News Column

GAMCO Investors, Inc. Reports Record Second Quarter Results

July 24, 2014

  • Assets under Management Rise to a Record $49.4 Billion
  • Second Quarter Earnings $1.13 per diluted share

    RYE, N.Y.--(BUSINESS WIRE)-- GAMCO Investors, Inc. (“GAMCO”) (NYSE:GBL) today reported its 2014 second quarter results including revenues of $108.3 million, net income of $29.0 million and earnings of $1.13 per diluted share. On a comparable basis, revenues were $92.3 million, net income was $27.9 million, and earnings were $1.09 per diluted share in the second quarter of 2013.

    Assets under Management (“AUM”) rose to a record $49.4 billion, up almost $2 billion from the $47.6 billion at March 31, 2014 and up 22.0% from $40.5 billion at June 30, 2013.

    For the first half of 2014 the Company generated revenues of $212.8 million, net income of $56.9 million and earnings of $2.22 per diluted share, an increase of 13.3% from earnings of $1.96 per diluted share in the first half of 2013.

                                                         
    Financial Highlights           Q2       Q2             YTD       YTD      
    ($'s in 000's except AUM and per share data) 20132014

    % ?

    20132014

    % ?

     
    AUM - end of period (in millions) $ 40,478 $ 49,377 22.0 % $ 40,478 $ 49,377 22.0 %
    AUM - average (in millions) 40,331 48,132 19.3 39,389 47,556 20.7
     
    Revenues 92,290 108,296 17.3 178,471 212,773 19.2
     
    Operating income before management fee (a) 36,630 42,681 16.5 71,337 83,908 17.6
    Operating margin before management fee 39.7 % 39.4 % 40.0 % 39.4 %
     
    Other income/(expense), net 11,852 8,921 17,000 15,014
     
    Income before income taxes 43,636 46,458 6.5 79,511 89,050 12.0
    Effective tax rate 36.0 % 36.9 % 36.4 % 35.7 %
     
    Net income 27,893 28,950 3.8 50,438 56,904 12.8
    Net income per share (b) $ 1.09 $ 1.13 3.7 % $ 1.96 $ 2.22 13.3 %
     
    Shares outstanding at June 30             25,630           25,899                   25,630           25,899          
     



    (a)

    See GAAP to non-GAAP reconciliation on page 11.

    (b)

    After a $0.11 per fully diluted share charge in the first quarter 2013 for our shareholder-designated charitable contribution program.

     


    Assets Under Management

    Total firm AUM increased to a record $49.4 billion at June 30, 2014, up $1.8 billion from the first quarter of 2014 and $8.9 billion from June 30, 2013. Average AUM were $48.1 billion, an increase of 19.3% from $40.3 billion in the comparable 2013 quarter. Our second quarter 2014 increase was due to market appreciation of $2.0 billion partially offset by net outflows of $47 million and open- and closed-end fund net distributions of $150 million.

    AUM in the open-end equity funds increased almost $1 billion during the second quarter to $18.5 billion, 5.6% ahead of the previous quarter end and 30.4% higher than the year earlier period. Net inflows into our open-end equity funds totaled $241 million, excluding net distributions of $32 million. Market appreciation during the second quarter of 2014 added $768 million.

    Solid performance enabled our closed-end funds to climb 12.7% to AUM of $7.2 billion on June 30, 2014 from the $6.4 billion on June 30, 2013 and 3.7% from the $7.0 billion on March 31, 2014. During the twelve month period ended on June 30, 2014 there were $487 million of distributions from all closed-end funds. For the second quarter of 2014, market appreciation was $366 million, offset by $118 million of distributions from all closed-end funds, net of reinvestments.

    Institutional and private wealth management AUM at June 30, 2014 was $20.9 billion, 3.0% higher than March 31, 2014 AUM of $20.3 billion and 20.8% higher than the comparable 2013 period end. Average AUM in the institutional and private wealth management accounts were $20.4 billion, 19.3% higher than the prior year quarter.

    AUM in our investment partnerships’ rose to $897 million on June 30, 2014 from $865 million on March 31, 2014 from a combination of net inflows of $15 million and market appreciation of $17 million.

