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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Gamco Investors Inc | NYSE:GBL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 14.78 | 0 | 01:00:00 |
[x] |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
[ ] |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
13-4007862
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
One Corporate Center, Rye, NY
|
10580-1422
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Name of each exchange on which registered
|
|
Class A Common Stock, par value $0.001 per share
|
New York Stock Exchange
|
Large accelerated filer
☐
|
Accelerated filer
☒
|
|
Non-accelerated filer
☐
(Do not check if a smaller reporting company)
|
Smaller reporting company
☐
|
Emerging growth company
☐
|
● |
Institutional and Private Wealth Management:
We provide advisory services to a broad range of investors, including corporate retirement plans, foundations, endowments, jointly-trusteed plans and public funds, private wealth clients and also serve as sub-advisor to third party investment funds including registered investment companies (“Institutional and Private Wealth Management”). On December 31, 2017, we had $18.9 billion of Institutional and Private Wealth Management AUM. Over the last 40 years, the firm has generated over $27.9 billion in investment returns for our institutional and private wealth management clients.
|
● |
Open and Closed-End Funds:
We provide advisory services to twenty-one open-end funds, fifteen closed-end funds and one exchange traded managed fund under the Gabelli, GAMCO and Comstock brands (collectively, the “Funds”). The Funds had $23.7 billion of AUM on December 31, 2017. Additionally, we provide administrative services to seven open-end funds, with AUM of $1.6 billion on December 31, 2017, under the TETON Westwood brand.
|
● |
SICAV:
We provide advisory services to one fund under the GAMCO brand, the GAMCO International SICAV (the “SICAV”). The SICAV has two sub-fund strategies, the GAMCO Merger Arbitrage Fund and the GAMCO All Cap Value Fund. The GAMCO Merger Arbitrage strategy is sub-advised by Associated Capital Group, Inc. (“AC”) and had $458 million of AUM at December 31, 2017. The GAMCO All Cap Value strategy had $52 million of AUM on December 31, 2017.
|
● |
Gabelli “Private Market Value (PMV) with a Catalyst
TM
”
Investment Approach.
While we have expanded our investment product offerings, our “value investing” approach remains the core of our business. This method is based on and has evolved from the value investing principles articulated by Graham & Dodd in 1934 and enhanced by Roger Murray and Bruce Greenwald, and has been further augmented by Mr. Gabelli, CFA, with his development in 1979 of Private Market Value (PMV) with a Catalyst
TM
value investment methodology.
|
● |
Establishing Relationship Offices.
We have nine offices including New York, Chicago, Greenwich, London, Morristown, Palm Beach, Reno, and Tokyo. We will continue to evaluate adding additional offices throughout the world.
|
● |
Incentive Fees.
Since a growing percentage of the firm's revenues may be directly linked to performance-based fees (largely recognized in the fourth quarter), this may increase the variability of our revenues and profits. As of December 31, 2017, approximately $3.0 billion of our AUM are managed on a performance fee basis including $1.4 billion of Institutional and Private Wealth Management assets, $714 million of preferred issues of closed-end funds, $458 million of SICAV assets, $336 million in The GDL Fund, and $103 million in the Gabelli Merger Plus
+
Trust PLC.
|
● |
Expanding Mutual Fund Distribution.
We continue to expand our distribution network primarily through national and regional brokerage firms and have developed additional classes of shares for most of our mutual funds for sale through these firms and other third party distribution channels. We have increased our wholesaling efforts to market the multi-class shares, which have been designed to meet the needs of investors who seek advice through financial consultants. We launched our first actively managed exchange traded managed fund in 2016 (The Gabelli Media Mogul NextShares
TM
) and our second in 2017 (The Gabelli Food of All Nations NextShares
TM
).
|
● |
Increasing Presence in Private Wealth Management Market.
Our private wealth management business focuses, in general, on serving clients who have established an account relationship of $2.5 million or more with us. According to industry estimates, the number of households with over $2.5 million in investable assets will continue to grow, subject to ups and downs in the equity and fixed income markets. With our 40-year history of serving this segment, long-term performance record, customized portfolios tax-sensitive investment strategy, brand name recognition and broad array of product offerings, we believe that we are well-positioned to capitalize on the growth opportunities in this market.
|
● |
Increasing Marketing for Institutional and Private Wealth Management.
The Institutional and Private Wealth Management business was principally developed through direct marketing channels. We plan to augment our institutional sales force through the addition of staff to market directly to the consultant community as well as through our traditional marketing channels.
|
● |
Attracting and Retaining Experienced Professionals.
We offer significant variable compensation that provides opportunities to our staff. The ability to attract and retain highly-experienced investment and other professionals with a long-term commitment to us and our clients has been, and will continue to be, a significant factor in our long-term growth.
|
● |
Hosting of Institutional Investor Symposiums.
We have a tradition of sponsoring institutional investor symposiums that bring together prominent portfolio managers, members of academia and other leading business professionals to present, discuss and debate current issues and topics in the investment industry. These symposiums have included:
|
-2017
-2015
|
“Digital Evolution in Financial Services”
“Capital Allocation – The Tug of War”
|
-2013
|
“Value Investing 20 Years Later: A Celebration of the Roger Murray Lecture Series”
|
-2006
|
“Closed-End Funds: Premiums vs. Discounts, Dividends and Distributions”
|
-2003
|
“Dividends, Taxable versus Non-Taxable Issues”
|
-2001
-1998
|
“Virtues of Value Investing”
“The Role of Hedge Funds as a Way of Generating Absolute Returns”
|
-1997
|
“Active vs. Passive Stock Selection”
|
● |
Capitalizing on Acquisitions, Alliances and Lift-outs.
We intend to selectively and opportunistically pursue acquisitions, alliances and lift-outs that will broaden our product offerings and add new sources of distribution. On October 1, 1999, we completed our alliance with Mathers and Company, Inc. and now act as investment advisor to the GAMCO Mathers Fund, and in May 2000, we added Comstock Partners Funds, Inc., (renamed Comstock Funds, Inc.). The Mathers and Comstock funds are part of our Non-Market Correlated mutual fund product line. In November 2002, we completed our alliance with Woodland Partners LLC, a Minneapolis-based investment advisor focused on investing in small capitalization companies. On March 11, 2008, Gabelli Funds, LLC (“Funds Advisor”) assumed the role of investment advisor to the AXA Enterprise Mergers and Acquisitions Fund, subsequently renamed Gabelli Enterprise Mergers and Acquisitions Fund, a fund that had been sub-advised by GAMCO since the fund’s inception on February 28, 2001. On August 1, 2010, the clients of Florida-based NMF Asset Management became part of the Institutional and Private Wealth Management operation of GAMCO Asset Management Inc. (“GAMCO Asset”). On November 2, 2015, the investment team of Dinsmore Capital, a specialist in convertible bond investing and formerly the manager of The Bancroft Fund and the Ellsworth Growth & Income Fund joined Gabelli Funds.
|
● |
Strong Industry Fundamentals:
According to data compiled by the U.S. Federal Reserve, the investment management industry has grown faster than more traditional segments of the financial services industry, including the banking and insurance industries. Since GBL began managing assets for institutional and private wealth management clients in 1977, world equity markets have grown at a 10.3% compound annual growth rate through December 31, 2017 to approximately $81.3 trillion
(a)
. The U.S. equity market comprises about $29.6 trillion
(a)
or roughly 36% of world equity markets. We believe that demographic trends and the growing role of money managers in the placement of capital compared to the traditional role played by banks and life insurance companies will result in continued growth of the investment management industry.
|
● |
Long-Term Performance:
We have a superior long-term record of achieving relatively high returns for our Institutional and Private Wealth Management clients. We believe that our performance record represents a competitive advantage and a recognized component of our franchise.
|
● |
Stock Market Gains:
Since we began managing for institutional and private wealth management clients in 1977, our traditional value-oriented Institutional and Private Wealth Management composite has earned a compound annual return of 16.2% gross and 15.3% net of fees versus a compound annual return of 11.8% for the
S&P 500 through December 31, 2017. For 2017, the GAMCO composite rose 17.4% gross and 16.9% net of fees versus a gain of 21.8% for the S&P 500.
|
● |
Widely-Recognized “Gabelli” and “GAMCO” Brand Names:
For much of our history, our portfolio managers and investment products have been featured in a variety of financial print media, including both U.S. and international publications such as
The Wall Street Journal, Financial Times, Money Magazine, Barron's, Fortune, Business Week, Nikkei Financial News, Forbes Magazine, Consumer Reports
and
Investor's Business Daily
. We also underwrite publications written by our investment professionals, including
Deals…Deals…and More Deals,
which examines the history and current practice of merger arbitrage and is published in English, Japanese, Chinese and Italian, and
Global Convertible Investing: The Gabelli Way
, a comprehensive guide to effective investing in convertible securities. We look forward to publishing the follow up book to our 1999
Deals…Deals…and More Deals
in the coming months: tales of how the best arbitrageurs of our time earn a non-market correlated return by investing in announced takeovers.
|
● |
Diversified Product Offerings:
Since the inception of our investment management activities, we have sought to expand the breadth of our product offerings. We currently offer a wide spectrum of investment products and strategies, including product offerings in U.S. equities, U.S. fixed income, global and international equities, and convertible securities.
