|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
||
|
|
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
|
Smaller reporting company
|
|
Emerging growth company
|
Class |
Outstanding at April 28, 2022
|
||
Class A Common Stock, .001 par value
|
|
||
Class B Common Stock, .001 par value
|
|
PART I.
|
FINANCIAL INFORMATION
|
Page
|
Item 1.
|
Unaudited Condensed Consolidated Financial Statements:
|
|
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
9
|
||
10
|
||
11
|
||
12 | ||
14
|
||
16
|
||
17
|
||
17
|
||
18
|
||
19
|
||
19
|
||
Item 2.
|
20
|
|
Item 3.
|
26
|
|
Item 4.
|
26
|
|
PART II.
|
OTHER INFORMATION *
|
|
Item 1.
|
28
|
|
Item 2.
|
28
|
|
Item 6.
|
29
|
|
31
|
* |
Items other than those listed above have been omitted because they are not applicable.
|
March 31,
2022
|
December 31,
2021
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents (includes U.S. Treasury Bills with maturities of less than 3 months)
|
$
|
|
$
|
|
||||
Investments in U.S. Treasury Bills with greater than 3 month maturities
|
|
|
||||||
Investments in equity securities (Including GBL stock with a value of $
|
|
|
||||||
Investments in affiliated registered investment companies
|
|
|
||||||
Investments in partnerships
|
|
|
||||||
Receivable from brokers
|
|
|
||||||
Investment advisory fees receivable
|
|
|
||||||
Receivable and investment in note receivable from affiliates
|
|
|
||||||
Goodwill
|
|
|
||||||
Other assets
|
|
|
||||||
Investments in marketable securities held in trust
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
|
||||||||
Payable to brokers
|
$
|
|
$
|
|
||||
Income taxes payable, including deferred tax liabilities, net
|
|
|
||||||
Compensation payable
|
|
|
||||||
Securities sold, not yet purchased
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Deferred underwriting fee payable
|
|
|
||||||
PMV warrant liability |
||||||||
Total liabilities
|
|
|
||||||
Redeemable noncontrolling interests
|
|
|
||||||
Commitments and contingencies (Note J)
|
||||||||
Equity:
|
||||||||
Preferred stock, $
|
||||||||
Class A Common Stock, $
|
|
|
||||||
Class B Common Stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Treasury stock, at cost (
|
(
|
)
|
(
|
)
|
||||
Total Associated Capital Group, Inc. equity
|
|
|
||||||
Noncontrolling interests
|
(
|
)
|
(
|
)
|
||||
Total equity
|
|
|
||||||
Total liabilities and equity
|
$
|
|
$
|
|
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Revenues
|
||||||||
Investment advisory and incentive fees
|
$
|
|
$
|
|
||||
Other
|
|
|
||||||
Total revenues
|
|
|
||||||
Expenses
|
||||||||
Compensation
|
|
|
||||||
Management fee
|
|
|
||||||
Other operating expenses
|
|
|
||||||
Total expenses
|
|
|
||||||
Operating loss
|
(
|
)
|
(
|
)
|
||||
Other income (expense)
|
||||||||
Net gain/(loss) from investments
|
(
|
)
|
|
|||||
Interest and dividend income
|
|
|
||||||
Interest expense
|
(
|
)
|
(
|
)
|
||||
Shareholder-designated contribution
|
(
|
)
|
(
|
)
|
||||
Total other income (expense), net
|
(
|
)
|
|
|||||
Income/(loss) before income taxes
|
(
|
)
|
|
|||||
Income tax expense/(benefit)
|
(
|
)
|
|
|||||
Income/(loss) before noncontrolling interests
|
(
|
)
|
|
|||||
Income/(loss) attributable to noncontrolling interests
|
|
|
||||||
Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders
|
$
|
(
|
)
|
$
|
|
|||
Net income/(loss) per share attributable to Associated Capital Group, Inc.’s shareholders:
|
||||||||
Basic
|
$
|
(
|
)
|
$
|
|
|||
Diluted
|
$
|
(
|
)
|
$
|
|
|||
Weighted average shares outstanding:
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
||||||
Actual shares outstanding:
|
|
|
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Net income/(loss) before noncontrolling interests
|
$
|
(
|
)
|
$
|
|
|||
Less: Comprehensive income/(loss) attributable to noncontrolling interests
|
|
|
||||||
Comprehensive income/(loss) attributable to Associated Capital Group, Inc.