    Revenues

  • Total revenues for the second quarter of 2014 were $108.3 million, up 17.4% from $92.3 million in the prior year. Year over year revenue growth was supported by a 22.0% increase in total firm AUM, paced by a 30.4% increase in our open-end equity funds.
  • Investment advisory and incentive fees were $90.2 million in the second quarter of 2014, an increase of $12.8 million or 16.4% from the comparable 2013 quarter. Revenues were generally driven by growth in average AUM in our open- and closed-end funds and higher billable assets in our institutional and private wealth management accounts. Incentive fees earned during the 2014 quarter totaled $0.5 million versus $2.1 million in the second quarter of 2013.
  • Distribution fees from our open-end funds and other income were $15.8 million for the second quarter 2014, an increase of $3.3 million, or 25.9%, from the prior year quarter of $12.5 million.
  • Our institutional research services revenues were $2.4 million in the second quarter 2014 versus $2.3 million in the prior year period.

    Operating Income – Second Quarter

    Operating income, which is net of management fee expense, increased 17.9% or $5.7 million to $37.5 million in the second quarter of 2014 versus $31.8 million in the prior year period. The operating margin rose to 34.7% in the second quarter of 2014 versus 34.4% in the comparable prior year period. Operating margin improved largely due to the lower management fee resulting from the decreased non-operating other income and partially offset by higher stock compensation costs as compared to the prior year quarter. The Company issued RSAs during the second half of 2013 resulting in a $1.7 million increase in stock compensation costs in the 2014 quarter versus the prior year quarter. Management fee expense, which is incentive based and entirely variable, is based on pre-tax income and is impacted by changes in both operating and non-operating income.

    Operating income before management fee was $42.7 million in the second quarter 2014 versus $36.6 million in the second quarter 2013. Operating margin before management fee declined to 39.4% versus 39.7% in the second quarter of 2013 due to the higher stock compensation costs in the current year period. Management believes evaluating operating income before management fee is an important measure in analyzing the Company’s operating results. Further information regarding Non-GAAP measures is included in Notes on Non-GAAP Financial Measures and Table VII included elsewhere herein.

    Other income (expense)

    Other income/(expense), net, was $8.9 million in the 2014 quarter versus $11.9 million in the second quarter of 2013. Gains from investments in mutual funds, alternative investment products and proprietary accounts were $9.7 million in the 2014 quarter versus $12.1 million in the second quarter of 2013. Dividend and interest income totaled $1.3 million, down from $2.5 million in the prior year period. The decrease in interest expense to $2.0 million in the 2014 second quarter versus $2.8 million in the prior year quarter was due to the repayment of the Company’s $99 million 5.5% senior notes on May 15, 2013.

    Income Taxes

    The second quarter 2014 effective tax rate (“ETR”) was 36.9% compared to 36.0% in the 2013 quarter as the prior year quarter benefitted from the reversal of certain state tax accruals. We expect the ETR for the remainder of the year to more closely track our prior year ETR of 36.1%.

    Business and Investment Highlights

  • On April 15, 2014, the shareholders of The Gabelli Dividend & Income Trust (NYSE: GDV) approved the spin-off of a $100 million closed-end investment company, The Gabelli Global Small and Mid Cap Value Trust (NYSE: GGZ) from GDV. GGZ, our 11th closed-end fund, will seek long-term growth of capital by investing at least 80% of its total assets, under normal market conditions, in equity securities of companies with small or medium-sized market capitalizations and at least 40% of its total assets in the equity securities of companies located outside the United States and in at least three countries.
  • In May 2014, Gabelli & Company hosted its 8th annual Omaha research trip in conjunction with the Berkshire Hathaway Annual Meeting as well as its 6th annual Movie & Entertainment Conference.
  • At our 29th GAMCO client conference held at the Pierre Hotel in New York City on May 16th we inducted three new members into our GAMCO Management Hall of Fame. The inductees were: Carl Icahn of Icahn Enterprises, Colleen Brown of Fisher Communications and Matthew Shattock of Beam Inc. Additionally, we named Professor Ravi Jagannathan of the Kellogg School of Management at Northwestern University and William E. Simon, Jr. Co-Chairman of William E. Simon & Sons and visiting Professor at the UCLA Anderson School of Management as the 2014 recipients of the Graham & Dodd, Murray, Greenwald Prize for Value Investing.
  • In the May 26, 2014 issue of Pensions & Investments Report on the Largest Money Managers-Worldwide Institutional Assets Under Management, GAMCO was ranked #167 for the year ended December 31, 2013 up from #175 for the year ended December 31, 2012.
  • In July 2014, The Gabelli Healthcare & WellnessRx Trust (NYSE: GRX) and the Gabelli Multimedia Trust (NYSE: GGT) completed rights offerings raising $44 million and $54 million, respectively, of new equity. Both offerings were heavily over-subscribed.
  • Gabelli Funds was an underwriter of the exhibition of Italian master portraitist, Parmigianino’s the “Turkish Slave” at the Frick Collection in New York.

