Form 8-K GAMCO INVESTORS, INC. For: May 03

---

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) May 3, 2016

 

 

GAMCO INVESTORS, INC.

(Exact name of registrant as specified in its charter)

 

 

Registrant's telephone number, including area code     (914) 921-3700

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

---

  The following information is furnished pursuant to Item 2.02, "Results of Operations and Financials Condition."

 

  

  On May 3, 2016, GAMCO Investors, Inc. ("GAMCO") announced its results of operations for the quarter ended March 31, 2016.  A copy of the related press release is being filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference in its entirety.

 

  The information furnished under Item 2.02, including the exhibit attached hereto, is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise expressly stated in such filing.

 

Item 9.01		Financial Statements and Exhibits.

  (d) Exhibits

 

  99.1  GAMCO's Press Release, dated May 3, 2016.

 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

GAMCO Investors, Inc.

 

 

Kieran Caterina

Senior Vice Presdeint and Co-Chief Accounting Officer

 

Date:May 3, 2016

Exhibit Index

 

 

99.1  GAMCO's Press Release, dated May 3, 2016.

 

---

GAMCO Investors, Inc. Reports First Quarter Results

·	Fourth Quarter Earnings of $0.88 per diluted share

·	Average AUM at $37.5 billion

Rye, New York, May 3, 2016 – GAMCO Investors, Inc. (“GAMCO” or the “Company”) (NYSE: GBL) today reported financial results for the first quarter including revenues of $81.4 million, net income of $26.0 million and earnings of $0.88 per diluted share.  On a comparable continuing operations basis, revenues were $99.8 million, net income was $23.1 million, and earnings were $0.91 per diluted share in the first quarter of 2015.

Financial Highlights
			Q1								Q1
($'s in 000's except AUM and per share data)			2016								2015 (a)
AUM - end of period (in millions)		$	38,721							$	45,507
AUM - average (in millions)			37,542								45,756
Revenues			81,385								99,806
Operating income before management fee (b)			46,022								42,725
Operating margin before management fee							56.5	%									42.8	%
Operating income			44,942								38,590
Operating margin							55.2	%									38.7	%
Other expense, net			(2,815	)							(1,364	)
Income before income taxes			42,127								37,226
Effective tax rate							38.2	%									37.8	%
Income from continuing operations			26,025								23,148
Income per share - continuing operations		$	0.88							$	0.91
Income from discontinued operations			-								1,628
Discontinued operations per share			-							$	0.06
Net income			26,025								24,776
Net income per share		$	0.88							$	0.97
Shares outstanding at March 31 (c)			29,790								25,810
(a) Adjusted for spin-off of AC.
(b) See GAAP to non-GAAP reconciliation on page 8.
(c) Shares outstanding consist of 29,237 non-RSA shares and 553 RSA shares at March 31,
2016 and 25,103 non-RSA shares and 707 RSA shares at March 31, 2015.

 

Assets Under Management

 

														% Change From
		March 31,				December 31,				March 31,				December 31,				March 31,
		2016				2015				2015				2015				2015
Equities:
Open-end Funds		$	13,807			$	13,811			$	16,643				(0.0	%)			(17.0	%)
Closed-end Funds			6,663				6,492				7,071				2.6				(5.8	)
Institutional & PWM - direct			13,280				13,366				16,407				(0.6	)			(19.1	)
Institutional & PWM - sub-advisory			3,427				3,401				3,814				0.8				(10.1	)
SICAV			38				37				-				2.7				n/m
Total Equities			37,215				37,107				43,935				0.3				(15.3	)
Fixed Income:
Money-Market Fund			1,474				1,514				1,520				(2.6	)			(3.0	)
Institutional & PWM			32				38				52				(15.8	)			(38.5	)
Total Fixed Income			1,506				1,552				1,572				(3.0	)			(4.2	)
Total Assets Under Management		$	38,721			$	38,659			$	45,507				0.2				(14.9	)

 

 

 

 

 

 

NOTES ON NON-GAAP FINANCIAL MEASURES

			1st Quarter
			2016				2015
Operating income before management fee			$	46,022			$	42,725
Adjustments:
Add back:	Incremental RSA expense			-				603
	Costs to launch Closed-end fund			-				1,000
Deduct:	Variable compensation reduction from RSU			(10,412	)			-
Adjusted operating income before management fee				35,610				44,328
Adjusted operating margin before management fee				43.8	%			44.4	%

 

 

 

 

 

 

 

 

 

 

 

 

 

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.  Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results.  Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe.  Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements.  Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors  contained in our Form 10-K and other public filings.  Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.