500 - - 500 Total investments in securities 32,322 - - 32,322 Total assets at fair value $ 118,021 $ - $ - $ 118,021 Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2018 Cash equivalents $ 40,905 $ - $ - $ 40,905 Investments in securities: Common stocks 32,414 - - 32,414 Open-end funds 38 - - 38 Closed-end funds 1,337 - - 1,337 Total investments in securities 33,789 - - 33,789 Total assets at fair value $ 74,694 $ - $ - $ 74,694 Cash equivalents primarily consist of an affiliated money market mutual fund which is invested solely in U.S. Treasuries and valued based on the net asset value of the fund. U.S. Treasury Bills and Notes with maturities of three months or less at the time of purchase are also considered cash equivalents. Cash equivalents are valued using unadjusted quoted market prices. Investments in securities are generally valued based on quoted prices from an exchange. To the extent these securities are actively traded, valuation adjustments are not applied, and they are categorized in Level 1 of the fair value hierarchy. Securities categorized in Level 2 investments are valued using other observable inputs. Nonpublic and infrequently traded investments are included in Level 3 of the fair value hierarchy because significant inputs to measure fair value are unobservable. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 5. Income Taxes The effective tax rate (“ETR”) for the three months ended September 30, 2019 and 2018 was 27.1% and 24.6%, respectively. The ETR for the nine months ended September 30, 2019 and 2018 was 25.8% and 24.3%, respectively. The ETR for the first nine months of 2019 included an accrual of $1.5 million related to an adjustment in an uncertain tax position. The ETR absent this accrual was 23.9%. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average shares outstanding. Diluted earnings per share is calculated using the treasury stock method by dividing net income by the total weighted average shares of common stock outstanding and restricted stock awards. The computations of basic and diluted net income per share were as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic: Net income $ 13,626 $ 35,016 $ 57,535 $ 93,859 Weighted average shares outstanding 26,987 28,677 27,612 28,789 Basic net income per share $ 0.50 $ 1.22 $ 2.08 $ 3.26 Diluted: Net income $ 13,626 $ 35,016 $ 57,535 $ 93,859 Weighted average share outstanding 26,987 28,677 27,612 28,789 Restricted stock awards 106 62 64 35 Total 27,093 28,739 27,676 28,824 Diluted net income per share $ 0.50 $ 1.22 $ 2.08 $ 3.26 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt [Abstract] | |
Debt | 7. Debt 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, which bore interest at 4.0% per annum. The original principal amount had a maturity date of November 30, 2020. During the three months and nine months ended September 30, 2018, the Company prepaid $20 million and $50 million, respectively, of principal of the AC 4% PIK Note. The AC 4% PIK Note was fully repaid on August 28, 2018 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 September 30, 2019 and December 31, 2018, the Senior Notes were recorded at face value, net of amortized issuance costs, as follows (in thousands) on the Condensed Consolidated Statements of Financial Position: September 30, 2019 December 31, 2018 Carrying Fair Value Carrying Fair Value Value Level 2 Value Level 2 5.875% Senior Notes $ 24,186 $ 24,653 $ 24,168 $ 23,061 Total $ 24,186 $ 24,653 $ 24,168 $ 23,061 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 | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders ’ Shares outstanding were 27.5 million and 29.0 million on September 30, 2019 and December 31, 2018, respectively. Voting Rights The holders of class A common stock of GBL (“Class A Stock”) and class B common stock of GBL (“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 a stock award and incentive plan approved by the shareholders (the “Plan”), 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 GBL’s board of directors (the “Board of Directors”) responsible for administering the Plan (“Compensation Committee”). Under the Plan, the Compensation Committee may grant restricted stock awards (“RSAs”), each of which entitles the grantee to one share of Class A Stock subject to restrictions, 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 Compensation Committee may determine. On January 5, 2018, the Compensation Committee 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 nine months of 2018. On April 4, 2018, 270,500 RSAs were issued at a grant price of $24.77 per RSA. On August 7, 2018, 162,450 RSAs were issued at a grant price of $25.16 per RSA. On September 17, 2018, 5,000 RSAs were issued at a grant price of $25.74 per RSA. On June 30, 2019, 264,900 RSAs were issued at a grant price of $19.17 per RSA. As of September 30, 2019 and December 31, 2018, there were 674,450 and 427,650, respectively, of these RSAs outstanding with weighted average grant