For Immediate Release: | Contact: | Howard Green |
SVP of Corporate Development | ||
(914) 921-7729 | ||
For further information please visit | ||
www.gabelli.com |
- | Fourth quarter net income was 5% higher at $24.4 million vs. $23.3 million a year ago |
- | Fully diluted fourth quarter earnings were 12% higher at $0.91 per share versus $0.81 per share a year ago |
- | December 31, 2019 AUM was $36.5 billion, up 6% from $34.4 billion at December 31, 2018 |
Financial Highlights (Unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
(In thousands, except per share data) | December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||
U.S. GAAP Basis | ||||||||||||||||||||
Revenues | $ | 86,280 | $ | 75,345 | $ | 80,977 | $ | 312,368 | $ | 341,455 | ||||||||||
Operating income | 33,043 | 29,568 | 52,458 | 117,984 | 186,787 | |||||||||||||||
Net income | 24,382 | 13,626 | 23,337 | 81,917 | 117,196 | |||||||||||||||
Diluted earnings per common share (a) | $ | 0.91 | $ | 0.50 | $ | 0.81 | $ | 2.98 | $ | 4.07 | ||||||||||
Weighted average diluted shares outstanding | 26,892 | 27,093 | 28,636 | 27,479 | 28,777 | |||||||||||||||
Shares outstanding | 27,380 | 27,548 | 28,982 | 27,380 | 28,982 | |||||||||||||||
Assets Under Management | ||||||||||||||||||||
AUM - average (in millions) | $ | 35,940 | $ | 35,997 | $ | 37,405 | $ | 36,443 | $ | 40,349 | ||||||||||
AUM - end of period (in millions) | 36,475 | 35,692 | 34,354 | 36,475 | 34,354 | |||||||||||||||
(a) CEO waivers of compensation bolstered earnings by $0.26 per share in the December 31, 2019 quarter, by $0.12 per share in the September 30, | ||||||||||||||||||||
2019 quarter, by $0.40 per share in the December 31, 2018 quarter, by $0.75 per share in 2019, and by $1.49 in 2018. |
- | Total revenues for the fourth quarter of 2019 were $86.3 million compared with $81.0 million in the fourth quarter of 2018. |
- | Investment advisory fees were $78.2 million in the fourth quarter of 2019 versus $72.0 million in the fourth quarter of 2018: |
- | Open-end and closed-end fund revenues were $43.6 million compared to $45.6 million in the fourth quarter of 2018. |
- | Institutional and Private Wealth Management revenues, which are generally billed on portfolio values at the beginning of the quarter, were $19.4 million compared to $23.7 million in the year ago quarter. |
- | SICAV revenues were $1.5 million versus $1.4 million in last year’s fourth quarter. |
- | Incentive fees earned were $13.7 million as compared to $1.3 million in the prior year quarter. |
- | Distribution fees from our open-end equity funds and other income were $8.1 million for the quarter versus $9.0 million in 2018. |
- | Total revenues for 2019 were $312.4 million compared with $341.5 million in 2018. |
Business Highlights
- As of the November 15, 2019 record date for the SDCC Program, approximately 82% of all shares were registered and eligible to designate a total of $4.5 million in contributions ($0.20 per share) to be paid in 2020.
- Our 43rd Annual Automotive Symposium took place on November 4 in Las Vegas, Nevada. The meeting featured presentations by senior management of several leading automotive companies with an emphasis on industry dynamics, technical innovation, EV, and macroeconomic trends.
- The Gabelli Dividend & Income Trust (NYSE: GDV) successfully completed its first transferable rights offering on November 18. GDV issued 8.2 million common shares for gross proceeds of $165 million.
- Gabelli Funds and Columbia Business School’s Healthcare and Pharmaceutical Management Program co-hosted a symposium at the Paley Center for Media entitled Healthcare at a Crossroads: What’s the Path Forward? on November 22. The symposium topics included the potential impact of the 2020 election on healthcare access and coverage, drug pricing, and leveraging data and technology to transform care.
- The Gabelli Equity Trust Inc. (NYSE: GAB) completed a $100 million offering of 5.00% Series K Cumulative Preferred Stock on December 16. The Series K Preferred is perpetual, non-callable for five years, and was issued with a liquidation preference of $25 per share.
