|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading
Symbol
|
Name of each exchange on
which registered
|
||
|
|
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
|
Smaller reporting company
|
|
Emerging growth company
|
Class |
Outstanding at July 30, 2021
|
||
Class A Common Stock, .001 par value
|
|
|
|
Class B Common Stock, .001 par value
|
|
ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
|
||
INDEX
|
||
PART I.
|
FINANCIAL INFORMATION
|
Page
|
Item 1.
|
3
|
|
Item 2.
|
24
|
|
Item 3.
|
31 |
|
Item 4.
|
31
|
|
PART II.
|
OTHER INFORMATION *
|
|
Item 1.
|
34
|
|
Item 2.
|
34
|
|
Item 6.
|
35
|
|
37
|
June 30,
2021
|
December 31,
2020
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Investments in U.S. Treasury Bills
|
|
|
||||||
Investments in equity securities (Including GBL stock with a value of $
|
|
|
||||||
Investments in affiliated registered investment companies
|
|
|
||||||
Investments in partnerships
|
|
|
||||||
Receivable from brokers
|
|
|
||||||
Investment advisory fees receivable
|
|
|
||||||
Receivable and investment in note receivable from affiliates
|
|
|
||||||
Deferred tax assets, net
|
|
|||||||
Goodwill
|
|
|
||||||
Other assets
|
|
|
||||||
Investments in marketable securities held in trust
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
|
||||||||
Payable to brokers
|
$
|
|
$
|
|
||||
Income taxes payable, including deferred tax liabilities, net
|
|
|
||||||
Compensation payable
|
|
|
||||||
Securities sold, not yet purchased
|
|
|
||||||
Payable to affiliates
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Deferred underwriting fee payable
|
|
|
||||||
PMV warrant liability |
||||||||
Total liabilities
|
|
|
||||||
Redeemable noncontrolling interests
|
|
|
||||||
Commitments and contingencies (Note J)
|
||||||||
|
||||||||
Equity:
|
||||||||
Preferred stock, $
|
||||||||
Class A Common Stock, $
issued, respectively;
|
|
|
||||||
Class B Common Stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Treasury stock, at cost (
|
(
|
)
|
(
|
)
|
||||
Total Associated Capital Group, Inc. equity
|
|
|
||||||
Noncontrolling interests
|
(
|
|
||||||
Total equity
|
|
|
||||||
Total liabilities and equity
|
$
|
|
$
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021 | 2020 | |||||||||||||
Revenues
|
||||||||||||||||
Investment advisory and incentive fees
|
$
|
|
$
|
|
$ | $ | ||||||||||
Other
|
|
|
||||||||||||||
Total revenues
|
|
|
||||||||||||||
Expenses
|
||||||||||||||||
Compensation
|
|
|
||||||||||||||
Management fee
|
|
|
||||||||||||||
Other operating expenses
|
|
|
||||||||||||||
Total expenses
|
|
|
||||||||||||||
Operating loss
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Other income (expense)
|
||||||||||||||||
Net gain/(loss) from investments
|
|
|
( |
) | ||||||||||||
Interest and dividend income
|
|
|
||||||||||||||
Interest expense
|
(
|
)
|
(
|
)
|
( |
) | ( |
) | ||||||||
Shareholder-designated contribution
|
(
|
)
|
|
( |
) | ( |
) | |||||||||
Total other income (expense), net
|
|
|
( |
) | ||||||||||||
Income/(loss) before income taxes
|
|
|
( |
) | ||||||||||||
Income tax expense/(benefit)
|
|
|
( |
) | ||||||||||||
Income/(loss) from continuing operations, net of taxes
|
|
|
( |
) | ||||||||||||
Income/(loss) from discontinued operations, net of taxes
|
|
(
|
)
|
( |
) | |||||||||||
Income/(loss) before noncontrolling interests
|
|
|
( |
) | ||||||||||||
Income/(loss) attributable to noncontrolling interests
|
(
|
)
|
|
( |
) | ( |
) | |||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Net income/(loss) per share attributable to Associated Capital Group, Inc.’s shareholders:
|
||||||||||||||||
Basic - Continuing operations
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Basic - Discontinued operations
|
|
(
|
)
|
( |
) | |||||||||||
Basic - Total
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Diluted - Continuing operations
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Diluted - Discontinued operations
|
|
(
|
)
|
( |
) | |||||||||||
Diluted - Total
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
|
|
||||||||||||||
Diluted
|
|
|
||||||||||||||
Actual shares outstanding:
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021 | 2020 |
|||||||||||||
Net income/(loss)
|
$
|
|
$
|
|
$ | $ | ( |
) | ||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests
|
(
|
)
|
|
( |
) | ( |
) | |||||||||
Comprehensive income/(loss) attributable to Associated Capital Group, Inc.