prices per RSA of $22.67 and $24.93, respectively. All grants of the RSAs were recommended by the Company’s Chairman and CEO, who did not request or receive any RSAs, and approved by the Compensation Committee. This expense, net of estimated forfeitures, is recognized over the vesting period for these awards, which is 30% over three years from the date of grant and 70% over five years 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 on the declaration date. During the nine months ended September 30, 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 during the nine months ended September 30, 2019 or the three months ended September 30, 2019 and September 30, 2018. For the three months ended September 30, 2019 and 2018, the Company recognized stock-based compensation expense of $0.8 million and $0.5 million, respectively. For the nine months ended September 30, 2019 and 2018, the Company recognized stock-based compensation expense of $2.0 million and $1.0 million, respectively. The total compensation costs related to non-vested RSAs not yet recognized was approximately $10.5 million as of September 30, 2019. On July 2, 2018, the deferred cash compensation agreement (“DCCA”) with the CEO covering compensation from the first half of 2017 vested in accordance with the terms of the agreement and a cash payment in the amount of $28.3 million was made to the CEO. This payment was after a waiver of $6.0 million by the CEO and a reduction of $2.6 million resulting from the DCCA being indexed to the GBL stock price and utilizing the lesser of the volume weighted average price (“VWAP”) on the vesting date ($27.1837) versus the VWAP over the first half of 2017 ($29.6596). On April 1, 2019, the DCCA with the CEO covering compensation from the fourth quarter of 2017 vested in accordance with the terms of the agreement and a cash payment in the amount of $11.0 million was made to the CEO. This payment was reduced by $4.5 million resulting from the DCCA being indexed to the GBL stock price and utilizing the lesser of the VWAP on the vesting date ($20.7916) versus the VWAP over the fourth quarter of 2017 ($29.1875). Stock Repurchase Program In March 1999, the Board of Directors established a stock repurchase program (the “Stock Repurchase Program”) to grant management the authority to repurchase shares of Class A Stock. In May 2019, the Board of Directors increased the buyback authorization by 1,212,759 shares of Class A Stock. On April 16, 2019 and September 16, 2019, GAMCO repurchased 1.2 million and 70 thousand shares, respectively, of Class A Stock at $21.00 and $20.07 per share, respectively, in private transactions. For the three months ended September 30, 2019, outside of the private transaction, the Company repurchased 123,743 shares at an average price per share of $19.26. For the nine months ended September 30, 2019, outside of the private transactions, the Company repurchased 397,499 shares at an average price per share of $19.46. At September 30, 2019, the total shares available under the Stock Repurchase Program to be repurchased in the future were 397,311. The Stock Repurchase Program is not subject to an expiration date. Dividends During the three months ended September 30, 2019 and 2018, the Company declared dividends of $0.02 per share to shareholders of Class A Stock and Class B Stock. During the nine months ended September 30, 2019 and 2018, the Company declared dividends of $0.06 per share to shareholders of Class A Stock and Class B Stock. 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. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Identifiable Intangible Assets [Abstract] | |
Goodwill and Identifiable Intangible Assets | 9. Goodwill and Identifiable Intangible Assets Goodwill is initially measured as the excess of the cost of the acquired business over the sum of the amounts assigned to assets acquired less the liabilities assumed. At , there was goodwill of $0.2 million maintained on the Condensed Consolidated Statements of Financial Condition related to G.distributors. 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 at September 30, 2019 and December 31, 2018. This investment advisory agreement 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 at September 30, 2019 and December 31, 2018. The investment advisory agreements for the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. are next up for renewal in August 2020. Each of these investment advisory agreements are subject to annual renewal by the respective 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 Company assesses the recoverability of goodwill and intangible assets at least annually, or more often should events warrant. There were no indicators of impairment for the three months or nine months ended September 30, 2019 or 2018 and, as such, there was no impairment analysis performed or charge recorded for such periods. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10. 