Teton Advisors, Inc. Reports Preliminary Third Quarter Financial Information, Results of Rights Offering, and Upgrade to OTCQX

GREENWICH, Conn.--(BUSINESS WIRE)--

Teton Advisors, Inc. (“Teton”) (OTCQX: TETAA) announced today its preliminary third quarter 2022 results:

• Revenues of $3.3 million compared to $3.5 million for the second quarter 2022 and $4.2 million for the third quarter 2021.
  

• Net income range of $0.3 million to $0.4 million compared to $0.3 million for the second quarter 2022 and $0.5 million for the third quarter 2021.
  

• Earnings per share range of $0.26 to $0.29 as compared to $0.20 for the second quarter 2022 and $0.42 for the third quarter 2021.
  

• Earnings before interest expense, tax expense, depreciation expense, and amortization expense (“EBITDA”)¹ of $0.6 million as compared to $0.4 million for the second quarter 2022 and $0.9 million for the third quarter 2021.
  

• End-of-quarter AUM of $1.4 billion compared to $1.6 billion at June 30, 2022 and $2.0 billion at December 31, 2021.

Third quarter net income was in a range of $0.3 million to $0.4 million on estimated revenues of $3.3 million. This compares to $0.3 million for second quarter 2022 on revenues of $3.5 million and $0.5 million for third quarter 2021 on revenues of $4.2 million. The estimated range of Teton’s earnings per share for third quarter 2022 was $0.26 to $0.29 as compared to $0.20 for the second quarter 2022 and $0.42 for the third quarter 2021.

Teton also announced its third quarter preliminary earnings before interest expense, tax expense, depreciation expense, and amortization expense (“EBITDA”)¹ of $0.6 million as compared to $0.4 million for the second quarter 2022 and $0.9 million for the third quarter 2021.

Assets under management (AUM), which directly influences revenue, were $1.4 billion at September 30, 2022 as compared to $1.6 billion at June 30, 2022 and $2.0 billion at December 31, 2021. The decrease for the quarter was equally caused by market declines and net outflows while the decrease for the year-to-date period was primarily driven by market declines.

Rights Offering Summary and Company Stock Qualification to Trade on OTCQX

Teton also announced the results of its recent rights offering which expired on September 21, 2022. Total gross cash proceeds were over $5 million and shares outstanding increased from 1,320,486 to 1,645,835. As of September 30, 2022, Teton’s cash, cash equivalents, and investments totaled $20.5 million.

“With its continued focus on exploiting structural inefficiencies in smaller capitalization stocks, we believe the Company to be well positioned for future growth,” said Kevin Keeley, President of Teton’s wholly-owned subsidiary, Keeley-Teton Advisors, LLC.

On October 12, 2022, OTC Markets Group Inc. announced that Teton was upgraded to OTCQX from the Pink OTC market with the same ticker symbol, “TETAA”, being used.

“We are excited to begin trading on the OTCQX Market which we expect will provide greater visibility for the Company as part of our ongoing efforts to provide value for our shareholders,” said Patrick Huvane, Chief Financial Officer of Teton Advisors, Inc.

The OTCQX Market provides investors with a premium U.S. public market to research and trade the shares of investor-focused companies. Graduating to the OTCQX Market marks an important milestone for companies, enabling them to demonstrate their qualifications and build visibility among U.S. investors. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance, and demonstrate compliance with applicable securities laws. U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for Teton on www.otcmarkets.com.

¹ As supplemental information, we provide a non-U.S. generally accepted accounting principles (“non-GAAP”) performance measure that we refer to as EBITDA. We provide this measure in addition to, but not as a substitute for, net income reported on a U.S. generally accepted accounting principles (“GAAP”) basis. Our management and the Board of Directors review EBITDA to evaluate our ongoing performance, allocate resources and review our dividend policy. We believe that this non-GAAP performance measure, while not a substitute for GAAP net income, is useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider this non-GAAP measure without considering financial information prepared in accordance with GAAP.

In calculating quarterly EBITDA, we add back to net income (loss) interest expense, if any, tax expense, depreciation expense, and amortization expense.

189 Mason Street ∙ Greenwich, CT 06830 Tel. (914) 457-1070 ∙ Fax (914) 921-5091 ∙

www.tetonadv.com

ABOUT TETON

Teton Advisors, Inc. (OTCQX: TETAA) is a specialist in smaller company investing, serving a diverse client base of institutional, high net worth and mutual fund investors under brands including Teton Westwood, Gabelli and Keeley. The company was founded on a commitment to uncover value by focusing on companies that are misunderstood or ignored by the market utilizing methodologies developed by investment pioneers Mario Gabelli and John L. Keeley, Jr. As active, fundamental investors, the Teton portfolio teams think independently and focus on identifying short-term market inefficiencies to generate long-term alpha. Teton’s investment professionals share in the belief that being different is the cornerstone to discovering hidden value in equities. The Teton time tested investment approaches can help set apart your client portfolios, delivering differentiated attributes to round out a broader portfolio. From modest beginnings over 40 years ago, to today, The Disciplined Discovery of Value™ shapes the cornerstone for our clients' long-term success.

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

Our disclosure and analysis in this press release contain “forward-looking statements”. 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.

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Patrick Huvane, CPA, CFA

Chief Financial Officer

(914) 457-1074

For further information, please visit: www.tetonadv.com

Source: Teton Advisors, Inc.