- AUM grew 8.2% to $43.1 billion year
to year
- Revenues were $88.3 million versus
$87.7 million in the 2016 third quarter
- Third quarter diluted earnings per
share was $0.55 compared to $1.03 a year ago
- Adjusted earnings per share was
$0.70 compared to $0.69 a year ago
GAMCO Investors, Inc. (“GAMCO”) (NYSE: GBL) today reported third
quarter 2017 revenues of $88.3 million, net income of $16.6 million
and earnings of $0.55 per diluted share compared to third quarter
2016 revenues of $87.7 million, net income of $30.9 million and
earnings of $1.03 per diluted share. On an adjusted basis, 2017
third quarter net income was $21.2 million and earnings were $0.70
per diluted share versus 2016 third quarter net income of $20.4
million and earnings of $0.69 per diluted share. Adjusted net
income and adjusted earnings per share are non-GAAP performance
measures and are explained and reconciled with the most comparable
GAAP numbers starting on page 10.
Our third quarter 2017 AUM was up 8.2% from the prior year and
3.4% from $41.7 billion at June 30, 2017. Market appreciation of
$1.8 billion was partially offset by net outflows of $213 million
and distributions of $140 million.
Average AUM was $42.3 billion for the third quarter of 2017
versus $41.5 billion for the second quarter of 2017 and $39.9
billion for the third quarter of 2016.
As previously disclosed, the Company deferred the compensation
of the Chief Executive Officer for all of 2016 and the first half
of 2017. This provided the Company with enhanced flexibility to pay
down debt related to the spin-off of Associated Capital in November
2015. Deferred compensation expense is recognized ratably over the
vesting period, which resulted in a $23.1 million increase in
compensation expense and management fee year over year. In
addition, the Company incurred additional expenses of $2.9 million
due to the accelerated vesting of RSAs and the launching of our
16th closed-end fund.
As a result, operating income was $23.4 million in the third
quarter of 2017 compared to $48.1 million in the year ago
quarter.
Financial Highlights Third Quarter YTD ($'s in
000's except AUM and per share data)
2017 2016
2017 2016 AUM - end of period (in millions) $
43,089 $ 39,806 $ 43,089 $ 39,806 AUM - average (in millions)
42,323 39,883 41,696 38,727
GAAP Revenues $ 88,341 $ 87,721 $
261,858 $ 253,050 Operating income 23,393 48,076 105,496
139,765 Income before income taxes 20,434 45,347 98,002
131,658 Effective tax rate 18.8% 31.9% 34.4% 35.9% Net
income 16,600 30,861 64,314 84,429 Net income per fully
diluted share $ 0.55 $ 1.03
$ 2.14 $ 2.85
Non-GAAP Operating income $ 35,672 $ 35,365 $ 105,575 $
101,397 Adjusted income before income taxes 33,749 32,636
99,117 93,290 Adjusted effective tax rate 37.1% 37.6% 37.8% 37.8%
Adjusted net income 21,214 20,376 61,664 58,023
Adjusted net income per fully diluted share $ 0.70
$ 0.69 $ 2.05
$ 1.97 Weighted average diluted shares
outstanding 28,926 29,185 28,930 29,222 Shares outstanding
at September 30 29,168 29,548 29,168 29,548 See the
reconciliation to the comparable U.S. GAAP measures starting on
page 10.
Revenues
- Total revenues for the third quarter of
2017 grew to $88.3 million from $87.7 million in the prior
year.
- Investment advisory fees advanced to
$77.3 million in the third quarter of 2017 from $76.0 million in
the third quarter of 2016. Third quarter revenues from our open-end
and closed-end funds were $50.0 million, an increase from $48.9
million in the year ago quarter. Institutional and Private Wealth
Management accounted for $26.0 million of the revenues in 2017
versus $26.2 million in 2016. SICAV revenues surged to $1.3 million
in 2017 from $0.8 million in 2016.
