Exhibit 99
Gabelli Pro Forma Financial Data for Settlement of Mandatory Convertible
Purchase Contracts
RYE, N.Y.--(BUSINESS WIRE)--Feb. 28, 2005--Gabelli Asset
Management Inc. (NYSE: GBL) issued 1,517,483 shares of class A common
stock and received proceeds of $70,567,500 on February 17, 2005 in
settlement of the purchase contracts issued pursuant to its mandatory
convertible securities.
Gabelli's statements of financial condition at December 31, 2003
and December 31, 2004 are presented in Table I along with a pro forma
statement of financial condition as of February 17, 2005 based on
December 31, 2004 balances, adjusted for the issuance of the common
shares and the receipt of proceeds. On February 17, 2005, Gabelli's
stockholders' equity totaled approximately $423 million on this pro
forma basis compared to $378 million and $352 million on December 31,
2003 and 2004, respectively.
Gabelli issued these mandatory convertible securities consisting
of purchase contracts and senior notes in February 2002. The senior
notes due February 17, 2007 were remarketed in November 2004 and the
interest rate was reset from 6% to 5.22% at that time.
During 2004, Gabelli returned over $100 million of earnings to
shareholders through its stock buyback program and quarterly and
special dividends.
Gabelli Asset Management Inc., through its subsidiaries, manages
approximately $28.7 billion in assets of private advisory accounts
(GAMCO), mutual funds and closed-end funds (Gabelli Funds, LLC), and
partnerships and offshore funds (Alternative Investment Group).
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
Our disclosure and analysis in this press release contain some
forward-looking statements. Forward-looking statements give our
current expectations or forecasts of future events. You can identify
these statements because they do not relate strictly to historical or
current facts. They use words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe," and other words and
terms of similar meaning. They also appear in any discussion of future
operating or financial performance. In particular, these include
statements relating to future actions, future performance of our
products, expenses, the outcome of any legal proceedings, and
financial results. Although we believe that we are basing our
expectations and beliefs on reasonable assumptions within the bounds
of what we currently know about our business and operations, there can
be no assurance that our actual results will not differ materially
from what we expect or believe. Some of the factors that could cause
our actual results to differ from our expectations or beliefs include,
without limitation: the adverse effect from a decline in the
securities markets; a decline in the performance of our products; a
general downturn in the economy; changes in government policy or
regulation; changes in our ability to attract or retain key employees;
and unforeseen costs and other effects related to legal proceedings or
investigations of governmental and self-regulatory organizations. We
also direct your attention to any more specific discussions of risk
contained in our Form 10-K and other public filings. We are providing
these statements as permitted by the Private Litigation Reform Act of
1995. We do not undertake to update publicly any forward-looking
statements if we subsequently learn that we are unlikely to achieve
our expectations or if we receive any additional information relating
to the subject matters of our forward-looking statements.
Table I
GABELLI ASSET MANAGEMENT INC.
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
(a)
December 31, December 31, February 17,
2003 2004 2005
------------ -------------- -------------
ASSETS (unaudited) (unaudited)
Cash and cash equivalents $ 386,511 $ 257,096 $ 327,663
Investments 295,411 381,689 381,689
Receivables 39,667 46,571 46,571
Other assets 14,922 13,616 13,616
------------ -------------- -------------
Total assets $ 736,511 $ 698,972 $ 769,539
============ ============== =============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Compensation payable $ 25,552 $ 27,645 $ 27,645
Income taxes payable 12,323 8,526 8,526
Accrued expenses and other
liabilities 27,900 22,142 22,142
------------ -------------- -------------
Total operating
liabilities 65,775 58,313 58,313
5.5% Senior notes (due
May 15, 2013) 100,000 100,000 100,000
5% Convertible note
(conversion price, $52 per
share; note due August 14,
2011) 100,000 100,000 100,000
5.22% Senior notes
(remarketed November 17,
2004;due February 17, 2007) - - 82,308
Mandatory convertible
securities (purchase
contract settlement date,
February 17, 2005; notes
due February 17, 2007) 84,030 82,308 -
------------ -------------- -------------
Total liabilities 349,805 340,621 340,621
Minority interest 8,395 6,171 6,171
Stockholders' equity (b) 378,311 352,180 422,747
------------ -------------- -------------
Total liabilities and
stockholders' equity $ 736,511 $ 698,972 $ 769,539
============ ============== =============
(a) Represents pro forma statement of financial condition as of
February 17, 2005 based on the December 31, 2004 statement of
financial condition adjusted only for the issuance of 1,517,483
shares of class A common stock and the receipt of proceeds
totaling $70,567,500 on February 17, 2005 in settlement of the
purchase contracts issued pursuant to its mandatory convertible
securities.
(b) Shares outstanding: 30,049,556 at 12/31/03; 28,837,034 at
12/31/04; 30,355,217 at 2/17/05.
CONTACT: Gabelli Asset Management
Michael R. Anastasio, 914/921-5147
or
For further information please visit
www.gabelli.com