GAMCO Investors, Inc. Reports Results for the Fourth Quarter

and Year Ended December 31, 2019

-	Fourth quarter net income was 5% higher at $24.4 million vs. $23.3 million a year ago

-	Fully diluted fourth quarter earnings were 12% higher at $0.91 per share versus $0.81 per share a year ago

-	December 31, 2019 AUM was $36.5 billion, up 6% from $34.4 billion at December 31, 2018

Rye, New York, February 4, 2020 – GAMCO Investors, Inc. (“GAMCO”) (NYSE: GBL) today reported its operating results for the quarter ended December 31, 2019.

Past and Future - Giving Back to Society

Financial Highlights (Unaudited)
		Three Months Ended												Year Ended
(In thousands, except per share data)		December 31, 2019				September 30, 2019				December 31, 2018				December 31, 2019				December 31, 2018
U.S. GAAP Basis
Revenues		$	86,280			$	75,345			$	80,977			$	312,368			$	341,455
Operating income			33,043				29,568				52,458				117,984				186,787
Net income			24,382				13,626				23,337				81,917				117,196
Diluted earnings per common share (a)		$	0.91			$	0.50			$	0.81			$	2.98			$	4.07
Weighted average diluted shares outstanding			26,892				27,093				28,636				27,479				28,777
Shares outstanding			27,380				27,548				28,982				27,380				28,982
Assets Under Management
AUM - average (in millions)		$	35,940			$	35,997			$	37,405			$	36,443			$	40,349
AUM - end of period (in millions)			36,475				35,692				34,354				36,475				34,354
(a) CEO waivers of compensation bolstered earnings by $0.26 per share in the December 31, 2019 quarter, by $0.12 per share in the September 30,
2019 quarter, by $0.40 per share in the December 31, 2018 quarter, by $0.75 per share in 2019, and by $1.49 in 2018.

Revenues

-	Total revenues for the fourth quarter of 2019 were $86.3 million compared with $81.0 million in the fourth quarter of 2018.

-	Investment advisory fees were $78.2 million in the fourth quarter of 2019 versus $72.0 million in the fourth quarter of 2018:

-	Open-end and closed-end fund revenues were $43.6 million compared to $45.6 million in the fourth quarter of 2018.

-	Institutional and Private Wealth Management revenues, which are generally billed on portfolio values at the beginning of the quarter, were $19.4 million compared to $23.7 million in the year ago quarter.

-	SICAV revenues were $1.5 million versus $1.4 million in last year’s fourth quarter.

-	Incentive fees earned were $13.7 million as compared to $1.3 million in the prior year quarter.

-	Distribution fees from our open-end equity funds and other income were $8.1 million for the quarter versus $9.0 million in 2018.

-	Total revenues for 2019 were $312.4 million compared with $341.5 million in 2018.

Operating Income

Non-Operating Income

Income Taxes

GAMCO’s effective tax rate for the quarter ended December 31, 2019 was 21.6% versus 23.8% for the quarter ended December 31, 2018 due to timing differences of reversals in the periods.

GAMCO’s effective tax rate for 2019 was 24.6% versus 24.2% for 2018.

 Business Highlights

-        As of the November 15, 2019 record date for the SDCC Program, approximately 82% of all shares were registered and eligible to designate a total of $4.5 million in contributions ($0.20 per share) to be paid in 2020.

-      Our 43rd Annual Automotive Symposium took place on November 4 in Las Vegas, Nevada. The meeting featured presentations by senior management of several leading automotive companies with an emphasis on industry dynamics, technical innovation, EV, and macroeconomic trends.

-      The Gabelli Dividend & Income Trust (NYSE: GDV) successfully completed its first transferable rights offering on November 18. GDV issued 8.2 million common shares for gross proceeds of $165 million.

-      Gabelli Funds and Columbia Business School’s Healthcare and Pharmaceutical Management Program co-hosted a symposium at the Paley Center for Media entitled Healthcare at a Crossroads: What’s the Path Forward? on November 22. The symposium topics included the potential impact of the 2020 election on healthcare access and coverage, drug pricing, and leveraging data and technology to transform care.

-       The Gabelli Equity Trust Inc. (NYSE: GAB) completed a $100 million offering of 5.00% Series K Cumulative Preferred Stock on December 16. The Series K Preferred is perpetual, non-callable for five years, and was issued with a liquidation preference of $25 per share.

-       The Gabelli Multimedia Trust Inc. (NYSE: GGT) successfully completed the issuance of $50 million of Series G Cumulative Preferred Stock on December 20. The Series G Preferred is perpetual, non-callable for five years, and was issued with a liquidation preference of $25 per share.

GAMCO ended the quarter with cash and investments of $120.4 million, debt of $24.2 million, and $34.0 million of deferred compensation payable, net of tax.

Returns to Shareholders

On February 4, 2020, GAMCO’s board of directors declared a regular quarterly dividend of $0.02 per share, which is payable on March 31, 2020 to class A and class B shareholders of record on March 17, 2020.

About GAMCO Investors, Inc.

Since inception in 1977, GAMCO has been identified with its research driven approach to equity investing and Private Market Value (PMV) with a Catalyst^TM investment approach.

GAMCO conducts its investment advisory business principally through two subsidiaries, which are registered investment advisors: Gabelli Funds, LLC (open-end and closed-end funds) and GAMCO Asset Management Inc. (Institutional and Private Wealth Management).

