Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Associated Capital Group, Inc. | |
Entity Central Index Key | 0001642122 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Address, State or Province | CT | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,158,127 | |
Class B Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 18,962,918 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 279,725 | $ 39,509 |
Investments in U.S. Treasury Bills | 75,000 | 344,453 |
Investments in equity securities (Including GBL stock with a value of $50.5 million and $48.9 million, respectively) | 265,700 | 249,887 |
Investments in affiliated registered investment companies | 184,129 | 170,605 |
Investments in partnerships | 133,538 | 123,994 |
Receivable from brokers | 31,412 | 24,677 |
Investment advisory fees receivable | 1,190 | 7,346 |
Receivable from affiliates | 1,247 | 4,743 |
Deferred tax assets, net | 0 | 2,207 |
Goodwill | 3,519 | 3,519 |
Other assets | 20,732 | 28,565 |
Investments in marketable securities held in trust | 175,074 | 175,040 |
Total assets | 1,171,266 | 1,174,545 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Payable to brokers | 10,488 | 6,496 |
Income taxes payable, including deferred tax liabilities of $506 in 2021 | 13,181 | 9,746 |
Compensation payable | 9,526 | 18,567 |
Securities sold, not yet purchased | 16,702 | 17,571 |
Payable to affiliates | 242 | 2,188 |
Accrued expenses and other liabilities | 4,186 | 5,635 |
Deferred underwriting fee payable | 6,125 | 6,125 |
Total liabilities | 60,450 | 66,328 |
Redeemable noncontrolling interests | 195,070 | 206,828 |
Commitments and contingencies (Note J) | ||
Equity: | ||
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 999,047 | 999,047 |
Retained earnings | 32,204 | 13,649 |
Treasury stock, at cost (3,437,214 and 3,318,127 shares, respectively) | (117,981) | (113,783) |
Total Associated Capital Group, Inc. equity | 913,295 | 898,938 |
Noncontrolling interests | 2,451 | 2,451 |
Total equity | 915,746 | 901,389 |
Total liabilities and equity | 1,171,266 | 1,174,545 |
Class A [Member] | ||
Equity: | ||
Common stock | 6 | 6 |
Class B [Member] | ||
Equity: | ||
Common stock | $ 19 | $ 19 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Investment in GBL stock | $ 50,500 | $ 48,900 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Deferred tax liabilities | $ 506 | |
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, shares outstanding (in shares) | 22,155,000 | |
Treasury stock, shares outstanding (in shares) | 3,437,214 | 3,318,127 |
Class A [Member] | ||
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, shares issued (in shares) | 6,629,254 | 6,629,254 |
Common stock, shares outstanding (in shares) | 3,192,040 | 3,311,127 |
Class B [Member] | ||
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, shares issued (in shares) | 19,196,792 | 19,196,792 |
Common stock, shares outstanding (in shares) | 18,962,918 | 18,962,918 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Total revenues | $ 2,325 | $ 2,962 |
Expenses | ||
Compensation | 3,868 | 2,232 |
Management fee | 2,663 | 0 |
Other operating expenses | 2,159 | 1,370 |
Total expenses | 8,690 | 3,602 |
Operating loss | (6,365) | (640) |
Other income/(expense) | ||
Net gain from investments | 31,321 | (102,089) |
Interest and dividend income | 1,189 | 2,274 |
Interest expense | (91) | (49) |
Shareholder-designated contribution | (1,737) | (227) |
Total other income, net | 30,682 | (100,091) |
Income/(loss) before income taxes | 24,317 | (100,731) |
Income tax expense/(benefit) | 5,590 | (23,662) |
Income/(loss) from continuing operations, net of taxes | 18,727 | (77,069) |
Income/(loss) from discontinued operations, net of taxes | 0 | (231) |
Income/(loss) before noncontrolling interests | 18,727 | (77,300) |
Income/(loss) attributable to noncontrolling interests | 172 | (3,945) |
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ 18,555 | $ (73,355) |
Net income/(loss) per share attributable to Associated Capital Group, Inc.'s shareholders: | ||
Basic- Continuing operations (in dollars per share) | $ 0.83 | $ (3.26) |
Basic - Discontinued operations (in dollars per share) | 0 | (0.01) |
Basic - Total (in dollars per share) | 0.83 | (3.27) |
Diluted- Continuing operations (in dollars per share) | 0.83 | (3.26) |
Diluted - Discontinued operations (in dollars per share) | 0 | (0.01) |
Diluted - Total (in dollars per share) | $ 0.83 | $ (3.27) |
Weighted average shares outstanding: | ||
Basic (in shares) | 22,222 | 22,441 |
Diluted (in shares) | 22,222 | 22,441 |
Actual shares outstanding (in shares) | 22,155 | 22,394 |
Investment Advisory and Incentive Fees [Member] | ||
Revenues | ||
Total revenues | $ 2,225 | $ 2,700 |
Other [Member] | ||
Revenues | ||
Total revenues | $ 100 | $ 262 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income/(loss) before non-controlling interests | $ 18,727 | $ (77,300) |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 172 | (3,945) |
Comprehensive income/(loss) attributable to Associated Capital Group, Inc. | $ 18,555 | $ (73,355) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Parent [Member] | Noncontrolling Interests [Member] | Total | Redeemable Noncontrolling Interests [Member] |
Balance at Dec. 31, 2019 | $ 25 | $ (701) | $ 1,003,450 | $ (106,342) | $ 896,432 | $ 1,003 | $ 897,435 | $ 50,385 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (531) |
Net income/(loss) | 0 | (73,355) | 0 | 0 | (73,355) | (52) | (73,407) | (3,945) |
Purchase of treasury stock | 0 | 0 | 0 | (3,225) | (3,225) | 0 | (3,225) | 0 |
Balance at Mar. 31, 2020 | 25 | (74,056) | 1,003,450 | (109,567) | 819,852 | 951 | 820,803 | 45,909 |
Balance at Dec. 31, 2020 | 25 | 13,649 | 999,047 | (113,783) | 898,938 | 2,451 | 901,389 | 206,828 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contributions from redeemable noncontrolling interests | 136 | |||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (12,066) |
Net income/(loss) | 0 | 18,555 | 0 | 0 | 18,555 | 0 | 18,555 | 172 |
Purchase of treasury stock | 0 | 0 | 0 | (4,198) | (4,198) | 0 | (4,198) | 0 |
Balance at Mar. 31, 2021 | $ 25 | $ 32,204 | $ 999,047 | $ (117,981) | $ 913,295 | $ 2,451 | $ 915,746 | $ 195,070 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net income/(loss) | $ 18,727 | $ (77,300) |
Less: (Loss) from discontinued operations, net of taxes | 0 | (231) |
Income/(loss) from continuing operations | 18,727 | (77,069) |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||
Equity in net (gains) losses from partnerships | (6,935) | 10,676 |
Depreciation and amortization | 12 | 799 |
Deferred income taxes | 2,714 | (21,177) |
Donated securities | 1,648 | 281 |
Unrealized (gains)/losses on securities | (18,548) | 99,377 |
Realized gains on sales of securities | (538) | 0 |
(Increase)/decrease in assets: | ||
Investments in trading securities | 250,884 | 15,206 |
Investments in partnerships: | ||
Contributions to partnerships | (1,061) | (3,429) |
Distributions from partnerships | 1,663 | 1,266 |
Receivable from affiliates | 3,875 | 3,884 |
Receivable from brokers | (8,578) | 6,239 |
Investment advisory fees receivable | 6,209 | 8,271 |
Income taxes receivable | (507) | 1,176 |
Other assets | (808) | 5,649 |
Increase/(decrease) in liabilities: | ||
Payable to affiliates | (1,946) | 919 |
Payable to brokers | 3,991 | (6,070) |
Income taxes payable | 3,435 | (3,680) |
Compensation payable | (9,041) | (14,215) |
Accrued expenses and other liabilities | (1,628) | (568) |
Total adjustments | 224,841 | 104,604 |
Net cash provided by operating activities | 243,568 | 27,535 |
Investing activities | ||
Maturities of U.S. Treasury Bills held in trust | 175,074 | 0 |
Purchases of money market funds held in trust | (175,074) | 0 |
Purchases of securities | (250) | (193) |
Proceeds from sales of securities | 805 | 321 |
Return of capital on securities | 155 | 349 |
Purchase of building | 0 | (11,084) |
Net cash provided by/(used in) investing activities | 710 | (10,607) |
Financing activities | ||
Redemptions of redeemable noncontrolling interests | 0 | (531) |
Dividends paid | 0 | (2,248) |
Purchase of treasury stock | (4,198) | (3,225) |
Contributions from redeemable noncontrolling interests | 136 | 0 |
Net cash provided by (used in) financing activities | (4,062) | (6,004) |
Cash flows of discontinued operations | ||
Net cash provided by (used in) operating activities | 0 | (918) |
Net increase in cash and cash equivalents | 240,216 | 10,006 |
Cash and cash equivalents at beginning of period | 39,509 | 342,001 |
Cash and cash equivalents at end of period | 279,725 | 352,007 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 91 | 49 |
Cash paid/(received) for taxes | $ 0 | $ 0 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2021 | |
Organization [Abstract] | |
Organization | A. Organization Unless we have indicated otherwise, or the context otherwise requires, references in this report to “Associated Capital Group, Inc.,” “AC Group,” “the Company,” “AC,” “we,” “us” and “our” or similar terms are to Associated Capital Group, Inc., its predecessors and its subsidiaries. We are a Delaware corporation that provides alternative investment management, and we derive investment income/(loss) from proprietary investment of cash and other assets in our operating business. GCIA and its wholly-owned subsidiary, Gabelli & Partners, LLC (“Gabelli & Partners”), collectively serve as general partners or investment managers to investment funds including limited partnerships and offshore companies (collectively, “Investment Partnerships”), and separate accounts. We primarily manage assets in equity event-driven value strategies, across a range of risk and event arbitrage portfolios. The businesses earn management and incentive fees from their advisory activities. Management fees are largely based on a percentage of assets under management. Incentive fees are based on the percentage of the investment returns of certain clients’ portfolios. GCIA is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). In April 2018, the Company sponsored a €110 million initial public offering of its first special purpose acquisition corporation, the Gabelli Value for Italy S.p.a., an Italian company listed on the London Stock Exchange’s Borsa Italiana AIM segment under the symbol “VALU”. VALU was created to acquire a small-to medium-sized Italian franchise business with the potential for international expansion, particularly in the United States. Gabelli Value for Italy S.p.a was subsequently liquidated on July 8, 2020 at the apex of the pandemic in Italy. PMV Consumer Acquisition Corp. On September 22, 2020, Associated Capital announced the $175 million initial public offering of its special purpose acquisition corporation, PMV Consumer Acquisition Corp. (NYSE:PMVC). PMV Consumer Acquisition