GAMCO Investors, Inc. Reports Second Quarter Results

  • Second Quarter Earnings of $0.95 per diluted share
  • AUM at $45.4 billion

RYE, N.Y.--()--GAMCO Investors, Inc. (“GAMCO”) (NYSE:GBL) today reported its 2015 second quarter results including revenues of $102.7 million, net income of $24.1 million and earnings of $0.95 per diluted share. On a comparable basis, revenues were $108.3 million, net income was $29.0 million, and earnings were $1.13 per diluted share in the second quarter of 2014.

“The Tug of War Over Capital Allocation”

Assets Under Management (“AUM”) were $45.4 billion at June 30, 2015 versus $46.5 billion at March 31, 2015 and $49.4 billion at June 30, 2014.

 
Financial Highlights   Q2   Q2     YTD   YTD  
($'s in 000's except AUM and per share data) 2015 2014

% ∆

2015 2014

% ∆

 
AUM - end of period (in millions) $ 45,414 $ 49,377 (8.0 %) $ 45,414 $ 49,377 (8.0 %)
AUM - average (in millions) 46,448 48,132 (3.5 ) 46,620 47,556 (2.0 )
 
Revenues 102,704 108,296 (5.2 ) 206,549 212,773 (2.9 )
 
Operating income before management fee (a) 39,190 42,681 (b) (8.2 ) 77,572 (c) 83,908 (7.6 )
Operating margin before management fee 38.2 % 39.4 % 37.6 % 39.4 %
 
Operating income 34,949 37,537 (b) (6.9 ) 68,894 (c) 74,036 (6.9 )
Operating margin 34.0 % 34.7 % 33.4 % 34.8 %
 
Other income, net 3,221 8,921 9,214 15,014
 
Income before income taxes 38,170 46,458 (17.8 ) 78,108 89,050 (12.3 )
Effective tax rate 37.0 % 36.9 % 37.5 % 35.7 %
 
Net income 24,101 28,950 (16.7 ) 48,877 56,904 (14.1 )
 
Net income per share $ 0.95 $ 1.13 (15.9 %) $ 1.93 $ 2.22 (13.1 %)
 
Shares outstanding at June 30     25,725       25,899             25,725         25,899      

(a)

 

See GAAP to non-GAAP reconciliation on page 10.

(b)

Second quarter 2015 included $1.2 million of incremental costs as compared to second quarter 2014:

$0.6 million for potential firm restructuring; and $0.6 million in non-cash RSA expense.

(c)

Year to date 2015 included $3.6 million of incremental costs as compared to year to date 2014:

$1.0 million for the launch of a new closed-end fund; $1.5 million for potential firm restructuring; and $1.1 million in non-cash RSA expense.
 

Assets Under Management

 
        % Change From
June 30, March 31, June 30, March 31,   June 30,
2015 2015 2014 2015 2014
Equities:
Open-end Funds $

15,984

 

$

16,643

 

$

18,508

 

(4.0 %) (13.6 %)
Closed-end Funds 6,981 7,071 7,224 (1.3 ) (3.4 )
Institutional & PWM - direct 16,011 16,407 16,941 (2.4 ) (5.5 )
Institutional & PWM - sub-advisory 3,703 3,814 3,883 (2.9 ) (4.6 )
Investment Partnerships 937 928 897 1.0 4.5
SICAV (a)   152     105     94   44.8 61.7
Total Equities   43,768     44,968     47,547   (2.7 ) (7.9 )
Fixed Income:
Money-Market Fund 1,600 1,520 1,766 5.3 (9.4 )
Institutional & PWM   46     52     64   (11.5 ) (28.1 )
Total Fixed Income   1,646     1,572     1,830   4.7 (10.1 )
Total Assets Under Management $ 45,414   $ 46,540   $ 49,377   (2.4 ) (8.0 )
(a)   Includes $45 million, $40 million and $77 million of seed capital at June 30, 2015, March 31, 2015 and June 30, 2014, respectively.
 

Our second quarter 2015 decline in AUM was due to net outflows of $882 million, open- and closed-end fund net distributions of $132 million and market depreciation of $112 million.