- Distribution fees from our open-end
equity funds and other income were $11.0 million for the third
quarter 2017, versus the $11.8 million in the prior year
quarter.
Operating Income
As noted, there were several distinct items in both quarters
that impacted our results. Operating income before these
adjustments was $35.7 million in the third quarter of 2017 versus
$35.4 million in the prior year period. The cash compensation
deferrals impacted operating costs by a negative swing of $23.1
million, composed of a $9.8 million expense increase in the third
quarter of 2017 versus a $13.3 million expense reduction in the
third quarter of 2016. Further, in the 2017 third quarter, the
Company recorded an additional $1.8 million of compensation expense
due to the accelerated vesting of the majority of the GAMCO RSAs.
GAMCO also incurred $1.1 million in costs related to launching our
16th closed-end fund, the Gabelli Merger Plus+ Trust plc. The net
result of these items reduced reported operating income to $23.4
million in the third quarter of 2017 from $48.1 million in the year
ago quarter.
Other expense
We recognized $3.0 million in net other expenses in the third
quarter versus net other expenses of $2.7 million in the third
quarter of 2016. In the third quarter of 2017, we recorded $3.9
million of charitable contribution expense. Interest expense
decreased by $0.5 million year over year, reflecting a decline in
outstanding debt to $204.0 million at September 30, 2017 from
$233.9 million at September 30, 2016. Investment income for 2017
was $3.6 million vs. $0.4 million in 2016.
Income Taxes
The Company’s effective tax rate (“ETR”) for the quarter ended
September 30, 2017 was 18.8% versus 31.9% for the quarter ended
September 30, 2016. The current year quarter’s ETR benefited from
the reversal of certain tax accruals totaling $3.4 million as well
as a $1.0 million tax benefit related to the charitable
contribution.
Balance Sheet
As anticipated, GAMCO has made substantial progress in reducing
its debt since the November 2015 spin-off of Associated Capital
Group, Inc. As a result, Standard & Poor’s recently revised its
outlook to stable from negative and reaffirmed our debt rating at
BBB-.
We ended the quarter with cash of $61.1 million, investments of
$101.4 million, and gross debt of $204.0 million. In this regard,
we note that $60.0 million of our cash and investments are held in
escrow for benefit of the Convertible note holder. We have $500
million available on our universal shelf registration. Together
with earnings from operations, the shelf provides us with
flexibility to pay down debt, do acquisitions, lift-outs, seed new
investment strategies, and co-invest, as well as to fund
shareholder compensation, including share repurchases and
dividends.
In total, there is $57.2 million of deferred cash compensation
that has yet to be recorded and will be during the remainder of
2017, 2018 and 2019, in accordance with GAAP.
Subsequent to quarter end, we reduced the 4% PIK note due
November 30, 2020 to $50 million as we redeemed an additional $20
million.
Deferred Compensation
GAMCO entered into a third agreement with its Chief Executive
Officer on September 30, 2017 which will defer his cash
compensation for the fourth quarter of 2017 until April 2019 under
terms that are similar to the prior two deferrals.
Returns to Shareholder
During the quarter ended September 30, 2017, we repurchased
131,480 shares at an average price of $29.42 per share for a total
investment of $3.9 million. We also distributed $0.6 million in
dividends. Since our IPO in February 1999, we have returned $1.9
billion in total to shareholders comprised of $1.0 billion of
spin-offs, $490.4 million in the form of dividends and $447.4
million through stock buybacks of approximately 10.2 million
shares.
On November 7, 2017, GAMCO’s Board of Directors declared a
regular quarterly dividend of $0.02 per share payable on January
10, 2018 to its Class A and Class B shareholders of record on
December 27, 2017.
Business and Investment Highlights
- On July 19, 2017, we launched our 16th
closed-end fund and second on the London Stock Exchange, the
Gabelli Merger Plus+ Trust plc. The fund, which trades under the
symbol GMP, raised $100 million.
