# EDGAR Filing Document

**Accession Number:** 0001642122
**File Stem:** 0001437749-23-003183
**Filing Date:** 2023-2
**Character Count:** 25686
**Document Hash:** d767760f325ea05bdef14b0124853360
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-23-003183.hdr.sgml**: 20230213

**ACCESSION NUMBER**: 0001437749-23-003183

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20230208

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230213

**DATE AS OF CHANGE**: 20230213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Associated Capital Group, Inc.
- **CENTRAL INDEX KEY:** 0001642122
- **STANDARD INDUSTRIAL CLASSIFICATION:** SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37387
- **FILM NUMBER:** 23619982

**BUSINESS ADDRESS:**
- **STREET 1:** 191 MASON STREET
- **CITY:** GREENWICH
- **STATE:** CT
- **ZIP:** 06830
- **BUSINESS PHONE:** 914-921-5135

**MAIL ADDRESS:**
- **STREET 1:** 191 MASON STREET
- **CITY:** GREENWICH
- **STATE:** CT
- **ZIP:** 06830

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Gabelli Securities Group, Inc.
- **DATE OF NAME CHANGE:** 20150512

ac20221117_8k.htm

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM **8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of The**

**Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported) **February 8, 2023**

## ASSOCIATED CAPITAL GROUP, INC.
**(Exact name of registrant as specified in its charter)**

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| | | |
|:---|:---|:---|
| **Delaware** | **1-37387** | **47-3965991** |
| **(State or other jurisdiction of incorporation)** | **(Commission File Number)** | **(IRS Employer Identification No.)** |
| **191 Mason Street**, **Greenwich**, **CT** |  | **06830** |
| **(Address of principal executive offices)** |  | **(Zip Code)** |

---

**Registrant's telephone number, including area code (**203**) **629-9595**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

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| | |
|:---|:---|
| Title of each class | Name of each exchange on which registered |
| Class A Common Stock, par value $0.001 per share<br> AC | New York Stock Exchange |

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

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The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition."

On February 8, 2023, Associated Capital Group, Inc. (NYSE: AC) ("Associated Capital"), announced its results of operations for the quarter, and year, ended December 31, 2022. A copy of the related press release is being filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference in its entirety.

The information furnished under Item 2.02, including the exhibit attached hereto, is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except otherwise as expressly stated in such filing.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

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(d) Exhibits

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| | |
|:---|:---|
| 99.1 | [Associated Capital Group's Press Release, dated February 8, 2023.](ex_448541.htm) |

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| | |
|:---|:---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

**Associated Capital Group, Inc.**

<u>By: /s/ Ian J. McAdams</u>

Ian J. McAdams

Interim Co-Chief Financial Officer

Date: <u>February 13, 2023</u>

## Exhibit 99.1

**Exhibit 99.1**

For Immediate Release: Douglas R. Jamieson Chief Executive Officer (203) 629 9595 Associated-Capital-Group.com

**ASSOCIATED CAPITAL GROUP, INC.**

**Reports Fourth Quarter and Full Year Results** 

**Book Value was $40.48 per share at year-end 2022**<br>

**Yea-end AUM: $1.84 **billion at December 31, 2022 vs. $1.78 billion at December 31, 2021**<br>

**Net Inflows were $100 million for the year**<br>

**Full year Merger Arbitrage performance<sup>1</sup>: +4.47% gross, +2.75% net**<br>

Greenwich, CT, February 8, 2023 – Associated Capital Group, Inc. ("AC" or the "Company"), a diversified financial services company, today reported its financial results for the fourth quarter and full year-ended December 31, 2022.

**Financial Highlights - GAAP Basis**

($ in 000's except AUM and per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(Unaudited)** | **Fourth Quarter** | **Fourth Quarter** | **Full Year** | **Full Year** |
|  | **2022** | **2021** | **2022** | **2021** |
| AUM - end of period (in millions) | $1842 | $1781 | $1842 | $1781 |
| AUM - average (in millions) | 1811 | 1735 | 1817 | 1595 |
| Revenues | 7538 | 13998 | 15228 | 20924 |
| Operating Loss | (2616) | (2131) | (11262) | (19076) |
| Investment and other non-operating income, net | 19550 | 14961 | (49203) | 100415 |
| Income/(loss) before income taxes | 16934 | 12830 | (60465) | 81339 |
| Net income/(loss) to shareholders: |  |  |  |  |
| Net income/(loss) | 13664 | 9429 | (48907) | 59203 |
| Net income/(loss) per share-diluted | $0.62 | $0.43 | $(2.22) | $2.68 |
| Class A shares outstanding (thousands) | 3027 | 3095 | 3027 | 3095 |
| Class B shares outstanding (thousands) | 18963 | 18963 | 18963 | 18963 |
| Total shares outstanding (thousands) | 21990 | 22058 | 21990 | 22058 |
| Book Value Per Share | $40.48 | $42.48 | $40.48 | $42.48 |

