December 31, 2022 AUM of $29.3 billion
- Equity AUM was $26.8 billion at December 31, 2022
- Lowest cost 100% U.S. Treasury Money Market Fund with $2.5 billion at December 31, 2022
Revenues of $61.6 million for the fourth quarter; $258.7 million for the full year
Fully diluted fourth quarter earnings were $0.83 per share; $2.51 for the full year
Ended 2022 with $166.5 million in cash and investments and no debt
Charitable contributions totaling $74 million since IPO

GREENWICH, Conn., Feb. 08, 2023 (GLOBE NEWSWIRE) -- GAMCO Investors, Inc. ("GAMI") (OTCQX:GAMI) today reported its operating results for the year ended December 31, 2022.

Giving Back to Society

Since the inception of GAMI's shareholder designated charitable contribution program in 2013, shareholders have designated charitable gifts of $48 million to approximately 350 charitable organizations, including $11.3 million in 2021. Since our initial public offering in February 1999, our firm's combined charitable donations total approximately $74 million.

Full Year Results

Financial Highlights (Unaudited)
U.S. GAAP Basis	Year Ended
(In thousands, except per share data)	December 31, 2022		December 31, 2021

Revenues	$	258,746	$	301,126
Operating income		89,234		117,420
Net income		65,563		73,199

Diluted earnings per common share	$	2.51	$	2.73

Weighted average diluted shares outstanding		26,136		26,809
Shares outstanding		25,680		26,728

Assets Under Management
AUM - end of period (in millions)	$	29,261	$	34,982
AUM - average (in millions)		30,997		34,272

Change in Registration and Move to OTCQX

Following a review of the costs and benefits of being listed on the NYSE, (y)our Board authorized the delisting of GAMI from the NYSE (NYSE:GBL) and deregistration from the SEC. In October, GAMI filed Form 15, which suspended the filing requirements of Forms 10-Q, 10-K, and 8-K. On October 7, 2022, the Company's shares started trading on the OTCQX under the new symbol "GAMI." The Company anticipates redeploying a portion of these savings in client service and technology.

Results for the Fourth Quarter

Revenues

Revenues for the fourth quarter of 2022 were $61.6 million compared with $81.7 million in the fourth quarter of 2021.
Investment advisory fees were $56.6 million in the fourth quarter of 2022 versus $75.1 million in the year ago quarter:
- Fund revenues were $37.4 million compared to $46.1 million in the fourth quarter of 2021.
- Institutional and Private Wealth Management revenues, which are generally billed on portfolio values at the beginning of the quarter, were $13.8 million compared to $17.8 million in last year's fourth quarter.
- SICAV revenues were $2.1 million compared to $2.0 million in the year ago quarter.
- Incentive fee revenues were $3.3 million versus $9.2 million in the fourth quarter of 2021.
Distribution fees from our equity mutual funds and other income were $5.0 million during the fourth quarter of 2022 and $6.6 million in the prior year quarter.

Operating Income

Operating income was $17.0 million versus $29.4 million in the fourth quarter of 2021. We note, on a comparable basis, waiver of CEO compensation bolstered the fourth quarter 2021 operating income by $7.6 million.

Non-Operating Income

Mark-to-market investment gains were $3.8 million in the fourth quarter of 2022 versus losses of $1.9 million, including an expense of $11.3 million for the SDCC in the fourth quarter of 2021. Interest expense in the fourth quarter of 2022 was $0.3 million (due to the capital lease accounting) versus $0.8 million in the fourth quarter of 2021.

Income Taxes

GAMI's effective tax rate ("ETR") for the quarter ended December 31, 2022 was a benefit of 4.1% versus an expense of 28.8% for the quarter ended December 31, 2021.

Full Year Financials

Revenues for 2022 were $258.7 million compared with $301.1 million in 2021.

For 2022, operating income was $89.2 million and was bolstered by a $11.9 million benefit from CEO compensation waivers. Operating income for 2021 was $117.4 million, enhanced by the $20.8 million benefit from CEO compensation waivers.

