U.s. Global Investors, Inc. · NASDAQ:GROW
U.s. Global Investors — FY2024 Earnings Presentation
75 slides from U.s. Global Investors's earnings presentation, Sep 11, 2024
Slide 1: Fiscal Year 2024 Results Webcast
June 30, 2023-June 30, 2024 Fiscal Year 2024 Results Webcast www.usfunds.com
Slide 2: Today's Presenters
Frank Holmes 4 Tod ay's . Presenters i Holly Schoenfeldt Director of Marketing Lisa Callicotte CEO ‘a US, Global Investors WWW.USFUNDS.COM
Slide 3: Forward-Looking Statements
Forward-Looking Statements During this webcast we may make forward- looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don’t pertain to historical facts are subject to risks and uncertainties that may material
Slide 4: een inborn
een inborn & SEAETF fi .,U.S. Global Investors NASDAQ: GROW WWW.USFUNDS.COM
Slide 5: Innovative Investment Manager
Innovative Investment Manager U.S. Global Investors, Inc. is an innovative investment manager with vast experience in global markets and specialized sectors. We use a quantamental strategy to create smart beta 2.0 products. About Us Registered Investment Advisor Founded as an investment club, the co
Slide 6: Who Are We?
Who Are We? 30+ 6 Years of Mutual Funds Experience @ +100k Award-Winning Global Readers Locatedin Financial Blog San Antonio, TX 7 Frank Holmes oe Inveetere WIN USEUNDS: COM CEO and ClO;U 5 Avestors
Slide 7: Top Institutional Shareholders
Top Institutional Shareholders GD 5.227% & THE VANGUARD GROUP, INC. @) 5.11%, FRANKLIN TEMPLETON INVESTMENTS €) 4.67% Perritt 6 _,U.S. Global Investors NASDAQ: GROW WWW.USFUNDS.COM
Slide 8: GROW Outperforms Russell Microcap Index Over Five Years
GROW Outperforms Russell Microcap Index Over 5 Years GROW vs. Russell Microcap Index Five Years Through June 30, 2024 (Our Fiscal Year End) 600% 4 500% 400% 4 300% +4 200% 4 100% 4 0% -100% 7 = U.S. Global Investors (GROW) —— Russell Microcap Index JETS ETF 61% GROW 41% Russell Microcap Index DEC-20
Slide 9: The DNA of Volatility
y wen \ The DNA of Volatility S&P 500 Gold Bullion Dow Jones U.S. Asset Managers Index f Oil GOAU NYSE Arca Airline Index Bitcoin HIVE Digital Technologies Ltd. WWW.USFUNDS.COM +1% +1% +1% +2% +2% +2% +3% +5% +2% +3% +4% +4% +6% +7% +9% +19%
Slide 10: Macro Headwind: Mutual Fund Outflows Have Gone to ETFs
Macro Headwind: Mutual Fund Outflows Have Gone to ETFs In Billions of Dollars, Monthly Actively managed domestic equity ETFs | $3,000 4 $2,000 5 Index domestic equity mutual funds $1,000 4 | Index domestic equity ETFs $0 4 Actively managed domestic equity mutual funds -$1,000 4 -$2,000 4 -$3,000 4 2
Slide 11: Warren Buffett on buying back stock
Warren Buffett highlights the value proposition of buying back one’s own stock at ‘value-accretive prices.’ Doing so, Buffett says... Benefits all shareholders, not just the bigges holders.” ~~ Warren Buffett 7, hiAs Warren Buffett celebrate 94'» birthday Au Photo bby: Stuart Isett/Fortune Most Powe
Slide 12: Why We Buy Back Our Stock
a Why We Buy Back S = Our Stock , 7 +55 at The Company believes’ its stock is undervalued and therefore buys back shares , HE of GROW when the price is flat or down from r “Tet: the previous trading day using an algorithm. - ; This is part of the Company's two-pillar strategy to enhance shareholder
