For Immediate Release: | Contact: | Howard Green |
SVP of Corporate Development (914) 921-7729 | ||
For further information please visit | ||
www.gabelli.com |
- | Net income for the third quarter was $29.2 million vs. $16.4 million in 2020 |
- | Fully diluted third quarter EPS was $1.09 vs. $0.62 per share a year ago |
- | September 30, 2021 AUM of $33.5 billion vs. $29.7 billion at September 30, 2020 |
- | Equity AUM was $31.9 billion at September 30, 2021 vs. $26.8 billion at September 30, 2020 |
- | Board authorizes 100% increase of the regular quarterly dividend to $0.04 per share |
Financial Highlights (Unaudited) | ||||||||
Three Months Ended | ||||||||
(In thousands, except per share data) | September 30, 2021 | September 30, 2020 | ||||||
U.S. GAAP Basis | ||||||||
Revenues | $ | 75,907 | $ | 61,252 | ||||
Operating income | 40,676 | 31,842 | ||||||
Net income | 29,161 | 16,435 | ||||||
Diluted earnings per common share | $ | 1.09 | $ | 0.62 | ||||
Weighted average diluted shares outstanding | 26,832 | 26,613 | ||||||
Shares outstanding | 27,096 | 27,485 | ||||||
Assets Under Management | ||||||||
AUM - end of period (in millions) | $ | 33,539 | $ | 29,692 | ||||
AUM - average (in millions) | 34,625 | 30,326 |
This charitable program underscores our commitment to giving back to society which emanated in part from our management of socially responsible portfolios since 1987. Later, we integrated ESG (environmental, social, and governance) factors into our investment process.
New Climate and Environmental Initiative
In February 2021, we launched Love Our Planet & People (NYSE: LOPP), an actively managed, semi-transparent ETF with an investment emphasis on the “E” in ESG –the environment is essential to the future of our planet. Shareholders of the fund do not pay any fees or expenses of LOPP.
- | Total revenues for the third quarter of 2021 were $75.9 million compared with $61.3 million in the third quarter of 2020. |
- | Investment advisory fees were $69.1 million in the third quarter of 2021 versus $54.9 million in the year ago quarter: |
- | Gabelli Funds’ revenues were $48.0 million compared to $38.9 million in the third quarter of 2020. |
- | Institutional and Private Wealth Management revenues, which are generally billed on portfolio values at the beginning of the quarter, were $19.2 million compared to $14.8 million in last year’s third quarter. |
- | SICAV revenues were $1.9 million for the third quarter of 2021 as compared to $1.2 million in the year ago quarter. |
- | Distribution fees from our equity mutual funds and other income were $6.8 million during the third quarter of 2021 and $6.4 million in the prior year quarter. |
- | We completed two rights offerings: |
- | On July 21st, the Gabelli Equity Trust (NYSE: GAB) completed a rights offering that raised approximately $144 million. |
- | On August 30th, the Gabelli Multimedia Trust Inc. (NYSE: GGT) completed an offering that raised approximately $18 million. |
- | On September 9th, we hosted our 27th Annual Aerospace & Defense Symposium in New York City. The symposium featured leading companies in the Aerospace and Defense industries. |
- | On October 7th, the Gabelli Dividend & Income Trust (NYSE: GDV) completed the offering of $150 million of 4.25% Series K Cumulative Preferred Shares. |
- | On October 15th, the Gabelli Healthcare & Wellness Trust (NYSE: GRX) completed a private placement of $40 million of 4% Series E Cumulative Preferred Shares. |
- | On November 1st, the Gabelli Global Small and Mid Cap Value Trust (NYSE: GGZ) raised a similar $40 million via a private placement of 4% Series B Cumulative Preferred Shares. |
- | On November 1st and 2nd, we hosted our 45th Annual Automotive Symposium, “Batteries Included” in Las Vegas. The symposium featured presentations from senior management of leading automotive and electric vehicle suppliers, with an emphasis on the battery ecosystem, technological innovation, and industry dynamics. |
Fund | ||||||||||||||||||||||||||||
Market | distributions, | |||||||||||||||||||||||||||
June 30, | Client | Client | appreciation/ | net of | September 30, | September 30, | ||||||||||||||||||||||
2021 | Inflows | Outflows | (depreciation) | reinvestments | 2021 | 2020 | ||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||
Mutual Funds | $ | 10,206 | $ | 235 | $ | (400 | ) | $ | (179 | ) | $ | (6 | ) | $ | 9,856 | $ | 8,855 | |||||||||||
Closed-end Funds | 8,499 | 163 | (213 | ) | (88 | ) | (123 | ) | 8,238 | 7,017 | ||||||||||||||||||
Institutional & PWM (a) | 13,590 | 111 | (382 | ) | (268 | ) | - | 13,051 | 10,539 | |||||||||||||||||||