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 exist 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 September 30, 2019. Leases On December 5, 1997, the Company entered into a fifteen year lease, expiring on April 30, 2014, of office space from an entity controlled by members of the Chairman's family. On June 11, 2013, the Company modified and extended its lease with M4E, LLC, the Company’s landlord at 401 Theodore Fremd Ave, Rye, NY. The lease term was extended to December 31, 2028 and the base rental remained at $18 per square foot, or $1.1 million, for 2014. For each subsequent year through December 31, 2028, the base rental is determined by the change in the consumer price index for the New York Metropolitan Area for November of the immediate prior year with the base period as November 2008 for the New York Metropolitan Area. This lease has been accounted for as a finance lease under FASB ASC Topic 842 (and prior to 2019, as a capital lease under FASB ASC Topic 840, Leases The Company also rents office space under operating leases which expire at various dates through May 31, 2024. The following table summarizes the Company's leases for the periods presented (in thousands, except lease term and discount rate): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Finance lease cost - interest expense $ 268 $ 270 $ 810 $ 815 Finance lease cost - amortization of right-of-use asset 67 62 200 185 Operating lease cost 172 - 551 - Sublease income (121 ) (121 ) (364 ) (342 ) Total lease cost $ 386 $ 211 $ 1,197 $ 658 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance lease $ - $ 38 $ - $ 109 Operating cash flows from operating leases 177 - 602 - Financing cash flows from finance lease 46 - 132 - Total cash paid for amounts included in the measurement of lease liabilities $ 223 $ 38 $ 734 $ 109 Right-of-use assets obtained in exchange for new operating lease liabilities - n/a 1,431 n/a Weighted average remaining lease term—finance lease (years) 9.3 10.3 9.3 10.3 Weighted average remaining lease term—operating leases (years) 2.8 n/a 2.8 n/a Weighted average discount rate—finance lease 19.1 % 19.1 % 19.1 % 19.1 % Weighted average discount rate—operating leases 5.0 % n/a 5.0 % n/a The finance lease right-of-use asset, net of amortization, at September 30, 2019 and December 31, 2018 was $1.9 million and $2.1 million, respectively, and the operating right-of-use assets, net of amortization, were $0.9 million and $0, respectively, and these right-of-use assets were included within other assets in the Condensed Consolidated Statements of Financial Condition. The following table summarizes the maturities of lease liabilities at September 30, 2019 (in thousands): Year ending December 31, Finance Leases Operating Leases Total Leases 2019 (excluding the nine months ended September 30, 2019) $ 313 $ 140 $ 453 2020 1,080 288 1,368 2021 1,080 228 1,308 2022 1,080 164 1,244 2023 1,080 155 1,235 Thereafter 5,400 61 5,461 Total lease payments $ 10,033 $ 1,036 $ 11,069 Less imputed interest (5,371 ) (96 ) (5,467 ) Total lease liabilities $ 4,662 $ 940 $ 5,602 The finance lease contains an escalation clause tied to the change in the New York Metropolitan Area Consumer Price Index which may cause the future minimum payments to exceed the amounts shown above. Future minimum lease payments have not been reduced by related minimum future sublease rentals of approximately $0.8 million due over the next five years, which are due from affiliated entities. Future minimum lease payments have also not been reduced by future sublease payments of approximately $40 thousand per month from AC pursuant to AC’s lease agreement that expired on March 31, 2019, which was extended on the same terms and conditions on a month-to-month basis commencing on April 1, 2019. |
Shareholder-Designated Contribu
Shareholder-Designated Contributions | 9 Months Ended |
Sep. 30, 2019 | |
Shareholder-Designated Contributions [Abstract] | |
Shareholder-Designated Contributions | 11. Shareholder-Designated Contributions During 2013, the Company established a Shareholder Designated Charitable Contribution program. Under the program, each shareholder is eligible to designate a charity to which the Company would make a donation based upon the actual number of shares registered in the shareholder’s name. Shares held in nominee or street name are not eligible to participate. For the three months ended September 30, 2019 and 2018, the Company recorded a charge of $4.5 million and $0.7 million, respectively. For the nine months ended September 30, 2019 and 2018, the Company recorded a charge of $4.5 million and $0.9 million, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions On February 23, 2018, the Chief Executive Officer (“CEO”) of the Company elected to irrevocably 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. On August 27, 2019, the CEO elected to irrevocably waive all of his compensation that he would otherwise have been entitled to for the period from September 1, 2019 to November 30, 2019. For the three months ended September 30, 2019 and 2018, the waivers reduced compensation by $3.6 million and $14.4 million, respectively, and management fee expense by $0.6 million and $3.3 million, respectively. For the nine months ended September 30, 2019 and 2018, the waivers reduced compensation by $15.8 million and $33.5 million, respectively, and management fee expense by $2.3 million and $8.0 million, respectively. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory Requirements [Abstract] | |
