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TheStreet Open House

GAMCO Investors, Inc. Reports Record Third Quarter Results

GAMCO Investors, Inc. (“GAMCO”) (NYSE:GBL) today reported its 2013 third quarter results including revenues of $96.4 million, net income of $33.1 million and earnings per diluted share of $1.29. On a comparable basis, revenues were $82.2 million, net income was $19.0 million, and earnings per diluted share were $0.72 in the third quarter of 2012.

Assets Under Management (“AUM”) rose to a record $43.5 billion, up 7.5% from $40.5 billion at June 30, 2013 and up 17.8% from $36.9 billion at September 30, 2012.

Results for the first nine months of 2013 include revenues of $274.8 million, net income of $83.5 million and earnings per diluted share of $3.25, an increase of 48.4% from earnings of $2.19 in the first nine months of 2012.

 
Financial Highlights           Third Quarter     Year-to-date
($'s in 000's except AUM and per share data) 2012     2013

% ∆

    2012     2013    

% ∆

 
AUM - end of period (in millions) $ 36,945 $ 43,507 17.8 % $ 36,945 $ 43,507 17.8 %
AUM - average (in millions) 36,351 42,620 17.2 35,971 40,478 12.5
 
Revenues 82,231 96,377 17.2 245,004 274,848 12.2
 
Operating income before management fee 32,068 38,357 19.6 96,246 109,694 14.0
Operating margin before management fee 39.0 % 39.8 % 39.3 % 39.9 %
 
Operating income after management fee 29,012 32,728 12.8 86,391 95,239 10.2
Operating margin after management fee 35.3 % 34.0 % 35.3 % 34.7 %
 
Extinguishment of Debt (6,305 ) - (6,307 ) (137 )
Other income/(expense), net (1,446 ) 17,991 2,446 34,991
 
Income before income taxes 27,566 50,719 84.0 88,837 130,230 46.6
Effective tax rate 30.7 % 34.5 % 34.8 % 35.7 %
 
Net income 19,004 33,098 74.2 57,945 83,536 44.2
Net income per share $ 0.72 (a) $ 1.29 (b) 79.2 % $ 2.19 (a) $ 3.25 (b) 48.4 %
 
Shares outstanding at September 30             26,606           26,017                 26,606           26,017          

(a)

 

After a $0.08 per fully diluted share charge for the three and nine months ended September 30, 2012 related to the extinguishment of debt from the Dutch Auction of the 0% Subordinated Debentures.

(b)

After a $0.01 per fully diluted share charge in the third quarter of 2013 for shareholder-designated charitable contribution program and $0.12 per fully diluted share charge for the nine months ended September 30, 2013.

 

Assets Under Management

Total firm AUM increased to a record $43.5 billion at September 30, 2013, up $3.0 billion from the second quarter and $6.6 billion higher than the third quarter of 2012. Our third quarter 2013 net inflows were $618 million, market appreciation totaled $2.6 billion and net open- and closed-end fund distributions were $146 million.

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