Revenues

  • Total revenues for the second quarter of 2015 were $102.7 million, down 5.2% from $108.3 million in the prior year reflecting lower fees earned in investment advisory, distribution and other income and institutional research services.
  • Investment advisory fees, excluding incentive fees, were lower at $87.1 million in the second quarter of 2015 from $89.7 million in the comparable 2014 quarter. Revenues in our open-end funds and Institutional and Private Wealth Management decreased due to a decline of average AUM in the open-end funds and lower billable assets in our Institutional and Private Wealth Management accounts which were partially offset by revenue increases in investment partnerships and closed-end funds on higher levels of average AUM.
  • Incentive fees earned were $0.2 million during the 2015 quarter versus $0.5 million reported in the second quarter of 2014.
  • Distribution fees from our open-end equity mutual funds and other income were $13.4 million for the second quarter 2015, a reduction of $2.4 million, or 15.3%, from $15.8 million in the prior year quarter. Driving this decrease is a 15.2% decline in quarter over quarter average AUM and a shift to Class I shares for which we do not collect a distribution fee.
  • Our institutional research services revenues were $2.0 million in the second quarter 2015, compared to $2.4 million in the prior year period.

Operating Income – Second Quarter

Operating income, which is net of management fee expense decreased 6.9%, or $2.6 million, to $34.9 million in the second quarter of 2015 versus $37.5 million in the prior year period. Management fee expense, which is entirely variable, is based on pre-tax income. The second quarter of 2015 was impacted by lower revenues and $1.2 million of incremental costs: $0.6 million related to a potential firm restructuring; and $0.6 million in incremental non-cash expenses related to RSAs issued subsequent to the second quarter of 2014. Excluding those incremental costs identified above, adjusted operating income was $36.1 million in the second quarter of 2015, a decline of $1.4 million, from the $37.5 million in the second quarter of 2014.

Operating income before management fee was $39.2 million in the second quarter 2015 versus $42.7 million in the second quarter 2014. Operating margin before management fee was 38.2% versus 39.4% in the second quarter of 2014. Excluding those incremental costs identified above, adjusted operating income before management fee was $40.4 million in the second quarter of 2015 as compared to $42.7 million in the second quarter of 2014. Operating margins, before management fee and adjusted for those items identified above, was 39.3% in the 2015 quarter as compared to 39.4% in the 2014 quarter. Management believes evaluating operating income before management fee is an important measure in analyzing the Company’s operating results. Further information regarding Non-GAAP measures is included in Notes on Non-GAAP Financial Measures and Table V included elsewhere herein.

Other income

We recognized net other income of $3.2 million in the 2015 quarter versus $8.9 million in the second quarter of 2014. Investment gains were $3.9 million in the 2015 quarter versus $9.6 million in the 2014 quarter. Dividend and interest income were $1.3 million in both quarters. Interest expense was $2.0 million in each period.

Income Taxes

The firm’s effective tax rate (“ETR”) for the quarter ended June 30, 2015 was 37.0% versus 36.9% for the quarter ended June 30, 2014.

Business and Investment Highlights

  • On May 12, 2015, we filed a Form 10 detailing the planned spin-off of our Alternative Investments and Institutional Research Services businesses as a separate public company.
  • On July 23, 2015, Dinsmore Capital Management and Gabelli Funds announced the signing of an alliance to manage convertible portfolios. Subject to approval by the shareholders of the Bancroft Fund and the Ellsworth Growth and Income Fund, Gabelli Funds will form the Dinsmore Group which will contribute to the management of The Gabelli Convertible and Income Securities Fund.
  • In May 2015, Gabelli & Company hosted its 9th annual Omaha research trip in conjunction with the Berkshire Hathaway Annual Meeting as well as its 7th annual Movie & Entertainment Conference
  • At our 30th GAMCO client conference held at the Pierre Hotel in New York City on May 15th, we inducted four new members into our GAMCO Management Hall of Fame. The inductees were: Ward M. Klein of Energizer Holdings, Inc., Michael D. White of DIRECTV, David F. Melcher of Exelis, Inc. and James F. Cleary, Jr. of MWI Veterinary Supply, Inc. Additionally, we named Leon Cooperman as the 2015 recipient of the Graham & Dodd, Murray, Greenwald Prize for Value Investing.
  • We hosted our 7th symposium on July 22nd at the Paley Center for Media entitled the “The Tug of War Over Capital Allocation”. The focus of our highly regarded panelists was on the critical interplay between shareholder compensation and expenditures for R&D and capex.
  • On July 21st GAMCO announced a reorganization of its Sales & Marketing leadership designed to re-organize and coordinate our organization’s focus on sales and marketing initiatives in our various investment segments.

