[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
☐
|
● |
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, 2016, we had $17.3 billion of Institutional and Private Wealth Management AUM.
|
● |
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 $22.4 billion of AUM on December 31, 2016. Additionally, we provide administrative services to seven open-end funds, with AUM of $1.3 billion on December 31, 2016, 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 All Cap Value strategy had $50 million of AUM on December 31, 2016. The GAMCO Merger Arbitrage strategy is managed by Associated Capital Group, Inc. (“AC”).
|
● |
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 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, St. Louis, and Tokyo. We will continue to evaluate adding additional offices throughout the world.
|
● |
Incentive Fees.
SSince 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, 2016, approximately $2.5 billion of our AUM are managed on a performance fee basis including $1.4 billion of Institutional and Private Wealth Management assets, $729 million of preferred issues of closed-end funds and $348 million in The GDL Fund.
|
● |
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. During 2016, we launched our first exchange traded managed fund.
|
● |
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 39-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:
|
-2015
|
“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 10.0% compound annual growth rate through December 31, 2016 to approximately $66.9 trillion
(a)
. The U.S. equity market comprises about $25.3 trillion
(a)
or roughly 38% 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 11.5% for the
S&P 500 through December 31, 2016. For 2016, the GAMCO composite rose 16.7% gross and 16.3% net of fees versus a gain of 12.0% 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,
Global Convertible Investing: The Gabelli Way
, a comprehensive guide to effective investing in convertible securities.
|
● |
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
|
|||||||||||||||||||||||
2012 (b)
|
2013 (b)
|
2014 (b)
|
2015
|
2016
|
2016/2015
|
|||||||||||||||||||
Equity:
|
||||||||||||||||||||||||
Open-end Funds
|
$
|
12,502
|
$
|
17,078
|
$
|
17,684
|
$
|
13,811
|
$
|
13,462
|
(2.5
|
%)
|
||||||||||||
Closed-end Funds
|
6,288
|
6,945
|
6,949
|
6,492
|
7,150
|
10.1
|
||||||||||||||||||
Institutional & Private Wealth Management
|
||||||||||||||||||||||||
Direct
|
12,030
|
16,486
|
16,597
|
13,366
|
13,441
|
0.6
|
||||||||||||||||||
Sub-advisory
|
2,924
|
3,797
|
3,704
|
3,401
|
3,783
|
11.2
|
||||||||||||||||||
SICAV
|
-
|
-
|
-
|
37
|
50
|
n/
|
m
|
|||||||||||||||||
Total Equity
|
33,744
|
44,306
|
44,934
|
37,107
|
37,886
|
2.1
|
||||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||
Money Market Mutual Fund (a)
|
1,681
|
1,735
|
1,455
|
1,514
|
1,767
|
16.7
|
||||||||||||||||||
Institutional & Private Wealth Management
|
60
|
62
|
58
|
38
|
31
|
(18.4
|
)
|
|||||||||||||||||
Total Fixed Income
|
1,741
|
1,797
|
1,513
|
1,552
|
1,798
|
15.9
|
||||||||||||||||||
Total AUM
|
$
|
35,485
|
$
|
46,103
|
$
|
46,447
|
$
|
38,659
|
$
|
39,684
|
2.7
|
|||||||||||||
|
||||||||||||||||||||||||
Breakdown of Total AUM:
|
||||||||||||||||||||||||
Funds
|
20,471
|
25,758
|
26,088
|
21,817
|
22,379
|
2.6
|
||||||||||||||||||
Institutional & Private Wealth Management
|
||||||||||||||||||||||||
Direct
|
12,090
|
16,548
|
16,655
|
13,404
|
13,472
|
0.5
|
||||||||||||||||||
Sub-advisory
|
2,924
|
3,797
|
3,704
|
3,401
|
3,783
|
11.2
|
||||||||||||||||||
SICAV
|
-
|
-
|
-
|
37
|
50
|
n/
|
m
|
|||||||||||||||||
Total AUM
|
$
|
35,485
|
$
|
46,103
|
$
|
46,447
|
$
|
38,659
|
$
|
39,684
|
2.7
|
%
|
(a) |
The Fund is 100% invested in short-term U.S. Treasury obligations which have remaining maturities of 397 days or less.
|
(b) |
Historical AUM has been restated to remove the AUM managed by AC.
|
U.S. Equities:
|
(92.1% of AUM) |
Global and International Equities:
|
(2.4% of AUM) |
All Cap Value
|
International Growth
|
||
Large Cap Value
|
Global Growth
|
||
Large Cap Growth
|
Global Value
|
||
Mid Cap Value
|
Global Telecommunications
|
||
Small Cap Value
|
Multimedia
|
||
Small Cap Growth
|
Gold
|
||
Natural Resources
|
|||
Income
|
U.S. Fixed Income:
|
(4.5% of AUM) | |
Utilities
|
Corporate
|
||
Non-Market Correlated
|
Government
|
||
Option Income
|
Asset-backed
|
||
Intermediate
|
|||
Convertible Securities:
|
(1.0% of AUM) |
Short-term
|
|
Convertible Securities
|
|||
|
2015
|
2016
|
||||||||||||||||||||||||||||||
|
Dividend Declared
|
Dividend Declared
|
||||||||||||||||||||||||||||||
|
High
|
Low
|
Regular
|
Special
|
High
|
Low
|
Regular
|
Special
|
||||||||||||||||||||||||
First Quarter
|
$
|
89.39
|
$
|
72.59
|
$
|
0.07
|
$
|
-
|
$
|
38.60
|
$
|
25.95
|
$
|
0.02
|
$
|
-
|
||||||||||||||||
Second Quarter
|
88.15
|
67.01
|
0.07
|
-
|
41.67
|
31.34
|
0.02
|
-
|
||||||||||||||||||||||||
Third Quarter
|
70.78
|
53.30
|
0.07
|
-
|
35.62
|
28.30
|
0.02
|
-
|
||||||||||||||||||||||||
Fourth Quarter
|
$
|
65.82
|
$
|
29.13
|
(a)
|
$
|
0.07
|
$
|
-
|
$
|
33.55
|
$
|
27.85
|
$
|
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
|
||||||||||||
10/01/16 - 10/31/16
|
50,237
|
$
|
29.24
|
50,237
|
265,072
|
|||||||||||
11/01/16 - 11/30/16
|
26,285
|
28.65
|
26,285
|
238,787
|
||||||||||||
12/01/16 - 12/31/16
|
5,319
|
31.25
|
5,319
|
233,468
|
||||||||||||
Totals
|
81,841
|
$
|
29.18
|
81,841
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
Dec. 31,
|
||||||||||||
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|||||||
GAMCO Investors, Inc.
|
|
100.00
|
|
|
129.63
|
|
|
214.46
|
|
|
220.67
|
|
|
144.49
|
|
|
144.05
|
SNL Asset Manager
|
|
100.00
|
|
|
128.30
|
|
|
197.16
|
|
|
208.00
|
|
|
177.39
|
|
|
187.66
|
S&P 500 Index
|
|
100.00
|
|
|
116.00
|
|
|
153.57
|
|
|
174.60
|
|
|
177.01
|
|
|
198.18
|
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
|
424,340
|
$
|
65.74
|
||||||
Equity compensation plans not approved
|
|||||||||
by security holders:
|
-
|
n/a
|
|||||||
Total
|
424,340
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
Income Statement Data
(in thousands)
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Investment advisory and incentive fees
|
$
|
308,459
|
$
|
329,965
|
$
|
360,498
|
$
|
326,325
|
$
|
279,384
|
||||||||||
Distribution fees and other income
|
44,541
|
51,011
|
61,438
|
52,034
|
44,912
|
|||||||||||||||
Total revenues
|
353,000
|
380,976
|
421,936
|
378,359
|
324,296
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Compensation costs
|
82,613
|
136,503
|
151,255
|
138,859
|
115,982
|
|||||||||||||||
Stock based compensation
|
3,959
|
9,868
|
5,278
|
1,562
|
10,151
|
|||||||||||||||
Management fee
|
6,518
|
15,503
|
18,663
|
14,344
|
11,815
|
|||||||||||||||
Distribution costs
|
44,189
|
51,990
|
59,746
|
50,195
|
42,279
|
|||||||||||||||
Other operating expenses
|
23,925
|
19,163
|
17,542
|
16,541
|
20,146
|
|||||||||||||||
Total expenses
|
161,204
|
233,027
|
252,484
|
221,501
|
200,373
|
|||||||||||||||
|
||||||||||||||||||||
Operating income
|
191,796
|
147,949
|
169,452
|
156,858
|
123,923
|
|||||||||||||||
Other income (expense), net
|
||||||||||||||||||||
Net gain from investments
|
1,594
|
4,953
|
4,282
|
5,145
|
1,815
|
|||||||||||||||
Extinguishment of debt
|
-
|
(1,067
|
)
|
(84
|
)
|
(998
|
)
|
(6,307
|
)
|
|||||||||||
Interest and dividend income
|
1,511
|
2,222
|
2,154
|
2,661
|
2,662
|
|||||||||||||||
Interest expense
|
(12,674
|
)
|
(8,636
|
)
|
(7,653
|
)
|
(10,033
|
)
|
(15,401
|
)
|
||||||||||
Shareholder-designated contribution
|
-
|
(6,396
|
)
|
(134
|
)
|
(10,626
|
)
|
-
|
||||||||||||
Total other income (expense), net
|
(9,569
|
)
|
(8,924
|
)
|
(1,435
|
)
|
(13,851
|
)
|
(17,231
|
)
|
||||||||||
Income before income taxes
|
182,227
|
139,025
|
168,017
|
143,007
|
106,692
|
|||||||||||||||
Income tax provision
|
65,106
|
51,726
|
61,734
|
52,974
|
38,670
|
|||||||||||||||
Income from continuing operations
|
117,121
|
87,299
|
106,283
|
90,033
|
68,022
|
|||||||||||||||
Income/(loss) from discontinued operations, net of taxes
|
-
|
(3,887
|
)
|
3,107
|
26,820
|
7,517
|
||||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
117,121
|
$
|
83,412
|
$
|
109,390
|
$
|
116,853
|
$
|
75,539
|
||||||||||
|
||||||||||||||||||||
Net income per share attributable to GAMCO Investors, Inc.'s | ||||||||||||||||||||
shareholders:
|
||||||||||||||||||||
Basic - Continuing operations
|
$
|
4.01
|
$
|
3.43
|
$
|
4.20
|
$
|
3.51
|
$
|
2.59
|
||||||||||
Basic - Discontinued operations
|
-
|
(0.15
|
)
|
0.12
|
1.05
|
0.28
|
||||||||||||||
Basic - Total
|
$
|
4.01
|
$
|
3.28
|
$
|
4.32
|
$
|
4.56
|
$
|
2.87
|
||||||||||
Diluted - Continuing operations
|
$
|
3.92
|
$
|
3.40
|
$
|
4.16
|
$
|
3.50
|
$
|
2.58
|
||||||||||
Diluted - Discontinued operations
|
-
|
(0.15
|
)
|
0.12
|
1.04
|
0.28
|
||||||||||||||
Diluted - Total
|
$
|
3.92
|
$
|
3.24
|
$
|
4.28
|
$
|
4.54
|
$
|
2.86
|
||||||||||
|
||||||||||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||||||
Basic
|
29,182
|
25,425
|
25,335
|
25,653
|
26,283
|
|||||||||||||||
Diluted
|
30,170
|
25,711
|
25,558
|
25,712
|
26,436
|
|||||||||||||||
|
||||||||||||||||||||
Actual shares outstanding at December 31st (a)
|
29,463
|
29,821
|
25,855
|
26,086
|
25,746
|
|||||||||||||||
|
||||||||||||||||||||
Dividends declared per share:
|
$
|
0.08
|
$
|
0.28
|
$
|
0.50
|
$
|
0.72
|
$
|
2.88
|
(a)
|
Includes unvested RSAs of 424,340, 553,100, 710,750, 566,950 and 0 at December 31, 2016, 2015, 2014, 2013, and 2012, respectively.