- On September 18, 2017, the Ellsworth
Growth and Income Fund Ltd. completed its initial preferred
offering. The Fund issued $30 million of 5.25% Series A Cumulative
Preferred Shares which are perpetual, non-callable for five
years.
- On September 26, 2017, the Gabelli
Multimedia Trust completed its offering of $50 million of 5.125%
Series E Cumulative Preferred Stock. The preferred stock is
perpetual, non-callable for five years, and was issued at $25 per
share.
About GAMCO Investors, Inc.
GAMCO Investors, Inc., through its subsidiaries, manages private
advisory accounts (GAMCO Asset Management Inc.) and open-end funds
and closed-end funds (Gabelli Funds, LLC).
September
30, September 30, 2017 2016 Equities:
Open-end Funds $ 13,762 $ 13,799 Closed-end Funds 7,668 7,178
Institutional & PWM - direct (a) 13,893 13,245 Institutional
& PWM - sub-advisory 5,346 3,542 SICAV 504 267
(b) Total Equities 41,173 38,031 Fixed Income:
Money-Market Fund 1,890 1,738 Institutional & PWM 26
37 Total Fixed Income 1,916 1,775 Total Assets
Under Management $ 43,089 $ 39,806 (a) Includes $280 million
and $286 million of Money Market Fund AUM at September 30, 2017 and
September 30, 2016, respectively. (b) Adjusted to include $225
million of Merger Arbitrage assets. The Company
reported Assets Under Management as follows (in millions):
Table I: Fund Flows - 3rd Quarter 2017
Fund Market distributions, June 30,
appreciation/ Net cash net of September
30, 2017 (depreciation) flows
reinvestments 2017 Equities: Open-end Funds $ 13,574
$ 517 $ (305 ) $ (24 ) $ 13,762 Closed-end Funds 7,359 249 176 (116
) 7,668 Institutional & PWM - direct 13,437 613 (157 ) - 13,893
Institutional & PWM - sub-advisory 5,048 368 (70 ) - 5,346
SICAV (a) 421 10 73 -
504 Total Equities 39,839 1,757 (283 )
(140 ) 41,173 Fixed Income: Money-Market Fund 1,813 4
73 - 1,890 Institutional & PWM 29 - (3 )
- 26 Total Fixed Income 1,842 4
70 - 1,916 Total Assets Under
Management $ 41,681 $ 1,761 $ (213 ) $ (140 ) $ 43,089 (a)
Adjusted to include $371 million of Merger Arbitrage assets at June
30, 2017.
Table II: Fund Flows - Year to date
September 2017 Fund Market
distributions, December 31, appreciation/
Net cash net of September 30, 2016
(depreciation) flows reinvestments
2017 Equities: Open-end Funds $ 13,462 $ 1,354 $ (1,009 ) $
(45 ) $ 13,762 Closed-end Funds 7,150 712 162 (356 ) 7,668
Institutional & PWM - direct 13,441 1,523 (1,071 ) - 13,893
Institutional & PWM - sub-advisory 3,783 522 1,041 (b) - 5,346
SICAV (a) 320 29 155 -
504 Total Equities 38,156 4,140 (722 )
(401 ) 41,173 Fixed Income: Money-Market Fund 1,767 9
114 - 1,890 Institutional & PWM 31 - (5 )
- 26 Total Fixed Income 1,798 9
109 - 1,916 Total Assets Under
Management $ 39,954 $ 4,149 $ (613 ) $ (401 ) $ 43,089 (a)
Adjusted to include $270 million of Merger Arbitrage assets at
December 31, 2016. (b) Includes $1.2 billion from being approved as
the sub-advisor on two sub-advisory entities as of February 27,
2017.