Corp. (“PMV”) was created to pursue an initial business combination following the consumer globally with companies having an enterprise valuation in the range of $200 million to $3.5 billion. PMV Consumer Acquisition Holding Company, LLC (“Sponsor”) was created to assist PMV in sourcing, analyzing and consummating acquisition opportunities for that initial business combination. The Sponsor and PMV have been consolidated in the financial statements of AC beginning in September 2020 because AC has a controlling financial interest in these entities. This resulted in the consolidation $177.4 million of assets, $6.3 million of liabilities, $154.5 million of redeemable noncontrolling interests, $2.4 million of noncontrolling interests relating to PMV and the Sponsor as of March 31, 2021. In addition, there are several other entities that are consolidated within the financial statements. The details on the impact of consolidating these entities on the consolidated financial statements can be seen in Note D. Investment Partnerships and Other Entities See Note D for a further discussion of PMV Consumer Acquisition Corp. as well as its registration statement and Form 10K as of December 31, 2020 both located on the U.S. Securities and Exchange Commission website https://www.sec.gov/edgar/searchedgar/companysearch.html AC Spin-off On November 30, 2015, GAMCO Investors, Inc. (“GAMCO” or “GBL”) distributed all the outstanding shares of each class of AC common stock on a pro rata one-for-one basis to the holders of each class of GAMCO’s common stock (the “Spin-off”). As part of the Spin-off, AC received 4,393,055 shares of GAMCO Class A common stock for $150 million. The Company currently holds 2,722,473 shares as of March 31, 2021. Morgan Group Spin-off On October 31, 2019, the Company closed on a transaction whereby Morgan Group Holding Co., (“Morgan Group”) a company that trades in the over-the-counter market under the symbol “MGHL” and under common control of AC’s majority shareholder, acquired all of the Company’s interest in G.research, LLC, the Company’s former institutional research business, for 50,000,000 shares of Morgan Group common stock. In addition, immediately prior to the closing, 5.15 million Morgan Group shares were issued under a private placement for $515,000. Subsequent to the transaction and private placement, the Company had an 83.3% ownership interest in Morgan Group. The transaction was accounted for pursuant to ASC 805-50, Transactions Between Entities Under Common Control. For transactions between entities under common control, there is no change in basis in the net assets received and therefore they are recorded at their historical cost. On March 16, 2020, the Company announced that its Board of Directors approved the spin-off of Morgan Group to AC’s shareholders in which AC would distribute to its shareholders on a pro rata basis the 50,000,000 shares of Morgan Group that it owns. On May 5, 2020, the Morgan Group board approved a reverse stock split of the issued and outstanding shares of their common stock, par value $0.01 per share, in a ratio of 1‑for‑100 that was effective on June 10, 2020. Associated held 83.3% of the outstanding shares of Morgan Group through August 5, 2020. On August 5, 2020, Morgan Group shares held by the Company were distributed to the Company’s shareholders of record as of July 30, 2020. The historical financial results of Morgan Group have been reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented through March 31, 2020. Basis of Presentation The unaudited interim condensed consolidated financial statements of AC Group included herein have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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 GAAP in the United States for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of the Company 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 AC Group and its subsidiaries. All material intercompany transactions and balances 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, 2020. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported on the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Investment in Marketable Securities held in trust account Marketable securities of our consolidated SPAC, PMV, are held in short-term investments such as money market funds that invest primarily in U.S. Treasury Bills or directly in U.S. Treasury Bills. At December 31, 2020 such investments were accounted for as held to maturity. During the period ended March 31, 2021, those held to maturity investments matured and were invested in money market funds recorded at fair value. Recent Accounting Developments In June 2016, the FASB issued ASU 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326) In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue [Abstract] | |
Revenue | B. Revenue Refer to the Company’s audited consolidated financial statements included in our Annual Report on Form 10K for the year ended December 31, 2020 for the Company’s revenue recognition policy. The Company’s major revenue sources are as follows for the quarters ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Revenues Investment advisory and incentive fees Asset-based advisory fees $ 1,183 $ 1,820 Performance-based advisory fees 9 - Sub-advisory fees 1,033 880 2,225 2,700 Other Miscellaneous 100 262 100 262 Total $ 2,325 $ 2,962 |
Investments in Securities
Investments in Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments in Securities [Abstract] | |
Investments in Securities | C. Investments in Securities Investments in securities at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cost Fair Value Cost Fair Value Debt - Trading Securities: U.S. Treasury Bills $ 74,966 $ 75,000 $ 344,367 $ 344,453 Equity Securities: Common stocks 253,928 253,109 239,240 237,377 Mutual funds 529 1,329 546 1,294 Other investments 8,907 11,262 8,806 11,216 Total investments in securities $ 338,330 $ 340,700 $ 592,959 $ 594,340 Investments in marketable securities held in trust $ 175,074 $ 175,074 $ 175,040 $ 175,040 Securities sold, not yet purchased at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cost Fair Value Cost Fair Value Equity securities: Common stocks $ 14,903 $ 14,996 $ 14,369 $ 16,090 Other investments 1,570 1,706 1,209 1,481 Total securities sold, not yet purchased $ 16,473 $ 16,702 $ 15,578 $ 17,571 Investments in affiliated registered investment companies at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cost Fair Value Cost Fair Value Equity securities: Closed-end funds $ 76,420 $ 117,656 $ 76,462 $ 106,719 Mutual funds 48,427 66,473 48,395 63,886 Total investments in affiliated registered investment companies $ 124,847 $ 184,129 $ 124,857 $ 170,605 |
Investment Partnerships and Oth
Investment Partnerships and Other Entities | 3 Months Ended |
Mar. 31, 2021 | |
Investment Partnerships and Other Entities [Abstract] | |
Investment Partnerships and Other Entities | D. Investment Partnerships and Other Entities The Company is general partner or co-general partner of various affiliated entities whose underlying assets consist primarily of marketable securities (“Affiliated Entities”). We also had investments in unaffiliated partnerships, offshore funds and other entities of $27.7 million and $24.9 million at March 31, 2021, and December 31, 2020, respectively (“Unaffiliated Entities”). We evaluate each entity to determine its appropriate accounting treatment and disclosure. Certain of the Affiliated Entities, and none of the Unaffiliated Entities, are consolidated. Investments in partnerships that are not required to be consolidated are accounted for using the equity method and are included in investments in partnerships on consolidated statements of financial condition. This caption includes investments in Affiliated Entities and Unaffiliated Entities which the Company accounts for under the equity method of accounting. The Company had investments in Affiliated Entities totaling $105.8 million and $99.1 million at March 31, 2021 and December 31, 2020, respectively. The Company reflects the equity in earnings of these Affiliated Entities and Unaffiliated Entities as net gain/(loss) from investments on the consolidated statements of income. Capital may generally be redeemed from Affiliated Entities on a monthly basis upon adequate notice as determined in the sole discretion of each entity’s investment manager. Capital invested in Unaffiliated Entities may generally be redeemed at various intervals ranging from monthly to annually upon notice of 30 to 95 days. Certain Unaffiliated Entities and Affiliated Entities may require a minimum investment period before capital can be voluntarily redeemed (a “Lockup Period”). No investment in any Investment Partnership has an unexpired Lockup Period. The Company has no outstanding capital commitments to any Affiliated or Unaffiliated Entity. PMV Consumer Acquisition Corp. The Company has determined that PMV is a voting interest entity (VOE) and since the Sponsor has substantive control of PMV due to its ability to control the board of directors of PMV, the Sponsor consolidates the assets and liabilities of PMV and the results of its operations. The Company invested $4.0 million, or approximately 62% of the $6.48 million total Sponsor partnership commitment. The Sponsor is managed by Company executives. The Company has determined that the Sponsor is a variable interest entity (VIE) and that the Company is the primary beneficiary and therefore consolidates the assets and liabilities and results of operations of the Sponsor which includes PMV. However, neither AC nor PMV have a right to the benefits from nor does it bear the risks associated with the marketable securities held in trust assets held by PMV. Further, if the Company were to liquidate, the marketable securities held in trust assets would not be available to its general creditors, and as a result, the Company does not consider these assets available for the benefit of its investors. The registration statement for the PMV initial public offering was declared effective on September 21, 2020. On September 24, 2020, PMV consummated the initial public offering of 17,500,000 units (the “Units” and, with respect to the shares of common stock included in the Units Sold, the “Public Shares”), at $10.00 per Unit, generating gross proceeds of $175,000,000. Each Unit consists of one share of Class A common stock and one-half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment. Simultaneously with the closing of the initial public offering, PMV consummated the sale of 6,150,000 warrants (the “Private Warrants”) at a price of $1.00 per Private Warrant in a private placement to the Sponsor, generating gross proceeds of $6,150,000. AC invested $10 million in the Class A shares in PMV and the Sponsor invested $6.1 million in Private