[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
GAMCO INVESTORS, INC.
|
|||
(Exact name of Registrant as specified in its charter)
|
|||
New York
|
13-4007862
|
||
(State of other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
||
|
|||
One Corporate Center, Rye, NY
|
10580-1422
|
||
(Address of principle executive offices)
|
(Zip Code)
|
||
(914) 921-3700
|
|||
Registrant’s telephone number, including area code
|
Yes
|
x
|
No
|
o
|
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yesx Noo
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer", "accelerated filer", and "smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
|
|||
Large accelerated filer ¨
|
Accelerated filer x
|
||
Non-accelerated filer o
|
Smaller reporting company o
|
Yes
|
o
|
No
|
x
|
Class
|
|
Outstanding at July 31, 2011
|
|
Class A Common Stock, .001 par value
|
6,644,812
|
||
Class B Common Stock, .001 par value
|
20,142,640
|
INDEX
|
|||
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
|||
PART I.
|
FINANCIAL INFORMATION
|
||
Item 1.
|
Unaudited Condensed Consolidated Financial Statements
|
||
Condensed Consolidated Statements of Income:
|
|||
- Three months ended June 30, 2011 and 2010
|
|||
- Six months ended June 30, 2011 and 2010
|
|||
Condensed Consolidated Statements of Financial Condition:
|
|||
- June 30, 2011
|
|||
- December 31, 2010
|
|||
- June 30, 2010
|
|||
Condensed Consolidated Statements of Equity and Comprehensive Income:
|
|||
- Six months ended June 30, 2011 and 2010
|
|||
Condensed Consolidated Statements of Cash Flows:
|
|||
- Six months ended June 30, 2011 and 2010
|
|||
Notes to Unaudited Condensed Consolidated Financial Statements
|
|||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk (Included in Item 2)
|
||
Item 4.
|
Controls and Procedures
|
||
PART II.
|
OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
||
Item 6.
|
Exhibits
|
||
SIGNATURES
|
|||
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
UNAUDITED
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
||||||||||||||||
Investment advisory and incentive fees
|
$ | 69,252 | $ | 50,271 | $ | 132,163 | $ | 99,613 | ||||||||
Institutional research services
|
4,241 | 4,524 | 7,890 | 7,948 | ||||||||||||
Distribution fees and other income
|
11,588 | 7,704 | 21,933 | 14,936 | ||||||||||||
Total revenues
|
85,081 | 62,499 | 161,986 | 122,497 | ||||||||||||
Expenses
|
||||||||||||||||
Compensation
|
34,365 | 25,871 | 67,782 | 52,084 | ||||||||||||
Management fee
|
3,626 | 1,380 | 6,739 | 3,828 | ||||||||||||
Distribution costs
|
9,588 | 7,099 | 23,017 | 14,130 | ||||||||||||
Other operating expenses
|
7,005 | 5,569 | 13,191 | 10,505 | ||||||||||||
Total expenses (a)
|
54,584 | 39,919 | 110,729 | 80,547 | ||||||||||||
Operating income
|
30,497 | 22,580 | 51,257 | 41,950 | ||||||||||||
Other income (expense)
|
||||||||||||||||
Net gain/(loss) from investments
|
3,669 | (7,797 | ) | 12,409 | (2,565 | ) | ||||||||||
Interest and dividend income
|
1,861 | 1,089 | 3,797 | 1,904 | ||||||||||||
Interest expense
|
(3,403 | ) | (3,406 | ) | (6,270 | ) | (6,698 | ) | ||||||||
Total other income (expense), net
|
2,127 | (10,114 | ) | 9,936 | (7,359 | ) | ||||||||||
Income before income taxes
|
32,624 | 12,466 | 61,193 | 34,591 | ||||||||||||
Income tax provision
|
11,945 | 4,401 | 22,233 | 12,695 | ||||||||||||
Net income
|
20,679 | 8,065 | 38,960 | 21,896 | ||||||||||||
Net income attributable to noncontrolling interests
|
32 | 16 | 670 | 121 | ||||||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
$ | 20,647 | $ | 8,049 | $ | 38,290 | $ | 21,775 | ||||||||
Net income attributable to GAMCO Investors, Inc.'s shareholders
|
||||||||||||||||
per share:
|
||||||||||||||||
Basic
|
$ | 0.77 | $ | 0.30 | $ | 1.43 | $ | 0.80 | ||||||||
Diluted
|
$ | 0.77 | $ | 0.30 | $ | 1.42 | $ | 0.80 | ||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
26,665 | 26,979 | 26,783 | 27,081 | ||||||||||||
Diluted
|
26,733 | 27,219 | 26,872 | 27,306 | ||||||||||||
Dividends declared:
|
$ | 0.04 | $ | 0.03 | $ | 0.07 | $ | 0.06 | ||||||||
(a) Six months ended June 30, 2011 includes $5.6 million in costs directly related to the launch of a new closed-end fund.
