QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of Registrant as specified in its charter) |
||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
|
One Corporate Center, Rye, NY 10580 |
( |
|
(Address of principle executive offices)(Zip Code) |
Registrant’s telephone number, including area code |
|
N/A |
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class |
Trading Symbol |
Name of each exchange on which registered |
||
Large accelerated filer |
||
Non-accelerated filer |
Smaller reporting company |
Emerging growth company |
Class |
Outstanding at July 31, 2021 |
|
Class A Common Stock, $0.001 par value |
(Including 958,470 restricted stock awards) |
|
Class B Common Stock, $0.001 par value |
||
In addition, there are 394,800 Phantom Restricted Stock Awards outstanding as of July 31, 2021. |
INDEX |
||
PART I. |
FINANCIAL INFORMATION |
Page |
Item 1. |
Unaudited Condensed Consolidated Financial Statements |
|
Condensed Consolidated Statements of Financial Condition as of June 30, 2021 (unaudited) and December 31, 2020 |
3 |
|
Condensed Consolidated Statements of Income for the three and six months ended June 30, 2021 and 2020 (unaudited) |
4 |
|
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2021 and 2020 (unaudited) |
5 |
|
Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2021 and 2020 (unaudited) |
6 |
|
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 (unaudited) |
7 |
|
Notes to Condensed Consolidated Financial Statements (unaudited) |
8 |
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
19 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
29 |
Item 4. |
Controls and Procedures |
30 |
PART II. |
OTHER INFORMATION * |
|
Item 1. |
Legal Proceedings |
31 |
Item 1A. |
Risk Factors |
31 |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
31 |
Item 6. |
Exhibits |
32 |
Signature |
32 |
June 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
ASSETS |
||||||||
Cash and cash equivalents (a) |
$ |
$ |
||||||
Short-term investments in U.S. Treasury Bills |
||||||||
Investments in securities, at fair value |
||||||||
Receivable from brokers |
||||||||
Investment advisory fees receivable |
||||||||
Receivable from affiliates |
||||||||
Goodwill and identifiable intangible assets |
||||||||
Deferred tax asset and income tax receivable |
||||||||
Other assets |
||||||||
Total assets |
$ |
$ |
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Income taxes payable |
$ |
$ |
||||||
Lease liability obligations |
||||||||
Compensation payable |
||||||||
Securities sold, not yet purchased |
||||||||
Payable to affiliates |
||||||||
Accrued expenses and other liabilities |
||||||||
Sub-total |
||||||||
Subordinated Notes (net of issuance costs of $ |
||||||||
Total liabilities |
||||||||
Commitments and contingencies (Note 10) |
||||||||
Stockholders’ Equity |
||||||||
Preferred stock, $ |
||||||||
Class A Common Stock, $ |
||||||||
Class B Common Stock, $ |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) |
( |
) |
||||
Treasury stock, at cost ( |
( |
) |
( |
) |
||||
Total stockholders’ equity |
||||||||
Total liabilities and stockholders’ equity |
$ |
$ |
(a) |
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenues: |
||||||||||||||||
Investment advisory and incentive fees |
$ |
$ |
$ |
$ |
||||||||||||
Distribution fees and other income |
||||||||||||||||
Total revenues |
||||||||||||||||
Expenses: |
||||||||||||||||
Compensation |
||||||||||||||||
Management fee |
||||||||||||||||
Distribution costs |
||||||||||||||||
Other operating expenses |
||||||||||||||||
Total expenses |
||||||||||||||||
Operating income |
||||||||||||||||
Non-operating income / (loss) |
||||||||||||||||
Gain / (loss) from investments, net |
( |
) |
||||||||||||||
Interest and dividend income |
||||||||||||||||
Interest expense |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Total non-operating income / (loss) |
( |
) |
( |
) |
||||||||||||
Income before income taxes |
||||||||||||||||
Provision for income taxes |
||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ |
$ |
$ |
$ |
||||||||||||
Diluted |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Other comprehensive income / (loss): |
||||||||||||||||
Foreign currency translation gain / (loss) |
( |
) |
( |
) |
||||||||||||
Total comprehensive income |
$ |
$ |
$ |
$ |
Accumulated |
||||||||||||||||||||||||
Additional |
Other |
|||||||||||||||||||||||
Common |
Paid-in |
Retained |
Comprehensive |
Treasury |
||||||||||||||||||||
Stock |
Capital |
Earnings |
Loss |
Stock |
Total |
|||||||||||||||||||
Balance at December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||
Net income |
||||||||||||||||||||||||
Foreign currency translation |
||||||||||||||||||||||||
Dividends declared ($ |
( |
) |
( |
) |
||||||||||||||||||||
Stock based compensation expense |
||||||||||||||||||||||||
Purchase of treasury stock |
( |
) |
( |
) |
||||||||||||||||||||
Balance at March 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||
Net income |
||||||||||||||||||||||||
Foreign currency translation |
||||||||||||||||||||||||
Dividends declared ($ |
( |
) |
( |
) |
||||||||||||||||||||
Stock based compensation expense |
||||||||||||||||||||||||
Purchase of treasury stock |
( |
) |
( |
) |
||||||||||||||||||||
Balance at June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
Accumulated |
||||||||||||||||||||||||
Additional |
Other |
|||||||||||||||||||||||
Common |
Paid-in |
Retained |
Comprehensive |
Treasury |
||||||||||||||||||||
Stock |
Capital |
Earnings |
Loss |
Stock |
Total |
|||||||||||||||||||
Balance at December 31, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||
Net income |
||||||||||||||||||||||||
Foreign currency translation |
( |
) |
( |
) |
||||||||||||||||||||
Dividends declared ($ |
( |
) |
( |
) |
||||||||||||||||||||
Stock based compensation expense |
||||||||||||||||||||||||
Purchase of treasury stock |
( |
) |
( |
) |
||||||||||||||||||||
Balance at March 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||
Net income |
||||||||||||||||||||||||
Foreign currency translation |
( |
) |
( |
) |
||||||||||||||||||||
Dividends declared ($ |
( |
) |
( |
) |
||||||||||||||||||||
Stock based compensation expense |
||||||||||||||||||||||||
Purchase of treasury stock |
( |
) |
( |
) |
||||||||||||||||||||
Balance at June 30, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
Six Months Ended |
||||||||
June 30, |
||||||||
2021 |
2020 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
$ |
||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
||||||||
Accretion of discounts and amortization of premiums |
( |
) |
||||||
Stock based compensation expense |
||||||||
Deferred income taxes |
||||||||
Foreign currency translation gain / (loss) |
( |
) |
||||||
Cost basis of donated securities |
||||||||
Unrealized (gains) / losses on securities |
( |
) |
||||||
Net realized losses on securities |
||||||||
Impairment charge on intangible asset |
||||||||
(Increase) decrease in assets: |
||||||||
Investments in securities |
( |
) |
||||||
Receivable from brokers |
( |
) |
||||||
Investment advisory fees receivable |
||||||||
Receivable from affiliates |
||||||||
Income taxes receivable |
( |
) |
||||||
Other assets |
( |
) |
||||||
Increase (decrease) in liabilities: |
||||||||
Payable to brokers |
||||||||
Income taxes payable |
( |
) |
||||||
Compensation payable |
( |
) |
||||||
Payable to affiliates |
( |
) |
( |
) |
||||
Accrued expenses and other liabilities |
( |
) |
( |
) |
||||
Total adjustments |
( |
) |
||||||
Net cash provided by operating activities |
||||||||
Cash flows from investing activities: |
||||||||
Purchases of securities |
( |
) |
( |
) |
||||
Proceeds from sales and maturities of securities |
||||||||
Return of capital on securities |
||||||||
Net cash provided by / (used in) investing activities |
( |
) |
||||||
Cash flows from financing activities: |
||||||||
Maturity of |
( |
) |
||||||
Dividends paid |
( |
) |
( |
) |
||||
Purchase of treasury stock |
( |
) |
( |
) |
||||
Repayment of principal portion of lease liability |
( |
) |
( |
) |
||||
Net cash used in financing activities |
( |
) |
( |
) |
||||
Effect of exchange rates on cash and cash equivalents |
( |
) |
||||||
Net increase / (decrease) in cash and cash equivalents |
( |
) |
||||||
Cash and cash equivalents, beginning of period |
||||||||
Cash and cash equivalents, end of period |
$ |
$ |
||||||
Supplemental disclosures of cash flow information: |
||||||||
Cash paid for interest |
$ |
$ |
||||||
Cash paid for taxes |
$ |
$ |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Investment advisory and incentive fees: |
||||||||||||||||
Mutual Funds |
$ |
$ |
$ |
$ |
||||||||||||
Closed-end Funds |
||||||||||||||||
Sub-advisory accounts |
||||||||||||||||
Institutional & PWM |
||||||||||||||||
SICAV |
||||||||||||||||
Performance-based |
||||||||||||||||
Distribution fees and other income |
||||||||||||||||
Total revenues |
$ |
$ |
$ |
$ |
June 30, 2021 |
December 31, 2020 |
|||||||||||||||
Cost |
Estimated Fair Value |
Cost |
Estimated Fair Value |
|||||||||||||
Investments in equity securities and funds: |
||||||||||||||||
Common stocks |
$ |
$ |
$ |
$ |
||||||||||||
Open-end funds |
||||||||||||||||
Actively managed semi-transparent ETFs |
||||||||||||||||
Closed-end Funds |
||||||||||||||||
Other |
||||||||||||||||
Total investments in equity securities and funds |
$ |
$ |
$ |
$ |
December 31, 2020 |
||||||||||||||||
Amortized Cost |
Gross Unrecognized Holding Gains |
Gross Unrecognized Holding Losses |
Estimated Fair Value |
|||||||||||||
Short-term investments in U.S. Treasury Bills: |
||||||||||||||||
U.S. Treasury Bills |
$ |
$ |
$ |
$ |
||||||||||||
Total short-term investments in U.S. Treasury Bills |
$ |
$ |
$ |
$ |
June 30, 2021 |
December 31, 2020 |
|||||||||||||||
Cost |
Estimated Fair Value |
Cost |
Estimated Fair Value |
|||||||||||||
Investments in equity securities: |
||||||||||||||||
Common stocks |
$ |
$ |
$ |
$ |
||||||||||||
Total securities sold, not yet purchased |
$ |
$ |
$ |
$ |
- |
Level 1 - the valuation methodology utilizes quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. Level 1 assets include cash equivalents, government obligations, mutual funds, closed-end funds, and listed equities. |
- |
Level 2 - the valuation methodology utilizes 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. |
- |
Level 3 - the valuation methodology utilizes unobservable inputs for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability. |
Assets |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Balance as of June 30, 2021 |
||||||||||||
Cash equivalents |
$ |
$ |
$ |
$ |
||||||||||||
Investments in securities: |
||||||||||||||||
Common stocks |
||||||||||||||||
Open-end Funds |
||||||||||||||||
Actively managed semi-transparent ETFs |
||||||||||||||||
Closed-end Funds |
||||||||||||||||
Other |
||||||||||||||||
Total investments in securities |
||||||||||||||||
Total assets at fair value |
$ |
$ |
$ |
$ |
Assets |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Balance as of December 31, 2020 |
||||||||||||
Cash equivalents |
$ |
$ |
$ |
$ |
||||||||||||
Investments in securities: |
||||||||||||||||
Common stocks |
||||||||||||||||
Open-end Funds |