Balance Sheet

We ended the quarter with cash and investments, excluding noncontrolling interests, of $742.9 million, debt of $106.6 million ($106.9 million face value) and equity attributable to GAMCO shareholders of $564.4 million. We have $500 million available on our universal shelf registration. Together with earnings from operations, the shelf provides us with flexibility to do acquisitions, lift-outs, seed new investment strategies, and co-invest, as well as to fund shareholder compensation, including share repurchases and dividends.

Shareholder Compensation

During the quarter ended June 30, 2015, we returned $9.6 million of our earnings to shareholders through dividends and stock repurchases. We repurchased 108,088 shares at an average price of $72.34 per share, for a total investment of $7.8 million and distributed $1.8 million in dividends. Since our IPO, in February 1999, we have returned nearly $894 million in total to shareholders of which $482 million was in the form of dividends and $412 million was through stock buybacks of 9,275,506 shares at an average investment of $44.40 per share.

On August 4, 2015, GAMCO’s Board of Directors declared a regular quarterly dividend of $0.07 per share payable on September 29, 2015 to its Class A and Class B shareholders of record on September 15, 2015. Additionally, the Board of Directors increased the share buyback authorization by an additional 500,000 shares. As a result, there are 814,502 shares available to be repurchased under our existing buyback plan.

About GAMCO Investors, Inc.

GAMCO Investors, Inc., through its subsidiaries, manages private advisory accounts (GAMCO Asset Management Inc.), mutual funds and closed-end funds (Gabelli Funds, LLC), and partnerships and offshore funds (Gabelli Securities, Inc.).

NOTES ON NON-GAAP FINANCIAL MEASURES

 
A.   Operating income before management fee expense is used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of GAMCO Investors, Inc. (the “Company”) as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense. The reconciliation of operating income before management fee expense to operating income is provided in Table V.
 
B. Operating income before management fee expense per share and other income/(expense), net per share are used by management for purposes of evaluating its business operations. We believe these measures are useful in comparing the operating and non-operating results of the Company for the purposes of understanding the composition of net income per fully diluted share. The negative swings in other income/(expense), net of $0.11 and $0.12 per fully diluted share for the quarter and year to date, respectively, are derived by making certain necessary adjustments, as shown in the table below, to arrive at a net impact for each period and then calculating the difference. The reconciliation of operating income before management fee expense per share and other income/(expense), net per share to net income per fully diluted share, is provided below.
  2nd Quarter   YTD June
2015   2014 2015   2014
Operating income before management fee $ 39,190 $ 42,681 $ 77,572 $ 83,908
Management fee expense (3,919 ) (4,252 ) (7,757 ) (8,371 )
Tax expense (13,050 ) (14,174 ) (26,191 ) (26,933 )
Noncontrolling interest expense   138     87     259     166  
Operating income (after management fee and taxes)   22,359     24,342     43,883     48,770  
Per fully diluted share $ 0.88   $ 0.95   $ 1.73   $ 1.90  
 
Other income, net $ 3,221 $ 8,921 $ 9,214 $ 15,014
Management fee expense (322 ) (892 ) (921 ) (1,501 )
Tax expense (1,073 ) (2,961 ) (3,111 ) (4,818 )
Noncontrolling interest (expense)/benefit   (84 )   (460 )   (188 )   (561 )
Other income, net (after management fee and taxes) $ 1,742   $ 4,608   $ 4,994   $ 8,134  
Per fully diluted share $ 0.07   $ 0.18   $ 0.20   $ 0.32  
 