|
$
|
(
|
)
|
$
|
|
Associated Capital Group, Inc. Shareholders
|
||||||||||||||||||||||||||||||||
Common
Stock
|
Retained
Earnings
|
Additional
Paid-in
Capital
|
Treasury
Stock
|
Total
|
Noncontrolling
Interests
|
Total
Equity
|
Redeemable
Noncontrolling
Interests
|
|||||||||||||||||||||||||
Balance at December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||||
Redemptions of noncontrolling interests |
|
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||||
Net income/(loss)
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|
||||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||||
Accretion of redeemable noncontrolling interests |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Other changes to redeemable noncontrolling interests |
( |
) | ||||||||||||||||||||||||||||||
Balance at March 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Associated Capital Group, Inc. Shareholders
|
||||||||||||||||||||||||||||||||
|
Common
Stock
|
Retained
Earnings
|
Additional
Paid-in
Capital
|
Treasury
Stock
|
Total
|
Noncontrolling
Interests
|
Total
Equity
|
Redeemable
Noncontrolling
Interests
|
||||||||||||||||||||||||
Balance at December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Contributions from redeemable noncontrolling interests |
||||||||||||||||||||||||||||||||
Redemptions of noncontrolling interests
|
|
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||||
Balance at March 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Operating activities
|
||||||||
Net income/(loss)
|
$
|
(
|
)
|
$
|
|
|||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
|
||||||||
Equity in net (gains) losses from partnerships
|
|
(
|
)
|
|||||
Depreciation and amortization
|
|
|
||||||
Deferred income taxes
|
(
|
)
|
|
|||||
Donated securities
|
|
|
||||||
Unrealized (gains)/losses on securities
|
|
(
|
)
|
|||||
Realized gains on sales of securities
|
(
|
)
|
(
|
)
|
||||
(Increase)/decrease in assets:
|
||||||||
Investments in trading securities
|
|
|
||||||
Investments in partnerships:
|
||||||||
Contributions to partnerships
|
(
|
)
|
(
|
)
|
||||
Distributions from partnerships
|
|
|
||||||
Receivable from affiliates
|
|
|
||||||
Receivable from brokers
|
(
|
)
|
(
|
)
|
||||
Investment advisory fees receivable
|
|
|
||||||
Income taxes receivable
|
|
(
|
)
|
|||||
Other assets
|
(
|
)
|
||||||
Increase/(decrease) in liabilities:
|
||||||||
Payable to affiliates
|
|
(
|
)
|
|||||
Payable to brokers
|
|
|
||||||
Income taxes payable
|
|
|
||||||
Compensation payable
|
(
|
)
|
(
|
)
|
||||
Accrued expenses and other liabilities
|
(
|
)
|
(
|
)
|
||||
Total adjustments
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Investing activities
|
||||||||
Maturities of marketable securities held in trust |
||||||||
Purchases of marketable securities held in trust |
( |
) | ||||||
Purchases of securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of securities
|
|
|
||||||
Return of capital on securities
|
|
|
||||||
Net cash provided by/(used in) investing activities
|
$
|
(
|
)
|
$
|
|
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Financing activities
|
||||||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
||||
Contributions from redeemable noncontrolling interests
|
|
|
||||||
Redemptions of redeemable noncontrolling interests | ( |
) | ||||||
Net cash provided by (used in) financing activities
|
(
|
)
|
(
|
)
|
||||
Net increase in cash, cash equivalents and restricted cash
|
|
|
||||||
Cash, cash equivalents and restricted cash at beginning of period
|
|
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
|
$
|
|
||||
Cash paid/(received) for taxes
|
$
|
|
$
|
|
Cash and cash equivalents
|
|
|
||||||
Restricted cash included in receivable from brokers
|
|
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
|
$
|
|
Three Months Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
Investment advisory and incentive fees
|
||||||||
Asset-based advisory fees
|
$
|
|
$
|
|
||||
Performance-based advisory fees
|
|
|
||||||
Sub-advisory fees
|
|
|
||||||
Sub-total |
|
|
||||||
|
||||||||
Other
|
||||||||
Miscellaneous
|
|
|
||||||
|
||||||||
Total
|
$
|
|
$
|
|
March 31, 2022
|
December 31, 2021
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Debt - Trading Securities:
|
||||||||||||||||
U.S. Treasury Bills
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity Securities:
|
||||||||||||||||
Common stocks
