| 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 April 30, 2016
|
|
Class A Common Stock, .001 par value
|
(Including 551,900 restricted stock awards)
|
10,692,404
|
Class B Common Stock, .001 par value
|
|
19,096,792
|
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 March 31, 2016 and 2015
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income:
|
|
- Three Months Ended March 31, 2016 and 2015
|
|
|
|
Condensed Consolidated Statements of Financial Condition:
|
|
- March 31, 2016
|
|
- December 31, 2015
|
|
- March 31, 2015
|
|
Condensed Consolidated Statements of Equity:
|
|
- Three Months Ended March 31, 2016 and 2015
|
|
Condensed Consolidated Statements of Cash Flows:
|
|
- Three Months Ended March 31, 2016 and 2015
|
|
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
|
||||||||
|
March 31,
|
|||||||
|
2016
|
2015
|
||||||
Revenues
|
||||||||
Investment advisory and incentive fees
|
$
|
70,848
|
$
|
86,068
|
||||
Distribution fees and other income
|
10,537
|
13,738
|
||||||
Total revenues
|
81,385
|
99,806
|
||||||
Expenses
|
||||||||
Compensation
|
20,274
|
37,977
|
||||||
Management fee
|
1,080
|
4,135
|
||||||
Distribution costs
|
10,717
|
14,441
|
||||||
Other operating expenses
|
4,372
|
4,663
|
||||||
Total expenses
|
36,443
|
61,216
|
||||||
|
||||||||
Operating income
|
44,942
|
38,590
|
||||||
Other income (expense)
|
||||||||
Net gain/(loss) from investments
|
223
|
13
|
||||||
Interest and dividend income
|
368
|
528
|
||||||
Interest expense
|
(3,406
|
)
|
(1,905
|
)
|
||||
Total other expense
|
(2,815
|
)
|
(1,364
|
)
|
||||
Income before income taxes
|
42,127
|
37,226
|
||||||
Income tax provision
|
16,102
|
14,078
|
||||||
Income from continuing operations
|
26,025
|
23,148
|
||||||
Income from discontinued operations, net of taxes
|
-
|
1,628
|
||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
26,025
|
$
|
24,776
|
||||
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
||||||||
Basic - Continuing operations
|
0.89
|
0.92
|
||||||
Basic - Discontinued operations
|
-
|
0.07
|
||||||
Basic - Total
|
$
|
0.89
|
$
|
0.99
|
||||
|
||||||||
Diluted - Continuing operations
|
0.88
|
0.91
|
||||||
Diluted - Discontinued operations
|
-
|
0.06
|
||||||
Diluted - Total
|
$
|
0.88
|
$
|
0.97
|
||||
Weighted average shares outstanding:
|
||||||||
Basic
|
29,247
|
25,132
|
||||||
|
||||||||
Diluted
|
29,684
|
25,414
|
||||||
|
||||||||
Dividends declared:
|
$
|
0.02
|
$
|
0.07
|
Three Months Ended
|
||||||||
|
March 31,
|
|||||||
|
2016
|
2015
|
||||||
|
||||||||
Net income
|
$
|
26,025
|
$
|
24,776
|
||||
Other comprehensive gain/(loss), net of tax:
|
||||||||
Foreign currency translation
|
(28
|
)
|
(42
|
)
|
||||
Net unrealized gain/(loss) on securities available for sale (a)
|
2,583
|
(467
|
)
|
|||||
Other comprehensive gain/(loss)
|
2,555
|
(509
|
)
|
|||||
|
||||||||
Comprehensive income attributable to GAMCO Investors, Inc.