|
$
|
|
$
|
|
$ | $ | ( |
) |
Associated Capital Group, Inc. shareholders
|
||||||||||||||||||||||||||||||||
Common
Stock
|
Retained
Earnings
|
Additional
Paid-in
Capital
|
Treasury
Stock
|
Total
|
Noncontrolling
Interests
|
Total
Equity
|
Redeemable
Noncontrolling
Interests
|
|||||||||||||||||||||||||
Balance at December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Contributions from redeemable noncontrolling interests
|
||||||||||||||||||||||||||||||||
Redemptions of noncontrolling interests
|
|
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||||
Net income
|
- |
|
|
|
|
|
|
|
||||||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||||
Balance at March 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Contributions from redeemable noncontrolling interests
|
||||||||||||||||||||||||||||||||
Net income | ( |
) | ||||||||||||||||||||||||||||||
Dividends declared ($
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Purchase of treasury stock | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Accretion of redeemable noncontrolling interests to redemption value
|
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Other changes to redeemable noncontrolling interests
|
( |
) | ||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ |
Associated Capital Group, Inc. shareholders
|
||||||||||||||||||||||||||||||||
Common
Stock
|
Accumulated
Deficit
|
Additional
Paid-in
Capital
|
Treasury
Stock
|
Total
|
Noncontrolling
Interests
|
Total
Equity
|
Redeemable
Noncontrolling
Interests
|
|||||||||||||||||||||||||
Balance at December 31, 2019
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Redemptions of noncontrolling interests
|
|
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||||
Net loss
|
|
(
|
)
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Purchase of treasury stock
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||||
Balance at March 31, 2020
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net income | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Dividends declared ($
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Purchase of treasury stock | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | $ |
For the Six Months Ended
June 30,
|
||||||||
2021
|
2020
|
|||||||
Operating activities
|
||||||||
Net income/(loss)
|
$
|
|
$
|
(
|
)
|
|||
Less: (Loss) from discontinued operations, net of taxes
|
|
(
|
)
|
|||||
Income/(loss) from continuing operations
|
|
(
|
)
|
|||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
|
||||||||
Equity in net (gains) losses from partnerships
|
(
|
)
|
|
|||||
Depreciation and amortization
|
|
|
||||||
Deferred income taxes
|
|
(
|
)
|
|||||
Donated securities
|
|
|
||||||
Unrealized (gains)/losses on securities
|
(
|
)
|
|
|||||
Dividends received as securities | ( |
) | ||||||
Realized gains on sales of securities
|
(
|
)
|
|
|||||
(Increase)/decrease in assets:
|
||||||||
Investments in trading securities
|
|
(
|
)
|
|||||
Investments in partnerships:
|
||||||||
Contributions to partnerships
|
(
|
)
|
(
|
)
|
||||
Distributions from partnerships
|
|
|
||||||
Receivable from affiliates
|
|
|
||||||
Receivable from brokers
|
(
|
)
|
|
|||||
Investment advisory fees receivable
|
|
|
||||||
Income taxes receivable
|
(
|
)
|
(
|
)
|
||||
Other assets
|
|
|||||||
Increase/(decrease) in liabilities:
|
||||||||
Payable to affiliates
|
(
|
)
|
|
|||||
Payable to brokers
|
|
(
|
)
|
|||||
Income taxes payable
|
(
|
(
|
)
|
|||||
Compensation payable
|
(
|
)
|
(
|
)
|
||||
Accrued expenses and other liabilities
|
(
|
)
|
(
|
)
|
||||
Total adjustments
|
|
(
|
)
|
|||||
Net cash provided by operating activities
|
|
(
|
)
|
|||||
Investing activities
|
||||||||
Maturities of U.S. Treasury Bills held in trust |
||||||||
Purchases of money market funds held in trust |