|
||||||||||||||||
See accompanying notes.
|
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
||||||||||||
UNAUDITED
|
||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
June 30,
|
December 31,
|
June 30,
|
||||||||||
2011
|
2010
|
2010
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents, including restricted cash of $0, $0 and $62,287, respectively
|
$ | 260,839 | $ | 169,601 | $ | 321,029 | ||||||
Investments in securities
|
363,305 | 305,486 | 213,079 | |||||||||
Investments in partnerships
|
98,598 | 82,871 | 74,107 | |||||||||
Receivable from brokers
|
35,968 | 46,621 | 54,548 | |||||||||
Investment advisory fees receivable
|
25,746 | 44,660 | 16,844 | |||||||||
Income tax receivable and deferred tax assets
|
238 | 325 | 3,436 | |||||||||
Other assets
|
25,964 | 23,172 | 20,445 | |||||||||
Total assets
|
$ | 810,658 | $ | 672,736 | $ | 703,488 | ||||||
LIABILITIES AND EQUITY
|
||||||||||||
Payable to brokers
|
$ | 2,950 | $ | 1,554 | $ | 3,351 | ||||||
Income taxes payable and deferred tax liabilities
|
21,622 | 23,225 | - | |||||||||
Capital lease obligation
|
5,126 | 5,182 | 5,219 | |||||||||
Compensation payable
|
29,484 | 23,771 | 18,613 | |||||||||
Securities sold, not yet purchased
|
10,244 | 19,299 | 13,652 | |||||||||
Mandatorily redeemable noncontrolling interests
|
1,478 | 1,444 | 1,632 | |||||||||
Accrued expenses and other liabilities
|
34,620 | 23,089 | 28,146 | |||||||||
Sub-total
|
105,524 | 97,564 | 70,613 | |||||||||
5.5% Senior notes (due May 15, 2013)
|
99,000 | 99,000 | 99,000 | |||||||||
5.875% Senior notes (due June 1, 2021)
|
100,000 | - | - | |||||||||
6% Convertible note (due August 14, 2011; repaid September 30, 2010)
|
- | - | 19,948 | |||||||||
6.5% Convertible note (due October 2, 2018; repaid October 13, 2010)
|
- | - | 60,000 | |||||||||
Zero coupon subordinated debentures, Face value: $86.4 million (due December 31, 2015)
|
61,814 | 59,580 | - | |||||||||
Total liabilities
|
366,338 | 256,144 | 249,561 | |||||||||
Redeemable noncontrolling interests
|
35,519 | 26,984 | 7,773 | |||||||||
Commitments and contingencies (Note J)
|
||||||||||||
Equity
|
||||||||||||
GAMCO Investors, Inc. stockholders' equity
|
||||||||||||
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized;
|
||||||||||||
13,569,703, 13,255,503 and 13,203,330 issued, respectively; 6,647,212,
|
||||||||||||
6,763,221 and 6,984,351 outstanding, respectively
|
13 | 13 | 13 | |||||||||
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized;
|
||||||||||||
24,000,000 shares issued; 20,142,640, 20,290,140 and 20,292,263 shares
|
||||||||||||
outstanding, respectively
|
20 | 20 | 20 | |||||||||
Additional paid-in capital
|
263,371 | 262,108 | 254,444 | |||||||||
Retained earnings
|
406,666 | 370,272 | 430,605 | |||||||||
Accumulated comprehensive income
|
26,349 | 25,389 | 15,960 | |||||||||
Treasury stock, at cost (6,922,491, 6,492,282 and 6,218,979 shares, respectively)
|
(291,287 | ) | (271,773 | ) | (258,956 | ) | ||||||
Total GAMCO Investors, Inc. stockholders' equity
|
405,132 | 386,029 | 442,086 | |||||||||
Noncontrolling interests
|
3,669 | 3,579 | 4,068 | |||||||||
Total equity
|
408,801 | 389,608 | 446,154 | |||||||||
Total liabilities and equity
|
$ | 810,658 | $ | 672,736 | $ | 703,488 | ||||||
See accompanying notes.