Warrants. Following the closing of the initial public offering on September 24, 2020, an amount of $175,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the initial public offering and the sale of the Private Warrants was placed in a trust account (the “Trust Account”) located in the United States, which will only be invested in U.S. U.S. Treasury Bills or funds that invest primarily in them. PMV will have until September 24, 2022 to complete a business combination. If PMV is unable to complete a business combination by September 24, 2022, PMV will cease all operations except for the purpose of winding up, and as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account. The deferred fee will be forfeited by the underwriters solely in the event that we fail to complete a business combination within the required time period, subject to the terms of the underwriting agreement. The following table reflects the net impact of the consolidated entities on the condensed consolidated statements of financial condition (in thousands): March 31, 2021 Prior to Consolidation Consolidated Entities As Reported Total assets $ 956,450 $ 214,816 $ 1,171,266 Liabilities and equity Total liabilities 40,704 19,746 60,450 Redeemable noncontrolling interests - 195,070 195,070 Total equity 915,746 - 915,746 Total liabilities and equity $ 956,450 $ 214,816 $ 1,171,266 December 31, 2020 Prior to Consolidation Consolidated Entities As Reported Total assets $ 947,807 $ 226,738 $ 1,174,545 Liabilities and equity Total liabilities 46,418 19,910 66,328 Redeemable noncontrolling interests - 206,828 206,828 Total equity 901,389 - 901,389 Total liabilities and equity $ 947,807 $ 226,738 $ 1,174,545 The following table reflects the net impact of the consolidated entities on the condensed consolidated statements of income (in thousands): Three Months Ended March 31, 2021 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 2,140 $ 185 $ 2,325 Operating loss (5,852 ) (513 ) (6,365 ) Total other income, net 30,056 626 30,682 Loss from continuing operations, net of taxes 18,614 113 18,727 Income attributable to noncontrolling interests - 172 172 Net income/(loss) $ 18,614 $ (59 ) $ 18,555 Three Months Ended March 31, 2020 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 2,318 $ 644 $ 2,962 Operating loss (1,086 ) 446 (640 ) Total other income, net (95,700 ) (4,391 ) (100,091 ) Loss from continuing operations, net of taxes (73,124 ) (3,945 ) (77,069 ) Loss from discontinued operations, net of taxes (231 ) - (231 ) Income attributable to noncontrolling interests - (3,945 ) (3,945 ) Net loss $ (73,355 ) $ - $ (73,355 ) Variable Interest Entities With respect to each consolidated VIE, its assets may only be used to satisfy its obligations. The investors and creditors of any consolidated VIE have no recourse to the Company’s general assets. In addition, the Company neither benefits from such VIE’s assets nor bears the related risk beyond its beneficial interest in the VIE. The following table presents the balances related to VIEs that are consolidated and included on the consolidated statements of financial condition as well as the Company’s net interest in these VIEs (in thousands): March 31, 2021 December 31, 2020 Cash and cash equivalents $ 1,952 $ 1,925 Investments in securities (1) 15,870 20,739 Receivable from brokers 467 2,784 Investments in partnerships and affiliates - 376 Other assets - 7,105 Accrued expenses and other liabilities (71 ) (138 ) Nonredeemable noncontrolling interests (2,451 ) (2,451 ) Redeemable noncontrolling interests (559 ) (12,661 ) AC Group’s net interests in consolidated VIEs $ 15,208 $ 17,679 (1) Includes $6.15 million in private placement warrants eliminated in consolidation with PMV Voting Interest Entities The following table presents the balances related to PMV and another investment partnership that are consolidated as VOE’s and included on the consolidated statements of financial condition as well as the Company’s net interest in these VOE’s (in thousands): March 31, 2021 December 31, 2020 Cash and cash equivalents $ 4,225 $ 5,558 Investments in securities 92,405 93,780 Receivable from brokers 19,232 15,230 Investments in marketable securities held in trust 175,074 175,040 Other assets 261 322 Securities sold, not yet purchased (5,385 ) (8,057 ) Accrued expenses and other liabilities (14,256 ) (11,840 ) Redeemable noncontrolling interests (194,511 ) (194,167 ) AC Group’s net interests in consolidated VOEs $ 77,045 $ 75,866 Equity Method Investments The Company’s equity method investments include investments in partnerships and offshore funds. These equity method investments are not consolidated but on an aggregate basis exceed 10% of the Company’s consolidated total assets or income. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value [Abstract] | |
Fair Value | E. Fair Value The following tables present information about the Company’s assets and liabilities by major category measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The following tables present assets and liabilities measured at fair value on a recurring basis as of the dates specified (in thousands): March 31, 2021 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 276,647 $ - $ - $ 276,647 Investments in securities (including GBL stock): Trading - U.S. Treasury Bills 75,000 - - 75,000 Common stocks 247,352 5,706 51 253,109 Mutual funds 1,329 - - 1,329 Other 6,537 622 4,103 11,262 Total investments in securities 330,218 6,328 4,154 340,700 Investments in affiliated registered investment companies: Closed-end funds 115,656 - 2,000 117,656 Mutual funds 66,473 - - 66,473 Total investments in affiliated registered investment companies 182,129 - 2,000 184,129 Total investments held at fair value 512,347 6,328 6,154 524,829 Total assets at fair value $ 788,994 $ 6,328 $ 6,154 $ 801,476 Liabilities Common stocks $ 14,996 $ - $ - $ 14,996 Other 953 753 - 1,706 Securities sold, not yet purchased $ 15,949 $ 753 $ - $ 16,702 December 31, 2020 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 34,010 $ - $ - $ 34,010 Investments in securities (including GBL stock): Trading - U.S. Treasury Bills 344,453 - - 344,453 Common stocks 231,901 5,440 36 237,377 Mutual funds 1,294 - - 1,294 Other 6,133 621 4,462 11,216 Total investments in securities 583,781 6,061 4,498 594,340 Investments in affiliated registered investment companies: Closed-end funds 104,719 - 2,000 106,719 Mutual funds 63,886 - - 63,886 Total investments in affiliated registered investment companies 168,605 - 2,000 170,605 Total investments held at fair value 752,386 6,061 6,498 764,945 Total assets at fair value $ 786,396 $ 6,061 $ 6,498 $ 798,955 Liabilities Common stocks $ 16,090 $ - $ - $ 16,090 Other 543 938 - 1,481 Securities sold, not yet purchased $ 16,633 $ 938 $ - $ 17,571 The following table presents additional information about assets by major category measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Three months ended March 31, 2021 Three months ended March 31, 2020 Common Other Total Common Stocks Other Total Beginning balance $ 36 $ 6,462 $ 6,498 $ 89 $ 4,134 $ 4,223 Total gains/(losses) 15 (45 ) (30 ) (53 ) (130 ) (183 ) Purchases - 44 44 - - - Sales - - - - - - Transfers - (358 ) (358 ) - (109 ) (109 ) Ending balance $ 51 $ 6,103 $ 6,154 $ 36 $ 3,895 $ 3,931 Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date $ 15 $ (45 ) $ (30 ) $ (53 ) $ (130 ) $ (183 ) Total realized and unrealized gains and losses for level 3 assets are reported in net gain/(loss) from investments in the consolidated statements of income. During the three months ended March 31, 2021, the Company transferred investments with a value of approximately $358,000 from Level 3 to Level 1 due to increased availability of market price quotations. For the three months ended March 31, 2020, the Company transferred an investment with a value of approximately $109,000 from Level 3 to Level 1 due to increased availability of market price quotations. At March 31, 2021 and December 31, 2020, marketable securities held in the trust account through PMV were comprised of a money market fund that invests in primarily in U.S. Treasury Bills and directly in U.S Treasury Bills which mature in less than one year with an amortized cost and fair value of approximately $175 million, respectively. Such investments are categorized as Level 1. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | F. Income Taxes The effective tax rate (“ETR”) for the three months ended March 31, 2021 and March 31, 2020 was 23.2% and 24.4%, respectively. The ETR in the first quarter of 2021 differs from the standard corporate tax rate of 21% primarily due (a) state and local taxes (net of federal benefit), (b) deferred tax asset valuation allowances related to the carryforward of charitable contributions and the (c) the deductibility of officers compensation. The ETR in the first quarter of 2020 differs from the standard corporate tax rate of 21% primarily due to (a) state and local taxes (net of federal benefit), the benefit of (b) the donation of appreciated securities, and (c) the dividends received deduction. The Company believes that it is more-likely-than-not that the benefit from a portion of the shareholder-designated charitable contribution carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $1.6 million and $1.8 million as of March 31, 2021 and December 31, 2020, respectively, on the deferred tax assets related to these charitable contribution carryforwards. The Company records penalties and interest related to tax uncertainties in income taxes. These amounts are included in accrued expenses and other liabilities on the consolidated statements of financial condition. The Company remains subject to income tax examination by the IRS for the years 2017 through 2019 and state examinations for years after 2011. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per Share [Abstract] | |