( |
) | ||||||
Purchases of securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of securities
|
|
|
||||||
Return of capital on securities
|
|
|
||||||
Purchase of building
|
|
(
|
)
|
|||||
Net cash provided by/(used in) investing activities
|
$
|
|
$
|
(
|
)
|
Six Months Ended
June 30,
|
||||||||
2021
|
2020
|
|||||||
Financing activities
|
||||||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
||||
Net contributions/(redemptions) from/(of) redeemable noncontrolling interests
|
|
(
|
||||||
Net cash provided by (used in) financing activities
|
(
|
)
|
(
|
)
|
||||
Net increase in cash and cash equivalents
|
|
(
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
|
$
|
|
||||
Cash paid/(received) for taxes
|
$
|
|
$
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2021
|
2020
|
2021 |
2020 |
|||||||||||||
Investment advisory and incentive fees
|
||||||||||||||||
Asset-based advisory fees
|
$
|
|
$
|
|
$ | $ | ||||||||||
Performance-based advisory fees
|
|
|
||||||||||||||
Sub-advisory fees
|
|
|
||||||||||||||
|
|
|||||||||||||||
Other
|
||||||||||||||||
Miscellaneous
|
|
|
||||||||||||||
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$ | $ |
June 30, 2021
|
December 31, 2020
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Debt - Trading Securities:
|
||||||||||||||||
U.S. Treasury Bills
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity Securities:
|
||||||||||||||||
Common stocks
|
|
|
|
|
||||||||||||
Mutual funds
|
|
|
|
|
||||||||||||
Other investments
|
|
|
|
|
||||||||||||
Total investments in securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Investments in
note receivable from affiliate |
$ |
$ |
$ |
$ |
||||||||||||
Investments
in marketable securities held in trust |
$ | $ | $ | $ |
June 30, 2021
|
December 31, 2020
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Common stocks
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other investments
|
|
|
|
|
||||||||||||
Total securities sold, not yet purchased
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2021
|
December 31, 2020
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Closed-end funds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Mutual funds
|
|
|
|
|
||||||||||||
|
||||||||||||||||
Total investments in affiliated registered investment
companies
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2021
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities and equity
|
||||||||||||
Total liabilities
|
|
|
|
|||||||||
Redeemable noncontrolling interests
|
|
|
|
|||||||||
Total equity
|
|
|
|
|||||||||
Total liabilities and equity
|
$
|
|
$
|
|
$
|
|
December 31, 2020
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities and equity
|
||||||||||||
Total liabilities
|
|
|
|
|||||||||
Redeemable noncontrolling interests
|
|
|
|
|||||||||
Total equity
|
|
|
|
|||||||||
Total liabilities and equity
|
$
|
|
$
|
|
$
|
|
Three Months Ended June 30, 2021
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total revenues
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Operating loss
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total other income, net
|
|
|
|
|||||||||
Loss from continuing operations, net of taxes
|
|
(
|
)
|
|
||||||||
Income attributable to noncontrolling interests
|
|
(
|
)
|
(
|
)
|
|||||||
Net income/(loss)
|
$
|
|
$
|
|
$
|
|
Three Months Ended June 30, 2020
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total revenues
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Operating loss
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total other income, net
|
|
|
|
|||||||||
Loss from continuing operations, net of taxes
|
|
|
|
|||||||||
Loss from discontinued operations, net of taxes
|
(
|
)
|
|
(
|
)
|
|||||||