|
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME
|
||||||||||||||||||||||||||||||||||||
UNAUDITED
|
||||||||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2011
|
||||||||||||||||||||||||||||||||||||
GAMCO Investors, Inc. shareholders
|
||||||||||||||||||||||||||||||||||||
Additional
|
Accumulated
|
Redeemable
|
||||||||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Noncontrolling
|
Comprehensive
|
|||||||||||||||||||||||||||||
Interests
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
Interests
|
Income
|
||||||||||||||||||||||||||||
Balance at December 31, 2010
|
$ | 3,579 | $ | 33 | $ | 262,108 | $ | 370,272 | $ | 25,389 | $ | (271,773 | ) | $ | 389,608 | $ | 26,984 | $ | - | |||||||||||||||||
Redemptions of redeemable
|
||||||||||||||||||||||||||||||||||||
noncontrolling interests
|
- | - | - | - | - | - | - | (839 | ) | - | ||||||||||||||||||||||||||
Contributions from redeemable
|
||||||||||||||||||||||||||||||||||||
noncontrolling interests
|
- | - | - | - | - | - | - | 12,897 | - | |||||||||||||||||||||||||||
Deconsolidation of
|
||||||||||||||||||||||||||||||||||||
Partnership
|
- | - | - | - | - | - | - | (4,103 | ) | - | ||||||||||||||||||||||||||
Net income
|
90 | - | - | 38,290 | - | - | 38,380 | 580 | 38,960 | |||||||||||||||||||||||||||
Net unrealized gains on
|
||||||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||||||
net of income tax ($550)
|
- | - | - | - | 937 | - | 937 | - | 937 | |||||||||||||||||||||||||||
Foreign currency translation
|
- | - | - | - | 23 | - | 23 | - | 23 | |||||||||||||||||||||||||||
Dividends declared ($0.07 per
|
||||||||||||||||||||||||||||||||||||
share)
|
- | - | - | (1,896 | ) | - | - | (1,896 | ) | - | - | |||||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||||||
expense
|
- | - | 1,263 | - | - | - | 1,263 | - | - | |||||||||||||||||||||||||||
Purchase of treasury stock
|
- | - | - | - | - | (19,514 | ) | (19,514 | ) | - | - | |||||||||||||||||||||||||
Balance at June 30, 2011
|
$ | 3,669 | $ | 33 | $ | 263,371 | $ | 406,666 | $ | 26,349 | $ | (291,287 | ) | $ | 408,801 | $ | 35,519 | $ | 39,920 | |||||||||||||||||
Comprehensive income attributable
|
||||||||||||||||||||||||||||||||||||
to noncontrolling interest
|
(670 | ) | ||||||||||||||||||||||||||||||||||
Total comprehensive income
|
||||||||||||||||||||||||||||||||||||
attributable to GAMCO Investors, Inc.
|
$ | 39,250 | ||||||||||||||||||||||||||||||||||
See accompanying notes.