Table III GAMCO
INVESTORS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF INCOME (Dollars in thousands, except per share data)
For the Quarter Ended September 30,
2017 2016 Investment advisory and incentive
fees $ 77,328 $ 75,952 Distribution fees and other income
11,013 11,769 Total revenues 88,341 87,721
Compensation costs 42,919 21,233 Distribution costs 11,665
11,568 Other operating expenses 5,429 5,681
Total expenses 60,013 38,482 Operating income before
management fee 28,328 49,239 Investment income 3,586 426
Interest expense (2,688 ) (3,155 ) Shareholder-designated
contribution (3,857 ) - Other expense, net
(2,959 ) (2,729 ) Income before management fee
and income taxes 25,369 46,510 Management fee expense 4,935
1,163 Income before income taxes 20,434 45,347
Income tax expense 3,834 14,486 Net
income attributable to GAMCO Investors, Inc. $ 16,600 $
30,861 Net income per share attributable to GAMCO
Investors, Inc.: Basic $ 0.57 $ 1.06 Diluted $
0.55 $ 1.03 Weighted average shares
outstanding: Basic 28,926 29,185
Diluted 31,173 30,406 Actual
shares outstanding (a) 29,168 29,548
Notes: (a) Includes 164,050 and 427,290 of RSAs,
respectively. See GAAP to non-GAAP reconciliation on page 8.
Table IV GAMCO INVESTORS,
INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (Dollars in thousands, except per share data)
For the Nine Months Ended September 30,
2017 2016 Investment advisory and incentive
fees $ 228,942 $ 219,594 Distribution fees and other income
32,916 33,456 Total revenues 261,858 253,050
Compensation costs 97,634 62,130 Distribution costs 33,373
32,786 Other operating expenses 15,900 14,993
Total expenses 146,907 109,909 Operating income
before management fee 114,951 143,141 Investment income
4,632 1,622 Interest expense (8,269 ) (9,729 )
Shareholder-designated contribution (3,857 ) -
Other expense, net (7,494 ) (8,107 ) Income
before management fee and income taxes 107,457 135,034 Management
fee expense 9,455 3,376 Income before
income taxes 98,002 131,658 Income tax expense 33,688
47,229 Net income attributable to GAMCO Investors,
Inc. $ 64,314 $ 84,429 Net income per share
attributable to GAMCO Investors, Inc.: Basic $ 2.22 $ 2.89
Diluted $ 2.14 $ 2.85 Weighted
average shares outstanding: Basic 28,930
29,222 Diluted 31,144 29,811
Actual shares outstanding (a) 29,168
29,548 Notes: (a) Includes 164,050 and 427,290
of RSAs, respectively. See GAAP to non-GAAP reconciliation on page
8.
Table V GAMCO INVESTORS, INC. UNAUDITED
QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
2017 2016 1st 2nd 3rd 1st
2nd 3rd 4th Quarter Quarter
Quarter Full Year Quarter Quarter
Quarter Quarter Full Year Income Statement
Data: Revenues $ 85,917 $ 87,600 $ 88,341 $ 261,858 $ 81,385
$ 83,944 $ 87,721 $ 99,950 $ 353,000 Expenses 41,310
45,584 60,013 146,907
35,363 36,064 38,482
44,777 154,686
Operating income before management fee
44,607 42,016 28,328 114,951 46,022 47,880 49,239 55,173 198,314
Investment income 509 537 (271 ) 775 591 605 426 1,483 3,105
Interest expense (2,832 ) (2,749 ) (2,688 )
(8,269 ) (3,406 ) (3,168 ) (3,155 )
(2,945 ) (12,674 ) Other expense, net (2,323 ) (2,212
) (2,959 ) (7,494 ) (2,815 ) (2,563 ) (2,729 ) (1,462 ) (9,569 )
Income before management fee and income
taxes
42,284 39,804 25,369 107,457 43,207 45,317 46,510 53,711 188,745
Management fee expense 2,164 2,356
4,935 9,455 1,080
1,133 1,163 3,142 6,518
Income before income taxes 40,120 37,448 20,434 98,002
42,127 44,184 45,347 50,569 182,227 Income tax expense
15,300 14,554 3,834
33,688 16,102 16,641
14,486 17,877 65,106
Net income attributable to GAMCO
Investors, Inc.