Income attributable to noncontrolling interests
|
|
|
|
|||||||||
Net loss
|
$
|
|
$
|
|
$
|
|
Six Months Ended June 30, 2021
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total revenues
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Operating loss
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total other income, net
|
|
|
|
|||||||||
Loss from continuing operations, net of taxes
|
|
(
|
)
|
|
||||||||
Income attributable to noncontrolling interests
|
|
(
|
)
|
(
|
)
|
|||||||
Net income/(loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
Six Months Ended June 30, 2020
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total revenues
|
$
|
|
$
|
|
$
|
|
||||||
Operating loss
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total other income, net
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Loss from continuing operations, net of taxes
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Loss from discontinued operations, net of taxes
|
(
|
)
|
|
(
|
)
|
|||||||
Income attributable to noncontrolling interests
|
|
(
|
)
|
(
|
)
|
|||||||
Net loss
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
June 30,
2021
|
December 31,
2020
|
|||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Investments in securities (1)
|
|
|
||||||
Receivable from brokers
|
|
|
||||||
Investments in partnerships and affiliates
|
|
|
||||||
Other assets
|
|
|
||||||
Accrued expenses and other liabilities
|
(
|
)
|
(
|
)
|
||||
Nonredeemable noncontrolling interests
|
(
|
)
|
(
|
)
|
||||
Redeemable noncontrolling interests
|
(
|
)
|
(
|
)
|
||||
AC Group’s net interests in consolidated VIEs
|
$
|
|
$
|
|
June 30,
2021
|
December 31,
2020
|
|||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Investments in securities
|
|
|
||||||
Receivable from brokers
|
|
|
||||||
Investments in marketable securities held in trust
|
|
|
||||||
Other assets
|
|
|
||||||
Securities sold, not yet purchased
|
(
|
)
|
(
|
)
|
||||
Accrued expenses and other liabilities
|
(
|
)
|
(
|
)
|
||||
PMV warrant liability |
( |
) | ||||||
Redeemable noncontrolling interests
|
(
|
)
|
(
|
)
|
||||
AC Group’s net interests in consolidated VOEs
|
$
|
|
$
|
|
• |
Level 1 - Unadjusted quoted prices for identical instruments in active markets.
|
• |
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical
or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable.
|
• |
Level 3 - Valuations derived from valuation techniques in which significant inputs or
significant value drivers are unobservable.
|
June 30, 2021
|
||||||||||||||||
Assets
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Total
|
||||||||||||
Cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Investments in securities
(including GBL stock):
|
||||||||||||||||
Trading - U.S. Treasury
Bills
|
|
|
|
|
||||||||||||
Common stocks
|
|
|
|
|
||||||||||||
Mutual funds
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total investments in
securities
|
|
|
|
|
||||||||||||
Investments in affiliated
registered investment companies:
|
||||||||||||||||
Closed-end funds
|
|
|
|
|
||||||||||||
Mutual funds
|
|
|
|
|
||||||||||||
Total investments in affiliated
registered investment companies
|
|
|
|
|
||||||||||||
Total investments held at fair
value
|
|
|
|
|
||||||||||||
Total assets at
fair value
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Liabilities
|
||||||||||||||||
Common stocks
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other
|
|
|
|
|
||||||||||||
Securities sold, not yet
purchased
|
|
|
|
|
||||||||||||
PMV warrant liability
|
|
|
|
|
||||||||||||
Total liabilities at fair value
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2020
|
||||||||||||||||
Assets
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Total
|
||||||||||||
Cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Investments in securities
(including GBL stock):
|
||||||||||||||||
Trading - U.S. Treasury
Bills
|
|
|
|
|||||||||||||
Common stocks
|
|
|
|
|
||||||||||||
Mutual funds
|
|
|
|
|||||||||||||
Other
|
|
|
|
|
||||||||||||
Total investments in
securities
|
|
|
|
|
||||||||||||
Investments in affiliated
registered investment companies:
|
||||||||||||||||
Closed-end funds
|
|
|
|
|
||||||||||||
Mutual funds
|
|
|
|
|||||||||||||
Total investments in affiliated
registered investment companies
|
|
|
|
|
||||||||||||
Total investments held at fair
value
|
|
|
|
|
||||||||||||
Total assets at
fair value
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Liabilities
|
||||||||||||||||
Common stocks
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||
Other
|
|
|
|
|||||||||||||
Securities sold, not yet
purchased
|
$
|
|
$
|
|
$ |
$
|
|
Three months ended June 30, 2021
|
Three months ended June 30, 2020
|
|||||||||||||||||||||||
Common Stocks
|
Other
|
Total
|
Common Stocks
|
Other
|
Total
|
|||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Total gains/(losses)
|
|
(
|
)
|
(
|
)
|
|
|
|
||||||||||||||||
Purchases
|
|
|
|
|
|
|
||||||||||||||||||
Sales
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Transfers
|
|
|
|
|
|
|
||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Changes in net unrealized
gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$ |
|
PMV Warrant Liability
|
Other
|
Total
|
PMV Warrant Liability
|
Other
|
Total
|
|||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||
Beginning balance
|
$ | $ |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Total (gains)/losses
|
( |
) |
(
|
)
|
|
|
|
|||||||||||||||||
Issuances
|
|
|
|
|
||||||||||||||||||||
Ending balance
|
$ | $ | $ | $ |
$
|
|
$
|
|
||||||||||||||||
Changes in net unrealized (gain)/loss included in Net (gain)/loss from investments related
to level 3 assets still held as of the reporting date
|
$ | ( |
) | $ |
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
Six months ended June 30, 2021
|
Six months ended June 30, 2020
|
|||||||||||||||||||||||
Common Stocks
|
Other
|
Total
|
Common Stocks
|
Other
|
Total
|
|||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Total gains/(losses)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||
Purchases
|
|
|
|
|
|
|
||||||||||||||||||
Sales
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Transfers
|
|
(
|
)
|
(
|
)
|
|
|
|
||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Changes in net unrealized
gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
PMV Warrant Liability
|
Other
|
Total
|
PMV Warrant Liability
|
Other
|
Total
|
|||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Total (gains)/losses
|
(
|
)
|
|
(
|
)
|
|
|
|
||||||||||||||||
Issuances
|
|
|
|
|
|
|
||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Changes in net unrealized (gain)/loss included in Net (gain)/loss from investments related
to level 3 assets still held as of the reporting date
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
As of June 30, 2021
|
As of December 31, 2020
|
|||||||||||||||||||||||
Assets
|
Level Within Fair Value Hierarchy
|
Fair Value
|
Amortized Cost
|
Level Within Fair Value Hierarchy
|
Fair Value
|
Amortized Cost
|
||||||||||||||||||
Investment in note receivable from
affiliate(1)
|
2
|
$
|
|
$
|
|
-
|
$
|
|
$
|
|
||||||||||||||
Total assets
|
$
|
|
$
|
|
-
|
$
|
|
$
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
(In thousands, except for per share amounts)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Income/loss from continuing operations
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Less:
|
||||||||||||||||
Income/(loss) attributable to noncontrolling
interests
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Net income/loss from continuing operations