|
$
|
28,580
|
$
|
24,267
|
March 31,
|
December 31,
|
March 31,
|
||||||||||
2016
|
2015
|
2015
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
$
|
28,045
|
$
|
13,719
|
$
|
11,261
|
||||||
Investments in securities
|
36,419
|
32,975
|
37,954
|
|||||||||
Receivable from brokers
|
1,135
|
1,091
|
2,100
|
|||||||||
Investment advisory fees receivable
|
29,612
|
31,048
|
32,241
|
|||||||||
Receivable from affiliates
|
5,256
|
5,041
|
28,373
|
|||||||||
Income tax receivable
|
2,452
|
6,787
|
2,433
|
|||||||||
Other assets
|
13,006
|
13,238
|
11,680
|
|||||||||
Assets of discontinued operations
|
-
|
-
|
673,263
|
|||||||||
Total assets
|
$
|
115,925
|
$
|
103,899
|
$
|
799,305
|
||||||
LIABILITIES AND EQUITY
|
||||||||||||
Payable to brokers
|
$
|
-
|
$
|
12
|
$
|
46
|
||||||
Income taxes payable and deferred tax liabilities
|
12,198
|
4,823
|
23,133
|
|||||||||
Capital lease obligation
|
5,145
|
5,170
|
5,234
|
|||||||||
Compensation payable
|
19,218
|
24,426
|
38,823
|
|||||||||
Securities sold, not yet purchased
|
-
|
129
|
-
|
|||||||||
Payable to affiliates
|
3,754
|
7,687
|
28
|
|||||||||
Accrued expenses and other liabilities
|
29,710
|
28,882
|
32,071
|
|||||||||
Liabilities of discontinued operations
|
-
|
-
|
35,782
|
|||||||||
Sub-total
|
70,025
|
71,129
|
135,117
|
|||||||||
AC 4% PIK Note (due November 30, 2020) (Note F)
|
250,000
|
250,000
|
-
|
|||||||||
Loan from GGCP (due December 28, 2016) (Note F)
|
20,000
|
35,000
|
-
|
|||||||||
5.875% Senior notes (due June 1, 2021)
|
24,103
|
24,097
|
99,398
|
|||||||||
Zero coupon subordinated debentures, Face value: $0.0 million at March 31, 2016,
|
||||||||||||
$0.0 million at December 31, 2015 and $10.4 million at March 31, 2015,
|
||||||||||||
respectively (due December 31, 2015)
|
-
|
-
|
9,936
|
|||||||||
Total liabilities
|
364,128
|
380,226
|
244,451
|
|||||||||
Redeemable noncontrolling interests from discontinued operations
|
-
|
-
|
5,519
|
|||||||||
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;
|
||||||||||||
15,472,901, 15,422,901 and 15,357,733 issued, respectively;10,683,604,
|
||||||||||||
10,664,107 and 6,591,119 outstanding, respectively
|
14
|
14
|
14
|
|||||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized;
|
||||||||||||
24,000,000 shares issued; 19,106,792, 19,156,792 and 19,219,260 shares
|
||||||||||||
outstanding, respectively
|
19
|
19
|
19
|
|||||||||
Additional paid-in capital
|
1,382
|
345
|
293,958
|
|||||||||
Retained earnings (deficit)
|
(8,794
|
)
|
(34,224
|
)
|
625,926
|
|||||||
Accumulated other comprehensive income
|
11,670
|
9,115
|
24,505
|
|||||||||
Treasury stock, at cost (4,789,297, 4,758,794 and 8,766,614 shares, respectively)
|
(252,494
|
)
|
(251,596
|
)
|
(397,813
|
)
|
||||||
Total GAMCO Investors, Inc. stockholders' equity (deficit)
|
(248,203
|
)
|
(276,327
|
)
|
546,609
|
|||||||
Noncontrolling interests from discontinued operations
|
-
|
-
|
2,726
|
|||||||||
Total equity (deficit)
|
(248,203
|
)
|
(276,327
|
)
|
549,335
|
|||||||
Total liabilities and equity (deficit)
|
$
|
115,925
|
$
|
103,899
|
$
|
799,305
|
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, 2014
|
$
|
2,734
|
$
|
33
|
$
|
291,681
|
$
|
602,950
|
$
|
25,014
|
$
|
(394,617
|
)
|
$
|
527,795
|
$
|
68,334