|
%
|
||||||||||||||||||||||||
At December 31,
|
Change
|
|||||||||||||||||||||||
2013 (c)
|
2014 (c)
|
2015
|
2016
|
2017
|
2017/2016
|
|||||||||||||||||||
Equity:
|
||||||||||||||||||||||||
Open-end Funds
|
$
|
17,078
|
$
|
17,684
|
$
|
13,811
|
$
|
13,462
|
$
|
13,747
|
2.1
|
%
|
||||||||||||
Closed-end Funds
|
6,945
|
6,949
|
6,492
|
7,150
|
8,053
|
12.6
|
||||||||||||||||||
Institutional & Private Wealth Management
|
||||||||||||||||||||||||
Direct
|
16,486
|
16,597
|
13,366
|
13,441
|
13,420
|
(0.2
|
)
|
|||||||||||||||||
Sub-advisory
|
3,797
|
3,704
|
3,401
|
3,783
|
5,432
|
43.6
|
||||||||||||||||||
SICAV (a)
|
96
|
135
|
178
|
320
|
510
|
59.4
|
||||||||||||||||||
Total Equity
|
44,402
|
45,069
|
37,248
|
38,156
|
41,162
|
7.9
|
||||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||
Money Market Mutual Fund (b)
|
1,735
|
1,455
|
1,514
|
1,767
|
1,870
|
5.8
|
||||||||||||||||||
Institutional & Private Wealth Management
|
62
|
58
|
38
|
31
|
31
|
0.0
|
||||||||||||||||||
Total Fixed Income
|
1,797
|
1,513
|
1,552
|
1,798
|
1,901
|
5.7
|
||||||||||||||||||
Total AUM
|
$
|
46,199
|
$
|
46,582
|
$
|
38,800
|
$
|
39,954
|
$
|
43,063
|
7.8
|
|||||||||||||
|
||||||||||||||||||||||||
Breakdown of Total AUM:
|
||||||||||||||||||||||||
Funds
|
25,758
|
26,088
|
21,817
|
22,379
|
23,670
|
5.8
|
||||||||||||||||||
Institutional & Private Wealth Management
|
||||||||||||||||||||||||
Direct
|
16,548
|
16,655
|
13,404
|
13,472
|
13,451
|
(0.2
|
)
|
|||||||||||||||||
Sub-advisory
|
3,797
|
3,704
|
3,401
|
3,783
|
5,432
|
43.6
|
||||||||||||||||||
SICAV
|
96
|
135
|
178
|
320
|
510
|
59.4
|
|
|||||||||||||||||
Total AUM
|
$
|
46,199
|
$
|
46,582
|
$
|
38,800
|
$
|
39,954
|
$
|
43,063
|
7.8
|
|
(a) |
Adjusted to include assets of $96 million, $135 million, $141 million, and $270 million at December 31, 2013, 2014, 2015,
|
(b) |
The Fund is 100% invested in short-term U.S. Treasury obligations which have remaining maturities of 397 days or less.
|
(c) |
Historical AUM has been restated to remove the AUM managed by AC.
|
U.S. Equities:
(92.9% of AUM)
|
Global and International Equities:
(1.6% of AUM)
|
All Cap Value
|
International Growth
|
Large Cap Value
|
International Small Cap Growth
|
Large Cap Growth
|
Global Growth
|
Mid Cap Value
|
Global Value
|
Small Cap Value
|
Global Content & Connectivity
|
Small Cap Growth
|
Global Utilities
|
Micro Cap
|
Gold
|
Natural Resources
|
Small and Mid Cap
|
Income
|
|
Utilities
|
U.S. Fixed Income:
(4.3% of AUM)
|
Non-Market Correlated
|
Corporate
|
Option Income
|
Government
|
Multimedia
|
Asset-backed
|
ESG
|
Intermediate
|
Healthcare
|
Short-term
|
Convertible Securities:
(1.2% of AUM)
|
|
Convertible Securities
|
|
|
2016
|
2017
|
||||||||||||||||||||||
|
Dividends
|
Dividends
|
||||||||||||||||||||||
|
High
|
Low
|
Declared
|
High
|
Low
|
Declared
|
||||||||||||||||||
First Quarter
|
$
|
38.60
|
$
|
25.95
|
$
|
0.02
|
$
|
32.55
|
$
|
28.51
|
$
|
0.02
|
||||||||||||
Second Quarter
|
41.67
|
31.34
|
0.02
|
30.55
|
27.55
|
0.02
|
||||||||||||||||||
Third Quarter
|
35.62
|
28.30
|
0.02
|
32.60
|
28.05
|
0.02
|
||||||||||||||||||
Fourth Quarter
|
$
|
33.55
|
$
|
27.85
|
$
|
0.02
|
$
|
30.94
|
$
|
27.79
|
$
|
0.02
|
Total Number of
|
Maximum
|
|||||||||||||||
Total
|
Average
|
Shares Repurchased as
|
Number of Shares
|
|||||||||||||
Number of
|
Price Paid Per
|
Part of Publicly
|
That May Yet Be
|
|||||||||||||
Shares
|
Share, net of
|
Announced Plans
|
Purchased Under
|
|||||||||||||
Period
|
Repurchased
|
Commissions
|
or Programs
|
the Plans or Programs
|
||||||||||||
10/01/17 - 10/31/17
|
16,100
|
$
|
29.15
|
16,100
|
852,420
|
|||||||||||
11/01/17 - 11/30/17
|
38,197
|
28.73
|
38,197
|
814,223
|
||||||||||||
12/01/17 - 12/31/17
|
139,929
|
29.51
|
139,929
|
674,294
|
||||||||||||
Totals
|
194,226
|
$
|
29.33
|
194,226
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
||||||||||||
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|||||||
GAMCO Investors, Inc.
|
|
100.00
|
|
|
165.45
|
|
|
170.24
|
|
|
111.47
|
|
|
111.13
|
|
|
107.02
|
SNL Asset Manager
|
|
100.00
|
|
|
153.67
|
|
|
162.12
|
|
|
138.26
|
|
|
146.27
|
|
|
194.23
|
S&P 500 Index
|
|
100.00
|
|
|
132.39
|
|
|
150.51
|
|
|
152.59
|
|
|
170.84
|
|
|
208.14
|
Number of Securities to be
|
|||||||||
Issued upon Exercise of
|
Weighted-Average Exercise
|
||||||||
Outstanding Options,
|
Price of Outstanding Options,
|
||||||||
Plan Category
|
Warrants and Rights
|
Warrants and Rights
|
|||||||
Equity compensation plans approved
|
|||||||||
by security holders:
|
|||||||||
Stock options
|
-
|
n/a
|
|||||||
Restricted stock awards
|
19,400
|
$
|
65.67
|
||||||
Equity compensation plans not approved
|
|||||||||
by security holders:
|
-
|
n/a
|
|||||||
Total
|
19,400
|
(a)
|
Includes unvested RSAs of 19,400, 424,340, 553,100, 710,750, and 566,950 at December 31, 2017, 2016, 2015, 2014, and 2013, respectively.
|
|
December 31,
|
|||||||||||||||||||
|
2017
|
2016
|
2015
|
2014
|
2013
|
|||||||||||||||
Balance Sheet Data
(in thousands)
|
||||||||||||||||||||
Total assets (a)
|
$
|
128,286
|
$
|
149,229
|
$
|
103,899
|
$
|
865,803
|
$
|
708,761
|
||||||||||
Long-term obligations (a)
|
79,087
|
239,021
|
279,267
|
116,789
|
116,510
|
|||||||||||||||
Other liabilities and noncontrolling interest
|
145,472
|
76,855
|
100,959
|
221,219
|
132,069
|
|||||||||||||||
Total liabilities and noncontrolling interest
|
224,559
|
315,876
|
380,226
|
338,008
|
248,579
|
|||||||||||||||
Total equity (deficit)
|
$
|
(96,273
|
)
|
$
|
(166,647
|
)
|
$
|
(276,327
|
)
|
$
|
527,795
|
$
|
460,182
|
(a)
|
Total assets and long-term obligations have been decreased by $128, $627, and $724 at December 31, 2015, 2014, and 2013, respectively, for the adoption of ASU 2015-03 to present the debt issuance costs as a reduction of the related debt rather than as an asset.
|
|
December 31,
|
|||||||||||||||||||
|
2017
|
2016
|
2015
|
2014
|
2013
|
|||||||||||||||
Assets Under Management
|
||||||||||||||||||||
(at year end, in millions):
|
||||||||||||||||||||
Open-end Funds
|
$
|
15,617
|
$
|
15,229
|
$
|
15,325
|
$
|
19,139
|
$
|
18,813
|
||||||||||
Closed-end Funds
|
8,053
|
7,150
|
6,492
|
6,949
|
6,945
|
|||||||||||||||
Institutional & PWM Separate Accounts
|
||||||||||||||||||||
Direct
|
13,451
|
13,472
|
13,404
|
16,655
|
16,548
|
|||||||||||||||
Sub-advisory
|
5,432
|
3,783
|
3,401
|
3,704
|
3,797
|
|||||||||||||||
SICAV (a)
|
510
|
320
|
178
|
135
|
96
|
|||||||||||||||
Total
|
$
|
43,063
|
$
|
39,954
|
$
|
38,800
|
$
|
46,582
|
$
|
46,199
|
·
|
On February 14, 2017, the Company launched the Gabelli Food of all Nations NextShares
TM
, its second actively managed, non-transparent exchange traded managed fund. The fund is investing primarily in domestic and foreign companies in the food and beverage industry, which is a consolidating sector that includes many strong cash generators with pricing power. The fund will capitalize on a segment where we have accumulated and compounded knowledge. Consumer companies have long been a core competency at GAMCO.
|
·
|
During the first quarter of 2017, the shareholders of the TETON Westwood Mighty MitesSM Fund and the TETON Convertible Securities Fund voted to approve Gabelli Funds, LLC as the sub-advisor. These assets are now included in the Institutional & PWM – sub-advisory segment of our AUM.
|
·
|
On July 10, 2017, Standard & Poor’s revised its outlook on GAMCO to stable from negative and reaffirmed its BBB- rating.
|
·
|
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, and was issued at $25 per share.
|
·
|
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.
|
·
|
On October 26, 2017, the GAMCO Natural Resources, Gold & Income Trust completed its offering of $30 million of 5.2% Series A Cumulative Preferred Stock. The preferred stock is perpetual, non-callable for five years, and was issued at $25 per share.
|
·
|
During December 2017, the Company completed two rights offerings for two of its closed-end funds, The Gabelli Equity Trust Inc. and The Gabelli Global Small and Mid Cap Value Trust, which raised a combined $203 million. Both offerings were heavily oversubscribed.
|
·
|
Net debt declined from $156.9 million at December 31, 2016 to $37.4 million at December 31, 2017 as we repaid the $110 million 4.5% Convertible note and $50 million of the 4% AC Note. As of December 31, 2017, there is $123.8 million of deferred compensation payable. $59.0 million of which has not been reflected in our GAAP financials and will be expensed $39.4 million during 2018 and $19.6 million during 2019 (see page 36 for details).