    Balance Sheet

    We ended the quarter with cash and investments of $681.8 million, debt of $111.8 million ($113.2 million face value) and equity attributable to GAMCO shareholders of $494.4 million. We have $400 million available on our universal shelf registration. Together with earnings from operations, the shelf provides us with flexibility to do acquisitions, lift-outs, seed new investment strategies, and co-invest, as well as fund shareholder compensation including, share repurchases and dividends.

    Shareholder Compensation

    During the quarter ended June 30, 2014, we returned $9.7 million of our earnings to shareholders through dividends and stock repurchases. We repurchased 103,528 shares at an average price of $77.76 per share through our stock buyback program, for a total investment of $8.1 million. We returned $1.6 million through cash dividends.

     

    NOTES ON NON-GAAP FINANCIAL MEASURES

     
    A.     Operating income before management fee expense is used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of GAMCO Investors, Inc. (the “Company”) as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense. The reconciliation of operating income before management fee expense to operating income is provided in Table VII.
     
    B. Operating income before management fee expense per share and other income, net per share are used by management for purposes of evaluating its business operations. We believe these measures are useful in comparing the operating and non-operating results of the Company for the purposes of understanding the composition of net income per fully diluted share. The negative swings in other income, net of $0.08 and $0.05 per fully diluted share for the quarter and year to date, respectively, are derived by making certain necessary adjustments, as shown in the table below, to arrive at a net impact for each period and then calculating the difference. The reconciliation of operating income before management fee expense per share and other income, net per share to net income per fully diluted share, is provided below.
     
              2nd Quarter       YTD June
    2013       20142013       2014
    Operating income before management fee $ 36,630 $ 42,681 $ 71,337 $ 83,908
    Management fee expense (3,667 ) (4,252 ) (7,126 ) (8,371 )
    Tax expense (11,878 ) (14,174 ) (23,354 ) (26,933 )
    Noncontrolling interest expense   91     87     177     166  
    Operating income (after management fee and taxes)   21,176     24,342     41,034     48,770  
    Per fully diluted share $ 0.83   $ 0.95   $ 1.59   $ 1.90  
     
    Other income, net $ 11,852 $ 8,921 $ 17,000 $ 15,014
    Management fee expense (1,179 ) (892 ) (1,700 ) (1,501 )
    Tax expense (3,846 ) (2,961 ) (5,565 ) (4,818 )
    Noncontrolling interest (expense)/benefit   (110 )   (460 )   (331 )   (561 )
    Other income, net (after management fee and taxes) $ 6,717   $ 4,608   $ 9,404   $ 8,134  
    Per fully diluted share $ 0.26   $ 0.18   $ 0.37   $ 0.32  
     
    Net income per fully diluted share $ 1.09   $ 1.13   $ 1.96   $ 2.22  
    Diluted weighted average shares outstanding   25,689     25,585     25,723     25,634  
     


    SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

    The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe. Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.

    Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10-K and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.

     
    The Company reported Assets Under Management as follows (in millions):
     
    Table I: Fund Flows - 2nd Quarter 2014
                          Fund    
    Marketdistributions,
    March 31,appreciation/Net cashnet ofJune 30,
    2014(depreciation)   flowsreinvestments2014
    Equities:
    Open-end Funds $ 17,531 $ 768 $ 241 $ (32 ) $ 18,508
    Closed-end Funds 6,967 366 9 (118 ) 7,224
    Institutional & PWM - direct 16,403 735 (197 ) - 16,941
    Institutional & PWM - sub-advisory 3,822 132 (71 ) - 3,883
    Investment Partnerships 865 17 15 - 897
    SICAV (a)   91   1   2     -     94
    Total Equities   45,679   2,019   (1 )   (150 )   47,547
    Fixed Income:
    Money-Market Fund 1,812 - (46 ) - 1,766
    Institutional & PWM   64   -   -     -     64
    Total Fixed Income   1,876   -   (46 )   -     1,830
    Total Assets Under Management $ 47,555 $ 2,019 $ (47 ) $ (150 ) $ 49,377
     