||||||||||||||||
Closed-end Funds |
||||||||||||||||
Total investments in securities |
||||||||||||||||
Total assets at fair value |
$ |
$ |
$ |
$ |
||||||||||||
Liabilities |
||||||||||||||||
Securities sold, not yet purchased: |
||||||||||||||||
Trading - Common stocks |
$ |
$ |
$ |
$ |
||||||||||||
Total securities sold, not yet purchased |
$ |
$ |
$ |
$ |
June 30, 2021 |
December 31, 2020 |
|||||||||||||||
Carrying Value |
Fair Value Level 1 |
Carrying Value |
Fair Value Level 1 |
|||||||||||||
U.S. Treasury Bills |
$ |
$ |
$ |
$ |
||||||||||||
Total |
$ |
$ |
$ |
$ |
June 30, 2021 |
December 31, 2020 |
|||||||||||||||
Carrying Value |
Fair Value Level 2 |
Carrying Value |
Fair Value Level 2 |
|||||||||||||
$ |
$ |
$ |
$ |
|||||||||||||
Subordinated Notes |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Basic: |
||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic net income per share |
$ |
$ |
$ |
$ |
||||||||||||
Diluted: |
||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Restricted stock awards |
||||||||||||||||
Total |
||||||||||||||||
Diluted net income per share |
$ |
$ |
$ |
$ |
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Finance lease cost - interest expense |
$ |
$ |
$ |
$ |
||||||||||||
Finance lease cost - amortization of right-of-use asset |
||||||||||||||||
Operating lease cost |
||||||||||||||||
Sublease income |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Total lease cost |
$ |
$ |
$ |
$ |
||||||||||||
Other information: |
||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities |
||||||||||||||||
Operating cash flows from finance lease |
$ |
$ |
$ |
$ |
||||||||||||
Operating cash flows from operating leases |
||||||||||||||||
Financing cash flows from finance lease |
||||||||||||||||
Total cash paid for amounts included in the measurement of lease liabilities |
$ |
$ |
$ |
$ |
||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average remaining lease term—finance lease (years) |
||||||||||||||||
Weighted average remaining lease term—operating leases (years) |
||||||||||||||||
Weighted average discount rate—finance lease |
% |
% |
% |
% |
||||||||||||
Weighted average discount rate—operating leases |
% |
% |
% |
% |
Year ending December 31, |
Finance Leases |
Operating Leases |
Total Leases |
|||||||||
2021 (excluding the six months ended June 30, 2021) |
$ |
$ |
$ |
|||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
Thereafter |
||||||||||||
Total lease payments |
$ |
$ |
$ |
|||||||||
Less imputed interest |
( |
) |
( |
) |
( |
) |
||||||
Total lease liabilities |
$ |
$ |
$ |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Equities: |
||||||||||||||||
Mutual Funds |
||||||||||||||||
Beginning of period assets |
$ |
9,825 |
$ |
7,798 |
$ |
9,541 |
$ |
10,481 |
||||||||
Market appreciation (depreciation) |
539 |
1,171 |
1,083 |
(973 |
) |
|||||||||||
Net flows |
(154 |
) |
(310 |
) |
(410 |
) |
(841 |
) |
||||||||
Fund distributions, net of reinvestment |
(4 |
) |
(8 |
) |
(8 |
) |
(16 |
) |
||||||||
End of period assets |
$ |
10,206 |
$ |
8,651 |
$ |
10,206 |
$ |
8,651 |
||||||||
Closed-end Funds |
||||||||||||||||
Beginning of period assets |
$ |
8,100 |
$ |
6,084 |
$ |
7,773 |
$ |
8,005 |
||||||||
Market appreciation (depreciation) |
483 |
1,005 |
947 |
(718 |
) |
|||||||||||
Net flows |
38 |
(97 |
) |
21 |
(161 |
) |
||||||||||
Fund distributions, net of reinvestment |
(122 |
) |
(133 |
) |
(242 |
) |
(267 |
) |
||||||||
End of period assets |
$ |
8,499 |
$ |
6,859 |
$ |
8,499 |
$ |
6,859 |
||||||||
Institutional & PWM |
||||||||||||||||
Beginning of period assets |
$ |
13,145 |
$ |
10,185 |
$ |
12,371 |
$ |
14,565 |
||||||||
Market appreciation (depreciation) |
668 |
1,518 |
2,145 |
(2,443 |
) |
|||||||||||
Net flows |
(223 |
) |
(1,248 |
) |
(926 |
) |
(1,667 |
) |
||||||||
End of period assets (a) |
$ |
13,590 |
$ |
10,455 |
$ |
13,590 |
$ |
10,455 |
||||||||
SICAV |
||||||||||||||||
Beginning of period assets |
$ |
582 |
$ |
480 |
$ |
474 |
$ |
594 |
||||||||
Market appreciation (depreciation) |
18 |
37 |
14 |
(20 |
) |
|||||||||||
Net flows |
65 |
(66 |
) |
177 |
(123 |
) |
||||||||||
End of period assets |
$ |
665 |
$ |
451 |
$ |
665 |
$ |
451 |
||||||||
Total Equities |
||||||||||||||||
Beginning of period assets |
$ |
31,652 |
$ |
24,547 |
$ |
30,159 |
$ |
33,645 |
||||||||
Market appreciation (depreciation) |
1,708 |
3,731 |
4,189 |
(4,154 |
) |
|||||||||||
Net flows |
(274 |
) |
(1,721 |
) |
(1,138 |
) |
(2,792 |
) |
||||||||
Fund distributions, net of reinvestment |
(126 |
) |
(141 |
) |
(250 |
) |
(283 |
) |
||||||||
End of period assets |
$ |
32,960 |
$ |
26,416 |
$ |
32,960 |
$ |
26,416 |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Fixed Income: |
||||||||||||||||
100% U.S. Treasury fund |
||||||||||||||||
Beginning of period assets |
$ |
1,725 |
$ |
2,938 |
$ |
2,370 |
$ |
2,810 |
||||||||
Market appreciation (depreciation) |
- |
4 |
- |
14 |
||||||||||||
Net flows |
(92 |
) |
(21 |
) |
(737 |
) |
97 |
|||||||||
End of period assets |
$ |
1,633 |
$ |
2,921 |
$ |
1,633 |
$ |
2,921 |
||||||||
Institutional & PWM |
||||||||||||||||
Beginning of period assets |
$ |
32 |
$ |
20 |
$ |
32 |
$ |
20 |
||||||||
Market appreciation (depreciation) |
- |
- |
- |
- |
||||||||||||
Net flows |
- |
(1 |
) |
- |
(1 |
) |
||||||||||
End of period assets |
$ |
32 |
$ |
19 |
$ |
32 |
$ |
19 |
||||||||
Total Fixed Income |
||||||||||||||||
Beginning of period assets |
$ |
1,757 |
$ |
2,958 |
$ |
2,402 |
$ |
2,830 |
||||||||
Market appreciation (depreciation) |
- |
4 |
- |
14 |
||||||||||||
Net flows |
(92 |
) |
(22 |
) |
(737 |
) |
96 |
|||||||||
End of period assets |
$ |
1,665 |
$ |
2,940 |
$ |
1,665 |
$ |
2,940 |
||||||||
Total AUM |
||||||||||||||||
Beginning of period assets |
$ |
33,409 |
$ |
27,505 |
$ |
32,561 |
$ |
36,475 |
||||||||
Market appreciation (depreciation) |
1,708 |
3,735 |
4,189 |
(4,140 |
) |
|||||||||||
Net flows |
(366 |
) |
(1,743 |
) |
(1,875 |
) |
(2,696 |
) |
||||||||
Fund distributions, net of reinvestment |
(126 |
) |
(141 |
) |
(250 |
) |
(283 |
) |
||||||||
End of period assets |
$ |
34,625 |
$ |
29,356 |
$ |
34,625 |
$ |
29,356 |
Funds |
Institutional & PWM |
SICAV |
Total |
|||||||||||||
Value |
$ |
5,212 |
$ |
8,211 |
$ |
17 |
$ |
13,440 |
||||||||
Utilities |
2,569 |
- |
- |
2,569 |
||||||||||||
100% U.S. Treasury Fund |
1,632 |
- |
- |
1,632 |
||||||||||||
Growth |
1,080 |
471 |
- |
1,551 |
||||||||||||
Convertibles |
669 |
79 |
8 |
756 |
||||||||||||
Gold |
396 |
- |
- |
396 |
||||||||||||
Other |
8,780 |
4,861 |
640 |
14,281 |
||||||||||||
Total |
$ |
20,338 |
$ |
13,622 |
$ |
665 |
$ |
34,625 |
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenues |
||||||||||||||||
Investment advisory and incentive fees |
$ |
68,885 |
$ |
51,470 |
$ |
130,355 |
$ |
113,743 |
||||||||
Distribution fees and other income |
6,739 |
6,089 |
13,197 |
13,383 |
||||||||||||
Total revenues |
75,624 |
57,559 |
143,552 |
127,126 |
||||||||||||
Expenses |
||||||||||||||||
Compensation |
31,298 |
25,516 |
61,980 |
54,766 |
||||||||||||
Management fee |
3,035 |
2,060 |
5,552 |
3,725 |
||||||||||||
Distribution costs |
7,771 |
6,634 |
14,742 |
14,264 |
||||||||||||
Other operating expenses |
8,671 |
4,586 |
13,975 |
10,288 |
||||||||||||
Total expenses |
50,775 |
38,796 |
96,249 |
83,043 |
||||||||||||
Operating income |
24,849 |
18,763 |
47,303 |
44,083 |
||||||||||||
Non-operating income / (loss) |
||||||||||||||||
Gain / (loss) from investments, net |
2,986 |
309 |
3,666 |
(9,928 |
) |
|||||||||||
Interest and dividend income |
102 |
115 |
287 |
659 |
||||||||||||
Interest expense |
(625 |
) |
(647 |
) |
(1,287 |
) |
(1,294 |
) |
||||||||
Total non-operating income / (loss) |
2,463 |
(223 |
) |
2,666 |
(10,563 |
) |
||||||||||
Income before income taxes |
27,312 |
18,540 |
49,969 |
33,520 |
||||||||||||
Provision for income taxes |
10,211 |
7,250 |
16,918 |
10,985 |
||||||||||||
Net income |
$ |
17,101 |
$ |
11,290 |
$ |
33,051 |
$ |
22,535 |
||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ |
0.65 |
$ |
0.42 |
$ |
1.25 |
$ |
0.85 |
||||||||
Diluted |
$ |
0.64 |
$ |
0.42 |
$ |
1.24 |
$ |
0.84 |
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenues, U.S. GAAP basis |
$ |
75,624 |
$ |
57,559 |
$ |
143,552 |
$ |
127,126 |
||||||||
Operating income, U.S. GAAP basis |
24,849 |
18,763 |
47,303 |
44,083 |
||||||||||||
Add back: management fee expense |
3,035 |
2,060 |
5,552 |
3,725 |
||||||||||||
Operating income before management fee |
$ |
27,884 |
$ |
20,823 |
$ |
52,855 |
$ |
47,808 |
||||||||
Operating margin |
32.9 |
% |
32.6 |
% |
33.0 |
% |
34.7 |
% |
||||||||
Operating margin before management fee |
36.9 |
% |
36.2 |
% |
36.8 |
% |
37.6 |
% |
Number of RSUs |
Original VWAP |
Vesting Date VWAP |
Vesting Date |
Deferred Cash Compensation |
Impact of Indexing to GBL Stock Price |
Vesting Date Cash Payment |
|||||||||||||||||||
2016 DCCA |
2,314,695 |
$ |
32.8187 |
$ |
18.8812 |
1/2/2020 |
$ |
76.0 |
$ |
(32.3 |
) |
$ |
43.7 |
Mark to market by quarter (increase/(decrease)): |
EPS impact by quarter: |
|||||||||||||
2020 |
2020 |
|||||||||||||
Q1 |
$ |
(1,409 |
) |
Q1 |
$ |
0.04 |
||||||||
Q2 |
- |
Q2 |
- |
|||||||||||
Q3 |
- |
Q3 |
- |
|||||||||||
Q4 |
- |
Q4 |
- |
|||||||||||
Year |
$ |
(1,409 |
) |
Year |
$ |
0.04 |
Six Months Ended |
||||||||
June 30, |
||||||||
2021 |
2020 |
|||||||
Net income, U.S. GAAP basis |
$ |
33,051 |
$ |
22,535 |
||||
Impact of 2016 DCCA on expenses and taxes: |
||||||||
Compensation costs |
- |
(1,409 |
) |
|||||
Provision for income taxes |
- |
338 |
||||||
Total impact of 2016 DCCA |
- |
(1,071 |
) |
|||||
Net income, as adjusted |
$ |
33,051 |
$ |
21,464 |
||||
Per share (basic): |
||||||||
Net income, U.S. GAAP basis |
$ |
1.25 |
$ |
0.85 |
||||
Impact of DCCAs |
- |
(0.04 |
) |
|||||
Net income, as adjusted |
$ |
1.25 |
$ |
0.81 |
||||
Per fully diluted share: |
||||||||
Net income, U.S. GAAP basis |
$ |
1.24 |
$ |
0.84 |
||||
Impact of DCCAs |
- |
(0.04 |
) |
|||||
Net income, as adjusted |
$ |
1.24 |
$ |
0.80 |
Six months ended |
||||||||
June 30, |
||||||||
2021 |
2020 |
|||||||
Cash flows provided by/(used in) activities : |
||||||||
Operating activities |
$ |
54,327 |
$ |
20,954 |
||||
Investing activities |
61,840 |
(46,101 |
) |
|||||
Financing activities |
(31,296 |
) |
(2,887 |
) |
||||
Net increase / (decrease) in cash and cash equivalents from activities |
84,871 |
(28,034 |
) |
|||||
Effect of exchange rates on cash and cash equivalents |
(3 |
) |
15 |
|||||
Net increase / (decrease) in cash and cash equivalents |
84,868 |
(28,019 |
) |
|||||
Cash and cash equivalents, beginning of period |
33,325 |
86,136 |
||||||
Cash and cash equivalents, end of period |
$ |
118,193 |
$ |
58,117 |
||||
Short-term investments in U.S. Treasury Bills |
- |
49,963 |
||||||
Investments in fixed maturity securities |
- |
2,971 |
||||||
Cash, cash equivalents, short-term investments in U.S. Treasury Bills, and investments in fixed maturity securities |
$ |
118,193 |
$ |
111,051 |
(unaudited) |
Fair Value |
Fair Value assuming 10% decrease in equity prices |
Fair Value assuming 10% increase in equity prices |
|||||||||
At June 30, 2021: |
||||||||||||
Equity price sensitive investments, at fair value |
$ |
33,743 |
$ |
30,369 |
$ |
37,117 |