|
|
December 31,
|
|||||||||||||||||||
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
Balance Sheet Data
(in thousands)
|
||||||||||||||||||||
Total assets (a)
|
$
|
149,229
|
$
|
103,899
|
$
|
865,803
|
$
|
708,761
|
$
|
689,887
|
||||||||||
Long-term obligations (a)
|
239,021
|
279,267
|
116,789
|
116,510
|
220,469
|
|||||||||||||||
Other liabilities and noncontrolling interest
|
76,855
|
100,959
|
221,219
|
132,069
|
98,484
|
|||||||||||||||
Total liabilities and noncontrolling interest
|
315,876
|
380,226
|
338,008
|
248,579
|
318,953
|
|||||||||||||||
Total equity (deficit)
|
$
|
(166,647
|
)
|
$
|
(276,327
|
)
|
$
|
527,795
|
$
|
460,182
|
$
|
370,934
|
(a)
|
Total assets and long-term obligations have been decreased by $128, $627, $724, and $846 at December 31, 2015, 2014, 2013, and 2012, 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,
|
|||||||||||||||||||
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
Assets Under Management
|
||||||||||||||||||||
(at year end, in millions):
|
||||||||||||||||||||
Open-end Funds
|
$
|
15,229
|
$
|
15,325
|
$
|
19,139
|
$
|
18,813
|
$
|
14,183
|
||||||||||
Closed-end Funds
|
7,150
|
6,492
|
6,949
|
6,945
|
6,288
|
|||||||||||||||
Institutional & PWM Separate Accounts
|
||||||||||||||||||||
Direct
|
13,472
|
13,404
|
16,655
|
16,548
|
12,090
|
|||||||||||||||
Sub-advisory
|
3,783
|
3,401
|
3,704
|
3,797
|
2,924
|
|||||||||||||||
SICAV
|
50
|
37
|
-
|
-
|
-
|
|||||||||||||||
Total
|
$
|
39,684
|
$
|
38,659
|
$
|
46,447
|
$
|
46,103
|
$
|
35,485
|
·
|
On December 1, 2016, the Company launched Gabelli Media Mogul (NYSE: MOGLC), its first in a series of actively managed, non-transparent exchange traded managed funds (“ETMFs”). Gabelli Media Mogul will invest primarily in the media industry; specifically in companies that were spun-off from Dr. John Malone’s Liberty Media Corporation (“Liberty Media”) as constituted in 2001, including companies formed through subsequent mergers of those spin-offs and companies in which Liberty Media and its successors have invested.
|
·
|
On October 4, 2016, the Company announced that Katrina O’Leary joined GAMCO’s institutional team as Vice President, head of Consultant Relations. Ms. O’Leary will launch a dedicated effort to develop the firm’s relationships with the global consulting community. The role underscores GAMCO’s commitment to delivering superior risk adjusted returns and providing best in class client service in a rapidly changing investment environment.
|
·
|
On August 15, 2016, the Company issued a $110 million five year convertible note to Cascade Investment, L.L.C. in a private transaction. The note has a coupon of 4.5% and is convertible into GBL Class A common stock at $55 per share.
|
·
|
On September 2, 2016, GAMCO completed the initial public offering of The Gabelli Go Anywhere Trust, the Company’s 15
th
closed-end fund. This newly organized closed-end fund initially traded on the NYSE MKT as a $100 combination consisting of one preferred share at $40 and three common shares at $19 each under the symbol GGO.C. This innovative offering demonstrates the flexibility of the closed-end fund structure. Separate trading on the NYSE MKT for the common shares (“GGO”) and the Series A Preferred shares (“GGO.A”) commenced on November 2, 2016.
|
·
|
2016 was the first full year of advising the Bancroft Fund, and Ellsworth Growth and Income Fund. The Dinsmore team now manages over $350 million in AUM across three closed-end funds. 2016 was also the first full year of advising The Gabelli Value Plus+ Trust, our first London Stock Exchange listed closed-end fund. The Fund had $171 million of AUM at December 31, 2016.
|
·
|
Net debt improved from $262.4 million at December 31, 2015 to $156.9 million at December 31, 2016.
|
|
Year Ended December 31,
|
CAGR (a)
|
||||||||||||||||||||||
|
2016
|
2015
|
2014
|
2013
|
2012
|
2016/2012
|
||||||||||||||||||
Equities:
|
||||||||||||||||||||||||
Open-End
|
$
|
13,462
|
$
|
13,811
|
$
|
17,684
|
$
|
17,078
|
$
|
12,502
|
1.9
|
%
|
||||||||||||
Closed-End
|
7,150
|
6,492
|
6,949
|
6,945
|
6,288
|
3.3
|
||||||||||||||||||
Institutional & PWM direct
|
13,441
|
13,366
|
16,597
|
16,486
|
12,030
|
2.8
|
||||||||||||||||||
Institutional & PWM sub-advisory
|
3,783
|
3,401
|
3,704
|
3,797
|
2,924
|
6.7
|
||||||||||||||||||
SICAV
|
50
|
37
|
-
|
-
|
-
|
n/a
|
||||||||||||||||||
Total Equities
|
37,886
|
37,107
|
44,934
|
44,306
|
33,744
|
2.9
|
||||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||
Money-Market Fund
|
1,767
|
1,514
|
1,455
|
1,735
|
1,681
|
1.3
|
||||||||||||||||||
Institutional & PWM
|
31
|
38
|
58
|
62
|
60
|
(15.2
|
)
|
|||||||||||||||||
Total Fixed Income
|
1,798
|
1,552
|
1,513
|
1,797
|
1,741
|
0.8
|
||||||||||||||||||
Total AUM
|
$
|
39,684
|
$
|
38,659
|
$
|
46,447
|
$
|
46,103
|
$
|
35,485
|
2.8
|
%
|
|
Year Ended December 31,
|
|||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Equities:
|
||||||||||||||||||||
Open-End
|
$
|
(1,832
|
)
|
$
|
(3,053
|
)
|
$
|
(355
|
)
|
$
|
1,305
|
$
|
(1,130
|
)
|
||||||
Closed-End (b)
|
(55
|
)
|
(87
|
)
|
(137
|
)
|
(334
|
)
|
(34
|
)
|
||||||||||
Institutional & PWM direct
|
(1,571
|
)
|
(2,273
|
)
|
(846
|
)
|
169
|
(348
|
)
|
|||||||||||
Institutional & PWM sub-advisory
|
(226
|
)
|
(237
|
)
|
(250
|
)
|
(134
|
)
|
(60
|
)
|
||||||||||
SICAV
|
8
|
39
|
-
|
-
|
-
|
|||||||||||||||
Total Equities
|
(3,676
|
)
|
(5,611
|
)
|
(1,588
|
)
|
1,006
|
(1,572
|
)
|
|||||||||||
Fixed Income:
|
||||||||||||||||||||
Money-Market Fund
|
249
|
59
|
(280
|
)
|
54
|
(143
|
)
|
|||||||||||||
Institutional & PWM
|
(7
|
)
|
(20
|
)
|
(4
|
)
|
2
|
34
|
||||||||||||
Total Fixed Income
|
242
|
39
|
(284
|
)
|
56
|
(109
|
)
|
|||||||||||||
Total Net Cash In (Out) Flows
|
$
|
(3,434
|
)
|
$
|
(5,572
|
)
|
$
|
(1,872
|
)
|
$
|
1,062
|
$
|
(1,681
|
)
|
(a) |
Compound annual growth rate.