Regulatory Requirements | 13. Regulatory Requirements The Company’s broker-dealer subsidiary, G.distributors, is subject to certain net capital requirements. G.distributors computes its net capital under the alternative method permitted, which requires minimum net capital of the greater of $250,000 or 2% of the aggregate debit items in the reserve formula for those broker-dealers subject to Rule 15c3-3 promulgated under the Securities Exchange Act of 1934, as amended. The requirement was $250,000 for the broker-dealer at September 30, 2019. At September 30, 2019, G.distributors had net capital, as defined, of approximately $4.1 million, exceeding the regulatory requirement by approximately $3.8 million. Net capital requirements for our affiliated broker-dealer may increase in accordance with the rules and regulations applicable to broker-dealers to the extent G.distributors engages in other business activities. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events From October 1, 2019 to November 8, 2019, the Company repurchased shares at per share. On November 8, 2019, the Board of Directors declared its regular quarterly dividend of $0.02 per share to all of the Company’s shareholders, payable on December 31, 2019 to shareholders of record on December 17, 2019. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements of GAMCO included herein have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the U.S. 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 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 have been 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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In September 2018, related to the Securities Act Release No. 33-10532, Disclosure Update and Simplification (“DUST-R”), the FASB issued Compliance and Disclosure Interpretation 105.09 guidance (“CD&I 105.09”) on compliance with the new requirement to present changes in shareholders’ equity in interim condensed consolidated financial statements within Form 10-Q filings . DUST-R requires disclosure of changes in shareholders’ equity within a registrant’s Form 10-Q filing on a quarter-to-date and year-to-date basis for both the current year and prior year comparative periods. CD&I 105.09 notes that the Securities and Exchange Commission (“SEC”) would not object if a registrant first discloses the changes in shareholders’ equity in its Form 10-Q for the quarter that begins after November 5, 2018. The Company has adopted the new requirement starting with the quarter that began on January 1, 2019, which did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Disaggregated | Revenue Disaggregated The following table presents our revenue disaggregated by account type (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Investment advisory and incentive fees: Open-end funds $ 26,263 $ 31,481 $ 80,215 $ 94,326 Closed-end funds 16,475 17,337 48,555 51,389 Sub-advisory accounts 843 1,189 2,677 3,430 Institutional & PWM 21,500 24,276 64,421 75,391 SICAV 1,485 1,471 4,218 4,223 Performance-based 449 180 807 207 Conditional - - - 1,650 Distribution fees and other income 8,330 9,854 25,195 29,862 Total revenues $ 75,345 $ 85,788 $ 226,088 $ 260,478 |
Investment in Securities (Table
Investment in Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment in Securities [Abstract] | |
Investments in Securities | Investments in securities at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cost Estimated Market Value Cost Estimated Market Value Securities carried at FVTNI: Common stocks $ 41,356 $ 29,270 $ 38,865 $ 32,414 Foreign government obligations 1,895 1,877 - - Open-end funds 753 675 44 38 Closed-end funds 489 500 1,414 1,337 Total securities carried at FVTNI $ 44,493 $ 32,322 $ 40,323 $ 33,789 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of September 30, 2019 and December 31, 2018 (in thousands): Assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of September 30, 2019 Cash equivalents $ 85,699 $ - $ - $ 85,699 Investments in securities: Common stocks 29,270 - - 29,270 Foreign government obligations 1,877 - - 1,877 Open-end funds 675 - - 675 Closed-end funds 500 - - 500 Total investments in securities 32,322 - - 32,322 Total assets at fair value $ 118,021 $ - $ - $ 118,021 Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2018 Cash equivalents $ 40,905 $ - $ - $ 40,905 Investments in securities: Common stocks 32,414 - - 32,414 Open-end funds 38 - - 38 Closed-end funds 