||||||
At December 31, 2020: |
||||||||||||
Equity price sensitive investments, at fair value |
$ |
25,845 |
$ |
23,261 |
$ |
28,430 |
Period |
Total Number of Shares Purchased (1) |
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) |
Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs |
||||||||||||
4/01/21 - 4/30/21 |
62,065 |
$ |
19.00 |
62,065 |
2,715,516 |
|||||||||||
5/01/21 - 5/31/21 |
12,800 |
24.43 |
12,800 |
2,702,716 |
||||||||||||
6/01/21 - 6/30/21 |
83,019 |
24.42 |
83,019 |
2,619,697 |
||||||||||||
Totals |
157,884 |
$ |
22.29 |
157,884 |
(1) | On trade date basis. |
Certification of CEO pursuant to Rule 13a-14(a). |
||
Certification of PFO pursuant to Rule 13a-14(a). |
||
Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
||
Certification of PFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002. |
||
101.INS |
Inline XBRL Instance Document |
|
101.SCH |
Inline XBRL Taxonomy Extension Schema Document. |
|
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
|
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document. |
|
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document. |
|
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
|
104 |
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
By: /s/ Kieran Caterina |
|
Name: Kieran Caterina |
|
Title: Principal Financial Officer |
|
Date: August 3, 2021 |
1.
|
I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
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
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
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 data; 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
|
Mario J. Gabelli
|
|
Chief Executive Officer
|
|
Date:
|
August 3, 2021
|
1.
|
I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
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
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
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 data; 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
|
Kieran Caterina
|
|
Principal Financial Officer
|
|
Date:
|
August 3, 2021
|
/s/ Kieran Caterina
|
|
|||
Name:
|
Kieran Caterina
|
|
|
|
Title:
|
Principal Financial Officer
|
|
|
|
Date:
|
August 3, 2021
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Stockholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, outstanding (in shares) | 27,200,000 | 27,500,000 |
Treasury stock, shares (in shares) | 8,397,694 | 8,142,732 |
Class A [Member] | ||
Stockholders' Equity | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 16,577,126 | 16,621,426 |
Common Stock, outstanding (in shares) | 8,179,432 | 8,478,694 |
Class B [Member] | ||
Stockholders' Equity | ||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common Stock, issued (in shares) | 24,000,000 | 24,000,000 |
Common Stock, outstanding (in shares) | 19,024,117 | 19,024,117 |
Subordinated Notes [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Debt issuance costs | $ 100 | |
Debt instrument, maturity date | Jun. 15, 2023 | |
5.875% Senior Notes [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Debt instrument, interest rate | 5.875% | 5.875% |
Debt issuance costs | $ 10 | |
Debt instrument, maturity date | Jun. 01, 2021 | |
U.S. Treasury Bills [Member] | ||
ASSETS | ||
Cash and cash equivalents | $ 110,500 | $ 15,000 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Revenues: | ||||
Total revenues | $ 75,624 | $ 57,559 | $ 143,552 | $ 127,126 |
Expenses: | ||||
Compensation | 31,298 | 25,516 | 61,980 | 54,766 |
Management fee | 3,035 | 2,060 | 5,552 | 3,725 |
Distribution costs | 7,771 | 6,634 | 14,742 | 14,264 |
Other operating expenses | 8,671 | 4,586 | 13,975 | 10,288 |
Total expenses | 50,775 | 38,796 | 96,249 | 83,043 |
Operating income | 24,849 | 18,763 | 47,303 | 44,083 |
Non-operating income / (loss) | ||||
Gain / (loss) from investments, net | 2,986 | 309 | 3,666 | (9,928) |
Interest and dividend income | 102 | 115 | 287 | 659 |
Interest expense | (625) | (647) | (1,287) | (1,294) |
Total non-operating income / (loss) | 2,463 | (223) | 2,666 | (10,563) |
Income before income taxes | 27,312 | 18,540 | 49,969 | 33,520 |
Provision for income taxes | 10,211 | 7,250 | 16,918 | 10,985 |
Net income | $ 17,101 | $ 11,290 | $ 33,051 | $ 22,535 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.65 | $ 0.42 | $ 1.25 | $ 0.85 |
Diluted (in dollars per share) | $ 0.64 | $ 0.42 | $ 1.24 | $ 0.84 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 26,316 | 26,629 | 26,354 | 26,658 |
Diluted (in shares) | 26,869 | 26,656 | 26,632 | 26,713 |
Investment Advisory and Incentive Fees [Member] | ||||
Revenues: | ||||
Total revenues | $ 68,885 | $ 51,470 | $ 130,355 | $ 113,743 |
Distribution Fees and Other Income [Member] | ||||
Revenues: | ||||
Total revenues | $ 6,739 | $ 6,089 | $ 13,197 | $ 13,383 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 17,101 | $ 11,290 | $ 33,051 | $ 22,535 |
Other comprehensive income / (loss): | ||||
Foreign currency translation gain / (loss) | 5 | (4) | 15 | (65) |
Total comprehensive income | $ 17,106 | $ 11,286 | $ 33,066 | $ 22,470 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Loss [Member] |
Treasury Stock [Member] |
Total |
---|---|---|---|---|---|---|
Balance at Dec. 31, 2019 | $ 33 | $ 17,033 | $ 362,515 | $ (204) | $ (324,660) | $ 54,717 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 11,245 | 0 | 0 | 11,245 |
Foreign currency translation | 0 | 0 | 0 | (61) | 0 | (61) |
Dividends declared | 0 | 0 | (552) | 0 | 0 | (552) |
Stock based compensation expense | 0 | 941 | 0 | 0 | 0 | 941 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (946) | (946) |
Balance at Mar. 31, 2020 | 33 | 17,974 | 373,208 | (265) | (325,606) | 65,344 |
Balance at Dec. 31, 2019 | 33 | 17,033 | 362,515 | (204) | (324,660) | 54,717 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 22,535 | |||||
Foreign currency translation | (65) | |||||
Balance at Jun. 30, 2020 | 33 | 19,111 | 383,947 | (269) | (326,378) | 76,444 |
Balance at Mar. 31, 2020 | 33 | 17,974 | 373,208 | (265) | (325,606) | 65,344 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 11,290 | 0 | 0 | 11,290 |
Foreign currency translation | 0 | 0 | 0 | (4) | 0 | (4) |
Dividends declared | 0 | 0 | (551) | 0 | 0 | (551) |
Stock based compensation expense | 0 | 1,137 | 0 | 0 | 0 | 1,137 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (772) | (772) |
Balance at Jun. 30, 2020 | 33 | 19,111 | 383,947 | (269) | (326,378) | 76,444 |
Balance at Dec. 31, 2020 | 33 | 21,219 | 394,386 | (165) | (328,562) | 86,911 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 15,950 | 0 | 0 | 15,950 |
Foreign currency translation | 0 | 0 | 0 | 10 | 0 | 10 |
Dividends declared | 0 | 0 | (548) | 0 | 0 | (548) |
Stock based compensation expense | 0 | 1,166 | 0 | 0 | 0 | 1,166 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (1,814) | (1,814) |
Balance at Mar. 31, 2021 | 33 | 22,385 | 409,788 | (155) | (330,376) | 101,675 |
Balance at Dec. 31, 2020 | 33 | 21,219 | 394,386 | (165) | (328,562) | 86,911 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 33,051 | |||||
Foreign currency translation | 15 | |||||
Balance at Jun. 30, 2021 | 33 | 23,331 | 371,828 | (150) | (333,896) | 61,146 |
Balance at Mar. 31, 2021 | 33 | 22,385 | 409,788 | (155) | (330,376) | 101,675 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 17,101 | 0 | 0 | 17,101 |
Foreign currency translation | 0 | 0 | 0 | 5 | 0 | 5 |
Dividends declared | 0 | 0 | (55,061) | 0 | 0 | (55,061) |
Stock based compensation expense | 0 | 946 | 0 | 0 | 0 | 946 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (3,520) | (3,520) |
Balance at Jun. 30, 2021 | $ 33 | $ 23,331 | $ 371,828 | $ (150) | $ (333,896) | $ 61,146 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |||
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Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2020 |
Mar. 31, 2020 |
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Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Dividends declared (in dollars per share) | $ 2.02 | $ 0.02 | $ 0.02 | $ 0.02 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
6 Months Ended | ||||
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Jun. 30, 2021 |
Jun. 30, 2020 |
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Cash flows from operating activities: | |||||
Net income | $ 33,051 | $ 22,535 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 641 | 445 | |||
Accretion of discounts and amortization of premiums | (23) | 48 | |||
Stock based compensation expense | 2,112 | 2,078 | |||
Deferred income taxes | 708 | 8,103 | |||
Foreign currency translation gain / (loss) | 15 | (65) | |||
Cost basis of donated securities | 0 | 0 | |||
Unrealized (gains) / losses on securities | (7,636) | 6,503 | |||
Net realized losses on securities | 3,243 | 1,097 | |||
Impairment charge on intangible asset | 0 | 589 | |||
(Increase) decrease in assets: | |||||
Investments in securities | (1,132) | 2,095 | |||
Receivable from brokers | 218 | (3,687) | |||
Investment advisory fees receivable | 4,357 | 17,855 | |||
Receivable from affiliates | 1,206 | 699 | |||
Income taxes receivable | 138 | (747) | |||
Other assets | (1,199) | 642 | |||
Increase (decrease) in liabilities: | |||||
Payable to brokers | 11 | 0 | |||
Income taxes payable | (1,994) | 3,986 | |||
Compensation payable | 23,436 | (33,328) | |||
Payable to affiliates | (1,176) | (3,724) | |||
Accrued expenses and other liabilities | (1,648) | (4,170) | |||
Total adjustments | 21,277 | (1,581) | |||
Net cash provided by operating activities | 54,328 | 20,954 | |||
Cash flows from investing activities: | |||||
Purchases of securities | (4,888) | (50,108) | |||
Proceeds from sales and maturities of securities | 66,728 | 3,995 | |||
Return of capital on securities | 0 | 12 | |||
Net cash provided by/ (used in) investing activities | 61,840 | (46,101) | |||
Cash flows from financing activities: | |||||
Maturity of 5.875% ten year notes due 6/1/21 | (24,225) | 0 | |||
Dividends paid | (1,611) | (1,065) | |||
Purchase of treasury stock | (5,334) | (1,718) | |||
Repayment of principal portion of lease liability | (126) | (104) | |||
Net cash used in financing activities | (31,296) | (2,887) | |||
Effect of exchange rates on cash and cash equivalents | (3) | 15 | |||
Net increase / (decrease) in cash and cash equivalents | 84,869 | (28,019) | |||
Cash and cash equivalents, beginning of period | 33,325 | [1] | 86,136 | ||
Cash and cash equivalents, end of period | 118,194 | [1] | 58,117 | ||
Supplemental disclosures of cash flow information: | |||||
Cash paid for interest | 1,308 | 1,270 | |||
Cash paid for taxes | $ 18,402 | $ 780 | |||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
6 Months Ended | |
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Jun. 30, 2021 |
Jun. 30, 2020 |
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Supplemental disclosure of non-cash activity: | ||
Accrued restricted stock award dividends | $ 1,898 | $ 38 |
Subordinated Notes [Member] | ||
Cash flows from financing activities: | ||
Debt instrument, maturity date | Jun. 15, 2023 | |
Supplemental disclosure of non-cash activity: | ||
Principal amount | $ 52,200 | |
