GAMCO Investors, Inc. (GAMCO) (NYSE: GBL) announced third quarter 2012 earnings of $19.0 million or $0.72 per fully diluted share versus $7.7 million or $0.29 per fully diluted share in the third quarter 2011. Third quarter 2012 earnings include a charge of $2.1 million or $0.08 per diluted share, (net of management fee and tax benefit), for the Dutch Auction of the 0% coupon notes (extinguishment of debt).
Revenues in the third quarter of 2012 were $82.2 million, including incentive fees of $0.8 million, up $2.0 million, or 2.6%, from $80.2 million, including $1.0 million in incentive fees, in the prior year quarter. Operating income before management fee was $32.1 million, a 0.1% increase from the $32.0 million in the prior year period as operating margin before management fee fell slightly to 39.0% from 40.0%.
For the nine months ended September 30, 2012, earnings were $57.9 million or $2.19 per fully diluted share versus $46.0 million or $1.72 per fully diluted share in 2011. The first nine months of 2011 had $5.6 million, or $0.12 per diluted share, of one-time costs directly related to the launch of a new closed-end fund.
|Financial Highlights||Third Quarter||Year-to-date|
|($'s in 000's except AUM and per share data)||2012||2011||% ∆||2012||2011||% ∆|
|AUM (in millions)||$||36,945||$||31,342||17.9||%||$||36,945||$||31,342||17.9||%|
|before management fee||32,068||32,048||0.1||96,246||90,044||6.9|
|after management fee||29,012||30,661||(5.4||)||86,391||81,918||5.5|
|before management fee||39.0||%||40.0||%||39.3||%||37.2||%|
|after management fee||35.3||%||38.3||%||35.3||%||33.8||%|
|Extinguishment of debt||(6,305||)||-||n/m||(6,307||)||-||n/m|
|Other income/(expense), net||(1,446||)||(a)||(18,747||)||n/m||2,446||(8,811||)||n/m|
|Net income attributable to GAMCO||19,004||7,699||146.8||57,945||45,989||26.0|
|Net income attributable to GAMCO per share||$||0.72||$||0.29||148.3||%||$||2.19||$||1.72||27.3||%|
|Shares outstanding at September 30||26,606||26,773||26,606||26,773|
|(a) After charge of $6,305 relating to extinguishment of debt.|
Shareholders’ book value was $440.0 million or $16.54 per share at September 30, 2012. We ended the quarter with cash and investments of approximately $690.9 million and $216.1 million ($220.8 million face value) of debt.
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