1,337 - - 1,337 Total investments in securities 33,789 - - 33,789 Total assets at fair value $ 74,694 $ - $ - $ 74,694 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income per Share | Basic earnings per share is calculated by dividing net income by the weighted average shares outstanding. Diluted earnings per share is calculated using the treasury stock method by dividing net income by the total weighted average shares of common stock outstanding and restricted stock awards. The computations of basic and diluted net income per share were as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic: Net income $ 13,626 $ 35,016 $ 57,535 $ 93,859 Weighted average shares outstanding 26,987 28,677 27,612 28,789 Basic net income per share $ 0.50 $ 1.22 $ 2.08 $ 3.26 Diluted: Net income $ 13,626 $ 35,016 $ 57,535 $ 93,859 Weighted average share outstanding 26,987 28,677 27,612 28,789 Restricted stock awards 106 62 64 35 Total 27,093 28,739 27,676 28,824 Diluted net income per share $ 0.50 $ 1.22 $ 2.08 $ 3.26 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt [Abstract] | |
Debt | At September 30, 2019 and December 31, 2018, the Senior Notes were recorded at face value, net of amortized issuance costs, as follows (in thousands) on the Condensed Consolidated Statements of Financial Position: September 30, 2019 December 31, 2018 Carrying Fair Value Carrying Fair Value Value Level 2 Value Level 2 5.875% Senior Notes $ 24,186 $ 24,653 $ 24,168 $ 23,061 Total $ 24,186 $ 24,653 $ 24,168 $ 23,061 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. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Summary of Leases | The following table summarizes the Company's leases for the periods presented (in thousands, except lease term and discount rate): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Finance lease cost - interest expense $ 268 $ 270 $ 810 $ 815 Finance lease cost - amortization of right-of-use asset 67 62 200 185 Operating lease cost 172 - 551 - Sublease income (121 ) (121 ) (364 ) (342 ) Total lease cost $ 386 $ 211 $ 1,197 $ 658 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance lease $ - $ 38 $ - $ 109 Operating cash flows from operating leases 177 - 602 - Financing cash flows from finance lease 46 - 132 - Total cash paid for amounts included in the measurement of lease liabilities $ 223 $ 38 $ 734 $ 109 Right-of-use assets obtained in exchange for new operating lease liabilities - n/a 1,431 n/a Weighted average remaining lease term—finance lease (years) 9.3 10.3 9.3 10.3 Weighted average remaining lease term—operating leases (years) 2.8 n/a 2.8 n/a Weighted average discount rate—finance lease 19.1 % 19.1 % 19.1 % 19.1 % Weighted average discount rate—operating leases 5.0 % n/a 5.0 % n/a |
Maturities of Lease Liabilities | The following table summarizes the maturities of lease liabilities at September 30, 2019 (in thousands): Year ending December 31, Finance Leases Operating Leases Total Leases 2019 (excluding the nine months ended September 30, 2019) $ 313 $ 140 $ 453 2020 1,080 288 1,368 2021 1,080 228 1,308 2022 1,080 164 1,244 2023 1,080 155 1,235 Thereafter 5,400 61 5,461 Total lease payments $ 10,033 $ 1,036 $ 11,069 Less imputed interest (5,371 ) (96 ) (5,467 ) Total lease liabilities $ 4,662 $ 940 $ 5,602 |
Organization and Description _2
Organization and Description of Business (Details) | Sep. 30, 2019FundInvestor |
Organization and Description of Business [Abstract] | |
Number of open-end funds | 24 |
Number of closed-end funds | 16 |
Number of open-end investment funds | 1 |
Number of institutional investors | Investor | 1,700 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncement [Abstract] | ||
Increase to other assets | $ 1,265 | $ (1,008) |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Streams [Abstract] | ||||
Revenue | $ 75,345 | $ 85,788 | $ 226,088 | $ 260,478 |
Closed-end Funds [Member] | Performance-based [Member] | ||||
Revenue Streams [Abstract] | ||||
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 67,015 | 75,934 | $ 200,893 | 230,616 |
Advisory Fees [Member] | Performance-based [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 449 | 180 | 807 | 207 |
Advisory Fees [Member] | Conditional [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 0 | 0 | $ 0 | 1,650 |
Number of days for customer to make payment after being invoiced | 60 days | |||
Advisory Fees [Member] | Open-end Funds [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 26,263 | 31,481 | $ 80,215 | 94,326 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | Closed-end Funds [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 16,475 | 17,337 | $ 48,555 | 51,389 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | Closed-end Funds [Member] | Performance-based [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 | 843 | 1,189 | $ 2,677 | 3,430 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | Institutional & PWM [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 21,500 | 24,276 | $ 64,421 | 75,391 |