Special dividend (in dollars per share) | $ 2.00 | |
5.875% Senior Notes [Member] | ||
Cash flows from financing activities: | ||
Debt instrument, interest rate | 5.875% | |
Debt instrument, term | 10 years | |
Debt instrument, maturity date | Jun. 01, 2021 |
Organization and Description of Business |
6 Months Ended |
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Jun. 30, 2021 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business |
Organization and Description of Business
Unless indicated otherwise, or the context otherwise requires, references in this report to “GAMCO Investors, Inc.,” “GAMCO,” “the Company,” “the Firm,” and “GBL” or similar terms are to GAMCO Investors, Inc., its predecessors, and its subsidiaries.
GAMCO (New York Stock Exchange (“NYSE”): GBL), a company incorporated under the laws of Delaware, is a widely-recognized provider of investment advisory services to 24 open-end funds, 16 closed-end funds, 2 actively managed semi-transparent exchange traded funds (“ETFs”), one société d’investissement à capital variable (“SICAV”), and approximately 1,400 institutional and private wealth management (“Institutional and PWM”) investors principally in the United States (U.S.). The Company generally manages assets on a fully discretionary basis and invests in a variety of U.S. and international securities through various investment styles including value, growth, gold, non-market correlated, and convertible securities. The Company’s revenues are based primarily on the levels of assets under management (“AUM”) and fees associated with the various investment products.
GAMCO offers a wide range of solutions for clients across Value, Growth Equity, ESG, Convertibles, actively managed semi-transparent ETFs, sector-focused strategies including Gold and Utilities, Merger Arbitrage, and Fixed Income. In 1977, GAMCO started its well-known All Cap Value strategy, Gabelli Value, and in 1986 entered the mutual fund business.
The investment advisory business is conducted principally through the following subsidiaries: Gabelli Funds, LLC (open-end funds, closed-end funds, and actively managed semi-transparent ETFs) (“Gabelli Funds”) and GAMCO Asset Management Inc. (Institutional and PWM) (“GAMCO Asset”). The distribution of open-end funds and actively managed semi-transparent ETFs are conducted through G.distributors, LLC (“G.distributors”), the Company’s broker-dealer subsidiary.
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Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2021 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies |
1. Significant Accounting Policies
Basis of Presentation
The unaudited interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for the fair presentation of financial position, results of operations, and cash flows of GAMCO for the interim periods presented and are not necessarily indicative of a full year’s results.
The interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including: Gabelli Funds, GAMCO Asset, G.distributors, and GAMCO Asset Management (UK) Limited. Intercompany accounts and transactions have been eliminated. Subsidiaries are fully consolidated from the date of acquisition, being the date on which GBL obtains control, and continue to be consolidated until the date that such control ceases.
These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2020.
Use of Estimates
The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recent Accounting Developments
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Currently, U.S. GAAP requires an “incurred loss” methodology that delays recognition until it is probable a loss has been incurred. Under ASU 2016-13, the allowance for credit losses must be deducted from the amortized cost of the financial asset to present the net amount expected to be collected. The consolidated statement of income will reflect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), Leases (Topic 842): Effective Dates (ASU 2019-10), which deferred the effective date of this guidance for smaller reporting companies for three years. This guidance is effective for the Company on January 1, 2023 and requires a modified retrospective transition method, which will result in a cumulative-effect adjustment in retained earnings upon adoption. Early adoption is permitted. The Company is currently assessing the potential impact of this new guidance on the Company’s consolidated financial statements.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies the process used to test for goodwill impairment by eliminating the requirement to calculate the implied fair value of goodwill, and instead any goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. In November 2019, the FASB issued ASU 2019-10, which deferred the effective date of this guidance for smaller reporting companies for three years. This guidance will be effective for the Company on January 1, 2023 using a prospective transition method and early adoption is permitted. The Company is currently evaluating the potential effect of this new guidance on the Company’s consolidated financial statements.
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Revenue Recognition |
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Revenue Recognition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition |
2. Revenue Recognition
The discussion below includes all material revenue streams that are within the scope of ASU 2014-09, Revenue From Contracts With Customers (Topic 606) (“ASU 2014-09”). In all cases for all revenue streams discussed below, the revenue generated is from a single transaction price and there is no need to allocate the amounts across more than a single revenue stream. The customer for all revenues derived from mutual funds, closed-end funds, and ETFs (collectively, the “Funds”) described in detail below has been determined to be each Fund itself and not the ultimate underlying investor in each Fund.
Significant judgments that affect the amounts and timing of revenue recognition:
The Company’s analysis of the timing of revenue recognition for each revenue stream is based upon an analysis of the current terms of each contract. Performance obligations could, however, change from time to time if and when existing contracts are modified or new contracts are entered into. These changes could potentially affect the timing of satisfaction of performance obligations, the determination of the transaction price, and the allocation of the price to performance obligations. In the case of the revenue streams discussed below, the performance obligation is satisfied either at a point in time or over time. For incentive fee revenues, the performance obligation (advising a client portfolio) is satisfied over time, while the recognition of revenues effectively occurs at the end of the measurement period as defined within the contract, as such amounts are subject to reduction to zero on the date where the measurement period ends even if the performance benchmarks were exceeded during the intervening period. The judgments outlined below, where the determination as to these factors is discussed in detail, are continually reviewed and monitored by the Company when new contracts or contract modifications occur. Transaction price is in all instances formulaic and not subject to significant (or any) judgment at the current time. The allowance for doubtful accounts is subject to judgment.
Advisory Fee Revenues
Advisory fees for Funds, sub-advisory accounts, and the SICAV are earned based on predetermined percentages of the average net assets of the individual Funds and are recognized as revenues as the related services are performed. Fees for mutual Funds, one non-U.S. closed-end Fund, ETFs, sub-advisory accounts, and the SICAV are computed on a daily basis based on average daily net AUM. Fees for U.S. closed-end Funds are computed on average weekly net AUM and fees for one non-U.S. closed-end Fund are computed on a daily basis based on daily market value. These fees are received in cash after the end of each monthly period within 30 days. The revenue recognition occurs ratably as the performance obligation (advising the Fund) is met continuously over time. There is a risk of non-payment and, therefore, an impairment loss on these receivables is possible at each reporting date. There were no such impairment losses for the periods presented.
Advisory fees for Institutional and PWM accounts are earned based on predetermined percentages of the AUM and are generally computed quarterly based on account values at the end of the preceding quarter. The revenue recognition occurs daily as the performance obligation (advising the client portfolio) is met continuously. These fees are received in cash, typically within 60 days of the client being billed. There is a risk of non-payment and, therefore, an impairment loss on these receivables is possible at each reporting date. There were no such impairment losses for the periods presented.
Performance Correlated and Conditional Revenues
Investment advisory fees are earned on a portion of some closed-end Funds’ preferred shares at year-end if the total return to common shareholders of the respective closed-end Fund for the year exceeds the dividend rate of the preferred shares. These fees are recognized at the end of the measurement period, which coincides with the calendar year. These fees would also be earned and the contract period ended at any interim point in time that the respective preferred shares are redeemed. These fees are received in cash after the end of each annual measurement period, within 30 days.
The Company earns an incentive fee from two closed-end Funds. For The GDL Fund (GDL), there is an incentive fee, which is earned and recognized as of the end of each calendar year and varies to the extent the total return of the Fund is in excess of the ICE Bank of America Merrill Lynch 3-month U.S. Treasury Bill Index total return. For the Gabelli Merger Plus+ Trust Plc (GMP), there is an incentive fee, which is earned and recognized as of the end of each annual measurement period, June 30th, and varies to the extent the total return of the Fund is in excess of twice the rate of return of the 13-week Treasury Bills over the performance period.
The Company earns a performance fee from a SICAV sub-fund, the GAMCO Merger Arbitrage SICAV. This fee is recognized at the end of the measurement period, which coincides with the calendar year. The fee would also be earned and the measurement period ended at any interim point in time that a client redeemed their respective shares. This fee is received in cash after the end of the measurement period, within 30 days.
The Company also may receive incentive fees from institutional clients, which are based upon exceeding either a specific benchmark index or a defined return for these accounts. These fees are recognized at the end of the stipulated contract period, which is generally annually, for each respective account. These fees would also be earned and the contract period ended at any interim point in time that the client terminated its relationship with the Company. These fees are received in cash after the end of the measurement period, typically within 60 days.