|
|
Year Ended December 31,
|
CAGR (a)
|
||||||||||||||||||||||
|
2017
|
2016
|
2015
|
2014
|
2013
|
2017/2013
|
||||||||||||||||||
Equities:
|
||||||||||||||||||||||||
Open-End
|
$
|
13,747
|
$
|
13,462
|
$
|
13,811
|
$
|
17,684
|
$
|
17,078
|
(5.3
|
)
|
||||||||||||
Closed-End
|
8,053
|
7,150
|
6,492
|
6,949
|
6,945
|
3.8
|
||||||||||||||||||
Institutional & PWM direct
|
13,420
|
13,441
|
13,366
|
16,597
|
16,486
|
(5.0
|
)
|
|||||||||||||||||
Institutional & PWM sub-advisory
|
5,432
|
3,783
|
3,401
|
3,704
|
3,797
|
9.4
|
||||||||||||||||||
SICAV (b)
|
510
|
320
|
178
|
135
|
96
|
51.8
|
||||||||||||||||||
Total Equities
|
41,162
|
38,156
|
37,248
|
45,069
|
44,402
|
(1.9
|
)
|
|||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||
Money-Market Fund
|
1,870
|
1,767
|
1,514
|
1,455
|
1,735
|
1.9
|
||||||||||||||||||
Institutional & PWM
|
31
|
31
|
38
|
58
|
62
|
(15.9
|
)
|
|||||||||||||||||
Total Fixed Income
|
1,901
|
1,798
|
1,552
|
1,513
|
1,797
|
1.4
|
||||||||||||||||||
Total AUM
|
$
|
43,063
|
$
|
39,954
|
$
|
38,800
|
$
|
46,582
|
$
|
46,199
|
(1.7
|
)
|
|
Year Ended December 31,
|
|||||||||||||||||||
2017
|
2016
|
2015
|
2014
|
2013
|
||||||||||||||||
Equities:
|
||||||||||||||||||||
Open-End
|
$
|
(1,347
|
)
|
$
|
(1,832
|
)
|
$
|
(3,053
|
)
|
$
|
(355
|
)
|
$
|
1,305
|
||||||
Closed-End (a)
|
(91
|
)
|
(55
|
)
|
(87
|
)
|
(137
|
)
|
(334
|
)
|
||||||||||
Institutional & PWM direct
|
(2,067
|
)
|
(1,571
|
)
|
(2,273
|
)
|
(846
|
)
|
169
|
|||||||||||
Institutional & PWM sub-advisory
|
988
|
(226
|
)
|
(237
|
)
|
(250
|
)
|
(134
|
)
|
|||||||||||
SICAV (b)
|
149
|
133
|
49
|
42
|
(30
|
)
|
||||||||||||||
Total Equities
|
(2,368
|
)
|
(3,551
|
)
|
(5,601
|
)
|
(1,546
|
)
|
976
|
|||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
89
|
249
|
59
|
(280
|
)
|
54
|
||||||||||||||
Institutional & PWM
|
-
|
(7
|
)
|
(20
|
)
|
(4
|
)
|
2
|
||||||||||||
Total Fixed Income
|
89
|
242
|
39
|
(284
|
)
|
56
|
||||||||||||||
Total Net Cash In (Out) Flows
|
$
|
(2,279
|
)
|
$
|
(3,309
|
)
|
$
|
(5,562
|
)
|
$
|
(1,830
|
)
|
$
|
1,032
|
(a) |
Our net cash inflows or outflows for Closed-End equity funds includes distributions, net of reinvestments, to fund holders of $483 million, $500 million, $461 million, $479 million, and $484 million in 2017, 2016, 2015, 2014, and 2013, respectively.
|
(b) |
Adjusted to include inflows or outflows of $125 million, $10 million, $42 million, and ($30) million in 2016, 2015, 2014, and 2013, respectively.
|
|
Year Ended December 31,
|
|||||||||||||||||||
2017
|
2016
|
2015
|
2014
|
2013
|
||||||||||||||||
|
||||||||||||||||||||
Equities
|
||||||||||||||||||||
Open End
|
$
|
1,632
|
$
|
1,483
|
$
|
(820
|
)
|
$
|
961
|
$
|
3,271
|
|||||||||
Close End
|
994
|
713
|
(370
|
)
|
141
|
991
|
||||||||||||||
Institutional & PWM direct
|
2,046
|
1,646
|
(958
|
)
|
957
|
4,287
|
||||||||||||||
Institutional & PWM sub-advisory
|
661
|
608
|
(66
|
)
|
157
|
1,007
|
||||||||||||||
SICAV (a)
|
41
|
9
|
(6
|
)
|
(3
|
)
|
7
|
|||||||||||||
Total Equities
|
5,374
|
4,459
|
(2,220
|
)
|
2,213
|
9,563
|
||||||||||||||
Fixed Income
|
||||||||||||||||||||
Money-Market Fund
|
14
|
4
|
-
|
-
|
-
|
|||||||||||||||
Institutional & PWM
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total Fixed Income
|
14
|
4
|
-
|
-
|
-
|
|||||||||||||||
Total Net Appreciation/(Depreciation)
|
$
|
5,388
|
$
|
4,463
|
$
|
(2,220
|
)
|
$
|
2,213
|
$
|
9,563
|
(a) |
Adjusted to include appreciation and depreciation of $4 million, ($4) million, ($3) million, and $7 million in 2016, 2015, 2014, and 2013, respectively.
|
|
Year Ended December 31,
|
Increase (decrease)
|
||||||||||||||
|
2017
|
2016
|
$ |
|
%
|
|||||||||||
Investment advisory
|
$
|
307.6
|
$
|
293.1
|
$
|
14.5
|
4.9
|
|
||||||||
Incentive fees
|
9.1
|
15.4
|
(6.3
|
)
|
(40.9
|
)
|
||||||||||
Distribution fees and other income
|
43.8
|
44.5
|
(0.7
|
)
|
(1.6
|
)
|
||||||||||
Total revenues
|
$
|
360.5
|
$
|
353.0
|
$
|
7.5
|
2.1
|
|
2017
|
2016
|
|||||||
Revenues
|
$
|
360,524
|
$
|
353,000
|
||||
Operating Income
|
145,020
|
191,796
|
||||||
Add back: management fee expense
|
13,666
|
6,518
|
||||||
Operating income before management fee
|
$
|
158,686
|
$
|
198,314
|
||||
Operating margin
|
40.2
|
%
|
54.3
|
%
|
||||
Operating margin before management fee
|
44.0
|
%
|
56.2
|
%
|
|
Year Ended December 31,
|
Increase (decrease)
|
|||||||||||||||
|
2016
|
2015
|
$ |
|
%
|
||||||||||||
Investment advisory
|
$
|
293.1
|
$
|
325.6
|
$
|
(32.5
|
)
|
(10.0 | ) | ||||||||
Incentive fees
|
15.4
|
4.4
|
11.0
|
250.0 | |||||||||||||
Distribution fees and other income
|
44.5
|
51.0
|
(6.5
|
)
|
(12.7 | ) | |||||||||||
Total revenues
|
$
|
353.0
|
$
|
381.0
|
$
|
(28.0
|
)
|
(7.3 | ) |
|
2016
|
2015
|
||||||
Revenues
|
$
|
353,000
|
$
|
380,976
|
||||
Operating income
|
191,796
|
147,949
|
||||||
Add back: management fee expense
|
6,518
|
15,503
|
||||||
Operating income before management fee
|
$
|
198,314
|
$
|
163,452
|
||||
|
||||||||
Operating margin
|
54.3
|
%
|
38.8
|
%
|
||||
|
||||||||
Operating margin before management fee
|
56.2
|
%
|
42.9
|
%
|
|
Full Year Ended December 31, 2016
|
|||||||||||
|
||||||||||||
|
Reported
|
Impact of
|
||||||||||
|
GAAP
|
2016 DCCA
|
Non-GAAP
|
|||||||||
Revenues
|
||||||||||||
Investment advisory and incentive fees
|
$
|
308,459
|
$
|
-
|
$
|
308,459
|
||||||
Distribution fees and other income
|
44,541
|
-
|
44,541
|
|||||||||
Total revenues
|
353,000
|
-
|
353,000
|
|||||||||
Expenses
|
||||||||||||
Compensation
|
82,613
|
45,734
|
128,347
|
|||||||||
Stock based compensation
|
3,959
|
-
|
3,959
|
|||||||||
Management fee
|
6,518
|
7,782
|
14,300
|
|||||||||
Distribution costs
|
44,189
|
-
|
44,189
|
|||||||||
Other operating expenses
|
23,925
|
-
|
23,925
|
|||||||||
Total expenses
|
161,204
|
53,516
|
214,720
|
|||||||||
|
||||||||||||
Operating income
|
191,796
|
(53,516
|
)
|
138,280
|
||||||||
Other income (expense)
|
-
|
|||||||||||
Net gain from investments
|
1,594
|
-
|
1,594
|
|||||||||
Interest and dividend income
|
1,511
|
-
|
1,511
|
|||||||||
Interest expense
|
(12,674
|
)
|
-
|
(12,674
|
)
|
|||||||
Total other expense, net
|
(9,569
|
)
|
-
|
(9,569
|
)
|
|||||||
Income before income taxes
|
182,227
|
(53,516
|
)
|
128,711
|
||||||||
Income tax provision
|
65,106
|
(20,069
|
)
|
45,037
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
117,121
|
$
|
(33,447
|
)
|
$
|
83,674
|
|||||
|
||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||||||
Basic
|
$
|
4.01
|
$
|
(1.15
|
)
|
$
|
2.87
|
|||||
Diluted
|
$
|
3.92
|
$
|
(1.11
|
)
|
$
|
2.81
|
|
December 31, 2017
|
|||||||||||||||||||
|
Impact of
|
Impact of
|
||||||||||||||||||
|
Reported
|
Fourth Quarter
|
First Half
|
Impact of
|
||||||||||||||||
|
GAAP
|
2017 DCCA
|
2017 DCCA
|
2016 DCCA
|
Non-GAAP
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
17,821
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
17,821
|
||||||||||
Investments in securities
|
36,790
|
-
|
-
|
-
|
36,790
|
|||||||||||||||
Receivable from brokers
|
1,578
|
-
|
-
|
-
|
1,578
|
|||||||||||||||
Investment advisory fees receivable
|
38,712
|
-
|
-
|
-
|
38,712
|
|||||||||||||||
Receivable from affiliates
|
6,908
|
-
|
-
|
-
|
6,908
|
|||||||||||||||
Income tax receivable
|
15,615
|
2,917
|
2,892
|
8,064
|
29,488
|
|||||||||||||||
Other assets
|
10,862
|
-
|
-
|
-
|
10,862
|
|||||||||||||||
Total assets
|
$
|
128,286
|
$
|
2,917
|
$
|
2,892
|
$
|
8,064
|
$
|
142,159
|
||||||||||
|
||||||||||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Payable to brokers
|
14,926
|
-
|
-
|
-
|
14,926
|
|||||||||||||||
Income taxes payable and deferred tax liabilities