Net income per fully diluted share $ 0.95   $ 1.13   $ 1.93   $ 2.22  
Diluted weighted average shares outstanding   25,358     25,586     25,386     25,635  
C.   Adjusted operating income and adjusted operating income before management fee expense is used by management to evaluate its ongoing business operations. We believe this measure is useful in evaluating the ongoing operating results of the Company absent any of these adjustments.
  2nd Quarter   YTD June
2015   2014 2015   2014
Operating income before management fee $ 39,190 $ 42,681 $ 77,572 $ 83,908
Adjustments:
Add back: Incremental RSA expense 570 - 1,147 -
Costs to launch Closed-end fund - - 1,000 -
Costs related to potential firm restructuring 625 - 1,475 -
Deduct: Reimbursement of prior year expense   -     -     -     (438 )
Adjusted operating income before management fee   40,385     42,681     81,194     83,470  
Adjusted operating margin before management fee   39.3 %   39.4 %   39.3 %   39.2 %
 
 
2nd Quarter YTD June
2015 2014 2015 2014
Operating income $ 34,949 $ 37,537 $ 68,894 $ 74,036
Adjustments:
Add back: Incremental RSA expense 570 - 1,147 -
Costs to launch Closed-end fund - - 1,000 -
Costs related to potential firm restructuring 625 - 1,475 -
Deduct: Reimbursement of prior year expense   -     -     -     (438 )
Adjusted operating income   36,144     37,537     72,516     73,598  
Adjusted operating margin   35.2 %   34.7 %   35.1 %   34.6 %
 
The Company reported Assets Under Management as follows (in millions):
 
Table I: Fund Flows - 2nd Quarter 2015
        Fund  
Market distributions,
March 31, appreciation/ Net cash net of June 30,
2015 (depreciation)   flows reinvestments 2015
Equities:
Open-end Funds $

16,643

 

$ (106 ) $ (538 ) $ (15 ) $

15,984

 

Closed-end Funds 7,071 29 (2 ) (117 ) 6,981
Institutional & PWM - direct 16,407 (15 ) (381 ) - 16,011
Institutional & PWM - sub-advisory 3,814 (29 ) (82 ) - 3,703
Investment Partnerships 928 8 1 - 937
SICAV (a)   105     1     46     -     152  
Total Equities   44,968     (112 )   (956 )   (132 )   43,768  
Fixed Income:
Money-Market Fund 1,520 - 80 - 1,600
Institutional & PWM   52     -     (6 )   -     46  
Total Fixed Income   1,572     -     74     -     1,646  
Total Assets Under Management $ 46,540   $ (112 ) $ (882 ) $ (132 ) $ 45,414  
 

(a) Includes $40 million and $45 million of seed capital at March 31, 2015 and June 30, 2015, respectively.

 
The Company reported Assets Under Management as follows (in millions):
 
Table II: Fund Flows - Year to date June 2015
        Fund  
Market distributions,
December 31, appreciation/ Net cash net of June 30,
2014 (depreciation)   flows reinvestments 2015
Equities:
Open-end Funds

$

17,684

 

$ 79 $ (1,737 ) $ (42 )

$

15,984

 

Closed-end Funds 6,949 122 143 (233 ) 6,981
Institutional & PWM - direct 16,597 125 (711 ) - 16,011
Institutional & PWM - sub-advisory 3,704 143 (144 ) - 3,703
Investment Partnerships 905 27 5 - 937
SICAV (a)   135     (4 )   21     -     152  
Total Equities   45,974     492     (2,423 )   (275 )   43,768  
Fixed Income:
Money-Market Fund 1,455 - 145 - 1,600
Institutional & PWM   58     -     (12 )   -     46  
Total Fixed Income   1,513     -     133     -     1,646  
Total Assets Under Management $ 47,487   $ 492   $ (2,290 ) $ (275 ) $ 45,414  
 

(a) Includes $71 million and $45 million of seed capital at December 31, 2014 and June 30, 2015, respectively.

 
Table III
 
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
 
  For the Quarter Ended June 30,
    % Inc.
2015 2014 (Dec.)
 