Earnings per Share | G. Earnings per Share Basic earnings per share is computed by dividing net income/(loss) attributable to our shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net income/(loss) attributable to our shareholders by the weighted average number of shares outstanding during the period. The computations of basic and diluted net income/(loss) per share are as follows (in thousands, except per share data): Three Months Ended March 31, (In thousands, except per share amounts) 2021 2020 Income/(loss) from continuing operations $ 18,727 $ (77,069 ) Less: Income/(loss) attributable to noncontrolling interests 172 (3,945 ) Net income/(loss) from continuing operations attributable to Associated Capital Group, Inc.’s shareholders 18,555 (73,124 ) Income/(loss) from discontinued operations - (231 ) Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ 18,555 $ (73,355 ) Weighted average number of shares of Common Stock outstanding - basic 22,222 22,441 Weighted average number of shares of Common Stock outstanding - diluted 22,222 22,441 Basic Net income/(loss) from continuing operations $ 0.83 $ (3.26 ) Net income/(loss) from discontinued operations - (0.01 ) Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ 0.83 $ (3.27 ) Diluted: Net income/(loss) from continuing operations $ 0.83 $ (3.26 ) Net income/(loss) from discontinued operations - (0.01 ) Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ 0.83 $ (3.27 ) |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Equity | H. Equity Voting Rights The holders of Class A Common stock (“Class A Stock”) and Class B Common stock (“Class B Stock”) have identical rights except that 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. Holders of each share class, however, are not eligible to vote on matters relating exclusively to the other share class. Stock Award and Incentive Plan In August and December 2018, the Company’s Board of Directors approved the grant of 172,800 shares of Phantom Restricted Stock awards (“Phantom RSAs”). Under the terms of the grants, which were effective August 8 and December 31 of 2018, the Phantom RSAs vest 30% and 70% after three and five years, respectively. The Phantom RSAs will be settled by a cash payment, net of applicable withholding tax, on the vesting dates. In addition, an amount equivalent to the cumulative dividends declared on shares of the Company’s Class A common stock during the vesting period will be paid to participants on vesting. The Phantom RSAs are treated as a liability because cash settlement is required and compensation will be recognized over the vesting period. In determining the compensation expense to be recognized each period, the Company will re-measure the fair value of the liability at each reporting date taking into account the remaining vesting period attributable to each award and the current market value of the Company’s Class A stock. In making these determinations, the Company will consider the impact of Phantom RSAs that have been forfeited prior to vesting (e.g., due to an employee termination). The Company has elected to consider forfeitures as they occur. Based on the closing price of the Company’s Class A Common Stock on March 31, 2021 and December 31, 2020, the total liability recorded by the Company in compensation payable as of March 31, 2021 and December 31, 2020, with respect to the Phantom RSAs was $2.2 million and $1.8 million, respectively. For the three month periods ended March 31, 2021 and 2020, the Company recorded approximately $0.4 million and ($0.8) million in stock-based compensation expense, respectively. This expense is included in compensation expense in the consolidated statements of income. As of March 31, 2021, there were RSAs outstanding. The unrecognized compensation expense related to these was $3.4 million which is expected to be recognized over a weighted-average period of 2.3 years. Stock Repurchase Program In December 2015, the Board of Directors established a stock repurchase program authorizing the Company to repurchase up to 500,000 shares. On February 7, 2017, the Board of Directors reset the available number of shares to be purchased under the stock repurchase program to 500,000 shares. On August 3, 2017 and May 8, 2018, the Board of Directors authorized the repurchase of an additional 1 million and 500,000 shares, respectively. Our stock repurchase program is not subject to an expiration date. For the three month period ended March 31, 2021 March 31, As of March 31, 2021, the maximum number of shares that may be purchased under the plans or programs are 774,015. Dividends There were no dividends declared during each of the three month periods ended March 31, 2021 and 2020. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill [Abstract] | |
Goodwill | I. Goodwill At March 31, 2021, goodwill on the condensed consolidated statements of financial condition includes $3.4 million of goodwill related to GCIA. The Company assesses the recoverability of goodwill at least annually, or more often should events warrant, using a qualitative assessment of whether it is more likely than not that an impairment has occurred to determine if a quantitative analysis is required. There were no indicators of impairment for the three months ended March 31, 2021 or March 31, 2020, and as such there was no impairment analysis performed or charge recorded. |
Guarantees, Contingencies and C
Guarantees, Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2021 | |
Guarantees, Contingencies and Commitments [Abstract] | |
Guarantees, Contingencies and Commitments | J. Guarantees, Contingencies and Commitments 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. We are 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 consolidated financial statements include the necessary provisions for losses, if any, that the Company believes are probable and estimable. Furthermore, the Company evaluates whether losses exist which may be reasonably possible and will, if material, make the necessary disclosures. Management believes, however, that such amounts, both those that are probable and those that are reasonably possible, are not material to the Company’s financial condition, results of operations or cash flows at March 31, 2021. The Company has also entered into arrangements with various other third parties, many of which provide for indemnification of the third parties against losses, costs, claims and liabilities arising from the performance of obligations under the agreements. The Company has had no claims or payments pursuant to these or prior agreements and believes the likelihood of a claim being made is remote, and, therefore, no accrual has been made on the consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | K. Discontinued Operations As a result of the Morgan Group spin-off on August 5, 2020, the results of its operations have been classified in the consolidated statements of income as discontinued operations for all periods presented. There was no gain or loss on the spin-off for the Company, and it was a tax-free spin-off to AC’s shareholders. Other than a transition services agreement, Associated Capital does not have any significant continuing involvement in the operations of Morgan Group after the spin-off, and Associated Capital will not have the ability to influence operating or financial policies of Morgan Group. All stockholders received 0.022356 shares of Morgan Group stock for each share of AC stock that they held on the record date for the distribution. Operating results for the period from January 1, 2020 through March 31, 2020, were as follows: Three Months Ended March 31, 2020 Revenues Institutional research services $ 1,374 Other 33 Total revenues 1,407 Expenses Compensation 1,143 Other operating expenses 719 Total expenses 1,862 Operating loss (455 ) Other income (expense) Net loss from investments (1 ) Interest and dividend income 36 Total other income, net 35 Income/(loss) from discontinued operations before income taxes (420 ) Income tax provision/(benefit) (137 ) Income/(loss) from discontinued operations, net of taxes (283 ) Net income/(loss) attributable to noncontrolling interests (52 ) Net income/(loss) attributable to AC shareholders discontinued operations, net of taxes $ (231 ) The assets and liabilities of Morgan Group have been classified in the consolidated statement of financial condition as of March 31, 2020 as assets and liabilities of discontinued operations and consist of the following: March 31, 2020 Cash and cash equivalents $ 5,669 Investments in equity securities 2 Receivable from brokers 244 Receivable from affiliates 353 Deferred tax assets 249 Other assets 133 Total assets of discontinued operations 6,650 Securities sold short, not yet purchased 1 Compensation payable 339 Accrued expenses and other liabilities 555 Total liabilities of discontinued operations 895 Noncontrolling interests from discontinued operations 951 Net assets of discontinued operations attributable to AC shareholders $ 4,804 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | L. Subsequent Events During the period from April 1, 2021 to May 6, 2021, the Company repurchased 40,229 shares at an average price of $34.64 per share. On May 5, 2021, AC’s board of directors declared a semi-annual dividend of $0.10 per share, which is payable on June 29, 2021 to class A and class B shareholders of record on June 15, 2021. |
Organization (Policies)
Organization (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization [Abstract] | |
Organization | Unless we have indicated otherwise, or the context otherwise requires, references in this report to “Associated Capital Group, Inc.,” “AC Group,” “the Company,” “AC,” “we,” “us” and “our” or similar terms are to Associated Capital Group, Inc., its predecessors and its subsidiaries. We are a Delaware corporation that provides alternative investment management, and we derive investment income/(loss) from proprietary investment of cash and other assets in our operating business. GCIA and its wholly-owned subsidiary, Gabelli & Partners, LLC (“Gabelli & Partners”), collectively serve as general partners or investment managers to investment funds including limited partnerships and offshore companies (collectively, “Investment Partnerships”), and separate accounts. We primarily manage assets in equity event-driven value strategies, across a range of risk and event arbitrage portfolios. The businesses earn management and incentive fees from their advisory activities. Management fees are largely based on a percentage of assets under management. Incentive fees are based on the percentage of the investment returns of certain clients’ portfolios. GCIA is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). In April 2018, the Company sponsored a €110 million initial public offering of its first special purpose acquisition corporation, the Gabelli Value for Italy S.p.a., an Italian company listed on the London Stock Exchange’s Borsa Italiana AIM segment under the symbol “VALU”. VALU was created to acquire a small-to medium-sized Italian franchise business with the potential for international expansion, particularly in the United States. Gabelli Value for Italy S.p.a was subsequently liquidated on July 8, 2020 at the apex of the pandemic in Italy. |