|
3,128
|
-
|
-
|
-
|
3,128
|
|||||||||||||||
Capital lease obligation
|
4,943
|
-
|
-
|
-
|
4,943
|
|||||||||||||||
Compensation payable
|
82,907
|
12,414
|
12,307
|
34,315
|
141,943
|
|||||||||||||||
Payable to affiliates
|
855
|
-
|
-
|
-
|
855
|
|||||||||||||||
Accrued expenses and other liabilities
|
28,656
|
-
|
-
|
-
|
28,656
|
|||||||||||||||
Sub-total
|
135,415
|
12,414
|
12,307
|
34,315
|
194,451
|
|||||||||||||||
|
||||||||||||||||||||
AC 4% PIK Note (due November 30, 2020)
|
50,000
|
-
|
-
|
-
|
50,000
|
|||||||||||||||
5.875% Senior notes (due June 1, 2021)
|
24,144
|
-
|
-
|
-
|
24,144
|
|||||||||||||||
AC 1.6% Note Payable (due February 28, 2018)
|
15,000
|
-
|
-
|
-
|
15,000
|
|||||||||||||||
Total liabilities
|
224,559
|
12,414
|
12,307
|
34,315
|
283,595
|
|||||||||||||||
|
||||||||||||||||||||
Equity
|
||||||||||||||||||||
GAMCO Investors, Inc. stockholders' equity
|
||||||||||||||||||||
Class A Common Stock
|
14
|
-
|
-
|
-
|
14
|
|||||||||||||||
Class B Common Stock
|
19
|
-
|
-
|
-
|
19
|
|||||||||||||||
Additional paid-in capital
|
12,572
|
-
|
-
|
-
|
12,572
|
|||||||||||||||
Retained earnings (deficit)
|
155,939
|
(9,497
|
)
|
(9,415
|
)
|
(26,251
|
)
|
110,776
|
||||||||||||
Accumulated other comprehensive income
|
11,876
|
-
|
-
|
-
|
11,876
|
|||||||||||||||
Treasury stock, at cost
|
(276,693
|
)
|
-
|
-
|
-
|
(276,693
|
)
|
|||||||||||||
Total GAMCO Investors, Inc. stockholders' equity (deficit)
|
(96,273
|
)
|
(9,497
|
)
|
(9,415
|
)
|
(26,251
|
)
|
(141,436
|
)
|
||||||||||
Total liabilities and equity (deficit)
|
$
|
128,286
|
$
|
2,917
|
$
|
2,892
|
$
|
8,064
|
$
|
142,159
|
|
Year Ended December 31,
|
|||||||||||
|
2017
|
2016
|
2015
|
|||||||||
(in thousands)
|
||||||||||||
Cash flows provided by (used in) from continuing operations:
|
||||||||||||
Operating activities
|
$
|
126,691
|
$
|
115,737
|
$
|
117,130
|
||||||
Investing activities
|
237
|
(1,435
|
)
|
(6,198
|
)
|
|||||||
Financing activities
|
(148,902
|
)
|
(88,247
|
)
|
(109,923
|
)
|
||||||
Increase (decrease) in cash and cash equivalents from continuing operations
|
(21,974
|
)
|
26,055
|
1,009
|
||||||||
Cash flows from discontinued operations
|
||||||||||||
Operating activities
|
-
|
-
|
54,335
|
|||||||||
Investing activities
|
-
|
-
|
(41,463
|
)
|
||||||||
Financing activities
|
-
|
-
|
(12,871
|
)
|
||||||||
Increase in cash and cash equivalents from discontinued operations
|
-
|
-
|
1
|
|||||||||
Effect of exchange rates on cash and cash equivalents
|
(17
|
)
|
38
|
15
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(21,991
|
)
|
26,093
|
1,025
|
||||||||
Cash and cash equivalents at beginning of year
|
39,812
|
13,719
|
12,694
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
17,821
|
$
|
39,812
|
$
|
13,719
|
Fair Value
|
Fair Value
|
|||||||||||
assuming
|
assuming
|
|||||||||||
10% decrease in
|
10% increase in
|
|||||||||||
Fair Value
|
equity prices
|
equity prices
|
||||||||||
At December 31, 2017
|
||||||||||||
Equity price sensitive investments, at fair value
|
$
|
36,790
|
$
|
33,111
|
$
|
40,470
|
||||||
At December 31, 2016
|
||||||||||||
Equity price sensitive investments, at fair value
|
$
|
37,285
|
$
|
33,557
|
$
|
41,014
|
|
Total
|
2018
|
2019
|
2020
|
2021
|
2022
|
Thereafter
|
|||||||||||||||||||||
Contractual Obligations:
|
||||||||||||||||||||||||||||
5.875% Senior notes
|
$
|
24,225
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
24,225
|
$
|
-
|
$
|
-
|
||||||||||||||
Interest on 5.875% Senior notes
|
4,862
|
1,423
|
1,423
|
1,423
|
593
|
-
|
-
|
|||||||||||||||||||||
AC 4% PIK Note
|
50,000
|
-
|
-
|
50,000
|
-
|
-
|
-
|
|||||||||||||||||||||
Interest on AC 4% PIK Note
|
5,833
|
2,000
|
2,000
|
1,833
|
-
|
-
|
-
|
|||||||||||||||||||||
AC 1.6% Note
|
15,000
|
15,000
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Interest on 1.6% Note
|
44
|
44
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Capital lease obligations
|
12,030
|
1,230
|
1,080
|
1,080
|
1,080
|
1,080
|
6,480
|
|||||||||||||||||||||
Non-cancelable operating lease obligations
|
1,385
|
808
|
479
|
47
|
47
|
4
|
-
|
|||||||||||||||||||||
Total
|
$
|
113,379
|
$
|
20,505
|
$
|
4,982
|
$
|
54,383
|
$
|
25,945
|
$
|
1,084
|
$
|
6,480
|
Page
|
|
Report of Independent Registered Public Accounting Firm
|
46
|
Report of Independent Registered Public Accounting Firm on Effectiveness of Internal Control over Financial Reporting
|
47
|
Consolidated Financial Statements:
|
|
Consolidated Statements of Income for the years ended December 31, 2017, 2016 and 2015
|
48
|
Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 2016 and 2015
|
49
|
Consolidated Statements of Financial Condition at December 31, 2017 and 2016
|
50
|
Consolidated Statements of Equity for the years ended December 31, 2017, 2016 and 2015
|
51
|
Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015
|
54
|
Notes to Consolidated Financial Statements
|
56
|
Year Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Revenues
|
||||||||||||
Investment advisory and incentive fees
|
$
|
316,705
|
$
|
308,459
|
$
|
329,965
|
||||||
Distribution fees and other income
|
43,819
|
44,541
|
51,011
|
|||||||||
Total revenues
|
360,524
|
353,000
|
380,976
|
|||||||||
Expenses
|
||||||||||||
Compensation
|
125,501
|
82,613
|
136,503
|
|||||||||
Stock based compensation
|
8,669
|
3,959
|
9,868
|
|||||||||
Management fee
|
13,666
|
6,518
|
15,503
|
|||||||||
Distribution costs
|
44,447
|
44,189
|
51,990
|
|||||||||
Other operating expenses
|
23,221
|
23,925
|
19,163
|
|||||||||
Total expenses
|
215,504
|
161,204
|
233,027
|
|||||||||
Operating income
|
145,020
|
191,796
|
147,949
|
|||||||||
Other income (expense)
|
||||||||||||
Net gain from investments
|
3,115
|
1,594
|
4,953
|
|||||||||
Extinguishment of debt
|
(3,300
|
)
|
0
|
(1,067
|
)
|
|||||||
Interest and dividend income
|
2,350
|
1,511
|
2,222
|
|||||||||
Interest expense
|
(10,160
|
)
|
(12,674
|
)
|
(8,636
|
)
|
||||||
Charitable contributions
|
(4,137
|
)
|
-
|
(6,396
|
)
|
|||||||
Total other income (expense), net
|
(12,132
|
)
|
(9,569
|
)
|
(8,924
|
)
|
||||||
Income before income taxes
|
132,888
|
182,227
|
139,025
|
|||||||||
Income tax provision
|
55,079
|
65,106
|
51,726
|
|||||||||
Income from continuing operations
|
77,809
|
117,121
|
87,299
|
|||||||||
Loss from discontinued operations, net of taxes
|
-
|
0
|
(3,887
|
)
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
77,809
|
$
|
117,121
|
$
|
83,412
|
||||||
Net income per share attributable to GAMCO Investors, Inc.'s shareholders:
|
||||||||||||
Basic - Continuing operations
|
$
|
2.68
|
$
|
4.01
|
$
|
3.43
|
||||||
Basic - Discontinued operations
|
-
|
-
|
(0.15
|
)
|
||||||||
Basic - Total
|
$
|
2.68
|
$
|
4.01
|
$
|
3.28
|
||||||
Diluted - Continuing operations
|
$
|
2.60
|
$
|
3.92
|
$
|
3.40
|
||||||
Diluted - Discontinued operations
|
-
|
-
|
(0.15
|
)
|
||||||||
Diluted - Total
|
$
|
2.60
|
$
|
3.92
|
$
|
3.24
|
||||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
28,980
|
29,182
|
25,425
|
|||||||||
Diluted
|
30,947
|
30,170
|
25,711
|
|||||||||
Actual shares outstanding
|
28,974
|
29,463
|
29,821
|
Year Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
77,809
|
$
|
117,121
|
$
|
83,412
|
||||||
Other comprehensive income/(loss), net of tax:
|
||||||||||||
Foreign currency translation
|
82
|
(164
|
)
|
(46
|
)
|
|||||||
Net unrealized gains/(losses) on securities available for sale (a)
|
523
|
2,320
|
(8,300
|
)
|
||||||||
Other comprehensive income/(loss)
|
605
|
2,156
|
(8,346
|
)
|
||||||||
Comprehensive income attributable to GAMCO Investors, Inc.
