EX-99.1 10 form10k2015ex991.htm EXHIBIT 99.1
Exhibit 99.1
 
Schedule I
 
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF INCOME
(Parent company only)
(In thousands, except per share data)

   
Year Ended December 31,
  
   
2015
    
2014
    
2013
  
Revenues
            
  Distribution fees and other income
  
$
26,860
    
$
29,611
    
$
26,785
  
Total revenues
    
26,860
      
29,611
      
26,785
  
Expenses
                        
  Compensation
    
3,550
      
4,005
      
4,126
  
  Stock based compensation
    
9,868
      
5,278
      
1,562
  
  Management fee benefit
    
(2,209
)
    
(1,076
)
    
(3,690
)
  Other operating expenses
    
9,243
      
8,990
      
10,961
  
Total expenses
    
20,452
      
17,197
      
12,959
  
Operating income
    
6,408
      
12,414
      
13,826
  
Other income (expense)
                        
  Equity earnings from subsidiaries
    
87,206
      
97,234
      
89,142
  
  Net gain from investments
    
4,635
      
4,272
      
5,154
  
  Extinguishment of debt
    
(1,067
)
    
(84
)
    
(998
)
  Interest and dividend income
    
2,246
      
2,175
      
2,682
  
  Interest expense
    
(7,886
)
    
(6,919
)
    
(9,356
)
  Shareholder-designated contributions
    
(6,396
)
    
(134
)
    
(10,626
)
Total other income (expense), net
    
78,738
      
96,544
      
75,998
  
Income before income taxes
    
85,146
      
108,958
      
89,824
  
Income tax provision/(benefit)
    
(2,204
)
    
1,605
      
(2,154
)
Income from continuing operations
    
87,350
      
107,353
      
91,978
  
Income/(loss) from discontinued operations, net of taxes
    
(3,938
)
    
2,037
      
24,875
  
Net income
  
$
83,412
    
$
109,390
    
$
116,853
  
                         
 
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Parent company only)
(In thousands, except per share data)
 
   
December 31,
    
December 31,
  
   
2015
    
2014
  
ASSETS
        
         
Cash and cash equivalents
  
$
3,982
    
$
-
  
Investments in securities
    
32,735
      
38,942
  
Receivable from brokers
    
635
      
1,611
  
Receivable from affiliates
    
20,445
      
43,700
  
Capital lease
    
2,723
      
2,933
  
Income tax receivable
    
11,991
      
41,260
  
Other assets
    
4,346
      
4,253
  
Assets of discontinued operations
    
-
      
700,958
  
  Total assets
  
$
76,857
    
$
833,657
  
                 
LIABILITIES AND EQUITY
                
                 
Payable to brokers
  
$
12
    
$
12
  
Capital lease obligation
    
5,170
      
5,253
  
Compensation payable
    
11,144
      
14,464
  
Securities sold, not yet purchased
    
129
      
-
  
Payable to affiliates
    
31,029
      
55,011
  
Accrued expenses and other liabilities
    
5,579
      
5,914
  
Liabilities of discontinued operations
    
-
      
52,438
  
  Sub-total
    
53,063
      
133,092
  
                 
AC 4% PIK Note (due November 30, 2020)
    
250,000
      
-
  
Loan from GGCP (due December 28, 2016)
    
35,000
      
-
  
5.875% Senior notes (due June 1, 2021)
    
24,225
      
100,000
  
Zero coupon subordinated debentures, Face value: $0.0 million at December 31, 2015 and
                
  $13.1 million at December 31, 2014 (matured on December 31, 2015)
    
-
      
12,163
  
  Total liabilities
    
362,288
      
245,255
  
                 
Redeemable noncontrolling interests from discontinued operations
    
-
      
63,632
  
                 
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; 15,422,901 and 15,341,433
          
    shares issued, respectively; 10,664,107 and 6,616,212 shares outstanding, respectively
    
14
      
14
  
  Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 24,000,000 shares issued
                
    and 19,156,792 and 19,239,260 shares outstanding, respectively
    
19
      
19
  
    Additional paid-in capital
    
345
      
292,250
  
    Retained earnings (deficit)
    
(43,480
)
    
603,032
  
    Accumulated comprehensive income
    
9,267
      
24,072
  
  Treasury stock, at cost (4,758,794 and 8,725,221 shares, respectively)
    
(251,596
)
    
(394,617
)
Total equity
    
(285,431
)
    
524,770
  
Total liabilities and equity
  
$
76,857
    
$
833,657
  
                 
 
 
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Parent company only)
(In thousands)

   
Year Ended December 31,
  
   
2015
    
2014
    
2013
  
Operating activities
            
Net income
  
$
83,412
    
$
109,390
    
$
116,853
  
Loss/(income) from discontinued operations, net of taxes
    
3,938
      
(2,037
)
    
(24,875
)
Income from continuing operations
    
87,350
      
107,353
      
91,978
  
 Adjustments to reconcile net income to net cash provided by
                        
    operating activities:
                        
  Depreciation and amortization
    
595
      
589
      
669
  
  Stock based compensation expense
    
9,868
      
5,278
      
1,562
  
  Tax benefit from exercise of stock options
    
102
      
349
      
16
  
  Donated securities
    
1,945
      
1,486
      
1,893
  
  Gains on sales of available for sale securities
    
(6
)
    
(587
)
    
(1,324
)
  Accretion of zero coupon debentures
    
628
      
885
      
1,253
  
  Loss on extinguishment of debt
    
1,067
      
84
      
998
  
(Increase) decrease in assets:
                        
  Investment in subsidiaries
    
(69,963
)
    
19,448
      
4,908
  
  Receivable from affiliates
    
38,758
      
4,310
      
(6,672
)
  Receivable from brokers
    
976
      
(983
)
    
(628
)
  Income tax receivable and deferred tax assets
    
29,164
      
(7,544
)
    
(1,394
)
  Other assets
    
(478
)
    
345
      
189
  
Increase (decrease) in liabilities:
                        
  Payable to affiliates
    
31,017
      
(228
)
    
770
  
  Payable to brokers
    
(539
)
    
(752
)
    
763
  
  Income taxes payable and deferred tax liabilities
    
3,920
      
1,611
      
(4,040
)
  Compensation payable
    
(3,319
)
    
11,541
      
10,902
  
  Accrued expenses and other liabilities
    
(424
)
    
(5,581
)
    
5,894
  
Total adjustments
    
43,311
      
30,251
      
15,759
  
Net cash provided by operating activities from continuing operations
  
$
130,661
    
$
137,604
    
$
107,737
  
                         
 
GAMCO INVESTORS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Parent company only)
(In thousands)

   
Year Ended December 31,
  
   
2015
    
2014
    
2013
  
Investing activities
            
Purchases of available for sale securities
  
$
(6,279
)
  
$
(5,024
)
  
$
(4,398
)
Proceeds from sales of available for sale securities
    
81
      
3,877
      
5,262
  
Net cash provided by/(used in) investing activities from continuing operations
    
(6,198
)
    
(1,147
)
    
864
  
                         
Financing activities
                        
Repayment of 5.5% senior note due May 15, 2013
    
-
      
-
      
(99,000
)
Repurchase of Zero coupon subordinated debentures due December 31, 2015
    
(13,101
)
    
(716
)
    
(7,705
)
Repurchase of 5.875% Senior note due June 1, 2021
    
(76,533
)
    
-
      
-
  
Loan from GGCP due December 28, 2016
    
35,000
      
-
      
-
  
Dividends paid by subsidiaries to GBL
    
164,000
      
101,000
      
62,000
  
Net transfer to/(from) AC
    
(196,297
)
    
(193,021
)
    
(30,785
)
Proceeds from exercise of stock options
    
1,167
      
1,637
      
76
  
Dividends paid
    
(7,468
)
    
(12,618
)
    
(18,419
)
Purchase of treasury stock
    
(27,249
)
    
(32,739
)
    
(14,768
)
Net cash used in financing activities from continuing operations
    
(120,481
)
    
(136,457
)
    
(108,601
)
Cash flows of discontinued operations
                        
  Net cash provided by/(used in) operating activities
    
82,759
      
(66,053
)
    
(6,475
)
  Net cash provided by/(used in) investing activities
    
(35,216
)
    
3,900
      
29,234
  
  Net cash provided by/(used in) financing activities
    
(47,543
)
    
62,153
      
(22,759
)
Net cash provided by/(used in) discontinued operations
    
-
      
-
      
-
  
Net increase in cash and cash equivalents
    
3,982
      
-
      
-
  
                         
Cash and cash equivalents at beginning of period
    
-
      
-
      
-
  
Cash and cash equivalents at end of period
  
$
3,982
    
$
-
    
$
-
  
Supplemental disclosures of cash flow information:
                        
Cash paid for interest
  
$
6,282
    
$
5,936
    
$
8,654
  
Cash paid for taxes
  
$
58,353
    
$
69,287
    
$
51,729