attributable to AC’s shareholders
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Income/loss from discontinued operations
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Net income/loss attributable to AC’s shareholders
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Weighted average number of
shares of Common Stock outstanding - basic
|
|
|
|
|
||||||||||||
Weighted average number of
shares of Common Stock outstanding - diluted
|
|
|
|
|
||||||||||||
Basic
|
||||||||||||||||
Net income/(loss) from continuing operations
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Net income/(loss) from discontinued operations
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Net income/(loss) attributable to AC’s shareholders per share
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Diluted
|
||||||||||||||||
Net income/(loss) from continuing operations
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Net income/(loss) from discontinued operations
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Net income/(loss)
attributable to AC’s shareholders per share
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|
Three Months
Ended
June 30,
|
Six Months Ended
June 30,
|
Remaining Expense To Be
Recognized, If All Vesting
|
Weighted Average
Remaining Contractual
|
||||||||||||||||||||
|
2021
|
2020
|
2021
|
2020
|
Conditions Are Met
|
Term (in years)
|
||||||||||||||||||
Phantom restricted stock awards
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|
|
|||||||||||||
Total
|
|
|
|
(
|
)
|
|
Unvested
|
Weighted
Average Grant
Date Fair Value
|
Vested
|
Total Number
of RSU’s
Outstanding
|
|||||||||||||
Balance at January 1,
2021
|
|
$
|
|
|
|
|||||||||||
Granted
|
|
|
|
|
||||||||||||
Forfeited
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Vested
|
|
|
|
|
||||||||||||
Balance at June
30, 2021
|
|
$
|
|
|
|
Six Months Ended
June 30, 2020
|
||||
Revenues
|
||||
Institutional research services
|
$
|
|
||
Other
|
|
|||
Total revenues
|
|
|||
Expenses
|
||||
Compensation
|
|
|||
Other operating expenses
|
|
|||
Total expenses
|
|
|||
Operating loss
|
(
|
)
|
||
Other income (expense)
|
||||
Net loss from investments
|
|
|||
Interest and dividend income
|
|
|||
Total other income, net
|
|
|||
Income/(loss) from discontinued operations
before income taxes
|
(
|
)
|
||
Income tax provision/(benefit)
|
(
|
)
|
||
Income/(loss) from discontinued operations,
net of taxes
|
(
|
)
|
||
Net income/(loss) attributable to
noncontrolling interests
|
(
|
)
|
||
Net income/(loss) attributable to AC
shareholders discontinued operations, net of taxes
|
$
|
(
|
)
|
June 30, 2020
|
||||
Cash and cash
equivalents
|
$
|
|
||
Receivable from
affiliates
|
|
|||
Deferred tax assets
|
|
|||
Other assets
|
|
|||
Total assets of discontinued
operations
|
|
|||
Compensation payable
|
|
|||
Accrued expenses and other
liabilities
|
|
|||
Total liabilities of discontinued
operations
|
|
|||
Noncontrolling interests from
discontinued operations
|
|
|||
Net assets of discontinued
operations attributable to AC shareholders
|
$
|
|
Second Quarter
|
||||||||
2021
|
2020
|
|||||||
AUM - end of period (in millions)
|
$
|
1,611
|
$
|
1,305
|
||||
AUM - average (in millions)
|
1,570
|
1,355
|
||||||
Net income/(loss) per share-diluted
|
$
|
1.34
|
$
|
1.57
|
||||
Book Value Per Share
|
$
|
42.21
|
$
|
38.09
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Revenues
|
||||||||||||||||
Investment advisory and incentive fees
|
$
|
2,388
|
$
|
1,858
|
$
|
4,613
|
$
|
4,558
|
||||||||
Other
|
101
|
209
|
201
|
471
|
||||||||||||
Total revenues
|
2,489
|
2,067
|
4,814
|
5,029
|
||||||||||||
Expenses
|
||||||||||||||||
Compensation
|
5,023
|
3,148
|
8,891
|
5,380
|
||||||||||||
Management fee
|
4,320
|
-
|
6,983
