GAMCO Investors, Inc. Reports Third Quarter Results

GAMCO Investors, Inc. ("GAMCO" or the "Company") (NYSE:GBL) today reported financial results for the third quarter including revenues of $87.7 million, net income of $30.9 million and earnings of $1.03 per diluted share. On a comparable continuing operations basis, revenues were $92.2 million, net income was $22.5 million, and earnings were $0.89 per diluted share in the third quarter of 2015.
Financial Highlights                    
Third Quarter YTD
($'s in 000's except AUM and per share data) 2016 (a) 2015 (b) 2016 (a) 2015 (b)
 
AUM - end of period (in millions) $ 39,581 $ 38,490 $ 39,581 $ 38,490
AUM - average (in millions) 39,883 41,586 38,727 44,231
 
Revenues 87,721 92,160 253,050 290,659
 
Operating income 48,076 37,276 139,765 114,847
Operating margin 54.8 % 40.4 % 55.2 % 39.5 %
 
Other expense, net (2,729 ) (1,190 ) (8,107 ) (3,771 )
 
Income before income taxes 45,347 36,086 131,658 111,076
Effective tax rate 31.9 % 37.8 % 35.9 % 37.5 %
 
Income from continuing operations 30,861 22,451 84,429 69,374
 
Loss from discontinued operations - (7,482 ) - (5,528 )
 
Net income 30,861 14,969 84,429 63,846
 
Income per share - continuing operations $ 1.03 $ 0.89 $ 2.85 $ 2.74
 
Loss per share - discontinued operations $ - (0.30 ) $ - (0.23 )
 
Net income per share $ 1.03 $ 0.59 $ 2.85 $ 2.51
 
Shares outstanding at September 30 (c) 29,548 25,538 29,548 25,538

 
(a)   See page 3 for discussion of deferred compensation impact.
(b) Adjusted for spin-off of AC.
(c) Shares outstanding consist of 29,121 non-RSA shares and 427 RSA shares at September 30, 2016 and 24,849 non-RSA shares and 689 RSA shares at September 30, 2015.
 

Assets Under Management
             
% Change From
September 30, December 31, September 30, December 31, September 30,
2016 2015 2015 2015 2015
Equities:
Open-end Funds $ 13,799 $ 13,811 $ 14,075 (0.1 %) (2.0 %)
Closed-end Funds 7,178 6,492 6,205 10.6 15.7
Institutional & PWM - direct 13,245 13,366 13,190 (0.9 ) 0.4
Institutional & PWM - sub-advisory 3,542 3,401 3,302 4.1 7.3
SICAV   42   37   36 13.5 16.7
Total Equities   37,806   37,107   36,808 1.9 2.7
Fixed Income:
Money-Market Fund 1,738 1,514 1,637 14.8 6.2
Institutional & PWM   37   38   45 (2.6 ) (17.8 )
Total Fixed Income   1,775   1,552   1,682 14.4 5.5
Total Assets Under Management $ 39,581 $ 38,659 $ 38,490 2.4 2.8

 
Institutional & PWM - direct includes $286 million, $226 million and $227 million of Money Market Fund AUM at September 30, 2016, December 31, 2015 and September 30, 2015, respectively.
 

Average AUM were $39.9 billion for the third quarter of 2016 versus $38.9 billion for the second quarter of 2016 and $41.6 billion for the third quarter of 2015.

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