---

_____________________________

<sup>1</sup> Performance is shown in US dollars and does not include the impact of currency hedging programs related to non-US dollar classes of certain investment funds.

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***Giving Back to Society - (Y)our "S" in ESG***

**Fourth Quarter Financial Data**

Assets under management ended the quarter at $1.84 billion compared to $1.75 billion at September 30, 2022 and $1.78 billion at December 31, 2021. <br>

At December 31, 2022, book value was $40.48 per share versus $39.96 per share at September 30, 2022 and $42.48 per share at December 31, 2021. <br>

**Fourth Quarter Results**

Fourth quarter revenues of $7.5 million were $6.5 million lower than the $14.0 million for the fourth quarter of 2021. This was primarily the result of lower performance-based incentive fees partially offset by higher management fees based on higher average AUM.

Total operating expenses, excluding management fee, were $10.2 million in the fourth quarter 2022 compared to $14.9 million in the comparable 2021 period reflecting lower variable performance-based compensation expense in 2022.

Net investment and other non-operating income was $19.6 million for the fourth quarter, an increase of $4.6 million from the $15.0 million recorded in the year ago quarter. This was primarily the result of the appreciation of our internal portfolios in the last quarter of 2022.

There was no management fee expense in the fourth quarter due to losses in 2022 compared to a management fee expense of $1.2 million in the fourth quarter of 2021. Our provision for income taxes was $2.9 million for the quarter compared to $2.6 million in the comparable period of 2021.

**Full Year Results**

Revenues for the year-ended 2022 were $15.2 million compared to $20.9 million in 2021, largely the result of lower performance-based incentive fees offset in part by higher management fees based on higher average AUM in 2022.

For 2022, the operating loss before management fee was $11.3 million compared to $10.7 million in 2021, a combination of lower revenues and incrementally higher insurance premiums in 2022.

The net investment and other non-operating loss was $49.2 million versus income of $100.4 million generated in 2021. In 2022, market volatility brought on by rising interest rates, geo-political factors, and accelerating inflation impacted AC's investments, other than investments in merger arbitrage funds, on a mark-to-market basis.

In 2022, there was no management fee expense due to losses in the period compared to a management fee expense of $8.4 million in 2021.

Our income tax rate for the year was 24.7% compared to 21.8% for the prior year primarily driven by foreign investments and foreign income which reduced the prior year rate.

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***Assets Under Management (AUM)***

Assets under management at December 31, 2022 reached a record of $1.84 billion, up $61 million from year-end 2021 due to annual net inflows of $100 million and market appreciation of $34 million, partially offset by the impact of currency fluctuations of $73 million from non-US dollar classes of investment funds.

*AUM since spin-off:*

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| ($ in millions) | **2022** | **2021** | **2020** | **2019** | **2018** | **2017** | **2016** | **2015** |
| Merger Arbitrage | $1588 | $1542 | $1126 | $1525 | $1342 | $1384 | $1076 | $869 |
| Event-Driven Value(a) | 222 | 195 | 180 | 132 | 118 | 91 | 133 | 145 |
| Other | 32 | 44 | 45 | 59 | 60 | 66 | 63 | 66 |
| Total AUM | $1842 | $1781 | $1351 | $1716 | $1520 | $1541 | $1272 | $1080 |

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(a) Assets under management represent the assets invested in this strategy that are attributable to AC.

**Alternative Investment Management**

The alternative investment strategy offerings center around our merger arbitrage strategy which has an absolute return focus of generating returns independent of the broad equity and fixed income markets. We also offer strategies utilizing fundamental, active, event-driven and special situations investments.