|
$
|
78,414
|
$
|
119,277
|
$
|
75,066
|
December 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
17,821
|
$
|
39,812
|
||||
Investments in securities
|
36,790
|
37,285
|
||||||
Receivable from brokers
|
1,578
|
453
|
||||||
Investment advisory fees receivable
|
38,712
|
43,736
|
||||||
Receivable from affiliates
|
5,635
|
5,960
|
||||||
Capital lease
|
2,304
|
2,514
|
||||||
Goodwill and identifiable intangible assets
|
3,765
|
3,765
|
||||||
Income tax receivable and deferred tax assets, net
|
15,615
|
9,349
|
||||||
Other assets
|
6,066
|
6,355
|
||||||
Total assets
|
$
|
128,286
|
$
|
149,229
|
||||
LIABILITIES AND EQUITY
|
||||||||
Payable to brokers
|
$
|
14,926
|
$
|
66
|
||||
Income taxes payable
|
3,128
|
3,815
|
||||||
Capital lease obligation
|
4,943
|
5,066
|
||||||
Compensation payable
|
82,907
|
42,384
|
||||||
Payable to affiliates
|
855
|
1,412
|
||||||
Accrued expenses and other liabilities
|
28,656
|
29,178
|
||||||
Sub-total
|
135,415
|
81,921
|
||||||
AC 4% PIK Note (due November 30, 2020) (Note F)
|
50,000
|
100,000
|
||||||
4.5% Convertible note (due August 15, 2021) (Note F)
|
-
|
109,835
|
||||||
5.875% Senior notes (due June 1, 2021) (Note F)
|
24,144
|
24,120
|
||||||
AC 1.6% Note (due February 28, 2018) (Note F)
|
15,000
|
-
|
||||||
Total liabilities
|
224,559
|
315,876
|
||||||
Commitments and contingencies (Note I)
|
||||||||
Equity:
|
||||||||
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued and outstanding
|
-
|
-
|
||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized; 15,541,489 and 15,477,082
|
||||||||
shares issued, respectively; 9,949,482 and 10,369,601 shares outstanding, respectively
|
14
|
14
|
||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 24,000,000 shares issued
|
||||||||
and 19,024,404 and 19,093,311 shares outstanding, respectively
|
19
|
19
|
||||||
Additional paid-in capital
|
12,572
|
3,903
|
||||||
Retained earnings
|
155,939
|
80,515
|
||||||
Accumulated comprehensive income
|
11,876
|
11,271
|
||||||
Treasury stock, at cost (5,592,007 and 5,107,481 shares, respectively)
|
(276,693
|
)
|
(262,369
|
)
|
||||
Total deficit
|
(96,273
|
)
|
(166,647
|
)
|
||||
Total liabilities and equity
|
$
|
128,286
|
$
|
149,229
|
GAMCO Investors, Inc. shareholders
|
||||||||||||||||||||||||||||||||
Additional
|
Retained |
Accumulated
|
Redeemable
|
|||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Paid-in
|
Earnings
|
Comprehensive
|
Treasury
|
Noncontrolling
|
||||||||||||||||||||||||||
Interests
|
Stock
|
Capital
|
(Deficit)
|
Income
|
Stock
|
Total
|
Interests
|
|||||||||||||||||||||||||
Balance at December 31, 2014
|
$
|
2,734
|
$
|
33
|
$
|
291,681
|
$
|
602,950
|
$
|
25,014
|
$
|
(394,617
|
)
|
$
|
527,795
|
$
|
68,334
|
|||||||||||||||
Net income
|
-
|
-
|
-
|
83,412
|
-
|
-
|
83,412
|
-
|
||||||||||||||||||||||||
Net unrealized losses on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax benefit $(3,213)
|
-
|
-
|
-
|
-
|
(5,471
|
)
|
-
|
(5,471
|
)
|
-
|
||||||||||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||||||||||
net of income tax benefit $(1,662)
|
-
|
-
|
-
|
-
|
(2,829
|
)
|
-
|
(2,829
|
)
|
-
|
||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
(46
|
)
|
-
|
(46
|
)
|
-
|
||||||||||||||||||||||
Dividends declared ($0.28 per
|
||||||||||||||||||||||||||||||||
share)
|
-
|
-
|
-
|
(7,477
|
)
|
-
|
-
|
(7,477
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
9,868
|
-
|
-
|
-
|
9,868
|
-
|
||||||||||||||||||||||||
Reduction of deferred tax asset | ||||||||||||||||||||||||||||||||
for excess of recorded RSA tax | ||||||||||||||||||||||||||||||||
benefit over actual tax benefit
|
-
|
-
|
(1,190
|
)
|
-
|
-
|
-
|
(1,190
|
)
|
-
|
||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||
including tax benefit $(102)
|
-
|
-
|
1,269
|
-
|
-
|
-
|
1,269
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(27,249
|
)
|
(27,249
|
)
|
-
|
||||||||||||||||||||||
Issuance of 4.4 million treasury | ||||||||||||||||||||||||||||||||
shares to GCIA
|
-
|
-
|
(20,270
|
)
|
-
|
-
|
170,270
|
150,000
|
-
|
|||||||||||||||||||||||
Spin-off of AC
|
(2,734
|
)
|
-
|
(281,013
|
)
|
(713,109
|
)
|
(7,553
|
)
|
-
|
(1,004,409
|
)
|
(68,334
|
)
|
||||||||||||||||||
Balance at December 31, 2015
|
$
|
-
|
$
|
33
|
$
|
345
|
$
|
(34,224
|
)
|
$
|
9,115
|
$
|
(251,596
|
)
|
$
|
(276,327
|
)
|
$
|
-
|
GAMCO Investors, Inc. shareholders
|
|||||||||||||||||||||||||||
Additional
|
Retained
|
Accumulated
|
|||||||||||||||||||||||||
Common
|
Paid-in
|
Earnings
|
Comprehensive
|
Treasury
|
|||||||||||||||||||||||
Stock
|
Capital
|
(Deficit)
|
Income
|
Stock
|
Total
|
||||||||||||||||||||||
Balance at December 31, 2015
|
$
|
33
|
$
|
345
|
$
|
(34,224
|
)
|
$
|
9,115
|
$
|
(251,596
|
)
|
$
|
(276,327
|
)
|
||||||||||||
Net income
|
-
|
-
|
117,121
|
-
|
-
|
117,121
|
|||||||||||||||||||||
Net unrealized gains on
|
|||||||||||||||||||||||||||
securities available for sale,
|
|||||||||||||||||||||||||||
net of income tax expense ($1,857)
|
-
|
-
|
-
|
3,111
|
-
|
3,111
|
|||||||||||||||||||||
Amounts reclassified from
|
|||||||||||||||||||||||||||
accumulated other
|
|||||||||||||||||||||||||||
comprehensive income,
|
|||||||||||||||||||||||||||
net of income tax benefit ($464)
|
-
|
-
|
-
|
(791
|
)
|
-
|
(791
|
)
|
|||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
(164
|
)
|
-
|
(164
|
)
|
|||||||||||||||||||
Dividends declared ($0.08 per
|
|||||||||||||||||||||||||||
share)
|
-
|
-
|
(2,382
|
)
|
-
|
-
|
(2,382
|
)
|
|||||||||||||||||||
Stock based compensation
|
|||||||||||||||||||||||||||
expense
|
-
|
3,959
|
-
|
-
|
-
|
3,959
|
|||||||||||||||||||||
Reduction of deferred tax asset
|
|||||||||||||||||||||||||||
for excess of recorded RSA tax
|
|||||||||||||||||||||||||||
benefit over actual tax benefit
|
-
|
(401
|
)
|
-
|
-
|
-
|
(401
|
)
|
|||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
(10,773
|
)
|
(10,773
|
)
|
|||||||||||||||||||
Balance at December 31, 2016
|
$
|
33
|
$
|
3,903
|
$
|
80,515
|
$
|
11,271
|
$
|
(262,369
|
)
|
$
|
(166,647
|
)
|
GAMCO Investors, Inc. shareholders
|
||||||||||||||||||||||||
Additional
|
|
Accumulated
|
||||||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
||||||||||||||||||||
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
|||||||||||||||||||
Balance at December 31, 2016
|
$
|
33
|
$
|
3,903
|
$
|
80,515
|
$
|
11,271
|
$
|
(262,369
|
)
|
$
|
(166,647
|
)
|
||||||||||
Net income
|
-
|
-
|
77,809
|
-
|
-
|
77,809
|
||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||
net of income tax expense ($1,446)
|
-
|
-
|
-
|
2,492
|
-
|
2,492
|
||||||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||
net of income tax benefit $(1,156)
|
-
|
-
|
-
|
(1,969
|
)
|
-
|
(1,969
|
)
|
||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
82
|
-
|
82
|
||||||||||||||||||
Dividends declared ($0.08 per
|
||||||||||||||||||||||||
share)
|
-
|
-
|
(2,385
|
)
|
-
|
-
|
(2,385
|
)
|
||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||
expense
|
-
|
8,669
|
-
|
-
|
-
|
8,669
|
||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
(14,324
|
)
|
(14,324
|
)
|
||||||||||||||||
Balance at December 31, 2017
|
$
|
33
|
$
|
12,572
|
$
|
155,939
|
$
|
11,876
|
$
|
(276,693
|
)
|
$
|
(96,273
|
)
|
Year Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Operating activities
|
||||||||||||
Net income
|
$
|
77,809
|
$
|
117,121
|
$
|
83,412
|
||||||
Loss from discontinued operations, net of taxes
|
-
|
-
|
3,887
|
|||||||||
Income from continuing operations
|
77,809
|
117,121
|
87,299
|
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||
from continuing operations:
|
||||||||||||
Depreciation and amortization
|
595
|
625
|
618
|
|||||||||
Stock based compensation expense
|
8,669
|
3,959
|
9,868
|
|||||||||
Deferred income taxes
|
(5,451
|
)
|
(5,537
|
)
|
1,166
|
|||||||
Tax benefit from exercise of stock options
|
-
|
-
|
102
|
|||||||||
Foreign currency translation gain/(loss)
|
82
|
(164
|
)
|
(46
|
)
|
|||||||
Donated securities
|
1,124
|
499
|
1,945
|
|||||||||
Gains on sales of available for sale securities
|
(62
|
)
|
(4
|
)
|
(6
|
)
|
||||||
Accretion of zero coupon debentures
|
-
|
-
|
628
|
|||||||||
Loss on extinguishment of debt
|
3,300
|
-
|
1,067
|
|||||||||
Acquisition of identifiable intangible asset
|
-
|
-
|
(1,661
|
)
|
||||||||
(Increase) decrease in assets:
|
||||||||||||
Investments in trading securities
|
8
|
186
|
(240
|
)
|
||||||||
Receivable from affiliates
|
329
|
(927
|
)
|
21,393
|
||||||||
Receivable from brokers
|
(1,125
|
)
|
638
|
592
|
||||||||
Investment advisory fees receivable
|
5,024
|
(12,688
|
)
|
6,679
|
||||||||
Income tax receivable and deferred tax assets
|
(6,267
|
)
|
(2,562
|
)
|
(4,354
|
)
|
||||||
Other assets
|
(73
|
)
|
(69
|
)
|
529
|
|||||||
Increase (decrease) in liabilities:
|
||||||||||||
Payable to affiliates
|
(557
|
)
|
(6,275
|
)
|
7,333
|
|||||||
Payable to brokers
|
(990
|
)
|
54
|
1
|
||||||||
Income taxes payable and deferred tax liabilities
|
4,473
|
2,768
|
(10,401
|
)
|
||||||||
Compensation payable
|
40,517
|
17,969
|
(6,369
|
)
|
||||||||
Accrued expenses and other liabilities
|
(714
|
)
|
144
|
987
|
||||||||
Total adjustments
|
48,882
|
(1,384
|
)
|
29,831
|
||||||||
Net cash provided by operating activities from continuing operations
|
$
|
126,691
|
$
|
115,737
|
$
|
117,130
|
Year Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Investing activities
|
||||||||||||
Purchases of available for sale securities
|
$
|
(3,932
|
)
|
$
|
(1,843
|
)
|
$
|
(6,279
|
)
|
|||
Proceeds from sales of available for sale securities
|
4,169
|
408
|
81
|
|||||||||
Net cash provided by (used in) investing activities from continuing operations
|
237
|
(1,435
|
)
|
(6,198
|
)
|
|||||||
Financing activities
|
||||||||||||
Repurchase of Zero coupon subordinated debentures due December 31, 2015
|
-
|
-
|
(13,101
|
)
|
||||||||
Repurchase of 5.875% Senior note due June 1, 2021
|
-
|
-
|
(76,533
|
)
|
||||||||
Repurchases of AC 4% PIK Note
|
(50,000
|
)
|
(150,000
|
)
|
-
|
|||||||
Proceeds from 4.5% Convertible note due August 15, 2021
|
-
|
109,826
|
-
|
|||||||||
Repayment of 4.5% Convertible note due August 15, 2021
|
(113,300
|
)
|
-
|
-
|
||||||||
Repayment of GGCP loan due December 28, 2016
|
-
|
(35,000
|
)
|
-
|
||||||||
Proceeds from GGCP due December 28, 2016
|
-
|
-
|
35,000
|
|||||||||
Proceeds from 1.6% AC Note due February 28, 2018
|
15,000
|
-
|
-
|
|||||||||
Margin loan borrowings
|
20,850
|
-
|
-
|
|||||||||
Margin loan repayments
|
(5,000 | ) | - | - | ||||||||
Amortization of debt issuance costs
|
187
|
33
|
-
|
|||||||||
Net cash transferred to AC
|
-
|
-
|
(21,739
|
)
|
||||||||
Proceeds from exercise of stock options
|
-
|
-
|
1,167
|
|||||||||
Dividends paid
|
(2,315
|
)
|
(2,333
|
)
|
(7,468
|
)
|
||||||
Purchase of treasury stock
|
(14,324
|
)
|
(10,773
|
)
|
(27,249
|
)
|
||||||
Net cash used in financing activities from continuing operations
|
(148,902
|
)
|
(88,247
|
)
|
(109,923
|
)
|
||||||
Cash flows of discontinued operations
|
||||||||||||
Net cash provided by operating activities
|
-
|
-
|
54,335
|
|||||||||
Net cash used in investing activities
|
-
|
-
|
(41,463
|
)
|
||||||||
Net cash used in financing activities
|
-
|
-
|
(12,871
|
)
|
||||||||
Net cash provided by discontinued operations
|
-
|
-
|
1
|
|||||||||
Effect of exchange rates on cash and cash equivalents
|
(17
|
)
|
38
|
15
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(21,991
|
)
|
26,093
|
1,025
|
||||||||
Cash and cash equivalents at beginning of period
|
39,812
|
13,719
|
12,694
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
17,821
|
$
|
39,812
|
$
|
13,719
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid for interest
|
$
|
12,180
|
$
|
11,274
|
$
|
7,011
|
||||||
Cash paid for taxes
|
$
|
62,259
|
$
|
75,238
|
$
|
59,657
|
·
|
GBL;
|
·
|
Our wholly-owned subsidiaries: Gabelli Funds, LLC (“Funds Advisor”), GAMCO Asset Management Inc. (“GAMCO”), Distributors Holdings, Inc. (“DHI”), G.distributors, LLC (“G.distributors”), GAMCO Asset Management (UK) Limited, Gabelli Fixed Income, Inc. (“Fixed Income”), GAMCO International Partners LLC, and GAMCO Acquisition LLC.
|
-
|
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. Level 1 assets include cash equivalents, government obligations, open-end funds, closed-end funds and equities.
|
-
|
Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities that are not active and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly-quoted intervals. Assets that generally are included in this category may include certain limited partnership interests in private funds and over the counter derivatives that have inputs to the valuations that can generally be corroborated by observable market data.
|
-
|
Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Assets included in this category generally include equities that trade infrequently and direct private equity investments held within consolidated partnerships.
|
2017
|
2016
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Trading securities:
|
||||||||||||||||
Common stocks
|
$
|
26
|
$
|
34
|
$
|
51
|
$
|
54
|
||||||||
Mutual Funds
|
11
|
11
|
-
|
-
|
||||||||||||
Total trading securities
|
37
|
45
|
51
|
54
|
||||||||||||
Available for sale securities:
|
||||||||||||||||
Common stocks
|
17,441
|
36,637
|
18,739
|
37,131
|
||||||||||||
Closed-end funds
|
99
|
108
|
99
|
100
|
||||||||||||
Total available for sale securities
|
17,540
|
36,745
|
18,838
|
37,231
|
||||||||||||
Total investments in securities
|
$
|
17,577
|
$
|
36,790
|
$
|
18,889
|
$
|
37,285
|
December 31, 2017
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Common stocks
|
$
|
17,441
|
$
|
19,196
|
$
|
-
|
$
|
36,637
|
||||||||
Closed-end Funds
|
$
|
99
|
$
|
9
|
$
|
-
|
$
|
108
|
||||||||
Total available for sale securities
|
$
|
17,540
|
$
|
19,205
|
$
|
-
|
$
|
36,745
|
December 31, 2016
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Common stocks
|
$
|
18,739
|
$
|
18,392
|
$
|
-
|
$
|
37,131
|
||||||||
Closed-end funds
|
99
|
1
|
-
|
100
|
||||||||||||
Total available for sale securities
|
$
|
18,838
|
$
|
18,393
|
$
|
-
|
$
|
37,231
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
December 31,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2017
|
||||||||||||
Cash equivalents
|
$
|
17,475
|
$
|
-
|
$
|
-
|
$
|
17,475
|
||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
36,637
|
-
|
-
|
36,637
|
||||||||||||
AFS - Closed-end Funds
|
108
|
-
|
-
|
108
|
||||||||||||
Trading - Common stocks
|
34
|
-
|
-
|
34
|
||||||||||||
Trading - Mutual Funds
|
11
|
-
|
-
|
11
|
||||||||||||
Total investments in securities
|
36,790
|
-
|
-
|
36,790
|
||||||||||||
Total assets at fair value
|
$
|
54,265
|
$
|
-
|
$
|
-
|
$
|
54,265
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
December 31,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2016
|
||||||||||||
Cash equivalents
|
$
|
39,638
|
$
|
-
|
$
|
-
|
$
|
39,638
|
||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
37,131
|
-
|
-
|
37,131
|
||||||||||||
AFS - Closed-end Funds
|
100
|
-
|
-
|
100
|
||||||||||||
Trading - Common stocks
|
54
|
-
|
-
|
54
|
||||||||||||
Total investments in securities
|
37,285
|
-
|
-
|
37,285
|
||||||||||||
Total assets at fair value
|
$
|
76,923
|
$
|
-
|
$
|
-
|
$
|
76,923
|
2017
|
2016
|
2015
|
||||||||||
(In thousands)
|
||||||||||||
Federal:
|
||||||||||||
Current
|
$
|
54,318
|
$
|
63,991
|
$
|
47,699
|
||||||
Deferred
|
(3,670
|
)
|
(4,424
|
)
|
(1,441
|
)
|
||||||
State and local:
|
||||||||||||
Current
|
6,212
|
6,652
|
5,359
|
|||||||||
Deferred
|
(1,781
|
)
|
(1,113
|
)
|
109
|
|||||||
Total
|
$
|
55,079
|
$
|
65,106
|
$
|
51,726
|
2017
|
2016
|
2015
|
||||||
Statutory Federal income tax rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||
State income tax, net of Federal benefit
|
0.5
|
1.0
|
2.7
|
|||||
Impact of Tax Act
|
6.2
|
-
|
-
|
|||||
Other
|
(0.3)
|
(0.3)
|
(0.5)
|
|||||
Effective income tax rate
|
41.4
|
%
|
35.7
|
%
|
37.2
|
%
|
2017
|
2016
|
|||||||
(In thousands)
|
||||||||
Deferred tax assets:
|
||||||||
Stock compensation expense
|
$
|
110
|
$
|
4,006
|
||||
Deferred compensation
|
14,740
|
7,629
|
||||||
Capital lease obligation
|
633
|
944
|
||||||
Other
|
238
|
311
|
||||||
Total deferred tax assets
|
15,721
|
12,890
|
||||||
Deferred tax liabilities:
|
||||||||
Investments in securities available for sale
|
(4,609
|
)
|
(6,805
|
)
|
||||
Contingent deferred sales commissions
|
(189
|
)
|
(322
|
)
|
||||
Intangible asset amortization
|
(233
|
)
|
(235
|
)
|
||||
Other
|
(10
|
)
|
(9
|
)
|
||||
Total deferred tax liabilities
|
(5,041
|
)
|
(7,371
|
)
|
||||
Net deferred tax assets (liabilities)
|
$
|
10,680
|
$
|
5,519
|
(in millions)
|
||||
Balance at December 31, 2014
|
$
|
16.0
|
||
Additions based on tax positions related to the current year
|
2.8
|
|||