For the year, mark-to-market investment losses were $4.5 million in 2022 versus gains of $0.8 million in 2021. Interest expense was lower at $2.5 million for 2022 and $2.9 million for 2021. There were charges for the SDCC programs of $11.3 million in 2021.

GAMI's effective tax rate for 2022 was 20.2% versus 29.6% for 2021.

Balance Sheet

GAMI ended the quarter with cash and investments of $148.1 million and $18.3 million of seed capital investments.

Business Highlights

On October 31^st and November 1^st, we hosted our 46^th Annual Automotive Symposium in Las Vegas. The symposium featured presentations from senior management of leading automotive and electric vehicle suppliers.
We hosted our Fourth Annual Healthcare Symposium in conjunction with Columbia Business School on November 18^th.

January 4, 2023 – GCAD (The Gabelli Commercial Aerospace & Defense ETF) launched on NYSE

The ETF focuses on the aerospace and defense sectors. The Fund's adviser has agreed to absorb all expenses including management fees on the first $25 million of net assets. The agreement can be terminated by the Fund's board at any time.

Gabelli U.S. Treasury Money Market Fund

The Gabelli U.S. Treasury Money Market Fund (NASDAQ:GABXX), the lowest cost U.S. Treasury Money Market Fund, exceeded $3.0 billion in AUM during January 2023. The fund is among the most attractive money market funds in its class. The quality of U.S. Treasury securities coupled with total expenses capped at 0.08% and the exemption from state and local income taxes of its dividends, translates into a very competitive after-tax yield.

Return to Shareholders

During the fourth quarter, GAMI paid a dividend of $0.04 per share for a total of $1.0 million and purchased 223,802 shares for $3.5 million at an average price of $15.45 per share. From January 1, 2023 to February 7, 2023, the Company has purchased 150,858 shares at an average price of $16.63 per share.

On February 7, 2023, GAMI's board of directors declared a regular quarterly dividend of $0.04 per share, which is payable on March 28, 2023 to class A and class B shareholders of record on March 14, 2023.

About GAMCO Investors, Inc.

GAMI is known for its research-driven value approach to equity investing (known as PMV with a Catalyst™). GAMI conducts its investment advisory business principally through two subsidiaries: Gabelli Funds, LLC (24 open-end funds, 14 closed-end funds, 5 actively managed semi-transparent ETFs, and a SICAV) and GAMCO Asset Management Inc. (approximately 1,400 institutional and private wealth separate accounts, principally in the U.S.). GAMI serves a broad client base including institutions, intermediaries, offshore investors, private wealth, and direct retail investors. In recent years, GAMI has successfully integrated new teams of RIAs by providing attractive compensation arrangements and extensive research capabilities.

Gabelli Funds offers a wide range of solutions for clients across Value and Growth Equity, ESG, Convertibles, sector-focused strategies including Gold and Utilities, Merger Arbitrage, and U.S. Treasury Money Market Fixed Income.

Table I: Assets Under Management and Fund Flows - 4th Quarter 2022 (in millions)
										Fund
								Market		distributions,
	September 30,							appreciation/		net of			December 31,		December 31,
	2022		Inflows		Outflows			(depreciation)		reinvestments			2022		2021
Equities:
Mutual Funds	$	7,689	$	145	$	(436	)	$	769	$	(27	)	$	8,140	$	10,249
Closed-end Funds		6,580		15		(101	)		676		(124	)		7,046		8,656
Institutional & PWM (a)		9,832		106		(457	)		1,233		-			10,714		13,497
SICAV		785		93		(90	)		79		-			867		831
Total Equities		24,886		359		(1,084	)		2,757		(151	)		26,767		33,233

100% U.S. Treasury Money Market Fund		2,715		1,340		(1,615	)		22		-			2,462		1,717
Institutional & PWM Fixed Income		32		-		-			-		-			32		32
Total Treasuries & Fixed Income		2,747		1,340		(1,615	)		22		-			2,494		1,749
Total Assets Under Management	$	27,633	$	1,699	$	(2,699	)	$	2,779	$	(151	)	$	29,261	$	34,982