SICAV | 665 | 88 | (11 | ) | (14 | ) | - | 728 | 437 | |||||||||||||||||||
Total Equities | 32,960 | 597 | (1,006 | ) | (549 | ) | (129 | ) | 31,873 | 26,848 | ||||||||||||||||||
100% U.S. Treasury Fund | 1,633 | 667 | (666 | ) | - | - | 1,634 | 2,822 | ||||||||||||||||||||
Institutional & PWM Fixed Income | 32 | - | - | - | - | 32 | 22 | |||||||||||||||||||||
Total Treasuries & Fixed Income | 1,665 | 667 | (666 | ) | - | - | 1,666 | 2,844 | ||||||||||||||||||||
Total Assets Under Management | $ | 34,625 | $ | 1,264 | $ | (1,672 | ) | $ | (549 | ) | $ | (129 | ) | $ | 33,539 | $ | 29,692 | |||||||||||
(a) Includes $154, $178, and $196 of 100% U.S. Treasury Fund AUM at June 30, 2021, September 30, 2021, and September 30, 2020, respectively. | ||||||||||||||||||||||||||||
Table II | ||||||||||||||||
GAMCO INVESTORS, INC. | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Investment advisory and incentive fees | $ | 69,147 | $ | 54,894 | $ | 199,502 | $ | 168,637 | ||||||||
Distribution fees and other income | 6,760 | 6,358 | 19,957 | 19,741 | ||||||||||||
Total revenues | 75,907 | 61,252 | 219,459 | 188,378 | ||||||||||||
Compensation costs (a) (b) | 21,965 | 17,722 | 83,945 | 72,488 | ||||||||||||
Management fee expense (b) | - | - | 5,552 | 3,725 | ||||||||||||
Distribution costs | 7,781 | 6,994 | 22,523 | 21,258 | ||||||||||||
Other operating expenses | 5,485 | 4,694 | 19,460 | 14,982 | ||||||||||||
Total expenses | 35,231 | 29,410 | 131,480 | 112,453 | ||||||||||||
Operating income | 40,676 | 31,842 | 87,979 | 75,925 | ||||||||||||
Investment gain/(loss) | (1,218 | ) | (3,092 | ) | 2,735 | (12,361 | ) | |||||||||
Interest expense | (814 | ) | (691 | ) | (2,101 | ) | (1,985 | ) | ||||||||
Shareholder-designated contribution | - | (5,436 | ) | - | (5,436 | ) | ||||||||||
Non-operating gain/(loss) | (2,032 | ) | (9,219 | ) | 634 | (19,782 | ) | |||||||||
Income before income taxes | 38,644 | 22,623 | 88,613 | 56,143 | ||||||||||||
Provision for income taxes | 9,483 | 6,188 | 26,401 | 17,173 | ||||||||||||
Net income | $ | 29,161 | $ | 16,435 | $ | 62,212 | $ | 38,970 | ||||||||
Net income: | ||||||||||||||||
Basic | $ | 1.11 | $ | 0.62 | $ | 2.36 | $ | 1.46 | ||||||||
Diluted | $ | 1.09 | $ | 0.62 | $ | 2.32 | $ | 1.46 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 26,222 | 26,531 | 26,310 | 26,615 | ||||||||||||
Diluted | 26,832 | 26,613 | 26,863 | 26,679 | ||||||||||||
Actual shares outstanding (c) | 27,096 | 27,485 | 27,096 | 27,485 | ||||||||||||
(a) For the nine months ended September 30, 2020, compensation costs were reduced by $1,409 | ||||||||||||||||
due to indexing of deferred compensation to the GBL stock price. | ||||||||||||||||
(b) The CEO waiver reduced compensation costs by $10,063, $8,546, $10,063, and $8,546, respectively | ||||||||||||||||
and management fee expense by $2,858, $1,408, $2,858, and $1,408, respectively. | ||||||||||||||||
(c) Includes 909 and 1,020 RSA shares at September 30, 2021 and 2020, respectively. | ||||||||||||||||
GAMCO INVESTORS, INC. | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||
(In thousands) | ||||||||||||
September 30, | December 31, | September 30, | ||||||||||
2021 | 2020 | 2020 | ||||||||||
ASSETS | ||||||||||||
Cash, cash equivalents, and U.S. Treasury Bills | $ | 152,615 | $ | 98,313 | $ | 125,242 | ||||||
Investments in securities | 29,561 | 25,845 | 15,071 | |||||||||
Receivable from brokers | 4,629 | 5,833 | 5,688 | |||||||||
Other receivables | 28,137 | 34,054 | 23,232 | |||||||||
Deferred tax asset and income tax receivable | 9,058 | 9,462 | 10,608 | |||||||||
Other assets | 12,330 | 11,895 | 11,318 | |||||||||
Total assets | $ | 236,330 | $ | 185,402 | $ | 191,159 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Payable to brokers | $ | 75 | $ | 1 | $ | - | ||||||
Securities sold, not yet purchased | - | 799 | - | |||||||||
Income taxes payable | 2,414 | 3,910 | 360 | |||||||||
Compensation payable | 47,767 | 21,543 | 32,094 | |||||||||
Accrued expenses and other liabilities | 45,787 | 48,023 | 42,766 | |||||||||
Sub-total | 96,043 | 74,276 | 75,220 | |||||||||
5.875% Senior Notes (due June 1, 2021) | - | 24,215 | 24,209 | |||||||||
Subordinated Notes (due June 15, 2023) | 52,102 | - | - | |||||||||
Total liabilities | 148,145 | 98,491 | 99,429 | |||||||||
Stockholders' equity (a) | 88,185 | 86,911 | 91,730 | |||||||||
Total liabilities and stockholders' equity | $ | 236,330 | $ | 185,402 | $ | 191,159 | ||||||
(a) Shares outstanding of 27,096, 27,503, and 27,485, respectively. | ||||||||||||