|
(b) |
Our net cash inflows or outflows for Closed-End equity funds includes distributions, net of reinvestments, to fund holders of $500 million, $461 million, $479 million, $484 million and $454 million in 2016, 2015, 2014, 2013 and 2012, respectively.
|
Closed-End Fund flows
|
||||||||||||
|
Capital raises
|
Distributions
|
Net
|
|||||||||
2016
|
$
|
445
|
$
|
(500
|
)
|
$
|
(55
|
)
|
||||
2015
|
374
|
(461
|
)
|
(87
|
)
|
|||||||
2014
|
342
|
(479
|
)
|
(137
|
)
|
|||||||
2013
|
150
|
(484
|
)
|
(334
|
)
|
|||||||
2012
|
420
|
(454
|
)
|
(34
|
)
|
|
Year Ended December 31,
|
|||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
|
||||||||||||||||||||
Equities
|
||||||||||||||||||||
Open End
|
$
|
1,483
|
$
|
(820
|
)
|
$
|
961
|
$
|
3,271
|
$
|
1,359
|
|||||||||
Close End
|
713
|
(370
|
)
|
141
|
991
|
523
|
||||||||||||||
Institutional & PWM direct
|
1,646
|
(958
|
)
|
957
|
4,287
|
1,525
|
||||||||||||||
Institutional & PWM sub-advisory
|
608
|
(66
|
)
|
157
|
1,007
|
384
|
||||||||||||||
SICAV
|
5
|
(2
|
)
|
-
|
-
|
-
|
||||||||||||||
Total Equities
|
4,455
|
(2,216
|
)
|
2,216
|
9,556
|
3,791
|
||||||||||||||
Fixed Income
|
||||||||||||||||||||
Money-Market Fund
|
4
|
-
|
-
|
-
|
-
|
|||||||||||||||
Institutional & PWM
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total Fixed Income
|
4
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total Net Appreciation/(Depreciation)
|
$
|
4,459
|
$
|
(2,216
|
)
|
$
|
2,216
|
$
|
9,556
|
$
|
3,791
|
|
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
|
%
|
|
Year Ended December 31,
|
Increase (decrease)
|
||||||||||||||
2015 | 2014 | $ | % | |||||||||||||
Investment advisory
|
$
|
325.6
|
$
|
351.6
|
$
|
(26.0
|
)
|
(7.4
|
)%
|
|||||||
Incentive fees
|
4.4
|
8.9
|
(4.5
|
)
|
(50.6
|
)
|
||||||||||
Distribution fees and other income
|
51.0
|
61.4
|
(10.4
|
)
|
(16.9
|
)
|
||||||||||
Total revenues
|
$
|
381.0
|
$
|
421.9
|
$
|
(40.9
|
)
|
(9.7
|
)%
|
|
2015
|
2014
|
||||||
Revenues
|
$
|
380,976
|
$
|
421,936
|
||||
Operating income
|
147,949
|
169,452
|
||||||
Add back: management fee expense
|
15,503
|
18,663
|
||||||
Operating income before management fee
|
$
|
163,452
|
$
|
188,115
|
||||
|
||||||||
Operating margin
|
38.8
|
%
|
40.2
|
%
|
||||
|
||||||||
Operating margin before management fee
|
42.9
|
%
|
44.6
|
%
|
Full Year Ended December 31, 2016
|
||||||||||||
|
Impact of
|
|||||||||||
Reported
|
Deferred
|
|||||||||||
GAAP
|
Compensation
|
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, 2016
|
||||||||||||
|
Impact of
|
|||||||||||
Reported
|
Deferred
|
|||||||||||
GAAP
|
Compensation
|
Non-GAAP
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
$
|
39,812
|
$
|
-
|
$
|
39,812
|
||||||
Investments in securities
|
37,285
|
-
|
37,285
|
|||||||||
Receivable from brokers
|
453
|
-
|
453
|
|||||||||
Investment advisory fees receivable
|
43,736
|
-
|
43,736
|
|||||||||
Receivable from affiliates
|
5,960
|
-
|
5,960
|
|||||||||
Income tax receivable
|
9,349
|
20,069
|
29,418
|
|||||||||
Other assets
|
12,634
|
-
|
12,634
|
|||||||||
Total assets
|
$
|
149,229
|
$
|
20,069
|
$
|
169,298
|
||||||
|
||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
Payable to brokers
|
66
|
-
|
66
|
|||||||||
Income taxes payable and deferred tax liabilities
|
3,815
|
-
|
3,815
|
|||||||||
Capital lease obligation
|
5,066
|
-
|
5,066
|
|||||||||
Compensation payable
|
42,384
|
53,516
|
95,900
|
|||||||||
Payable to affiliates
|
1,412
|
-
|
1,412
|
|||||||||
Accrued expenses and other liabilities
|
29,178
|
-
|
29,178
|
|||||||||
Sub-total
|
81,921
|
53,516
|
135,437
|
|||||||||
|
||||||||||||
4.5% Convertible note (due August 15, 2021)
|
109,835
|
-
|
109,835
|
|||||||||
AC 4% PIK Note (due November 30, 2020)
|
100,000
|
-
|
100,000
|
|||||||||
5.875% Senior notes (due June 1, 2021)
|
24,120
|
-
|
24,120
|
|||||||||
Total liabilities
|
315,876
|
53,516
|
369,392
|
|||||||||
|
||||||||||||
Equity
|
||||||||||||
GAMCO Investors, Inc. stockholders' equity
|
||||||||||||
Class A Common Stock
|
14
|
-
|
14
|
|||||||||
Class B Common Stock
|
19
|
-
|
19
|
|||||||||
Additional paid-in capital
|
3,903
|
-
|
3,903
|
|||||||||
Retained earnings
|
80,515
|
(33,447
|
)
|
47,068
|
||||||||
Accumulated other comprehensive income
|
11,271
|
-
|
11,271
|
|||||||||
Treasury stock, at cost
|
(262,369
|
)
|
-
|
(262,369
|
)
|
|||||||
Total GAMCO Investors, Inc. stockholders' equity (deficit)
|
(166,647
|
)
|
(33,447
|
)
|
(200,094
|
)
|
||||||
Total liabilities and equity (deficit)
|
$
|
149,229
|
$
|
20,069
|
$
|
169,298
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
||||
|
|
|
|
|
|
|
|
||||
RSU expense
|
|
(53,516)
|
|
|
17,839
|
|
|
17,839
|
|
|
17,839
|
|
Year Ended December 31,
|
|||||||||||
|
2016
|
2015
|
2014
|
|||||||||
(in thousands)
|
||||||||||||
Cash flows provided by (used in) from continuing operations:
|
||||||||||||
Operating activities
|
$
|
115,737
|
$
|
117,130
|
$
|
140,458
|
||||||
Investing activities
|
(1,435
|
)
|
(6,198
|
)
|
(1,147
|
)
|
||||||
Financing activities
|
(88,247
|
)
|
(109,923
|
)
|
(131,139
|
)
|
||||||
Increase (decrease) in cash and cash equivalents from continuing operations
|
26,055
|
1,009
|
8,172
|
|||||||||
Cash flows from discontinued operations
|
||||||||||||
Operating activities
|
-
|
54,335
|
(76,618
|
)
|
||||||||
Investing activities
|
-
|
(41,463
|
)
|
3,839
|
||||||||
Financing activities
|
-
|
(12,871
|
)
|
66,367
|
||||||||
Increase (decrease) in cash and cash equivalents from discontinued operations
|
-
|
1
|
(6,412
|
)
|
||||||||
Effect of exchange rates on cash and cash equivalents
|
38
|
15
|
19
|
|||||||||
Net increase (decrease) in cash and cash equivalents
|
26,093
|
1,025
|
1,779
|
|||||||||
Cash and cash equivalents at beginning of year
|
13,719
|
12,694
|
10,915
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
39,812
|
$
|
13,719
|
$
|
12,694
|
Fair Value
|
Fair Value
|
|||||||||||
assuming
|
assuming
|
|||||||||||
10% decrease in
|
10% increase in
|
|||||||||||
(unaudited)
|
Fair Value
|
equity prices
|
equity prices
|
|||||||||
At December 31, 2016
|
||||||||||||
Equity price sensitive investments, at fair value
|
$
|
37,285
|
$
|
33,557
|
$
|
41,014
|
||||||
At December 31, 2015
|
||||||||||||
Equity price sensitive investments, at fair value
|
$
|
32,848
|
$
|
29,563
|
$
|
36,133
|
|
Total
|
2017
|
2018
|
2019
|
2020
|
2021
|
Thereafter
|
|||||||||||||||||||||
Contractual Obligations:
|
||||||||||||||||||||||||||||
5.875% Senior notes
|
$
|
24,225
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
24,225
|
$
|
-
|
||||||||||||||
Interest on 5.875% Senior notes
|
6,285
|