Investment advisory and incentive fees $ 87,344 $ 90,156 (3.1 %)
Distribution fees and other income 13,358 15,767 (15.3 )
Institutional research services   2,002     2,373   (15.6 )
Total revenues 102,704 108,296 (5.2 )
 
Compensation costs 43,402 44,045 (1.5 )
Distribution costs 13,120 15,023 (12.7 )
Other operating expenses   6,992     6,547   6.8
Total expenses 63,514 65,615 (3.2 )
 
Operating income before management fee 39,190 42,681 (8.2 )
 
Investment income 5,184 10,942
Interest expense   (1,963 )   (2,021 )
Other income, net   3,221     8,921  
 
Income before management fee and income taxes 42,411 51,602 (17.8 )
Management fee expense   4,241     5,144  
Income before income taxes 38,170 46,458 (17.8 )
Income tax expense   14,123     17,135  
Net income 24,047 29,323 (18.0 )
Net income/(loss) attributable to noncontrolling interests   (54 )   373  
Net income attributable to GAMCO Investors, Inc. $ 24,101   $ 28,950   (16.7 )
 
Net income per share attributable to GAMCO Investors, Inc.:
Basic $ 0.96   $ 1.14   (15.8 )
 
Diluted $ 0.95   $ 1.13   (15.9 )
 
Weighted average shares outstanding:
Basic   25,065     25,381   (1.2 )
 
Diluted   25,358     25,586   (0.9 )
 
Actual shares outstanding (a)   25,725     25,899   (0.7 )
 
Notes:
(a) Includes 704,050 and 564,250 of RSAs, respectively.
See GAAP to non-GAAP reconciliation on page 10.
 
Table IV
 
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
 
  For the Six Months Ended June 30,
    % Inc.
2015 2014 (Dec.)
 
Investment advisory and incentive fees $ 175,381 $ 177,953 (1.4 %)
Distribution fees and other income 27,101 30,640 (11.6 )
Institutional research services   4,067     4,180   (2.7 )
Total revenues 206,549 212,773 (2.9 )
 
Compensation costs 87,896 87,942 (0.1 )
Distribution costs 27,403 28,986 (5.5 )
Other operating expenses   13,678     11,937   14.6
Total expenses 128,977 128,865 0.1
 
Operating income before management fee 77,572 83,908 (7.6 )
 
Investment income 13,196 19,027
Interest expense   (3,982 )   (4,013 )
Other income, net   9,214     15,014  
 
Income before management fee and income taxes 86,786 98,922 (12.3 )
Management fee expense   8,678     9,872  
Income before income taxes 78,108 89,050 (12.3 )
Income tax expense   29,302     31,751  
Net income 48,806 57,299 (14.8 )
Net income/(loss) attributable to noncontrolling interests   (71 )   395  
Net income attributable to GAMCO Investors, Inc. $ 48,877   $ 56,904   (14.1 )
 
Net income per share attributable to GAMCO Investors, Inc.:
Basic $ 1.95   $ 2.24   (12.9 )
 
Diluted $ 1.93   $ 2.22   (13.1 )
 
Weighted average shares outstanding:
Basic   25,098     25,431   (1.3 )
 
Diluted   25,386     25,635   (1.0 )
 
Actual shares outstanding (a)   25,725     25,899   (0.7 )
 
Notes:
(a) Includes 704,050 and 564,250 of RSAs, respectively.
See GAAP to non-GAAP reconciliation on page 10.
 
Table V
GAMCO INVESTORS, INC.
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
 
  2015   2014
1st   2nd   1st   2nd   3rd   4th  
Quarter Quarter YTD Quarter Quarter Quarter Quarter Full Year
Income Statement Data:
 
Revenues $ 103,845 $ 102,704 $ 206,549 $ 104,477 $ 108,296 $ 110,858 $ 116,751 $ 440,382
 
Expenses   65,463     63,514     128,977     63,250     65,615     63,516     69,848     262,229  
 

Operating income before management fee

38,382 39,190 77,572 41,227 42,681 47,342 46,903 178,153
 
Investment income/(loss) 8,012 5,184 13,196 8,085 11,076 (8,002 ) 5,119 16,278
Interest expense (2,019 ) (1,963 ) (3,982 ) (1,992 ) (2,021 ) (1,987 ) (2,049 ) (8,049 )
Shareholder-designated contribution   -     -     -     -     (134 )   -     -     (134 )
Other income/(expense), net 5,993 3,221 9,214 6,093 8,921 (9,989 ) 3,070 8,095
 