In all cases of the incentive fees and performance fees, because of the variable nature of the consideration, revenue recognition is delayed until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, which is generally when the uncertainty associated with the variable consideration is subsequently resolved (for example, the measurement period has concluded and the hurdle rate has been exceeded). There is a risk of non-payment and, therefore, an impairment loss on these receivables is possible at each reporting date. There were no such impairment losses for the periods presented.
Distribution Fees and Other Income
Distribution fees and other income primarily includes distribution fee revenue earned in accordance with Rule 12b-1 of the Company Act of 1940, as amended, along with sales charges and underwriting fees associated with the sale of the class A shares of mutual funds. Distribution fees are computed based on average daily net assets of certain classes of each Fund and are accrued during the period in which they are earned. These fees are received in cash after the end of each monthly period within 30 days. In evaluating the appropriate timing of the recognition of these fees, the Company applied the guidance on up-front fees to determine whether such fees are related to the transfer of a promised service (a distinct performance obligation). The Company’s conclusion is that the service being provided by G.distributors to the customer in exchange for the fee is for the initial distribution of certain classes of the mutual funds and is completed at the time of each respective sale. Any fixed amounts are recognized on the trade date and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the fund, both of which are highly susceptible to factors outside the Company’s influence, the Company does not believe that it can overcome this constraint until the market value of the Fund and the investor activities are known, which are generally monthly. Sales charges and underwriting fees associated with the sale of certain classes of the mutual funds are recognized on the trade date of the sale of the respective shares. There is a risk of non-payment and, therefore, an impairment loss on these receivables is possible at each reporting date. There were no such impairment losses for the periods presented.
Revenue Disaggregated
The following table presents the Company’s revenue disaggregated by investment vehicle (in thousands):
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Investment in Securities |
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Investment in Securities |
3. Investment in Securities
Investments in equity securities and funds at June 30, 2021 and December 31, 2020 consisted of the following (in thousands):
Investments in equity securities and funds, including the Company’s investments in common stocks and the Funds, are stated at fair value with any unrealized gains or losses reported in each respective period’s earnings.
There were no investments in debt securities at June 30, 2021. Investments in debt securities at December 31, 2020 consisted of the following (in thousands):
The maturity dates of all of the Company’s investments in debt securities are less than one year.
Securities sold, not yet purchased at June 30, 2021 and December 31, 2020 consisted of the following (in thousands):
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Fair Value |
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Fair Value [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value |
4. Fair Value
All of the instruments within cash and cash equivalents and investments in securities are measured at fair value, except for those investments designated as held-to-maturity. The Company’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy in accordance with the FASB Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC 820”), guidance on fair value measurement. The levels of the fair value hierarchy and their applicability to the Company are described below:
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of June 30, 2021 and December 31, 2020 (in thousands):
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2021
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2020
Cash equivalents are comprised primarily of U.S. Treasury Bills.
Financial assets not carried at fair value
The following table presents the carrying value and fair value of the Company’s investments in debt securities that are held-to-maturity and consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands):
At June 30, 2021 and December 31, 2020, the Senior Notes and Subordinated Notes were recorded at face value, net of amortized issuance costs, as follows (in thousands) on the Condensed Consolidated Statements of Financial Condition:
The carrying value of other financial assets and liabilities approximates their fair value based on the short-term nature of these items.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes |
5. Income Taxes
The effective tax rate (“ETR”) for the three months ended June 30, 2021 and 2020 was 37.4% and 39.1%, respectively. The effective tax rate (“ETR”) for the six months ended June 30, 2021 and 2020 was 33.9% and 32.8%, respectively.
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Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
6. Earnings Per Share
Basic earnings per share is calculated by dividing net income by the weighted average shares outstanding. Diluted earnings per share is calculated using the treasury stock method by dividing net income by the total weighted average shares of common stock outstanding and restricted stock awards. The computations of basic and diluted net income per share were as follows (in thousands, except per share amounts):
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Debt |
6 Months Ended |
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Jun. 30, 2021 | |
Debt [Abstract] | |
Debt |
7. Debt
Senior Notes
On May 31, 2011, the Company issued 10-year, $100 million senior notes (“Senior Notes”). The Senior Notes bore interest at 5.875% per annum, payable semi-annually on June 1 and December 1 of each year and commenced on December 1, 2011. On June 1, 2021, the Senior Notes matured and were fully repaid.
At December 31, 2020, the debt was recorded at its face value, net of issuance costs, of $24.2 million.
Subordinated Notes
On June 14, 2021, the Company entered into an indenture with Computershare Trust Company, N.A., as trustee, relating to GAMCO’s issuance of up to approximately $54.0 million of 2-year subordinated notes (“Subordinated Notes”). The Subordinated Notes were issued to shareholders as a special dividend of $2.00 per share on GAMCO’s class A common stock (“Class A Stock”) and class B common stock (“Class B Stock”). The Company issued approximately $52.2 million of Subordinated Notes in connection with the special dividend and reserved approximately $1.9 million of Subordinated Notes to be issued upon vesting of restricted stock awards (“RSAs”). The Subordinated Notes bear interest at a rate of 4.0% per annum for the one-year period ending June 15, 2022 and 5.0% per annum for the one-year period ending June 15, 2023 and mature on June 15, 2023. The Subordinated Notes are transferable, callable at the option of GAMCO, in whole or in part, at any time or from time to time at a redemption price equal to 100% of the principal amount of the Subordinated Notes to be redeemed plus interest, and puttable, in whole or in part, at any time after September 15, 2021 at a redemption price equal to 100% of the principal amount of the Subordinated Notes to be redeemed upon notice of redemption of at least 60 days but not more than 90 days before the redemption date.
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Stockholders' Equity |
6 Months Ended |
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Jun. 30, 2021 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity |
8. Stockholders’ Equity
Shares outstanding were 27.2 million and 27.5 million on June 30, 2021 and December 31, 2020, respectively.
Voting Rights
The holders of Class A Stock and Class B Stock have identical rights except that (i) holders of Class A Stock are entitled to one vote per share, while holders of Class B Stock are entitled to ten votes per share, on all matters to be voted on by shareholders in general, and (ii) holders of Class A Stock are not eligible to vote on matters relating exclusively to Class B Stock and vice versa.
Authorized shares
On June 5, 2020, shareholders approved the amendment to the Company’s Amended and Restated Certificate of Incorporation to decrease the total number of authorized shares of Class B Stock from 100,000,000 shares to 25,000,000 shares.
Stock Award and Incentive Plan
The Company maintains a stock award and incentive plan approved by the shareholders (the “Plan”), which is designed to provide incentives which will attract and retain individuals key to the success of GBL through direct or indirect ownership of our common stock. A maximum of 7.5 million shares of Class A Stock have been reserved for issuance under the Plan by a committee of GBL’s board of directors (the “Board of Directors”) responsible for administering the Plan (“Compensation Committee”). Benefits under the Plan may be granted in any one or a combination of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, phantom stock awards, dividend equivalents, and other stock or cash based awards. Under the Plan, the Compensation Committee may grant RSAs, each of which entitles the grantee to one share of Class A Stock subject to restrictions, phantom RSAs, each of which entitles the grantee to the cash value of one share of Class A Stock subject to restrictions, and either incentive or nonqualified stock options, with a term not to exceed ten years from the grant date and at an exercise price that the Compensation Committee may determine, which were recommended by the Company’s Chairman who did not receive any awards.
On March 5, 2020, 392,700 RSAs were issued at a grant price of $14.31 per RSA. On June 15, 2021, 396,800 phantom RSAs were issued at a grant price of $25.02 per phantom RSA and have similar vesting terms to the RSAs. The phantom RSAs, which will be settled in cash based on the fair value of the shares on the vesting date, were determined to be liability awards and will be adjusted for changes in the Company’s stock price at each reporting period.
As of June 30, 2021 and December 31, 2020, there were 967,370 and 1,079,650, respectively, RSAs outstanding with weighted average grant prices per RSA of $19.07 and $19.45, respectively, and 10,000 stock options outstanding with an exercise price of $25.55. As of June 30, 2021, there were 396,800 phantom RSAs outstanding with weighted average grant prices per phantom RSA of $25.02.
For the three months ended June 30, 2021 and 2020, the Company recognized stock-based non-cash compensation expense of $1.1 million in each period. For the six months ended June 30, 2021 and 2020, the Company recognized stock-based non-cash compensation expense of $2.3 million and $2.1 million, respectively.
The total compensation costs related to non-vested awards to teammates, excluding the CEO who received none, not yet recognized was approximately $17.5 million as of June 30, 2021.
On January 2, 2020, the Deferred Cash Compensation Agreement (“DCCA”) with the CEO covering compensation from 2016 vested in accordance with the terms of the agreement and a cash payment in the amount of $43.7 million was made to the CEO. This payment was reduced by $32.3 million resulting from the DCCA being indexed to the GBL stock price and utilizing the lesser of the VWAP on the vesting date ($18.8812) versus the VWAP over 2016 ($32.8187).
Stock Repurchase Program
In March 1999, the Board of Directors established a stock repurchase program (the “Stock Repurchase Program”) to grant management the authority to repurchase shares of Class A Stock. On March 18, 2020, the Board of Directors authorized an increase to purchase $30 million of its outstanding Class A Stock, which resulted in a modification in the form of the authorization from previously being stated in shares to being stated in dollars. On August 4, 2020, the Board of Directors authorized a share repurchase of 3,000,000 shares of its outstanding Class A Stock, which replaced any outstanding share repurchase authorizations.
For the three months ended June 30, 2021 and 2020, the Company repurchased 157,884 and 65,704 shares, respectively, at an average price per share of $22.29 and $11.74, respectively. For the six months ended June 30, 2021 and 2020, the Company repurchased 254,962 and 120,797 shares, respectively, at an average price per share of $20.91 and $14.21, respectively. At June 30, 2021, the total shares available under the Stock Repurchase Program to be repurchased in the future were 2,619,697. The Stock Repurchase Program is not subject to an expiration date.
On March 11, 2020, GAMCO commenced an offer to purchase up to $30 million in aggregate purchase price of its Class A Stock, pursuant to which holders of shares were invited to tender some or all of their shares at a price within the range of $15.00 to $17.00 per share, which would have enabled GAMCO to purchase for cash up to 2,000,000 shares of its Class A common stock (such offer, the “Offer”). The Offer which was due to expire on April 8, 2020, was terminated on March 18, 2020 as a result of the suspension of trading and market index conditions of the Offer not having been satisfied. As a result of this termination, no shares were purchased in the Offer and all shares previously tendered and not withdrawn were promptly returned to tendering holders.
Dividends
During the three months ended June 30, 2021 and 2020, the Company declared cash dividends of $0.02 per share to shareholders of Class A Stock and Class B Stock. During the six months ended June 30, 2021 and 2020, the Company declared cash dividends of $0.04 per share to shareholders of Class A Stock and Class B Stock. During the three and six months ended June 30, 2021, the Company declared a special dividend of $2.00 per share to shareholders of Class A Stock and Class B Stock payable in Subordinated Notes.
Shelf Registration
In April 2018, the SEC declared effective the Company’s “shelf” registration statement on Form S-3 giving the Company the flexibility to sell any combination of senior and subordinated debt securities, convertible debt securities, and equity securities (including common and preferred securities) up to a total amount of $500 million. The shelf expired in April 2021.