|
|||||||||||||||
Redemptions of redeemable
|
||||||||||||||||||||||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(441
|
)
|
|||||||||||||||||||||||
Consolidation of a consolidated
|
||||||||||||||||||||||||||||||||
feeder fund
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
891
|
||||||||||||||||||||||||
Deconsolidation of offshore
|
||||||||||||||||||||||||||||||||
fund
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(63,256
|
)
|
|||||||||||||||||||||||
Net income (loss)
|
(8
|
)
|
-
|
-
|
24,776
|
-
|
-
|
24,768
|
(9
|
)
|
||||||||||||||||||||||
Net unrealized losses on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($265)
|
-
|
-
|
-
|
-
|
(451
|
)
|
-
|
(451
|
)
|
-
|
||||||||||||||||||||||
Amount reclassed from
|
||||||||||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($9)
|
-
|
-
|
-
|
-
|
(16
|
)
|
-
|
(16
|
)
|
-
|
||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
(42
|
)
|
-
|
(42
|
)
|
-
|
||||||||||||||||||||||
Dividends declared
|
||||||||||||||||||||||||||||||||
($0.07 per share)
|
-
|
-
|
-
|
(1,800
|
)
|
-
|
-
|
(1,800
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
2,277
|
-
|
-
|
-
|
2,277
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(3,196
|
)
|
(3,196
|
)
|
-
|
||||||||||||||||||||||
Balance at March 31, 2015
|
$
|
2,726
|
$
|
33
|
$
|
293,958
|
$
|
625,926
|
$
|
24,505
|
$
|
(397,813
|
)
|
$
|
549,335
|
$
|
5,519
|
GAMCO Investors, Inc. stockholders
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Additional
|
Retained
|
Other
|
||||||||||||||||||||||
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
|
-
|
-
|
26,025
|
-
|
-
|
26,025
|
||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||
net of income tax expense ($1,516)
|
-
|
-
|
-
|
2,582
|
-
|
2,582
|
||||||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||
net of income tax expense ($1)
|
-
|
-
|
-
|
1
|
-
|
1
|
||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
(28
|
)
|
-
|
(28
|
)
|
||||||||||||||||
Dividends declared
|
||||||||||||||||||||||||
($0.02 per share)
|
-
|
-
|
(595
|
)
|
-
|
-
|
(595
|
)
|
||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||
expense
|
-
|
1,037
|
-
|
-
|
-
|
1,037
|
||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
(898
|
)
|
(898
|
)
|
||||||||||||||||
Balance at March 31, 2016
|
$
|
33
|
$
|
1,382
|
$
|
(8,794
|
)
|
$
|
11,670
|
$
|
(252,494
|
)
|
$
|
(248,203
|
)
|
Three Months Ended
|
|||||
March 31,
|
|||||
2016
|
2015
|
||||
Operating activities
|
|||||
Net income
|
$
|
26,025
|
$
|
24,776
|
|
Loss from discontinued operations, net of taxes
|
-
|
(1,628)
|
|||
Income from continuing operations
|
26,025
|
23,148
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||
Equity in net gains from partnerships
|
-
|
-
|
|||
Depreciation and amortization
|
155
|
155
|
|||
Stock based compensation expense
|
1,037
|
1,639
|
|||
Deferred income taxes
|
(2,016)
|
1,166
|
|||
Tax benefit from exercise of stock options
|
-
|
-
|
|||
Foreign currency translation loss
|
(28)
|
(42)
|
|||
Other-than-temporary loss on available for sale securities
|
-
|
-
|
|||
Cost basis of donated securities
|
-
|
-
|
|||
Net gains on sales of available for sale securities
|
(2)
|
(3)
|
|||
Accretion of zero coupon debentures
|
-
|
213
|
|||
