GAMCO Expects to Report Fourth Quarter Earnings of $0.44 to $0.46 Per Fully Diluted Share
January 26 2018 - 11:06AM
Business Wire
- Includes $8.2 million, or $0.27 per
diluted share, charge for the Tax Cuts and Jobs Act
GAMCO Investors, Inc. (“GAMCO”) (NYSE:GBL) announced today that
it expects to report fourth quarter earnings of between $0.44 to
$0.46 per fully diluted share. This fourth quarter range reflects
the estimated impact of the Tax Cuts and Jobs Act (“the Act”) on
GAMCO’s results. The Company’s net deferred tax assets are expected
to be reduced by $8.2 million, or $0.27 per diluted share, from the
Act’s lower corporate tax rate.
The Company’s preliminary estimate, given no material changes in
the business, of its 2018 effective tax rate is between 33% and 36%
reflecting the estimated impact of the Act. The lower Federal tax
rate benefit of the Act will likely be muted by the Act’s change to
named executive officer compensation deductibility which removes
the performance based compensation exception.
Assets under Management were $43.1 billion at December 31, 2017,
up 7.8% from $40.0 billion at December 31, 2016 and unchanged from
the $43.1 billion at September 30, 2017.
We will be issuing further details on our financial results in
early February.
About GAMCO Investors, Inc.
GAMCO Investors, Inc., through its subsidiaries, manages
open-end funds and closed-end funds (Gabelli Funds, LLC) and
private advisory accounts (GAMCO Asset Management Inc.).
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, the effects of the
Tax Cuts and Jobs Act, 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, and the ongoing impacts of the Tax Cuts and Jobs Act
with respect to tax rates and the non-deductibility of certain
portions of NEO compensation. 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/20180126005422/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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