|
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME
|
||||||||||||||||||||||||||||||||||||
UNAUDITED
|
||||||||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2010
|
||||||||||||||||||||||||||||||||||||
GAMCO Investors, Inc. shareholders
|
||||||||||||||||||||||||||||||||||||
Additional
|
Accumulated
|
Redeemable
|
||||||||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Noncontrolling
|
Comprehensive
|
|||||||||||||||||||||||||||||
Interests
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Total
|
Interests
|
Income
|
||||||||||||||||||||||||||||
Balance at December 31, 2009
|
$ | 4,043 | $ | 33 | $ | 251,591 | $ | 410,473 | $ | 19,088 | $ | (241,567 | ) | $ | 443,661 | $ | 1,464 | $ | - | |||||||||||||||||
Redemptions of redeemable
|
||||||||||||||||||||||||||||||||||||
noncontrolling interests
|
- | - | - | - | - | - | - | (475 | ) | - | ||||||||||||||||||||||||||
Contributions from redeemable
|
||||||||||||||||||||||||||||||||||||
noncontrolling interests
|
- | - | - | - | - | - | - | 6,688 | - | |||||||||||||||||||||||||||
Net income
|
25 | - | - | 21,775 | - | - | 21,800 | 96 | 21,896 | |||||||||||||||||||||||||||
Net unrealized losses on
|
||||||||||||||||||||||||||||||||||||
securities available for sale,
|
||||||||||||||||||||||||||||||||||||
net of income tax benefit ($1,821)
|
- | - | - | - | (3,101 | ) | - | (3,101 | ) | - | (3,101 | ) | ||||||||||||||||||||||||
Foreign currency translation
|
- | - | - | - | (27 | ) | - | (27 | ) | - | (27 | ) | ||||||||||||||||||||||||
Dividends declared ($0.06 per
|
||||||||||||||||||||||||||||||||||||
share)
|
- | - | - | (1,643 | ) | - | - | (1,643 | ) | - | - | |||||||||||||||||||||||||
Stock based compensation
|
||||||||||||||||||||||||||||||||||||
expense
|
- | - | 2,805 | - | - | - | 2,805 | - | - | |||||||||||||||||||||||||||
Exercise of stock options
|
||||||||||||||||||||||||||||||||||||
including tax benefit
|
- | - | 48 | - | - | - | 48 | - | - | |||||||||||||||||||||||||||
Purchase of treasury stock
|
- | - | - | - | - | (17,389 | ) | (17,389 | ) | - | - | |||||||||||||||||||||||||
Balance at June 30, 2010
|
$ | 4,068 | $ | 33 | $ | 254,444 | $ | 430,605 | $ | 15,960 | $ | (258,956 | ) | $ | 446,154 | $ | 7,773 | $ | 18,768 | |||||||||||||||||
Comprehensive income attributable
|
||||||||||||||||||||||||||||||||||||
to noncontrolling interest
|
(121 | ) | ||||||||||||||||||||||||||||||||||
Total comprehensive income
|
||||||||||||||||||||||||||||||||||||
attributable to GAMCO Investors, Inc.
|
$ | 18,647 | ||||||||||||||||||||||||||||||||||
See accompanying notes.