Acquisition and Spin-offs | PMV Consumer Acquisition Corp. On September 22, 2020, Associated Capital announced the $175 million initial public offering of its special purpose acquisition corporation, PMV Consumer Acquisition Corp. (NYSE:PMVC). PMV Consumer Acquisition Corp. (“PMV”) was created to pursue an initial business combination following the consumer globally with companies having an enterprise valuation in the range of $200 million to $3.5 billion. PMV Consumer Acquisition Holding Company, LLC (“Sponsor”) was created to assist PMV in sourcing, analyzing and consummating acquisition opportunities for that initial business combination. The Sponsor and PMV have been consolidated in the financial statements of AC beginning in September 2020 because AC has a controlling financial interest in these entities. This resulted in the consolidation $177.4 million of assets, $6.3 million of liabilities, $154.5 million of redeemable noncontrolling interests, $2.4 million of noncontrolling interests relating to PMV and the Sponsor as of March 31, 2021. In addition, there are several other entities that are consolidated within the financial statements. The details on the impact of consolidating these entities on the consolidated financial statements can be seen in Note D. Investment Partnerships and Other Entities See Note D for a further discussion of PMV Consumer Acquisition Corp. as well as its registration statement and Form 10K as of December 31, 2020 both located on the U.S. Securities and Exchange Commission website https://www.sec.gov/edgar/searchedgar/companysearch.html AC Spin-off On November 30, 2015, GAMCO Investors, Inc. (“GAMCO” or “GBL”) distributed all the outstanding shares of each class of AC common stock on a pro rata one-for-one basis to the holders of each class of GAMCO’s common stock (the “Spin-off”). As part of the Spin-off, AC received 4,393,055 shares of GAMCO Class A common stock for $150 million. The Company currently holds 2,722,473 shares as of March 31, 2021. Morgan Group Spin-off On October 31, 2019, the Company closed on a transaction whereby Morgan Group Holding Co., (“Morgan Group”) a company that trades in the over-the-counter market under the symbol “MGHL” and under common control of AC’s majority shareholder, acquired all of the Company’s interest in G.research, LLC, the Company’s former institutional research business, for 50,000,000 shares of Morgan Group common stock. In addition, immediately prior to the closing, 5.15 million Morgan Group shares were issued under a private placement for $515,000. Subsequent to the transaction and private placement, the Company had an 83.3% ownership interest in Morgan Group. The transaction was accounted for pursuant to ASC 805-50, Transactions Between Entities Under Common Control. For transactions between entities under common control, there is no change in basis in the net assets received and therefore they are recorded at their historical cost. On March 16, 2020, the Company announced that its Board of Directors approved the spin-off of Morgan Group to AC’s shareholders in which AC would distribute to its shareholders on a pro rata basis the 50,000,000 shares of Morgan Group that it owns. On May 5, 2020, the Morgan Group board approved a reverse stock split of the issued and outstanding shares of their common stock, par value $0.01 per share, in a ratio of 1‑for‑100 that was effective on June 10, 2020. Associated held 83.3% of the outstanding shares of Morgan Group through August 5, 2020. On August 5, 2020, Morgan Group shares held by the Company were distributed to the Company’s shareholders of record as of July 30, 2020. The historical financial results of Morgan Group have been reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented through March 31, 2020. |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements of AC Group included herein have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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 GAAP in the United States for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of the Company 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 AC Group and its subsidiaries. All material intercompany transactions and balances 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, 2020. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported on the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Investment in Marketable Securities held in trust account | Investment in Marketable Securities held in trust account Marketable securities of our consolidated SPAC, PMV, are held in short-term investments such as money market funds that invest primarily in U.S. Treasury Bills or directly in U.S. Treasury Bills. At December 31, 2020 such investments were accounted for as held to maturity. During the period ended March 31, 2021, those held to maturity investments matured and were invested in money market funds recorded at fair value. |
Recent Accounting Developments | Recent Accounting Developments In June 2016, the FASB issued ASU 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326) In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue [Abstract] | |
Revenues by Type | The Company’s major revenue sources are as follows for the quarters ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Revenues Investment advisory and incentive fees Asset-based advisory fees $ 1,183 $ 1,820 Performance-based advisory fees 9 - Sub-advisory fees 1,033 880 2,225 2,700 Other Miscellaneous 100 262 100 262 Total $ 2,325 $ 2,962 |
Investments in Securities (Tabl
Investments in Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments in Securities [Abstract] | |
Investments in Securities | Investments in securities at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cost Fair Value Cost Fair Value Debt - Trading Securities: U.S. Treasury Bills $ 74,966 $ 75,000 $ 344,367 $ 344,453 Equity Securities: Common stocks 253,928 253,109 239,240 237,377 Mutual funds 529 1,329 546 1,294 Other investments 8,907 11,262 8,806 11,216 Total investments in securities $ 338,330 $ 340,700 $ 592,959 $ 594,340 Investments in marketable securities held in trust $ 175,074 $ 175,074 $ 175,040 $ 175,040 |
Securities Sold, Not Yet Purchased | Securities sold, not yet purchased at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cost Fair Value Cost Fair Value Equity securities: Common stocks $ 14,903 $ 14,996 $ 14,369 $ 16,090 Other investments 1,570 1,706 1,209 1,481 Total securities sold, not yet purchased $ 16,473 $ 16,702 $ 15,578 $ 17,571 |
Investments in Affiliated Registered Investment Companies | Investments in affiliated registered investment companies at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cost Fair Value Cost Fair Value Equity securities: Closed-end funds $ 76,420 $ 117,656 $ 76,462 $ 106,719 Mutual funds 48,427 66,473 48,395 63,886 Total investments in affiliated registered investment companies $ 124,847 $ 184,129 $ 124,857 $ 170,605 |
Investment Partnerships and O_2
Investment Partnerships and Other Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investment Partnerships and Other Entities [Abstract] | |
Condensed Consolidated Statements of Financial Condition by Entity Consolidated | The following table reflects the net impact of the consolidated entities on the condensed consolidated statements of financial condition (in thousands): March 31, 2021 Prior to Consolidation Consolidated Entities As Reported Total assets $ 956,450 $ 214,816 $ 1,171,266 Liabilities and equity Total liabilities 40,704 19,746 60,450 Redeemable noncontrolling interests - 195,070 195,070 Total equity 915,746 - 915,746 Total liabilities and equity $ 956,450 $ 214,816 $ 1,171,266 December 31, 2020 Prior to Consolidation Consolidated Entities As Reported Total assets $ 947,807 $ 226,738 $ 1,174,545 Liabilities and equity Total liabilities 46,418 19,910 66,328 Redeemable noncontrolling interests - 206,828 206,828 Total equity 901,389 - 901,389 Total liabilities and equity $ 947,807 $ 226,738 $ 1,174,545 |
Condensed Consolidated Statements of Income by Entity Consolidated | The following table reflects the net impact of the consolidated entities on the condensed consolidated statements of income (in thousands): Three Months Ended March 31, 2021 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 2,140 $ 185 $ 2,325 Operating loss (5,852 ) (513 ) (6,365 ) Total other income, net 30,056 626 30,682 Loss from continuing operations, net of taxes 18,614 113 18,727 Income attributable to noncontrolling interests - 172 172 Net income/(loss) $ 18,614 $ (59 ) $ 18,555 Three Months Ended March 31, 2020 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 2,318 $ 644 $ 2,962 Operating loss (1,086 ) 446 (640 ) Total other income, net (95,700 ) (4,391 ) (100,091 ) Loss from continuing operations, net of taxes (73,124 ) (3,945 ) (77,069 ) Loss from discontinued operations, net of taxes (231 ) - (231 ) Income attributable to noncontrolling interests - (3,945 ) (3,945 ) Net loss $ (73,355 ) $ - $ (73,355 ) |
Net Interests in Consolidated VIE's | The following table presents the balances related to VIEs that are consolidated and included on the consolidated statements of financial condition as well as the Company’s net interest in these VIEs (in thousands): March 31, 2021 December 31, 2020 Cash and cash equivalents $ 1,952 $ 1,925 Investments in securities (1) 15,870 20,739 Receivable from brokers 467 2,784 Investments in partnerships and affiliates - 376 Other assets - 7,105 Accrued expenses and other liabilities (71 ) (138 ) Nonredeemable noncontrolling interests (2,451 ) (2,451 ) Redeemable noncontrolling interests (559 ) (12,661 ) AC Group’s net interests in consolidated VIEs $ 15,208 $ 17,679 (1) Includes $6.15 million in private placement warrants eliminated in consolidation with PMV |
Net Interests in Consolidated VOE's | The following table presents the balances related to PMV and another investment partnership that are consolidated as VOE’s and included on the consolidated statements of financial condition as well as the Company’s net interest in these VOE’s (in thousands): March 31, 2021 December 31, 2020 Cash and cash equivalents $ 4,225 $ 5,558 Investments in securities 92,405 93,780 Receivable from brokers 19,232 15,230 Investments in marketable securities held in trust 175,074 175,040 Other assets 261 322 Securities sold, not yet purchased (5,385 ) (8,057 ) Accrued expenses and other liabilities (14,256 ) (11,840 ) Redeemable noncontrolling interests (194,511 ) (194,167 ) AC Group’s net interests in consolidated VOEs $ 77,045 $ 75,866 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s assets and liabilities by major category measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The following tables present assets and liabilities measured at fair value on a recurring basis as of the dates specified (in thousands): March 31, 2021 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 276,647 $ - $ - $ 276,647 Investments in securities (including GBL stock): Trading - U.S. Treasury Bills 75,000 - - 75,000 Common stocks 247,352 5,706 51 253,109 Mutual funds 1,329 - - 1,329 Other 6,537 622 4,103 11,262 Total investments in securities 330,218 6,328 4,154 340,700 Investments in affiliated registered investment companies: Closed-end funds 115,656 - 2,000 117,656 Mutual funds 66,473 - - 66,473 Total investments in affiliated registered investment companies 182,129 - 2,000 184,129 Total investments held at fair value 512,347 6,328 6,154 524,829 Total assets at fair value $ 788,994 $ 6,328 $ 6,154 $ 801,476 Liabilities Common stocks $ 14,996 $ - $ - $ 14,996 Other 953 753 - 1,706 Securities sold, not yet purchased $ 15,949 $ 753 $ - $ 16,702 December 31, 2020 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 34,010 $ - $ - $ 34,010 Investments in securities (including GBL stock): Trading - U.S. Treasury Bills 344,453 - - 344,453 Common stocks 231,901 5,440 36 237,377 Mutual funds 1,294 - - 1,294 Other 6,133 621 4,462 11,216 Total investments in securities 583,781 6,061 4,498 594,340 Investments in affiliated registered investment companies: Closed-end funds 104,719 - 2,000 106,719 Mutual funds 63,886 - - 63,886 Total investments in affiliated registered investment companies 168,605 - 2,000 170,605 Total investments held at fair value 752,386 6,061 6,498 764,945 Total assets at fair value $ 786,396 $ 6,061 $ 6,498 $ 798,955 Liabilities Common stocks $ 16,090 $ - $ - $ 16,090 Other 543 938 - 1,481 Securities sold, not yet purchased $ 16,633 $ 938 $ - $ 17,571 |