1,423
|
1,423
|
1,423
|
1,423
|
593
|
-
|
|||||||||||||||||||||
AC 4% PIK Note
|
100,000
|
10,000
|
20,000
|
20,000
|
50,000
|
-
|
-
|
|||||||||||||||||||||
Interest on AC 4% PIK Note
|
12,066
|
3,967
|
3,533
|
2,733
|
1,833
|
-
|
-
|
|||||||||||||||||||||
4.5% Convertible note
|
110,000
|
-
|
-
|
-
|
-
|
110,000
|
-
|
|||||||||||||||||||||
Interest on 4.5% Convertible note
|
22,894
|
4,950
|
4,950
|
4,950
|
4,950
|
3,094
|
-
|
|||||||||||||||||||||
Capital lease obligations
|
13,091
|
1,211
|
1,080
|
1,080
|
1,080
|
1,080
|
7,560
|
|||||||||||||||||||||
Non-cancelable operating | ||||||||||||||||||||||||||||
lease obligations
|
1,642
|
705
|
489
|
357
|
43
|
44
|
4
|
|||||||||||||||||||||
Total
|
$
|
290,203
|
$
|
22,256
|
$
|
31,475
|
$
|
30,543
|
$
|
59,329
|
$
|
139,036
|
$
|
7,564
|
Page
|
|
Report of Independent Registered Public Accounting Firm
|
44
|
Report of Independent Registered Public Accounting Firm on Effectiveness of Internal Control over Financial Reporting
|
45
|
Consolidated Financial Statements:
|
|
Consolidated Statements of Income for the years ended December 31, 2016, 2015 and 2014
|
46
|
Consolidated Statements of Comprehensive Income for the years ended December 31, 2016, 2015 and 2014
|
47
|
Consolidated Statements of Financial Condition at December 31, 2016 and 2015
|
48
|
Consolidated Statements of Equity for the years ended December 31, 2016, 2015 and 2014
|
49
|
Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015 and 2014
|
52
|
Notes to Consolidated Financial Statements
|
54
|
Year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Revenues
|
||||||||||||
Investment advisory and incentive fees
|
$
|
308,459
|
$
|
329,965
|
$
|
360,498
|
||||||
Distribution fees and other income
|
44,541
|
51,011
|
61,438
|
|||||||||
Total revenues
|
353,000
|
380,976
|
421,936
|
|||||||||
Expenses
|
||||||||||||
Compensation
|
82,613
|
136,503
|
151,255
|
|||||||||
Stock based compensation
|
3,959
|
9,868
|
5,278
|
|||||||||
Management fee
|
6,518
|
15,503
|
18,663
|
|||||||||
Distribution costs
|
44,189
|
51,990
|
59,746
|
|||||||||
Other operating expenses
|
23,925
|
19,163
|
17,542
|
|||||||||
Total expenses
|
161,204
|
233,027
|
252,484
|
|||||||||
Operating income
|
191,796
|
147,949
|
169,452
|
|||||||||
Other income (expense)
|
||||||||||||
Net gain from investments
|
1,594
|
4,953
|
4,282
|
|||||||||
Extinguishment of debt
|
-
|
(1,067
|
)
|
(84
|
)
|
|||||||
Interest and dividend income
|
1,511
|
2,222
|
2,154
|
|||||||||
Interest expense
|
(12,674
|
)
|
(8,636
|
)
|
(7,653
|
)
|
||||||
Shareholder-designated contributions
|
-
|
(6,396
|
)
|
(134
|
)
|
|||||||
Total other income (expense), net
|
(9,569
|
)
|
(8,924
|
)
|
(1,435
|
)
|
||||||
Income before income taxes
|
182,227
|
139,025
|
168,017
|
|||||||||
Income tax provision
|
65,106
|
51,726
|
61,734
|
|||||||||
Income from continuing operations
|
117,121
|
87,299
|
106,283
|
|||||||||
Income/(loss) from discontinued operations, net of taxes
|
-
|
(3,887
|
)
|
3,107
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
117,121
|
$
|
83,412
|
$
|
109,390
|
||||||
Net income per share attributable to GAMCO Investors, Inc.'s shareholders:
|
||||||||||||
Basic - Continuing operations
|
$
|
4.01
|
$
|
3.43
|
$
|
4.20
|
||||||
Basic - Discontinued operations
|
-
|
(0.15
|
)
|
0.12
|
||||||||
Basic - Total
|
$
|
4.01
|
$
|
3.28
|
$
|
4.32
|
||||||
Diluted - Continuing operations
|
$
|
3.92
|
$
|
3.40
|
$
|
4.16
|
||||||
Diluted - Discontinued operations
|
-
|
(0.15
|
)
|
0.12
|
||||||||
Diluted - Total
|
$
|
3.92
|
$
|
3.24
|
$
|
4.28
|
||||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
29,182
|
25,425
|
25,335
|
|||||||||
Diluted
|
30,170
|
25,711
|
25,558
|
|||||||||
Actual shares outstanding
|
29,463
|
29,821
|
25,855
|
Year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
117,121
|
$
|
83,412
|
$
|
109,390
|
||||||
Other comprehensive income/(loss), net of tax:
|
||||||||||||
Foreign currency translation
|
(164
|
)
|
(46
|
)
|
(57
|
)
|
||||||
Net unrealized gains/(losses) on securities available for sale (a)
|
2,320
|
(8,300
|
)
|
(5,168
|
)
|
|||||||
Other comprehensive income/(loss)
|
2,156
|
(8,346
|
)
|
(5,225
|
)
|
|||||||
Comprehensive income attributable to GAMCO Investors, Inc.
|
$
|
119,277
|
$
|
75,066
|
$
|
104,165
|
December 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
39,812
|
$
|
13,719
|
||||
Investments in securities
|
37,285
|
32,975
|
||||||
Receivable from brokers
|
453
|
1,091
|
||||||
Investment advisory fees receivable
|
43,736
|
31,048
|
||||||
Receivable from affiliates
|
5,960
|
5,041
|
||||||
Capital lease
|
2,514
|
2,723
|
||||||
Goodwill and identifiable intangible assets
|
3,765
|
3,765
|
||||||
Income tax receivable
|
9,349
|
6,787
|
||||||
Other assets
|
6,355
|
6,750
|
||||||
Total assets
|
$
|
149,229
|
$
|
103,899
|
||||
LIABILITIES AND EQUITY
|
||||||||
Payable to brokers
|
$
|
66
|
$
|
12
|
||||
Income taxes payable and deferred tax liabilities
|
3,815
|
4,823
|
||||||
Capital lease obligation
|
5,066
|
5,170
|
||||||
Compensation payable
|
42,384
|
24,426
|
||||||
Securities sold, not yet purchased
|
-
|
129
|
||||||
Payable to affiliates
|
1,412
|
7,687
|
||||||
Accrued expenses and other liabilities
|
29,178
|
28,882
|
||||||
Sub-total
|
81,921
|
71,129
|
||||||
AC 4% PIK Note (due November 30, 2020) (Note F)
|
100,000
|
250,000
|
||||||
4.5% Convertible note (due August 15, 2021) (Note F)
|
109,835
|
-
|
||||||
Loan from GGCP (due December 28, 2016) (Note F)
|
-
|
35,000
|
||||||
5.875% Senior notes (due June 1, 2021) (Note F)
|
24,120
|
24,097
|
||||||
Total liabilities
|
315,876
|
380,226
|
||||||
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; 15,477,082 and 15,422,901
|
||||||||
shares issued, respectively; 10,369,601 and 10,664,107 shares outstanding, respectively
|
14
|
14
|
||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 24,000,000 shares issued
|
||||||||
and 19,093,311 and 19,156,792 shares outstanding, respectively
|
19
|
19
|
||||||
Additional paid-in capital
|
3,903
|
345
|
||||||
Retained earnings (deficit)
|
80,515
|
(34,224
|
)
|
|||||
Accumulated comprehensive income
|
11,271
|
9,115
|
||||||
Treasury stock, at cost (5,107,481 and 4,758,794 shares, respectively)
|
(262,369
|
)
|
(251,596
|
)
|
||||
Total GAMCO Investors, Inc. stockholders' equity (deficit)
|
(166,647
|
)
|
(276,327
|
)
|
||||
Noncontrolling interests from discontinued operations
|
-
|
0
|
||||||
Total equity (deficit)
|
(166,647
|
)
|
(276,327
|
)
|
||||
Total liabilities and equity
|
$
|
149,229
|
$
|
103,899
|
GAMCO Investors, Inc. shareholders
|
||||||||||||||||||||||||||||||||
