GAMCO INVESTORS, INC. ET AL - FORM 8-K - EX-99.1 - EXHIBIT 99.1, DATED AUGUST 7, 2018

Attached files

file	filename
8-K - FORM 8-K, DATED AUGUST 7, 2018 - GAMCO INVESTORS, INC. ET AL	gbl8k080718.htm

Exhibit 99.1

For Immediate Release:	Contact:	Kieran Caterina or Diane M. LaPointe
		SVPs and Co-Chief Accounting Officers
		(914) 921-5149 or 7763

		For further information please visit
		www.gabelli.com

GAMCO Investors, Inc. Reports Record Second Quarter Earnings

-	Average AUM for quarter was $40.6 billion vs. $41.8 billion in 2017 quarter

-	Second Quarter Net Income of $31.6 million +38.0% from Year Ago Quarter

-	25.5% Effective Tax Rate in 2018 second quarter vs. 38.9% in comparable 2017 quarter

-	Fully Diluted EPS for quarter was $1.10 versus $0.76 a year ago

Rye, New York, August 7, 2018 – GAMCO Investors, Inc. (“GAMCO”) (NYSE: GBL) today reported second quarter 2018 revenues of $87.2 million, net income of $31.6 million, and earnings of $1.10 per diluted share. This compares to second quarter 2017 revenues of $87.6 million, net income of $22.9 million, and earnings of $0.76 per diluted share.

In July 2018, Standard and Poor’s reaffirmed their investment grade rating on our company which they initially provided in December 2017 with a stable outlook reflecting our financial condition.

Average AUM was $40.6 billion for the second quarter of 2018 versus $41.8 billion for the second quarter of 2017 and $42.5 billion for the first quarter of 2018.

Our second quarter 2018 ending AUM was $40.7 billion as compared to $41.7 billion at June 30, 2017 and $40.9 billion at March 31, 2018. Market appreciation was $0.9 billion, outflows were $0.9 billion and distributions, net of reinvestments, were $0.2 billion.

Revenues

-	Total revenues for the second quarter of 2018 were $87.2 million compared with $87.6 million in the prior year.

Investment advisory fees rose to $77.3 million in the second quarter of 2018 from $76.6 million in the second quarter of 2017. Revenues from our open-end and closed-end funds were flat at $49.1 million, compared to $49.2 million in the year-ago quarter. Institutional and Private Wealth Management generated $26.8 million of the revenues in 2018 compared to $26.4 million in 2017. SICAV revenues grew to $1.5 million in the second quarter of 2018 from $1.0 million in the prior period.

-	Distribution fees from our open-end equity funds and other income were $9.9 million for the second quarter of 2018 versus $11.0 million in the prior-year quarter.

Financial Highlights
	Second Quarter								YTD
($'s in 000's except AUM and per share data)	2018				2017				2018				2017

AUM - average (in millions)	$	40,613			$	41,822				41,496				41,377
AUM - end of period (in millions)		40,671				41,681			$	40,671			$	41,681


Revenues	$	87,193			$	87,600			$	174,690			$	173,517

Operating income		41,373				39,660				82,629				82,103

Income before income taxes		42,386				37,448				77,587				77,568
Effective tax rate			25.5	%			38.9	%			24.2	%			38.5	%

Net income		31,582				22,894				58,843				47,714

Net income per fully diluted share	$	1.10			$	0.76			$	2.04			$	1.58

Weighted average diluted shares outstanding		28,819				31,100				28,867				31,130

Shares outstanding at June 30,		28,986				29,301				28,986				29,301

Operating Income

Operating income was $41.4 million in the second quarter of 2018 versus $39.7 million in the prior-year period. Higher amortization of deferred compensation, a non-cash charge, impacted operating costs by an incremental $18.6 million. The previously announced waiver of CEO compensation beginning March 1, 2018 boosted second quarter operating income by $17.2 million. Additionally, during the second quarter of 2018, the CEO waived $6 million from one of the three deferred compensation agreements. Excluding GAAP treatment of the deferral, but reflecting the lower compensation expense due to the waivers, adjusted operating income was $52.6 million in the second quarter of 2018 versus $32.3 million in the year-ago quarter. See pages 10 and 11 for a reconciliation of GAAP operating income to this adjusted operating income.

