ITEM 6: SELECTED FINANCIAL DATA General The selected historical financial data presented below has been derived in part from, and should be read in conjunction with Management’s Discussion and Analysis included in Item 7 and the audited Consolidated Financial Statements of <strong>GAMCO</strong> <strong>Investors</strong>, <strong>Inc</strong>. and subsidiaries and related notes included in Item 8 of this report. 2002 (a) 2003 (a) 2004 (a) 2005 (a) (b) 2006 (b) <strong>Inc</strong>ome Statement Data Revenues: Investment advisory and incentive fees $ 177,073 $ 175,195 $ 220,561 $ 220,464 $ 227,005 Commission revenue 13,883 12,863 15,573 12,195 12,188 Distribution fees and other income 18,999 17,631 19,651 20,673 22,270 Total revenues 209,955 205,689 255,785 253,332 261,463 Expenses: Compensation costs 79,820 86,998 <strong>10</strong>3,837 <strong>10</strong>6,146 <strong>10</strong>1,995 Management fee 9,533 8,961 11,023 11,462 13,236 Distribution costs 16,164 16,5<strong>10</strong> 20,347 21,512 25,782 Other operating expenses 14,774 18,872 21,455 26,665 44,<strong>10</strong>3 Total expenses 120,291 131,341 156,662 165,785 185,116 Operating income 89,664 74,348 99,123 87,547 76,347 Other income (expense), net: Net gain from investments 1,353 15,6<strong>10</strong> 5,627 <strong>10</strong>,912 41,737 Interest and dividend income 6,757 5,530 <strong>10</strong>,481 18,483 29,382 Interest expense (11,977) (14,838) (16,027) (13,782) (14,226) Total other income (expense), net (3,867) 6,302 81 15,613 56,893 <strong>Inc</strong>ome before income taxes and minority interest 85,797 80,650 99,204 <strong>10</strong>3,160 133,240 <strong>Inc</strong>ome taxes 32,260 30,201 36,118 38,685 50,848 Minority interest 224 816 495 533 <strong>10</strong>,465 Net income $ 53,313 $ 49,633 $ 62,591 $ 63,942 $ 71,927 Net income per share: Basic $ 1.77 $ 1.65 $ 2.11 $ 2.15 $ 2.52 Diluted $ 1.76 $ 1.65 $ 2.06 $ 2.11 $ 2.49 Weighted average shares outstanding: Basic 30,092 30,018 29,673 29,805 28,542 Diluted 30,302 32,081 31,804 31,155 29,525 Actual shares outstanding at December 31st 29,881 30,050 28,837 29,543 28,241 Dividends declared $ - $ 0.02 $ 1.76 $ 0.09 $ 0.12 (a) Restated as described in note A of item 8 of this report on Form <strong>10</strong>-K/A. (b) Restated as described in the explanatory note of this report on Form <strong>10</strong>-K/A. 42
December 31, 2002 (a) 2003 (a) 2004 (a) 2005 (a) (b) 2006 (b) (In thousands) Balance Sheet Data Total assets $ 582,727 $ 734,759 $ 697,842 $ 728,138 $ 837,231 Total liabilities and minority interest 260,933 356,658 363,142 303,637 385,655 Total stockholders’ equity $ 321,794 $ 378,<strong>10</strong>1 $ 334,700 $ 424,501 $ 451,576 (a) Restated as described in note A of item 8 of this report on Form <strong>10</strong>-K. (b) Restated as described in the explanatory note of this report on Form <strong>10</strong>-K/A. December 31, 2002 2003 2004 2005 2006 (In millions) Assets Under Management (unaudited) (at year end, in millions): Mutual Funds $ <strong>10</strong>,068 $ 13,332 $ 13,870 $ 13,698 $ 14,939 Institutional & HNW Separate Accounts Direct 7,989 9,6<strong>10</strong> <strong>10</strong>,269 9,634 <strong>10</strong>,332 Sub-advisory 2,614 3,925 3,706 2,832 2,340 Investment Partnerships 578 692 814 634 491 Total $ 21,249 $ 27,559 $ 28,659 $ 26,798 $ 28,<strong>10</strong>2 43
- Page 1 and 2: UNITED STATES SECURITIES AND EXCHAN
- Page 3 and 4: The aggregate market value of the c
- Page 5 and 6: Our assets under management are org
- Page 7 and 8: - GAM GAMCO Equity Fund, managed by
- Page 9 and 10: As in prior years, we experienced c
- Page 11 and 12: To further extend “value investin
- Page 13 and 14: · Diversified Product Offerings: S
- Page 15 and 16: Open-end Funds On December 31, 2006
- Page 17 and 18: Assets Under Management The followi
- Page 19 and 20: The following table lists the Mutua
- Page 21 and 22: Net Assets as of December 31, Fund
- Page 23 and 24: Net Assets as of December 31, Fund
- Page 25 and 26: Shareholders of the open-end Funds
- Page 27 and 28: Gabelli & Company also offers our o
- Page 29 and 30: Investments by GBL on behalf of our
- Page 31 and 32: ITEM 1A: RISK FACTORS Business Risk
- Page 33 and 34: Catastrophic and unpredictable even
- Page 35 and 36: During 2006, as in prior years, we
- Page 37 and 38: Our businesses are subject to exten
- Page 39 and 40: PART II ITEM 5: MARKET FOR THE REGI
- Page 41: The following table shows informati
- Page 45 and 46: As a result of the first material w
- Page 47 and 48: Consolidated Statements of Income I
- Page 49 and 50: Our liquid balance sheet, coupled w
- Page 51 and 52: For the three years ended December
- Page 53 and 54: Expenses Compensation: Compensation
- Page 55 and 56: Mutual fund revenues increased $3.9
- Page 57 and 58: Liquidity and Capital Resources Our
- Page 59 and 60: Our revenues are primarily driven b
- Page 61 and 62: Critical Accounting Policies In the
- Page 63 and 64: Recent Accounting Developments In F
- Page 65 and 66: ITEM 8: FINANCIAL STATEMENTS AND SU
- Page 67 and 68: REPORT OF INDEPENDENT REGISTERED PU
- Page 69 and 70: GAMCO INVESTORS, INC. AND SUBSIDIAR
- Page 71 and 72: (In thousands) See accompanying not
- Page 73 and 74: GAMCO INVESTORS, INC. AND SUBSIDIAR
- Page 75 and 76: Gabelli Direct, Inc. (“Gabelli Di
- Page 77 and 78: Goodwill Goodwill pertains to the c
- Page 79 and 80: Restatement As discussed within the
- Page 81 and 82: In February 2007, the FASB issued F
- Page 83 and 84: We were not required to consolidate
- Page 85 and 86: E. Debt Debt consists of the follow
- Page 87 and 88: The table below represents for vari
- Page 89 and 90: Shelf Registration On December 28,
- Page 91 and 92: We serve as the investment advisor
- Page 93 and 94:
N. Goodwill In accordance with SFAS
- Page 95 and 96:
As a result of the first material w
- Page 97 and 98:
ITEM 14: PRINCIPAL ACCOUNTANT FEES
- Page 99 and 100:
POWER OF ATTORNEY Each person whose
- Page 101 and 102:
Exhibit 21.1 Subsidiaries of GAMCO
- Page 103 and 104:
Exhibit 31.1 Certifications I, Mari
- Page 105 and 106:
Certifications Exhibit 31.3 I, Dian
- Page 107:
Exhibit 32.2 Certification of Actin