EX-99 3 s4thqtrfinal.txt EXHIBIT 99.1 - PRESS RELEASE One Corporate Center Rye, NY 10580-1435 Tel. (914) 921-5146 Fax (914) 921-5392 [GRAPHIC OMITTED] Gabelli Asset Management www.gabelli.com For Immediate Release: Contact: Robert S. Zuccaro Chief Financial Officer (914) 921-5146 For further information visit our Website at: www.gabelli.com Gabelli Asset Management Inc. Reports Record Net Income for the Fourth Quarter and for the Full Year Full Year 2001 Diluted Earnings of $2.03 per share versus $1.94 per share in Prior Year Rye, New York, January 30, 2002 - Gabelli Asset Management Inc. (NYSE: "GBL") today reported record results for the fourth quarter and full year ended December 31, 2001. Fourth Quarter and Full Year ---------------------------- Net income was $15.4 million, or $0.51 per diluted share for the fourth quarter ended December 31, 2001, matching last year's record fourth quarter earnings per share and exceeding the prior period net income of $15.3 million. Operating income in the period increased by 9% to $27.7 million versus $25.4 million last year. Total revenues in the quarter were $52.9 million versus $59.9 million in 2000. Income from investments during the quarter was approximately $0.6 million compared to $3.8 million in last year's fourth quarter. There were 32.2 million shares outstanding on December 31, 2001 compared to 30.0 million at the prior year end. For the full year, Gabelli Asset Management reported record earnings of $61.1 million, or $2.03 per diluted share, an increase of 5% over last year's earnings per share of $1.94 on net income of $58.0 million. Operating income in the year increased by 4.6% to $104.8 million versus $100.2 million last year. Total revenues in 2001 were $224.4 million versus $233.9 million in 2000. Income from investments during the year was $8.5 million, compared to $12.7 million last year. Average shares outstanding for the full year ended December 31, 2001 were 30.8 million versus 29.9 million for the year 2000. Financial Highlights -------------------- A key aspect to the Company's performance during the fourth quarter 2001 was our ability to recover from the decline in assets which occurred after September 11. Assets under management rose 11% to $24.8 billion at December 31, 2001 from the September 30 level of $22.3 billion and were 5% higher than the $23.5 billion under management at December 31, 2000. The fourth quarter recovery was driven by the performance of our equity products, which attracted $284 million of net cash inflows and increased more than $2.2 billion from market appreciation. Average total assets under management were $23.8 billion during the fourth quarter of 2001 versus $23.5 billion during the fourth quarter of 2000. For the full year 2001, average total assets under management were $24.2 billion, 4.8% higher than average total assets of $23.1 billion in 2000. Despite a hostile equity market environment marked by high volatility following the tragic events of September 11, net cash flows into our equity products totaled a record $2.6 billion for 2001. Total net cash inflows including fixed income products were $2.7 billion for the year. The increase in average total assets under management during the fourth quarter of 2001 versus the prior year's quarter did not translate into higher comparable revenues since the increase in average assets in our institutional and high net worth Separate Accounts and Alternative Investment products were offset by a 13.6% decline in our open-end equity mutual fund accounts and lower performance fees from our hedge fund products. Since revenues from our Separate Accounts business are billed on assets at the beginning of the quarter, fourth quarter billings reflect the lower levels of assets under management at September 30, 2001, even though assets increased more than 13% during the quarter. Operating income in the fourth quarter of 2001 was $27.7 million, 9% higher than the 2000 quarter as operating expenses declined 26.8% in the 2001 quarter versus the year earlier period. Included in the fourth quarter was a decrease of $2.9 million in incentive compensation. These costs, which were estimated and accrued during the year, were lowered in the fourth quarter to actual amounts awarded for the year, resulting in a $0.05 addition to fourth quarter diluted earnings per share. For the full year, operating margins were 46.7% versus 42.8% in 2000. The improvement in operating margins reflects the Company's ongoing efforts to maximize efficiencies in its cost structure and improve productivity. We continue to build a strong and liquid balance sheet. Cash and Investments were approximately $427 million at December 31, 2001 versus $260 million at December 31, 2000. Stockholders' equity was $272 million at December 31, 2001 versus $202 million at the prior year-end. During the quarter the Company repurchased 50,000 shares of its common stock, at a discount from market price, from Gabelli Group Capital Partners, Inc. at an average cost of $35.20 per share. Investment, Business and Other Highlights: ----------------------------------------- o Assets under management in the high net worth business, which operates under the GAMCO brand, increased to $3.1 billion at December 31, 2001 as 154 new business relationships were established during the year. o Total net cash flows into our institutional and high net worth Separate Accounts exceeded $1.4 billion, with over $700 million added from the net addition of 242 accounts during 2001. o Assets managed in the Alternative Investment products increased $136 million or 31% during 2001. o Fifteen Gabelli Mutual Funds have earned Morningstar Inc.'s overall ranking of "Four Stars" or better including four Gabelli funds which have earned the coveted "Five Star" overall rating. o Net cash flows into our open-end equity mutual funds totaled over $600 million during 2001 placing Gabelli in the top 5% of all mutual funds advisers. Net cash flows into all mutual fund products totaled more than $1.1 billion in 2001.