Number of days for customer to make payment after being invoiced | 60 days | |||
Advisory Fees [Member] | Institutional & PWM [Member] | Performance-based [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 | 1,485 | 1,471 | $ 4,218 | 4,223 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Distribution Fees and Other Income [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | $ 8,330 | $ 9,854 | $ 25,195 | $ 29,862 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Securities carried at FVTNI [Abstract] | ||
Cost | $ 44,493 | $ 40,323 |
Fair Value | 32,322 | 33,789 |
Common Stock [Member] | ||
Securities carried at FVTNI [Abstract] | ||
Cost | 41,356 | 38,865 |
Fair Value | 29,270 | 32,414 |
Foreign Government Obligations [Member] | ||
Securities carried at FVTNI [Abstract] | ||
Cost | 1,895 | 0 |
Fair Value | 1,877 | 0 |
Open-end Funds [Member] | ||
Securities carried at FVTNI [Abstract] | ||
Cost | 753 | 44 |
Fair Value | 675 | 38 |
Closed-end Funds [Member] | ||
Securities carried at FVTNI [Abstract] | ||
Cost | 489 | 1,414 |
Fair Value | $ 500 | $ 1,337 |
Investment in Securities, Secur
Investment in Securities, Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities carried at FVTNI [Abstract] | ||
Investment sold, not yet purchased | $ 0 | $ 0 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments in securities [Abstract] | ||
Investments in securities | $ 32,322 | $ 33,789 |
Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 29,270 | 32,414 |
Foreign Government Equity Securities [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 1,877 | 0 |
Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 675 | 38 |
Closed-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 500 | 1,337 |
Recurring Basis [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 85,699 | 40,905 |
Investments in securities [Abstract] | ||
Investments in securities | 32,322 | 33,789 |
Total assets at fair value | 118,021 | 74,694 |
Recurring Basis [Member] | Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 29,270 | 32,414 |
Recurring Basis [Member] | Foreign Government Equity Securities [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 1,877 | |
Recurring Basis [Member] | Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 675 | 38 |
Recurring Basis [Member] | Closed-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 500 | 1,337 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 85,699 | 40,905 |
Investments in securities [Abstract] | ||
Investments in securities | 32,322 | 33,789 |
Total assets at fair value | 118,021 | 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 | 29,270 | 32,414 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign Government Equity Securities [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 1,877 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 675 | 38 |
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 | 500 | 1,337 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Total assets at fair value | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Government Equity Securities [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 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 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Total assets at fair value | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign Government Equity Securities [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Closed-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effective tax rate [Abstract] | ||||
Effective income tax rate | 27.10% | 24.60% | 25.80% | 24.30% |
Accrual adjustment of uncertain tax position | $ 1,500 | |||
Adjusted effective income tax rate | 23.90% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic [Abstract] | ||||||||
Net income | $ 13,626 | $ 24,017 | $ 19,892 | $ 35,016 | $ 31,582 | $ 27,261 | $ 57,535 | $ 93,859 |
Weighted average share outstanding (in shares) | 26,987 | 28,677 | 27,612 | 28,789 | ||||
Basic net income per share (in dollars per share) | $ 0.50 | $ 1.22 | $ 2.08 | $ 3.26 | ||||
Diluted [Abstract] | ||||||||
Net income | $ 13,626 | $ 24,017 | $ 19,892 | $ 35,016 | $ 31,582 | $ 27,261 | $ 57,535 | $ 93,859 |
Weighted average share outstanding (in shares) | 26,987 | 28,677 | 27,612 | 28,789 | ||||
Restricted stock awards (in shares) | 106 | 62 | 64 | 35 | ||||
Total (in shares) | 27,093 | 28,739 | 27,676 | 28,824 | ||||
Diluted net income per share (in dollars per share) | $ 0.50 | $ 1.22 | $ 2.08 | $ 3.26 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | May 31, 2011 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Nov. 30, 2015 |
Long-term debt [Abstract] | ||||||
Carrying value | $ 24,186 | $ 24,168 | ||||
Level 2 [Member] | ||||||
Long-term debt [Abstract] | ||||||
Fair value | $ 24,653 | 23,061 | ||||
AC 4% PIK Note [Member] | ||||||
Long-term debt [Abstract] | ||||||
Face value of debt | $ 250,000 | |||||
Debt instrument, interest rate | 4.00% | 4.00% | ||||