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Goodwill and Identifiable Intangible Assets |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Goodwill and Identifiable Intangible Assets [Abstract] | |
Goodwill and Identifiable Intangible Assets |
9. Goodwill and Identifiable Intangible Assets
Goodwill is initially measured as the excess of the cost of the acquired business over the sum of the amounts assigned to assets acquired less the liabilities assumed. At June 30, 2021 and December 31, 2020, there was goodwill of $0.2 million maintained on the Condensed Consolidated Statements of Financial Condition related to G.distributors.
As a result of becoming the advisor to the Gabelli Enterprise Mergers and Acquisitions Fund (the “Enterprise Fund”) and the associated consideration paid, the Company maintains an identifiable intangible asset of $1.3 million at June 30, 2021 and December 31, 2020. The investment advisory agreement for the Enterprise Fund is next up for renewal in February 2022. As a result of becoming the advisor to the Bancroft Fund Ltd. (the “Bancroft Fund”) and the Ellsworth Growth and Income Fund Ltd. (the “Ellsworth Fund”) and the associated consideration paid, the Company maintains an identifiable intangible asset of $1.6 million at June 30, 2021 and December 31, 2020. The investment advisory agreements for the Bancroft Fund and the Ellsworth Fund are next up for renewal in August 2021. Each of these investment advisory agreements are subject to annual renewal by the respective fund’s board of directors, which the Company expects to be renewed, and the Company does not expect to incur additional expense as a result, which is consistent with other investment advisory agreements entered into by the Company.
The Company assesses the recoverability of goodwill and intangible assets at least annually, or more often should events warrant. In December 2019, a novel strain of coronavirus (“COVID-19”) surfaced in China and has since spread quickly to numerous countries, including the United States. On March 11, 2020, COVID-19 was identified as a global pandemic by the World Health Organization. In response to its spread, governmental authorities have imposed restrictions on travel and congregation and the temporary closure of many non-essential businesses in affected jurisdictions, including, beginning in March 2020, in the United States. The pandemic and resulting economic dislocations have had adverse consequences for the portfolios of the Funds, including the Enterprise Fund, Bancroft Fund, and Ellsworth Fund. For the three and six months ended June 30, 2020, as a result of the dislocations in the financial markets resulting from COVID-19, impairment analyses were performed which resulted in $161 thousand and $589 thousand impairment charges, respectively, to the identifiable intangible asset related to the Enterprise Fund included within other operating expenses on the Condensed Consolidated Statements of Income. There were no indicators of impairment for the three and six months ended June 30, 2021 and, as such, there was no impairment analysis performed or charge recorded for such period. There was no impairment charge recorded to the identifiable intangible asset related to the Bancroft Fund or Ellsworth Fund.
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Commitments and Contingencies |
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Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
10. Commitments and Contingencies
From time to time, the Company may be named in legal actions and proceedings in the normal course of business. These actions may seek substantial or indeterminate compensatory as well as punitive damages or injunctive relief. The Company is also subject to governmental or regulatory examinations or investigations. Liabilities for loss contingencies arising from claims, assessments, litigation,fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. There are currently no such matters pending that the Company believes could have a material adverse effect on its consolidated financial condition, operations, or cash flows at June 30, 2021.
Leases
On December 5, 1997, the Company entered into a fifteen-year lease, expiring on April 30, 2013, of office space from an entity controlled by members of the Chairman’s family. On June 11, 2013, the Company modified and extended its lease with M4E, LLC, the Company’s landlord at One Corporate Center, Rye, NY. The lease term was extended to December 31, 2028 and the base rental remained at $18 per square foot, or $1.1 million, for 2014. For each subsequent year through December 31, 2028, the base rental is determined by the change in the consumer price index for the New York Metropolitan Area for November of the immediate prior year with the base period as November 2008 for the New York Metropolitan Area.
This lease has been accounted for as a finance lease under FASB ASC Topic 842 (and prior to 2019, as a capital lease under FASB ASC Topic 840, Leases) as it transfers substantially all the benefits and risks of ownership to the Company. The Company has recorded the leased property as an asset and a lease obligation for the present value of the obligation of the leased property. The leased property is amortized on a straight-line basis from the date of the most recent extension to the end of the lease. The lease obligation is amortized over the same term using the interest method of accounting. Finance lease improvements are amortized from the date of expenditure through the end of the lease term or the useful life, whichever is shorter, on a straight-line basis. The lease provides that all operating expenses relating to the property (such as property taxes, utilities, and maintenance) are to be paid by the lessee, GAMCO. These are recognized as expenses in the periods in which they are incurred. Accumulated amortization on the leased property at June 30, 2021 and December 31, 2020 was approximately $5.6 million and $5.5 million, respectively.
The Company also rents office space under operating leases, which expire at various dates through December 31, 2030.
The following table summarizes the Company’s leases for the periods presented (in thousands, except lease term and discount rate):
The finance lease right-of-use asset, net of amortization, at June 30, 2021 and December 31, 2020 was $1.6 million and $1.7 million, respectively, and the operating right-of-use assets, net of amortization, were $2.7 million and $0.8 million, respectively, and these right-of-use assets were included within other assets in the Condensed Consolidated Statements of Financial Condition.
The following table summarizes the maturities of lease liabilities at June 30, 2021 (in thousands):
The finance lease contains an escalation clause tied to the change in the New York Metropolitan Area Consumer Price Index, which may cause the future minimum payments to exceed the amounts shown above. Future minimum lease payments have not been reduced by related minimum future sublease rentals of approximately $1.2 million due over the next eight years, which are due from affiliated entities.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions |
11. Related Party Transactions
On June 8, 2021, the Chief Executive Officer (“CEO”) of the Company elected to irrevocably waive all of his compensation that he would otherwise have been entitled to for the period from July 1, 2021 to November 30, 2021. On June 30, 2020, the CEO of the Company elected to irrevocably waive all of his compensation that he would otherwise have been entitled to for the period from July 1, 2020 to November 10, 2020.
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Regulatory Requirements |
6 Months Ended |
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Jun. 30, 2021 | |
Regulatory Requirements [Abstract] | |
Regulatory Requirements |
12. Regulatory Requirements
The Company’s broker-dealer subsidiary, G.distributors, is subject to certain net capital requirements. G.distributors computes its net capital under the alternative method permitted, which requires minimum net capital of the greater of $250,000 or 2% of the aggregate debit items in the reserve formula for those broker-dealers subject to Rule 15c3-3 promulgated under the Securities Exchange Act of 1934, as amended. The requirement was $250,000 for the broker-dealer at June 30, 2021. At June 30, 2021, G.distributors had net capital, as defined, of approximately $1.9 million, exceeding the regulatory requirement by approximately $1.7 million. Net capital requirements for the Company’s affiliated broker-dealer may increase in accordance with the rules and regulations applicable to broker-dealers to the extent G.distributors engages in other business activities.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events |
13. Subsequent Events
From July 1, 2021 to August 3, 2021, the Company repurchased 6,307 shares at $25.13 per share.
On July 21, 2021, the Company filed a new “shelf” registration statement on Form S-3 giving the Company the flexibility to sell any combination of senior and subordinated debt securities, convertible debt securities, and equity securities (including common and preferred securities) up to a total amount of $500 million. The shelf was declared effective on July 27, 2021.
On August 3, 2021, the Board of Directors declared its regular quarterly dividend of $0.02 per share to all of the Company’s shareholders, payable on September 28, 2021 to shareholders of record on September 14, 2021.
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Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation |
Basis of Presentation
The unaudited interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for the fair presentation of financial position, results of operations, and cash flows of GAMCO for the interim periods presented and are not necessarily indicative of a full year’s results.
The interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including: Gabelli Funds, GAMCO Asset, G.distributors, and GAMCO Asset Management (UK) Limited. Intercompany accounts and transactions have been eliminated. Subsidiaries are fully consolidated from the date of acquisition, being the date on which GBL obtains control, and continue to be consolidated until the date that such control ceases.
These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2020.
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Use of Estimates |
Use of Estimates
The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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Recent Accounting Developments |
Recent Accounting Developments
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Currently, U.S. GAAP requires an “incurred loss” methodology that delays recognition until it is probable a loss has been incurred. Under ASU 2016-13, the allowance for credit losses must be deducted from the amortized cost of the financial asset to present the net amount expected to be collected. The consolidated statement of income will reflect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), Leases (Topic 842): Effective Dates (ASU 2019-10), which deferred the effective date of this guidance for smaller reporting companies for three years. This guidance is effective for the Company on January 1, 2023 and requires a modified retrospective transition method, which will result in a cumulative-effect adjustment in retained earnings upon adoption. Early adoption is permitted. The Company is currently assessing the potential impact of this new guidance on the Company’s consolidated financial statements.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies the process used to test for goodwill impairment by eliminating the requirement to calculate the implied fair value of goodwill, and instead any goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. In November 2019, the FASB issued ASU 2019-10, which deferred the effective date of this guidance for smaller reporting companies for three years. This guidance will be effective for the Company on January 1, 2023 using a prospective transition method and early adoption is permitted. The Company is currently evaluating the potential effect of this new guidance on the Company’s consolidated financial statements.