|
-
|
||||||||||||
Other operating expenses
|
3,557
|
2,580
|
5,716
|
3,950
|
||||||||||||
Total expenses
|
12,900
|
5,728
|
21,590
|
9,330
|
||||||||||||
Operating loss
|
(10,411
|
)
|
(3,661
|
)
|
(16,776
|
)
|
(4,301
|
)
|
||||||||
Other income (expense)
|
||||||||||||||||
Net gain/(loss) from investments
|
42,306
|
51,685
|
73,627
|
(50,404
|
)
|
|||||||||||
Interest and dividend income
|
6,811
|
1,215
|
8,000
|
3,489
|
||||||||||||
Interest expense
|
(63
|
)
|
(65
|
)
|
(154
|
)
|
(114
|
)
|
||||||||
Shareholder-designated contribution
|
(439
|
)
|
2
|
(2,176
|
)
|
(225
|
)
|
|||||||||
Total other income (expense), net
|
48,615
|
52,837
|
79,297
|
(47,254
|
)
|
|||||||||||
Income/(loss) before income taxes
|
38,204
|
49,176
|
62,521
|
(51,555
|
)
|
|||||||||||
Income tax expense/(benefit)
|
9,020
|
11,241
|
14,610
|
(12,421
|
)
|
|||||||||||
Income/(loss) from continuing operations, net of taxes
|
29,184
|
37,935
|
47,911
|
(39,134
|
)
|
|||||||||||
Income/(loss) from discontinued operations, net of taxes
|
-
|
(262
|
)
|
-
|
(493
|
)
|
||||||||||
Income/(loss) before noncontrolling interests
|
29,184
|
37,673
|
47,911
|
(39,627
|
)
|
|||||||||||
Income/(loss) attributable to noncontrolling interests
|
(532
|
)
|
2,436
|
(360
|
)
|
(1,509
|
)
|
|||||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders
|
$
|
29,716
|
$
|
35,237
|
$
|
48,271
|
$
|
(38,118
|
)
|
|||||||
Net income/(loss) per share attributable to Associated Capital Group, Inc.’s shareholders:
|
||||||||||||||||
Basic - Continuing operations
|
$
|
1.34
|
$
|
1.58
|
$
|
2.18
|
$
|
(1.68
|
)
|
|||||||
Basic - Discontinued operations
|
-
|
(0.01
|
)
|
-
|
(0.02
|
)
|
||||||||||
Basic – Total
|
$
|
1.34
|
$
|
1.57
|
$
|
2.18
|
$
|
(1.70
|
)
|
|||||||
Diluted - Continuing operations
|
$
|
1.34
|
$
|
1.58
|
$
|
2.18
|
$
|
(1.68
|
)
|
|||||||
Diluted - Discontinued operations
|
-
|
(0.01
|
)
|
-
|
(0.02
|
)
|
||||||||||
Diluted - Total
|
$
|
1.34
|
$
|
1.57
|
$
|
2.18
|
$
|
(1.70
|
)
|
|||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
22,118
|
22,378
|
22,169
|
22,410
|
||||||||||||
Diluted
|
22,118
|
22,378
|
22,169
|
22,410
|
% Change From
|
||||||||||||||||||||
June 30,
2021
|
December 31,
2020
|
June 30,
2020
|
December 31,
2020
|
June 30,
2020
|
||||||||||||||||
Event Merger Arbitrage
|
$
|
1,364
|
$
|
1,126
|
$
|
1,147
|
21.18
|
18.93
|
||||||||||||
Event-Driven Value
|
201
|
180
|
104
|
11.41
|
93.86
|
|||||||||||||||
Other
|
46
|
45
|
54
|
1.98
|
(14.20
|
)
|
||||||||||||||
Total AUM
|
$
|
1,611
|
$
|
1,351
|
$
|
1,305
|
19.23
|
23.52
|
March 31,
2021
|
Market
appreciation/
(depreciation)
|
Net cash
flows
|
June 30,
2021
|
|||||||||||||
Event Merger Arbitrage
|
$
|
1,253
|
$
|
36
|
$
|
75
|
$
|
1,364
|
||||||||
Event-Driven Value
|
196
|
4
|
1
|
201
|
||||||||||||
Other
|
46
|
1
|
(1
|
)
|
46
|
|||||||||||
Total AUM
|
$
|
1,495
|
41
|
$
|
75
|
$
|
1,611
|
Six Months Ended June 30,
|
||||||||
2021
|
2020
|
|||||||
Cash flows provided by (used in) from continuing operations:
|
||||||||
Operating activities
|
$
|
231,661
|
$
|
(253,046
|
)
|
|||
Investing activities
|
5,602
|
(10,016
|
)
|
|||||
Financing activities
|
(7,501
|
)
|
(9,200
|
)
|
||||
Net increase from continuing operations
|
229,762
|
(272,262
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
39,509
|
342,001
|
||||||
Cash and cash equivalents at end of period
|
$
|
269,271
|
$
|
69,739
|
ITEM 4. |
Controls and Procedures
|
• |
the adverse effect from a decline in the securities markets
|
• |
a decline in the performance of our products
|
• |
a general downturn in the economy
|
• |
changes in government policy or regulation
|
• |
changes in our ability to attract or retain key employees
|
• |
unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations
|
ITEM 1A: |
Risk Factors.