Debt instrument, maturity date | Nov. 30, 2020 | |||||
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2020 [Member] | ||||||
Long-term debt [Abstract] | ||||||
Prepayment of debt | $ 20,000 | $ 50,000 | ||||
5.875% Senior Notes [Member] | ||||||
Long-term debt [Abstract] | ||||||
Carrying value | $ 24,186 | $ 24,168 | ||||
Debt instrument, term | 10 years | |||||
Face value of debt | $ 100,000 | |||||
Debt instrument, interest rate | 5.875% | 5.875% | 5.875% | |||
Debt instrument, maturity date | Jun. 1, 2021 | |||||
Debt redemption price | 101.00% | |||||
5.875% Senior Notes [Member] | Level 2 [Member] | ||||||
Long-term debt [Abstract] | ||||||
Fair value | $ 24,653 | $ 23,061 |
Stockholders' Equity, Shares Ou
Stockholders' Equity, Shares Outstanding (Details) - shares shares in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Stockholders' Equity [Abstract] | ||
Shares outstanding (in shares) | 27.5 | 29 |
Stockholders' Equity, Voting Ri
Stockholders' Equity, Voting Rights, Stock Award and Incentive Plan (Details) $ / shares in Units, $ in Thousands | Jun. 30, 2019$ / sharesshares | Apr. 01, 2019USD ($)$ / shares | Sep. 17, 2018$ / sharesshares | Aug. 07, 2018$ / sharesshares | Jul. 02, 2018USD ($)$ / shares | Apr. 04, 2018$ / sharesshares | Jan. 05, 2018shares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($)shares | Dec. 31, 2017$ / shares | Jun. 30, 2017$ / shares | Sep. 30, 2019USD ($)VoteperSharePlan$ / sharesshares | Sep. 30, 2018USD ($) | Dec. 31, 2018$ / sharesshares |
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 | $ 800 | $ 500 | $ 1,998 | 1,042 | ||||||||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||||||||||||
Compensation cost related to non-vested options not yet recognized | $ 10,500 | $ 10,500 | ||||||||||||
Deferred Compensation Arrangements [Abstract] | ||||||||||||||
Payments for compensation agreement | $ 11,000 | $ 28,300 | ||||||||||||
Payments for compensation agreement waiver | 6,000 | |||||||||||||
Reduction of RSU expense due to cap and waiver of receipt of deferred compensation expense | $ 4,500 | $ 2,600 | ||||||||||||
Deferred compensation agreement, share price (in dollars per share) | $ / shares | $ 20.7916 | $ 27.1837 | $ 29.1875 | $ 29.6596 | ||||||||||
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 | 264,900 | 5,000 | 162,450 | 270,500 | ||||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 19.17 | $ 25.74 | $ 25.16 | $ 24.77 | ||||||||||
RSA shares outstanding (in shares) | shares | 674,450 | 674,450 | 427,650 | |||||||||||
Average weighted grant price (in dollars per share) | $ / shares | $ 22.67 | $ 22.67 | $ 24.93 | |||||||||||
Number of shares with accelerated vesting (in shares) | shares | 19,400 | |||||||||||||
RSAs vested (in shares) | shares | 0 | 0 | 0 | |||||||||||
Restricted Stock Awards [Member] | ASU 2016-09 [Member] | ||||||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||||||
Tax benefit from stock based compensation expenses | $ 100 | |||||||||||||
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 | |||||||||||||
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 | 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, Dividends and Shelf Registration (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 16, 2019 | Apr. 16, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | May 31, 2019 | Dec. 31, 2018 | Apr. 23, 2018 |
Stock Repurchase Program [Abstract] | |||||||||||||
Incremental Class A shares authorized to buyback (in shares) | 1,212,759 | ||||||||||||
Stock Repurchase [Abstract] | |||||||||||||
Stock outstanding (in shares) | 27,500,000 | 27,500,000 | 29,000,000 | ||||||||||
Dividends [Abstract] | |||||||||||||
Dividends declared (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.06 | $ 0.06 | |||||
Shelf Registration [Abstract] | |||||||||||||
Maximum amount of debt and equity to be issued under shelf registration | $ 500 | ||||||||||||
Class A [Member] | |||||||||||||
Stock Repurchase [Abstract] | |||||||||||||
Stock outstanding (in shares) | 8,523,966 | 8,523,966 | 9,957,301 | ||||||||||
Class A [Member] | Stock Repurchase Program [Member] | |||||||||||||
Stock Repurchase Program [Abstract] | |||||||||||||
Shares repurchased (in shares) | 70,000 | 1,200,000 | 123,743 | 397,499 | |||||||||
Average price per share of repurchased shares (in dollars per share) | $ 20.07 | $ 21 | $ 19.26 | $ 19.46 | |||||||||
Share available under program to repurchase (in shares) | 397,311 | 397,311 | |||||||||||
Stock Repurchase [Abstract] | |||||||||||||
Average price per share of repurchased shares (in dollars per share) | $ 20.07 | $ 21 | $ 19.26 | $ 19.46 | |||||||||
Class B [Member] | |||||||||||||
Stock Repurchase [Abstract] | |||||||||||||
Stock outstanding (in shares) | 19,024,117 | 19,024,117 | 19,024,240 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Identifiable Intangible Assets [Abstract] | |||||
Goodwill | $ 0.2 | $ 0.2 | $ 0.2 | ||
Intangible assets, net [Abstract] | |||||
