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U.S. Global Investors Reports Financial Results for the Third Quarter of 2022 Fiscal Year
San Antonio, TX, May 09, 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, TX, May 09, 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 cryptocurrencies, today reported operating income of $2.5 million, or $0.17 per share, for the quarter ended March 31, 2022, a 14% decrease from the previous quarter; however, the operating margin for the quarter was a healthy 41% on total revenues of $6.2 million. Revenue was $6.2 million, a slight decrease of 2.8% from the same quarter in 2021, due to a swing in performance fees. The Company recorded a net loss of $846,000, or $0.06 per share loss, for the quarter. The loss was primarily due to mark-to-market unrealized losses on investments of $4.5 million, compared to unrealized gains on investments of $7.1 million in the same quarter a year earlier. According to generally accepted accounting principles (GAAP), U.S. companies must record changes in unrealized gains and losses of equity investments in investment income, known as mark-to-market accounting in capital markets. Therefore, changes in these investments, whether short-term or long-term in nature, are recorded through earnings, resulting in investment income being more volatile quarter-over-quarter and year-over-year. Average assets under management (AUM) for the three-month period ended March 31, 2022, were $4.1 billion, in line with the previous quarter and up slightly from the same period one year ago. Total AUM increased during the quarter, from $3.8 billion as of December 31, 2021, to $4.1 billion as of March 31, 2022. “This past quarter we successfully launched our new smart-beta 2.0 ETF, the New York-listed U.S. Global Sea to Sky Cargo ETF (SEA),” says Frank Holmes, Company CEO and Chief Investment Officer. “As the name implies, SEA focuses on the global cargo industry and, since inception, it has outperformed the market, which has experienced multiple headwinds, including rising interest rates and Russia’s invasion of Ukraine. The global ocean-freight carrier industry recorded its first $150 billion in profits in a single year in 2021, and with supply chain imbalances ongoing, we believe 2022 could be another record-setting year for the group.” In the first quarter of 2022, GROW stock performed well, rising more than 18% as ...