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U.S. Global Investors, Inc. (GROW)

NasdaqGS - NasdaqGS Real-time price. Currency in USD
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2.5500-0.0200 (-0.78%)
At close: 4:00PM EDT
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Trade prices are not sourced from all markets
Previous close2.5700
Open2.5960
Bid2.5500 x 900
Ask3.0000 x 1100
Day's range2.5300 - 2.6300
52-week range0.8000 - 3.9000
Volume31,414
Avg. volume91,364
Market cap38.455M
Beta (5Y monthly)2.40
PE ratio (TTM)N/A
EPS (TTM)-0.3150
Earnings date04 Nov 2020 - 09 Nov 2020
Forward dividend & yield0.03 (1.18%)
Ex-dividend date13 Nov 2020
1y target estN/A
  • GlobeNewswire

    U.S. Global Investors Announces the Continuation of Monthly GROW Dividends and Expanding Margins with Rising Total Assets Now Over $2.2 Billion

    San Antonio, Texas, Sept. 23, 2020 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm with longstanding experience in global markets and specialized sectors, is happy to announce it will continue its payment of a monthly dividend for the second fiscal quarter of 2021. The Company has paid a monthly dividend since June 2007. The Company is also pleased to announce operating margin expansion for the quarter ending September 30, 2020. As of June 30, 2020, the Company’s assets under management (AUM) were $1.7 billion, a more than threefold increase from a year earlier. Correspondingly, total operating revenue has risen above the average revenue from the previous four quarters, reflecting the momentum in new fund flows. Quarter-over-quarter and year-over-year results are positive in both top and bottom-line growth. Assets have continued to grow in July, August and September, and are currently over $2.2 billion. The increase in AUM is being primarily driven by the Company’s U.S. Global Jets ETF (JETS). “We have accomplished several milestones in 2020, including our smart-beta 2.0 airlines ETF, JETS, breaking above $1 billion and our smart-beta 2.0 gold mining ETF, the U.S. Global GO Gold and Precious Metal Miners ETF (GOAU), surpassing $100 million in net assets for the first time ever. Our ETFs have continued to grow, and JETS is now over $1.6 billion and GOAU is over $119 million as of September 21. We spent thousands of hours building and backtesting the dynamic structure and factors for picking stocks in both ETFs, and we’re very pleased that they’ve performed exactly as we designed them to. Operating income margins are now expanding to about 30 percent as assets have risen and marketing has become a smaller portion of costs as a percentage of revenue,” says Frank Holmes, The Company’s CEO and chief investment officer. “Rockets require massive amounts of fuel to break free of the earth’s gravity, and likewise, we’ve spent a lot of money in marketing to get JETS and GOAU to these levels.” The Company pays all expenses of the ETFs, and an estimation of revenue based on AUM can be seen in the table below. ETF ASSETS UNDER MANAGEMENT ETF EXPENSE RATIO ADVISER ETF REVENUE $100 Million 60 Basis Points $600,000 $500 Million 60 Basis Points $3 Million $2 Billion 60 Basis Points $12 Million “As we noted in our fiscal year-end webcast on September 10, due to accomplishing these milestones, we expect revenues to increase due to the increase in AUM,” continued Mr. Holmes.  “Although we also expect expenses to increase, we do not expect them to grow at the same rate as revenue, thus resulting in an expected expansion of operating income margin. We are pleased with the continued growth in our funds and are excited about the benefit that this expected operating margin expansion will have for the Company.”Marketing Uses A.I. to Better Target and Brand ETFs “The Company has changed its digital marketing and branding strategy with short educational videos and by using artificial intelligence (AI) to expand our brand name as one of the go-to asset management firm for the airline industry,” Mr. Holmes added. “Marketing has strategically positioned the unique JETS story for the past five years by consistently hosting over 20 educational webinars for both retail investors and registered investment advisors (RIAs). The strategy has been paying off with fund flows.” New Data Sets to Track Passengers Flying The Investment team at U.S. Global Investors closely tracks data provided by the Transportation Security Administration (TSA) of the daily number of passengers cleared to fly in the U.S. Based on this data, the team believes air travel continues to recover following pandemic-related lockdown measures. The number of travelers during Labor Day hit 935,308, a post-pandemic high and a sharp increase from the low of 87,534 on April 14 date. An increase in air travel could lead to a recovery in airline stocks, boosting the performance of the JETS ETF. GROW Continues Monthly Dividends The Company’s board of directors approved payment of the $0.0025 per share per month dividend beginning in October 2020 and continuing through December 2020. The record dates are October 12, November 16 and December 14, and the payment dates will be October 26, November 30 and December 28. At the September 21, 2020, closing price of $2.61, the $0.0025 monthly dividend equals a 1.15 percent yield on an annualized basis. The continuation of future cash dividends will be determined by the Company’s board of directors, at its sole discretion, after review of the Company's financial performance and other factors, and is dependent on earnings, operations, capital requirements, general financial condition of the Company and general business conditions. The Company has paid a monthly dividend since June 2007 and management continues to buy back stock. We invite you to stay tuned for the announcement of the date in November for the next earnings webcast for the quarter ended September 30.About U.S. Global Investors, Inc.The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds and U.S. Global ETFs.Forward-Looking Statements and DisclosureThis news release and other statements by U.S. Global Investors may include certain “forward-looking statements,” including statements relating to revenues, expenses and expectations regarding market conditions. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “opportunity,” “seeks,” “anticipates” or other comparable words. Such statements involve certain risks and uncertainties and should be read with corporate filings and other important information on the Company’s website, www.usfunds.com, or the Securities and Exchange Commission’s website at www.sec.gov. These filings, such as the Company’s annual report and Form 10-Q, should be read in conjunction with the other cautionary statements that are included in this release. Future events could differ materially from those anticipated in such statements and there can be no assurance that such statements will prove accurate and actual results may vary. The Company undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise. Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usglobaletfs.com. Read it carefully before investing. Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Because the funds concentrate their investments in specific industries, the funds may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The funds are non-diversified, meaning they may concentrate more of their assets in a smaller number of issuers than diversified funds. The funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The funds may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the funds may diverge from that of the index. Because the funds may employ a representative sampling strategy and may also invest in securities that are not included in the index, the funds may experience tracking error to a greater extent than funds that seek to replicate an index. The funds are not actively managed and may be affected by a general decline in market segments related to the index. Airline Companies may be adversely affected by a downturn in economic conditions that can result in decreased demand for air travel and may also be significantly affected by changes in fuel prices, labor relations and insurance costs. Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors. Smart beta refers to investment strategies that emphasize the use of alternative weighting schemes to traditional market capitalization based indices. JETS and GOAU are distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to JETS and GOAU. CONTACT: Holly Schoenfeldt U.S. Global Investors, Inc. 210.308.1268 hschoenfeldt@usfunds.com