Impairment on intangible assets | 0 | $ 0 | 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 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)$ / ft² | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)$ / ft² | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Commitments and Contingencies [Abstract] | |||||
Lease term | 15 years | 15 years | |||
Base rent per square foot (in dollars per square foot) | $ / ft² | 18 | 18 | |||
Base rental | $ 1,100 | ||||
Accumulated amortization on the leased property | $ 5,200 | 5,200 | $ 5,100 | ||
Lease Cost [Abstract] | |||||
Finance lease cost - interest expense | 268 | $ 270 | 810 | $ 815 | |
Finance lease cost - amortization of right-of-use asset | 67 | 62 | 200 | 185 | |
Operating lease cost | 172 | 0 | 551 | 0 | |
Sublease income | (121) | (121) | (364) | (342) | |
Total lease cost | 386 | 211 | 1,197 | 658 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||||
Operating cash flows from finance lease | 0 | 38 | 0 | 109 | |
Operating cash flows from operating leases | 177 | 0 | 602 | 0 | |
Financing cash flows from finance lease | 46 | 0 | 132 | 0 | |
Total cash paid for amounts included in the measurement of lease liabilities | 223 | $ 38 | 734 | $ 109 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 1,431 | |||
Weighted average remaining lease term-finance lease | 9 years 3 months 18 days | 10 years 3 months 18 days | 9 years 3 months 18 days | 10 years 3 months 18 days | |
Weighted average remaining lease term-operating leases | 2 years 9 months 18 days | 2 years 9 months 18 days | |||
Weighted average discount rate-finance lease | 19.10% | 19.10% | 19.10% | 19.10% | |
Weighted average discount rate-operating leases | 5.00% | 5.00% | |||
Finance lease right-of-use asset, net of amortization | $ 1,900 | $ 1,900 | 2,100 | ||
Operating right-of-use assets, net of amortization | 900 | 900 | $ 0 | ||
Finance Leases [Abstract] | |||||
2019 (excluding the nine months ended September 30, 2019) | 313 | 313 | |||
2020 | 1,080 | 1,080 | |||
2021 | 1,080 | 1,080 | |||
2022 | 1,080 | 1,080 | |||
2023 | 1,080 | 1,080 | |||
Thereafter | 5,400 | 5,400 | |||
Total lease payments | 10,033 | 10,033 | |||
Less imputed interest | (5,371) | (5,371) | |||
Total lease payments | 4,662 | 4,662 | |||
Operating Leases [Abstract] | |||||
2019 (excluding the nine months ended September 30, 2019) | 140 | 140 | |||
2020 | 288 | 288 | |||
2021 | 228 | 228 | |||
2022 | 164 | 164 | |||
2023 | 155 | 155 | |||
Therafter | 61 | 61 | |||
Total lease payments | 1,036 | 1,036 | |||
Less imputed interest | (96) | (96) | |||
Total lease liabilities | 940 | 940 | |||
Total Leases [Abstract] | |||||
2019 (excluding the nine months ended September 30, 2019) | 453 | 453 | |||
2020 | 1,368 | 1,368 | |||
2021 | 1,308 | 1,308 | |||
2022 | 1,244 | 1,244 | |||
2023 | 1,235 | 1,235 | |||
Thereafter | 5,461 | 5,461 | |||
Total lease payments | 11,069 | 11,069 | |||
Less imputed interest | (5,467) | (5,467) | |||
Total lease liabilities | 5,602 | 5,602 | |||
Minimum future sublease rental, due from affiliated entities | 800 | $ 800 | |||
Period of minimum future sublease rental, due from affiliated entities | 5 years | ||||
Future sublease payments from AC per month | $ 40 | $ 40 |
Shareholder-Designated Contri_2
Shareholder-Designated Contributions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Shareholder-Designated Contributions [Abstract] | ||||
Expense related to shareholder-designated charitable contribution program | $ 4.5 | $ 0.7 | $ 4.5 | $ 0.9 |
Related Party Transactions (Det
Related Party Transactions (Details) - Chief Executive Officer [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Related party expenses [Abstract] | ||||
Compensation | $ (3.6) | $ (14.4) | $ (15.8) | $ (33.5) |
Management fee | $ (0.6) | $ (3.3) | $ (2.3) | $ (8) |
Regulatory Requirements (Detail
Regulatory Requirements (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Regulatory Requirements [Abstract] | |
Minimum capital requirement | $ 250,000 |
Percentage of minimum capital requirement | 2.00% |
Net capital | $ 4,100,000 |
Net capital exceeding regulatory requirements | $ 3,800,000 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Nov. 08, 2019 | Nov. 08, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Dividends [Abstract] | ||||||||||
Dividends declared (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.06 | $ 0.06 | ||
Subsequent Event [Member] | ||||||||||
Stock Repurchase [Abstract] | ||||||||||
Stock repurchased (in shares) | 56,064 | |||||||||
Stock repurchased per share (in dollars per share) | $ 17.27 | |||||||||
Additional shares authorized to be issued (in shares) | 1,000,000 | |||||||||
Subsequent Event [Member] | Quarterly Dividend Declared in Q4 2019 [Member] | ||||||||||
Dividends [Abstract] | ||||||||||
Dividends declared (in dollars per share) | $ 0.02 | |||||||||
Dividends declared date | Nov. 8, 2019 | |||||||||
Dividends payable date | Dec. 31, 2019 | |||||||||
Dividends record date | Dec. 17, 2019 |