Assets Under Management - Driver of Growth The Company reported assets under management as follows: Table I Assets Under Management (in millions) December 31, 2000 2001 % Inc. ---- ---- (Dec.) ------ Mutual Funds: Open end $8,971 $8,334 (7.1)% Closed end 1,709 1,831 7.1 Fixed income 1,433 1,790 24.9 ------ ------ Total Mutual Funds 12,113 11,955 (1.3) ------ ------ Institutional & Separate Accounts: Equities 10,142 11,513 13.5 Fixed Income 859 720 (16.2) ------ ------ Total Institutional & Separate Accounts 11,001 12,233 11.2 ------ ------ Partnerships 437 573 31.1 ------ ------ Total Assets Under Management $ 23,551 $ 24,761 5.1 ======== ========
At December 31, 2001, approximately 59% of open end mutual fund assets under management were in funds with Morningstar Inc.'s overall ranking of "Four Star" or better.
Table II Fund Flows - 4th Quarter 2001 (in millions) ------------------------------------------- Market Net Appreciation / September 30, 2001 Cash Flows (Depreciation) December 31, 2001 --------------------- -------------- ---------------- ---------------------- Mutual Funds: Equities $ 9,111 $ 33 $ 1,021 $ 10,165 Fixed Income 1,830 (50) 10 1,790 --------- --------- --------- --------- Total Mutual Funds 10,941 (17) 1,031 11,955 --------- --------- --------- --------- Institutional and Separate Accounts: Equities 10,008 284 1,221 11,513 Fixed Income 780 (64) 4 720 --------- --------- --------- --------- Total Institutional and Separate Accounts 220 1,225 12,233 --------- --------- --------- --------- 10,788 Partnerships 615 (33) (9) 573 --------- --------- --------- --------- Total Assets Under Management $ 22,344 $ 170 $ 2,247 $ 24,761 ========= ========= ========= =========
Assets Under Management (in millions) --------------------------------------------------------- Table III % Inc. ( Dec.) from ------------------- 12/00 3/01 6/01 9/01 12/01 9/01 12/00 ----- ---- ---- ---- ----- ---- ----- Mutual Funds: Open end $8,971 $8,321 $8,963 $7,405 $8,334 12.5% (7.1)% Closed end 1,709 1,746 1,971 1,706 1,831 7.3 7.1 Fixed income 1,433 1,614 1,541 1,830 1,790 (2.2) 24.9 --------- --------- --------- --------- --------- Total Mutual Funds 12,113 11,681 12,475 10,941 11,955 9.3 (1.3) --------- --------- --------- --------- --------- Institutional & Separate Accounts: Equities 10,142 10,651 11,860 10,008 11,513 15.0 13.5 Fixed Income 859 864 737 780 720 (7.7) (16.2) --------- --------- --------- --------- --------- Total Institutional & Separate Accounts 11,001 11,515 12,597 10,788 12,233 13.4 11.2 --------- --------- --------- --------- --------- Partnerships 437 473 558 615 573 (6.8) 31.1 --------- --------- --------- --------- --------- Total Assets Under Management $ 23,551 $ 23,669 $ 25,630 $ 22,344 $ 24,761 10.8 5.1 ========= ========= ========= ========= =========
Table IV GABELLI ASSET MANAGEMENT INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) For the Three Months Ended For the Twelve Months Ended December 31, December 31, ---------------------------------------- --------------------------------------- % Inc. % Inc. 2000 2001 (Dec.) 2000 2001 (Dec.) ---- ---- ------ ---- ---- ------ Revenues........................................... $ 59,861 $ 52,932 $ 233,918 $ 224,414 Expenses........................................... 34,413 25,190 (26.8) 133,708 119,641 (10.5) --------- --------- ---------- ---------- Operating income................................... 25,448 27,742 9.0 100,210 104,773 4.6 Other income, net.................................. 3,751 645 (82.8) 12,747 8,474 (33.5) --------- --------- ---------- ---------- Income before management fee, income taxes and minority interest............................... 29,199 28,387 112,957 113,247 Management fee.................................. 2,920 2,839 11,296 11,325 --------- --------- ---------- ---------- Income before income taxes and minority interest 26,279 25,548 (2.8) 101,661 101,922 0.3 Income tax provision............................ 10,405 9,861 40,257 39,342 Minority interest............................... 619 272 3,409 1,482 --------- --------- ---------- ---------- Net income......................................... $ 15,255 $ 15,415 1.1 $ 57,995 $ 61,098 5.4 Net income per share: Basic............................................ $ 0.52 $ 0.52 - $ 1.96 $ 2.06 5.1 Diluted.......................................... $ 0.51 $ 0.51 - $ 1.94 $ 2.03 4.6 ========= ========= =========== ========= Weighted average shares outstanding: Basic............................................ 29,522 29,875 29,575 29,666 ========= ========= =========== ========= Diluted.......................................... 30,043 32,182 7.1 29,914 30,783 2.9 ========= ========= =========== =========