Changes in Level 3 Assets and Liabilities | The following table presents additional information about assets by major category measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Three months ended March 31, 2021 Three months ended March 31, 2020 Common Other Total Common Stocks Other Total Beginning balance $ 36 $ 6,462 $ 6,498 $ 89 $ 4,134 $ 4,223 Total gains/(losses) 15 (45 ) (30 ) (53 ) (130 ) (183 ) Purchases - 44 44 - - - Sales - - - - - - Transfers - (358 ) (358 ) - (109 ) (109 ) Ending balance $ 51 $ 6,103 $ 6,154 $ 36 $ 3,895 $ 3,931 Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date $ 15 $ (45 ) $ (30 ) $ (53 ) $ (130 ) $ (183 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per Share [Abstract] | |
Computations of Basic and Diluted Net Income (Loss) Per Share | The computations of basic and diluted net income/(loss) per share are as follows (in thousands, except per share data): Three Months Ended March 31, (In thousands, except per share amounts) 2021 2020 Income/(loss) from continuing operations $ 18,727 $ (77,069 ) Less: Income/(loss) attributable to noncontrolling interests 172 (3,945 ) Net income/(loss) from continuing operations attributable to Associated Capital Group, Inc.’s shareholders 18,555 (73,124 ) Income/(loss) from discontinued operations - (231 ) Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ 18,555 $ (73,355 ) Weighted average number of shares of Common Stock outstanding - basic 22,222 22,441 Weighted average number of shares of Common Stock outstanding - diluted 22,222 22,441 Basic Net income/(loss) from continuing operations $ 0.83 $ (3.26 ) Net income/(loss) from discontinued operations - (0.01 ) Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ 0.83 $ (3.27 ) Diluted: Net income/(loss) from continuing operations $ 0.83 $ (3.26 ) Net income/(loss) from discontinued operations - (0.01 ) Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ 0.83 $ (3.27 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Operating results for the period from January 1, 2020 through March 31, 2020, were as follows: Three Months Ended March 31, 2020 Revenues Institutional research services $ 1,374 Other 33 Total revenues 1,407 Expenses Compensation 1,143 Other operating expenses 719 Total expenses 1,862 Operating loss (455 ) Other income (expense) Net loss from investments (1 ) Interest and dividend income 36 Total other income, net 35 Income/(loss) from discontinued operations before income taxes (420 ) Income tax provision/(benefit) (137 ) Income/(loss) from discontinued operations, net of taxes (283 ) Net income/(loss) attributable to noncontrolling interests (52 ) Net income/(loss) attributable to AC shareholders discontinued operations, net of taxes $ (231 ) The assets and liabilities of Morgan Group have been classified in the consolidated statement of financial condition as of March 31, 2020 as assets and liabilities of discontinued operations and consist of the following: March 31, 2020 Cash and cash equivalents $ 5,669 Investments in equity securities 2 Receivable from brokers 244 Receivable from affiliates 353 Deferred tax assets 249 Other assets 133 Total assets of discontinued operations 6,650 Securities sold short, not yet purchased 1 Compensation payable 339 Accrued expenses and other liabilities 555 Total liabilities of discontinued operations 895 Noncontrolling interests from discontinued operations 951 Net assets of discontinued operations attributable to AC shareholders $ 4,804 |
Organization (Details)
Organization (Details) $ / shares in Units, € in Millions | Sep. 22, 2020USD ($) | Jul. 30, 2020shares | May 05, 2020$ / shares | Oct. 31, 2019USD ($)shares | Nov. 30, 2015USD ($)shares | Apr. 30, 2018EUR (€) | Mar. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Aug. 05, 2020 | Mar. 16, 2020shares |
The Spin-off and Related Transactions [Abstract] | ||||||||||
Number of AC shares issued for each GAMCO shares in connection with spin-off (in shares) | shares | 1 | |||||||||
Acquisition [Abstract] | ||||||||||
Number of shares received by each shareholder on the record date (in shares) | shares | 0.022356 | |||||||||
Total assets | $ 1,171,266,000 | $ 1,174,545,000 | ||||||||
Liabilities | 60,450,000 | 66,328,000 | ||||||||
Redeemable noncontrolling interests | 195,070,000 | 206,828,000 | ||||||||
Noncontrolling interest | 2,451,000 | $ 2,451,000 | ||||||||
PMV Consumer Acquisition Corp. [Member] | ||||||||||
The Spin-off and Related Transactions [Abstract] | ||||||||||
Proceeds from initial public offering for capital amount | $ 175,000,000 | |||||||||
Acquisition [Abstract] | ||||||||||
Total assets | 177,400,000 | |||||||||
Liabilities | 6,300,000 | |||||||||
Redeemable noncontrolling interests | 154,500,000 | |||||||||
Noncontrolling interest | $ 2,400,000 | |||||||||
PMV Consumer Acquisition Corp. [Member] | Minimum [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Enterprise valuation amount | 200,000,000 | |||||||||
PMV Consumer Acquisition Corp. [Member] | Maximum [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Enterprise valuation amount | $ 3,500,000,000 | |||||||||
Class A [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Morgan Group Holding, Co. [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Ownership interest | 83.30% | 83.30% | ||||||||
Number of shares of acquiree stock to be distributed to shareholders upon spin-off (in shares) | shares | 50,000,000 | |||||||||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||
Reverse stock split ratio | 0.01 | |||||||||
Morgan Group Holding, Co. [Member] | G.research LLC [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Stock acquired (in shares) | shares | 50,000,000 | |||||||||
Morgan Group Holding, Co. [Member] | Private Placement [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Number of shares issued (in shares) | shares | 5,150,000 | |||||||||
Values of shares issued | $ 515,000 | |||||||||
Gabelli Value for Italy S.p.a. [Member] | ||||||||||
The Spin-off and Related Transactions [Abstract] | ||||||||||
Proceeds from initial public offering for capital amount | € | € 110 | |||||||||
GAMCO [Member] | ||||||||||
The Spin-off and Related Transactions [Abstract] | ||||||||||
Number of GAMCO shares exchanged for each AC shares in connection with spin-off (in shares) | shares | 1 | |||||||||
GAMCO [Member] | Class A [Member] | ||||||||||
The Spin-off and Related Transactions [Abstract] | ||||||||||
Number of shares of common stock acquired (in shares) | shares | 4,393,055 | |||||||||
Number of shares of common stock held (in shares) | shares | 2,722,473 | |||||||||
GAMCO [Member] | Morgan Group Holding, Co. [Member] | Class A [Member] | ||||||||||
The Spin-off and Related Transactions [Abstract] | ||||||||||
Value of common stock acquired (in shares) | $ 150,000,000 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues by type [Abstract] | ||
Revenues | $ 2,325 | $ 2,962 |
Investment Advisory and Incentive Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 2,225 | 2,700 |
Asset-Based Advisory Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 1,183 | 1,820 |
Performance-Based Advisory Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 9 | 0 |
Sub-Advisory Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 1,033 | 880 |
Other [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 100 | 262 |
Miscellaneous [Member] | ||
Revenues by type [Abstract] | ||
Revenues | $ 100 | $ 262 |
Investments in Securities, Inve
Investments in Securities, Investment in Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investments in securities [Abstract] | ||
Fair value | $ 75,000 | $ 344,453 |
Fair value | 265,700 | 249,887 |
Total investment securities, cost | 338,330 | 592,959 |
Total investment securities, fair value | 340,700 | 594,340 |
Investments in marketable securities held in trust, cost | 175,074 | 175,040 |
Investments in marketable securities held in trust, fair value | 175,074 | 175,040 |
US Treasury Bills [Member] | ||
Investments in securities [Abstract] | ||
Cost | 74,966 | 344,367 |
Fair value | 75,000 | 344,453 |
Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Cost | 253,928 | 239,240 |
Fair value | 253,109 | 237,377 |
Mutual Funds [Member] | ||
Investments in securities [Abstract] | ||
Cost | 529 | 546 |
Fair value | 1,329 | 1,294 |
Other Investments [Member] | ||
Investments in securities [Abstract] | ||
Cost | 8,907 | 8,806 |
Fair value | $ 11,262 | $ 11,216 |
Investments in Securities, Secu
Investments in Securities, Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Equity securities [Abstract] | ||
Cost | $ 16,473 | $ 15,578 |
Fair value | 16,702 | 17,571 |
Common Stocks [Member] | ||
Equity securities [Abstract] | ||
Cost | 14,903 | 14,369 |
Fair value | 14,996 | 16,090 |
Other Investments [Member] | ||
Equity securities [Abstract] | ||
Cost | 1,570 | 1,209 |
Fair value | $ 1,706 | $ 1,481 |
Investments in Securities, In_2
Investments in Securities, Investment in Affiliated Registered Investment Companies (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | $ 124,847 | $ 124,857 |
Fair value | 184,129 | 170,605 |
Closed-end Funds [Member] | ||
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | 76,420 | 76,462 |
Fair value | 117,656 | 106,719 |
Mutual Funds [Member] | ||
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | 48,427 | 48,395 |
Fair value | $ 66,473 | $ 63,886 |
Investment Partnerships and O_3
Investment Partnerships and Other Entities, Breakdown of Consolidated Entities and Investments in Partnerships Line by Accounting Method (Details) - USD ($) | Sep. 24, 2020 | Sep. 22, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Investments In Affiliated and Unaffiliated Entities [Abstract] | ||||