Other income/(expense), net

Mark to market investment gains were $1.9 million in the second quarter of 2018 versus gains of $0.5 million in the prior year quarter. Year-over-year interest expense was lower by $1.8 million.

Income Taxes

The Company’s effective tax rate (“ETR”) for the quarter ended June 30, 2018 was 25.5% versus 38.9% for the quarter ended June 30, 2017. This was primarily attributable to the provisions of the Tax Cuts and Jobs Act.

Shareholder Designated Charitable Contribution Program

Our firm has long held the belief that generating returns for our stakeholders, while important, is not the only factor in measuring our corporate success. The importance of the way we and others conduct business is a key facet to our principles. As evidence of this, we have been involved in the field of responsible investing since 1987. Along these lines, and consistent with the firm’s commitment to Environmental, Social & Governance (ESG) principles, we have always focused on corporate governance, transparency and evaluated corporate responsibility of corporate managements. In our program of corporate giving, our shareholder designated charitable contributions program, GAMCO shareholders select which organizations will be recipients of charitable grants from the firm. This year, the majority of our shareholders registered their shares and are eligible to select a charity to receive a $0.20 per share contribution approved by your Board. With this year’s distribution, we will have donated more than $22 million to over 150 charities across the United States since the inception of our program in 2013.

Business Highlights

-	In May, the Gabelli Utility Trust completed a significantly over-subscribed rights offering raising $48.5 million.

-	We launched our fourth exchange traded managed fund, the Gabelli Pet Parents’^TM Fund (the “Fund”). The Fund will invest primarily in companies that actively participate in the companion animal food, therapeutics, diagnostics, product distribution and related services.

Balance Sheet

We ended the quarter with cash and investments of $75.5 million and gross debt of $122.2 million. Gross debt includes the deferred compensation payable of $78.0 million, net of tax benefit.

The balance sheet only includes the $73.7 million of deferred compensation expensed to date. The remaining $30.3 million from two of the deferral agreements will be recorded in the second half of 2018 and in 2019, ratably over the vesting periods, in accordance with GAAP.

On July 2, 2018, $28.3 million of the deferred compensation vested and was paid in cash. We will recognize an income tax benefit of $7.1 million in 2018.

Returns to Shareholder

During the quarter ended June 30, 2018, we purchased 137,189 shares at an average price of $25.81 per share for a total investment of $3.5 million. We also distributed $0.6 million in dividends. Since our IPO in February 1999, we have returned $2.0 billion to shareholders consisting of $1.0 billion of spin-offs, $492.2 million in the form of dividends, and $460.0 million through stock buybacks of approximately 10.6 million shares.

On August 7, 2018, GAMCO’s Board of Directors declared a regular quarterly dividend of $0.02 per share payable on September 25, 2018 to its Class A and Class B shareholders of record on September 10, 2018. The Board will revisit the dividend policy in November in light of the significantly improved financial condition of the Company.

About GAMCO Investors, Inc.

GAMCO Investors, Inc., through its subsidiaries, manages open-end funds and closed-end funds (Gabelli Funds, LLC) and private advisory accounts (GAMCO Asset Management Inc.).

The Company reported Assets Under Management as follows (in millions):

	June 30,		June 30,
	2018		2017
Equities:
Open-end Funds	$	12,906	$	13,574
Closed-end Funds		7,778		7,359
Institutional & PWM - direct (a)		11,982		13,437
Institutional & PWM - sub-advisory		5,459		5,048
SICAV (b)		559		421
Total Equities		38,684		39,839
Fixed Income:
100% U.S. Treasury Fund		1,961		1,813
Institutional & PWM		26		29
Total Fixed Income		1,987		1,842
Total Assets Under Management	$	40,671	$	41,681
(a) Includes $311 million and $300 million of 100% U.S. Treasury Fund AUM at
June 30, 2018 and June 30, 2017, respectively.
(b) Adjusted to include Merger Arbitrage assets of $371 million at June 30, 2017.