(a) Includes $173, $223, and $183 of 100% U.S. Treasury Fund AUM at September 30, 2022, December 31, 2022, and December 31, 2021, 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,
		2022			2021			2022			2021

Investment advisory and incentive fees	$	56,631		$	75,029		$	236,856		$	274,531
Distribution fees and other income		4,971			6,638			21,890			26,595
Total revenues		61,602			81,667			258,746			301,126

Compensation costs (a)		28,420			34,241			111,232			118,186
Management fee expense (a)		2,283			-			5,690			5,552
Distribution costs		5,460			7,753			25,876			30,276
Other operating expenses		8,432			10,232			26,714			29,692
Total expenses		44,595			52,226			169,512			183,706

Operating income		17,007			29,441			89,234			117,420

Investment gain/(loss), net		3,844			(1,916	)		(4,510	)		819
Interest expense		(291	)		(818	)		(2,526	)		(2,919	)
Shareholder-designated contribution		-			(11,279	)		-			(11,279	)
Non-operating gain/(loss)		3,553			(14,013	)		(7,036	)		(13,379	)

Income before income taxes		20,560			15,428			82,198			104,041
Provision for income taxes		(836	)		4,441			16,635			30,842
Net income	$	21,396		$	10,987		$	65,563		$	73,199

Net income:
Basic	$	0.83		$	0.42		$	2.52		$	2.79
Diluted	$	0.83		$	0.41		$	2.51		$	2.73

Weighted average shares outstanding:
Basic		25,648			26,142			25,973			26,267
Diluted		25,665			26,654			26,136			26,809

Actual shares outstanding (b)		25,680			26,728			25,680			26,728

(a) The CEO waiver reduced compensation costs by $0, $6,741, $9,909 and $17,118, respectively, and management fee expense by $0, $869, $2,108 and $3,696, respectively.
(b) Includes 70 and 411 RSA shares at December 31, 2022 and 2021, respectively.

Table III
GAMCO INVESTORS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)

	December 31,		December 31,
		2022		2021

ASSETS
Cash, cash equivalents, and U.S. Treasury Bills	$	66,381	$	142,027
Investments in securities		84,742		20,259
Seed capital investments		18,347		12,085
Receivable from brokers		1,932		3,930
Other receivables		25,839		34,943
Deferred tax asset and income tax receivable		16,741		6,707
Other assets		9,879		11,721
Total assets	$	223,861	$	231,672

LIABILITIES AND STOCKHOLDERS' EQUITY
Payable for investments purchased	$	2,980	$	14,990
Income taxes payable		40		315
Compensation payable		33,919		21,049
Accrued expenses and other liabilities		47,868		50,448
Sub-total		84,807		86,802
Subordinated Notes (due June 15, 2023)		-		50,990
Total liabilities		84,807		137,792

Stockholders' equity (a)		139,054		93,880

Total liabilities and stockholders' equity	$	223,861	$	231,672

(a) Shares outstanding of 25,680 and 26,728, respectively.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

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 may cause our actual results to differ from our expectations include risks associated with the duration and scope of the ongoing coronavirus pandemic resulting in volatile market conditions, 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 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 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.

Gabelli Funds, LLC is a registered investment adviser with the Securities and Exchange Commission and is a wholly owned subsidiary of GAMCO Investors, Inc. (OTCQX:GAMI).

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. The prospectus, which contains more complete information about this and other matters, should be read carefully before investing. To obtain a prospectus, please call 800 GABELLI or visit www.gabelli.com.

Contact:	Kieran Caterina
	Chief Accounting Officer (914) 921-5149

	For further information please visit
	www.gabelli.com

GAMCO Investors, Inc. ("GAMI") Reports Results for the Fourth Quarter and Year Ended December 31, 2022