U.s. Global Investors, Inc. · NASDAQ:GROW
U.s. Global Investors — Q1 2025 Earnings Presentation
59 slides from U.s. Global Investors's earnings presentation, Nov 8, 2024
Slide 1: First Quarter 2025 Results Webcast
GROW July 1, 2024 – September 30, 2024 First Quarter 2025 Results Webcast www.usfunds.com
Slide 2: Today's Presenters
Frank Holmes Today's Presenters CEO and CIO Holly Schoenfeldt Director of Marketing Lisa Callicotte CFO 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: The DNA of Volatility
The DNA of Volatility Standard Deviation For One Year, as of September 30, 2024 One-Day Ten-Day S&P 500 ±1% ±3% Gold Bullion ±1% ±3% Dow Jones U.S. Asset Managers Index ±1% ±4% GROW ±2% ±4% Oil ±2% ±4% GOAU ±2% ±6% NYSE Arca Airline Index ±2% ±6% Bitcoin ±3% ±9% HIVE Digital Technologies Ltd. ±6% ±1
Slide 5: Request your own GOAU, JETS or SEA hat
Please email us at info@usfunds.com to request your own GOAU, JETS or SEA hat. WWW.USFUNDS.COM
Slide 6: About Us: Smart Beta 2.0
Smart Beta 2.0 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 U.S. Global Investors
Slide 7: Who Are We?
Who Are We? 30+ 3 6 Years of U.S. Based Exchange- Mutual Funds Experience Traded Funds (ETFs) +100k Award-Winning Global Readers Located in Financial Blog San Antonio, TX Frank Holmes WWW.USFUNDS.COM CEO and CIO, U.S. Global Investors
Slide 8: Top Institutional Shareholders
Top Institutional Shareholders Percentage of Shares Outstanding, as of 09/30/2024 1 5.32% THE VANGUARD GROUP, INC. 2 5.21% 3 4.76% WWW.USFUNDS.COM
Slide 9: Micro Caps Struggle To Keep Pace With Large Caps
Micro Caps Struggle To Keep Pace With Large Caps October 2019 – October 2024 +103% S&P 500 Index +45% iShares Micro-Cap ETF Past performance does not guarantee future results. It is not possible to invest in an index. Source: Bloomberg, U.S. Global Investors | 9 WWW.USFUNDS.COM
Slide 10: High-Flying Magnificent 7 Stocks Have Skewed the S&P 500
High-Flying Magnificent 7 Stocks Have Skewed the S&P 500 Percent Change | Three-Year Period Through November 04, 2024 +28.17% S&P 500 +16.49% S&P 500 Equal-Weighted Past performance does not guarantee future results. It is not possible to invest in an index. WWW.USFUNDS.COM 10
Slide 11: GROW Outperforms Micro-Cap Index Over 5 Years
GROW Outperforms Micro-Cap Index Over 5 Years 5 Year Performance Through November 04, 2024 +69.5% U.S Global Investors (GROW) +44.7% Russell Microcap Index Past performance does not guarantee future results. It is not possible to invest in an index. Source: Bloomberg, U.S. Global Investors | 11 WWW.
Slide 12: Succession Planning – Buffett as a Case Study
Succession Planning – Buffett as a Case Study 94-year-old Warren Buffett is now sitting on more than $325 billion in cash. November 2024 – Yahoo Finance WWW.USFUNDS.COM Photo by: Fortune Most Powerful Women Summit in Laguna Niguel, CA. | https://creativecommons.org/licenses/by-nc-nd/2.0/
Slide 13: Stock Buyback
Stock Buyback Benefits all shareholders, not just the biggest holders.” Warren Buffett WWW.USFUNDS.COM Photo by: Stuart Isett/Fortune Most Powerful Women | Deed - Attribution-NoDerivatives 4.0 International
Slide 14: Why We Buy Back Our Stock
Why We Buy Back Our Stock • We believe the stock is undervalued • Enhance shareholder value • Strong shareholder yield of 9.34% WWW.USFUNDS.COM
Slide 15: Number of GROW Shares Repurchased Over Three-Year Period
Number of GROW Shares Repurchased Over Three-Year Period Four-Quarter Period Through September 30 of Each Year 767,325 570,505 115,605 2022 2023 2024 WWW.USFUNDS.COM Source: U.S. Global Investors 15
Slide 16: GROW Dividends
GROW Dividends The Company has paid a monthly dividend since June 2007 Current yield at a share price of $2.42 as of 10/25/2024. 3.72% Monthly dividend payment of $0.0075 Approved through December 2024 Reviewed by the Board quarterly 5-year Treasury yield 3.58% WWW.USFUNDS.COM 16
Slide 17: A Look At First Quarter 2025
A Look At First Quarter 2025 GROW Strengths 1 Financial Resilience: Strong balance sheet including both cash and other investments. 2 Shareholder Value: The company continues to buyback stock and pays a monthly dividend. 3 Gold’s Record Performance: Gold reaches an all-time high. The company’s gold-
Slide 18: GoGold Theme: 25% AUM Growth In Gold Funds Over One Year
GoGold Theme: 25% AUM Growth In Gold Funds Over One Year Total AUM, In Millions, November 4, 2023 vs. November 4, 2024 TOTAL = $274 Million TOTAL = $220 Million 2023 2024 AUM of USERX, GOAU & UNWPX Source: Bloomberg, U.S. Global Investors 18 WWW.USFUNDS.COM
Slide 19: Rule of Three: Strategy and Tactics
Rule of Three: Strategy and Tactics Create sustainable, thematic products using a 1 smart beta 2.0 strategy backed by 10,000+ hours of rigorous back testing. 2 Manage and preserve cash for future growth opportunities and market corrections. 3 M&A activity to acquire fund assets. WWW.USFUNDS.COM
Slide 20: Shareholder Yield = Market Capitalization
Dividends + Buybacks + Debt Reduction Shareholder Yield = Market Capitalization WWW.USFUNDS.COM
Slide 21: GROW's total shareholder yield is approximately 9.34%
GROW’s total shareholder yield is approximately 9.34%. WWW.USFUNDS.COM 21
Slide 22: Returning Value To Shareholders Compared To Treasury Yields
U.S. Global Investors Is Committed To Returning Value To Shareholders When Compared To Treasury Yields Yields as of September 30, 2024 9.34% 3.58% 3.81% 5-Year Treasury Yield 10-Year Treasury Yield GROW Shareholder Yield Source: Bloomberg, U.S. Global Investors WWW.USFUNDS.COM
Slide 23: U.S. Global Investors vs. Competition
U.S. Global Investors vs. Competition As of Quarter End September 30, 2024 Pre-Tax Price/Cash ETF Business Price/Book Return on Margin Pre-Tax Flow Dividend ETF Business Price/Book Assets Margin Yield 100% ETFs 4.08 5.90% 33.70% 1.14% 85% of Operating 0.73 3.47% 25.90% 3.72% Revenue 40% of Assets in
Slide 24: Current Share Repurchase Program
Current Share Repurchase Program For the quarter ended September 30, 2024, the Company repurchased a total of 197,887 class A shares using cash of approximately $520,000. May be suspended or discontinued as deemed necessary. Represents 14% WWW.USFUNDS.COM of Market Cap
Slide 25: Quarterly Webcasts On Our Thematic Products
Quarterly Webcasts On Our Thematic Products 25 WWW.USFUNDS.COM
Slide 26: TSA Numbers Hit ATH – All-Time High
TSA Numbers Hit “ATH” – All-Time High Millions of Passengers Flown, Three-Year Period Through November 2024 3M people in one day – June 2024 80K people in one day – December 2019 WWW.USFUNDS.COM Source: TSA, Bloomberg, U.S. Global Investors
Slide 27: Airline Stocks Beat the Market Heading Into Final Quarter of 2024
Airline Stocks Beat the Market Heading Into Final Quarter of 2024 NAV Percent Change | One-Month Period Through October 17 +36.81% United Announces $1.5B Buyback +12.92% +3.77% S&P 500 Past performance does not guarantee future results. It is not possible to invest in an index. Source: Bloomberg, U.
Slide 28: Airline Stocks This Century Have Outperformed The S&P 500
Airline Stocks This Century Have Outperformed The S&P 500 From September To November Percent of Months When the Dow Jones US Airlines Index Beat the Market, 2000 – 2024 *Quarterly Average Source: Bloomberg, BofA, U.S. Global Investors 28 WWW.USFUNDS.COM
Slide 29: JETS ETF vs. NYSE Arca Global Airlines Index Since Inception
JETS Smart Beta 2.0 ETF vs. NYSE Arca Global Airlines Index Since Inception Performance Through November 04, 2024 Outperformed by 26% AFTER fees -1.34% U.S. Global Jets ETF -28.0% NYSE Arca Global Airlines Index Past performance is no guarantee of future results. Distributed by Quasar Distributors,
Slide 30: JETS ETF vs. NYSE Arca Global Airlines Index Year-to-Date
JETS Smart Beta 2.0 ETF vs. NYSE Arca Global Airlines Index Year-to-Date Performance Through October 25, 2024 Outperformed by 13% AFTER fees 18.44% U.S. Global Jets ETF 5.38% NYSE Arca Global Airlines Index Past performance is no guarantee of future results. Distributed by Quasar Distributors, LLC.
Slide 31: GoGold Theme: Gold Soars To All-Time-High!
GoGold Theme: Gold Soars To All-Time-High! Gold Price Per Ounce In USD All-Time High! WWW.USFUNDS.COM Source: Bloomberg, Federal Reserve, World Gold Council, U.S. Global Investors
Slide 32: GoGold Theme: Global Debt Climbs
GoGold Theme: Global Debt Climbs Global Debt in Trillions of USD: 2016 – 2024 All-Time High! WWW.USFUNDS.COM Source: IIF Global Debt Monitor, U.S. Global Investors
Slide 33: GoGold Theme: Gold Has Kept Pace With Global GDP and Exceeded Inflation
GoGold Theme: The Yellow Metal Has Kept Pace With Global GDP and Exceeded Inflation Annual Growth in U.S. CPI, Global Nominal GDP and Gold Price (1971 - 2023) WWW.USFUNDS.COM Source: Bloomberg, Federal Reserve, World Gold Council, U.S. Global Investors
Slide 34: GoGold Theme: U.S. Deficit Spending Makes Gold Attractive
GoGold Theme: U.S. Deficit Spending Continues to Make Alternative Assets Like Gold Attractive – Fear Trade! Trillions of USD | June 1970 - Sept. 2024 WWW.USFUNDS.COM Source: Bloomberg, Federal Reserve, World Gold Council, U.S. Global Investors
Slide 35: GoGold Theme: Gold's Historic Rise Is a Global Phenomenon
GoGold Theme: Gold’s Historic Rise Is a Global Phenomenon Gold Price Performance In Various Currencies | Year-to-Date 50.00% 45.00% 40.00% 43.4% 35.00% 30.00% 32.7% 32.7% 34.1% 34.6% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Chinese Yuan U.S. Dollar Indian Rupees Euros Japanese Yen Source: Bloomberg,
Slide 36: Share Price, Quarterly Average AUM and Operating Revenues
$2.42 Nasdaq: GROW *close on 10/25/2024 $1.5 Billion Quarterly Average AUM 09/30/2024 $2.16 Million Quarterly Operating Revenues 09/30/2024 WWW.USFUNDS.COM
Slide 37: Income Statement - Financial Analysis
Income Statement - Financial Analysis Lisa Callicotte CFO WWW.USFUNDS.COM
Slide 38: First Quarter 2025 Financial Highlights
First Quarter 2025 Financial Highlights Q1 2025 average assets under 1 management of $1.5 billion 2 Q1 2025 operating revenues of $2.16 million 3 Net income of $315,000 WWW.USFUNDS.COM
Slide 39: Earnings
Operational Earnings (Cash Flow) Investment Earnings + Realized (Cash Flow) Unrealized Earnings WWW.USFUNDS.COM
Slide 40: Earnings Per Share
Earnings Per Share As of September 30, 2024 $0.10 $0.09 $0.08 $0.06 $0.04 $0.02 $0.02 $0.02 $0.00 $0.00 Dec-2023 Mar-2024 Jun-2024 Sep-2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 WWW.USFUNDS.COM Source: U.S. Global Investors
Slide 41: Quarterly Operating Income
Quarterly Operating Income As of September 30, 2024 $192,000 -$398,000 -$488,000 -$559,000 Dec-2023 Mar-2024 Jun-2024 Sep-2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 WWW.USFUNDS.COM Source: Bloomberg, U.S. Global Investors
Slide 42: Consolidated Statement of Operations (Unaudited)
Consolidated Statement of Operations (Unaudited) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended September 30, 2024 September 30, 2023 Operating Revenues Advisory fees $ 2,127 $ 3,103 Administrative service fees 30 30 Total Operating Revenues 2,157 3,133 Operating Expenses Employee
Slide 43: Consolidated Statement of Operations (Unaudited)
Consolidated Statement of Operations (Unaudited) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended September 30, 2024 September 30, 2023 Operating Income (Loss) $ (559) $ 215 Other Income (Loss) Net investment income (loss) 917 (513) Other Income (loss) 78 57 Total Other Income (Loss)
Slide 44: Consolidated Balance Sheets
Consolidated Balance Sheets (DOLLARS IN THOUSANDS) September 30, 2024 June 30, 2024 (unaudited) Current Assets Cash and cash equivalents $ 27,336 $ 27,399 Restricted cash 1,000 1,000 Investments in trading securities at fair value, current 9,713 9,644 Accounts and other receivables (net of allowance
Slide 45: Consolidated Balance Sheets
Consolidated Balance Sheets (DOLLARS IN THOUSANDS) September 30, 2024 June 30, 2024 (unaudited) Other Assets Deferred tax asset $ 1,804 $ 1,833 Investments in trading securities at fair value, non-current 1,453 1,449 Investments in available-for-sale debt securities at fair value (amortized cost: $5
Slide 46: Consolidated Balance Sheets
Consolidated Balance Sheets (DOLLARS IN THOUSANDS) September 30, 2024 (unaudited) June 30, 2024 Current Liabilities Accounts payable $ 4 $ 14 Accrued compensation and related costs 398 609 Dividends payable 309 313 Financing lease liability, short-term 33 31 Other accrued expenses 1,171 1,197 Total
Slide 47: Consolidated Balance Sheets
Consolidated Balance Sheets (DOLLARS IN THOUSANDS) September 30, 2024 June 30, 2024 (unaudited) Shareholders’ Equity Common stock (class A) - $0.025 par value; nonvoting; 28,000,000 shares authorized; 13,866,999 shares issued at September 30, 2024, and June 30, 2024; 11,562,261 and $ 347 $ 347 11,75
Slide 48: Marketing Highlights
Marketing Highlights Holly Schoenfeldt Director Of Marketing WWW.USFUNDS.COM
Slide 49: Global Visitors to usfunds.com
GLOBAL VISITORS TO USFUNDS.COM 407,799 TOTAL VISITORS FROM 09/30/2023 – 09/30/2024 *Data from December 2019 - December 2020 49 49
Slide 50: Explore Our Educational Videos
Explore Our Educational Videos WWW.USFUNDS.COM
Slide 51: Top Content From Our Award-Winning Financial CEO Blog
TOP CONTENT FROM OUR AWARD-WINNING FINANCIAL CEO BLOG August 9, 2024 September 3, 2024 July 5, 2024 September 6, 2024 August 26, 2024 Understanding the Yen The Contrarian Commodities Halftime The Yield Curve Inversion How Kamala Harris’s Carry Trade Impact on Opportunity in Gold Report: Silver, Oil
Slide 52: Decentralized Assets Have Never Looked More Attractive
| | DECENTRALIZED ASSETS HAVE NEVER LOOKED MORE ATTRACTIVE THAN THEY DO NOW.
Slide 53: U.S. Global Investors Receives STAR Award – 94 Total
U.S. Global Investors Receives STAR Award – 94 Total The Investment Management Education Alliance (IMEA) awarded U.S. Global Investors with a STAR Award for investor education during its annual awards ceremony in early October. • Investor Content Award (JETS ETF Marketing Campaign) This brings the f
Slide 54: First Quarter 2025 Subscriber Growth
First Quarter 2025 Subscriber Growth 18,664 1,095 Total Subscriber Growth Over 12 Months Twitter Followers Twitter Posts 112,000 111,444 110,000 12,350 32 YouTube Viewers New Videos 108,000 106,000 5,631 104 104,000 LinkedIn Readers Articles 102,000 100,000 33,849 286 98,000 Email Subscribers Emails
Slide 55: Feeling Left Out? Follow us on Social Media
Feeling Left Out? Follow us on Social Media WWW.USFUNDS.COM 55
Slide 56: Thank You
Thank You WWW.USFUNDS.COM 56
Slide 57: 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 S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The NYSE Arca Global
Slide 58: 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 59: 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
U.S. Global Investors — Q1 2025 Earnings Presentation on 6ix