Additions for tax positions of prior years
|
0.1
|
|||
Reductions for tax positions of prior years
|
(0.5
|
)
|
||
Settlements
|
-
|
|||
Balance at December 31, 2015
|
18.4
|
|||
Additions based on tax positions related to the current year
|
2.3
|
|||
Additions for tax positions of prior years
|
1.2
|
|||
Reductions for tax positions of prior years
|
(6.9
|
)
|
||
Settlements
|
-
|
|||
Balance at December 31, 2016
|
15.0
|
|||
Additions based on tax positions related to the current year
|
2.2
|
|||
Additions for tax positions of prior years
|
-
|
|||
Reductions for tax positions of prior years
|
(3.9
|
)
|
||
Settlements
|
-
|
|||
Balance at December 31, 2017
|
$
|
13.3
|
·
|
$10.9 million tax expense related to the revaluation of certain deferred income tax assets;
|
·
|
$2.7 million non-cash tax benefit related to the revaluation of certain deferred income tax liabilities
|
For the Years Ending December 31,
|
||||||||||||
(In thousands, except per share amounts)
|
2017
|
2016
|
2015
|
|||||||||
Basic:
|
||||||||||||
Income from continuing operations
|
$
|
77,809
|
$
|
117,121
|
$
|
87,299
|
||||||
Loss from discontinued operations, net of taxes
|
-
|
-
|
(3,887
|
)
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s
shareholders
|
$
|
77,809
|
$
|
117,121
|
$
|
83,412
|
||||||
Weighted average shares outstanding
|
28,980
|
29,182
|
25,425
|
|||||||||
Basic net income per share attributable to GAMCO
|
||||||||||||
Investors, Inc.'s shareholders
|
||||||||||||
Continuing operations
|
$
|
2.68
|
$
|
4.01
|
$
|
3.43
|
||||||
Discontinued operations
|
-
|
-
|
(0.15
|
)
|
||||||||
Total
|
$
|
2.68
|
$
|
4.01
|
$
|
3.28
|
||||||
Diluted:
|
||||||||||||
Income from continuing operations
|
$
|
77,809
|
$
|
117,121
|
$
|
87,299
|
||||||
Add interest on convertible notes, net of management fee and taxes
|
2,604
|
1,133
|
-
|
|||||||||
Total income from continuing operations
|
80,413
|
118,254
|
87,299
|
|||||||||
Loss from discontinued operations, net of taxes
|
-
|
-
|
(3,887
|
)
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
80,413
|
$
|
118,254
|
$
|
83,412
|
||||||
Weighted average share outstanding
|
28,980
|
29,182
|
25,425
|
|||||||||
Dilutive stock options and restricted stock awards
|
192
|
234
|
286
|
|||||||||
Assumed conversion of convertible notes
|
1,775
|
754
|
-
|
|||||||||
Total
|
30,947
|
30,170
|
25,711
|
|||||||||
Diluted net income per share attributable to GAMCO
|
||||||||||||
Investors, Inc.'s shareholders
|
||||||||||||
Continuing operations
|
$
|
2.60
|
$
|
3.92
|
$
|
3.40
|
||||||
Discontinued operations
|
-
|
-
|
(0.15
|
)
|
||||||||
Total
|
$
|
2.60
|
$
|
3.92
|
$
|
3.24
|
December 31, 2017
|
December 31, 2016
|
|||||||||||||||
Carrying
|
Fair Value
|
Carrying
|
Fair Value
|
|||||||||||||
Value
|
Level 2
|
Value
|
Level 2
|
|||||||||||||
(In thousands)
|
||||||||||||||||
4.5% Convertible note
|
$
|
-
|
$
|
-
|
$
|
109,835
|
$
|
111,525
|
||||||||
AC 4% PIK Note
|
50,000
|
50,572
|
100,000
|
100,930
|
||||||||||||
AC 1.6% Note
|
15,000
|
14,972
|
-
|
-
|
||||||||||||
5.875% Senior notes
|
24,144
|
24,543
|
24,120
|
24,558
|
||||||||||||
Total
|
$
|
89,144
|
$
|
90,087
|
$
|
233,955
|
$
|
237,013
|
Options
|
RSAs
|
|||||||||||||||
Weighted Average
|
||||||||||||||||
Weighted Average
|
Grant Date
|
|||||||||||||||
Shares
|
Exercise Price
|
Shares
|
Fair Value
|
|||||||||||||
Outstanding at December 31, 2015
|
-
|
$
|
-
|
553,100
|
$
|
64.02
|
||||||||||
Granted
|
-
|
-
|
-
|
-
|
||||||||||||
Forfeited
|
-
|
-
|
(9,300
|
)
|
64.85
|
|||||||||||
Exercised / Vested
|
-
|
-
|
(119,460
|
)
|
57.86
|
|||||||||||
Outstanding at December 31, 2016
|
-
|
-
|
424,340
|
65.74
|
||||||||||||
Granted
|
-
|
-
|
-
|
-
|
||||||||||||
Forfeited
|
-
|
-
|
(4,500
|
)
|
78.62
|
|||||||||||
Exercised / Vested
|
-
|
-
|
(400,440
|
)
|
65.60
|
|||||||||||
Outstanding at December 31, 2017
|
-
|
$
|
-
|
19,400
|
$
|
65.67
|
||||||||||
Shares available for future issuance at
|
||||||||||||||||
December 31, 2017
|
281,349
|
2018
|
2019
|
2020
|
2021
|
|||||||||||
$
|
187
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||
2022
|
2023
|
2024
|
2025
|
|||||||||||
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
(In thousands)
|
||||
2018
|
$
|
1,230
|
||
2019
|
1,080
|
|||
2020
|
1,080
|
|||
2021
|
1,080
|
|||
2022
|
1,080
|
|||
Thereafter
|
6,480
|
|||
Total minimum obligations
|
12,030
|
|||
Interest
|
7,075
|
|||
Present value of net obligations
|
$
|
4,955
|
(In thousands)
|
||||
2018
|
$
|
808
|
||
2019
|
479
|
|||
2020
|
47
|
|||
2021
|
47
|
|||
2022
|
4
|
|||
Total
|
$
|
1,385
|
Year Ended | ||||
December 31,
|
||||
2015
|
||||
Revenues
|
||||
Investment advisory and incentive fees
|
$
|
8,552
|
||
Distribution fees and other income
|
279
|
|||
Institutional research services
|
8,973
|
|||
Total revenues
|
17,804
|
|||
Expenses
|
||||
Compensation
|
20,500
|
|||
Stock based compensation
|
4,716
|
|||
Management fee
|
(727
|
)
|
||
Distribution costs
|
(85
|
)
|
||
Other operating expenses
|
9,070
|
|||
Total expenses
|
33,474
|
|||
Operating loss
|
(15,670
|
)
|
||
Other income
|
||||
Net gain from investments
|
7,660
|
|||
Interest and dividend income
|
2,740
|
|||
Interest expense
|
(1,224
|
)
|
||
Total other income, net
|
9,176
|
|||
Loss from discontinued operations before income taxes
|
(6,494
|
)
|
||
Income tax benefit
|
(2,045
|
)
|
||
Loss from discontinued operations, net of taxes
|
(4,449
|
)
|
||
Net loss attributable to noncontrolling interests
|
(562
|
)
|
||
Net loss attributable to GAMCO Investors, Inc.'s
|
||||
discontinued operations, net of taxes
|
$
|
(3,887
|
)
|
2017
|
||||||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
Total
|
||||||||||||||||
(In thousands, except per share data)
|
||||||||||||||||||||
Revenues
|
$
|
85,917
|
$
|
87,600
|
$
|
88,341
|
$
|
98,666
|
$
|
360,524
|
||||||||||
Operating income
|
42,443
|
39,660
|
23,393
|
39,524
|
145,020
|
|||||||||||||||
Net income attributable to GAMCO
|
||||||||||||||||||||
Investors, Inc.'s shareholders
|
24,820
|
22,894
|
16,600
|
13,495
|
77,809
|
|||||||||||||||
Net income attributable to GAMCO
|
||||||||||||||||||||
Investors, Inc.'s shareholders per share:
|
||||||||||||||||||||
Basic
|
0.86
|
0.79
|
0.57
|
0.46
|
2.68
|
|||||||||||||||
Diluted
|
$
|
0.82
|
$
|
0.76
|
$
|
0.55
|
$
|
0.46
|
$
|
2.60
|
2016
|
||||||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
Total
|
||||||||||||||||
Revenues
|
$
|
81,385
|
$
|
83,944
|
$
|
87,721
|
$
|
99,950
|
$
|
353,000
|
||||||||||
Operating income
|
44,942
|
46,747
|
48,076
|
52,031
|
191,796
|
|||||||||||||||
Net income attributable to GAMCO
|
||||||||||||||||||||
Investors, Inc.'s shareholders
|
26,025
|
27,543
|
30,861
|
32,692
|
117,121
|
|||||||||||||||
Net income attributable to GAMCO
|
||||||||||||||||||||
Investors, Inc.'s shareholders per share:
|
||||||||||||||||||||
Basic
|
0.89
|
0.94
|
1.06
|
1.12
|
4.01
|
|||||||||||||||
Diluted
|
$
|
0.88
|
$
|
0.93
|
$
|
1.03
|
$
|
1.07
|
$
|
3.92
|
ITEM 14: |
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
Exhibit
Number
|
Description of Exhibit
|
|
2.1
|
Agreement and Plan of Merger, dated October 14, 2013, between GAMCO Investors, Inc., a New York corporation and GAMCO Investors, Inc., a Delaware corporation
. (Incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K dated November 20, 2013 filed with the Securities and Exchange Commission on November 22, 2013).
|
|
2.2
|
Separation and Distribution Agreement, dated November 30, 2015, by and between GAMCO Investors, Inc. and Associated Capital Group, Inc
. (Incorporated by reference to Exhibit 2.1 to the Company's Form 8-K dated November 30, 2015 filed with the Securities and Exchange Commission on December 4, 2015).
|
|
3.1
|
Amended and Restated Certificate of Incorporation of GAMCO Investors, Inc. (the “Company”)
(Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K dated November 20, 2013 filed with the Securities and Exchange Commission on November 22, 2013).
|
|
3.2
|
Amended and Restated Bylaws of the Company
. (Incorporated by reference to Exhibit 3.2 to the Company’s Report on Form 8-K dated November 20, 2013 filed with the Securities and Exchange Commission on November 22, 2013).
|
|
3.3
|
Amendment No. 1 to Amended and Restated Bylaws of the Company
(Incorporated by reference to Exhibit 3.3 to the Company’s Report on Form 8-K dated September 23, 2014 filed with the Securities and Exchange Commission on September 26, 2014).
|
4.1
|
Form of Common Stock Certificate
. (Incorporated by reference to Exhibit 4.1 to the Company’s Report on Form 8-K dated November 20, 2013 filed with the Securities and Exchange Commission on November 22, 2013).
|
|
4.2
|
Indenture, dated as of December 31, 2010, between the Company and Computershare Trust Company, N.A., as Trustee (includes form of 0% Subordinated Debenture due 2015)
. (Incorporated by reference to Exhibit 4.1 to the Company's Report on Form 8-K dated December 31, 2010 filed with the Securities and Exchange Commission on January 6, 2011).
|
|
4.3
|
First Supplemental Indenture, dated as of November 22, 2013, by and between GAMCO Investors, Inc. and, Computershare Trust Company, N.A. as trustee
. (Incorporated by reference to Exhibit 4.2 to the Company’s Report on Form 8-K dated November 20, 2013 filed with the Securities and Exchange Commission on November 22, 2013).
|
|
4.4
|
Indenture, dated as of February 6, 2002, between the Company and The Bank of New York, as Trustee
. (Incorporated by reference to Exhibit 4.1 to the Company's Report on Form 8-K dated February 8, 2002 filed with the Securities and Exchange Commission on February 8, 2002).
|
|
4.5
|
Second Supplemental Indenture, dated May 31, 2011, between the Company and The Bank of New York Mellon, as Trustee (includes form of 5.875% Senior Notes due 2021)
. (Incorporated by reference to Exhibit 4.1 to the Company's Report on Form 8-K dated May 25, 2011 filed with the Securities and Exchange Commission on May 31, 2011).
|
|
4.6
|
Third Supplemental Indenture, dated November 22, 2013, between GAMCO Investors, Inc. and The Bank of New York Mellon, as Trustee
. (Incorporated by reference to Exhibit 4.3 to the Company’s Report on Form 8-K dated November 20, 2013 filed with the Securities and Exchange Commission on November 22, 2013).
|
|
4.7
|
Convertible Promissory Note in the amount of $110,000,000, dated August 15, 2016, issued by GAMCO Investors, Inc. to Cascade Investment, L.L.C
. (Incorporated by reference to Exhibit 4.1 to the Company's Report on Form 8-K dated August 15, 2016 filed with the Securities and Exchange Commission on August 16, 2016).
|
|
4.8
|
Irrevocable Standby Letter of Credit, dated August 15, 2016, issued by GAMCO Investors, Inc. in favor of GGCP, Inc
. (Incorporated by reference to Exhibit 4.2 to the Company's Report on Form 8-K dated August 15, 2016 filed with the Securities and Exchange Commission on August 16, 2016).
|
|
10.1
|
Tax Indemnification Agreement between the Company and GFI
. (Incorporated by reference to Exhibit 10.2 to Amendment No. 3 to the Company's Registration Statement on Form S-1 (File No. 333-51023) filed with the Securities and Exchange Commission on January 29, 1999).
|
|
10.2
|
GAMCO Investors, Inc. 2002 Stock Award and Incentive Plan
(Incorporated by reference to Exhibit A to the Company's definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission on April 30, 2002). *
|
10.3
|
First Amendment to the Company’s 2002 Stock Award and Incentive Plan
(Incorporated by reference to Annex D to the Company’s definitive proxy statement on Schedule 14A filed with the Commission on October 30, 2013).*
|
|
10.4
|
Second Amendment to the Company’s 2002 Stock Award and Incentive Plan
(Incorporated by reference to Exhibit A to the Company’s definitive proxy statement on Schedule 14A filed with the Commission on April 21, 2016).*
|
|
10.5
|
Third Amendment to the Company’s 2002 Stock Award and Incentive Plan
(Incorporated by reference to Exhibit A to the Company’s definitive proxy statement on Schedule 14A filed with the Commission on April 12, 2017).*
|
|
10.6
|
Employment Agreement between the Company and Mario J. Gabelli dated February 6, 2008
(Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K dated February 6, 2008 filed with the Securities and Exchange Commission on February 7, 2008). *
|
|
10.7
|
Service Mark and Name License Agreement, dated November 30, 2015, by and between GAMCO Investors, Inc. and Associated Capital Group, Inc
. (Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K dated November 30, 2015 filed with the Securities and Exchange Commission on December 4, 2015).
|
|
10.8
|
Transitional Administrative and Management Services Agreement, dated November 30, 2015, by and between GAMCO Investors, Inc. and Associated Capital Group, Inc
. (Incorporated by reference to Exhibit 10.2 to the Company's Report on Form 8-K dated November 30, 2015 filed with the Securities and Exchange Commission on December 4, 2015).
|
|
10.9
|
Promissory note in the amount of $250,000,000, dated November 30, 2015, issued by GAMCO Investors, Inc. to Associated Capital Group, Inc
. (Incorporated by reference to Exhibit 10.3 to the Company's Report on Form 8-K dated November 30, 2015 filed with the Securities and Exchange Commission on December 4, 2015).
|
|
10.10
|
Tax Indemnity and Sharing Agreement, dated November 30, 2015, by and between GAMCO Investors, Inc. and Associated Capital Group, Inc
. (Incorporated by reference to Exhibit 10.4 to the Company's Report on Form 8-K dated November 30, 2015 filed with the Securities and Exchange Commission on December 4, 2015).
|
|
10.11
|
Restricted Stock Unit Agreement, dated December 21, 2015, by and between GAMCO Investors, Inc. and Mario J. Gabelli
. (Incorporated by reference to Exhibit 99.2 to the Company's Report on Form 8-K dated December 21, 2015 filed with the Securities and Exchange Commission on December 28, 2015).
|
|
10.12
|
Note Purchase Agreement, dated August 15, 2016, by and among Cascade Investment, L.L.C., GAMCO Investors, Inc., Mario J. Gabelli and GGCP, Inc
. (Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K dated August 15, 2016 filed with the Securities and Exchange Commission on August 16, 2016).
|
|
10.13
|
Registration Rights Agreement, dated August 15, 2016, by and among Cascade Investment, L.L.C. and GAMCO Investors, Inc
. (Incorporated by reference to Exhibit 10.2 to the Company's Report on Form 8-K dated August 15, 2016 filed with the Securities and Exchange Commission on August 16, 2016).
|
10.14
|
Escrow Agreement, dated August 15, 2016, among GAMCO Investors, Inc., GGCP, Inc., Cascade Investment, L.L.C. and JPMorgan Chase Bank, National Association
. (Incorporated by reference to Exhibit 10.3 to the Company's Report on Form 8-K dated August 15, 2016 filed with the Securities and Exchange Commission on August 16, 2016).
|
||
10.15
|
Restricted Stock Unit Agreement, dated December 23, 2016, by and between GAMCO Investors, Inc. and Mario J. Gabelli
. (Incorporated by reference to Exhibit 99.1 to the Company’s Report on Form 8-K dated December 23, 2016 filed with the Securities and Exchange Commission on December 29, 2016).
|
||
10.16
|
Restricted Stock Unit Agreement, dated September 30, 2017, by and between GAMCO Investors, Inc. and Mario J. Gabelli.
(Incorporated by reference to Exhibit 99.1 to the Company’s Report on Form 8-K dated September 30, 2017 filed with the Securities and Exchange Commission on October 5, 2017).
|
||
10.17
|
$35,000,000 floating rate promissory note due December 28, 2016 in favor of GGCP, Inc
. (Incorporated by reference to Exhibit 10.13 to the Company’s Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on March 15, 2016).
|
||
10.18
|
Rights agreement with Mario J. Gabelli
(Incorporated by reference to Exhibit 10.14 to the Company’s Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on March 15, 2016).
|
||
Computation of Ratios of Earnings to Fixed Charges.
|
|||
Subsidiaries of the Company.
|
|||
Consent of Independent Registered Public Accounting Firm.
|
|||
24.1
|
Powers of Attorney (included on page 92 of this Report).
|
||
Certification of CEO pursuant to Rule 13a-14(a).
|
|||
Certification of co-CAO pursuant to Rule 13a-14(a).
|
|||
Certification of co-CAO pursuant to Rule 13a-14(a).
|
|||
Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|||
Certification of co-CAOs pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
|
|||
99.1
|
Schedule I
|
||
100.INS
|
XBRL Instance Document
|
||
100.SCH
|
XBRL Taxonomy Extension Schema Document
|
||
100.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
||
100.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
||
100.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
||
100.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
By: /s/ Kieran Caterina
|
By: /s/ Diane M. LaPointe
|
Name: Kieran Caterina
|
Name: Diane M. LaPointe
|
Title: Co-Chief Accounting Officer
(Co-Principal Accounting Officer)
|
Title: Co-Chief Accounting Officer
(Co-Principal Accounting Officer)
|
Date: March 8, 2018
|
Date: March 8, 2018
|
Signature
|
Title
|
Date
|
||
/s/ Mario J. Gabelli
|
Chairman of the Board,
|
March 8, 2018
|
||
Mario J. Gabelli
|
Chief Executive Officer
|
|||
(Principal Executive Officer)
|
||||
and Director
|
||||
/s/ Kieran Caterina
|
Co-Chief Accounting
|
March 8, 2018
|
||
Kieran Caterina
|
Officer (Co-Principal
|
|||
Accounting Officer)
|
||||
/s/ Diane M. LaPointe
|
Co-Chief Accounting
|
March 8, 2018
|
||
Diane M. LaPointe
|
Officer (Co-Principal
|
|||
Accounting Officer)
|
||||
/s/ Edwin L. Artzt
|
Director
|
March 8, 2018
|
||
Edwin L. Artzt
|
||||
/s/ Raymond C. Avansino, Jr.
|
Director
|
March 8, 2018
|
||
Raymond C. Avansino, Jr.
|
||||
/s/ Leslie B. Daniels
|
Director
|
March 8, 2018
|
||
Leslie B. Daniels
|
||||
/s/ Eugene R. McGrath
|
Director
|
March 8, 2018
|
||
Eugene R. McGrath
|
||||
/s/ Robert S. Prather, Jr.
|
Director
|
March 8, 2018
|
||
Robert S. Prather, Jr.
|
||||
/s/ Elisa M. Wilson
|
Director
|
March 8, 2018
|
||
Elisa M. Wilson
|
1 Year Gamco Investors Chart |
1 Month Gamco Investors Chart |
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