$ 24,820 $ 22,894 $ 16,600 $ 64,314 $
26,025 $ 27,543 $ 30,861 $ 32,692 $
117,121
Net income per share attributable to GAMCO
Investors, Inc.:
Basic $ 0.86 $ 0.79 $ 0.57 $ 2.22 $
0.89 $ 0.94 $ 1.06 $ 1.12 $ 4.01
Diluted $ 0.82 $ 0.76 $ 0.55 $ 2.14
$ 0.88 $ 0.93 $ 1.03 $ 1.07 $
3.92 Weighted average shares outstanding: Basic
28,970 28,896 28,926
28,930 29,247 29,234
29,185 29,062 29,182
Diluted 31,160 31,100
31,173 31,144 29,684
29,522 30,406 31,241
30,170
Reconciliation of non-GAAP financial
measures to GAAP:
Operating income before management fee
44,607 42,016 28,328 114,951 46,022 47,880 49,239 55,173 198,314
Deduct: management fee expense 2,164 2,356
4,935 9,455 1,080
1,133 1,163 3,142
6,518 Operating income $ 42,443 $ 39,660 $
23,393 $ 105,496 $ 44,942 $ 46,747 $
48,076 $ 52,031 $ 191,796
Operating margin before management fee
51.9 % 48.0 % 32.1 % 43.9 % 56.5
% 57.0 % 56.1 % 55.2 % 56.2 %
Operating margin after management fee
49.4 % 45.3 % 26.5 % 40.3 % 55.2
% 55.7 % 54.8 % 52.1 % 54.3 %
Notes on Non-GAAP Financial Measures:
Operating income before management fee is
used by management to evaluate its business operations. We believe
this measure is useful in illustrating the operating results of
GAMCO Investors, Inc. (the "Company") as management fee expense is
based on pre-tax income before management fee expense, which
includes non-operating items including investment gains and losses
from the Company's proprietary investment portfolio and interest
expense.
Table VI GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION (Dollars in thousands, except per share data)
September 30, December 31, September
30, 2017 2016 2016 ASSETS
Cash and cash equivalents (includes
restricted cash of $95 and $0, respectively)
$ 61,097 $ 39,812 $ 33,852
Investments (includes restricted
investments in securities of $59,954 and $0, respectively)
101,425 37,285 32,889 Receivable from brokers 1,342 453 344 Other
receivables 31,641 50,756 32,429 Income tax receivable and deferred
tax asset 24,941 9,349 10,634 Other assets 10,580
11,574 11,120 Total assets $
231,026 $ 149,229 $ 121,268
LIABILITIES AND EQUITY Payable to brokers $ 13,311 $
66 $ 10,203 Income taxes payable and deferred tax liabilities 3,215
3,815 164 Compensation payable (a) 82,896 42,384 31,469 Accrued
expenses and other liabilities 32,091 35,656
44,574 Sub-total 131,513 81,921 86,410
5.875% Senior notes (due June 1, 2021) 24,138 24,120 24,115 4.5%
Convertible note (due August 15, 2021) 109,862 109,835 109,826 4%
PIK note (due November 30, 2020) 70,000
100,000 100,000 Total debt 204,000
233,955 233,941 Total
liabilities 335,513 315,876 320,351 GAMCO Investors, Inc.'s
stockholders' deficit (104,487 ) (166,647 )
(199,083 ) Total liabilities and equity $ 231,026 $
149,229 $ 121,268 (a) Excludes $57.2 million
of DCCA expense that is not yet recorded under GAAP.
Non-GAAP information and reconciliation:
GAMCO’s non-GAAP measures include adjusted income before taxes,
adjusted effective tax rate, adjusted net income and adjusted net
income per fully diluted share. GAMCO’s calculation of these
non-GAAP measures may not be comparable to similarly titled
measures of other companies due to potential differences between
companies in the method of calculation. As a result, the use of
these non-GAAP measures has limitations and should not be
considered superior to, in isolation from, or a substitute for,
related U.S. GAAP measures.