Investments in unaffiliated entities | $ 27,700,000 | $ 24,900,000 | ||
Investments in affiliated entities | 105,800,000 | $ 99,100,000 | ||
Acquisition [Abstract] | ||||
Direct Investment in Sponsor | $ 4,000,000 | |||
Sponsor partnership investment percentage | 62.00% | |||
Sponsor partnership commitment amount | $ 6,480,000 | |||
Maximum [Member] | ||||
Acquisition [Abstract] | ||||
Number of business days to cease all operations except for the purposes of winding up | 10 days | |||
Initial Public Offering [Member] [Member] | Common Stock [Member] | Class A [Member] | ||||
Acquisition [Abstract] | ||||
Number of securities to be called by each unit (in shares) | 1 | |||
Number of securities called by each warrant (in shares) | 1 | |||
Initial Public Offering [Member] [Member] | Public Warrant [Member] | ||||
Acquisition [Abstract] | ||||
Number of securities to be called by each unit (in shares) | 0.5 | |||
Warrants exercise price (In dollars per share) | $ 11.50 | |||
Unaffiliated [Member] | Minimum [Member] | ||||
Acquisition [Abstract] | ||||
Notice period for redeeming investments | 30 days | |||
Unaffiliated [Member] | Maximum [Member] | ||||
Acquisition [Abstract] | ||||
Notice period for redeeming investments | 95 days | |||
PMV Consumer Acquisition Corp. [Member] | ||||
Acquisition [Abstract] | ||||
Proceeds from initial public offering | $ 175,000,000 | |||
PMV Consumer Acquisition Corp. [Member] | Class A [Member] | ||||
Acquisition [Abstract] | ||||
Common stock invested | $ 10,000,000 | |||
PMV Consumer Acquisition Corp. [Member] | Private Warrants [Member] | ||||
Acquisition [Abstract] | ||||
Value of warrants owed by Sponsor | $ 6,100,000 | |||
PMV Consumer Acquisition Corp. [Member] | Initial Public Offering [Member] [Member] | Common Stock [Member] | ||||
Acquisition [Abstract] | ||||
Number of unit issued (in shares) | 17,500,000 | |||
Security price (in dollars per share) | $ 10 | |||
Proceeds from initial public offering | $ 175,000,000 | |||
PMV Consumer Acquisition Corp. [Member] | Private Placement [Member] | Private Warrants [Member] | ||||
Acquisition [Abstract] | ||||
Warrants issued (in shares) | 6,150,000 | |||
Per share price of warrants issued (in dollars per share) | $ 1 | |||
Proceeds from issuance of warrants | $ 6,150,000 |
Investment Partnerships and O_4
Investment Partnerships and Other Entities, Net Impact of the Consolidated Entities on the Statements of Financial Position (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Financial Condition [Abstract] | ||||
Total assets | $ 1,171,266 | $ 1,174,545 | ||
Liabilities and equity [Abstract] | ||||
Total liabilities | 60,450 | 66,328 | ||
Redeemable noncontrolling interests | 195,070 | 206,828 | ||
Total equity | 915,746 | $ 820,803 | 901,389 | $ 897,435 |
Total liabilities and equity | 1,171,266 | 1,174,545 | ||
Consolidated Statements of Income [Abstract] | ||||
Total revenues | 2,325 | 2,962 | ||
Operating loss | (6,365) | (640) | ||
Total other income, net | 30,682 | (100,091) | ||
Loss from continuing operations, net of taxes | 18,727 | (77,069) | ||
Income/(loss) from discontinued operations, net of taxes | 0 | (231) | ||
Income attributable to noncontrolling interests | 172 | (3,945) | ||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | 18,555 | (73,355) | ||
Consolidated Entities [Member] | ||||
Consolidated Statements of Financial Condition [Abstract] | ||||
Total assets | 214,816 | 226,738 | ||
Liabilities and equity [Abstract] | ||||
Total liabilities | 19,746 | 19,910 | ||
Redeemable noncontrolling interests | 195,070 | 206,828 | ||
Total equity | 0 | 0 | ||
Total liabilities and equity | 214,816 | 226,738 | ||
Consolidated Statements of Income [Abstract] | ||||
Total revenues | 185 | 644 | ||
Operating loss | (513) | 446 | ||
Total other income, net | 626 | (4,391) | ||
Loss from continuing operations, net of taxes | 113 | (3,945) | ||
Income/(loss) from discontinued operations, net of taxes | 0 | |||
Income attributable to noncontrolling interests | 172 | (3,945) | ||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | (59) | 0 | ||
Prior to Consolidation [Member] | ||||
Consolidated Statements of Financial Condition [Abstract] | ||||
Total assets | 956,450 | 947,807 | ||
Liabilities and equity [Abstract] | ||||
Total liabilities | 40,704 | 46,418 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total equity | 915,746 | 901,389 | ||
Total liabilities and equity | 956,450 | $ 947,807 | ||
Consolidated Statements of Income [Abstract] | ||||
Total revenues | 2,140 | 2,318 | ||
Operating loss | (5,852) | (1,086) | ||
Total other income, net | 30,056 | (95,700) | ||
Loss from continuing operations, net of taxes | 18,614 | (73,124) | ||
Income/(loss) from discontinued operations, net of taxes | (231) | |||
Income attributable to noncontrolling interests | 0 | 0 | ||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ 18,614 | $ (73,355) |
Investment Partnerships and O_5
Investment Partnerships and Other Entities, Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Balances related to VIEs [Abstract] | |||||
Cash and cash equivalents | $ 279,725 | $ 39,509 | $ 352,007 | $ 342,001 | |
Receivable from brokers | 31,412 | 24,677 | |||
Other assets | 20,732 | 28,565 | |||
Redeemable noncontrolling interests | (195,070) | (206,828) | |||
VIEs [Member] | |||||
Balances related to VIEs [Abstract] | |||||
Cash and cash equivalents | 1,952 | 1,925 | |||
Investments in securities | [1] | 15,870 | 20,739 | ||
Receivable from brokers | 467 | 2,784 | |||
Investments in partnerships and affiliates | 0 | 376 | |||
Other assets | 0 | 7,105 | |||
Accrued expenses and other liabilities | (71) | (138) | |||
Nonredeemable noncontrolling interests | (2,451) | (2,451) | |||
Redeemable noncontrolling interests | (559) | (12,661) | |||
AC Group's net interests in consolidated entities | 15,208 | $ 17,679 | |||
VIEs [Member] | Private Placement [Member] | Private Warrants [Member] | |||||
Balances related to VIEs [Abstract] | |||||
Investments in securities | $ 6,150 | ||||
[1] | Includes $6.15 million in private placement warrants eliminated in consolidation with PMV |
Investment Partnerships and O_6
Investment Partnerships and Other Entities, Voting Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Balances related to VOE's [Abstract] | ||||
Cash and cash equivalents | $ 279,725 | $ 39,509 | $ 352,007 | $ 342,001 |
Receivable from brokers | 31,412 | 24,677 | ||
Investments in marketable securities held in trust | 175,074 | 175,040 | ||
Securities sold, not yet purchased | (16,702) | (17,571) | ||
Redeemable noncontrolling interests | (195,070) | (206,828) | ||
Voting Interest Entities [Member] | ||||
Balances related to VOE's [Abstract] | ||||
Cash and cash equivalents | 4,225 | 5,558 | ||
Investments in securities | 92,405 | 93,780 | ||
Receivable from brokers | 19,232 | 15,230 | ||
Investments in marketable securities held in trust | 175,074 | 175,040 | ||
Other assets | 261 | 322 | ||
Securities sold, not yet purchased | (5,385) | (8,057) | ||
Accrued expenses and other liabilities | (14,256) | (11,840) | ||
Redeemable noncontrolling interests | (194,511) | (194,167) | ||
AC Group's net interests in consolidated entities | $ 77,045 | $ 75,866 |
Fair Value, Assets and Liabilit
Fair Value, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Investments in government securities | $ 75,000 | $ 344,453 |
Investments in securities | 265,700 | 249,887 |
Investments in affiliated registered investment companies | 184,129 | 170,605 |
Liabilities [Abstract] | ||
Securities sold, not yet purchased | 16,702 | 17,571 |
Trading - U.S. Treasury Bills [Member] | ||
Assets [Abstract] | ||
Investments in government securities | 75,000 | 344,453 |
Common Stocks [Member] | ||
Assets [Abstract] | ||
Investments in securities | 253,109 | 237,377 |
Closed-end Funds [Member] | ||
Assets [Abstract] | ||
Investments in affiliated registered investment companies | 117,656 | 106,719 |
Mutual Funds [Member] | ||
Assets [Abstract] | ||
Investments in securities | 1,329 | 1,294 |
Investments in affiliated registered investment companies | 66,473 | 63,886 |
Other [Member] | ||
Assets [Abstract] | ||
Investments in securities | 11,262 | 11,216 |
Recurring Basis [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 276,647 | 34,010 |
Investments in securities | 340,700 | 594,340 |
Investments in affiliated registered investment companies | 184,129 | 170,605 |
Total investments held at fair value | 524,829 | 764,945 |
Total assets at fair value | 801,476 | 798,955 |
Liabilities [Abstract] | ||
Securities sold, not yet purchased | 16,702 | 17,571 |
Recurring Basis [Member] | Trading - U.S. Treasury Bills [Member] | ||
Assets [Abstract] | ||
Investments in government securities | 75,000 | 344,453 |
Recurring Basis [Member] | Common Stocks [Member] | ||
Assets [Abstract] | ||
Investments in securities | 253,109 | 237,377 |
Liabilities [Abstract] | ||
Trading | 14,996 | 16,090 |
Recurring Basis [Member] | Closed-end Funds [Member] | ||
Assets [Abstract] | ||
Investments in affiliated registered investment companies | 117,656 | 106,719 |
Recurring Basis [Member] | Mutual Funds [Member] | ||
Assets [Abstract] | ||
Investments in securities | 1,329 | 1,294 |
Investments in affiliated registered investment companies | 66,473 | 63,886 |
Recurring Basis [Member] | Other [Member] | ||
Assets [Abstract] | ||
Investments in securities | 11,262 | 11,216 |
Liabilities [Abstract] | ||
Trading | 1,706 | 1,481 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 276,647 | 34,010 |
Investments in securities | 330,218 | 583,781 |
Investments in affiliated registered investment companies | 182,129 | 168,605 |
Total investments held at fair value | 512,347 | 752,386 |
Total assets at fair value | 788,994 | 786,396 |
Liabilities [Abstract] | ||
Securities sold, not yet purchased | 15,949 | 16,633 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trading - U.S. Treasury Bills [Member] | ||
Assets [Abstract] | ||
Investments in government securities | 75,000 | 344,453 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Stocks [Member] | ||
Assets [Abstract] | ||
Investments in securities | 247,352 | 231,901 |
Liabilities [Abstract] | ||
Trading | 14,996 | 16,090 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Closed-end Funds [Member] | ||
Assets [Abstract] | ||
Investments in affiliated registered investment companies | 115,656 | 104,719 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mutual Funds [Member] | ||
Assets [Abstract] | ||
Investments in securities | 1,329 | 1,294 |
Investments in affiliated registered investment companies | 66,473 | 63,886 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||
Assets [Abstract] | ||
Investments in securities | 6,537 | 6,133 |
Liabilities [Abstract] | ||