Additional
|
Accumulated
|
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
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(6,353
|
)
|
|||||||||||||||||||||||
Contributions from redeemable
|
||||||||||||||||||||||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
72,093
|
||||||||||||||||||||||||
Net income (loss)
|
(117
|
)
|
-
|
-
|
109,390
|
-
|
-
|
109,273
|
(4,157
|
)
|
||||||||||||||||||||||
Net unrealized losses on
|
||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($356)
|
-
|
-
|
-
|
-
|
(604
|
)
|
-
|
(604
|
)
|
-
|
||||||||||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||||||||||
accumulated other
|
||||||||||||||||||||||||||||||||
comprehensive income,
|
||||||||||||||||||||||||||||||||
net of income tax benefit ($2,680)
|
-
|
-
|
-
|
-
|
(4,564
|
)
|
-
|
(4,564
|
)
|
-
|
||||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
-
|
-
|
(57
|
)
|
-
|
(57
|
)
|
-
|
||||||||||||||||||||||
Dividends declared ($0.50 per
|
||||||||||||||||||||||||||||||||
share)
|
-
|
-
|
-
|
(12,881
|
)
|
-
|
-
|
(12,881
|
)
|
-
|
||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||
expense
|
-
|
-
|
7,199
|
-
|
-
|
-
|
7,199
|
-
|
||||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||
including tax benefit ($349)
|
-
|
-
|
1,986
|
-
|
-
|
-
|
1,986
|
-
|
||||||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(32,739
|
)
|
(32,739
|
)
|
-
|
||||||||||||||||||||||
Balance at December 31, 2014
|
$
|
2,734
|
$
|
33
|
$
|
291,681
|
$
|
602,950
|
$
|
25,014
|
$
|
(394,617
|
)
|
$
|
527,795
|
$
|
68,334
|
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
|
|||||||||||||||
Redemptions of
|
||||||||||||||||||||||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Contributions from redeemable
|
||||||||||||||||||||||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Net income (loss)
|
-
|
-
|
-
|
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 GSI
|
-
|
-
|
(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 (loss)
|
-
|
-
|
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
|
)
|
Year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Operating activities
|
||||||||||||
Net income
|
$
|
117,121
|
$
|
83,412
|
$
|
109,390
|
||||||
Loss/(income) from discontinued operations, net of taxes
|
-
|
3,887
|
(3,107
|
)
|
||||||||
Income from continuing operations
|
117,121
|
87,299
|
106,283
|
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||
from continuing operations:
|
||||||||||||
Depreciation and amortization
|
625
|
618
|
669
|
|||||||||
Stock based compensation expense
|
3,959
|
9,868
|
5,278
|
|||||||||
Deferred income taxes
|
(5,537
|
)
|
1,166
|
3,493
|
||||||||
Tax benefit from exercise of stock options
|
-
|
102
|
349
|
|||||||||
Foreign currency translation gain/(loss)
|
(164
|
)
|
(46
|
)
|
(57
|
)
|
||||||
Donated securities
|
499
|
1,945
|
1,486
|
|||||||||
Gains on sales of available for sale securities
|
(4
|
)
|
(6
|
)
|
(587
|
)
|
||||||
Accretion of zero coupon debentures
|
-
|
628
|
885
|
|||||||||
Loss on extinguishment of debt
|
-
|
1,067
|
84
|
|||||||||
Acquisition of identifiable intangible asset
|
-
|
(1,661
|
)
|
-
|
||||||||
(Increase) decrease in assets:
|
||||||||||||
Investments in trading securities
|
186
|
(240
|
)
|
-
|
||||||||
Receivable from affiliates
|
(927
|
)
|
21,393
|
-
|
||||||||
Receivable from brokers
|
638
|
592
|
(1,055
|
)
|
||||||||
Investment advisory fees receivable
|
(12,688
|
)
|
6,679
|
8,528
|
||||||||
Income tax receivable and deferred tax assets
|
(2,562
|
)
|
(4,354
|
)
|
(1,988
|
)
|
||||||
Other assets
|
(69
|
)
|
529
|
10,289
|
||||||||
Increase (decrease) in liabilities:
|
||||||||||||
Payable to affiliates
|
(6,275
|
)
|
7,333
|
(410
|
)
|
|||||||
Payable to brokers
|
54
|
1
|
(752
|
)
|
||||||||
Income taxes payable and deferred tax liabilities
|
2,768
|
(10,401
|
)
|
(896
|
)
|
|||||||
Compensation payable
|
17,969
|
(6,369
|
)
|
11,116
|
||||||||
Accrued expenses and other liabilities
|
144
|
987
|
(2,257
|
)
|
||||||||
Total adjustments
|
(1,384
|
)
|
29,831
|
34,175
|
||||||||
Net cash provided by operating activities from continuing operations
|
$
|
115,737
|
$
|
117,130
|
$
|
140,458
|
Year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Investing activities
|
||||||||||||
Purchases of available for sale securities
|
$
|
(1,843
|
)
|
$
|
(6,279
|
)
|
$
|
(5,024
|
)
|
|||
Proceeds from sales of available for sale securities
|
408
|
81
|
3,877
|
|||||||||
Net cash used in investing activities from continuing operations
|
(1,435
|
)
|
(6,198
|
)
|
(1,147
|
)
|
||||||
Financing activities
|
||||||||||||
Repurchase of Zero coupon subordinated debentures due December 31, 2015
|
-
|
(13,101
|
)
|
(716
|
)
|
|||||||
Repurchase of 5.875% Senior note due June 1, 2021
|
-
|
(76,533
|
)
|
-
|
||||||||
Repayment of AC 4% PIK Note
|
(150,000
|
)
|
-
|
-
|
||||||||
Issuance of 4.5% Convertible note
|
109,826
|
-
|
-
|
|||||||||
Repayment of GGCP loan due December 28, 2016
|
(35,000
|
)
|
-
|
-
|
||||||||
Loan from GGCP due December 28, 2016
|
-
|
35,000
|
-
|
|||||||||
Amortization of debt issuance costs
|
33
|
-
|
-
|
|||||||||
Net cash transferred to AC
|
-
|
(21,739
|
)
|
(86,703
|
)
|
|||||||
Proceeds from exercise of stock options
|
-
|
1,167
|
1,637
|
|||||||||
Dividends paid
|
(2,333
|
)
|
(7,468
|
)
|
(12,618
|
)
|
||||||
Purchase of treasury stock
|
(10,773
|
)
|
(27,249
|
)
|
(32,739
|
)
|
||||||
Net cash used in financing activities from continuing operations
|
(88,247
|
)
|
(109,923
|
)
|
(131,139
|
)
|
||||||
Cash flows of discontinued operations
|
||||||||||||
Net cash provided by (used in) operating activities
|
-
|
54,335
|
(76,618
|
)
|
||||||||
Net cash provided by (used in) investing activities
|
-
|
(41,463
|
)
|
3,839
|
||||||||
Net cash provided by (used in) financing activities
|
-
|
(12,871
|
)
|
66,367
|
||||||||
Net cash provided by (used in) discontinued operations
|
-
|
1
|
(6,412
|
)
|
||||||||
Effect of exchange rates on cash and cash equivalents
|
38
|
15
|
19
|
|||||||||
Net increase in cash and cash equivalents
|
26,093
|
1,025
|
1,779
|
|||||||||
Cash and cash equivalents at beginning of period
|
13,719
|
12,694
|
10,915
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
39,812
|
$
|
13,719
|
$
|
12,694
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid for interest
|
$
|
11,274
|
$
|
7,011
|
$
|
6,671
|
||||||
Cash paid for taxes
|
$
|
75,238
|
$
|
59,657
|
$
|
70,103
|
·
|
GBL;
|
·
|
Our wholly-owned subsidiaries: Gabelli Funds, LLC (“Funds Advisor”), GAMCO Asset Management Inc. (“GAMCO”), 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.
