| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
GAMCO INVESTORS, INC.
|
(Exact name of Registrant as specified in its charter)
|
Delaware
|
13-4007862
|
|
(State of other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
One Corporate Center, Rye, NY
|
10580-1422
|
|
(Address of principle executive offices)
|
(Zip Code)
|
(914) 921-3700
|
Registrant's telephone number, including area code
|
Large accelerated filer
|
Accelerated filer
|
|
Non-accelerated filer
|
Smaller reporting company
|
Class
|
Outstanding at October 31, 2014
|
|
Class A Common Stock, .001 par value
|
(Including 639,750 restriced stock awards)
|
6,540,443
|
Class B Common Stock, .001 par value
|
|
19,279,260
|
INDEX
|
|||
|
|||
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
|||
|
|
||
|
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
|
|
|
||
|
|
||
Item 1.
|
Unaudited Condensed Consolidated Financial Statements
|
||
|
|
||
|
Condensed Consolidated Statements of Income:
|
||
- Three months ended September 30, 2014 and 2013
|
|||
- Nine months ended September 30, 2014 and 2013
|
|||
|
|
||
Condensed Consolidated Statements of Comprehensive Income:
|
|||
- Three months ended September 30, 2014 and 2013
|
|||
- Nine months ended September 30, 2014 and 2013
|
|||
|
Condensed Consolidated Statements of Financial Condition:
|
||
|
- September 30, 2014
|
||
|
- December 31, 2013
|
||
|
- September 30, 2013
|
||
|
|
||
|
Condensed Consolidated Statements of Equity:
|
||
|
- Nine months ended September 30, 2014 and 2013
|
||
|
|
||
|
Condensed Consolidated Statements of Cash Flows:
|
||
|
- Nine months ended September 30, 2014 and 2013
|
||
|
|
||
|
Notes to Unaudited Condensed Consolidated Financial Statements
|
||
|
|
||
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
||
|
|
||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk (Included in Item 2)
|
||
|
|
||
Item 4.
|
Controls and Procedures
|
||
|
|
||
PART II.
|
OTHER INFORMATION
|
||
|
|
||
Item 1.
|
Legal Proceedings
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
||
Item 6.
|
Exhibits
|
SIGNATURES
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Revenues
|
||||||||||||||||
Investment advisory and incentive fees
|
$
|
92,591
|
$
|
80,438
|
$
|
270,544
|
$
|
230,488
|
||||||||
Distribution fees and other income
|
15,727
|
13,545
|
46,367
|
37,420
|
||||||||||||
Institutional research services
|
2,540
|
2,394
|
6,720
|
6,940
|
||||||||||||
Total revenues
|
110,858
|
96,377
|
323,631
|
274,848
|
||||||||||||
Expenses
|
||||||||||||||||
Compensation
|
43,316
|
39,803
|
131,258
|
113,214
|
||||||||||||
Management fee
|
3,756
|
5,629
|
13,628
|
14,455
|
||||||||||||
Distribution costs
|
15,101
|
12,769
|
44,087
|
35,650
|
||||||||||||
Other operating expenses
|
5,099
|
5,448
|
17,036
|
16,290
|
||||||||||||
Total expenses
|
67,272
|
63,649
|
206,009
|
179,609
|
||||||||||||
|
||||||||||||||||
Operating income
|
43,586
|
32,728
|
117,622
|
95,239
|
||||||||||||
Other income (expense)
|
||||||||||||||||
Net gain/(loss) from investments
|
(9,086
|
)
|
19,334
|
7,602
|
43,766
|
|||||||||||
Interest and dividend income
|
1,084
|
1,134
|
3,557
|
4,986
|
||||||||||||
Interest expense
|
(1,987
|
)
|
(2,164
|
)
|
(6,000
|
)
|
(8,448
|
)
|
||||||||
Shareholder-designated contribution
|
-
|
(313
|
)
|
(134
|
)
|
(5,313
|
)
|
|||||||||
Total other income (expense), net
|
(9,989
|
)
|
17,991
|
5,025
|
34,991
|
|||||||||||
Income before income taxes
|
33,597
|
50,719
|
122,647
|
130,230
|