- The Gabelli Multimedia Trust Inc. (NYSE: GGT) successfully completed the issuance of $50 million of Series G Cumulative Preferred Stock on December 20. The Series G Preferred is perpetual, non-callable for five years, and was issued with a liquidation preference of $25 per share.
Table I: Assets Under Management and Fund Flows - 4th Quarter 2019 (in millions) | ||||||||||||||||||||
Fund | ||||||||||||||||||||
Market | distributions, | |||||||||||||||||||
September 30, | appreciation/ | Net cash | net of | December 31, | ||||||||||||||||
2019 | (depreciation) | flows | reinvestments | 2019 | ||||||||||||||||
Equities: | ||||||||||||||||||||
Open-end Funds | $ | 10,568 | $ | 559 | $ | (588 | ) | $ | (58 | ) | $ | 10,481 | ||||||||
Closed-end Funds | 7,476 | 437 | 227 | (135 | ) | 8,005 | ||||||||||||||
Institutional & PWM (a) | 14,159 | 872 | (466 | ) | - | 14,565 | ||||||||||||||
SICAV | 550 | 25 | 19 | - | 594 | |||||||||||||||
Total Equities | 32,753 | 1,893 | (808 | ) | (193 | ) | 33,645 | |||||||||||||
Fixed Income: | ||||||||||||||||||||
100% U.S. Treasury Fund | 2,921 | 13 | (124 | ) | - | 2,810 | ||||||||||||||
Institutional & PWM | 18 | - | 2 | - | 20 | |||||||||||||||
Total Fixed Income | 2,939 | 13 | (122 | ) | - | 2,830 | ||||||||||||||
Total Assets Under Management | $ | 35,692 | $ | 1,906 | $ | (930 | ) | $ | (193 | ) | $ | 36,475 | ||||||||
�� | ||||||||||||||||||||
(a) Includes $237 and $215 of 100% U.S. Treasury Fund AUM at September 30, 2019 and December 31, 2019, respectively. | ||||||||||||||||||||
Table II | ||||||||||||||||
GAMCO INVESTORS, INC. | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Investment advisory and incentive fees | $ | 78,197 | $ | 72,035 | $ | 279,090 | $ | 302,651 | ||||||||
Distribution fees and other income | 8,083 | 8,942 | 33,278 | 38,804 | ||||||||||||
Total revenues | 86,280 | 80,977 | 312,368 | 341,455 | ||||||||||||
Compensation costs (a) | 33,165 | 11,304 | 123,528 | 83,768 | ||||||||||||
Management fee expense (a) | 1,661 | 1,449 | 9,963 | 9,014 | ||||||||||||
Distribution costs | 8,680 | 9,319 | 34,226 | 39,194 | ||||||||||||
Other operating expenses | 9,731 | 6,447 | 26,667 | 22,692 | ||||||||||||
Total expenses | 53,237 | 28,519 | 194,384 | 154,668 | ||||||||||||
Operating income | 33,043 | 52,458 | 117,984 | 186,787 | ||||||||||||
Investment income / (loss) | (1,307 | ) | (16,391 | ) | (2,217 | ) | (22,932 | ) | ||||||||
Interest expense | (647 | ) | (644 | ) | (2,609 | ) | (3,525 | ) | ||||||||
Shareholder-designated contribution | - | (4,787 | ) | (4,500 | ) | (5,671 | ) | |||||||||
Non-operating income / (loss) | (1,954 | ) | (21,822 | ) | (9,326 | ) | (32,128 | ) | ||||||||
Income before income taxes | 31,089 | 30,636 | 108,658 | 154,659 | ||||||||||||
Provision for income taxes | 6,707 | 7,299 | 26,741 | 37,463 | ||||||||||||
Net income | $ | 24,382 | $ | 23,337 | $ | 81,917 | $ | 117,196 | ||||||||
Net income: | ||||||||||||||||
Basic | $ | 0.91 | $ | 0.82 | $ | 2.99 | $ | 4.08 | ||||||||
Diluted | $ | 0.91 | $ | 0.81 | $ | 2.98 | $ | 4.07 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 26,801 | 28,611 | 27,407 | 28,744 | ||||||||||||
Diluted | 26,892 | 28,636 | 27,479 | 28,777 | ||||||||||||
Actual shares outstanding (b) | 27,380 | 28,982 | 27,380 | 28,982 | ||||||||||||
(a) CEO waiver reduced compensation costs by $7,154, $13,063, $23,010, and $46,607, respectively and | ||||||||||||||||