     
    The Company reported Assets Under Management as follows (in millions):
     
    Table II: Fund Flows - Six Months ended June 30, 2014
                          Fund    
    Marketdistributions,
    December 31,appreciation/Net cashnet ofJune 30,
    2013(depreciation)   flowsreinvestments2014
    Equities:
    Open-end Funds $ 17,078 $ 997 $ 495 $ (62 ) $ 18,508
    Closed-end Funds 6,945 506 4 (231 ) 7,224
    Institutional & PWM - direct 16,486 929 (474 ) - 16,941
    Institutional & PWM - sub-advisory 3,797 184 (98 ) - 3,883
    Investment Partnerships 811 24 62 - 897
    SICAV (a)   96   2   (4 )   -     94
    Total Equities   45,213   2,642   (15 )   (293 )   47,547
    Fixed Income:
    Money-Market Fund 1,735 - 31 - 1,766
    Institutional & PWM   62   -   2     -     64
    Total Fixed Income   1,797   -   33     -     1,830
    Total Assets Under Management $ 47,010 $ 2,642 $ 18   $ (293 ) $ 49,377
     
     
    Table III: Assets Under Management
              June 30,       June 30,       %
    20132014Inc.(Dec.)
    Equities:
    Open-end Funds $ 14,188 $ 18,508 30.4 %
    Closed-end Funds 6,409 7,224 12.7
    Institutional & PWM - direct 14,069 16,941 20.4
    Institutional & PWM - sub-advisory 3,185 3,883 21.9
    Investment Partnerships 778 897 15.3
    SICAV (a)   93   94 1.1
    Total Equities   38,722   47,547 22.8
    Fixed Income:
    Money-Market Fund 1,689 1,766 4.6
    Institutional & PWM   67   64 (4.5 )
    Total Fixed Income   1,756   1,830 4.2
    Total Assets Under Management $ 40,478 $ 49,377 22.0 %
     
    Table IV: Assets Under Management by Quarter
     
                                           

    % ?

    6/139/1312/133/146/146/13       3/14
    Equities:
    Open-end Funds $ 14,188 $ 15,581 $ 17,078 $ 17,531 $ 18,508 30.4 % 5.6 %
    Closed-end Funds 6,409 6,721 6,945 6,967 7,224 12.7 3.7
    Institutional & PWM - direct 14,069 15,026 16,486 16,403 16,941 20.4 3.3
    Institutional & PWM - sub-advisory 3,185 3,503 3,797 3,822 3,883 21.9 1.6
    Investment Partnerships 778 805 811 865 897 15.3 3.7
    SICAV (a)   93   94   96   91   94 1.1 3.3
    Total Equities   38,722   41,730   45,213   45,679   47,547 22.8 4.1
    Fixed Income:
    Money-Market Fund 1,689 1,714 1,735 1,812 1,766 4.6 (2.5 )
    Institutional & PWM   67   63   62   64   64 (4.5 ) -
    Total Fixed Income   1,756   1,777   1,797   1,876   1,830 4.2 (2.5 )
    Total Assets Under Management $ 40,478 $ 43,507 $ 47,010 $ 47,555 $ 49,377 22.0 % 3.8 %

     

    (a) Includes $90 million, $92 million, $94 million, $88 million and $77 million of proprietary seed capital at June 30, 2013, September 30, 2013, December 31, 2013, March 31, 2014 and June 30, 2014, respectively.
     
    Table V
     
    GAMCO INVESTORS, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except per share data)
     
              For the Quarter Ended June 30,
                % Inc.
    20132014(Dec.)
     