Trading | 953 | 543 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Investments in securities | 6,328 | 6,061 |
Investments in affiliated registered investment companies | 0 | 0 |
Total investments held at fair value | 6,328 | 6,061 |
Total assets at fair value | 6,328 | 6,061 |
Liabilities [Abstract] | ||
Securities sold, not yet purchased | 753 | 938 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Trading - U.S. Treasury Bills [Member] | ||
Assets [Abstract] | ||
Investments in government securities | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Common Stocks [Member] | ||
Assets [Abstract] | ||
Investments in securities | 5,706 | 5,440 |
Liabilities [Abstract] | ||
Trading | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Closed-end Funds [Member] | ||
Assets [Abstract] | ||
Investments in affiliated registered investment companies | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mutual Funds [Member] | ||
Assets [Abstract] | ||
Investments in securities | 0 | 0 |
Investments in affiliated registered investment companies | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||
Assets [Abstract] | ||
Investments in securities | 622 | 621 |
Liabilities [Abstract] | ||
Trading | 753 | 938 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Investments in securities | 4,154 | 4,498 |
Investments in affiliated registered investment companies | 2,000 | 2,000 |
Total investments held at fair value | 6,154 | 6,498 |
Total assets at fair value | 6,154 | 6,498 |
Liabilities [Abstract] | ||
Securities sold, not yet purchased | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Trading - U.S. Treasury Bills [Member] | ||
Assets [Abstract] | ||
Investments in government securities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Common Stocks [Member] | ||
Assets [Abstract] | ||
Investments in securities | 51 | 36 |
Liabilities [Abstract] | ||
Trading | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Closed-end Funds [Member] | ||
Assets [Abstract] | ||
Investments in affiliated registered investment companies | 2,000 | 2,000 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mutual Funds [Member] | ||
Assets [Abstract] | ||
Investments in securities | 0 | 0 |
Investments in affiliated registered investment companies | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||
Assets [Abstract] | ||
Investments in securities | 4,103 | 4,462 |
Liabilities [Abstract] | ||
Trading | $ 0 | $ 0 |
Fair Value, Changes in Level 3
Fair Value, Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||
Beginning balance | $ 6,498 | $ 4,223 |
Total gains/(losses) | (30) | (183) |
Purchases | 44 | 0 |
Sales | 0 | 0 |
Transfers | (358) | (109) |
Ending balance | 6,154 | 3,931 |
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to Level 3 assets still held as of the reporting date | (30) | (183) |
Unobservable Inputs Reconciliation, Transfers [Abstract] | ||
Transfers into level 1 | 358 | 109 |
Common Stocks [Member] | ||
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||
Beginning balance | 36 | 89 |
Total gains/(losses) | 15 | (53) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers | 0 | 0 |
Ending balance | 51 | 36 |
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to Level 3 assets still held as of the reporting date | 15 | (53) |
Other [Member] | ||
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||
Beginning balance | 6,462 | 4,134 |
Total gains/(losses) | (45) | (130) |
Purchases | 44 | 0 |
Sales | 0 | 0 |
Transfers | (358) | (109) |
Ending balance | 6,103 | 3,895 |
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to Level 3 assets still held as of the reporting date | (45) | $ (130) |
US Treasury Bill [Member] | ||
Unobservable Inputs Reconciliation, Transfers [Abstract] | ||
Amortized cost | 175,000 | |
Fair value | $ 175,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Effective income tax rate | 23.20% | 24.40% | |
Standard corporate tax rate | 21.00% | 21.00% | |
Valuation allowance | $ 1.6 | $ 1.8 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings per Share [Abstract] | ||
Income/(loss) from continuing operations | $ 18,727 | $ (77,069) |
Less: Income/(loss) attributable to noncontrolling interests | 172 | (3,945) |
Net income/(loss) from continuing operations attributable to Associated Capital Group, Inc.'s shareholders | 18,555 | (73,124) |
Income/(loss) from discontinued operations | 0 | (231) |
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ 18,555 | $ (73,355) |
Weighted average number of shares of Common Stock outstanding - basic (in shares) | 22,222 | 22,441 |
Weighted average number of shares of Common Stock outstanding - diluted (in shares) | 22,222 | 22,441 |
Basic [Abstract] | ||
Net income/(loss) from continuing operations (in dollars per share) | $ 0.83 | $ (3.26) |
Net income/(loss) from discontinued operations (in dollars per share) | 0 | (0.01) |
Basic - Total (in dollars per share) | 0.83 | (3.27) |
Diluted [Abstract] | ||
Net income/(loss) from continuing operations (in dollars per share) | 0.83 | (3.26) |
Net income/(loss) from discontinued operations (in dollars per share) | 0 | (0.01) |
Diluted - Total (in dollars per share) | $ 0.83 | $ (3.27) |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | May 08, 2018shares | Aug. 03, 2017shares | Dec. 31, 2018shares | Aug. 31, 2018shares | Mar. 31, 2021USD ($)Vote$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Feb. 07, 2017shares | Dec. 31, 2015shares |
Stock Award and Incentive Plan [Abstract] | |||||||||
Compensation payable | $ | $ 9,526 | $ 18,567 | |||||||
Stock-based compensation expense | $ | $ 400 | $ (800) | |||||||
Stock Repurchase Program [Abstract] | |||||||||
Number of shares available under stock repurchase program (in shares) | 500,000 | ||||||||
Number of additional shares authorized to be repurchased under stock repurchase program (in shares) | 500,000 | 1,000,000 | |||||||
Shares repurchased during the period (in shares) | 100,000 | 100,000 | |||||||
Average price per share of repurchased shares (in dollars per share) | $ / shares | $ 35.24 | $ 39.43 | |||||||
Total investment amount | $ | $ 4,200 | $ 3,200 | |||||||
Dividends [Abstract] | |||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0 | $ 0 | |||||||
Maximum [Member] | |||||||||
Stock Repurchase Program [Abstract] | |||||||||
Number of shares authorized under stock repurchase program (in shares) | 774,015 | 500,000 | |||||||
Class A [Member] | |||||||||
Voting Rights [Abstract] | |||||||||
Number of votes per share | Vote | 1 | ||||||||
Class B [Member] | |||||||||
Voting Rights [Abstract] | |||||||||
Number of votes per share | Vote | 10 | ||||||||
Phantom RSAs [Member] | |||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||
Granted (in shares) | 172,800 | 172,800 | |||||||
Compensation payable | $ | $ 2,200 | $ 1,800 | |||||||
Shares outstanding (in shares) | 155,500 | ||||||||
Unrecognized compensation cost | $ | $ 3,400 | ||||||||
Weighted-average period for recognizing unrecognized compensation cost | 2 years 3 months 18 days | ||||||||
Phantom RSAs [Member] | Vesting in Three Years from Date of Grant [Member] | |||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||
Awards vesting percentage | 30.00% | ||||||||
Award vesting period | 3 years | ||||||||
Phantom RSAs [Member] | Vesting in Five Years from Date of Grant [Member] | |||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||
Awards vesting percentage | 70.00% | ||||||||
Award vesting period | 5 years |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Goodwill [Abstract] | |||
Goodwill | $ 3,519 | $ 3,519 | |
Impairment charges on goodwill | 0 | $ 0 | |
GCIA [Member] | |||
Goodwill [Abstract] | |||
Goodwill | $ 3,400 |
Discontinued Operations (Detail
Discontinued Operations (Details) | Aug. 05, 2020shares |
Morgan Group Holding, Co. [Member] | |
Discontinued Operations and Disposal Groups [Abstract] | |
Number of shares received against each share (in shares) | 0.022356 |
Discontinued Operations, Operat
Discontinued Operations, Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other income (expense) [Abstract] | ||
Income/(loss) from discontinued operations, net of taxes | $ 0 | $ (231) |
Net income/(loss) attributable to AC shareholders discontinued operations, net of taxes | $ 0 | (231) |
Morgan Group Holding, Co. [Member] | ||
Revenue [Abstract] | ||
Total revenues | 1,407 | |
Expenses [Abstract] | ||
Compensation | 1,143 | |
Other operating expenses | 719 | |
Total expenses | 1,862 | |
Operating loss | (455) | |
Other income (expense) [Abstract] | ||
Net loss from investments | (1) | |
Interest and dividend income | 36 | |
Total other income, net | 35 | |
Income/(loss) from discontinued operations before income taxes | (420) | |
Income tax provision/(benefit) | (137) | |
Income/(loss) from discontinued operations, net of taxes | (283) | |
Net income/(loss) attributable to noncontrolling interests | (52) | |
Net income/(loss) attributable to AC shareholders discontinued operations, net of taxes | (231) | |
Morgan Group Holding, Co. [Member] | Institutional Research Services [Member] | ||
Revenue [Abstract] | ||
Total revenues | 1,374 | |
Morgan Group Holding, Co. [Member] | Other [Member] | ||
Revenue [Abstract] | ||
Total revenues | $ 33 |
Discontinued Operations, Consol
Discontinued Operations, Consolidated Statement of Financial Condition (Details) - Morgan Group Holding, Co. [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Consolidated Statement of Financial Condition [Abstract] | |
Cash and cash equivalents | $ 5,669 |
Investments in equity securities | 2 |
Receivable from brokers | 244 |
Receivable from affiliates | 353 |
Deferred tax assets | 249 |
Other assets | 133 |
Total assets of discontinued operations | 6,650 |
Securities sold short, not yet purchased | 1 |
Compensation payable | 339 |
Accrued expenses and other liabilities | 555 |
Total liabilities of discontinued operations | 895 |
Noncontrolling interests from discontinued operations | 951 |
Net assets of discontinued operations attributable to AC shareholders | $ 4,804 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | May 06, 2021 | May 05, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Financing Activities [Abstract] | ||||
Shares repurchased during the period (in shares) | 100,000 | 100,000 | ||
Average price per share of repurchased shares (in dollars per share) | $ 35.24 | $ 39.43 | ||
Dividends declared (in dollars per share) | $ 0 | $ 0 | ||
Subsequent Event [Member] | ||||
Financing Activities [Abstract] | ||||
Shares repurchased during the period (in shares) | 40,229 | |||
Average price per share of repurchased shares (in dollars per share) | $ 34.64 | |||
Dividend declared date | May 5, 2021 | |||
Dividends declared (in dollars per share) | $ 0.10 | |||
Dividends payable date | Jun. 29, 2021 | |||
Dividend record date | Jun. 15, 2021 |