Income before management fee and income taxes

44,375 42,411 86,786 47,320 51,602 37,353 49,973 186,248
Management fee expense   4,437     4,241     8,678     4,728     5,144     3,756     4,999     18,627  
Income before income taxes 39,938 38,170 78,108 42,592 46,458 33,597 44,974 167,621
Income tax expense   15,179     14,123     29,302     14,616     17,135     13,045     17,709     62,505  
Net income 24,759 24,047 48,806 27,976 29,323 20,552 27,265 105,116

Net income/(loss) attributable to noncontrolling interests

  (17 )   (54 )   (71 )   22     373     (3,113 )   (1,556 )   (4,274 )

Net income attributable to GAMCO Investors, Inc.

$ 24,776   $ 24,101   $ 48,877   $ 27,954   $ 28,950   $ 23,665   $ 28,821   $ 109,390  
 

Net income per share attributable to GAMCO Investors, Inc.:

Basic $ 0.99   $ 0.96   $ 1.95   $ 1.10   $ 1.14   $ 0.94   $ 1.14   $ 4.32  
 
Diluted $ 0.97   $ 0.95   $ 1.93   $ 1.09   $ 1.13   $ 0.93   $ 1.13   $ 4.28  
 
Weighted average shares outstanding:
Basic   25,132     25,065     25,098     25,481     25,381     25,296     25,184     25,335  
 
Diluted   25,414     25,358     25,386     25,684     25,586     25,517     25,449     25,558  

Reconciliation of non-GAAP financial measures to GAAP:

Operating income before management fee

38,382 39,190 77,572 41,227 42,681 47,342 46,903 178,153
Deduct: management fee expense   4,437     4,241     8,678     4,728     5,144     3,756     4,999     18,627  
Operating income $ 33,945   $ 34,949   $ 68,894   $ 36,499   $ 37,537   $ 43,586   $ 41,904   $ 159,526  
 

Operating margin before management fee

  37.0 %   38.2 %   37.6 %   39.5 %   39.4 %   42.7 %   40.2 %   40.5 %

Operating margin after management fee

  32.7 %   34.0 %   33.4 %   34.9 %   34.7 %   39.3 %   35.9 %   36.2 %
 
Table VI
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
 
  June 30,   December 31,   June 30,
2015 2014 2014
 
ASSETS
 
Cash and cash equivalents

$

372,284

 

$

298,224

 

$

307,490

 

Investments (a) 379,263 406,711 374,283
Receivable from brokers 56,579 76,079 58,945
Other receivables 40,001 67,228 43,875
Income tax receivable 2,303 2,477 1,077
Other assets   15,556     15,711     19,132  
 
Total assets $ 865,986   $ 866,430   $ 804,802  
 
LIABILITIES AND EQUITY
 
Payable to brokers $ 48,858 $ 43,409 $ 19,859
Income taxes payable and deferred tax liabilities 21,266 27,939 31,029
Compensation payable 68,889 39,983 68,908
Securities sold short, not yet purchased 9,825 10,595 14,329
Accrued expenses and other liabilities   37,458     36,212     38,823  
Sub-total 186,296 158,138 172,948
 
5.875% Senior notes (due June 1, 2021) 100,000 100,000 100,000
0% Subordinated Debentures (due December 31, 2015) (b)   6,628     12,163     11,813  
Total debt   106,628     112,163     111,813  
Total liabilities 292,924 270,301 284,761
 
Redeemable noncontrolling interests 5,943 68,334 22,806
 
GAMCO Investors, Inc.'s stockholders' equity 564,430 525,061 494,418
Noncontrolling interests   2,689     2,734     2,817  
Total equity   567,119     527,795     497,235  
 
Total liabilities and equity $ 865,986   $ 866,430   $ 804,802  
(a)   Includes investments in sponsored registered investment companies of $126.3 million, $39.5 million and $40.8 million, respectively.
(b) The 0% Subordinated Debentures due December 31, 2015 have a face value of $6.9 million, $13.1 million and $13.2 million, respectively.
 

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe. Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10-K and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.

Contacts

GAMCO Investors, Inc.
Douglas R. Jamieson, 914-921-5020
President and Chief Operating Officer
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