    Investment advisory and incentive fees $ 77,443 $ 90,156 16.4 %
    Distribution fees and other income 12,522 15,767 25.9
    Institutional research services   2,325     2,373   2.1
    Total revenues 92,290 108,296 17.3
     
    Compensation costs 37,759 44,045 16.6
    Distribution costs 11,871 15,023 26.6
    Other operating expenses   6,030     6,547   8.6
    Total expenses 55,660 65,615 17.9
     
    Operating income before management fee 36,630 42,681 16.5
     
    Investment income 14,648 11,076
    Interest expense (2,796 ) (2,021 )
    Shareholder-designated contribution   -     (134 )
    Other income, net   11,852     8,921  
     
    Income before management fee and income taxes 48,482 51,602 6.4
    Management fee expense   4,846     5,144  
    Income before income taxes 43,636 46,458 6.5
    Income tax expense   15,724     17,135  
    Net income 27,912 29,323 5.1
    Net income attributable to noncontrolling interests   19     373  
    Net income attributable to GAMCO Investors, Inc. $ 27,893   $ 28,950   3.8
     
    Net income per share attributable to GAMCO Investors, Inc.:
    Basic $ 1.09   $ 1.14   4.6
     
    Diluted $ 1.09   $ 1.13   3.7
     
    Weighted average shares outstanding:
    Basic   25,679     25,381   (1.2 )
     
    Diluted   25,689     25,586   (0.4 )
     
    Actual shares outstanding (a)   25,630     25,899   1.0 %
     
    Notes:
    (a) Includes 0 and 564,250 of RSAs, respectively.
    See GAAP to non-GAAP reconciliation on page 11.
     
     
    Table VI
     
    GAMCO INVESTORS, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except per share data)
     
              For the Six Months Ended June 30,
                % Inc.
    20132014(Dec.)
     
    Investment advisory and incentive fees $ 150,050 $ 177,953 18.6 %
    Distribution fees and other income 23,875 30,640 28.3
    Institutional research services   4,546     4,180   (8.1 )
    Total revenues 178,471 212,773 19.2
     
    Compensation costs 73,411 87,942 19.8
    Distribution costs 22,881 28,986 26.7
    Other operating expenses   10,842     11,937   10.1
    Total expenses 107,134 128,865 20.3
     
    Operating income before management fee 71,337 83,908 17.6
     
    Investment income 28,284 19,161
    Interest expense (6,284 ) (4,013 )
    Shareholder-designated contribution   (5,000 )   (134 )
    Other income, net   17,000     15,014  
     
    Income before management fee and income taxes 88,337 98,922 12.0
    Management fee expense   8,826     9,872  
    Income before income taxes 79,511 89,050 12.0
    Income tax expense   28,919     31,751  
    Net income 50,592 57,299 13.3
    Net income attributable to noncontrolling interests   154     395  
    Net income attributable to GAMCO Investors, Inc. $ 50,438   $ 56,904   12.8
     
    Net income per share attributable to GAMCO Investors, Inc.:
    Basic $ 1.96   $ 2.24   14.3
     
    Diluted $ 1.96   $ 2.22   13.3
     
    Weighted average shares outstanding:
    Basic   25,710     25,431   (1.1 )
     
    Diluted   25,723     25,635   (0.3 )
     
    Actual shares outstanding (a)   25,630     25,899   1.0 %
     
    Notes:
    (a) Includes 0 and 564,250 of RSAs, respectively.
    See GAAP to non-GAAP reconciliation on page 11.
     
     
    Table VII
    GAMCO INVESTORS, INC.
    UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except per share data)
     
              2013     2014
    1st     2nd     3rd     4th     1st     2nd
    QuarterQuarterQuarterQuarterFull YearQuarterQuarter
    Income Statement Data:
     
    Revenues $ 86,181 $ 92,290 $ 96,377 $ 122,714 $ 397,562 $ 104,477 $ 108,296
     
    Expenses   51,474     55,660     58,020     71,167     236,321     63,250     65,615  
     
    Operating income before
    management fee 34,707 36,630 38,357 51,547 161,241 41,227 42,681
     
    Investment income/(loss) 13,636 14,648 20,468 13,524 62,276 8,085 11,076
    Interest expense (3,488 ) (2,796 ) (2,164 ) (2,063 ) (10,511 ) (1,992 ) (2,021 )
    Shareholder-designated contribution   (5,000 )   -     (313 )   (5,313 )   (10,626 )   -     (134 )
    Other income/(expense), net 5,148 11,852 17,991 6,148 41,139 6,093 8,921
     
    Income before management
    fee and income taxes 39,855 48,482 56,348 57,695 202,380 47,320 51,602
    Management fee expense   3,980     4,846     5,629     4,374     18,829     4,728     5,144  
    Income before income taxes 35,875 43,636 50,719 53,321 183,551 42,592 46,458
    Income tax expense   13,195     15,724     17,515     19,752     66,186     14,616     17,135  
    Net income 22,680 27,912 33,204 33,569 117,365 27,976 29,323
    Net income/(loss) attributable
    to noncontrolling interests   135     19     106     252     512     22     373  
    Net income attributable to
    GAMCO Investors, Inc. $ 22,545   $ 27,893   $ 33,098   $ 33,317   $ 116,853   $ 27,954   $ 28,950  
     
    Net income per share
    attributable to GAMCO
    Investors, Inc.:
    Basic $ 0.88   $ 1.09   $ 1.29   $ 1.30   $ 4.56   $ 1.10   $ 1.14  
     
    Diluted $ 0.88   $ 1.09   $ 1.29   $ 1.29   $ 4.54   $ 1.09   $ 1.13  
     
    Weighted average shares outstanding:
    Basic   25,742     25,679     25,625     25,567     26,283     25,481     25,381  
     
    Diluted   25,758     25,689     25,700     25,733     26,436     25,684     25,586  
    Reconciliation of non-GAAP
    financial measures to GAAP:
    Operating income before
    management fee $ 34,707 $ 36,630 $ 38,357 $ 51,547 $ 161,241 $ 41,227 $ 42,681
    Deduct: management fee expense   3,980     4,846     5,629     4,374     18,829     4,728     5,144  
    Operating income $ 30,727   $ 31,784   $ 32,728   $ 47,173   $ 142,412   $ 36,499   $ 37,537  
     
    Operating margin before
    management fee   40.3 %   39.7 %   39.8 %   42.0 %   40.6 %   39.5 %   39.4 %
    Operating margin after
    management fee   35.7 %   34.4 %   34.0 %   38.4 %   35.8 %   34.9 %   34.7 %
     
     
    Table VIII
    GAMCO INVESTORS, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (Dollars in thousands, except per share data)
                         
    June 30,December 31,June 30,
    201320132014
     
    ASSETS
     
    Cash and cash equivalents $ 222,776 $ 210,451 $ 307,490
    Investments (a) 367,315 371,262 374,283
    Receivable from brokers 39,669 49,461 58,945
    Other receivables 35,722 60,390 43,875
    Income tax receivable 413 445 1,077
    Other assets   17,606   17,476   19,132
     
    Total assets $ 683,501 $ 709,485 $ 804,802
     
    LIABILITIES AND EQUITY
     
    Payable to brokers $ 14,986 $ 10,765 $ 19,859
    Income taxes payable and deferred tax liabilities 27,864 39,846 31,029
    Compensation payable 59,643 34,663 68,908
    Securities sold short, not yet purchased 7,598 6,178 14,329
    Accrued expenses and other liabilities   38,170   39,189   38,823
    Sub-total 148,261 130,641 172,948
     
    5.875% Senior notes (due June 1, 2021) 100,000 100,000 100,000
    0% Subordinated Debentures (due December 31, 2015) (b)   17,028   11,911   11,813
    Total debt   117,028   111,911   111,813
    Total liabilities 265,289 242,552 284,761
     
    Redeemable noncontrolling interests 7,021 6,751 22,806
     
    GAMCO Investors, Inc.'s stockholders' equity 408,413 457,331 494,418
    Noncontrolling interests   2,778   2,851   2,817
    Total equity   411,191   460,182   497,235
     
    Total liabilities and equity $ 683,501 $ 709,485 $ 804,802
     
    (a)   Includes investments in sponsored registered investment companies of $52.3 million, $44.0 million and $40.8 million, respectively.
    (b) The 0% Subordinated Debentures due December 31, 2015 have a face value of $20.5 million, $13.8 million and $13.2 million, respectively.
     





    GAMCO Investors, Inc.

    Robert S. Zuccaro, 914-921-5088

    Executive Vice President and Chief Financial Officer

    or

    For further information please visit:

    www.gabelli.com

    Source: GAMCO Investors, Inc.


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