GAMCO Investors, Inc. Reports 2021 Third Quarter Results

• Net income for the third quarter was $29.2 million vs. $16.4 million in 2020
• Fully diluted third quarter EPS was $1.09 vs. $0.62 per share a year ago
• September 30, 2021 AUM of $33.5 billion vs. $29.7 billion at September 30, 2020
  • Equity AUM was $31.9 billion at September 30, 2021 vs. $26.8 billion at September 30, 2020
• Board authorizes 100% increase of the regular quarterly dividend to $0.04 per share

GAMCO Investors, Inc. (“GAMCO”) (NYSE: GBL) today reported its operating results for the quarter ended September 30, 2021.

Third Quarter Results

Giving Back to Society – (Y)our “S” in ESG

Management plans to ask the Board of Directors of GAMCO to approve a new shareholder designated charitable contribution (“SDCC”). Since the inception of GAMCO’s SDCC program in 2013, shareholders have designated charitable gifts of close to $37 million to more than 280 charitable organizations. When combined with our other charitable donations, this boosts our total contributions to approximately $62 million since our initial public offering in February 1999.

This charitable program underscores our commitment to giving back to society which emanated in part from our management of socially responsible portfolios since 1987. Later, we integrated ESG (environmental, social, and governance) factors into our investment process.

New Climate and Environmental Initiative

In February 2021, we launched Love Our Planet & People (NYSE: LOPP), an actively managed, semi-transparent ETF with an investment emphasis on the “E” in ESG –the environment is essential to the future of our planet. Shareholders of the fund do not pay any fees or expenses of LOPP.

Revenues

• Total revenues for the third quarter of 2021 were $75.9 million compared with $61.3 million in the third quarter of 2020.

• Investment advisory fees were $69.1 million in the third quarter of 2021 versus $54.9 million in the year ago quarter:
  • Gabelli Funds’ revenues were $48.0 million compared to $38.9 million in the third quarter of 2020.
  • Institutional and Private Wealth Management revenues, which are generally billed on portfolio values at the beginning of the quarter, were $19.2 million compared to $14.8 million in last year’s third quarter
  • SICAV revenues were $1.9 million for the third quarter of 2021 as compared to $1.2 million in the year ago quarter.

• Distribution fees from our equity mutual funds and other income were $6.8 million during the third quarter of 2021 and $6.4 million in the prior year quarter.

Operating Income

For the third quarter of 2021, operating income was $40.7 million versus $31.8 million in the third quarter of 2020.

Non-Operating Income

Mark-to-market investment losses were $1.2 million in the third quarter of 2021 versus losses of $3.1 million in the third quarter of 2020. Interest expense was $0.8 million in the third quarter of 2021 versus $0.7 million in the third quarter of 2020. In the year ago third quarter, SDCC expense was $5.4 million.

Income Taxes

GAMCO’s effective tax rate for the quarter ended September 30, 2021 was 24.5% versus 27.4% for the quarter ended September 30, 2020.

Business Highlights

• We completed two rights offerings:
  • On July 21^st, the Gabelli Equity Trust (NYSE: GAB) completed a rights offering that raised approximately $144 million.
  • On August 30^th, the Gabelli Multimedia Trust Inc. (NYSE: GGT) completed an offering that raised approximately $18 million.

• On September 9^th, we hosted our 27^th Annual Aerospace & Defense Symposium in New York City. The symposium featured leading companies in the Aerospace and Defense industries.

Subsequent to the end of the 3^rd quarter:

• On October 7^th, the Gabelli Dividend & Income Trust (NYSE: GDV) completed the offering of $150 million of 4.25% Series K Cumulative Preferred Shares.

• On October 15^th, the Gabelli Healthcare & Wellness Trust (NYSE: GRX) completed a private placement of $40 million of 4% Series E Cumulative Preferred Shares.

• On November 1^st, the Gabelli Global Small and Mid Cap Value Trust (NYSE: GGZ) raised a similar $40 million via a private placement of 4% Series B Cumulative Preferred Shares.

• On November 1 ^st and 2 ^nd, we hosted our 45^th Annual Automotive Symposium, “Batteries Included” in Las Vegas. The symposium featured presentations from senior management of leading automotive and electric vehicle suppliers, with an emphasis on the battery ecosystem, technological innovation, and industry dynamics.

Balance Sheet

GAMCO ended the quarter with cash and investments of $182.2 million and $52.1 million of subordinated debt maturing on June 15, 2023.

Return to Shareholders

During the quarter, GAMCO paid a regular dividend of $0.02 per share and purchased 92,427 shares for $2.5 million at an average price of $26.65 per share. From October 1, 2021 to November 4, 2021, the Company has purchased 86,028 shares at an average price of $24.65 per share.

On November 4, 2021, GAMCO’s board of directors declared a regular quarterly dividend of $0.04 per share, an increase of 100%, which is payable on December 28, 2021 to class A and class B shareholders of record on December 14, 2021.

About GAMCO Investors, Inc.

GAMCO is known for its research-driven approach to equity investing. GAMCO conducts its investment advisory business principally through two subsidiaries: GAMCO Asset Management Inc. (approximately 1,400 institutional and private wealth separate accounts, principally in the U.S.) and Gabelli Funds, LLC (24 open-end funds, 14 closed-end funds, 2 actively managed semi-transparent ETFs, and a SICAV). GAMCO serves a broad client base including institutions, intermediaries, offshore investors, private wealth, and direct retail investors.

GAMCO offers a wide range of solutions for clients across Value, Growth Equity, ESG, Convertibles, actively managed semi-transparent ETFs, sector-focused strategies including Gold and Utilities, Merger Arbitrage, and Fixed Income. In 1977, GAMCO launched its flagship All Cap Value strategy, Gabelli Value, and in 1986 launched its mutual fund business.

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, the effects of the Tax Cuts and Jobs Act, 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, a general downturn in the economy that negatively impacts our operations, and the ongoing impacts of the Tax Cuts and Jobs Act with respect to tax rates and the non-deductibility of certain portions of named executive officer compensation. 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 on 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.

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

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.

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