Delaware
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1-14761
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13-4007862
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(State or Other Jurisdiction
of Incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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191 Mason Street, Greenwich, CT
One Corporate Center, Rye, NY
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06830
10580
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Class A Common Stock, $0.001 par value
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GBL
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New York Stock Exchange
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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Exhibit
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Number
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Description
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GAMCO's Press Release, dated November 6, 2020
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For Immediate Release:
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Contact:
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Howard Green
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SVP of Corporate Development
(914) 921-7729
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For further information please visit
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www.gabelli.com
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-
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Third quarter net income was $16.4 million vs. $13.6 million a year ago
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-
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Fully diluted third quarter earnings were $0.62 per share versus $0.50 per share a year ago
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-
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September 30, 2020 AUM was $29.7 billion versus June 30, 2020 AUM of $29.4 billion
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Financial Highlights (Unaudited)
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||||||||
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Three Months Ended
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|||||||
(In thousands, except per share data)
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September 30, 2020
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September 30, 2019
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||||||
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||||||||
U.S. GAAP Basis
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||||||||
Revenues
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$
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61,252
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$
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75,345
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||||
Operating income
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31,842
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29,568
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||||||
Net income
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16,435
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13,626
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||||||
Diluted earnings per common share
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$
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0.62
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$
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0.50
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||||
Weighted average diluted shares outstanding
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26,613
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27,093
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||||||
Shares outstanding
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27,485
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27,548
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||||||
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||||||||
Assets Under Management
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||||||||
AUM - average (in millions)
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$
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30,326
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$
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35,997
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||||
AUM - end of period (in millions)
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29,692
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35,692
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-
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Total revenues for the third quarter of 2020 were $61.3 million compared with $75.3 million in the third quarter of 2019.
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-
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Investment advisory fees were $54.9 million in the third quarter of 2020 versus $67.0 million in the third quarter of 2019:
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-
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Gabelli Funds’ revenues were $38.9 million compared to $43.8 million in the third quarter of 2019.
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-
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Institutional and Private Wealth Management revenues, which are generally billed on portfolio values at the beginning of the quarter, were $14.8 million compared to $21.5 million in the year
ago quarter.
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-
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SICAV revenues were $1.2 million versus $1.7 million in last year’s third quarter.
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-
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Distribution fees from our equity mutual funds and other income were $6.4 million for the quarter versus $8.3 million in 2019.
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-
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The COVID-19 pandemic has had no material impact on our operations, including our financial reporting systems, internal control over financial reporting, and disclosure controls and
procedures. There has been no material challenge in implementing our business continuity plan. From July 1st to December 31st, GAMCO is paying all teammate health care premiums.
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-
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On August 10th, we announced that its Board of Directors approved a $0.25 per share shareholder designated charitable contribution.
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-
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On August 24th, we hosted our 26th Annual Aerospace & Defense Symposium via webcast. The timely conference featured presentations by leading companies.
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-
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Subsequently, on October 19th, we announced that the first of nine ETFs, the Love Our Planet & People (“LOPP”), an actively managed fund that focuses on environmental issues,
is set to launch in November. This Fund reflects the GAMCO team’s belief that “our planet and people” are essential to the future of Planet Earth.
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-
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On November 2nd and 3rd, the 44th Annual Auto Symposium hosted virtual presentations from leading automotive companies underscoring industry dynamics with a
focus this year on batteries for hybrid and electric vehicles.
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-
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On November 13th, the 2nd Annual Healthcare Symposium will be hosted by Gabelli Funds and the Columbia Business School to discuss today’s pressing healthcare issues,
including vaccines and therapeutics to treat COVID-19, health policy and reimbursement trends, and healthcare delivery in a virtual world.
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1 Year |
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5 Years |
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10 Years |
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Benchmark |
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Gabelli Growth Fund (AAA) |
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37.12% |
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20.07% |
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16.07% |
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Russell 1000 Growth Index |
Gabelli Global Growth Fund (AAA) |
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32.72% |
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16.62% |
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13.16% |
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MSCI AC World Index |
Gabelli Gold Fund (AAA) |
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53.57% |
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22.31% |
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-0.92% |
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Phil. Gold and Silver |
Teton Convertible Securities Fund (AAA) |
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15.80% |
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11.89% |
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9.94% |
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S&P 500 |
Russell 1000 Growth Index |
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37.53% |
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20.10% |
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17.25% |
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S&P 500 Index |
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15.15% |
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14.15% |
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13.74% |
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MSCI AC World Index |
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10.44% |
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10.30% |
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8.55% |
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Philadelphia Gold and Silver Index |
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63.00% |
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26.27% |
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-2.01% |
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Fund
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|||||||||||||||||||
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Market
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distributions,
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||||||||||||||||||
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June 30,
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appreciation/
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Net cash
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net of
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September 30,
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|||||||||||||||
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2020
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(depreciation)
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flows
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reinvestments
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2020
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|||||||||||||||
Equities:
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||||||||||||||||||||
Mutual Funds
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$
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8,651
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$
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527
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$
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(313
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)
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$
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(10
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)
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$
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8,855
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||||||||
Closed-end Funds
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6,859
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423
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(142
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)
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(123
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)
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7,017
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|||||||||||||
Institutional & PWM (a)
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10,455
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632
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(548
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)
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-
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10,539
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||||||||||||||
SICAV
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451
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27
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(41
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)
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-
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437
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||||||||||||||
Total Equities
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26,416
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1,609
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(1,044
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)
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(133
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)
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26,848
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|||||||||||||
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||||||||||||||||||||
100% U.S. Treasury Fund
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2,921
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-
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(99
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)
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-
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2,822
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||||||||||||||
Institutional & PWM Fixed Income
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19
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-
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3
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-
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22
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|||||||||||||||
Total Treasuries & Fixed Income
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2,940
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-
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(96
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)
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-
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2,844
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||||||||||||||
Total Assets Under Management
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$
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29,356
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$
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1,609
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$
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(1,140
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)
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$
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(133
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)
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$
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29,692
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||||||||
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||||||||||||||||||||
(a) Includes $252 and $196 of 100% U.S. Treasury Fund AUM at June 30, 2020 and September 30, 2020, respectively.
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Table II
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||||||||||||||||
GAMCO INVESTORS, INC.
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||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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||||||||||||||||
(In thousands, except per share data)
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||||||||||||||||
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||||||||||||||||
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Three Months Ended
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Nine Months Ended
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||||||||||||||
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September 30
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September 30
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||||||||||||||
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2020
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2019
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2020
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2019
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||||||||||||
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||||||||||||||||
Investment advisory and incentive fees
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$
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54,894
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$
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67,015
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$
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168,637
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$
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200,893
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||||||||
Distribution fees and other income
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6,358
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8,330
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19,741
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25,195
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||||||||||||
Total revenues
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61,252
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75,345
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188,378
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226,088
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||||||||||||
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||||||||||||||||
Compensation costs (a)
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17,722
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29,800
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72,488
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90,363
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||||||||||||
Management fee expense (a)
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-
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2,144
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3,725
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8,302
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||||||||||||
Distribution costs
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6,994
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8,271
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21,258
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25,546
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||||||||||||
Other operating expenses
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4,694
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5,562
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14,982
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16,936
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||||||||||||
Total expenses
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29,410
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45,777
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112,453
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141,147
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||||||||||||
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||||||||||||||||
Operating income
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31,842
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29,568
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75,925
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84,941
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||||||||||||
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||||||||||||||||
Investment income / (loss)
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(3,092
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)
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(5,718
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)
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(12,361
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)
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(910
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)
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||||||||
Interest expense
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(691
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)
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(652
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)
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(1,985
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)
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(1,962
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)
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Shareholder-designated contribution
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(5,436
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)
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(4,500
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)
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(5,436
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)
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(4,500
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)
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Non-operating income / (loss)
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(9,219
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)
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(10,870
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)
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(19,782
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)
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(7,372
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)
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||||||||
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||||||||||||||||
Income before income taxes
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22,623
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18,698
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56,143
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77,569
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||||||||||||
Provision for income taxes
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6,188
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5,072
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17,173
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20,034
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||||||||||||
Net income
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$
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16,435
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$
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13,626
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$
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38,970
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$
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57,535
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||||||||
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||||||||||||||||
Net income:
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Basic
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$
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0.62
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$
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0.50
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$
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1.46
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$
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2.08
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||||||||
Diluted
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$
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0.62
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$
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0.50
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$
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1.46
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$
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2.08
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||||||||
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||||||||||||||||
Weighted average shares outstanding:
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||||||||||||||||
Basic
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26,531
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26,987
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26,615
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27,612
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||||||||||||
Diluted
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26,613
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27,093
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26,679
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27,676
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||||||||||||
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||||||||||||||||
Actual shares outstanding (b)
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27,485
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27,548
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27,485
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27,548
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||||||||||||
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||||||||||||||||
(a) The CEO waiver reduced compensation costs by $8,546, $3,678, $8,546, and $15,856, respectively
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||||||||||||||||
and management fee expense by $1,408, $602, $1,408, and $2,291, respectively.