These non-GAAP measures allow management and investors to view
operating trends, perform analytical comparisons and benchmark
performance between periods to understand operating performance
without regard to items that we do not consider to be a component
of our core operating performance. Management uses these measures
in its financial, investment and operational decision-making
processes, for internal reporting and as part of its forecasting
and budgeting processes. For these reasons we believe these
non-GAAP measures are useful for our investors.
Adjusted income before taxes, adjusted effective tax rate,
adjusted net income and adjusted net income per fully diluted share
can be used by investors to review our results on a consistent
basis. Examples of adjustments to these measures include the GAAP
impact of the 2016 DCCA and First Half 2017 DCCA that were put in
place to enable the Company to more quickly pay down its debt, the
acceleration of outstanding RSAs, charitable contributions and
closed-end fund launch expenses.
The following tables reconcile adjusted income before taxes,
adjusted effective tax rate, adjusted net income and adjusted net
income per share to their closest GAAP equivalent:
For the three months ended September
30, 2017 Reported First Half
RSA GAAP 2017 DCCA 2016 DCCA
Acceleration Other Adjusted Total
revenues $ 88,341 $ - $ - $ - $ - $ 88,341 Compensation
costs 42,919 (4,816 ) (3,415 ) (1,796 ) - 32,892 Distribution costs
11,665 - - - (1,068 ) 10,597 Other operating expenses 5,429
- - - -
5,429 Total expenses 60,013 (4,816 ) (3,415 )
(1,796 ) (1,068 ) 48,918 Operating income before management
fee 28,328 4,816 3,415 1,796 1,068 39,423 Other expense, net
(2,959 ) - - - 1,036 (1,923 ) Income before management fee
and income taxes 25,369 4,816 3,415 1,796 2,104 37,500 Management
fee expense 4,935 (886 ) (688 )
180 210 3,751 Income before
income taxes 20,434 5,702 4,103 1,616 1,894 33,749 Income tax
expense 3,834 2,167 1,559
(113 ) 5,088 12,535 Net income
attributable to GAMCO Investors, Inc. $ 16,600 $ 3,535
$ 2,544 $ 1,729 $ (3,194 ) $ 21,214
Net income per share attributable to GAMCO Investors, Inc.:
Basic $ 0.57 $ 0.12 $ 0.09 $ 0.06 $
(0.11 ) $ 0.73 Diluted $ 0.55 $ 0.11 $ 0.08
$ 0.06 $ (0.10 ) $ 0.70
For the three months ended September 30, 2016
Reported GAAP 2016 DCCA
Other Adjusted Total revenues $ 87,721 $ - $ -
$ 87,721 Compensation costs 21,233 10,885 - 32,118
Distribution costs 11,568 - (638 ) 10,930 Other operating expenses
5,681 - - 5,681
Total expenses 38,482 10,885 (638 ) 48,729 Operating
income before management fee 49,239 (10,885 ) 638 38,992
Other expense, net (2,729 ) - - (2,729 ) Income before
management fee and income taxes 46,510 (10,885 ) 638 36,263
Management fee expense 1,163 2,400
64 3,627 Income before income taxes
45,347 (13,285 ) 574 32,636 Income tax expense 14,486
(5,075 ) 2,849 12,260 Net income
attributable to GAMCO Investors, Inc. $ 30,861 $ (8,210 ) $
(2,275 ) $ 20,376 Net income per share attributable
to GAMCO Investors, Inc.: Basic $ 1.06 $ (0.28 ) $ (0.08 ) $
0.70 Diluted $ 1.03 $ (0.27 ) $ (0.07 ) $ 0.69
For the nine months ended September 30, 2017
Reported First
Half RSA GAAP 2017 DCCA 2016 DCCA
Acceleration Other Adjusted Total
revenues $ 261,858 $ - $ - $ - $ - $ 261,858 Compensation
costs 97,634 14,390 (9,174 ) (5,479 ) - 97,371 Distribution costs
33,373 - - - (1,068 ) 32,305 Other operating expenses 15,900
- - - -
15,900 Total expenses 146,907 14,390 (9,174 )
(5,479 ) (1,068 ) 145,576 Operating income before management
fee 114,951 (14,390 ) 9,174 5,479 1,068 116,282 Other
expense, net (7,494 ) - - - 1,036 (6,458 ) Income before