|
ITEM 2: |
Unregistered Sales of Equity Securities And Use Of Proceeds
|
Period
|
Total
Number of
Shares
Repurchased
|
Average
Price Paid Per
Share, net of
Commissions
|
Total Number of
Shares
Repurchased as
Part of Publicly
Announced Plans
or Programs
|
Maximum
Number of Shares
That May Yet Be
Purchased Under
the Plans or
Programs
|
||||||||||||
04/01/21 - 04/30/21
|
33,913
|
$
|
34.44
|
33,913
|
740,102
|
|||||||||||
05/01/21 - 05/31/21
|
14,639
|
35.73
|
14,639
|
725,463
|
||||||||||||
06/01/21 - 06/30/21
|
5,440
|
37.13
|
5,440
|
720,023
|
||||||||||||
Totals
|
53,992
|
$
|
35.06
|
53,992
|
ITEM 6:
|
(a) Exhibits
|
Exhibit
Number
|
Description of Exhibit
|
Separation and Distribution Agreement, dated November 30, 2015, between GAMCO Investors, Inc., a Delaware corporation (“GAMCO”), and Associated Capital Group, Inc., a Delaware
corporation (the “Company”). (Incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K dated November 30, 2015 filed with the Securities and Exchange Commission on December 4, 2015).
|
|
Amended and Restated Certificate of Incorporation of the Company. (Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K dated November 19, 2015 filed with the
Securities and Exchange Commission on November 25, 2015).
|
|
Amended and Restated Bylaws of the Company. (Incorporated by reference to Exhibit 3.2 to the Company’s Report on Form 8-K dated November 19, 2015 filed with the Securities and
Exchange Commission on November 25, 2015).
|
|
Form of Common Stock Certificate. (Incorporated by reference to Exhibit 4.1 to Amendment No. 4 to the Company’s Registration Statement on Form 10 filed with the Securities and
Exchange Commission on October 21, 2015).
|
|
Description of The Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. (Incorporated by reference to Exhibit 4.2 of the Company’s
Report on Form 10-K filed with the Commission on March 16, 2020).
|
|
Service Mark and Name License Agreement, dated November 30, 2015, by and between the Company and GAMCO. (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K dated
November 30, 2015 filed with the Commission on December 4, 2015).
|
|
Transitional Administrative and Management Services Agreement, dated November 30, 2015, by and between the Company and GAMCO. (Incorporated by reference to Exhibit 10.2 to the
Company’s Form 8-K dated November 30, 2015 filed with the Commission on December 4, 2015).
|
|
Employment Agreement between the Company and Mario J. Gabelli dated November 30, 2015 (Incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K dated November 30, 2015
filed with the Commission on December 4, 2015).
|
|
Promissory Note in aggregate principal amount of $250,000,000, dated November 30, 2015, issued by GAMCO in favor of the Company (Incorporated by reference to Exhibit 10.4 to the
Company’s Form 8-K dated November 30, 2015 filed with the Commission on December 4, 2015).
|
|
Tax Indemnity and Sharing Agreement, dated November 30, 2015, by and between the Company and GAMCO. (Incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K dated
November 30, 2015 filed with the Commission on December 4, 2015).
|
|
2015 Stock Award Incentive Plan (Incorporated by reference to Exhibit 10.11 to Amendment No. 4 to the Company’s Registration Statement on Form 10 filed with the Securities and
Exchange Commission on October 21, 2015).
|
|
Form of Indemnification Agreement by and between the Company and the Indemnitee defined therein (Incorporated by reference to Exhibit 10.7 to Amendment No. 4 to the Company’s
Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 21, 2015).
|
|
Agreement and Plan of Merger, dated as of October 31, 2019, by and among Morgan Group Holding Co., G.R. acquisition, LLC, G.research, LLC, Institutional Services Holdings, LLC and
Associated Capital Group, Inc. (Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of Morgan Group Holding Co. filed with the Securities and Exchange Commission on November 6, 2019).
|
|
Certification of CEO pursuant to Rule 13a-14(a).
|
Certification of CFO 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 CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
ASSOCIATED CAPITAL GROUP, INC.
(Registrant)
|
||
By: /s/
|
Timothy H. Schott
|
|
Name:
|
Timothy H. Schott
|
|
Title:
|
Chief Financial Officer
|
|
Date: August 5, 2021
|