Loss on extinguishment of zero coupon debentures
|
-
|
156
|
|||
(Increase) decrease in assets:
|
|||||
Investments in trading securities
|
223
|
-
|
|||
Receivable from affiliates
|
(217)
|
(1,936)
|
|||
Receivable from brokers
|
(44)
|
(417)
|
|||
Investment advisory fees receivable
|
1,437
|
5,486
|
|||
Income tax receivable and deferred tax assets
|
4,335
|
-
|
|||
Other assets
|
66
|
419
|
|||
Increase (decrease) in liabilities:
|
|||||
Payable to affiliates
|
(3,933)
|
(326)
|
|||
Payable to brokers
|
(12)
|
34
|
|||
Income taxes payable and deferred tax liabilities
|
7,875
|
4,343
|
|||
Compensation payable
|
(5,206)
|
8,025
|
|||
Accrued expenses and other liabilities
|
793
|
4,206
|
|||
Total adjustments
|
4,463
|
23,118
|
|||
Net cash provided by operating activities from continuing operations
|
$
|
30,488
|
$
|
46,266
|
Three Months Ended
|
|||||
March 31,
|
|||||
2016
|
2015
|
||||
Investing activities
|
|||||
Purchases of available for sale securities
|
$
|
-
|
$
|
-
|
|
Proceeds from sales of available for sale securities
|
308
|
32
|
|||
Return of capital on available for sale securities
|
-
|
-
|
|||
Net cash provided by investing activities from continuing operations
|
308
|
32
|
|||
Financing activities
|
|||||
Net cash transferred from AC
|
-
|
34,832
|
|||
Proceeds from exercise of stock options
|
-
|
-
|
|||
Dividends paid
|
(585)
|
(1,759)
|
|||
Repurchase of Zero coupon subordinated debentures
|
-
|
(2,596)
|
|||
Purchase of treasury stock
|
(898)
|
(3,196)
|
|||
Repayment of loan from GGCP
|
(15,000)
|
-
|
|||
Amortization of debt issuance costs
|
6
|
-
|
|||
Net cash (used in) provided by financing activities from continuing operations
|
(16,477)
|
27,281
|
|||
Cash flows of discontinued operations
|
|||||
Net cash provided by operating activities
|
-
|
36,160
|
|||
Net cash used in investing activities
|
-
|
(41,080)
|
|||
Net cash used in financing activities
|
-
|
(70,103)
|
|||
Net cash used in discontinued operations
|
-
|
(75,023)
|
|||
Effect of exchange rates on cash and cash equivalents
|
7
|
11
|
|||
Net increase/(decrease) in cash and cash equivalents
|
14,326
|
(1,433)
|
|||
Cash and cash equivalents at beginning of period
|
13,719
|
12,694
|
|||
Cash and cash equivalents at end of period
|
$
|
28,045
|
$
|
11,261
|
|
Supplemental disclosures of cash flow information:
|
|||||
Cash paid for interest
|
$
|
197
|
$
|
199
|
|
Cash paid for taxes
|
$
|
5,137
|
$
|
9,078
|
- | For the three months ended March 31, 2016 and March 31, 2015, the Company accrued dividends on restricted stock awards of $10 and $41, respectively. |
March 31, 2016
|
December 31, 2015
|
March 31, 2015
|
||||||||||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Trading securities:
|
||||||||||||||||||||||||
Common stocks
|
$
|
15
|
$
|
17
|
$
|
385
|
$
|
368
|
$
|
-
|
$
|
-
|
||||||||||||
Total trading securities
|
15
|
17
|
385
|
368
|
-
|
-
|
||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
Common stocks
|
17,592
|
36,402
|
17,898
|
32,607
|
13,609
|
37,954
|
||||||||||||||||||
Total available for sale securities
|
17,592
|
36,402
|
17,898
|
32,607
|
13,609
|
37,954
|
||||||||||||||||||
Total investments in securities
|
$
|
17,607
|
$
|
36,419
|
$
|
18,283
|
$
|
32,975
|
$
|
13,609
|
$
|