|
2016
|
2015
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Trading securities:
|
||||||||||||||||
Common stocks
|
$
|
51
|
$
|
54
|
$
|
385
|
$
|
368
|
||||||||
Total trading securities
|
51
|
54
|
385
|
368
|
||||||||||||
Available for sale securities:
|
||||||||||||||||
Common stocks | 18,739 | 37,131 | 17,898 | 32,607 | ||||||||||||
Closed-end funds | 99 | 100 | - | - | ||||||||||||
Total available for sale securities
|
18,838
|
37,231
|
17,898
|
32,607
|
||||||||||||
Total investments in securities
|
$
|
18,889
|
$
|
37,285
|
$
|
18,283
|
$
|
32,975
|
2016
|
2015
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Trading securities:
|
||||||||||||||||
Common stocks
|
$
|
-
|
$
|
-
|
$
|
123
|
$
|
129
|
||||||||
Total securities sold, not yet purchased
|
$
|
-
|
$
|
-
|
$
|
123
|
$
|
129
|
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
|
December 31, 2015
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Unrealized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Common stocks
|
$
|
17,898
|
$
|
14,709
|
$
|
-
|
$
|
32,607
|
||||||||
Total available for sale securities
|
$
|
17,898
|
$
|
14,709
|
$
|
-
|
$
|
32,607
|
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
|
||||||||
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
|
2016
|
2015
|
2014
|
||||||||||
(In thousands)
|
||||||||||||
Federal:
|
||||||||||||
Current
|
$
|
63,991
|
$
|
47,699
|
$
|
58,194
|
||||||
Deferred
|
(4,424
|
)
|
(1,441
|
)
|
(2,876
|
)
|
||||||
State and local:
|
||||||||||||
Current
|
6,652
|
5,359
|
6,595
|
|||||||||
Deferred
|
(1,113
|
)
|
109
|
(179
|
)
|
|||||||
Total
|
$
|
65,106
|
$
|
51,726
|
$
|
61,734
|
2016
|
2015
|
2014
|
||||||||||
Statutory Federal income tax rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||||
State income tax, net of Federal benefit
|
1.0
|
2.7
|
2.5
|
|||||||||
Other
|
(0.3
|
)
|
(0.5
|
)
|
(0.8
|
)
|
||||||
Effective income tax rate
|
35.7
|
%
|
37.2
|
%
|
36.7
|
%
|
2016
|
2015
|
|||||||
(In thousands)
|
||||||||
Deferred tax assets:
|
||||||||
Stock compensation expense
|
$
|
4,006
|
$
|
4,857
|
||||
Deferred compensation
|
7,629
|
1,268
|
||||||
Capital lease obligation
|
944
|
905
|
||||||
Other
|
311
|
287
|
||||||
Total deferred tax assets
|
12,890
|
7,317
|
||||||
Deferred tax liabilities:
|
||||||||
Investments in securities available for sale
|
(6,805
|
)
|
(5,443
|
)
|
||||
Contingent deferred sales commissions
|
(322
|
)
|
(419
|
)
|
||||
Intangible asset amortization
|
(235
|
)
|
(111
|
)
|
||||
Other
|
(9
|
)
|
-
|
|||||
Total deferred tax liabilities
|
(7,371
|
)
|
(5,973
|
)
|
||||
Net deferred tax assets (liabilities)
|
$
|
5,519
|
$
|
1,344
|
(in millions)
|
||||
Balance at December 31, 2013
|
$
|
12.9
|
||
Additions based on tax positions related to the current year
|
3.1
|
|||
Additions for tax positions of prior years
|
-
|
|||
Reductions for tax positions of prior years
|
-
|
|||
Settlements
|
-
|
|||
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
|
For the Years Ending December 31,
|
||||||||||||
(In thousands, except per share amounts)
|
2016
|
2015
|
2014
|
|||||||||
Basic:
|
||||||||||||
Income from continuing operations
|
$
|
117,121
|
$
|
87,299
|
$
|
106,283
|
||||||
Gain/(loss) from discontinued operations, net of taxes
|
-
|
(3,887
|
)
|
3,107
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s
shareholders
|
$
|
117,121
|
$
|
83,412
|
$
|
109,390
|
||||||
Weighted average shares outstanding
|
29,182
|
25,425
|
25,335
|
|||||||||
Basic net income per share attributable to GAMCO
|
||||||||||||
Investors, Inc.'s shareholders
|
||||||||||||
Continuing operations
|
$
|
4.01
|
$
|
3.43
|
$
|
4.20
|
||||||
Discontinued operations
|
-
|
(0.15
|
)
|
0.12
|
||||||||
Total
|
$
|
4.01
|
$
|
3.28
|
$
|
4.32
|
||||||
Diluted:
|
||||||||||||
Income from continuing operations
|
$
|
117,121
|
$
|
87,299
|
$
|
106,283
|
||||||
Add interest on convertible note, net of management fee and taxes
|
1,133
|
-
|
-
|
|||||||||
Total income from continuing operations
|
118,254
|
87,299
|
106,283
|
|||||||||
Gain/(loss) from discontinued operations, net of taxes
|
-
|
(3,887
|
)
|
3,107
|
||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$
|
118,254
|
$
|
83,412
|
$
|
109,390
|
||||||
Weighted average share outstanding
|
29,182
|
25,425
|
25,335
|
|||||||||
Dilutive stock options and restricted stock awards
|
234
|
286
|
223
|
|||||||||
Assumed conversion of convertible notes
|
754
|
-
|
-
|
|||||||||
Total
|
30,170
|
25,711
|
25,558
|
|||||||||
Diluted net income per share attributable to GAMCO
|
||||||||||||
Investors, Inc.'s shareholders
|
||||||||||||
Continuing operations
|
$
|
3.92
|
$
|
3.40
|
$
|
4.16
|
||||||
Discontinued operations
|
-
|
(0.15
|
)
|
0.12
|
||||||||
Total
|
$
|
3.92
|
$
|
3.24
|
$
|
4.28
|
December 31, 2016
|
December 31, 2015
|
|||||||||||||||
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
|
100,000
|
100,930
|
250,000
|
250,000
|
||||||||||||
Loan from GGCP
|
-
|
-
|
35,000
|
35,000
|
||||||||||||
5.875% Senior notes
|
24,120
|
24,558
|
24,097
|
24,437
|
||||||||||||
Total
|
$
|
233,955
|
$
|
237,013
|
$
|
309,097
|
$
|
309,437
|
Options
|
RSAs
|
|||||||||||||||
Weighted Average
|
||||||||||||||||
Weighted Average
|
Grant Date
|
|||||||||||||||
Shares
|
Exercise Price
|
Shares
|
Fair Value
|
|||||||||||||
Outstanding at December 31, 2014
|
26,000
|
$
|
44.89
|
710,750
|
$
|
67.45
|
||||||||||
Granted
|
-
|
-
|
-
|
-
|
||||||||||||
Forfeited
|
-
|
-
|
(27,000
|
)
|
69.50
|
|||||||||||
Exercised / Vested
|
(26,000
|
)
|
39.55
|
(130,650
|
)
|
81.55
|
||||||||||
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
|
||||||||||
Shares available for future issuance at
|
||||||||||||||||
December 31, 2016
|
51,530
|
2017
|
2018
|
2019
|
2020
|
||||||||||||
$
|
2,541
|
$
|
1,718
|
$
|
1,379
|
$
|
748
|
||||||||
2021
|
2022
|
2023
|
2024
|
||||||||||||
$
|
505
|
$
|
306
|
$
|
130
|
$
|
21
|
(In thousands)
|
||||
2017
|
$
|
1,211
|
||
2018
|
1,080
|
|||
2019
|
1,080
|
|||
2020
|
1,080
|
|||
2021
|
1,080
|
|||
Thereafter
|
7,560
|
|||
Total minimum obligations
|
13,091
|
|||
Interest
|
8,015
|
|||
Present value of net obligations
|
$
|
5,076
|
(In thousands)
|
||||
2017
|
$
|
705
|
||
2018
|
489
|
|||
2019
|
357
|
|||
2020
|
43
|
|||
2021
|
44
|
|||
2022
|
4
|
|||
Total
|
$
|
1,642
|
Year Ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Revenues
|
||||||||
Investment advisory and incentive fees
|
$
|
8,552
|
$
|
9,750
|
||||
Distribution fees and other income
|
279
|
325
|
||||||
Institutional research services
|
8,973
|
10,925
|
||||||
Total revenues
|
17,804
|
21,000
|
||||||
Expenses
|
||||||||
Compensation
|
20,500
|
22,298
|
||||||
Stock based compensation
|
4,716
|
1,921
|
||||||
Management fee
|
(727
|
)
|
(36
|
)
|
||||
Distribution costs
|
(85
|
)
|
(598
|
)
|
||||
Other operating expenses
|
9,070
|
7,341
|
||||||
Total expenses
|
33,474
|
30,926
|
||||||
Operating loss
|
(15,670
|
)
|
(9,926
|
)
|
||||
Other income (expense)
|
||||||||
Net gain from investments
|
7,660
|
6,491
|
||||||
Interest and dividend income
|
2,740
|
4,416
|
||||||
Interest expense
|
(1,224
|
)
|
(1,377
|
)
|
||||
Total other income (expense), net
|
9,176
|
9,530
|
||||||
Income/(loss) from discontinued operations before income taxes
|
(6,494
|
)
|
(396
|
)
|
||||
Income tax provision/(benefit)
|
(2,045
|
)
|
771
|
|||||
Income/(loss) from discontinued operations, net of taxes
|
(4,449
|
)
|
(1,167
|
)
|
||||
Net income/(loss) attributable to noncontrolling interests
|
(562
|
)
|
(4,274
|
)
|
||||
Net income/(loss) attributable to GAMCO Investors, Inc.'s
|
||||||||
discontinued operations, net of taxes
|
$
|
(3,887
|
)
|
$
|
3,107
|
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
|
2015
|
||||||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
Total
|
||||||||||||||||
Revenues
|
$
|
99,806
|
$
|
98,693
|
$
|
92,160
|
$
|
90,317
|
$
|
380,976
|
||||||||||
Operating income
|
38,590
|
38,981
|
37,276
|
33,102
|
147,949
|
|||||||||||||||
Income from continuing operations
|
23,148
|
23,775
|
22,451
|
17,925
|
87,299
|
|||||||||||||||
Income/(loss) from discontinued operations,
|
||||||||||||||||||||
net of taxes
|
1,628
|
326
|
(7,483
|
)
|
1,642
|
(3,887
|
)
|
|||||||||||||
Net income attributable to GAMCO
|
||||||||||||||||||||
Investors, Inc.'s shareholders
|
24,776
|
24,101
|
14,968
|
19,567
|
83,412
|
|||||||||||||||
Net income attributable to GAMCO
|
||||||||||||||||||||
Investors, Inc.'s shareholders per share:
|
||||||||||||||||||||
Basic - Continuing operations
|
$
|
0.92
|
$
|
0.95
|
$
|
0.90
|
$
|
0.68
|
$
|
3.43
|
||||||||||
Basic - Discontinued operations
|
0.07
|
0.01
|
(0.30
|
)
|
0.06
|
(0.15
|
)
|
|||||||||||||
Basic - Total
|
$
|
0.99
|
$
|
0.96
|
$
|
0.60
|
$
|
0.74
|
$
|
3.28
|
||||||||||
Diluted - Continuing operations
|
$
|
0.91
|
$
|
0.94
|
$
|
0.89
|
$
|
0.67
|
$
|
3.40
|
||||||||||
Diluted - Discontinued operations
|
0.06
|
0.01
|
(0.30
|
)
|
0.06
|
(0.15
|
)
|
|||||||||||||
Diluted - Total
|
$
|
0.97
|
$
|
0.95
|
$
|
0.59
|
$
|
0.73
|
$
|
3.24
|
ITEM 14: |
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
2.1
|
Agreement and Plan of Merger, dated October 14, 2014, 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, 2014 filed with the Securities and Exchange Commission on November 22, 2014).