Table I: Fund Flows - 2nd Quarter 2018
									Fund
			Market						distributions,
	March 31,		appreciation/			Net cash			net of			June 30,
	2018		(depreciation)			flows			reinvestments			2018
Equities:
Open-end Funds	$	12,964	$	331		$	(381	)	$	(8	)	$	12,906
Closed-end Funds		7,768		201			(49	)		(142	)		7,778
Institutional & PWM - direct		12,392		113			(523	)		-			11,982
Institutional & PWM - sub-advisory		5,251		226			(18	)		-			5,459
SICAV		527		(11	)		43			-			559
Total Equities		38,902		860			(928	)		(150	)		38,684
Fixed Income:
100% U.S. Treasury Fund		1,922		8			31			-			1,961
Institutional & PWM		30		-			(4	)		-			26
Total Fixed Income		1,952		8			27			-			1,987
Total Assets Under Management	$	40,854	$	868		$	(901	)	$	(150	)	$	40,671

Table II: Fund Flows - Year to date June 30, 2018
									Fund
			Market						distributions,
	December 31,		appreciation/			Net cash			net of			June 30,
	2017		(depreciation)			flows			reinvestments			2018
Equities:
Open-end Funds	$	13,747	$	23		$	(847	)	$	(17	)	$	12,906
Closed-end Funds		8,053		17			(38	)		(254	)		7,778
Institutional & PWM - direct		13,420		(191	)		(1,247	)		-			11,982
Institutional & PWM - sub-advisory		5,432		68			(41	)		-			5,459
SICAV		510		(15	)		64			-			559
Total Equities		41,162		(98	)		(2,109	)		(271	)		38,684
Fixed Income:
100% U.S. Treasury Fund		1,870		15			76			-			1,961
Institutional & PWM		31		-			(5	)		-			26
Total Fixed Income		1,901		15			71			-			1,987
Total Assets Under Management	$	43,063	$	(83	)	$	(2,038	)	$	(271	)	$	40,671

Table III

GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)

	For the Quarter Ended
	June 30,
	2018			2017

Investment advisory and incentive fees	$	77,334		$	76,625
Distribution fees and other income		9,859			10,975
Total revenues		87,193			87,600

Compensation costs		28,952			29,437
Distribution costs		9,852			10,795
Other operating expenses		5,534			5,352
Total expenses		44,338			45,584

Operating income before management fee		42,855			42,016

Investment income		1,935			537
Interest expense		(922	)		(2,749	)
Other income/(expense), net		1,013			(2,212	)

Income before management fee and income taxes		43,868			39,804
Management fee expense		1,482			2,356
Income before income taxes		42,386			37,448
Income tax expense		10,804			14,554
Net income attributable to GAMCO Investors, Inc.	$	31,582		$	22,894

Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	1.10		$	0.79

Diluted	$	1.10		$	0.76

Weighted average shares outstanding:
Basic		28,777			28,896

Diluted		28,819			31,100

Actual shares outstanding (a)		28,986			29,301

Notes:
(a) Includes 268,500 and 420,240 of RSAs, respectively.

See GAAP to non-GAAP reconciliation on page 8.

Table IV

GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)

	For the Six Months Ended
	June 30,
	2018			2017

Investment advisory and incentive fees	$	154,682		$	151,614
Distribution fees and other income		20,008			21,903
Total revenues		174,690			173,517

Compensation costs		54,902			54,715
Distribution costs		20,056			21,708
Other operating expenses		10,987			10,471
Total expenses		85,945			86,894

Operating income before management fee		88,745			86,623

Investment income		(2,920	)		1,046
Interest expense		(2,122	)		(5,581	)
Other expense, net		(5,042	)		(4,535	)

Income before management fee and income taxes		83,703			82,088
Management fee expense		6,116			4,520
Income before income taxes		77,587			77,568
Income tax expense		18,744			29,854
Net income attributable to GAMCO Investors, Inc.	$	58,843		$	47,714

Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	2.04		$	1.65

Diluted	$	2.04		$	1.58

Weighted average shares outstanding:
Basic		28,846			28,933

Diluted		28,867			31,130

Actual shares outstanding (a)		28,986			29,301

Notes:
(a) Includes 268,500 and 420,240 of RSAs, respectively.

