– GAAP earnings of $2.73 per share compared to $2.20 per share in 2020
– Net income for 2021 was $73.2 million, an increase of $14.5 million
– December 31, 2021 AUM was $35.0 billion versus $32.6 billion at prior year end
GREENWICH, Conn.–( BUSINESS WIRE )–GAMCO Investors, Inc. (“GAMCO”) (NYSE: GBL) today reported its operating results for the year ended December 31, 2021.
Full Year Results Financial Highlights (Unaudited) Giving Back to Society – (Y)our “S” in ESG
We are committed to allowing our shareholders to choose the recipients of our charitable contributions. The advantage of our shareholder designated charitable contribution (“SDCC”) program is that shareholders designate the 501(c)(3) organizations rather than leaving the selection of charities to the management via a corporate foundation.
The Board of Directors of GAMCO approved a $0.50 per share SDCC for all shareholders of record on December 21, 2021, doubling the prior year’s $0.25 per share designation under the program. We estimate this will total approximately $11.3 million. Since the inception of GAMCO’s SDCC program in 2013, and counting this current amount, shareholders will have designated charitable gifts of $48 million to approximately 350 charitable organizations. When combined with our other charitable donations, this boosts our total contributions to approximately $74 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.
New Climate and Environmental Initiative
In February 2021, we launched Love Our Planet & People (NYSE: LOPP), an actively managed, semi-transparent ETF with an emphasis on the environment, the “E” in ESG. The Fund’s adviser agreed to waive the Fund’s expenses, including management fee, on the first $100 million in net assets for one year from commencement of the Fund’s operations.
Results for the Fourth Quarter
Revenues
– Revenues for the fourth quarter of 2021 were $81.7 million compared with $71.3 million in the fourth quarter of 2020, including incentive fees of $9.2 million in the fourth quarter of 2021 versus $8.5 million in 2020.
– Investment advisory fees were $75.1 million in the fourth quarter of 2021 versus $64.9 million in the year ago quarter:
– Mutual Fund revenues were $46.1 million compared to $40.3 million in the fourth quarter of 2020.
– Institutional and Private Wealth Management revenues, which are generally billed on portfolio values at the beginning of the quarter, were $17.8 million compared to $15.0 million in last year’s fourth quarter.
– SICAV revenues were $2.0 million for the fourth quarter of 2021 as compared to $1.1 million in the year ago quarter.
– Distribution fees from our equity mutual funds and other income were $6.6 million during the fourth quarter of 2021 and $6.4 million in the prior year quarter.
Operating Income Operating income was $29.4 million versus $23.7 million in the fourth quarter of 2020. Waivers of CEO compensation bolstered operating income by $7.6 million versus $4.7 million in the fourth quarter of 2020. Non-Operating Income Mark-to-market investment losses were $1.9 million in the fourth quarter of 2021 versus gains of $4.5 million in the fourth quarter of 2020. Interest expense was $0.8 million in the fourth quarter of 2021 versus $0.6 million in the fourth quarter of 2020. The fourth quarter of 2021 included an expense for the SDCC of $11.3 million. Income Taxes GAMCO’s effective tax rate for the quarter ended December 31, 2021 was 28.8% versus 28.4% for the quarter ended December 31, 2020. Full Year Financials Revenues for 2021 were $301.1 million compared with $259.7 million in 2020.For 2021, operating income of $117.4 million was bolstered by a $20.8 million benefit from CEO compensation waivers. Operating income for 2020 was $99.6 million, enhanced by the $14.7 million benefit from CEO compensation waivers.For the year, mark-to-market investment gains were $8.7 million higher at $0.8 million in 2021 versus losses of $7.9 million in 2020. Interest expense was higher at $2.9 million for 2021 and $2.6 million for 2020. There were charges for the SDCC programs of $11.3 million and $5.4 million in 2021 and 2020, respectively.GAMCO’s effective tax rate for 2021 was 29.6% versus 29.9% for 2020. Management Market Commentary Last year was a good one for the economy and for markets. This year has begun with added volatility as the market is influenced by a set of dynamics we frame as the “Six I’s”: I nflation, I nterest Rates, I nfrastructure, I ncome Taxes, I nternational/Internal Relations and I nfection. Ultimately, we […]
source GAMCO Investors, Inc. Reports Results for the Year Ended December 31, 2021
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