37,954
|
March 31, 2016
|
December 31, 2015
|
March 31, 2015
|
||||||||||||||||||||||
Proceeds
|
Fair Value
|
Proceeds
|
Fair Value
|
Proceeds
|
Fair Value
|
|||||||||||||||||||
Trading securities:
|
(In thousands)
|
|||||||||||||||||||||||
Common stocks
|
$
|
-
|
$
|
-
|
$
|
123
|
$
|
129
|
$
|
-
|
$
|
-
|
||||||||||||
Total securities sold, not yet purchased
|
$
|
-
|
$
|
-
|
$
|
123
|
$
|
129
|
$
|
-
|
$
|
-
|
Amount
|
Affected Line Items
|
Reason for
|
||||||||
Reclassified
|
in the Statements
|
Reclassification
|
||||||||
from AOCI
|
Of Income
|
from AOCI
|
||||||||
Three Months Ended March 31,
|
|
|
||||||||
2016
|
2015
|
|
|
|||||||
$
|
2
|
$
|
3
|
Net gain from investments
|
Realized gain on sale of AFS securities
|
|||||
2
|
3
|
Income before income taxes
|
|
|||||||
(1
|
)
|
(1
|
)
|
Income tax provision
|
|
|||||
$
|
1
|
$
|
2
|
Net income
|
|
March 31, 2016
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Common stocks
|
$
|
17,592
|
$
|
18,810
|
$
|
-
|
$
|
36,402
|
||||||||
Total available for sale securities
|
$
|
17,592
|
$
|
18,810
|
$
|
-
|
$
|
36,402
|
December 31, 2015
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Common stocks
|
$
|
17,898
|
$
|
14,709
|
$
|
-
|
$
|
32,607
|
||||||||
Total available for sale securities
|
$
|
17,898
|
$
|
14,709
|
$
|
-
|
$
|
32,607
|
March 31, 2015
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Common stocks
|
$
|
13,609
|
$
|
24,345
|
$
|
-
|
$
|
37,954
|
||||||||
Total available for sale securities
|
$
|
13,609
|
$
|
24,345
|
$
|
-
|
$
|
37,954
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
March 31,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2016
|
||||||||||||
Cash equivalents
|
$
|
27,909
|
$
|
-
|
$
|
-
|
$
|
27,909
|
||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
36,402
|
-
|
-
|
36,402
|
||||||||||||
Trading - Common stocks
|
17
|
-
|
-
|
17
|
||||||||||||
Total investments in securities
|
36,419
|
-
|
-
|
36,419
|
||||||||||||
Total assets at fair value
|
$
|
64,328
|
$
|
-
|
$
|
-
|
$
|
64,328
|
||||||||
Liabilities
|
||||||||||||||||
Securities sold, not yet purchased:
|
||||||||||||||||
Trading - Common stocks
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Total securities sold, not yet purchased
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
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)
|
2015
|
||||||||||||
Cash equivalents
|
$
|
13,538
|
$
|
-
|
$
|
-
|
$
|
13,538
|
||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
32,607
|
-
|
-
|
32,607
|
||||||||||||
Trading - Common stocks
|
368
|
-
|
-
|
368
|
||||||||||||
Total investments in securities
|
32,975
|
-
|
-
|
32,975
|
||||||||||||
Total assets at fair value
|
$
|
46,513
|
$
|
-
|
$
|
-
|
$
|
46,513
|
||||||||
Liabilities
|
||||||||||||||||
Securities sold, not yet purchased:
|
||||||||||||||||
Trading - Common stocks
|
$
|
129
|
$
|
-
|
$
|
-
|
$
|
129
|
||||||||
Total securities sold, not yet purchased
|
$
|
129
|
$
|
-
|
$
|
-
|
$
|
129
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
March 31,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2015
|
||||||||||||
Cash equivalents
|
$
|
11,107
|
$
|
-
|
$
|
-
|
$
|
11,107
|
||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
37,954
|
-
|
-
|
37,954
|
