Business
U.S. Global Investors Reports Financial Results for the First Quarter of 2023 Fiscal Year
SAN ANTONIO, Texas, Nov. 10, 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, Texas, Nov. 10, 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 mining to emerging markets, today reported operating income of $1.6 million for the quarter ended September 30, 2022. The operating margin was a healthy 36% on total revenues of $4.4 million. The Company recorded net income of $118,000, or $0.01 per share. Average assets under management (AUM) for the three-month period ended September 30, 2022, were $2.9 billion, down approximately $1 billion from the same quarter last year. As of September 30, 2022, AUM was $2.3 billion, a decrease of approximately 46% from September 30, 2021. “U.S. investors continued to withdraw assets from long-term funds in September, marking the fifth month out of the past six to record negative fund flows, according to Morningstar data,”1 says Frank Holmes, the Company’s CEO and Chief Investment Officer. “Like the rest of the investment advisory business, U.S. Global Investors has seen withdrawals and redemptions. We believe a majority of these outflows can be attributed to interest rates, which are being hiked at an historically fast pace in an effort to bring down inflation.” “Despite these tremendous headwinds, I’m happy to report that the Company remained profitable in the first fiscal quarter. At this time, we believe maintaining or increasing our cash position is prudent. We believe the Federal Reserve will need to reverse course eventually, and when that happens, we hope to be in a good position to deploy capital,” Mr. Holmes says. Healthy Liquidity and Capital Resources As of September 30, 2022, the Company had net working capital of approximately $34.6 million, an increase of $737,000, or 2.2%, from June 30, 2022. Total assets, including various corporate investments, stood at $59.3 million. With approximately $23.3 million in cash and cash equivalents, the Company has adequate liquidity to meet its current obligations, in addition to investments in our funds and convertible notes. Enhanced Share Repurchase Program The Company announced on February 25, 2022, that the Board of Directors of the Company (the “Board”) approved an increase to the limit of its annual share buyback program from $2.75 million to $5.0 million...