Business
U.S. Global Investors Announces Increase in Dividend and Reports Strong Acceleration of Growth in Assets, with Total Operating Revenues Increasing 60% QoQ, 480% YoY
San Antonio, TX, Feb. 04, 2021 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm
About this update from U.s. Global Investors, Inc.
[{"type":"text","content":"San Antonio, TX, Feb. 04, 2021 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm with longstanding experience in global markets and specialized sectors, today is pleased to report financial results for the quarter ended December 31, 2020. During the second fiscal quarter of 2021, the Company saw a second straight period of strong revenue growth due mainly to increased inflows into the U.S. Global Jets ETF (JETS). The Company also realized gains on the sale of its 10 million common shares of HIVE Blockchain Technologies (“HIVE”). A majority of the proceeds were redeployed back into HIVE in the form of convertible securities. Please see the section on HIVE below for further details. Other top-line highlights from the quarter: Total operating revenues increased approximately 60% quarter-over-quarter (QoQ) and 480% year-over-year (YoY). Net income of $16.7 million, or $1.10 per share, an increase of $14.7 million QoQ and $17.7 million YoY. Investment income of $20.7 million, compared to investment loss of $451,000 for the three months ended December 31, 2019, a positive change of approximately $21.2 million. Net cash increase of $19.0 million, compared to a net increase of $662,000 during the previous quarter and a net increase of $376,000 during the quarter ended December 31, 2019. A surge in assets under management (AUM) QoQ and YoY. Average AUM was $2.9 billion, up 45% QoQ and 450% YoY. Total AUM, including mutual funds and ETFs, was $3.5 billion, compared to $560.5 million as of December 31, 2019, an increase of about $3.0 billion, or 530%. Total JETS AUM ended the quarter at $2.9 billion, up 77% QoQ and more than 5,500% YoY. U.S. Global Investors Buys HIVE Convertible Securities In January 2021, the Company purchased HIVE convertible securities for $15.0 million. The convertible securities are composed of 8.0% interest-bearing unsecured convertible debentures with a principal amount of $15.0 million, maturing in five years, and 5 million common share purchase warrants in the capital of HIVE. The principal amount of each debenture is convertible into common shares in the capital of HIVE at a conversion rate of $2.34. Each whole warrant, expiring in 36 months, entitles the Company to acquire one common share at a price of C$3.00. HIVE is a company that i...