Slide 13: GROW Stock Buyback
GROW Stock Buyback Fiscal Year End, Three-Year Period mNumber of Shares = In Dollar Amount $2,186,558 $1,195,395 767,651 $452,471 412,257 89,287 2022 2023 2024 ; U.S. Global Investors WWW.USFUNDS.COM Source: U.S. Global Investors
Slide 14: GROW Dividends
GROW Dividends The Company has paid a monthly dividend since June 2007 Current yield at a share price of $2.56 as of 08/21/2024. 3.50% Monthly dividend payment of $0.0075 Approved through September 2024 Reviewed by the Board quarterly (0d Gana a 1S. Globel Investors WWW.USFUNDS.COM
Slide 15: A Look At Fiscal Year 2024
A Look At Fiscal Year 2024 GROW Strengths The company has steady cashflow, despite challenging macro market environment. The company has a strong balance sheet which includes both cash and other investments. The company continues to buy back stock on flat or down days and pay a monthly dividend. 690
Slide 16: Frank Holmes CEO and CIO ownership
Frank Holmes CEO and CIO owns approximately 19% of the company and has approximately 99% of voting control. pe U.S. Global Investors NASDAQ: GROW
Slide 17: Xi and Putin: Negative Sentiment Drives Fund Flows
Xi @nd Putin: Negative Sentiment Drives Fund Flows | U.S. Global China Regin Fund (USCOX) ] [ U.S. Global Emerging Europe Fund (EUROX) my Nasdaq: GROW £4 U.S. Global Investors Photo By kremlin.ru, CC BY 4.0, htps://commons.wikimedia.org/w/index.php@curid=114966557
Slide 18: (= ,U.S. Global investors.
(= ,U.S. Global investors. ~ _NASDAQrGROW
Slide 19: Strategy and Tactics
Strategy and Tactics Create thematic products that are sustainable using a smart beta 2.0 strategy. This requires rigorous back testing for 10,000+ hours At U.S. Global Investors, our mission is to make people feel financially happy and secure that their wealth is consistently growing. Strategically
Slide 20: Shareholder Yield
SHAREHOLDER YIELD A Better Approach to Yield Investing {U.S. Global Investors MEBANE FABER NASDAQ: GROW
Slide 21: Dividends + Buybacks + Debt Reduction
; Dividends + Buybacks + Debt Reduction | Shareholder Yield =| nh seas Rat Market Capitalization crane — investors WWW.USFUNDS.COM
Slide 22: GROW's total shareholder yield is approximately 9.41%
Slide 23: Committed To Returning Value To Shareholders vs Treasury Yields
U.S. Global Investors ls Committed To Returning Value To Shareholders When compared To Treasury Yields Yields as of June 30, 2024 9.41% 4.33% 4.36% 5-Year Treasury Yield 10-Year Treasury Yield GROW Shareholder Yield /U.S. Global Investors Source: Bloomberg, U.S. Global investors WWW.USFUNDS.COM ad i
Slide 24: vs. Competition
U.S. Global Investors vs. Competition As of Quarter End June 30, 2024 Return on Assets ETF Business Price/Book Dividend | Price/Cash WISDOMTRE E 100% ETFs 3:32 8% ey 86% of 4.U.S. Global Investors Operating 0.76 2.5% Revenue rN Invesco 40% of Assets in QQQ ETF 0.71 -0.4% BS Sictel Investors WWW.USFU
Slide 25: Current Share Repurchase Program
Current Share Repurchase Program For the fiscal year ended June 30, 2024, the Company repurchased a total of 767,751 class A shares using cash of approximately $2, 186,557. May be suspended or discontinued as deemed necessary. U.S. Global Investors JNASDAQ: GROW WWW.USFUNDS.COM
