Third Quarter and Nine Month Results
| FOR IMMEDIATE RELEASE Rye, NY October 25, 2000
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Gabelli Asset Management Inc. (NYSE: "GBL") today reported its results for the third quarter and nine months ended September 30, 2000.
Total revenues rose 34% to $59.2 million versus $44.1 million in the third quarter of 1999. Operating income climbed 26% to $24.5 million from $19.5 million in the prior year. Net income increased 42% to $14.5 million versus $10.2 million in the third quarter of 1999. Diluted earnings per share increased 41% to $0.48 for the third quarter of 2000 versus $0.34 per share in 1999.
For the first nine months of 2000 total revenues were $174.1 million, an increase of 38% from total revenues of $126.4 million in the same period a year earlier. Net income rose 37% to $42.7 million versus $31.2 million for the nine months of 1999. Diluted earnings for the first nine months of 2000 were $1.43 per share a 38% increase over prior year-to-date earnings of $1.04 per share.
Revenue and operating earnings growth were driven by the growth in assets under management. During the third quarter of 2000, assets under management averaged $24.1 billion, 27% higher than the $18.9 billion of average assets managed during the third quarter of 1999. Average assets in our open end equity mutual funds climbed 48% to $9.9 billion in 2000 versus $6.7 billion in the 1999 quarter. At September 30, 2000, total assets under management were $23.8 billion.
During the third quarter we purchased 65,000 shares at an average cost of $22.72 per share as part of our announced Share Repurchase Program. This brings repurchases in 2000 to 175,000 at an average price of $18.50 per share. Nearly 476,000 shares have been repurchased under this program since its inception in May 1999 at an average price of $16.58 per share.
Other Highlights:
- Our open end Blue Chip Value Fund, managed by Barbara Marcin, CFA, celebrated its first year of investment operation on August 26, 2000 and was up a stellar 33.25%.
- Our open end Utilities Fund, launched under Tim O'Brien, CFA, also had its first birthday on August 31, 2000. It's return for the first twelve months was 33.11%. We enthusiastically endorse Tim's vision that utilities represent solid investment opportunities.
- We continue to expand our efforts in alternative investments. European Partners (a long/short European equity fund launched this year) also had positive performance, as did all of our hedge funds.
- Our Arbitrage Partnership – where returns are not correlated to the overall market – enjoyed solid performance, advancing 3.4% in the third quarter.
Of interest also is an article we prepared for a specialty magazine that traces the history of hedge funds in the United States. We refer you to this article on our website at www.gabelli.com. Finally, we again offer our publication, Deals... Deals...And More Deals to our shareholders.
Forward Looking Information
This release may contain 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 press release.