management fee expense by $1,928, $1,902, $4,219, and $9,889, respectively. | ||||||||||||||||
(b) Includes 661, 428, 661, and 428 of RSAs, respectively. | ||||||||||||||||
Table III | ||||||||
GAMCO INVESTORS, INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
(In thousands, except per share data) | ||||||||
December 31, | December 31, | |||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 86,136 | $ | 41,202 | ||||
Investments in securities | 34,273 | 33,789 | ||||||
Receivable from brokers | 989 | 3,423 | ||||||
Other receivables | 41,557 | 31,135 | ||||||
Deferred tax asset and income tax receivable | 16,574 | 15,001 | ||||||
Other assets | 10,542 | 10,062 | ||||||
Total assets | $ | 190,071 | $ | 134,612 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Payable to brokers | $ | - | $ | 112 | ||||
Income taxes payable and deferred tax liabilities | 942 | 2,388 | ||||||
Compensation payable (a) | 64,279 | 60,408 | ||||||
Accrued expenses and other liabilities | 45,942 | 37,926 | ||||||
Sub-total | 111,163 | 100,834 | ||||||
5.875% Senior Notes (due June 1, 2021) | 24,191 | 24,168 | ||||||
Total liabilities | 135,354 | 125,002 | ||||||
Stockholders' equity | 54,717 | 9,610 | ||||||
Total liabilities and stockholders' equity | $ | 190,071 | $ | 134,612 | ||||
(a) Excludes $11.3 million of Deferred Cash Compensation Agreements ("DCCAs") expense that was not | ||||||||
yet recorded under GAAP as of December 31, 2018. | ||||||||
Management believes the use of non-GAAP measures provides relevant information to allow investors to view operating trends, perform analytical comparisons and benchmark performance between periods for its core operating results. Management uses non-GAAP measures in its financial, investing and operational decision-making process, for internal reporting and as part of its forecasting and budgeting processes. GAMCO’s calculation of non-GAAP measures may not be comparable to other companies due to potential differences between companies in the method of calculation. Non-GAAP measures should not be considered a substitute for related U.S. GAAP measures. |
Three Months Ended | Year Ended | |||||||||||||||||||
(Unaudited) (In thousands, except per share data) | December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||
Net income, U.S. GAAP basis | $ | 24,382 | $ | 13,626 | $ | 23,337 | $ | 81,917 | $ | 117,196 | ||||||||||
Impact of DCCAs on expenses and taxes (a): | ||||||||||||||||||||
Compensation costs | 1,660 | 2,568 | (10,214 | ) | 14,791 | (3,567 | ) | |||||||||||||
Management fee expense | 1,030 | 1,030 | 1,449 | 4,538 | 7,197 | |||||||||||||||
Provision for income taxes | (646 | ) | (864 | ) | 2,191 | (4,639 | ) | (907 | ) | |||||||||||
Total impact of DCCAs on expenses and taxes | 2,044 | 2,734 | (6,574 | ) | 14,690 | 2,723 | ||||||||||||||
Net income, as adjusted | $ | 26,426 | $ | 16,360 | $ | 16,763 | $ | 96,607 | $ | 119,919 | ||||||||||
Per fully diluted share: | ||||||||||||||||||||
Net income, U.S. GAAP basis | $ | 0.91 | $ | 0.50 | $ | 0.81 | $ | 2.98 | $ | 4.07 | ||||||||||
Impact of DCCAs | $ | 0.08 | $ | 0.10 | $ | (0.22 | ) | $ | 0.54 | $ | 0.10 | |||||||||
Net income, as adjusted | $ | 0.99 | $ | 0.60 | $ | 0.59 | $ | 3.52 | $ | 4.17 | ||||||||||
(a) The non-GAAP adjustments relate to multiple DCCAs. |