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(b) Includes 1,020 RSA shares at September 30, 2020 and 674 RSA shares at September 30, 2019.
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GAMCO INVESTORS, INC.
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||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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||||||||||||
(In thousands, except per share data)
|
||||||||||||
|
||||||||||||
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September 30,
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December 31,
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September 30,
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|||||||||
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2020
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2019
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2019
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|||||||||
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||||||||||||
ASSETS
|
||||||||||||
Cash, cash equivalents, and U.S. Treasury Bills
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$
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125,242
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$
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86,136
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$
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86,179
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||||||
Investments in securities
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15,071
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34,273
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32,322
|
|||||||||
Receivable from brokers
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5,688
|
989
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4,574
|
|||||||||
Other receivables
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23,232
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41,557
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28,896
|
|||||||||
Deferred tax asset and income tax receivable
|
10,608
|
16,389
|
17,305
|
|||||||||
Other assets
|
11,318
|
10,542
|
10,219
|
|||||||||
Total assets
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$
|
191,159
|
$
|
189,886
|
$
|
179,495
|
||||||
|
||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||
Payable to brokers
|
$
|
-
|
$
|
-
|
$
|
3
|
||||||
Income taxes payable and deferred tax liabilities
|
360
|
757
|
2,314
|
|||||||||
Compensation payable
|
32,094
|
64,279
|
79,841
|
|||||||||
Accrued expenses and other liabilities
|
42,766
|
45,942
|
40,433
|
|||||||||
Sub-total
|
75,220
|
110,978
|
122,591
|
|||||||||
5.875% Senior Notes (due June 1, 2021)
|
24,209
|
24,191
|
24,186
|
|||||||||
Total liabilities
|
99,429
|
135,169
|
146,777
|
|||||||||
|
||||||||||||
Stockholders' equity (a)
|
91,730
|
54,717
|
32,718
|
|||||||||
|
||||||||||||
Total liabilities and stockholders' equity
|
$
|
191,159
|
$
|
189,886
|
$
|
179,495
|
||||||
|
||||||||||||
(a) Shares outstanding of 27,485, 27,380, and 27,548, respectively.
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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
|
||||
(Unaudited)
(In thousands, except per share data)
|
September 30, 2019
|
|||
|
||||
Net income, U.S. GAAP basis
|
$
|
13,626
|
||
Impact of DCCAs on expenses and taxes (a):
|
||||
Compensation costs
|
2,568
|
|||
Management fee expense
|
1,030
|
|||
Provision for income taxes
|
(864
|
)
|
||
Total impact of DCCAs on expenses and taxes
|
2,734
|
|||
Net income, as adjusted
|
$
|
16,360
|
||
|
||||
Per fully diluted share:
|
||||
Net income, U.S. GAAP basis
|
$
|
0.50
|
||
Impact of DCCAs
|
$
|
0.10
|
||
Net income, as adjusted
|
$
|
0.60
|
||
|
||||
(a) The non-GAAP adjustments relate to multiple DCCAs.
|