FORM 10-K/A GAMCO Investors, Inc. - Gabelli

Distribution fees and other income primarily include distribution fee revenue in accordance with Rule 12b-1 (“12b-1”) of the Investment Company Act of 1940, as amended (the
“Investment Company Act”), along with sales charges and underwriting fees associated with the sale of the Mutual Funds plus other revenues. Distribution fees fluctuate based on
the level of assets under management and the amount and type of Mutual Funds sold directly by Gabelli & Company and through various distribution channels.
Compensation costs include variable and fixed compensation and related expenses paid to officers, portfolio managers, sales, trading, research and all other professional
staff. Other operating expenses include marketing, product distribution and promotion costs, clearing charges and fees for Gabelli & Company’s brokerage operation, and other
general and administrative operating costs.
Other income and expenses include net gain from investments (which includes both realized and unrealized gains), interest and dividend income, and interest expense. Net gain from
investments is derived from our proprietary investment portfolio consisting of various public and private investments.
Minority interest represents the share of net income attributable to the minority stockholders, as reported on a separate company basis, of our consolidated majority-owned
subsidiaries and for certain partnerships and offshore funds whose net income we consolidate under FIN-46 and EITF 04-5. Please refer to Note C in our Consolidated Financial
Statements.
Consolidated Statements of Financial Condition
We ended 2006 with approximately $729.0 million in cash and investments, which is net of $16.0 million of cash and investments held by our consolidated investment
partnerships. This included approximately $102.0 million of our investments in The Gabelli Dividend & Income Trust, The Gabelli Global Utility & Income Trust, Westwood
Holdings Group, various Gabelli and GAMCO open-end mutual funds as well as other investments classified as “available for sale securities” for accounting purposes but should be
viewed as highly illiquid because of restrictions. Our debt of $231.8 million consisted of $100 million of 5.5% senior notes due May 2013, a $49.5 million 6% convertible note due
August 2011, and $82.3 million of 5.22% senior notes due February 17, 2007. We had cash and investments, net of debt and minority interest of $17.42 per share, excluding cash
and investments held by our consolidated investment partnerships, on December 31, 2006, compared with $14.79 per share on December 31, 2005.
Stockholders' equity was $451.6 million or $15.99 per share on December 31, 2006 compared to $424.5 million or $14.37 per share on December 31, 2005. The increase in
stockholder’s equity from the end of 2005 was principally related to a $81.8 million increase in total comprehensive income, which was partially offset by our purchase of treasury
stock during 2006 of $54.6 million.
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