See GAAP to non-GAAP reconciliation on page 8.

Table V
GAMCO INVESTORS, INC.
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)

	2018									2017
	1st			2nd						1st			2nd			3rd			4th
	Quarter			Quarter			Full Year			Quarter			Quarter			Quarter			Quarter			Full Year
Income Statement Data:

Revenues	$	87,497		$	87,193		$	174,690		$	85,917		$	87,600		$	88,341		$	98,666		$	360,524

Expenses		41,607			44,338			85,945			41,310			45,584			60,013			54,931			201,838

Operating income before
management fee		45,890			42,855			88,745			44,607			42,016			28,328			43,735			158,686

Investment income		(4,855	)		1,935			(2,920	)		509			537			(271	)		(2,747	)		(1,972	)
Interest expense		(1,200	)		(922	)		(2,122	)		(2,832	)		(2,749	)		(2,688	)		(1,891	)		(10,160	)
Other income/(expense), net		(6,055	)		1,013			(5,042	)		(2,323	)		(2,212	)		(2,959	)		(4,638	)		(12,132	)

Income before management
fee and income taxes		39,835			43,868			83,703			42,284			39,804			25,369			39,097			146,554
Management fee expense		4,634			1,482			6,116			2,164			2,356			4,935			4,211			13,666
Income before income taxes		35,201			42,386			77,587			40,120			37,448			20,434			34,886			132,888
Income tax expense		7,940			10,804			18,744			15,300			14,554			3,834			21,391			55,079
Net income attributable to
GAMCO Investors, Inc.	$	27,261		$	31,582		$	58,843		$	24,820		$	22,894		$	16,600		$	13,495		$	77,809

Net income per share
attributable to GAMCO
Investors, Inc.:
Basic	$	0.94		$	1.10		$	2.04		$	0.86		$	0.79		$	0.57		$	0.46		$	2.68

Diluted	$	0.94		$	1.10		$	2.04		$	0.82		$	0.76		$	0.55		$	0.46		$	2.60

Weighted average shares outstanding:
Basic		28,916			28,777			28,846			28,970			28,896			28,926			29,103			28,980

Diluted		28,916			28,819			28,867			31,160			31,100			31,173			30,336			30,947

Reconciliation of non-GAAP
financial measures to GAAP:
Operating income before
management fee		45,890			42,855			88,745			44,607			42,016			28,328			43,735			158,686
Deduct: management fee expense		4,634			1,482			6,116			2,164			2,356			4,935			4,211			13,666
Operating income	$	41,256		$	41,373		$	82,629		$	42,443		$	39,660		$	23,393		$	39,524		$	145,020

Operating margin before
management fee		52.4	%		49.1	%		50.8	%		51.9	%		48.0	%		32.1	%		44.3	%		44.0	%
Operating margin after
management fee		47.2	%		47.4	%		47.3	%		49.4	%		45.3	%		26.5	%		40.1	%		40.2	%


Notes on Non-GAAP Financial Measures:
Operating income before management fee is used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of GAMCO Investors, Inc. (the "Company") as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company's proprietary investment portfolio and interest expense.

Table VI
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)

	June 30,			December 31,			June 30,
	2018			2017			2017

ASSETS

Cash and cash equivalents	$	41,488		$	17,821		$	90,405
Investments		33,955			36,790			35,225
Receivable from brokers		2,993			1,578			843
Other receivables		34,273			45,621			33,707
Deferred tax asset and income tax receivable		17,177			15,615			19,361
Other assets		10,275			10,861			11,390

