| FOR IMMEDIATE RELEASE Rye, NY April 25, 2000
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Gabelli Asset Management Inc. (NYSE: "GBL") today reported record results for the first quarter ended March 31, 2000.
Total revenues surged 46% to $57.8 million versus $39.7 million in the first quarter of 1999. Operating income climbed 52% to $25.4 million from $16.8 million in the prior year as GBL's operating margins improved to 43.9% in the first quarter of 2000 versus 42.2% in the first quarter of 1999. Net income jumped 51% to $14.0 million versus $9.3 million in the first quarter of 1999. Earnings were $0.47 per share for the first quarter of 2000 versus $0.31 per share in 1999. Earnings for 1999 are reported on a pro forma basis and exclude a non-recurring charge of $1.03 per share resulting from the Company's initial formation. Including this non-recurring charge, the Company had a net loss of $0.72 per share in 1999. In 2000, an investment banking fee added $0.03 per share to overall results.
Revenue and earnings growth is driven by the growth in assets under management. During the first quarter of 2000, assets under management averaged $22.4 billion, 34% higher than the $16.7 billion in average assets managed during the first quarter of 1999. Average assets in our open end equity mutual funds climbed over 53%, to $8.8 billion in 2000 versus $5.7 billion in the 1999 quarter. As March 31, 2000, assets under management were $23.0 billion.
Forward Looking Information
This release contains forward-looking statements about future operations, results and performance, which involve risks and uncertainties that may cause the actual operations, results or performance to differ materially from those expressed in or implied by the forward-looking statements. These risks and uncertainties include the performance of the securities markets and the Company's investment products, future economic conditions, changes in business strategy and other factors. Consequently, no assurance can be given as to future operations, results or performance, and neither the Company nor any other person assumes liability for the accuracy and completeness of the forward-looking statements in this release.