|
||
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, 2014 filed with the Securities and Exchange Commission on November 22, 2014).
|
||
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, 2014 filed with the Securities and Exchange Commission on November 22, 2014).
|
||
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, 2015 filed with the Securities and Exchange Commission on September 26, 2015).
|
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, 2014 filed with the Securities and Exchange Commission on November 22, 2014).
|
||
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 January 6, 2011 filed with the Securities and Exchange Commission on January 6, 2011).
|
||
4.3
|
First Supplemental Indenture, dated as of November 22, 2014, 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, 2014 filed with the Securities and Exchange Commission on November 22, 2014).
|
||
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, 2014, 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, 2014 filed with the Securities and Exchange Commission on November 22, 2014).
|
||
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 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 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. 1999 Stock Award and Incentive Plan (Incorporated by reference to Exhibit 10.4 to Amendment No. 3 to the Company’s Registration Statement on Form S-1 (Registration No. 333-51023) filed with the Commission on January 29, 1999). *
|
||
10.3
|
GAMCO Investors, Inc. 1999 Annual Performance Incentive Plan (Incorporated by reference to Exhibit 10.5 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). *
|
||
10.4
|
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). *
|
10.5
|
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, 2014).*
|
||
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
|
Exchange and Standstill Agreement, dated May 31, 2006, between the Company and Frederick J. Mancheski (Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended June 30, 2006 filed with the Securities and Exchange Commission on August 8, 2006).
|
||
10.8
|
Registration Rights Agreement, dated May 31, 2006 by and between GAMCO Investors, Inc. and Frederick J. Mancheski and David M. Perlmutter. (Incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q for the quarter ended June 30, 2006 filed with the Securities and Exchange Commission on August 8, 2006).
|
||
10.9
|
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).
|
||
10.10
|
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).
|
||
10.11
|
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).
|
||
10.12
|
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).
|
||
10.13
|
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).
|
||
10.14
|
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).
|
||
10.15
|
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).
|
10.16
|
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).
|
||
10.17
|
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).
|
||
10.18
|
$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).
|
||
10.19
|
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).
|
||
12.1
|
Computation of Ratios of Earnings to Fixed Charges.
|
||
21.1
|
Subsidiaries of the Company.
|
||
23.1
|
Consent of Independent Registered Public Accounting Firm.
|
||
24.1
|
Powers of Attorney (included on page 92 of this Report).
|
||
31.1
|
Certification of CEO pursuant to Rule 13a-14(a).
|
||
31.2
|
Certification of co-CAO pursuant to Rule 13a-14(a).
|
||
31.3
|
Certification of co-CAO pursuant to Rule 13a-14(a).
|
||
32.1
|
Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
32.2
|
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 6, 2017
|
Date: March 6, 2017
|
Signature
|
Title
|
Date
|
||
/s/ Mario J. Gabelli
|
Chairman of the Board,
|
March 6, 2017
|
||
Mario J. Gabelli
|
Chief Executive Officer
|
|||
(Principal Executive Officer)
|
||||
and Director
|
||||
/s/ Kieran Caterina
|
Co-Chief Accounting
|
March 6, 2017
|
||
Kieran Caterina
|
Officer (Co-Principal
|
|||
Accounting Officer)
|
||||
/s/ Diane M. LaPointe
|
Co-Chief Accounting
|
March 6, 2017
|
||
Diane M. LaPointe
|
Officer (Co-Principal
|
|||
Accounting Officer)
|
||||
/s/ Edwin L. Artzt
|
Director
|
March 6, 2017
|
||
Edwin L. Artzt
|
||||
/s/ Raymond C. Avansino, Jr.
|
Director
|
March 6, 2017
|
||
Raymond C. Avansino, Jr.
|
||||
/s/ Leslie B. Daniels
|
Director
|
March 6, 2017
|
||
Leslie B. Daniels
|
||||
/s/ Eugene R. McGrath
|
Director
|
March 6, 2017
|
||
Eugene R. McGrath
|
||||
/s/ Robert S. Prather, Jr.
|
Director
|
March 6, 2017
|
||
Robert S. Prather, Jr.
|
||||
/s/ Elisa M. Wilson
|
Director
|
March 6, 2017
|
||
Elisa M. Wilson
|
|
Year Ending December 31,
|
|||||||||||||||||||
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
(In thousands, except ratio data)
|
|
|
|
|
|
|||||||||||||||
Income before taxes
|
$
|
182,227
|
$
|
139,025
|
$
|
168,283
|
$
|
143,007
|
$
|
106,692
|
||||||||||
Fixed charges
|
12,716
|
8,672
|
7,687
|
10,066
|
15,442
|
|||||||||||||||
Adjusted earnings
|
194,943
|
147,697
|
175,970
|
153,073
|
122,134
|
|||||||||||||||
|
||||||||||||||||||||
Interest expense
|
12,674
|
8,636
|
7,653
|
10,033
|
15,401
|
|||||||||||||||
Interest portion of operating leases
|
42
|
36
|
34
|
33
|
41
|
|||||||||||||||
Fixed charges
|
$
|
12,716
|
$
|
8,672
|
$
|
7,687
|
$
|
10,066
|
$
|
15,442
|
||||||||||
|
||||||||||||||||||||
Ratio of earnings to fixed charges (a)
|
15.3
|
17.0
|
22.9
|
15.2
|
7.9
|
(a) | These ratios were calculated by dividing the sum of fixed charges into the sum of earnings before taxes and fixed charges. Fixed charges for these purposes consist of all interest expense and the approximate portion of rental expense representing interest. |
Name
|
Jurisdiction of Incorporation or Organization
|
Gabelli Funds, LLC
|
New York
|
(100%-owned by the Company)
|
|
GAMCO Asset Management Inc.
|
New York
|
(100%-owned by the Company)
|
|
Gabelli Fixed Income, Inc.
|
New York
|
(100%-owned by the Company)
|
|
GAMCO Asset Management (UK) Limited
|
United Kingdom
|
(100%-owned by the Company)
|
|
Gabelli Fixed Income L.L.C.
|
Delaware
|
(100%-owned by Gabelli Fixed Income, Inc.)
|
|
GAMCO Acquisition LLC
|
New York
|
(100%-owned by the Company)
|
|
G.distributors, LLC | Delaware |
(100%-owned by GAMCO Asset Management Inc.)
|
|
Gabelli Japan K.K. | Japan |
(100%-owned by the Company)
|
1)
|
Registration Statement (Form S-3 No. 333-160802) of GAMCO Investors, Inc. and subsidiaries),
|
2)
|
Registration Statement (Form S-3 No. 333-136428) of GAMCO Investors, Inc. and subsidiaries),
|
3)
|
Registration Statement (Form S-3 No. 333-141446) of GAMCO Investors, Inc. and subsidiaries),
|
4)
|
Registration Statement (Form S-3 No. 333-203352) of GAMCO Investors, Inc. and subsidiaries),
|
5)
|
Registration Statement (Form S-3 No. 333-181398) of GAMCO Investors, Inc. and subsidiaries),
|
6)
|
Registration Statement (Form S-3 No. 333-148046) of GAMCO Investors, Inc. and subsidiaries),
|
7)
|
Registration Statement (Form S-3 No. 333-125773) of GAMCO Investors, Inc. and subsidiaries),
|
8)
|
Registration Statement (Form S-3 No. 333-102935) of GAMCO Investors, Inc. and subsidiaries),
|
9)
|
Registration Statement (Form S-3 No. 333-74676) of GAMCO Investors, Inc. and subsidiaries),
|
10)
|
Registration Statement (Form S-8 No. 333-76748) pertaining to the 1999 Stock Award and Incentive Plan of GAMCO Investors, Inc. and subsidiaries,
|
11)
|
Registration Statement (Form S-8 No. 333-126095) pertaining to the 2002 Stock Award and Incentive Plan of GAMCO Investors, Inc. and subsidiaries,
|
12)
|
Registration Statement (Form S-8 No. 333-172427) pertaining to the 2002 Stock Award and Incentive Plan of GAMCO Investors, Inc. and subsidiaries,
|
13)
|
Registration Statement (Form S-8 No. 333-192525) pertaining to the 2002 Stock Award and Incentive Plan of GAMCO Investors, Inc. and subsidiaries.