Slide 26: Correlation Overview: GROW And JETS
Correlation Overview: GROW And JETS == U.S. Global Investors Inc. (Right Axis) == U.S. Global Jets ETF Shares Outstanding Index (Left Axis) r $12 0.15M 4 r $10 + $8 0.10M~ r $6 50,0004 r ¢ JETSETE L¢2 «us. ciobal investors : r : : ; ; ; : : : $0 SEP-2019 MAR-2020 SEP-2020 MAR-2021 SEP-2021 MAR-2022
Slide 27: JETS Post-Pandemic Assets Under Management
JETS Post-Pandemic Assets Under Management In Billions, Jan. 2020 - Aug. 2024 $4.50 5 $4.00 $3.50 $3.00 $2.50 $2.00 + $1.50 4 $1.00 4 $0.50 $0.00 + 2020 2021 2022 2023 2024 Past performance is no guarantee of future results. Distributed by Quasar Distributors, LLC. U.S. Global Investors is the inves
Slide 28: TSA Numbers Have Fully Recovered
TSA Numbers Have Fully Recovered Millions of Passengers Flown, Three-Year Period Through August 2024 3M people in one day 2.5M people June 2024 in one day — June 2019 —= TSA = 50 Day Moving Average 80K people in one day —December 2019 JUN DEC JUN DEC JUN DEC JUN DEC JUN DEC JUN 2019 2019 2020 2020 2
Slide 29: It's All About Sentiment: Airline Stocks
lts All About Sentiment: Airline Stocks 2020-2024 (4 years) 2022-2024 (2 years) Revenue EBITDA Revenue EBITDA Southwests 630% +154% 9% -27% UNITED 916% +209% 24% +68% A DELTA 1,035% +197% 21% +42% 784% +152% 7% +17% ‘ irdimoc Ss American Airlines @& Average: 841% 178% 15% 25% U.S. Global Investors S
Slide 30: Longest Yield Curve Inversion In History Has Ended
Driving Sentiment: The Longest Yield Curve Inversion In History Has Finally Ended After 783 Days 10-2 Year Treasury Yield Spread (I:102YTYS) 0.01% VAL US Yield Curve: 10-Year minus 2-Year po 1.77 Days (Jan "89 to Jun ‘89) 407 Days (Sep ‘80 to Oct ‘81) 623 Days (Aug ‘78 to May '80) 1980 1990 Deo Days
Slide 31: Sentiment Indicator: JETS Pressured by Inverted Yield Curve
Sentiment Indicator — Risk Off: JETS ETF Was Pressured by Inverted Yield Curve Four-Year Period Through September 2024 wo $5.0 4 JETS Market Cap, in Billions of USD (Right Axis) —10-Year Minus Two-Year Yield (Left Axis) r 2.0% i= 2 $45 4 o r 1.5% $4.0 4 APR-JUL 2022 $3.5 J Yield curve inverts r 1.0%
Slide 32: Oil Crosses Below 50-Day Moving Average
Oil Crosses Below 50-Day Moving Average Oil Price In USD Per Barrel JUN-2020 SEP-2020 DEC-2020 SEP-2021 DEC-2021 SEP-2022 DEC-2022 SEP-2023 DEC-2023 SEP-2024 Source: Bloomberg, U.S. Global Investors U.S. Global Investors WwWW.useUNDS.cOM NASDAQ: GROW
Slide 33: PMI Is A Leading Indicator
PMI Is A Leading Indicator GDP PMI ia’t Nasdaq: GROW M4 U.S. Global Investors
Slide 34: ISM Manufacturing PMI During Previous Election Cycles
ISM Manufacturing PMI During Previous Election Cycles Nov. 2, 2004 George Bush Nov. 5, 2024 22 fy Nov. 7, 2000 George Bush Nov. 4, 2008 Barack Obama Barack Obama Lehman Brothers collapse 30.0 25.0 Nov. 8, 2016 Donald Trump Nov. 3, 2020 Joe Biden 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 35: Headwind - Risk Off: Global Manufacturing PMI
Headwind - Risk Off: Global Manufacturing PMI Remains Below 50 In August 2024 PMI IS FORWARD. LOOKING, GDP IS BACKWARD LOOKING Pll is Forward Looking, GP is Backward: Looking SEP-2021 MAR-2022 SEP-2022 MAR-2023 SEP-2023 MAR-2024 SEP-2024 i ./U.S. Global Investors NASDAQ: GROW Source: Bloomberg, U.S.