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Revenue Recognition (Tables) |
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Revenue Disaggregated |
The following table presents the Company’s revenue disaggregated by investment vehicle (in thousands):
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Investment in Securities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Equity Securities |
Investments in equity securities and funds at June 30, 2021 and December 31, 2020 consisted of the following (in thousands):
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Investments in Debt Securities |
There were no investments in debt securities at June 30, 2021. Investments in debt securities at December 31, 2020 consisted of the following (in thousands):
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Securities Sold, Not Yet Purchased |
Securities sold, not yet purchased at June 30, 2021 and December 31, 2020 consisted of the following (in thousands):
|
Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis |
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2021
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2020
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Financial Assets and Liabilities Disclosed But Not Carried at Fair Value |
The following table presents the carrying value and fair value of the Company’s investments in debt securities that are held-to-maturity and consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands):
At June 30, 2021 and December 31, 2020, the Senior Notes and Subordinated Notes were recorded at face value, net of amortized issuance costs, as follows (in thousands) on the Condensed Consolidated Statements of Financial Condition:
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Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computations of Basic and Diluted Net Income per Share |
Basic earnings per share is calculated by dividing net income by the weighted average shares outstanding. Diluted earnings per share is calculated using the treasury stock method by dividing net income by the total weighted average shares of common stock outstanding and restricted stock awards. The computations of basic and diluted net income per share were as follows (in thousands, except per share amounts):
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Leases |
The following table summarizes the Company’s leases for the periods presented (in thousands, except lease term and discount rate):
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Maturities of Lease Liabilities |
The following table summarizes the maturities of lease liabilities at June 30, 2021 (in thousands):
|
Organization and Description of Business (Details) |
Jun. 30, 2021
Fund
Investor
|
---|---|
Organization and Description of Business [Abstract] | |
Number of open-end funds | 24 |
Number of closed-end funds | 16 |
Number of actively managed semi-transparent exchange traded funds | 2 |
Number of open-end investment funds | 1 |
Number of institutional investors | Investor | 1,400 |
Revenue Recognition (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
Fund
|
Jun. 30, 2020
USD ($)
|
|
Revenue Streams [Abstract] | ||||
Revenue | $ 75,624 | $ 57,559 | $ 143,552 | $ 127,126 |
Performance-based [Member] | Minimum [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | $ 0 | |||
Closed-end Funds [Member] | Performance-based [Member] | ||||
Revenue Streams [Abstract] | ||||
Number of days for customer to make payment after being invoiced | 30 days | |||
Number of funds | Fund | 2 | |||
Advisory Fees [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 68,885 | 51,470 | $ 130,355 | 113,743 |
Advisory Fees [Member] | Performance-based [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 3,507 | 248 | $ 3,892 | 343 |
Advisory Fees [Member] | Conditional [Member] | ||||
Revenue Streams [Abstract] | ||||
Number of days for customer to make payment after being invoiced | 60 days | |||
Advisory Fees [Member] | Mutual Funds [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 24,709 | 20,365 | $ 48,181 | 43,921 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | Closed-end Funds [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 19,805 | 14,594 | $ 37,887 | 31,014 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | Closed-end Funds [Member] | Performance-based [Member] | ||||
Revenue Streams [Abstract] | ||||
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | Sub-advisory Accounts [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 650 | 517 | $ 1,266 | 1,249 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | Institutional & PWM [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 18,592 | 14,543 | $ 36,191 | 34,548 |
Number of days for customer to make payment after being invoiced | 60 days | |||
Advisory Fees [Member] | Institutional & PWM [Member] | Performance-based [Member] | ||||
Revenue Streams [Abstract] | ||||
Number of days for customer to make payment after being invoiced | 60 days | |||
Advisory Fees [Member] | SICAVs [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | 1,622 | 1,203 | $ 2,938 | 2,668 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Advisory Fees [Member] | SICAVs [Member] | Performance-based [Member] | Non-US Closed-end Fund [Member] | ||||
Revenue Streams [Abstract] | ||||
Number of funds | Fund | 1 | |||
Distribution Fees and Other Income [Member] | ||||
Revenue Streams [Abstract] | ||||
Revenue | $ 6,739 | $ 6,089 | $ 13,197 | $ 13,383 |
Number of days for customer to make payment after being invoiced | 30 days |
Investment in Securities, Investment in Equity Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Investments in Equity Securities and Funds [Abstract] | ||
Cost | $ 48,591 | $ 47,726 |
Estimated Fair Value | 33,743 | 25,845 |
Common Stock [Member] | ||
Investments in Equity Securities and Funds [Abstract] | ||
Cost | 37,437 | 41,341 |
Estimated Fair Value | 21,647 | 19,099 |
Open-end Funds [Member] | ||
Investments in Equity Securities and Funds [Abstract] | ||
Cost | 5,632 | 5,757 |
Estimated Fair Value | 6,235 | 6,128 |
Actively Managed Semi-transparent EFTs [Member] | ||
Investments in Equity Securities and Funds [Abstract] | ||
Cost | 5,000 | 0 |
Estimated Fair Value | 5,326 | 0 |
Closed-end Funds [Member] | ||
Investments in Equity Securities and Funds [Abstract] | ||
Cost | 516 | 628 |
Estimated Fair Value | 528 | 618 |
Other [Member] | ||
Investments in Equity Securities and Funds [Abstract] | ||
Cost | 6 | 0 |
Estimated Fair Value | $ 7 | $ 0 |
Investment in Securities, Investment in Debt Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Investments in Debt Securities [Abstract] | ||
Amortized cost | $ 0 | $ 64,988 |
Gross unrealized holding gains | 6 | |
Gross unrealized holding losses | 0 | |
Estimated fair value | 64,994 | |
U.S. Treasury Bills [Member] | ||
Investments in Debt Securities [Abstract] | ||
Amortized cost | 64,988 | |
Gross unrealized holding gains | 6 | |
Gross unrealized holding losses | 0 | |
Estimated fair value | $ 64,994 |
Investment in Securities, Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Investment in Equity Securities [Abstract] | ||
Cost | $ 0 | $ 728 |
Estimated Fair Value | 0 | 799 |
Common Stocks [Member] | ||
Investment in Equity Securities [Abstract] | ||
Cost | 0 | 728 |
Estimated Fair Value | $ 0 | $ 799 |
Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Investments in securities [Abstract] | ||
Investments in securities | $ 33,743 | $ 25,845 |
Securities sold, not yet purchased [Abstract] | ||
Total securities sold, not yet purchased | 0 | 799 |
Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 21,647 | 19,099 |
Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 6,235 | 6,128 |
Actively Managed Semi-transparent EFTs [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 5,326 | 0 |
Closed-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 528 | 618 |
Other [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 7 | 0 |
Recurring Basis [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 117,723 | 32,661 |
Investments in securities [Abstract] | ||
Investments in securities | 33,743 | 25,845 |
Total assets at fair value | 151,466 | 58,506 |
Securities sold, not yet purchased [Abstract] | ||
Trading - Common Stocks | 799 | |
Total securities sold, not yet purchased | 799 | |
Recurring Basis [Member] | Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 21,647 | 19,099 |
Recurring Basis [Member] | Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 6,235 | 6,128 |
Recurring Basis [Member] | Actively Managed Semi-transparent EFTs [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 5,326 | |
Recurring Basis [Member] | Closed-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 528 | 618 |
Recurring Basis [Member] | Other [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 7 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 117,723 | 32,661 |
Investments in securities [Abstract] | ||
Investments in securities | 33,743 | 25,845 |
Total assets at fair value | 151,466 | 58,506 |
Securities sold, not yet purchased [Abstract] | ||
Trading - Common Stocks | 799 | |
Total securities sold, not yet purchased | 799 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 21,647 | 19,099 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 6,235 | 6,128 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Actively Managed Semi-transparent EFTs [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 5,326 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Closed-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 528 | 618 |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 7 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Total assets at fair value | 0 | 0 |
Securities sold, not yet purchased [Abstract] | ||
Trading - Common Stocks | 0 | |
Total securities sold, not yet purchased | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Actively Managed Semi-transparent EFTs [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Closed-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Total assets at fair value | 0 | 0 |
Securities sold, not yet purchased [Abstract] | ||
Trading - Common Stocks | 0 | |
Total securities sold, not yet purchased | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Common Stocks [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Open-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Actively Managed Semi-transparent EFTs [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Closed-end Funds [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | 0 | $ 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||
Investments in securities [Abstract] | ||
Investments in securities | $ 0 |
Fair Value, Financial Assets and Liabilities Disclosed But Not Carried at Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
May 31, 2011 |
---|---|---|---|
5.875% Senior Notes [Member] | |||
Debt instruments [Abstract] | |||
Debt instrument, interest rate | 5.875% | 5.875% | 5.875% |
Carrying Value [Member] | |||
Investments in debt securities [Abstract] | |||
Total | $ 0 | $ 64,988 | |
Debt instruments [Abstract] | |||
Total | 52,178 | 24,215 | |
Carrying Value [Member] | Subordinated Notes [Member] | |||
Debt instruments [Abstract] | |||
Notes payable | 52,178 | 0 | |
Carrying Value [Member] | 5.875% Senior Notes [Member] | Senior Notes [Member] | |||
Debt instruments [Abstract] | |||
Notes payable | 0 | 24,215 | |
Carrying Value [Member] | U.S. Treasury Bills [Member] | |||
Investments in debt securities [Abstract] | |||
Debt securities held-to-maturity | 0 | 64,988 | |
Level 1 [Member] | Fair Value [Member] | |||
Investments in debt securities [Abstract] | |||
Total | 0 | 64,994 | |
Level 1 [Member] | Fair Value [Member] | U.S. Treasury Bills [Member] | |||
Investments in debt securities [Abstract] | |||
Debt securities held-to-maturity | 0 | 64,994 | |
Level 2 [Member] | Fair Value [Member] | |||
Debt instruments [Abstract] | |||
Total | 52,178 | 24,554 | |
Level 2 [Member] | Fair Value [Member] | Subordinated Notes [Member] | |||
Debt instruments [Abstract] | |||
Notes payable | 52,178 | 0 | |
Level 2 [Member] | Fair Value [Member] | 5.875% Senior Notes [Member] | Senior Notes [Member] | |||
Debt instruments [Abstract] | |||
Notes payable | $ 0 | $ 24,554 |
Income Taxes (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Taxes [Abstract] | ||||
Effective income tax rate | 37.40% | 39.10% | 33.90% | 32.80% |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Basic [Abstract] | ||||||
Net income | $ 17,101 | $ 15,950 | $ 11,290 | $ 11,245 | $ 33,051 | $ 22,535 |
Weighted average shares outstanding (in shares) | 26,316 | 26,629 | 26,354 | 26,658 | ||
Basic net income per share (in dollars per share) | $ 0.65 | $ 0.42 | $ 1.25 | $ 0.85 | ||
Diluted [Abstract] | ||||||
Net income | $ 17,101 | $ 15,950 | $ 11,290 | $ 11,245 | $ 33,051 | $ 22,535 |
Weighted average shares outstanding (in shares) | 26,316 | 26,629 | 26,354 | 26,658 | ||
Restricted stock awards (in shares) | 553 | 27 | 278 | 55 | ||
Total (in shares) | 26,869 | 26,656 | 26,632 | 26,713 | ||
Diluted net income per share (in dollars per share) | $ 0.64 | $ 0.42 | $ 1.24 | $ 0.84 |
Debt (Details) - USD ($) $ / shares in Units, $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 14, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
May 31, 2011 |
|
5.875% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 10 years | |||
Face value of debt | $ 24.2 | $ 100.0 | ||
Debt instrument, interest rate | 5.875% | 5.875% | 5.875% | |
