MutualFundWire.com: GAMCO Reports Lower Earnings, Will Buy Back More Shares

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Wednesday, August 6, 2008

GAMCO Reports Lower Earnings, Will Buy Back More Shares

Gamco gave shareholders a mixed set of news. On the one hand the asset managers saw its earnings decline. On the other hand it will buy back more shares.

Gamco saw its earnings drop nearly 20 percent to $14.46 million, or 51 cents a share, during the second quarter. That is down from $18 million, or 63 cents a share in June of 2007. That earnings falloff was a far steeper decline than its fall in AUM.

Total AUM slipped 7.5 percent from last year to $28.3 billion at the end of June. That number is also a decrease of 1.3 percent from the end of the first quarter.

Gamco Investors' board has greenlighted the repurchase of up to an additional 400,000 shares of its Class A Common Stock. Currently, there are about 1.08 million shares authorized for repurchase.

Gamco (NYSE: GBL) share price closed Wednesday at $46.97, down from Tuesday's close of $47.29.

Company Press Release

RYE, N.Y.--(BUSINESS WIRE)--GAMCO Investors, Inc. (NYSE: GBL - News) announced today that its Board of Directors authorized the repurchase of up to an additional 400,000 shares of its Class A Common Stock at such times, prices and amounts to be determined by the company. Including this additional authorization, there are currently approximately 1,082,000 shares authorized for repurchase under GAMCO’s stock repurchase program. GAMCO has repurchased 679,725 shares of its Class A Common Stock at an average investment of $48.63 per share in 2008 and a total of 5,535,783 shares at an average cost of $40.82 since the repurchase program began in 1999.

GAMCO Investors, Inc., through its subsidiaries, manages private advisory accounts (GAMCO Asset Management Inc.), mutual funds and closed-end funds (Gabelli Funds, LLC), and partnerships and offshore funds (Gabelli Securities, Inc.). As of March 31, 2008, GAMCO had approximately $28.7 billion in assets under management.