Slide 36: Smart Beta 2.0 Investing
Smart Beta 2.0 Investing Our Quantamental Investment Strategy combines cutting edge technology with robust data analysis to help optimize returns and manage risk effectively for our shareholders. We believe the use of Smart Beta 2.0 factors in our thematic fund lineup sets us apart from the competit
Slide 37: JETS ETF vs. NYSE Global Airlines Index, Year-to-Date
JETS Smart Beta 2.0 ETF vs. NYSE Global Airlines Index Year-to-Date Performance, Through September 04, 2024 -1.73% U.S. Global Jets ETF -10.48% NYSE Global Airlines Index SEP APR MAY JUN JUL AUG JAN FEB MAR Past performance is no guarantee of future results. Distributed by Quasar Distributors, LLC.
Slide 38: JETS ETF vs. NYSE Global Airlines Index, Since Inception
JETS Smart Beta 2.0 ETF vs. NYSE Global Airlines Index Since Inception Performance, Through September 04, 2024 -18.87% U.S. Global Jets ETF -41.49% NYSE Global Airlines Index -60% 4 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Past performance is no guarantee of future results. Distributed by Q
Slide 39: The U.S. Global JETS ETF Latin American Journey
i. hes 2015 i. o> at ‘Cage yaar: 2 on The U.S. Global JETS ETF ie Latin American Journey oan JETS launched on the NYSE in 2015, % f followed by Peru and Mexico, and in Ri, r ie 2024 listed in Colombia. a am nce cuca _ 20208” (U.S. Global Investors NASDAQ: GROW viser to JETS.
Slide 40: JETS ETF Listed in Colombia
August 29, 2024 JETS ETF SNOW. LISTED IN COLOMBIA © * epet ma ctvoaes $e eostdBTSETI, ra eae NBienvenidos a MGC Global (J ETSE|,
Slide 41: Holdings in JETS ETF with International Flights to Colombia
HOLDINGS-IN JETS ETF WITH ifs INTERNATIONAL FLIGHTS 1 TO COLOMBIA Meboune UNITED UNITED S ADELTA American Airlines @& jetBlue spirit AIR CANADA @&) eet Airlines Z AIRFRANCE 47 SOUTH AFR Distributed by Quos@ y Bistributors, LLC. U.S. Global Investorsis.the, investment adviser to JETS.
Slide 42: Workers Globally
WORKERS GLOBALIY ™ CURRENTLY DESGRIBE THEMSELVES” AS aap, Nasdaq: GROW Source: The Gaurdian U.S. Global Investors
Slide 43: Airline Industry Forecast Contribution to U.S. Economy
THE AIRLINE INDUSTRY Is FORECAST. TO CONTRIBUTE $2 ON TO THE U.S. ECONOMY Nasdaq: GROW ma U.S. Global Investors
Slide 44: People Work To Fly Daily
PEOPLE WORK TO > AIRLINES FLY DAILY — CANE Glo palin
Slide 45: Go Gold Theme: Global Debt Climbs
Go Gold Theme That Makes Gold Attractive: Global Debt Climbs Global Debt In USD: 2016 - 2024 $320 4 | 370% Global Debt In USD $300 4 — Percent of GDP $280 4 $260 4 $240 4 $220 4 $200 4 2016 2017 2018 2019 2020 2021 2022 2023 2024 U.S. Global Investors 5 « i ome Source: IIF Global Debt Monitor, U.S.