Debt instrument, maturity date | Jun. 01, 2021 | |||
Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Face value of debt | $ 52.2 | $ 52.2 | ||
Dividends declared related to issuance of debt (in dollars per share) | $ 2.00 | |||
Debt instrument reserved to be issued upon vesting of RSA's | $ 1.9 | |||
Debt instrument, interest rate for period ending June 15, 2022 | 4.00% | |||
Debt instrument, interest rate for period ending June 15, 2023 | 5.00% | |||
Debt instrument, maturity date | Jun. 15, 2023 | |||
Percentage of redemption price | 100.00% | |||
Subordinated Notes [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period of redemption | 60 days | |||
Subordinated Notes [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period of redemption | 90 days | |||
Subordinated Notes [Member] | Computershare Trust Company, N.A. [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 2 years | |||
Subordinated Notes [Member] | Computershare Trust Company, N.A. [Member] | Class A [Member] | ||||
Debt Instrument [Line Items] | ||||
Dividends declared related to issuance of debt (in dollars per share) | $ 2.00 | |||
Subordinated Notes [Member] | Computershare Trust Company, N.A. [Member] | Class B [Member] | ||||
Debt Instrument [Line Items] | ||||
Dividends declared related to issuance of debt (in dollars per share) | $ 2.00 | |||
Subordinated Notes [Member] | Computershare Trust Company, N.A. [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Face value of debt | $ 54.0 |
Stockholders' Equity, Shares Outstanding (Details) - shares shares in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Stockholders' Equity [Abstract] | ||
Shares outstanding (in shares) | 27.2 | 27.5 |
Stockholders' Equity, Voting Rights, Stock Award and Incentive Plan (Details) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 15, 2021
$ / shares
shares
|
Mar. 05, 2020
$ / shares
shares
|
Jan. 02, 2020
USD ($)
$ / shares
|
Jun. 30, 2021
USD ($)
$ / shares
shares
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
VoteperShare
$ / shares
shares
|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2016
$ / shares
|
Dec. 31, 2020
$ / shares
shares
|
Jun. 05, 2020
shares
|
Jun. 04, 2020
shares
|
|
Actual and projected stock based compensation expense for RSA shares and options [Abstract] | |||||||||||
Stock-based non-cash compensation expense | $ | $ 1.1 | $ 1.1 | $ 2.3 | $ 2.1 | |||||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||||||||||
Compensation cost related to non-vested options not yet recognized | $ | $ 17.5 | $ 17.5 | |||||||||
Deferred Compensation Arrangements [Abstract] | |||||||||||
Payments for compensation agreement | $ | $ 43.7 | ||||||||||
Reduction of RSU expense due to cap and waiver of receipt of deferred compensation expense | $ | $ 32.3 | ||||||||||
Deferred compensation agreement, share price (in dollars per share) | $ / shares | $ 18.8812 | $ 32.8187 | |||||||||
Stock Options [Member] | |||||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||||
Stock option outstanding (in shares) | 10,000 | 10,000 | |||||||||
Stock option outstanding, exercise price (in dollars per share) | $ / shares | $ 25.55 | $ 25.55 | |||||||||
Stock Options [Member] | Maximum [Member] | |||||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||||
Term of nonqualified stock options | 10 years | ||||||||||
Restricted Stock Awards [Member] | |||||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||||
RSAs granted (in shares) | 392,700 | ||||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 14.31 | ||||||||||
RSA shares outstanding (in shares) | 967,370 | 967,370 | 1,079,650 | ||||||||
Average weighted grant price (in dollars per share) | $ / shares | $ 19.07 | $ 19.07 | $ 19.45 | ||||||||
Phantom Restricted Stock Awards [Member] | |||||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||||
RSAs granted (in shares) | 396,800 | ||||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 25.02 | ||||||||||
RSA shares outstanding (in shares) | 396,800 | 396,800 | |||||||||
Average weighted grant price (in dollars per share) | $ / shares | $ 25.02 | $ 25.02 | |||||||||
Class A [Member] | |||||||||||
Voting Rights [Abstract] | |||||||||||
Number of votes per share | VoteperShare | 1 | ||||||||||
Authorized Shares [Abstract] | |||||||||||
Number of shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||
Class A [Member] | Maximum [Member] | |||||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||||
Number of shares reserved for issuance under each plan (in shares) | 7,500,000 | 7,500,000 | |||||||||
Class A [Member] | Restricted Stock Awards [Member] | |||||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||||
Number of shares of common stock to which the grantee is entitled (in shares) | 1 | ||||||||||
Class A [Member] | Phantom Restricted Stock Awards [Member] | |||||||||||
Stock Award and Incentive Plan [Abstract] | |||||||||||
Number of shares of common stock the cash value of which the grantee is entitled to (in shares) | 1 | ||||||||||
Class B [Member] | |||||||||||
Voting Rights [Abstract] | |||||||||||
Number of votes per share | VoteperShare | 10 | ||||||||||
Authorized Shares [Abstract] | |||||||||||
Number of shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 100,000,000 |
Stockholders' Equity, Stock Repurchase Program, Dividends and Shelf Registration (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 4 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2021 |
Mar. 11, 2020 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Aug. 03, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jul. 21, 2021 |
Aug. 04, 2020 |
Mar. 18, 2020 |
Apr. 23, 2018 |
|
Dividends [Abstract] | |||||||||||||
Dividends declared (in dollars per share) | $ 2.02 | $ 0.02 | $ 0.02 | $ 0.02 | |||||||||
Shelf Registration [Abstract] | |||||||||||||
Maximum amount of debt and equity to be issued under shelf registration | $ 500 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Stock Repurchase Program [Abstract] | |||||||||||||
Average price per share of repurchased shares (in dollars per share) | $ 25.13 | ||||||||||||
Dividends [Abstract] | |||||||||||||
Dividends declared (in dollars per share) | $ 0.02 | ||||||||||||
Shelf Registration [Abstract] | |||||||||||||
Maximum amount of debt and equity to be issued under shelf registration | $ 500 | ||||||||||||
Subordinated Notes [Member] | Special Dividend [Member] | |||||||||||||
Dividends [Abstract] | |||||||||||||
Dividends declared (in dollars per share) | 2.00 | $ 2.00 | |||||||||||
Class A Stock [Member] | |||||||||||||
Stock Repurchase Program [Abstract] | |||||||||||||
Incremental Class A shares authorized to buyback (in shares) | 3,000,000 | ||||||||||||
Dividends [Abstract] | |||||||||||||
Dividends declared (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 | |||||||||
Class A Stock [Member] | Stock Repurchase Program [Member] | |||||||||||||
Stock Repurchase Program [Abstract] | |||||||||||||
Stock repurchase authorized, amount | $ 30 | ||||||||||||
Shares repurchased (in shares) | 157,884 | 65,704 | 254,962 | 120,797 | |||||||||
Average price per share of repurchased shares (in dollars per share) | $ 22.29 | $ 11.74 | $ 20.91 | $ 14.21 | |||||||||
Share available under program to repurchase (in shares) | 2,000,000 | 2,619,697 | 2,619,697 | ||||||||||
Aggregate purchase price | $ 30 | ||||||||||||
Class A Stock [Member] | Stock Repurchase Program [Member] | Minimum [Member] | |||||||||||||
Stock Repurchase Program [Abstract] | |||||||||||||
Average price per share of repurchased shares (in dollars per share) | $ 15.00 | ||||||||||||
Class A Stock [Member] | Stock Repurchase Program [Member] | Maximum [Member] | |||||||||||||
Stock Repurchase Program [Abstract] | |||||||||||||
Average price per share of repurchased shares (in dollars per share) | $ 17.00 | ||||||||||||
Class B Stock [Member] | |||||||||||||
Dividends [Abstract] | |||||||||||||
Dividends declared (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 |
Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Goodwill and Identifiable Intangible Assets [Abstract] | |||||
Goodwill | $ 200 | $ 200 | $ 200 | ||
Intangible assets, net [Abstract] | |||||
Impairment on intangible assets | 0 | $ 589 | |||
Enterprise Fund [Member] | |||||
Intangible assets, net [Abstract] | |||||
Impairment on intangible assets | $ 161 | $ 589 | |||
Bancroft Fund [Member] | |||||
Intangible assets, net [Abstract] | |||||
Impairment on intangible assets | 0 | 0 | |||
Ellsworth Fund [Member] | |||||
Intangible assets, net [Abstract] | |||||
Impairment on intangible assets | 0 | 0 | |||
Investment Advisory Contract [Member] | Enterprise Fund [Member] | |||||
Intangible assets, net [Abstract] | |||||
Identifiable intangible asset | 1,300 | 1,300 | 1,300 | ||
Investment Advisory Contract [Member] | Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. [Member] | |||||
Intangible assets, net [Abstract] | |||||
Identifiable intangible asset | $ 1,600 | $ 1,600 | $ 1,600 |
Commitments and Contingencies (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2021
USD ($)
$ / ft²
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
$ / ft²
|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Commitments and Contingencies [Abstract] | |||||
Lease term | 15 years | 15 years | |||
Base rent per square foot (in dollars per square foot) | $ / ft² | 18 | 18 | |||
Base rental | $ 1,100 | ||||
Accumulated amortization on the leased property | $ 5,600 | 5,600 | $ 5,500 | ||
Lease Cost [Abstract] | |||||
Finance lease cost - interest expense | 260 | $ 267 | 523 | $ 536 | |
Finance lease cost - amortization of right-of-use asset | 67 | 67 | 134 | 134 | |
Operating lease cost | 163 | 105 | 346 | 180 | |
Sublease income | (46) | (46) | (92) | (92) | |
Total lease cost | 444 | 393 | 911 | 758 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||||
Operating cash flows from finance lease | 0 | 0 | 0 | 0 | |
Operating cash flows from operating leases | 105 | 88 | 218 | 153 | |
Financing cash flows from finance lease | 64 | 53 | 125 | 104 | |
Total cash paid for amounts included in the measurement of lease liabilities | 169 | 141 | 343 | 257 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 324 | $ 2,143 | $ 324 | |
Weighted average remaining lease term-finance lease | 7 years 6 months | 8 years 6 months | 7 years 6 months | 8 years 6 months | |
Weighted average remaining lease term-operating leases | 3 years 2 months 12 days | 2 years 4 months 24 days | 3 years 2 months 12 days | 2 years 4 months 24 days | |
Weighted average discount rate-finance lease | 19.10% | 19.10% | 19.10% | 19.10% | |
Weighted average discount rate-operating leases | 5.00% | 5.00% | 5.00% | 5.00% | |
Finance lease right-of-use asset, net of amortization | $ 1,600 | $ 1,600 | 1,700 | ||
Operating right-of-use assets, net of amortization | 2,700 | 2,700 | $ 800 | ||
Finance Leases [Abstract] | |||||
2021 (excluding the three months ended March 31, 2021) | 647 | 647 | |||
2022 | 1,080 | 1,080 | |||
2023 | 1,080 | 1,080 | |||
2024 | 1,080 | 1,080 | |||
2025 | 1,080 | 1,080 | |||
Thereafter | 3,240 | 3,240 | |||
Total lease payments | 8,207 | 8,207 | |||
Less imputed interest | (3,937) | (3,937) | |||
Total lease liabilities | 4,270 | 4,270 | |||
Operating Leases [Abstract] | |||||
2021 (excluding the three months ended March 31, 2021) | 420 | 420 | |||
2022 | 657 | 657 | |||
2023 | 517 | 517 | |||
2024 | 393 | 393 | |||
2025 | 332 | 332 | |||
Thereafter | 1,660 | 1,660 | |||
Total lease payments | 3,979 | 3,979 | |||
Less imputed interest | (1,106) | (1,106) | |||
Total lease liabilities | 2,873 | 2,873 | |||
Total Leases [Abstract] | |||||
2021 (excluding the three months ended March 31, 2021) | 1,067 | 1,067 | |||
2022 | 1,737 | 1,737 | |||
2023 | 1,597 | 1,597 | |||
2024 | 1,473 | 1,473 | |||
2025 | 1,412 | 1,412 | |||
Thereafter | 4,900 | 4,900 | |||
Total lease payments | 12,186 | 12,186 | |||
Less imputed interest | (5,043) | (5,043) | |||
Total lease liabilities | 7,143 | 7,143 | |||
Minimum future sublease rental, due from affiliated entities | $ 1,200 | $ 1,200 | |||
Period of minimum future sublease rental, due from affiliated entities | 8 years |
Regulatory Requirements (Details) |
6 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Regulatory Requirements [Abstract] | |
Minimum capital requirement | $ 250,000 |
Percentage of minimum capital requirement | 2.00% |
Net capital | $ 1,900,000 |
Net capital exceeding regulatory requirements | $ 1,700,000 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 4 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Aug. 03, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Aug. 03, 2021 |
Jul. 21, 2021 |
Apr. 23, 2018 |
|
Stock Repurchase [Abstract] | ||||||||
Maximum amount of debt and equity to be issued under Shelf Registration | $ 500 | |||||||
Dividends [Abstract] | ||||||||
Dividends declared (in dollars per share) | $ 2.02 | $ 0.02 | $ 0.02 | $ 0.02 | ||||
Subsequent Event [Member] | ||||||||
Stock Repurchase [Abstract] | ||||||||
Stock repurchased (in shares) | 6,307 | |||||||
Stock repurchased per share (in dollars per share) | $ 25.13 | |||||||
Maximum amount of debt and equity to be issued under Shelf Registration | $ 500 | |||||||
Dividends [Abstract] | ||||||||
Dividends declared date | Aug. 03, 2021 | |||||||
Dividends declared (in dollars per share) | $ 0.02 | |||||||
Dividends payable date | Sep. 28, 2021 | |||||||
Dividends record date | Sep. 14, 2021 |
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