management fee and income taxes 107,457 (14,390 ) 9,174 5,479 2,104
109,824 Management fee expense 9,455 2,666
(2,172 ) 548 210
10,707 Income before income taxes 98,002 (17,056 ) 11,346
4,931 1,894 99,117 Income tax expense 33,688
(6,594 ) 4,350 921 5,088
37,453 Net income attributable to GAMCO Investors,
Inc. $ 64,314 $ (10,462 ) $ 6,996 $ 4,010 $
(3,194 ) $ 61,664 Net income per share attributable
to GAMCO Investors, Inc.: Basic $ 2.22 $ (0.36 ) $ 0.24
$ 0.14 $ (0.11 ) $ 2.13 Diluted $ 2.14
$ (0.34 ) $ 0.22 $ 0.13 $ (0.10 ) $ 2.05
For the nine months ended September 30, 2016
Reported GAAP 2016 DCCA
Other Adjusted Total revenues $ 253,050 $ - $
- $ 253,050 Compensation costs 62,130 32,016 - 94,146
Distribution costs 32,786 - (638 ) 32,148 Other operating expenses
14,993 - - 14,993
Total expenses 109,909 32,016 (638 ) 141,287
Operating income before management fee 143,141 (32,016 ) 638
111,763 Other expense, net (8,107 ) - - (8,107 )
Income before management fee and income taxes 135,034 (32,016 ) 638
103,656 Management fee expense 3,376 6,926
64 10,366 Income before income
taxes 131,658 (38,942 ) 574 93,290 Income tax expense 47,229
(14,811 ) 2,849 35,267
Net income attributable to GAMCO Investors, Inc. $ 84,429 $
(24,131 ) $ (2,275 ) $ 58,023 Net income per share
attributable to GAMCO Investors, Inc.: Basic $ 2.89 $ (0.83
) $ (0.08 ) $ 1.99 Diluted $ 2.85 $ (0.81 ) $ (0.08 )
$ 1.97
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
The financial results set forth in this press release are
preliminary. Our disclosure and analysis in this press release,
which do not present historical information, contain
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements convey 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, the economy and other
conditions, there can be no assurance that our actual results will
not differ materially from what we expect or believe. Therefore,
you should proceed with caution in relying on any of these
forward-looking statements. They are neither statements of
historical fact nor guarantees or assurances of future
performance.
Forward-looking statements involve a number of known and unknown
risks, uncertainties and other important factors, some of which are
listed below, that are difficult to predict and could cause actual
results and outcomes to differ materially from any future results
or outcomes expressed or implied by such forward-looking
statements. Some of the factors that could cause our actual results
to differ from our expectations or beliefs include a decline in the
securities markets that adversely affect our assets under
management, negative performance of our products, the failure to
perform as required under our investment management agreements, a
general downturn in the economy that negatively impacts our
operations. We also direct your attention to the more specific
discussions of these and other risks, uncertainties and other
important factors contained in our Form 10-K and other public
filings. Other factors that could cause our actual results to
differ may emerge from time to time, and it is not possible for us
to predict all of them. We do not undertake to update publicly any
forward-looking statements if we subsequently learn that we are
unlikely to achieve our expectations whether as a result of new
information, future developments or otherwise, except as may be
required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20171107006762/en/
GAMCO Investors, Inc.Kieran Caterina or Diane M. LaPointeSVPs
and Co-Chief Accounting Officers914-921-5149 or 7763orFor further
information please visitwww.gabelli.com
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