|
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
UNAUDITED
|
||||||||
(In thousands)
|
||||||||
Six Months Ended
|
||||||||
June 30,
|
||||||||
2011
|
2010
|
|||||||
Operating activities
|
||||||||
Net income
|
$ | 38,960 | $ | 21,896 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Equity in net gains from partnerships
|
(3,094 | ) | (1,037 | ) | ||||
Depreciation and amortization
|
456 | 343 | ||||||
Stock based compensation expense
|
1,263 | 2,805 | ||||||
Deferred income taxes
|
1,220 | 2,934 | ||||||
Tax benefit from exercise of stock options
|
- | 8 | ||||||
Foreign currency translation gain/(loss)
|
23 | (27 | ) | |||||
Fair value of donated securities
|
56 | (608 | ) | |||||
Gains on sales of available for sale securities
|
(584 | ) | (13 | ) | ||||
Amortization of discount on convertible debt
|
- | 297 | ||||||
Accretion of zero coupon debentures
|
2,234 | - | ||||||
(Increase) decrease in assets:
|
||||||||
Investments in trading securities
|
(70,979 | ) | (59,206 | ) | ||||
Investments in partnerships:
|
||||||||
Contributions to partnerships
|
(10,683 | ) | (15,807 | ) | ||||
Distributions from partnerships
|
3,226 | 5,392 | ||||||
Receivable from brokers
|
4,966 | (24,476 | ) | |||||
Investment advisory fees receivable
|
19,044 | 18,841 | ||||||
Income tax receivable and deferred tax assets
|
87 | - | ||||||
Other assets
|
(2,312 | ) | 667 | |||||
Increase (decrease) in liabilities:
|
||||||||
Payable to brokers
|
1,396 | 2,956 | ||||||
Income taxes payable and deferred tax liabilities
|
(3,108 | ) | (13,073 | ) | ||||
Compensation payable
|
5,710 | 5,313 | ||||||
Mandatorily redeemable noncontrolling interests
|
35 | 10 | ||||||
Accrued expenses and other liabilities
|
12,776 | 2,972 | ||||||
Total adjustments
|
(38,268 | ) | (71,709 | ) | ||||
Net cash provided by (used in) operating activities
|
$ | 692 | $ | (49,813 | ) |
GAMCO INVESTORS, INC. AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
UNAUDITED (continued)
|
||||||||
(In thousands)
|
||||||||
Six Months Ended
|
||||||||
June 30,
|
||||||||
2011
|
2010
|
|||||||
Investing activities
|
||||||||
Purchases of available for sale securities
|
$ | (4,370 | ) | $ | (9 | ) | ||
Proceeds from sales of available for sale securities
|
5,685 | 2,014 | ||||||
Return of capital on available for sale securities
|
777 | 1,306 | ||||||
Increase in restricted cash
|
- | (29 | ) | |||||
Net cash provided by investing activities
|
2,092 | 3,282 | ||||||
Financing activities
|
||||||||
Contributions from redeemable noncontrolling interests
|
12,897 | 6,213 | ||||||
Redemptions of redeemable noncontrolling interests
|
(839 | ) | - | |||||
Issuance of 5.875% Senior notes due June 1, 2021
|
100,000 | - | ||||||
Issuance costs on the 5.875% Senior notes due June 1, 2021 | (934 | ) | ||||||
Repayment of 6% Convertible note due August 14, 2011
|
- | (20,200 | ) | |||||
Proceeds from exercise of stock options
|
- | 40 | ||||||
Dividends paid
|
(1,896 | ) | (1,643 | ) | ||||
Purchase of treasury stock
|
(19,514 | ) | (17,389 | ) | ||||
Net cash provided by (used in) financing activities
|
89,714 | (32,979 | ) | |||||
Effect of exchange rates on cash and cash equivalents
|
(9 | ) | (18 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
92,489 | (79,528 | ) | |||||
Cash and cash equivalents at beginning of period
|
169,601 | 338,270 | ||||||
Decrease in cash from deconsolidation of partnership
|
(1,251 | ) | - | |||||
Cash and cash equivalents at end of period
|
$ | 260,839 | $ | 258,742 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$ | 3,267 | $ | 6,800 | ||||
Cash paid for taxes
|
$ | 23,433 | $ | 22,441 | ||||
Non-cash activity:
|
||||||||
- On January 1, 2011, GAMCO Investors, Inc. was no longer deemed to have control over a certain partnership which resulted in the deconsolidation of that partnership and
|
||||||||
decreases of approximately $1,251 of cash and cash equivalents , $2,852 of net assets and $4,103 of noncontrolling interests.
|
||||||||
- For the six months ended June 30, 2011 and June 30, 2010, the Company accrued restricted stock award dividends of $17 and $23, respectively.
|
||||||||
See accompanying notes.