|
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By:
|
/s/ Mario J. Gabelli
|
|
Name:
|
Mario J. Gabelli
|
|
Title:
|
Chief Executive Officer
|
|
|
|
|
Date:
|
March 6, 2017
|
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By:
|
/s/ Kieran Caterina
|
|
Name:
|
Kieran Caterina
|
|
Title:
|
SVP and Co-Chief Accounting Officer
|
|
|
|
|
Date:
|
March 6, 2017
|
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By:
|
/s/ Mario J. Gabelli
|
|
Name:
|
Mario J. Gabelli
|
|
Title:
|
Chief Executive Officer
|
|
|
|
|
Date:
|
March 6, 2017
|
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By:
|
/s/ Kieran Caterina
|
By: | /s/ Diane M. LaPointe | |
Name:
|
Kieran Caterina
|
Name: | Diane M. LaPointe | |
Title:
|
SVP and Co-Chief Accounting Officer
|
Title: | SVP and Co-Chief Accounting Officer | |
|
||||
Date:
|
March 6, 2017
|
Date: | March 6, 2017 |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By:
|
/s/ Diane M. LaPointe
|
|
Name:
|
Diane M. LaPointe
|
|
Title:
|
SVP and Co-Chief Accounting Officer
|
|
|
|
|
Date:
|
March 6, 2017
|
Year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Revenues
|
||||||||||||
Distribution fees and other income
|
$
|
29,045
|
$
|
26,860
|
$
|
29,611
|
||||||
Total revenues
|
29,045
|
26,860
|
29,611
|
|||||||||
Expenses
|
||||||||||||
Compensation
|
1,929
|
3,550
|
4,005
|
|||||||||
Stock based compensation
|
3,959
|
9,868
|
5,278
|
|||||||||
Management fee benefit
|
(13,943
|
)
|
(2,209
|
)
|
(1,076
|
)
|
||||||
Other operating expenses
|
9,102
|
9,243
|
8,990
|
|||||||||
Total expenses
|
1,047
|
20,452
|
17,197
|
|||||||||
Operating income
|
27,998
|
6,408
|
12,414
|
|||||||||
Other income (expense)
|
||||||||||||
Equity earnings from subsidiaries
|
100,698
|
87,206
|
97,234
|
|||||||||
Net gain from investments
|
1,447
|
4,635
|
4,272
|
|||||||||
Extinguishment of debt
|
-
|
(1,067
|
)
|
(84
|
)
|
|||||||
Interest and dividend income
|
1,447
|
2,246
|
2,175
|
|||||||||
Interest expense
|
(11,814
|
)
|
(7,886
|
)
|
(6,919
|
)
|
||||||
Shareholder-designated contributions
|
-
|
(6,396
|
)
|
(134
|
)
|
|||||||
Total other income, net
|
91,778
|
78,738
|
96,544
|
|||||||||
Income before income taxes
|
119,776
|
85,146
|
108,958
|
|||||||||
Income tax provision/(benefit)
|
2,655
|
(2,204
|
)
|
1,605
|
||||||||
Income from continuing operations
|
117,121
|
87,350
|
107,353
|
|||||||||
Income/(loss) from discontinued operations, net of taxes
|
-
|
(3,938
|
)
|
2,037
|
||||||||
Net income
|
$
|
117,121
|
$
|
83,412
|
$
|
109,390
|
||||||
December 31,
|
December 31, | |||||||
2016
|
2015
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
7,209
|
$
|
3,982
|
||||
Investments in securities
|
37,235
|
32,735
|
||||||
Receivable from brokers
|
55
|
635
|
||||||
Receivable from affiliates
|
57,274
|
20,445
|
||||||
Capital lease
|
2,514
|
2,723
|
||||||
Income tax receivable
|
-
|
11,991
|
||||||
Other assets
|
4,149
|
4,218
|
||||||
Total assets
|
$
|
108,436
|
$
|
76,729
|
||||
LIABILITIES AND EQUITY
|
||||||||
Payable to brokers
|
$
|
66
|
$
|
12
|
||||
Capital lease obligation
|
5,066
|
5,170
|
||||||
Compensation payable
|
27,496
|
11,144
|
||||||
Securities sold, not yet purchased
|
-
|
129
|
||||||
Payable to affiliates
|
462
|
31,029
|
||||||
Accrued expenses and other liabilities
|
5,556
|
5,579
|
||||||
Sub-total
|
38,646
|
53,063
|
||||||
AC 4% PIK Note (due November 30, 2020)
|
100,000
|
250,000
|
||||||
4.5% Convertible note (due August 15, 2021)
|
109,835
|
-
|
||||||
Loan from GGCP (due December 28, 2016)
|
-
|
35,000
|
||||||
5.875% Senior notes (due June 1, 2021)
|
24,120
|
24,097
|
||||||
Total liabilities
|
272,601
|
362,160
|
||||||
Total equity
|
(164,165
|
)
|
(285,431
|
)
|
||||
Total liabilities and equity
|
$
|
108,436
|
$
|
76,729
|
Year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Operating activities
|
||||||||||||
Net income
|
$
|
117,121
|
$
|
83,412
|
$
|
109,390
|
||||||
Loss/(income) from discontinued operations, net of taxes
|
-
|
3,938
|
(2,037
|
)
|
||||||||
Income from continuing operations
|
117,121
|
87,350
|
107,353
|
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
607
|
595
|
589
|
|||||||||
Stock based compensation expense
|
3,959
|
9,868
|
5,278
|
|||||||||
Tax benefit from exercise of stock options
|
-
|
102
|
349
|
|||||||||
Donated securities
|
499
|
1,945
|
1,486
|
|||||||||
Gains on sales of available for sale securities
|
(4
|
)
|
(6
|
)
|
(587
|
)
|
||||||
Accretion of zero coupon debentures
|
-
|
628
|
885
|
|||||||||
Loss on extinguishment of debt
|
-
|
1,067
|
84
|
|||||||||
(Increase) decrease in assets:
|
||||||||||||
Investments in trading securities
|
(5
|
)
|
-
|
-
|
||||||||
Receivable from affiliates
|
(25,510
|
)
|
(31,205
|
)
|
23,758
|
|||||||
Receivable from brokers
|
580
|
976
|
(983
|
)
|
||||||||
Income tax receivable and deferred tax assets
|
11,991
|
29,164
|
(7,544
|
)
|
||||||||
Other assets
|
(330
|
)
|
(478
|
)
|
345
|
|||||||
Increase (decrease) in liabilities:
|
||||||||||||
Payable to affiliates
|
(30,567
|
)
|
31,017
|
(228
|
)
|
|||||||
Payable to brokers
|
54
|
(539
|
)
|
(752
|
)
|
|||||||
Income taxes payable and deferred tax liabilities
|
(1,137
|
)
|
3,920
|
1,611
|
||||||||
Compensation payable
|
16,351
|
(3,319
|
)
|
11,541
|
||||||||
Accrued expenses and other liabilities
|
(700
|
)
|
(424
|
)
|
(5,581
|
)
|
||||||
Total adjustments
|
(24,212
|
)
|
43,311
|
30,251
|
||||||||
Net cash provided by operating activities from continuing operations
|
$
|
92,909
|
$
|
130,661
|
$
|
137,604
|
Year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Investing activities
|
||||||||||||
Purchases of available for sale securities
|
$
|
(1,843
|
)
|
$
|
(6,279
|
)
|
$
|
(5,024
|
)
|
|||
Proceeds from sales of available for sale securities
|
408
|
81
|
3,877
|
|||||||||
Net cash used in investing activities from continuing operations
|
(1,435
|
)
|
(6,198
|
)
|
(1,147
|
)
|
||||||
Financing activities
|
||||||||||||
Repurchase of Zero coupon subordinated debentures due December 31, 2015
|
-
|
(13,101
|
)
|
(716
|
)
|
|||||||
Repurchase of 5.875% Senior note due June 1, 2021
|
-
|
(76,533
|
)
|
-
|
||||||||
Repayment of AC 4% PIK Note due November 30, 2020
|
(150,000
|
)
|
-
|
-
|
||||||||
Issuance of 4.5% Convertible note due August 15, 2021
|
109,826
|
-
|
-
|
|||||||||
Loan from GGCP due December 28, 2016
|
(35,000
|
)
|
35,000
|
-
|
||||||||
Amortization of debt issuance costs
|
33
|
-
|
-
|
|||||||||
Dividends paid by subsidiaries to GBL
|
-
|
164,000
|
101,000
|
|||||||||
Net transfer to/(from) AC
|
-
|
(196,297
|
)
|
(193,021
|
)
|
|||||||
Proceeds from exercise of stock options
|
-
|
1,167
|
1,637
|
|||||||||
Dividends paid
|
(2,333
|
)
|
(7,468
|
)
|
(12,618
|
)
|
||||||
Purchase of treasury stock
|
(10,773
|
)
|
(27,249
|
)
|
(32,739
|
)
|
||||||
Net cash used in financing activities from continuing operations
|
(88,247
|
)
|
(120,481
|
)
|
(136,457
|
)
|
||||||
Cash flows of discontinued operations
|
||||||||||||
Net cash provided by/(used in) operating activities
|
-
|
82,759
|
(66,053
|
)
|
||||||||
Net cash provided by/(used in) investing activities
|
-
|
(35,216
|
)
|
3,900
|
||||||||
Net cash provided by/(used in) financing activities
|
-
|
(47,543
|
)
|
62,153
|
||||||||
Net cash provided by/(used in) discontinued operations
|
-
|
-
|
-
|
|||||||||
Net increase in cash and cash equivalents
|
3,227
|
3,982
|
-
|
|||||||||
Cash and cash equivalents at beginning of period
|
3,982
|
-
|
-
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
7,209
|
$
|
3,982
|
$
|
-
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid for interest
|
$
|
10,425
|
$
|
6,282
|
$
|
5,936
|
||||||
Cash paid for taxes
|
$
|
74,457
|
$
|
58,353
|
$
|
69,287
|