||||||||||||
Trading - Common stocks
|
-
|
-
|
-
|
-
|
||||||||||||
Total investments in securities
|
37,954
|
-
|
-
|
37,954
|
||||||||||||
Total assets at fair value
|
$
|
49,061
|
$
|
-
|
$
|
-
|
$
|
49,061
|
||||||||
Liabilities
|
||||||||||||||||
Securities sold, not yet purchased:
|
||||||||||||||||
Trading - Common stocks
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Total securities sold, not yet purchased
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|
Three Months Ended March 31,
|
|||||||
(In thousands, except per share amounts)
|
2016
|
2015
|
||||||
Basic:
|
||||||||
Income from continuing operations
|
$
|
26,025
|
$
|
23,148
|
||||
Income from discontinued operations, net of taxes
|
-
|
1,628
|
||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
26,025
|
$
|
24,776
|
||||
|
||||||||
Weighted average shares outstanding
|
29,247
|
25,132
|
||||||
|
||||||||
Basic net income per share attributable to GAMCO
|
||||||||
Investors, Inc.'s shareholders:
|
||||||||
Continuing operations
|
$
|
0.89
|
$
|
0.92
|
||||
Discontinued operations
|
-
|
0.07
|
||||||
Total
|
$
|
0.89
|
$
|
0.99
|
||||
|
||||||||
Diluted:
|
||||||||
Income from continuing operations
|
$
|
26,025
|
$
|
23,148
|
||||
Income from discontinued operations, net of taxes
|
-
|
1,628
|
||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
26,025
|
$
|
24,776
|
||||
|
||||||||
Weighted average share outstanding
|
29,247
|
25,132
|
||||||
Dilutive stock options and restricted stock awards
|
437
|
282
|
||||||
Total
|
29,684
|
25,414
|
||||||
|
||||||||
Diluted net income per share attributable to GAMCO
|
||||||||
Investors, Inc.'s shareholders:
|
||||||||
Continuing operations
|
$
|
0.88
|
$
|
0.91
|
||||
Discontinued operations
|
-
|
0.06
|
||||||
Total
|
$
|
0.88
|
$
|
0.97
|
March 31, 2016
|
December 31, 2015
|
March 31, 2015
|
||||||||||||||||||||||
Carrying
|
Fair Value
|
Carrying
|
Fair Value
|
Carrying
|
Fair Value
|
|||||||||||||||||||
Value
|
Level 2
|
Value
|
Level 2
|
Value
|
Level 2
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
AC 4% PIK Note
|
$
|
250,000
|
$
|
249,183
|
$
|
250,000
|
$
|
250,000
|
$
|
-
|
$
|
-
|
||||||||||||
Loan from GGCP
|
20,000
|
20,161
|
35,000
|
35,000
|
-
|
-
|
||||||||||||||||||
5.875% Senior notes
|
24,103
|
23,741
|
24,097
|
24,437
|
99,398
|
109,541
|
||||||||||||||||||
0% Subordinated debentures
|
-
|
-
|
-
|
-
|
9,936
|
10,440
|
||||||||||||||||||
Total
|
$
|
294,103
|
$
|
293,085
|
$
|
309,097
|
$
|
309,437
|
$
|
109,334
|
$
|
119,981
|
|
Payment
|
Record
|
|||||||
|
Date
|
Date
|
Amount
|
||||||
Three months ended March 31, 2016
|
March 29, 2016
|
March 15, 2016
|
$
|
0.02
|
|||||
Three months ended March 31, 2015
|
March 31, 2015
|
March 17, 2015
|
$
|
0.07
|
|||||
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||
Q1
|
$
|
1,639
|
$
|
1,037
|
$
|
685
|
$
|
464
|
$
|
365
|
||||||||||||
Q2
|
1,640
|
1,036
|
685
|
453
|
365
|
|||||||||||||||||
Q3
|
1,644
|
806
|
602
|
402
|
323
|
|||||||||||||||||
Q4
|
4,945
|
691
|
520
|
366
|
295
|
|||||||||||||||||
Full Year
|
$
|
9,868
|
$
|
3,570
|
$
|
2,492
|
$
|
1,685
|
$
|
1,348
|
||||||||||||
2020
|
2021
|
2022
|
2023
|
2024
|
||||||||||||||||||
Q1
|
$
|
219
|
145
|
$
|
93
|
$
|
48
|
$
|
7
|
|||||||||||||
Q2
|
204
|
145
