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||
|AUM (in millions)||$ 35,662||$ 36,137||(1.3%)||$ 35,662||$ 36,137||(1.3%)|
|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|
|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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