One Corporate Center
Rye, NY 10580-1422
Tel. (914) 921-5147
Fax (914) 921-5392
www.gabelli.com
Gabelli Asset Management
For Immediate Release: Contact: Michael R. Anastasio
Chief Financial Officer
(914) 921-5147
For further information please visit
www.gabelli.com
GABELLI PRO FORMA FINANCIAL DATA FOR SETTLEMENT OF
MANDATORY CONVERTIBLE PURCHASE CONTRACTS
Rye, New York, February 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, the receipt of proceeds related
to the issuance of shares and the $0.60 per share special dividend paid on
January 18, 2005. On February 17, 2005, Gabelli's stockholders' equity totaled
approximately $405 million on this pro forma basis compared to $378 million and
$335 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 $310,361
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 $752,237
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Compensation payable $25,552 $27,645 $27,645
Dividends payable - 17,302 -
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 75,615 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 82,308
Mandatory convertible securities (purchase contract settlement date, February
17, 2005; notes due February 17, 2007) 84,030 - -
------------ ------------ ------------
Total liabilities 349,805 357,923 340,621
Minority interest 8,395 6,171 6,171
Stockholders' equity (b) 378,311 334,878 405,445
------------ ------------ ------------
Total liabilities and stockholders' equity $736,511 $698,972 $752,237
============ ============ ============
(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,
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 and the $0.60 per share special dividend paid on
January 18, 2005.
(b) Shares outstanding: 30,049,556 at 12/31/03; 28,837,034 at 12/31/04; 30,355,217 at 2/17/05.