GAMCO provides investment advisory services through 24 open-end funds, 16 closed-end funds, a SICAV and approximately 1,700 institutional and private wealth management accounts, principally in the U.S. The investments are generally in value, growth, non-market correlated, and convertible securities.

Table I: Assets Under Management and Fund Flows - 4th Quarter 2019 (in millions)
														Fund
						Market								distributions,
		September 30,				appreciation/				Net cash				net of				December 31,
		2019				(depreciation)				flows				reinvestments				2019
Equities:
Open-end Funds		$	10,568			$	559			$	(588	)		$	(58	)		$	10,481
Closed-end Funds			7,476				437				227				(135	)			8,005
Institutional & PWM (a)			14,159				872				(466	)			-				14,565
SICAV			550				25				19				-				594
Total Equities			32,753				1,893				(808	)			(193	)			33,645
Fixed Income:
100% U.S. Treasury Fund			2,921				13				(124	)			-				2,810
Institutional & PWM			18				-				2				-				20
Total Fixed Income			2,939				13				(122	)			-				2,830
Total Assets Under Management		$	35,692			$	1,906			$	(930	)		$	(193	)		$	36,475
(a) Includes $237 and $215 of 100% U.S. Treasury Fund AUM at September 30, 2019 and December 31, 2019, respectively.

Table II
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2019				2018				2019				2018
Investment advisory and incentive fees		$	78,197			$	72,035			$	279,090			$	302,651
Distribution fees and other income			8,083				8,942				33,278				38,804
Total revenues			86,280				80,977				312,368				341,455
Compensation costs (a)			33,165				11,304				123,528				83,768
Management fee expense (a)			1,661				1,449				9,963				9,014
Distribution costs			8,680				9,319				34,226				39,194
Other operating expenses			9,731				6,447				26,667				22,692
Total expenses			53,237				28,519				194,384				154,668
Operating income			33,043				52,458				117,984				186,787
Investment income / (loss)			(1,307	)			(16,391	)			(2,217	)			(22,932	)
Interest expense			(647	)			(644	)			(2,609	)			(3,525	)
Shareholder-designated contribution			-				(4,787	)			(4,500	)			(5,671	)
Non-operating income / (loss)			(1,954	)			(21,822	)			(9,326	)			(32,128	)
Income before income taxes			31,089				30,636				108,658				154,659
Provision for income taxes			6,707				7,299				26,741				37,463
Net income		$	24,382			$	23,337			$	81,917			$	117,196
Net income:
Basic		$	0.91			$	0.82			$	2.99			$	4.08
Diluted		$	0.91			$	0.81			$	2.98			$	4.07
Weighted average shares outstanding:
Basic			26,801				28,611				27,407				28,744
Diluted			26,892				28,636				27,479				28,777
Actual shares outstanding (b)			27,380				28,982				27,380				28,982
(a) CEO waiver reduced compensation costs by $7,154, $13,063, $23,010, and $46,607, respectively and
management fee expense by $1,928, $1,902, $4,219, and $9,889, respectively.
(b) Includes 661, 428, 661, and 428 of RSAs, respectively.

Table III
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except per share data)
		December 31,				December 31,
		2019				2018
ASSETS
Cash and cash equivalents		$	86,136			$	41,202
Investments in securities			34,273				33,789
Receivable from brokers			989				3,423
Other receivables			41,557				31,135
Deferred tax asset and income tax receivable			16,574				15,001
Other assets			10,542				10,062
Total assets		$	190,071			$	134,612
LIABILITIES AND STOCKHOLDERS' EQUITY
Payable to brokers		$	-			$	112
Income taxes payable and deferred tax liabilities			942				2,388
Compensation payable (a)			64,279				60,408
Accrued expenses and other liabilities			45,942				37,926
Sub-total			111,163				100,834
5.875% Senior Notes (due June 1, 2021)			24,191				24,168
Total liabilities			135,354				125,002
Stockholders' equity			54,717				9,610
Total liabilities and stockholders' equity		$	190,071			$	134,612
(a) Excludes $11.3 million of Deferred Cash Compensation Agreements ("DCCAs") expense that was not
yet recorded under GAAP as of December 31, 2018.

Non-GAAP information and reconciliation:

The following tables reconcile the U.S. GAAP basis amounts, as reported, to the non-GAAP measures:

		Three Months Ended												Year Ended
(Unaudited) (In thousands, except per share data)		December 31, 2019				September 30, 2019				December 31, 2018				December 31, 2019				December 31, 2018
Net income, U.S. GAAP basis		$	24,382			$	13,626			$	23,337			$	81,917			$	117,196
Impact of DCCAs on expenses and taxes (a):
Compensation costs			1,660				2,568				(10,214	)			14,791				(3,567	)
Management fee expense			1,030				1,030				1,449				4,538				7,197
Provision for income taxes			(646	)			(864	)			2,191				(4,639	)			(907	)
Total impact of DCCAs on expenses and taxes			2,044				2,734				(6,574	)			14,690				2,723
Net income, as adjusted		$	26,426			$	16,360			$	16,763			$	96,607			$	119,919
Per fully diluted share:
Net income, U.S. GAAP basis		$	0.91			$	0.50			$	0.81			$	2.98			$	4.07
Impact of DCCAs		$	0.08			$	0.10			$	(0.22	)		$	0.54			$	0.10
Net income, as adjusted		$	0.99			$	0.60			$	0.59			$	3.52			$	4.17
(a) The non-GAAP adjustments relate to multiple DCCAs.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

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 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.