Table V Gabelli Asset Management Inc. Unaudited Quarterly Consolidated Condensed Statements of Income (in thousands, except per share data) 2000 2001 1st 2nd 3rd 4th 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Total Quarter Quarter Quarter Quarter Total Income Statement Data: ------- ------- ------- ------- ----- ------- ------- ------- ------- ----- Revenues $ 57,773 $ 57,120 $ 59,164 $ 59,861 $ 233,918 $ 58,344 $ 57,017 $ 56,121 $ 52,932 $ 224,414 Expenses 32,391 32,195 34,709 34,413 133,708 31,550 32,102 30,799 25,190 119,641 -------- -------- -------- -------- --------- --------- -------- -------- -------- -------- Operating income 25,382 24,925 24,455 25,448 100,210 26,794 24,915 25,322 27,742 104,773 Other income, net 2,111 2,898 3,987 3,751 12,747 1,136 4,692 2,001 645 8,474 -------- -------- -------- -------- --------- --------- -------- -------- -------- -------- Income before management fee, income taxes and 27,493 27,823 28,442 29,199 112,957 27,930 29,607 27,323 28,387 113,247 minority interest Management fee 2,749 2,783 2,844 2,920 11,296 2,793 2,961 2,732 2,839 11,325 -------- -------- -------- -------- --------- --------- -------- -------- -------- -------- Income before income taxes 24,744 25,040 25,598 26,279 101,661 25,137 26,646 24,591 25,548 101,922 and minority interest Income taxes 9,799 9,916 10,137 10,405 40,257 9,703 10,285 9,493 9,861 39,342 Minority interest 949 870 971 619 3,409 538 520 152 272 1,482 -------- -------- -------- -------- --------- --------- -------- -------- -------- -------- Net income $13,996 $14,254 $ 14,490 $ 15,255 $57,995 $14,896 $15,841 $14,946 $15,415 $61,098 ======== ======== ======== ======== ========= ========= ======== ======== ======= ======== Net income per share: Basic $ 0.47 $ 0.48 $ 0.49 $ 0.52 $ 1.96 $ 0.50 $ 0.54 $ 0.50 $ 0.52 $ 2.06 ======== ======== ======== ======== ========= ========= ======== ======== ======= ======== Diluted $ 0.47 $ 0.48 $ 0.48 $ 0.51 $ 1.94 $ 0.50 $ 0.53 $ 0.49 $ 0.51 $ 2.03 ======== ======== ======== ======== ========= ========= ======== ======== ======= ======== Weighted average shares outstanding: Basic 29,643 29,589 29,547 29,522 29,575 29,507 29,527 29,748 29,875 29,666 ======== ======== ======== ======== ========= ========= ======== ======== ======= ======== Diluted 29,643 29,877 29,969 30,043 29,914 29,839 29,932 31,142 32,182 30,783 ======== ======== ======== ======== ========= ========= ======== ======== ======= ========
Table VI GABELLI ASSET MANAGEMENT INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands) December 31, December 31, 2000 2001 ---- ---- Cash and cash equivalents......................................... $ 146,475 $ 305,447 Investments (a)................................................... 113,159 122,106 Receivables....................................................... 32,490 28,241 Deferred tax asset (b)............................................ 19,382 18,661 Other assets...................................................... 6,298 8,471 --------- --------- Total assets................................................. $ 317,804 $ 482,926 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Debt (b).......................................................... $50,000 $50,000 Accrued expenses and other liabilities............................ 47,756 53,486 --------- --------- Total liabilities............................................ 97,756 103,486 Convertible note payable.......................................... - 100,000 Minority interest................................................. 17,851 7,611 Stockholders' equity.............................................. 202,197 271,829 --------- --------- Total liabilities and stockholders' equity........................ $ 317,804 $ 482,926 ========= =========
(a) Includes investments in sponsored mutual funds of $7 million held as available for sale at December 31, 2001. (b) This debt, arising from the Formation Transactions, was paid on January 2, 2002, and results in a tax benefit to the Company of $19,830 (included in deferred income taxes, net). Gabelli Asset Management Inc. through its subsidiaries manages $24.8 billion in assets in mutual funds and closed end funds (Gabelli Funds LLC), partnerships (Alternative Investment Group), and private investment advisory accounts (GAMCO). ------------------- Forward Looking Information --------------------------- This release may contain forward-looking statements about future operations, results and performance, which involve risks and uncertainties that may cause the actual operations, results or performance to differ materially from those expressed in or implied by the forward-looking statements. These risks and uncertainties include the performance of the securities markets and the Company's investment products, future economic conditions, changes in business strategy and other factors. Consequently, no assurance can be given as to future operations, results or performance, and neither the Company nor any other person assumes liability for the accuracy and completeness of the forward-looking statements in this press release.