Total assets	$	140,161		$	128,286		$	190,931

LIABILITIES AND EQUITY

Payable to brokers	$	6,329		$	14,926		$	4,670
Income taxes payable and deferred tax liabilities		3,242			3,128			3,486
Compensation payable (a)		97,626			82,907			53,642
Accrued expenses and other liabilities		33,677			34,454			36,186
Sub-total		140,874			135,415			97,984

5.875% Senior notes (due June 1, 2021)		24,156			24,144			24,132
4.5% Convertible note (due August 15, 2021)		-			-			109,853
4% PIK note (due November 30, 2020)		20,000			50,000			80,000
1.6% AC Note (due February 28, 2018)		-			15,000			-
Total debt		44,156			89,144			213,985
Total liabilities		185,030			224,559			311,969

GAMCO Investors, Inc.'s stockholders' deficit		(44,869	)		(96,273	)		(121,038	)

Total liabilities and equity	$	140,161		$	128,286		$	190,931

(a) Excludes $30.3 million, $59.0 million and $67.5 million of DCCA expense that is not yet recorded under GAAP as of
June 30, 2018, December 31, 2017 and June 30, 2017, respectively.

Non-GAAP information and reconciliation:

GAMCO’s non-GAAP measures include adjusted operating income, adjusted income before taxes, adjusted effective tax rate, adjusted net income and adjusted net income per fully diluted share. GAMCO’s calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or a substitute for, related U.S. GAAP measures.

These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons and benchmark performance between periods to understand operating performance without regard to items that we do not consider to be a component of our core operating performance. Management uses these measures in its financial, investment and operational decision-making processes, for internal reporting and as part of its forecasting and budgeting processes. For these reasons we believe these non-GAAP measures are useful for our investors.

Adjusted operating income, adjusted income before taxes, adjusted effective tax rate, adjusted net income and adjusted net income per fully diluted share can be used by investors to review our results on a consistent basis. Examples of adjustments to these measures include the GAAP impact of the 2016 Deferred Cash Compensation Agreement (“DCCA”), First Half 2017 DCCA, and the Fourth Quarter 2017 DCCA that were put in place to enable the Company to more quickly pay down its debt.

The following tables reconcile adjusted income before taxes, adjusted effective tax rate, adjusted net income and adjusted net income per share to their closest GAAP equivalent:

	For the three months ended June 30, 2018
				Impact of			Impact of
	Reported			Fourth Quarter			First Half			Impact of
	GAAP			2017 DCCA			2017 DCCA			2016 DCCA			Adjusted

Total revenues	$	87,193		$	-		$	-		$	-		$	87,193

Compensation costs		28,952			(2,289	)		(2,107	)		(5,355	)		19,201
Distribution costs		9,852			-			-			-			9,852
Other operating expenses		5,534			-			-			-			5,534
Total expenses		44,338			(2,289	)		(2,107	)		(5,355	)		34,587

Operating income before management fee		42,855			2,289			2,107			5,355			52,606

Other income/(expense), net		1,013			-			-			-			1,013

Income before management fee and income taxes		43,868			2,289			2,107			5,355			53,619
Management fee expense		1,482			(419	)		(33	)		(1,030	)		-
Income before income taxes		42,386			2,708			2,140			6,385			53,619
Income tax expense		10,804			677			535			1,596			13,612
Net income attributable to GAMCO Investors, Inc.	$	31,582		$	2,031		$	1,605		$	4,789		$	40,007

Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	1.10		$	0.07		$	0.06		$	0.17		$	1.39
Diluted	$	1.10		$	0.07		$	0.06		$	0.17		$	1.39

Reconciliation of non-GAAP financial measures to GAAP:

Operating income before management fee	$	42,855		$	2,289		$	2,107		$	5,355		$	52,606
Deduct: management fee expense		(1,482	)		419			33			1,030			-
Operating income	$	41,373		$	2,708		$	2,140		$	6,385		$	52,606

	For the three months ended June 30, 2017

	Reported			Impact of			Impact of
	GAAP			2017 DCCA			2016 DCCA			Non-GAAP

Total revenues	$	87,600		$	-		$	-		$	87,600

Compensation costs		29,437			9,666			(3,260	)		35,843
Distribution costs		10,795			-			-			10,795
Other operating expenses		5,352			-			-			5,352
Total expenses		45,584			9,666			(3,260	)		51,990

