Business
U.S. Global Investors Announces Results for Fiscal Year 2022, with Operating Income Up 36% Year-over-Year and Operating Margin of 45%
SAN ANTONIO, Sept. 01, 2022 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with
About this update from U.s. Global Investors, Inc.
[{"type":"text","content":"SAN ANTONIO, Sept. 01, 2022 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors from gold to airlines, is pleased to report financial results for the fiscal year ended June 30, 2022. For the 12-month period, total operating revenues were $24.7 million, a 14% increase year-over-year (YOY). Operating income was $11.1 million, a 36% increase YOY. Operating margin was 45%, up from 38% in fiscal 2021. As of June 30, 2022, the Company had net working capital of approximately $33.9 million, a 57% increase from June 30, 2021. With approximately $22.3 million in cash and cash equivalents and $13.8 million in securities recorded at fair value, excluding convertible securities, the Company has adequate liquidity to meet its current obligations. “This year, we have been building up our cash position, which we believe is wise and prudent to weather a potential economic recession and be opportunistic in looking for attractive acquisitions,” CEO and Chief Investment Officer Frank Holmes says. Net income was $5.5 million, or $0.37 per share, down from $32.0 million a year earlier, or $2.12 per share. A significant contributor to the decrease in annual net income was mark-to-market volatility. The Company had lower realized gains and unrealized losses on investments in the current year compared to higher realized and unrealized gains on investments in fiscal 2021. Mark-to-market is an accounting practice that involves adjusting the value of an asset to reflect its value as determined by current market conditions. The market value is determined based on what a company would get for the asset if it was sold at that point in time. Therefore, mark-to-market losses are paper losses generated through an accounting entry rather than the actual sale of a security. During fiscal 2022, average assets under management (AUM) were $3.9 billion, an 18% increase from $3.4 billion during the 12-month period ended June 30, 2021. However, total AUM as of June 30, 2022, was $2.9 billion, down from $4.2 billion as of June 30, 2021, due to a global stock market decline and higher interest rates. Retail Trading Has Contracted from Pandemic Highs At the beginning of the pandemic in the spring of 2020, retail trading activity surged a...