*Merger Arbitrage*

For the fourth quarter 2022, the longest continuously offered fund in the merger arbitrage strategy generated gross returns of 4.40% (3.45% net of fees). For the full year, gross returns were 4.47% (2.75% net of fees), adding to its historical record of positive net returns in 36 of the last 38 years. A summary of the performance is as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  | **Since** |
| **Performance%(a)** | **4Q '22** | **2022** | **2021** | **2020** | **2019** | **5 Year(b)** | **1985(b)(c)** |
| **Merger Arb** |  |  |  |  |  |  |  |
| Gross | 4.40 | 4.47 | 10.81 | 9.45 | 8.55 | 7.49 | 10.22 |
| **Net** | **3.45** | **2.75** | **7.78** | **6.70** | **5.98** | **5.15** | **7.24** |

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(a) Net performance is net of fees and expenses, unless otherwise noted. Performance shown for an actual fund in this strategy. The performance of other funds in this strategy may vary. Past performance is no guarantee of future results.

(b) Represents annualized returns through December 31, 2022

(c) Inception Date: February 1985

Worldwide M&A activity totaled $3.6 trillion for 2022 with Technology accounting for a record 20% of deal making. Although M&A activity was down 37% in 2022 compared to the prior year, M&A activity is still in line with pre-pandemic levels. It is important to note that rising nominal interest rates may help to bolster merger arbitrage returns in the near term, because deal spreads widen to compensate arbitrageurs for the opportunity cost of a "riskless" investment (i.e. U.S. treasury bills) and for the time value of money.

The Merger Arbitrage strategy is offered by mandate and client type through partnerships and offshore corporations serving accredited as well as institutional investors. The strategy is also offered in separately managed accounts, a Luxembourg UCITS and a London Stock Exchange listed investment company, Gabelli Merger Plus + Trust Plc (GMP-LN).

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| | | | | |
|:---|:---|:---|:---|:---|
| | | | | ![a4.jpg](a4.jpg) |
| | | | | ![a4.jpg](a4.jpg) |
| **Merger Arbitrage <sup>(1)</sup>** | **Merger Arbitrage <sup>(1)</sup>** | **Merger Arbitrage <sup>(1)</sup>** | **Merger Arbitrage <sup>(1)</sup>** | ![a4.jpg](a4.jpg) |
| Percent Return (%) | Percent Return (%) | Percent Return (%) | Percent Return (%) | ![a4.jpg](a4.jpg) |
| Year | Gross Return | **Net Return** | 90 Day<br> T-Bills | ![a4.jpg](a4.jpg) |
| 2022 | 4.47 | **2.75** | 1.50 | ![a4.jpg](a4.jpg) |
| 2021 | 10.81 | **7.78** | 0.05 | ![a4.jpg](a4.jpg) |
| 2020 | 9.45 | **6.70** | 0.58 | ![a4.jpg](a4.jpg) |
| 2019 | 8.55 | **5.98** | 2.25 | ![a4.jpg](a4.jpg) |
| 2018 | 4.35 | **2.65** | 1.86 | ![a4.jpg](a4.jpg) |
| 2017 | 4.69 | **2.92** | 0.84 | ![a4.jpg](a4.jpg) |
| 2016 | 9.13 | **6.44** | 0.27 | ![a4.jpg](a4.jpg) |
| 2015 | 5.33 | **3.43** | 0.03 | ![a4.jpg](a4.jpg) |
| 2014 | 3.89 | **2.29** | 0.03 | ![a4.jpg](a4.jpg) |
| 2013 | 5.33 | **3.43** | 0.05 | ![a4.jpg](a4.jpg) |
| 2012 | 4.32 | **2.63** | 0.07 | ![a4.jpg](a4.jpg) |
| 2011 | 4.89 | **3.07** | 0.08 | ![a3.jpg](a3.jpg) |
| 2010 | 9.07 | **6.35** | 0.13 | ![a3.jpg](a3.jpg) |
| 2009 | 12.40 | **9.15** | 0.16 | ![a3.jpg](a3.jpg) |
| 2008 | 0.06 | **-0.94** | 1.80 | ![a3.jpg](a3.jpg) |
| 2007 | 6.39 | **4.26** | 4.74 | ![a3.jpg](a3.jpg) |
| 2006 | 12.39 | **8.96** | 4.76 | ![a3.jpg](a3.jpg) |
| 2005 | 9.40 | **6.63** | 3.00 | ![a3.jpg](a3.jpg) |
| 2004 | 5.49 | **3.69** | 1.24 | ![a3.jpg](a3.jpg) |
| 2003 | 8.90 | **6.26** | 1.07 | ![a3.jpg](a3.jpg) |
| 2002 | 4.56 | **2.45** | 1.70 | ![a3.jpg](a3.jpg) |
| 2001 | 7.11 | **4.56** | 4.09 | ![a3.jpg](a3.jpg) |
| 2000 | 18.10 | **13.57** | 5.96 | ![a3.jpg](a3.jpg) |
| 1999 | 16.61 | **12.31** | 4.74 | ![a3.jpg](a3.jpg) |
| 1998 | 10.10 | **7.21** | 5.06 | ![a3.jpg](a3.jpg) |
| 1997 | 12.69 | **9.21** | 5.25 | ![a3.jpg](a3.jpg) |
| 1996 | 12.14 | **8.84** | 5.25 | ![a3.jpg](a3.jpg) |
| 1995 | 14.06 | **10.27** | 5.75 | ![a2.jpg](a2.jpg) |
| 1994 | 7.90 | **5.53** | 4.24 | ![a2.jpg](a2.jpg) |
| 1993 | 12.29 | **8.91** | 3.09 | ![a2.jpg](a2.jpg) |
| 1992 | 7.05 | **4.78** | 3.62 | ![a2.jpg](a2.jpg) |
| 1991 | 12.00 | **8.76** | 5.75 | ![a2.jpg](a2.jpg) |
| 1990 | 9.43 | **6.67** | 7.92 | ![a2.jpg](a2.jpg) |
| 1989 | 23.00 | **17.55** | 8.63 | ![a2.jpg](a2.jpg) |
| 1988 | 45.84 | **35.66** | 6.76 | ![a2.jpg](a2.jpg) |
| 1987 | -13.67 | **-14.54** | 5.90 | ![a2.jpg](a2.jpg) |
| 1986 | 33.40 | **26.14** | 6.24 | ![a2.jpg](a2.jpg) |
| 1985 | 30.47 | **22.64** | 7.82 | ![a2.jpg](a2.jpg) |
|  |  |  |  | ![a2.jpg](a2.jpg) |
| Average | 10.59 | **7.50** | 3.22 | ![a2.jpg](a2.jpg) |