|
|
|
|
|
||||||||||||
Mutual funds
|
|
|
|
|
||||||||||||
Other investments
|
|
|
|
|
||||||||||||
Total investments in equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Investments in marketable securities held in trust(1) | $ | $ | $ | $ |
March 31, 2022
|
||||||||||||||||
Amortized Cost
|
Gross Unrealized
Holding Gains
|
Gross Unrealized
Holding Losses
|
Estimated
Fair Value
|
|||||||||||||
Held to maturity:
|
||||||||||||||||
Investment in note receivable from affiliate(2)
|
$ | $ | $ | $ |
December 31, 2023
|
||||||||||||||||
Amortized Cost
|
Gross Unrealized
Holding Gains
|
Gross Unrealized
Holding Losses
|
Estimated
Fair Value
|
|||||||||||||
Held to maturity:
|
||||||||||||||||
Investment in note receivable from affiliate(2)
|
$ | $ | $ | $ |
March 31, 2022
|
December 31, 2021
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Common stocks
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other investments
|
|
|
|
|
||||||||||||
Total securities sold, not yet purchased
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2022
|
December 31, 2021
|
|||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Closed-end funds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Mutual funds
|
|
|
|
|
||||||||||||
|
||||||||||||||||
Total investments in affiliated registered investment
companies
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31, 2022
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities and equity
|
||||||||||||
Total liabilities
|
|
|
|
|||||||||
Redeemable noncontrolling interests
|
|
|
|
|||||||||
Total equity(1)
|
|
(
|
)
|
|
||||||||
Total liabilities and equity
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities and equity
|
||||||||||||
Total liabilities
|
|
|
|
|||||||||
Redeemable noncontrolling interests
|
|
|
|
|||||||||
Total equity(1)
|
|
(
|
)
|
|
||||||||
Total liabilities and equity
|
$
|
|
$
|
|
$
|
|
Three Months Ended March 31, 2022
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total revenues
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Operating loss
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total other income/(expense), net
|
(
|
)
|
|
(
|
)
|
|||||||
Income/(loss) before noncontrolling interests, net of taxes
|
(
|
)
|
|
(
|
)
|
|||||||
Income attributable to noncontrolling interests
|
|
|
|
|||||||||
Net income/(loss)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Three Months Ended March 31, 2021
|
||||||||||||
Prior to
Consolidation
|
Consolidated
Entities
|
As Reported
|
||||||||||
Total revenues
|
$
|
|
$
|
|
$
|
|
||||||
Operating loss
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total other income, net
|
|
|
|
|||||||||
Income before noncontrolling interests, net of taxes
|
|
|
|
|||||||||
Income attributable to noncontrolling interests
|
|
|
|
|||||||||
Net income/(loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
March 31,
2022
|
December 31,
2021
|
|||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Investments in securities
|
|
|
||||||
Receivable from brokers
|
|
|
||||||
Investments in partnerships and affiliates
|
|
|
||||||
Investments in marketable securities held in trust |
||||||||
Other assets
|
|
|
||||||
Accrued expenses and other liabilities(1)
|
(
|
)
|
(
|
)
|
||||
PMV warrant liability |
( |
) | ( |
) | ||||
Redeemable noncontrolling interests
|
(
|
)
|
(
|
)
|
||||
Nonredeemable noncontrolling interests
|
|
|
||||||
AC Group’s net interests in consolidated VIEs
|
$
|
|
$
|
|
•
|
Level 1 - Unadjusted quoted prices for identical instruments in active markets.
|
•
|
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and
model-derived valuations in which all significant inputs and significant value drivers are observable.
|
•
|
Level 3 - Valuations derived from valuation techniques in which significant inputs or significant value drivers are unobservable.
|
March 31, 2022
|
||||||||||||||||
Assets
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Total
|
||||||||||||
Cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Investments in securities (including GBL stock):
|
||||||||||||||||
Trading - U.S. Treasury Bills
|
|
|
|
|
||||||||||||
Common stocks
|
|
|
|
|
||||||||||||
Mutual funds
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total investments in securities
|
|
|
|
|
||||||||||||
Investments in affiliated registered investment companies:
|
||||||||||||||||
Closed-end funds
|