Slide 46: Federal Government Interest Payments Above $1 Trillion
Go Gold Theme: Federal Government Interest Payments Have Crossed Above $1 Trillion 20-Year Period Through April 2024 $1.20 5 $1.00 $0.80 4 $0.60 4 $0.40 4 $0.20 4 $0.00 T T T T T T T T T T T T T T T T T T T T 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 47: Gold Equity ETF Fund Flows
Gold Equity ETF Fund Flows Despite Gold At All-Time High, Precious Metals Funds Struggle To Gain Assets = Gold Price In USD Per Ounce (Left Axis) _| —— GDX ETF - Current Shares Outstanding (Right Axis) All-Time High $2,532/oz r 500 SEP-2021 DEC-2021 MAR-2022 JUN-2022 —SEP-2022 i ./U.S. Global Invest
Slide 48: GOAU ETF Sees Positive Climb In 2024
GOAU ETF Sees Positive Climb In 2024 Price In USD, Year-to-Date Through June 30, 2024 $22.04 $20.04 +14% $18.04 $16.0 + $14.04 JAN FEB MAR APR MAY JUN JUL AUG Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to GOAU. Source: Bloomberg, U.S. Global Investors __
Slide 49: GOAU ETF Assets Under Management
GOAU ETF Assets Under Management Over Last 5 Years Total Fund Assets, In Million USD $1405 $120+ $100+ $80- $60- $40- SEP-2019 DEC-2019 =SEP-2020 DEC-2020 SEP-2021 DEC-2021 SEP-2022 DEC-2022 SEP-2023 DEC-2023 SEP-2024 Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment a
Slide 50: GROW's Investment in HIVE Digital Technologies
GROW’s Investment in HIVE Digital Technologies 8% Convertible Debenture $4,414,000 (includes debenture and conversion feature) 2 _/U.S. Global Investors NASDAQ: GROW WWW.USFUNDS.COM
Slide 51: Key figures: share price, average AUM, operating revenues
$2.56 Nasdaq: GROW *close on 08/21/2024 $1.9 Billion Fiscal Year Average AUM 06/30/2024 $11 Million Fiscal Year Operating Revenues PiJvs. Global Investors NASDAQ: GROW WWW.USFUNDS.COM
Slide 52: Earnings Per Share
Earnings Per Share 0.10 $ $0.09 $0.08 $0.06 $0.04 0.02 $ $0.01 $0.00 a $0.00 -$0.01 -$0.02 $ Sep-2023 Dec-2023 Mar-2024 Jun-2024 {U.S. Global Investors Source: U.S. Global investors Z| NASDAQ: GROW WWW.USFUNDS.COM
Slide 53: Annual Operating Income
Annual Operating Income Dollars In Thousands Financing for future growth $11,113 Operating costs for 2024 * Proxy Costs * Acquiring TRIP ETF Costs *Assets peak -$480 2021 2022 2023 2024 {U.S. Global Investors Z-|NASDAQ: GROW WWW.USFUNDS.COM Source: Bloomberg, U.S. Global Investors
Slide 54: Income Statement - Financial Analysis
Income Statement - Financial Analysis Lisa Callicotte CFO 2 _/U.S. Global Investors NASDAQ: GROW WWW.USFUNDS.COM
Slide 55: Compensation Structure
U.S. Global Investor’s Compensation Structure Employee base salaries historically have been modest Employee bonuses tied directly to individual and team results CEO received bonuses based on operational earnings, net realized gains on corporate investments and fund performance bonuses given to inves
Slide 56: Fiscal Year 2024 Financial Highlights
Fiscal Year 2024 Financial Highlights 4a [4 » FY 2024 average assets under / management of $1.9 billion x ad /U.S. Global Investors Z| NASDAQ: GROW WWW.USFUNDS.COM
Slide 57: Operational Earnings and Investment Earnings
Operational Earnings (Cash Flow) Investment Earnings Realized (Cash Flow) Unrealized PiJvs. Global Investors NASDAQ: GROW Earnings WWW.USFUNDS.COM
Slide 58: Consolidated Statements of Operations
Consolidated Statements of Operations (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Year Ended June 30, 2024 2023 Operating Revenues Advisory fees $ 10,869 $ 14,940 Administrative service fees 5 134 Total Operating Revenues 10,984 15,074 Operating Expenses Employee compensation and benefits 4,802 4,
Slide 59: Consolidated Statements of Operations