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| | |
|:---|:---|
| <br> ***(1) The performance above refers to our longest continuously offered fund in the merger arbitrage strategy (net and gross returns). Net returns are net of management and incentive fees. Individual investment returns may differ due to timing of investment and other factors. Past performance is not indicative of future results.*** | ![a1.jpg](a1.jpg)<br>|

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**Acquisitions**

Associated Capital Group's plan is to accelerate the use of its capital. We intend to leverage our research and investment capabilities by pursuing acquisitions and alliances that will broaden our product offerings and add new sources of distribution. In addition, we may make direct investments in operating businesses using a variety of techniques and structures to accomplish our objectives.

**Shareholder Dividends and Buybacks**

At its meeting on November 11, 2022, the Board of Directors declared a semi-annual dividend of $0.10 per share which was paid on December 15, 2022 to shareholders of record on December 1, 2022.

During the fourth quarter, AC repurchased 13,212 Class A shares, for $0.5 million, at an average investment of $39.66 per share.

Since our spin-off from GAMCO on November 30, 2015, AC has returned $156.3 million to shareholders through share repurchases and exchange offers, and paid dividends of $32.1 million.

At December 31, 2022, there were 3.027 million Class A shares and 18.963 million Class B shares outstanding.

**About Associated Capital Group, Inc.**

Associated Capital Group, Inc. (NYSE:AC), based in Greenwich, Connecticut, is a diversified global financial services company that provides alternative investment management through Gabelli & Company Investment Advisers, Inc. ("GCIA"). We have also earmarked proprietary capital for our direct investment business that invests in new and existing businesses. The direct investment business is developing along several core pillars including Gabelli Private Equity Partners, LLC ("GPEP"), formed in August 2017 with $150 million of authorized capital as a "fund-less" sponsor, and Gabelli Principal Strategies Group, LLC ("GPS"), created to pursue strategic operating initiatives.

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*Operating Loss Before Management Fee*

Operating loss before management fee expense represents a non-GAAP financial measure used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of the Company as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company's proprietary investment portfolio and interest expense.