||||||||||||
Income tax provision
|
13,045
|
17,515
|
44,796
|
46,434
|
||||||||||||
Net income
|
20,552
|
33,204
|
77,851
|
83,796
|
||||||||||||
Net income/(loss) attributable to noncontrolling interests
|
(3,113
|
)
|
106
|
(2,718
|
)
|
260
|
||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
23,665
|
$
|
33,098
|
$
|
80,569
|
$
|
83,536
|
||||||||
|
||||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||||||||||
Basic
|
$
|
0.94
|
$
|
1.29
|
$
|
3.17
|
$
|
3.25
|
||||||||
|
||||||||||||||||
Diluted
|
$
|
0.93
|
$
|
1.29
|
$
|
3.15
|
$
|
3.25
|
||||||||
|
||||||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
25,296
|
25,625
|
25,385
|
25,682
|
||||||||||||
|
||||||||||||||||
Diluted
|
25,517
|
25,700
|
25,595
|
25,717
|
||||||||||||
|
||||||||||||||||
Dividends declared:
|
$
|
0.06
|
$
|
0.06
|
$
|
0.18
|
$
|
0.16
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Net income
|
$
|
20,552
|
$
|
33,204
|
$
|
77,851
|
$
|
83,796
|
||||||||
Other comprehensive income/(loss), net of tax:
|
||||||||||||||||
Foreign currency translation
|
(45
|
)
|
49
|
(15
|
)
|
1
|
||||||||||
Net unrealized gains/(losses) on securities available for sale (a)
|
(2,407
|
)
|
(2,170
|
)
|
(6,832
|
)
|
(3,030
|
)
|
||||||||
Other comprehensive income/(loss)
|
(2,452
|
)
|
(2,121
|
)
|
(6,847
|
)
|
(3,029
|
)
|
||||||||
Comprehensive income
|
18,100
|
31,083
|
71,004
|
80,767
|
||||||||||||
Less: Comprehensive loss/(income) attributable to noncontrolling interests
|
3,113
|
(106
|
)
|
2,718
|
(260
|
)
|
||||||||||
Comprehensive income attributable to GAMCO Investors, Inc.
|
$
|
21,213
|
$
|
30,977
|
$
|
73,722
|
$
|
80,507
|
|
September 30,
|
December 31,
|
September 30,
|
|||||||||
2014
|
2013
|
2013
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
$
|
358,421
|
$
|
210,451
|
$
|
245,411
|
||||||
Investments in securities
|
254,630
|
231,228
|
237,744
|
|||||||||
Investments in sponsored registered investment companies
|
39,520
|
44,042
|
43,688
|
|||||||||
Investments in partnerships
|
107,434
|
95,992
|
97,752
|
|||||||||
Receivable from brokers
|
79,885
|
49,461
|
43,854
|
|||||||||
Investment advisory fees receivable
|
31,155
|
51,506
|
31,151
|
|||||||||
Income tax receivable
|
2,433
|
445
|
433
|
|||||||||
Other assets
|
25,282
|
26,360
|
34,589
|
|||||||||
Total assets
|
$
|
898,760
|
$
|
709,485
|
$
|
734,622
|
||||||
|
||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
Payable to brokers
|
$
|
46,790
|
$
|
10,765
|
$
|
14,675
|
||||||
Income taxes payable and deferred tax liabilities
|
27,412
|
39,846
|
28,726
|
|||||||||
Capital lease obligation
|
5,272
|
5,323
|
5,331
|
|||||||||
Compensation payable
|
93,535
|
34,663
|
86,174
|
|||||||||
Securities sold, not yet purchased
|
14,180
|
6,178
|
7,725
|
|||||||||
Mandatorily redeemable noncontrolling interests
|
1,304
|
1,355
|
1,327
|
|||||||||
Accrued expenses and other liabilities
|
31,007
|
32,511
|
28,906
|
|||||||||
Sub-total
|
219,500
|
130,641
|
172,864
|
|||||||||
|
||||||||||||
5.5% Senior notes (repaid May 15, 2013)
|
-
|
0
|
0
|
|||||||||
5.875% Senior notes (due June 1, 2021)
|
100,000
|
100,000
|
100,000
|
|||||||||
Zero coupon subordinated debentures, Face value: $13.1 million at September 30, 2014, $13.8
|
||||||||||||
million at December 31, 2013 and $20.5 million at September 30, 2013 (due December 31, 2015)
|
11,941
|
11,911
|
17,347
|
|||||||||
Total liabilities
|
331,441
|
242,552
|
290,211
|
|||||||||
|
||||||||||||
Redeemable noncontrolling interests
|
56,086
|
6,751
|
5,765
|
|||||||||
Commitments and contingencies (Note J)
|
||||||||||||
Equity
|
||||||||||||
GAMCO Investors, Inc. stockholders' 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;
|
||||||||||||
15,230,433, 15,012,719 and 14,833,469 issued, respectively; 6,599,982,
|
||||||||||||
6,701,930 and 6,592,649 outstanding, respectively
|
14
|
14
|
14
|
|||||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized;
|
||||||||||||
24,000,000 shares issued; 19,279,260, 19,384,174 and 19,424,174 shares
|
||||||||||||
outstanding, respectively
|
19
|
19
|
19
|
|||||||||
Additional paid-in capital
|
289,664
|
282,496
|
281,194
|
|||||||||
Retained earnings
|
582,357
|
506,441
|
487,702
|
|||||||||
Accumulated other comprehensive income
|
23,392
|
30,239
|
23,271
|
|||||||||
Treasury stock, at cost (8,630,451, 8,310,789 and 8,240,820 shares, respectively)
|
(386,952
|
)
|
(361,878
|
)
|
(356,343
|
)
|
||||||
Total GAMCO Investors, Inc. stockholders' equity
|
508,494
|
457,331
|
435,857
|
|||||||||
Noncontrolling interests
|
2,739
|
2,851
|
2,789
|
|||||||||
Total equity
|
511,233
|
460,182
|
438,646
|
|||||||||
|
||||||||||||
Total liabilities and equity
|
$
|
898,760
|
$
|
709,485
|
$
|
734,622
|
GAMCO Investors, Inc. stockholders
|
||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
Additional
|
Other
|
Redeemable
|
||||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Noncontrolling
|
||||||||||||||||||||||||||
Interests
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
Interests
|
|||||||||||||||||||||||||
Balance at December 31, 2013
|
$
|
2,851
|
$
|
33
|
$
|
282,496
|
$
|
506,441
|
$
|
30,239
|
$
|
(361,878
|
)
|
$
|
460,182
|
$
|
6,751
|
|||||||||||||||
Redemptions of
|
||||||||||||||||||||||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,666
|
)
|
|||||||||||||||||||||||
Contributions from
|
||||||||||||||||||||||||||||||||
noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
53,607
|
||||||||||||||||||||||||
Net income (loss)
|
(112
|
)
|
-
|
-
|
80,569
|
-
|
-
|
80,457
|
(2,606
|
)
|
||||||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($1,393)
|
-
|
-
|
-
|
-
|
(2,371
|
)
|
-
|
(2,371
|
)
|
-
|
||||||||||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($2,620)
|
-
|
-
|
-
|
-
|
(4,461
|
)
|
-
|
(4,461
|
)
|
-
|
||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
(15
|
)
|
-
|
(15
|
)
|
-
|
||||||||||||||||||||||
Dividends declared ($0.18 per
|
||||||||||||||||||||||||||||||||
share)
|
-
|
-
|
-
|
(4,653
|
)
|
-
|
-
|
(4,653
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
5,182
|
-
|
-
|
-
|
5,182
|
-
|
||||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||
including tax benefit ($349)
|
-
|
-
|
1,986
|
-
|
-
|
-
|
1,986
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(25,074
|
)
|
(25,074
|
)
|
-
|
||||||||||||||||||||||
Balance at September 30, 2014
|
$
|
2,739
|
$
|
33
|
$
|
289,664
|
$
|
582,357
|
$
|
23,392
|
$
|
(386,952
|
)
|
$
|
511,233
|
$
|
56,086
|
GAMCO Investors, Inc. stockholders
|
||||||||||||||||||||||||||||||||
|
Accumulated
|
|||||||||||||||||||||||||||||||
Additional
|
Other
|
Redeemable
|
||||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Noncontrolling
|
||||||||||||||||||||||||||
Interests
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
Interests
|
|||||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
3,326
|
$
|
33
|
$
|
280,089
|
$
|
408,295
|
$
|
26,300
|
$
|
(347,109
|
)
|
$
|
370,934
|
$
|
17,362
|
|||||||||||||||
Redemptions of noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
(524
|
)
|
-
|
-
|
-
|
-
|
-
|
(524
|
)
|
(15,356
|
)
|
|||||||||||||||||||||
Contributions from
|
||||||||||||||||||||||||||||||||
noncontrolling
|
||||||||||||||||||||||||||||||||
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,486
|
||||||||||||||||||||||||
Net income (loss)
|
(13
|
)
|
-
|
-
|
83,536
|
-
|
-
|
83,523
|
273
|
|||||||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax ($5,479)
|
-
|
-
|
-
|
-
|
9,331
|
-
|
9,331
|
-
|
||||||||||||||||||||||||
Amount reclassed from
|
||||||||||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($7,259)
|
-
|
-
|
-
|
-
|
(12,361
|
)
|
-
|
(12,361
|
)
|
-
|
||||||||||||||||||||||
Income tax effect of transaction | ||||||||||||||||||||||||||||||||
with shareholders
|
-
|
-
|
243
|
-
|
-
|
-
|
243
|
-
|
||||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
1
|
-
|
1
|
-
|
||||||||||||||||||||||||
Dividends declared ($0.16 per
|
||||||||||||||||||||||||||||||||
share)
|
-
|
-
|
-
|
(4,129
|
)
|
-
|
-
|
(4,129
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
770
|
-
|
-
|
-
|
770
|
-
|
||||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||
including tax benefit
|
-
|
-
|
92
|
-
|
-
|
-
|
92
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(9,234
|
)
|
(9,234
|
)
|
-
|
||||||||||||||||||||||
Balance at September 30, 2013
|
$
|
2,789
|
$
|
33
|
$
|
281,194
|
$
|
487,702
|
$
|
23,271
|
$
|
(356,343
|
)
|
$
|
438,646
|
$
|
5,765
|
|
Nine Months Ended
|
|||||||
September 30,
|
||||||||
|
2014
|
2013
|
||||||
Operating activities
|
||||||||
Net income
|
$
|
77,851
|
$
|
83,796
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Equity in net gains from partnerships
|
(572
|
)
|
(1,211
|
)
|
||||
Depreciation and amortization
|
507
|
605
|
||||||
Stock based compensation expense
|
5,182
|
770
|
||||||
Deferred income taxes
|
(3,472
|
)
|
1,495
|
|||||
Tax benefit from exercise of stock options
|
349
|
16
|
||||||
Foreign currency translation gain/(loss)
|
(15
|
)
|
1
|
|||||
Other-than-temporary loss on available for sale securities
|
69
|
14
|
||||||
Cost basis of donated securities
|
1,502
|
1,880
|
||||||
Gains on sales of available for sale securities
|
(3,511
|
)
|
(16,191
|
)
|
||||
Accretion of zero coupon debentures
|
661
|
964
|
||||||
Loss on extinguishment of debt
|
84
|
137
|
||||||
(Increase) decrease in assets:
|
||||||||
Investments in trading securities
|
(22,376
|
)
|
(11,730
|
)
|
||||
Investments in partnerships:
|
||||||||
Contributions to partnerships
|
(15,698
|
)
|
(10,124
|
)
|
||||
Distributions from partnerships
|
4,828
|
11,134
|
||||||
Receivable from brokers
|
(30,424
|
)
|
6,801
|
|||||
Investment advisory fees receivable
|
20,351
|
11,278
|
||||||
Income tax receivable and deferred tax assets
|
(1,988
|
)
|
584
|
|||||
Other assets
|
563
|
(7,436
|
)
|
|||||
Increase (decrease) in liabilities:
|
||||||||
Payable to brokers
|
36,026
|
329
|
||||||
Income taxes payable and deferred tax liabilities
|
(4,950
|
)
|
3,613
|
|||||
Compensation payable
|
58,873
|
75,639
|
||||||
Mandatorily redeemable noncontrolling interests
|
(51
|
)
|
(15
|
)
|
||||
Accrued expenses and other liabilities
|
(1,639
|
)
|
3,144
|
|||||
Total adjustments
|
44,299
|
71,697
|
||||||
Net cash provided by operating activities
|
$
|
122,150
|
$
|
155,493
|
|
Nine Months Ended
|
|||||||
September 30,
|
||||||||
|
2014
|
2013
|
||||||
Investing activities
|
||||||||
Purchases of available for sale securities
|
$
|
(6,252
|
)
|
$
|
(8,427
|
)
|
||
Proceeds from sales of available for sale securities
|
8,018
|
32,422
|
||||||
Return of capital on available for sale securities
|
827
|
1,094
|
||||||
Net cash provided by investing activities
|
2,593
|
25,089
|
||||||
|
||||||||
Financing activities
|
||||||||
Contributions from redeemable noncontrolling interests
|
53,607
|
3,486
|
||||||
Redemptions of redeemable noncontrolling interests
|
(1,666
|
)
|
(15,356
|
)
|
||||
Redemption of 5.5% Senior Notes
|
-
|
(99,000
|
)
|
|||||
Redemptions of noncontrolling interests
|
-
|
(524
|
)
|
|||||
Proceeds from exercise of stock options
|
1,637
|
76
|
||||||
Dividends paid
|
(4,567
|
)
|
(4,108
|
)
|
||||
Repurchase of zero coupon subordinated debentures
|
(715
|
)
|
(1,119
|
)
|
||||
Purchase of treasury stock
|
(25,074
|
)
|
(9,234
|
)
|
||||
Net cash provided by/(used in) financing activities
|
23,222
|
(125,779
|
)
|
|||||
Effect of exchange rates on cash and cash equivalents
|
5
|
-
|
||||||
Net increase in cash and cash equivalents
|
147,970
|
54,803
|
||||||
Cash and cash equivalents at beginning of period
|
210,451
|
190,608
|
||||||
Cash and cash equivalents at end of period
|
$
|
358,421
|
$
|
245,411
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
3,847
|
$
|
6,607
|
||||
Cash paid for taxes
|
$
|
52,956
|
$
|
40,500
|
||||
|
||||||||
Non-cash activity:
|
||||||||
- For the nine months ended September 30, 2014 and September 30, 2013, the Company accrued dividends on restricted stock awards of $86 and $21, respectively.
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
||||||||||||||||||||||
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Trading securities:
|
||||||||||||||||||||||||
Government obligations
|
$
|
20,995
|
$
|
20,999
|
$
|
37,986
|
$
|
37,994
|
$
|
20,993
|
$
|
21,000
|
||||||||||||
Common stocks
|
167,714
|
190,939
|
96,225
|
124,634
|
143,731
|
166,443
|
||||||||||||||||||
Mutual funds
|
2,416
|
3,373
|
21,074
|
23,285
|
11,073
|
12,010
|
||||||||||||||||||
Other investments
|
753
|
1,550
|
287
|
582
|
406
|
419
|
||||||||||||||||||
Total trading securities
|
191,878
|
216,861
|
155,572
|
186,495
|
176,203
|
199,872
|
||||||||||||||||||
|
||||||||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
Common stocks
|
14,228
|
36,380
|
13,389
|
43,046
|
16,372
|
36,297
|
||||||||||||||||||
Mutual funds
|
681
|
1,389
|
843
|
1,687
|
843
|
1,575
|
||||||||||||||||||
Total available for sale securities
|
14,909
|
37,769
|
14,232
|
44,733
|
17,215
|
37,872
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total investments in securities
|
$
|
206,787
|
$
|
254,630
|
$
|
169,804
|
$
|
231,228
|
$
|
193,418
|
$
|
237,744
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
||||||||||||||||||||||
|
Proceeds
|
Fair Value
|
Proceeds
|
Fair Value
|
Proceeds
|
Fair Value
|
||||||||||||||||||
Trading securities:
|
(In thousands)
|
|||||||||||||||||||||||
Common stocks
|
$
|
11,699
|
$
|
13,514
|
$
|
5,319
|
$
|
6,023
|
$
|
6,411
|
$
|
7,003
|
||||||||||||
Other investments
|
71
|
666
|
-
|
155
|
526
|
722
|
||||||||||||||||||
Total securities sold, not yet purchased
|
$
|
11,770
|
$
|
14,180
|
$
|
5,319
|
$
|
6,178
|
$
|
6,937
|
$
|
7,725
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
||||||||||||||||||||||
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Trading securities:
|
||||||||||||||||||||||||
Mutual funds
|
$
|
1
|
$
|
1
|
$
|
19
|
$
|
10
|
$
|
19
|
$
|
12
|
||||||||||||
Total trading securities
|
1
|
1
|
19
|
10
|
19
|
12
|
||||||||||||||||||
|
||||||||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
Closed-end funds
|
21,819
|
36,142
|
23,100
|
40,624
|
23,850
|
40,272
|
||||||||||||||||||
Mutual funds
|
1,922
|
3,377
|
1,951
|
3,408
|
2,031
|
3,404
|
||||||||||||||||||
Total available for sale securities
|
23,741
|
39,519
|
25,051
|
44,032
|
25,881
|
43,676
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total investments in sponsored
|
||||||||||||||||||||||||
registered investment companies
|
$
|
23,742
|
$
|
39,520
|
$
|
25,070
|
$
|
44,042
|
$
|
25,900
|
$
|
43,688
|
Amount
|
Affected Line Items
|
Reason for
|
|||||||
Reclassified
|
in the Statements
|
Reclassification
|
|||||||
from AOCI
|
Of Income
|
from AOCI
|
|||||||
Three months ended September 30,
|
|
|
|||||||
2014
|
2013
|
||||||||
$
|
348
|
$
|
5,745
|
Net gain/(loss) from investments
|
Realized gain on sale of AFS securities
|
||||
-
|
3,112
|
Other operating expenses/net gain from investments
|
Realized gain on donation of AFS securities
|
||||||
348
|
8,857
|
Income before income taxes
|
|
||||||
(129
|
)
|
(3,277
|
)
|
Income tax provision
|
|
||||
$
|
219
|
$
|
5,580
|
Net income
|
|
||||
Amount
|
Affected Line Items
|
Reason for
|
|||||||
Reclassified
|
in the Statements
|
Reclassification
|
|||||||
from AOCI
|
Of Income
|
from AOCI
|
|||||||
Nine months ended September 30,
|
|||||||||
2014
|
2013
|
||||||||
$
|
3,511
|
$
|
16,191
|
Net gain/(loss) from investments
|
Realized gain on sale of AFS securities
|
||||
3,639
|
3,443
|
Other operating expenses/net gain from investments
|
Realized gain on donation of AFS securities
|
||||||
(69
|
)
|
(14
|
)
|
Net gain/(loss) from investments
|
OTT impairment of AFS securities
|
||||
7,081
|
19,620
|
Income before income taxes
|
|||||||
(2,620
|
)
|
(7,259
|
)
|
Income tax provision
|
|||||
$
|
4,461
|
$
|
12,361
|
Net income
|
Gross Amounts Not Offset in the
|
||||||||||||||||||||||||
Statements of Financial Condition
|
||||||||||||||||||||||||
Gross
|
Gross Amounts
|
Net Amounts of
|
||||||||||||||||||||||
Amounts of
|
Offset in the
|
Assets Presented
|
||||||||||||||||||||||
Recognized
|
Statements of
|
in the Statements of
|
Financial
|
Cash Collateral
|
||||||||||||||||||||
Assets
|
Financial Condition
|
Financial Condition
|
Instruments
|
Received
|
Net Amount
|
|||||||||||||||||||
Swaps:
|
(in thousands)
|
|||||||||||||||||||||||
September 30, 2014
|
$
|
800
|
$
|
-
|
$
|
800
|
$
|
(657
|
)
|
$
|
-
|
$
|
143
|
|||||||||||
December 31, 2013
|
275
|
-
|
275
|
(155
|
)
|
-
|
120
|
|||||||||||||||||
September 30, 2013
|
$
|
101
|
$
|
-
|
$
|
101
|
$
|
(101
|
)
|
$
|
-
|
$
|
-
|
|||||||||||
Gross Amounts Not Offset in the
|
||||||||||||||||||||||||
Statements of Financial Condition
|
||||||||||||||||||||||||
Gross
|
Gross Amounts
|
Net Amounts of
|
||||||||||||||||||||||
Amounts of
|
Offset in the
|
Liabilities Presented
|
||||||||||||||||||||||
Recognized
|
Statements of
|
in the Statements of
|
Financial
|
Cash Collateral
|
||||||||||||||||||||
Liabilities
|
Financial Condition
|
Financial Condition
|
Instruments
|
Pledged
|
Net Amount
|
|||||||||||||||||||
Swaps:
|
(in thousands)
|
|||||||||||||||||||||||
September 30, 2014
|
$
|
657
|
$
|
-
|
$
|
657
|
$
|
(657
|
)
|
$
|
-
|
$
|
-
|
|||||||||||
December 31, 2013
|
155
|
-
|
155
|
(155
|
)
|
-
|
-
|
|||||||||||||||||
September 30, 2013
|
$
|
135
|
$
|
-
|
$
|
135
|
$
|
(101
|
)
|
$
|
-
|
$
|
34
|
|
September 30, 2014
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
14,228
|
$
|
22,152
|
$
|
-
|
$
|
36,380
|
||||||||
Closed-end Funds
|
21,819
|
14,325
|
(2
|
)
|
36,142
|
|||||||||||
Mutual funds
|
2,603
|
2,163
|
-
|
4,766
|
||||||||||||
Total available for sale securities
|
$
|
38,650
|
$
|
38,640
|
$
|
(2
|
)
|
$
|
77,288
|
|
December 31, 2013
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
13,389
|
$
|
29,657
|
$
|
-
|
$
|
43,046
|
||||||||
Closed-end Funds
|
23,100
|
17,654
|
(130
|
)
|
40,624
|
|||||||||||
Mutual funds
|
2,794
|
2,325
|
(24
|
)
|
5,095
|
|||||||||||
Total available for sale securities
|
$
|
39,283
|
$
|
49,636
|
$
|
(154
|
)
|
$
|
88,765
|
|
September 30, 2013
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
|
Cost
|
Gains
|
Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Common stocks
|
$
|
16,372
|
$
|
19,925
|
$
|
-
|
$
|
36,297
|
||||||||
Closed-end Funds
|
23,850
|
16,545
|
(123
|
)
|
40,272
|
|||||||||||
Mutual funds
|
2,874
|
2,141
|
(36
|
)
|
4,979
|
|||||||||||
Total available for sale securities
|
$
|
43,096
|
$
|
38,611
|
$
|
(159
|
)
|
$
|
81,548
|
September 30, 2014
|
December 31, 2013
|
September 30, 2013
|
||||||||||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||||||||||||||
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Losses
|
Fair Value
|
|||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Cosed-end funds
|
$
|
79
|
$
|
(2
|
)
|
$
|
77
|
$
|
912
|
$
|
(130
|
)
|
$
|
782
|
$
|
941
|
$
|
(123
|
)
|
$
|
818
|
|||||||||||||||
Mutual Funds
|
-
|
-
|
-
|
303
|
(24
|
)
|
279
|
365
|
(36
|
)
|
329
|
|||||||||||||||||||||||||
Total
|
$
|
79
|
$
|
(2
|
)
|
$
|
77
|
$
|
1,215
|
$
|
(154
|
)
|
$
|
1,061
|
$
|
1,306
|
$
|
(159
|
)
|
$
|
1,147
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
September 30,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2014
|
||||||||||||
Cash equivalents
|
$
|
358,210
|
$
|
-
|
$
|
-
|
$
|
358,210
|
||||||||
Investments in partnerships
|
-
|
24,094
|
-
|
24,094
|
||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
36,380
|
-
|
-
|
36,380
|
||||||||||||
AFS - Mutual funds
|
1,389
|
-
|
-
|
1,389
|
||||||||||||
Trading - Gov't obligations
|
20,999
|
-
|
-
|
20,999
|
||||||||||||
Trading - Common stocks
|
190,215
|
-
|
724
|
190,939
|
||||||||||||
Trading - Mutual funds
|
3,373
|
-
|
-
|
3,373
|
||||||||||||
Trading - Other
|
453
|
803
|
294
|
1,550
|
||||||||||||
Total investments in securities
|
252,809
|
803
|
1,018
|
254,630
|
||||||||||||
Investments in sponsored registered investment companies:
|
||||||||||||||||
AFS - Closed-end Funds
|
36,142
|
-
|
-
|
36,142
|
||||||||||||
AFS - Mutual Funds
|
3,377
|
-
|
-
|
3,377
|
||||||||||||
Trading - Mutual funds
|
1
|
-
|
-
|
1
|
||||||||||||
Total investments in sponsored
|
||||||||||||||||
registered investment companies
|
39,520
|
-
|
-
|
39,520
|
||||||||||||
Total investments
|
292,329
|
24,897
|
1,018
|
318,244
|
||||||||||||
Total assets at fair value
|
$
|
650,539
|
$
|
24,897
|
$
|
1,018
|
$
|
676,454
|
||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$
|
13,514
|
$
|
-
|
$
|
-
|
$
|
13,514
|
||||||||
Trading - Other
|
-
|
666
|
-
|
666
|
||||||||||||
Securities sold, not yet purchased
|
$
|
13,514
|
$
|
666
|
$
|
-
|
$
|
14,180
|
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)
|
2013
|
||||||||||||
Cash equivalents
|
$
|
209,913
|
$
|
-
|
$
|
-
|
$
|
209,913
|
||||||||
Investments in partnerships
|
-
|
25,253
|
-
|
25,253
|
||||||||||||
Investments in securities:
|