Consolidated Statements of Operations (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Year Ended June 30, 2024 2023 Operating Income (Loss) $ (480) $ 3,525 Other Income (Loss) Net investment income (loss) 2,144 316 Other Income (loss) 251 242 Total Other Income (Loss) 2,395 558 Income (Loss) Before In
Slide 60: Consolidated Balance Sheets
Consolidated Balance Sheets (DOLLARS IN THOUSANDS) Current Assets Cash and cash equivalents Restricted cash Investments in trading securities at fair value, current Accounts and other receivables (net of allowance for credit losses of $0, and $0, respectively) Tax receivable Prepaid expenses Total C
Slide 61: Consolidated Balance Sheets
Consolidated Balance Sheets (DOLLARS IN THOUSANDS) Other Assets Deferred tax asset Investments in trading securities at fair value, non-current Investments in available-for-sale debt securities at fair value (amortized cost: $6,204, and $7,729, respectively) (net of allowance for credit losses of $0
Slide 62: Consolidated Balance Sheets
Consolidated Balance Sheets (DOLLARS IN THOUSANDS) Current Liabilities Accounts payable Accrued compensation and related costs Dividends payable Financing lease liability, short-term Other accrued expenses Total Current Liabilities Long-Term Liabilities Deferred taxliability Reserve for uncertain ta
Slide 63: Consolidated Balance Sheets
Consolidated Balance Sheets (DOLLARS IN THOUSANDS) Shareholders’ Equity Common stock (class A) - $0.025 par value; nonvoting; 28,000,000 shares authorized; 13,866,999 shares issued at June 30, 2024, and June 30, 2023; 11,753,483 and 12,496,674 shares outstanding at June 30, 2024, and June 30, 2023,
Slide 64: Marketing Highlights
Marketing Highlights Holly Schoenfeldt Director Of Marketing 6 _,U.S. Global Investors NASDAQ: GROW WWW.USFUNDS.COM
Slide 65: Global Visitors to Website
GLOBAL VISITORS TO katherine COM = 15k 3 a 12) 6k = me es ¢ ——- = = = os : EE a En 261k @S ee . See At at 2k Sm Nasda q: GROW a q (84 U.S. Global Investors - ; — = —_
Slide 66: YouTube Subscribers
ae TE ‘ve Hit .40,000 ™ Subscribers On YouTube LA U.S. Global Investors
Slide 67: Explore Our Educational Videos
Explore Our Educational Videos sal {U.S. Global Investors NASDAQ: GROW DECODING THE BITCOIN ee NCE UNDERSTANDING GOLD'S: , FEAR TRADE 2 THE INCREASING APPEAL OF GOLD & BITCOIN // ff WWW.USFUNDS.COM
Slide 68: Top Content From Our Award-Winning Financial Blog
TOP CONTENT FROM OUR AWARD-WINNING FINANCIAL CEO BLOG i \ — a a April 26, 2024 dune 7, 2024 July 26, 2024 August 9, 2024 July 5, 2024 The Unintended Airlines to See $30 Billion How 2024’s Election Understandingthe Yen CommoditiesHalftime Consequences of Taxing _ Profit on Record Could Reshape Your C
Slide 69: Fiscal Year 2024 Subscriber Growth
Fiscal Year 2024 Subscriber Growth 18,218 | 1,095 Total Subscriber Growth Over 12 Months Twitter Followers Twitter Posts 111,444 112,000 5 110,000 + 11,860 30 108,000 { YouTube Viewers New Videos 106,000 + 104,000 | 2,592 LinkedIn Readers 102,000 + 100,000 { 98,000 69,606 286 Jun-2023 Sep-2023 Dec-2
Slide 70: Feeling Left Out?
Feeling Left Out? onsy i PiJvs. Global Investors N. |ASDAQ: GROW WWW.USFUNDS.COM
Slide 71: Thank You
Thank You {U.S. Global Investors Z|NASDAQ: GROW WWW.USFUNDS.COM
Slide 72: Disclosures
Disclosures All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks} Index (HUI) is a modified equal dollar weighted index of companies involved in gold min
Slide 73: Disclosures
Disclosures Please consider carefully a fund's investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory and summary prospectus for JETS, GOAU and SEA by visiting www.usglobaletfs.com. Read it carefully before investing. Distributed by Quasar Di
Slide 74: Disclosures
Disclosures Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance
Slide 75: Disclosures
Disclosures Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance