GREENWICH, Conn., May 09, 2023 (GLOBE NEWSWIRE) -- GAMCO Investors, Inc. (“GAMI”) (OTCQX: GAMI) today reported its operating results for the quarter ended March 31, 2023.

Giving Back to Society - $74 million since IPO

Since our initial public offering in February 1999, our firm’s combined charitable donations total approximately $74 million, including $48 million through the shareholder designated charitable contribution (“SDCC”) program. In 2013, GAMI initiated the SDCC program whereby shareholders have designated charitable gifts to approximately 350 charitable organizations, including $11.3 million distributed in 2022.

Results for the First Quarter

Financial Highlights (Unaudited)      
U.S. GAAP Basis Three Months Ended  
(In thousands, except per share data) March 31,
2023		 March 31,
2022		  
       
Revenues $59,906 $69,623  
Operating income  16,398  25,961  
Net income  15,897  17,454  
       
Diluted earnings per common share $0.62 $0.66  
       
Weighted average diluted shares outstanding 25,529  26,493  
Shares outstanding  25,398  26,584  
       
Assets Under Management      
AUM - end of period (in millions) $30,672 $33,378  
AUM - average (in millions)  30,763  33,286  
       

Revenues

Operating Income

Operating income was $16.4 million versus $26.0 million in the first quarter of 2022. We note, on a comparable basis, the waiver of CEO compensation bolstered the first quarter 2022 operating income by $4.1 million.

Non-Operating Income

Mark-to-market investment gains were $2.2 million in the first quarter of 2023 versus losses of $2.6 million in the first quarter of 2022. In the first quarter, interest expense (for finance lease accounting) was $0.3 million versus interest expense of $0.8 million in the first quarter of 2022.

Income Taxes

GAMI’s effective tax rate for the full year 2023 is estimated to be 22.5% versus the 20.2% for the full year 2022.

Balance Sheet

GAMI ended the quarter with cash and investments of $154.6 million and $21.9 million of seed capital investments.

Business Highlights

Subsequent to the end of the 1st quarter:

Gabelli U.S. Treasury Money Market Fund

Return to Shareholders

During the first quarter, GAMI paid a dividend of $0.04 per share for a total of $1.0 million and purchased 281,370 shares for $4.9 million at an average price of $17.49 per share. From April 1, 2023, to May 9, 2023, the Company has purchased 34,767 shares at an average price of $19.10 per share.

On May 9, 2023, GAMI’s board of directors declared a regular quarterly dividend of $0.04 per share, which is payable on June 27, 2023, to class A and class B shareholders of record on June 13, 2023.

About GAMCO Investors, Inc.

GAMI is best known for its research-driven value approach to equity investing (known as PMV with a Catalyst™). GAMI conducts its investment advisory business principally through two subsidiaries: Gabelli Funds, LLC (24 open-end funds, 14 closed-end funds, 5 actively managed semi-transparent ETFs, and a SICAV) and GAMCO Asset Management Inc. (approximately 1,400 institutional and private wealth separate accounts). GAMI serves a broad client base including institutions, intermediaries, private wealth, and direct retail investors. In recent years, GAMI has successfully integrated new teams of RIAs by providing attractive compensation arrangements and extensive research capabilities.

Gabelli Funds offers a wide range of solutions for clients across Value and Growth Equity, SRI, Convertibles, sector-focused strategies including Gold and Utilities, Merger Arbitrage, and U.S. Treasury Money Market Fixed Income.

Table I: Assets Under Management and Fund Flows - 1st Quarter 2023 (in millions)        
          Fund    
        Market distributions,    
  December 31,     appreciation/ net of March 31, March 31,
   2022 Inflows Outflows (depreciation) reinvestments  2023  2022
Equities:              
Mutual Funds $8,140 $242 $(378) $288 $(4) $8,288 $9,824
Closed-end Funds  7,046  24  (15)  233  (133)  7,155  8,097
Institutional & PWM (a)  10,714  61  (558)  547  -   10,764  12,674
SICAV  867  124  (176)  9  -   824  879
Total Equities  26,767  451  (1,127)  1,077  (137)  27,031  31,474
               
100% U.S. Treasury Money Market Fund 2,462  1,845  (732)  34  -   3,609  1,872
Institutional & PWM Fixed Income  32  -  -   -  -   32  32
Total Treasuries & Fixed Income  2,494  1,845  (732)  34  -   3,641  1,904
Total Assets Under Management $29,261 $2,296 $(1,859) $1,111 $(137) $30,672 $33,378
               
(a) Includes $223, $224, and $185 of 100% U.S. Treasury Fund AUM at December 31, 2022, March 31, 2023, and March 31, 2022, respectively.   
               


Table II    
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
     
  Three Months Ended
  March 31,
   2023   2022 
     
Investment advisory and incentive fees $54,995  $63,762 
Distribution fees and other income  4,911   5,861 
Total revenues  59,906   69,623 
     
Compensation costs (a)  29,186   29,058 
Management fee expense (a)  2,036   1,312 
Distribution costs  6,473   7,145 
Other operating expenses  5,813   6,147 
Total expenses  43,508   43,662 
     
Operating income  16,398   25,961 
     
Investment gain/(loss), net  2,222   (2,594)
Interest expense  (298)  (816)
Non-operating gain/(loss)  1,924   (3,410)
     
Income before income taxes  18,322   22,551 
Provision for income taxes  2,425   5,097 
Net income $15,897  $17,454 
     
Net income:    
Basic $0.62  $0.67 
Diluted $0.62  $0.66 
     
Weighted average shares outstanding:    
Basic  25,529   26,237 
Diluted  25,529   26,493 
     
Actual shares outstanding (b)  25,398   26,584 
     
(a) For the three months ended March 31, 2022, the CEO waiver reduced compensation
costs by $3,385, and management fee expense by $736.  
(b) Includes 0 and 411 RSA shares at March 31, 2023 and 2022, respectively.


Table III      
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
       
  March 31, December 31, March 31,
   2023  2022  2022
       
ASSETS      
Cash, cash equivalents, and U.S. Treasury Bills $133,277 $66,381 $144,369
Investments in securities  21,327  84,742  22,308
Seed capital investments  21,911  18,347  15,674
Receivable from brokers  1,558  1,932  2,873
Other receivables  21,439  25,839  25,517
Deferred tax asset and income tax receivable  12,871  16,701  7,456
Other assets  13,759  9,879  11,985
Total assets $226,142 $223,821 $230,182
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Payable for investments purchased $- $2,980 $-
Income taxes payable  6  -  7,373
Compensation payable  32,902  33,919  20,139
Accrued expenses and other liabilities  43,750  47,868  44,320
Sub-total  76,658  84,767  71,832
Subordinated Notes (due June 15, 2023)  -  -  50,935
Total liabilities  76,658  84,767  122,767
       
Stockholders' equity (a)  149,484  139,054  107,415
       
Total liabilities and stockholders' equity $226,142 $223,821 $230,182
       
(a) Shares outstanding of 25,398; 25,680; and 26,584, respectively.      

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

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 may cause our actual results to differ from our expectations include risks associated with the duration and scope of the ongoing coronavirus pandemic resulting in volatile market conditions, 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, and 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 Annual Report 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.

Gabelli Funds, LLC is a registered investment adviser with the Securities and Exchange Commission and is a wholly owned subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. The prospectus, which contains more complete information about this and other matters, should be read carefully before investing. To obtain a prospectus, please call 800 GABELLI or visit www.gabelli.com

Contact:Kieran Caterina
 Chief Accounting Officer
 (914) 921-5149
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