|
93
|
48
|
7
|
|||||||||||||||||
Q3
|
169
|
114
|
66
|
24
|
5
|
|||||||||||||||||
Q4
|
145
|
93
|
48
|
7
|
-
|
|||||||||||||||||
Full Year
|
$
|
737
|
497
|
$
|
300
|
$
|
127
|
$
|
19
|
Period Ended
|
||||
|
March 31, 2015
|
|||
Revenues
|
||||
Investment advisory and incentive fees
|
$
|
2,119
|
||
Distribution fees and other income
|
134
|
|||
Institutional research services
|
2,447
|
|||
Total revenues
|
4,700
|
|||
Expenses
|
||||
Compensation
|
5,879
|
|||
Stock based compensation
|
638
|
|||
Management fee
|
302
|
|||
Distribution costs
|
(29
|
)
|
||
Other operating expenses
|
2,555
|
|||
Total expenses
|
9,345
|
|||
Operating loss
|
(4,645
|
)
|
||
Other income (expense)
|
||||
Net gain from investments
|
6,945
|
|||
Interest and dividend income
|
746
|
|||
Interest expense
|
(334
|
)
|
||
Total other income (expense), net
|
7,357
|
|||
Income from discontinued operations before income taxes
|
2,712
|
|||
Income tax provision
|
1,101
|
|||
Income from discontinued operations, net of taxes
|
1,611
|
|||
Net loss attributable to noncontrolling interests
|
(17
|
)
|
||
Net income attributable to GAMCO Investors, Inc.'s discontinued operations, net of taxes
|
$
|
1,628
|
|
March 31, 2015
|
|||
Cash and cash equivalents
|
$
|
320,373
|
||
Investments in securities
|
120,834
|
|||
Investments in sponsored registered investment companies
|
120,831
|
|||
Investments in partnerships
|
106,943
|
|||
Receivable from brokers
|
19,515
|
|||
Investment advisory fees receivable
|
1,462
|
|||
Receivable from affiliates
|
(28,373
|
)
|
||
Income tax receivable
|
10
|
|||
Other assets
|
11,668
|
|||
Total assets of discontinued operations
|
673,263
|
|||
Payable to brokers
|
10,128
|
|||
Income taxes payable and deferred tax liabilities
|
9,697
|
|||
Compensation payable
|
4,571
|
|||
Securities sold, not yet purchased
|
8,569
|
|||
Payable to affiliates
|
(28
|
)
|
||
Mandatorily redeemable noncontrolling interests
|
1,298
|
|||
Accrued expenses and other liabilities
|
1,547
|
|||
Total liabilities of discontinued operations
|
35,782
|
|||
|
||||
Redeemable noncontrolling interests from discontinued operations
|
5,519
|
|||
|
||||
Noncontrolling interests from discontinued operations
|
2,726
|
|||
|
||||
Net assets of discontinued operations
|
$
|
629,236
|
Fund
|
||||||||||||||||||||
Market
|
distributions,
|
|||||||||||||||||||
December 31,
|
appreciation/
|
Net cash
|
net of
|
March 31,
|
||||||||||||||||
|
2015
|
(depreciation)
|
flows
|
reinvestments
|
2016
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
13,811
|
$
|
465
|
$
|
(458
|
)
|
$
|
(11
|
)
|
$
|
13,807
|
||||||||
Closed-end Funds
|
6,492
|
213
|
70
|
(112
|
)
|
6,663
|
||||||||||||||
Institutional & PWM - direct
|
13,366
|
241
|
(327
|
)
|
-
|
13,280
|
||||||||||||||
Institutional & PWM - sub-advisory
|
3,401
|
67
|
(41
|
)
|
-
|
3,427
|
||||||||||||||
SICAV
|
37
|
1
|
-
|
-
|
38
|
|||||||||||||||
Total Equities
|
37,107
|
987
|
(756
|
)
|
(123
|
)
|
37,215
|
|||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,514
|
-
|
(40
|
)
|
-
|
1,474
|
||||||||||||||
Institutional & PWM
|
38
|
-
|
(6
|
)
|
-
|
32
|
||||||||||||||
Total Fixed Income
|
1,552
|
-
|
(46
|
)
|
-
|
1,506
|
||||||||||||||
Total Assets Under Management
|
$
|
38,659
|
$
|
987
|
$
|
(802
|
)
|
$
|
(123
|
)
|
$
|
38,721
|
% Change From
|
||||||||||||||||||||
March 31,
|
December 31,
|
March 31,
|
December 31,
|
March 31,
|
||||||||||||||||
|
2016
|
2015
|
2015
|
2015
|
2015
|
|||||||||||||||
Equities:
|
||||||||||||||||||||
Open-end Funds
|
$
|
13,807
|
$
|
13,811
|
$
|
16,643
|
0.0
|
%
|
(17.0
|
%)
|
||||||||||
Closed-end Funds
|
6,663
|
6,492
|
7,071
|
2.6
|
(5.8
|
)
|
||||||||||||||
Institutional & PWM - direct
|
13,280
|
13,366
|
16,407
|
(0.6
|
)
|
(19.1
|
)
|
|||||||||||||
Institutional & PWM - sub-advisory
|
3,427
|
3,401
|
3,814
|
0.8
|
(10.1
|
)
|
||||||||||||||
SICAV
|
38
|
37
|
-
|
2.7
|
n/
|
m
|
||||||||||||||
Total Equities
|
37,215
|
37,107
|
43,935
|
0.3
|
(15.3
|
)
|
||||||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
1,474
|
1,514
|
1,520
|
(2.6
|
)
|
(3.0
|
)
|
|||||||||||||
Institutional & PWM
|
32
|
38
|
52
|
(15.8
|
)
|
(38.5
|
)
|
|||||||||||||
Total Fixed Income
|
1,506
|
1,552
|
1,572
|
(3.0
|
)
|
(4.2
|
)
|
|||||||||||||
Total Assets Under Management
|
$
|
38,721
|
$
|
38,659
|
$
|
45,507
|
0.2
|
%
|
(14.9
|
%)
|
(Unaudited; in thousands, except per share data)
|
||||||||
|
2016
|
2015
|
||||||
Revenues
|
||||||||
Investment advisory and incentive fees
|
$
|
70,848
|
$
|
86,068
|
||||
Distribution fees and other income
|
10,537
|
13,738
|
||||||
Total revenues
|
81,385
|
99,806
|
||||||
Expenses
|
||||||||
Compensation
|
20,274
|
37,977
|
||||||
Management fee
|
1,080
|
4,135
|
||||||
Distribution costs
|
10,717
|
14,441
|
||||||
Other operating expenses
|
4,372
|
4,663
|
||||||
Total expenses
|
36,443
|
61,216
|
||||||
Operating income
|
44,942
|
38,590
|
||||||
Other income (expense)
|
||||||||
Net gain from trading securities
|
223
|
13
|
||||||
Interest and dividend income
|
368
|
528
|
||||||
Interest expense
|
(3,406
|
)
|
(1,905
|
)
|
||||
Total other expense
|
(2,815
|
)
|
(1,364
|
)
|
||||
Income before income taxes
|
42,127
|
37,226
|
||||||
Income tax provision
|
16,102
|
14,078
|
||||||
Income from continuing operations
|
26,025
|
23,148
|
||||||
Income from discontinued operations
|
-
|
1,628
|
||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
26,025
|
$
|
24,776
|
||||
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
|
$
|
0.89
|
$
|
0.92
|
||||
Basic - Continuing operations
|
-
|
0.07
|
||||||
Basic - Discontinued operations
|
$
|
0.89
|
$
|
0.99
|
||||
Basic - Total
|
||||||||
Diluted - Continuing operations
|
$
|
0.88
|
$
|
0.91
|
||||
Diluted - Discontinued operations
|
-
|
0.06
|
||||||
Diluted - Total
|
$
|
0.88
|
$
|
0.97
|
|
Three Months Ended March 31, 2016
|
|||||||||||
Impact of
|
||||||||||||
Reported
|
Deferred
|
|||||||||||
|
GAAP
|
Compensation
|
Non-GAAP
|
|||||||||
Revenues
|
||||||||||||
Investment advisory and incentive fees
|
$
|
70,848
|
$
|
-
|
$
|
70,848
|
||||||
Distribution fees and other income
|
10,537
|
-
|
10,537
|
|||||||||
Total revenues
|
81,385
|
-
|
81,385
|
|||||||||
Expenses
|
||||||||||||
Compensation
|
20,274
|
10,412
|
30,686
|
|||||||||
Management fee
|
1,080
|
2,199
|
3,279
|
|||||||||
Distribution costs
|
10,717
|
-
|
10,717
|
|||||||||
Other operating expenses
|
4,372
|
-
|
4,372
|
|||||||||
Total expenses
|
36,443
|
12,611
|
49,054
|
|||||||||
|
||||||||||||
Operating income
|