Operating income before management fee		42,016			(9,666	)		3,260			35,610

Other expense, net		(2,212	)		-			-			(2,212	)

Income before management fee and income taxes		39,804			(9,666	)		3,260			33,398
Management fee expense		2,356			1,688			(704	)		3,340
Income before income taxes		37,448			(11,354	)		3,964			30,058
Income tax expense		14,554			(4,413	)		1,541			11,682
Net income attributable to GAMCO Investors, Inc.	$	22,894		$	(6,941	)	$	2,423		$	18,376

Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	0.79		$	(0.24	)	$	0.08		$	0.64
Diluted	$	0.76		$	(0.22	)	$	0.08		$	0.61

Reconciliation of non-GAAP financial measures to GAAP:

Operating income before management fee	$	42,016		$	(9,666	)	$	3,260		$	35,610
Deduct: management fee expense		(2,356	)		(1,688	)		704			(3,340	)
Operating income	$	39,660		$	(11,354	)	$	3,964		$	32,270

	For the six months ended June 30, 2018
				Impact of			Impact of
	Reported			Fourth Quarter			First Half			Impact of
	GAAP			2017 DCCA			2017 DCCA			2016 DCCA			Non-GAAP

Total revenues	$	174,690		$	-		$	-		$	-		$	174,690

Compensation costs		54,902			(3,680	)		(1,894	)		(2,339	)		46,989
Distribution costs		20,056			-			-			-			20,056
Other operating expenses		10,987			-			-			-			10,987
Total expenses		85,945			(3,680	)		(1,894	)		(2,339	)		78,032

Operating income before management fee		88,745			3,680			1,894			2,339			96,658

Other expense, net		(5,042	)		-			-			-			(5,042	)

Income before management fee and income taxes		83,703			3,680			1,894			2,339			91,616
Management fee expense		6,116			(838	)		(1,401	)		(2,060	)		1,817
Income before income taxes		77,587			4,518			3,295			4,399			89,799
Income tax expense		18,744			1,130			824			1,099			21,797
Net income attributable to GAMCO Investors, Inc.	$	58,843		$	3,388		$	2,471		$	3,300		$	68,002

Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	2.04		$	0.12		$	0.09		$	0.11		$	2.36
Diluted	$	2.04		$	0.12		$	0.09		$	0.11		$	2.36

	For the six months ended June 30, 2017

	Reported			Impact of			Impact of
	GAAP			2017 DCCA			2016 DCCA			Non-GAAP

Total revenues	$	173,517		$	-		$	-		$	173,517

Compensation costs		54,715			19,206			(5,759	)		68,162
Distribution costs		21,708			-			-			21,708
Other operating expenses		10,471			-			-			10,471
Total expenses		86,894			19,206			(5,759	)		100,341

Operating income before management fee		86,623			(19,206	)		5,759			73,176

Other expense, net		(4,535	)		-			-			(4,535	)

Income before management fee and income taxes		82,088			(19,206	)		5,759			68,641
Management fee expense		4,520			3,552			(1,484	)		6,588
Income before income taxes		77,568			(22,758	)		7,243			62,053
Income tax expense		29,854			(8,761	)		2,791			23,884
Net income attributable to GAMCO Investors, Inc.	$	47,714		$	(13,997	)	$	4,452		$	38,169

Net income per share attributable to GAMCO Investors, Inc.:
Basic	$	1.65		$	(0.48	)	$	0.15		$	1.32
Diluted	$	1.58		$	(0.45	)	$	0.14		$	1.27

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, 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 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, and the ongoing impacts of the Tax Cuts and Jobs Act with respect to tax rates and the non-deductibility of certain portions of NEO compensation. 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.

GAMCO INVESTORS, INC. ET AL - FORM 8-K - EX-99.1 - EXHIBIT 99.1, DATED AUGUST 7, 2018 - August 7, 2018

Attached files

GAMCO INVESTORS, INC. ET AL Reports