|
June 30, 2011
|
December 31, 2010
|
June 30, 2010
|
||||||||||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Trading securities:
|
||||||||||||||||||||||||
Government obligations
|
$ | 7,924 | $ | 7,925 | $ | 27,327 | $ | 27,288 | $ | 1,388 | $ | 1,223 | ||||||||||||
Common stocks
|
238,689 | 251,118 | 158,455 | 170,374 | 122,071 | 118,167 | ||||||||||||||||||
Mutual funds
|
1,096 | 1,525 | 1,205 | 1,554 | 1,194 | 1,229 | ||||||||||||||||||
Convertible bonds
|
- | - | 574 | 620 | 1,123 | 1,161 | ||||||||||||||||||
Preferred stocks
|
- | - | 1,783 | 1,973 | 1,783 | 1,685 | ||||||||||||||||||
Other investments
|
459 | 487 | 1,559 | 1,350 | 818 | 552 | ||||||||||||||||||
Total trading securities
|
248,168 | 261,055 | 190,903 | 203,159 | 128,377 | 124,017 | ||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
Common stocks
|
16,780 | 35,296 | 16,835 | 37,139 | 16,918 | 32,827 | ||||||||||||||||||
Mutual funds
|
42,199 | 66,954 | 43,707 | 65,188 | 46,156 | 56,235 | ||||||||||||||||||
Total available for sale securities
|
58,979 | 102,250 | 60,542 | 102,327 | 63,074 | 89,062 | ||||||||||||||||||
Total investments in securities
|
$ | 307,147 | $ | 363,305 | $ | 251,445 | $ | 305,486 | $ | 191,451 | $ | 213,079 |
June 30, 2011
|
December 31, 2010
|
June 30, 2010
|
||||||||||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||||||||
Trading securities:
|
(In thousands)
|
|||||||||||||||||||||||
Common stocks
|
$ | 9,416 | $ | 10,238 | $ | 19,071 | $ | 19,299 | $ | 15,528 | $ | 13,537 | ||||||||||||
Other
|
1 | 6 | - | - | 224 | 115 | ||||||||||||||||||
Total securities sold, not yet purchased
|
$ | 9,417 | $ | 10,244 | $ | 19,071 | $ | 19,299 | $ | 15,752 | $ | 13,652 |
June 30, 2011
|
December 31, 2010
|
June 30, 2010
|
||||||||||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||||||||||||||
Cost
|
Losses
|
Fair Value
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Losses
|
Fair Value
|
||||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Mutual Funds
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 5 | $ | (1 | ) | $ | 4 |
June 30,
|
||||
2011
|
||||
(In thousands)
|
||||
Cash and cash equivalents
|
$ | 1 | ||
Investments in securities
|
73,047 | |||
Investments in partnerships
|
1,576 | |||
Receivable from brokers
|
22,881 | |||
Other assets
|
57 | |||
Securities sold, not yet purchased
|
(7,334 | ) | ||
Accrued expenses and other liabilities
|
(327 | ) | ||
Redeemable noncontrolling interests
|
(34,794 | ) | ||
GAMCO's net interests in consolidated VIEs
|
$ | 55,107 |
-
|
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. Level 1 assets include cash equivalents, government obligations, open and closed end funds and equities.
|
-
|
Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities that are not active and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly-quoted intervals. Assets that generally are included in this category may include certain limited partnership interests in private funds in which the valuations for substantially all of the investments within the fund are based upon Level 1 or Level 2 inputs and over the counter derivatives that have inputs to the valuations that can generally be corroborated by observable market data.
|
-
|
Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Assets included in this category generally include equities that trade infrequently and direct private equity investments held within consolidated partnerships.
|
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
June 30,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2011
|
||||||||||||
Cash equivalents
|
$ | 260,177 | $ | - | $ | - | $ | 260,177 | ||||||||
Investments in partnerships
|
- | 27,977 | - | 27,977 | ||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
35,296 | - | - | 35,296 | ||||||||||||
AFS - Mutual funds
|
66,954 | - | - | 66,954 | ||||||||||||
Trading - Gov't obligations
|
7,925 | - | - | 7,925 | ||||||||||||
Trading - Common stocks
|
250,524 | 10 | 584 | 251,118 | ||||||||||||
Trading - Mutual funds
|
1,525 | - | - | 1,525 | ||||||||||||
Trading - Other
|
118 | - | 369 | 487 | ||||||||||||
Total investments in securities
|
362,342 | 10 | 953 | 363,305 | ||||||||||||
Total investments
|
362,342 | 27,987 | 953 | 391,282 | ||||||||||||
Total assets at fair value
|
$ | 622,519 | $ | 27,987 | $ | 953 | $ | 651,459 | ||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$ | 10,238 | $ | - | $ | - | $ | 10,238 | ||||||||
Trading - Other
|
6 | - | - | 6 | ||||||||||||
Securities sold, not yet purchased
|
$ | 10,244 | $ | - | $ | - | $ | 10,244 |
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
December 31,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2010
|
||||||||||||
Cash equivalents
|
$ | 167,548 | $ | - | $ | - | $ | 167,548 | ||||||||
Investments in partnerships
|
- | 27,690 | - | 27,690 | ||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
37,139 | - | - | 37,139 | ||||||||||||
AFS - Mutual funds
|
65,188 | - | - | 65,188 | ||||||||||||
Trading - Gov't obligations
|
27,288 | - | - | 27,288 | ||||||||||||
Trading - Common stocks
|
170,204 | 23 | 147 | 170,374 | ||||||||||||
Trading - Mutual funds
|
1,554 | - | - | 1,554 | ||||||||||||
Trading - Convertible bonds
|
620 | - | - | 620 | ||||||||||||
Trading - Preferred stocks
|
1,973 | - | - | 1,973 | ||||||||||||
Trading - Other
|
72 | 1,000 | 278 | 1,350 | ||||||||||||
Total investments in securities
|
304,038 | 1,023 | 425 | 305,486 | ||||||||||||
Total investments
|
304,038 | 28,713 | 425 | 333,176 | ||||||||||||
Total assets at fair value
|
$ | 471,586 | $ | 28,713 | $ | 425 | $ | 500,724 | ||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$ | 19,299 | $ | - | $ | - | $ | 19,299 | ||||||||
Securities sold, not yet purchased
|
$ | 19,299 | $ | - | $ | - | $ | 19,299 |
Quoted Prices in Active
|
Significant Other
|
Significant
|
Balance as of
|
|||||||||||||
Markets for Identical
|
Observable
|
Unobservable
|
June 30,
|
|||||||||||||
Assets
|
Assets (Level 1)
|
Inputs (Level 2)
|
Inputs (Level 3)
|
2010
|
||||||||||||
Cash equivalents
|
$ | 320,575 | $ | - | $ | - | $ | 320,575 | ||||||||
Investments in partnerships
|
- | 25,553 | - | 25,553 | ||||||||||||
Investments in securities:
|
||||||||||||||||
AFS - Common stocks
|
32,827 | - | - | 32,827 | ||||||||||||
AFS - Mutual funds
|
56,235 | - | - | 56,235 | ||||||||||||
Trading - Gov't obligations
|
1,223 | - | - | 1,223 | ||||||||||||
Trading - Common stocks
|
117,617 | 278 | 272 | 118,167 | ||||||||||||
Trading - Mutual funds
|
1,229 | - | - | 1,229 | ||||||||||||
Trading - Convertible bonds
|
1,161 | - | - | 1,161 | ||||||||||||
Trading - Preferred stocks
|
1,674 | - | 11 | 1,685 | ||||||||||||
Trading - Other
|
143 | 316 | 93 | 552 | ||||||||||||
Total investments in securities
|
212,109 | 594 | 376 | 213,079 | ||||||||||||
Total investments
|
212,109 | 26,147 | 376 | 238,632 | ||||||||||||
Total assets at fair value
|
$ | 532,684 | $ | 26,147 | $ | 376 | $ | 559,207 | ||||||||
Liabilities
|
||||||||||||||||
Trading - Common stocks
|
$ | 13,537 | $ | - | $ | - | $ | 13,537 | ||||||||
Trading - Other
|
- | 115 | - | 115 | ||||||||||||
Securities sold, not yet purchased
|
$ | 13,537 | $ | 115 | $ | - |