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| | | |
|:---|:---|:---|
|  | **Year-to-date** | **Year-to-date** |
| **($ in 000's)** | **2022** | **2021** |
| Operating loss - GAAP | $(11262) | $(19076) |
| Add: management fee expense |  | 8426 |
| Operating loss before management fee - Non-GAAP | $(11262) | $(10650) |

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**Table I**

**ASSOCIATED CAPITAL GROUP, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION**

**(Amounts in thousands)**

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **ASSETS** | **2022** | **2021** |
| Cash, cash equivalents and US Treasury Bills (a)(c) | $404463 | $380044 |
| Investments in securities and partnerships (a)(c) | 435610 | 501706 |
| Investment in GAMCO stock (b) | 36683 | 60389 |
| Receivable from brokers (a) | 12072 | 42478 |
| Income taxes receivable, including deferred tax assets, net | 10320 |  |
| Other receivables (a) | 6324 | 18409 |
| Other assets (a)(c) | 22218 | 25201 |
| Investments in marketable securities held in trust (a)(c) |  | 175109 |
| Total assets | $927690 | $1203336 |
| **LIABILITIES AND EQUITY** |  |  |
| Payable to brokers (a) | $7784 | $9339 |
| Income taxes payable, including deferred tax liabilities, net |  | 8575 |
| Compensation payable | 13936 | 19730 |
| Securities sold short, not yet purchased (a) | 2874 | 12905 |
| Accrued expenses and other liabilities (a)(c) | 2707 | 3580 |
| Deferred underwriting fee payable (a)(c) |  | 6125 |
| PMV warrant liability (a)(c) |  | 5280 |
| Sub-total | $27301 | $65534 |
| Redeemable noncontrolling interests (a)(c) | 10193 | 202456 |
| Total Associated Capital Group, Inc. equity | 890196 | 937102 |
| Noncontrolling interests (a)(c) |  | (1756) |
| Total equity | 890196 | 935346 |
| Total liabilities and equity | $927690 | $1203336 |

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(a) Includes amounts related to consolidated variable interest entities ("VIEs") and voting interest entities ("VOEs"), refer to the Consolidated Financial Statements included in the 10-K report to be filed for the year ended December 31, 2022 for more details on the impact of consolidating these entities.

(b) 2,407,000, and 2,417,500 shares, respectively.

(c) Reflects the deconsolidation of PMV Sponsor and SPAC during 2022.

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**Table II**

**ASSOCIATED CAPITAL GROUP, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME**

**(Amounts in thousands, except per share data)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenues |  |  |  |  |
| Investment advisory and incentive fees | $7392 | $13903 | $14801 | $20530 |
| Other | 146 | 95 | 427 | 394 |
| Total revenues | 7538 | 13998 | 15228 | 20924 |
| Compensation costs | 8352 | 12747 | 18883 | 24457 |
| Other operating expenses | 1802 | 2165 | 7607 | 7117 |
| Total expenses | 10154 | 14912 | 26490 | 31574 |
| Operating income/(loss) before management fee | (2616) | (914) | (11262) | (10650) |
| Investment gain/(loss) | 16214 | 14102 | (56513) | 93405 |
| Interest and dividend income from GAMCO | 97 | 154 | 466 | 5442 |
| Interest and dividend income, net | 4952 | 2777 | 9971 | 6357 |
| Shareholder-designated contribution | (1713) | (2072) | (3127) | (4789) |
| Investment and other non-operating income/(expense), net | 19550 | 14961 | (49203) | 100415 |
| Income/(loss) before management fee and income taxes | 16934 | 14047 | (60465) | 89765 |
| Management fee |  | 1217 |  | 8426 |
| Income/(loss) before income taxes | 16934 | 12830 | (60465) | 81339 |
| Income tax expense/(benefit) | 2855 | 2611 | (14943) | 17705 |
| Income/(loss) before noncontrolling interests | 14079 | 10219 | (45522) | 63634 |
| Income/(loss) attributable to noncontrolling interests | 415 | 790 | 3385 | 4431 |
| Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $13664 | $9429 | $(48907) | $59203 |
| Net income/(loss) per share attributable to Associated Capital Group, Inc.'s shareholders: |  |  |  |  |
| Basic | $0.62 | $0.43 | $(2.22) | $2.68 |
| Diluted | $0.62 | $0.43 | $(2.22) | $2.68 |
| Weighted average shares outstanding: |  |  |  |  |
| Basic | 21998 | 22059 | 22024 | 22120 |
| Diluted | 21998 | 22059 | 22024 | 22120 |
| Actual shares outstanding - end of period | 21990 | 22058 | 21990 | 22058 |

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SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

The financial results set forth in this press release are preliminary. 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 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 could cause our actual results to differ from our expectations or beliefs include 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, and a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10 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.