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GAMCO Investors, Inc. Reports Second Quarter Results

Stocks in this article: GBL

GAMCO Investors, Inc. (GAMCO) (NYSE: GBL) today announced second quarter 2012 earnings of $15.1 million or $0.57 per fully diluted share versus $20.6 million or $0.77 per fully diluted share in the second quarter 2011.

Revenues were $81.0 million in the second quarter of 2012, down $4.1 million, or 4.8%, from $85.1 million in the prior year quarter. Included in revenues were incentive fees of $1.1 million for the second quarter of 2012, down from the $3.3 million included in the second quarter of 2011. Operating income before management fee was $33.0 million, a 3.3% decrease from the record $34.1 million in the prior year period as operating margin before management fee expands to 40.7% from 40.1%.

For the six months ended June 30, 2012, earnings were $38.9 million or $1.47 per fully diluted share versus $38.3 million or $1.42 per fully diluted share in 2011. Included in the first half of 2011 was $5.6 million, or $0.12 per diluted share, of one-time costs directly related to the launch of a new closed-end fund.

                       
                                     
Financial Highlights Second Quarter Year-to-date
($'s in 000's except AUM and per share data) 2012       2011

%

2012       2011

%

 
AUM (in millions) $ 35,662 $ 36,137 (1.3%) $ 35,662 $ 36,137 (1.3%)
Revenues 81,024 85,081 (4.8) 162,773 161,986 0.5
Operating income:
before management fee 32,982 34,123 (3.3) 64,178 57,996 10.7
after management fee 30,367 30,497 (0.4) 57,379 51,257 11.9
Operating margin:
before management fee 40.7% 40.1% 39.4% 35.8%
after management fee 37.5% 35.8% 35.3% 31.6%
Other income/(expense), net (6,818) 2,127 n/m 3,892 9,936 n/m
Net income attributable to GAMCO 15,105 20,647 (26.8) 38,941 38,290 1.7
Net income attributable to GAMCO per share $ 0.57 $ 0.77 (26.0%) $ 1.47 $ 1.42 3.5%
Shares outstanding at June 30         26,631       26,790               26,631       26,790          
 
 

Shareholders’ book value was $426.7 million or $16.02 per share at June 30, 2012. We ended the quarter with cash and investments of approximately $735.8 million and $265.6 million (face value of $285.3 million) of debt. On July 9, 2012, $55.8 million of our own liquidity was used to repurchase $64.1 million aggregate principal of the 0% Subordinated Debentures due 2015.

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