  • GlobeNewswire

    U.S. Global Investors Pleased to Report Assets Under Management Up More Than Three Times, Financial Results for the 2020 Fiscal Year

    San Antonio, TX, Sept. 10, 2020 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm with longstanding experience in global markets and specialized sectors, today reported a net loss of $4.7 million, or $0.31 per share, for the fiscal year ended June 30, 2020. This compares to a net loss of $3.4 million, or $0.22 per share, for the prior fiscal year. Operating loss improved in fiscal 2020, from a $2.8 million loss in fiscal 2019 to a $2.4 million loss in fiscal 2020. This was due to an increase in operating revenues, somewhat offset by an increase in operating expenses. The increase in revenues was primarily driven by the Company’s two ETFs, which, as discussed further below, have seen increased inflows since the start of the COVID-19 pandemic. Although the Company recorded a net operating loss for fiscal 2020, it is pleased to have seen a significant improvement in the quarter ended June 30, which saw an operating loss of $245,000, a 75 percent improvement over the operating loss of $979,000 for the quarter ended March 31, 2020. What’s more, heading into August, the Company had over $2 billion in total net assets for the first time since February 2012. Almost half of the net loss for fiscal 2020 is due to unrealized investment losses related to decreases in valuation of corporate investments. The adoption of a new accounting pronouncement in fiscal year 2018 required changes in the fair value of the Company’s equity investments formerly classified as available-for-sale to no longer be reported through other comprehensive income, but rather through earnings. This change in accounting has resulted in investment income and losses being more volatile quarter-to-quarter. For fiscal year 2020, the Company had a total investment loss of $2.2 million compared to a $1.6 million investment loss in fiscal year 2019. Like net income, though, investment income was positive for the quarter ended June 30. Total assets under management (AUM) on June 30, 2020, stood at $1.7 billion, a more than threefold increase from $510.1 million a year earlier. The increase was primarily due to inflows into the Company’s two ETFs, particularly the smart-beta 2.0 airlines ETF, the U.S. Global Jets ETF (JETS). Assets in JETS started to accelerate in the latter part of March 2020 and were $1.2 billion at fiscal year-end, as many value investors saw the coronavirus-related plunge in airline stocks as a buying opportunity. Positive inflows were recorded for an incredible 70 straight trading days, between March 3 and June 10, prompting Bloomberg Intelligence’s senior ETF analyst Eric Balchunas to call JETS “the hottest theme ETF in history.” Total AUM in the quantamental U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) also rose considerably, from $14.9 million at June 30, 2019, to $86.2 million a year later, representing a 478 percent increase. As such, the Company recorded advisory fees from the ETFs totaling $1.7 million in fiscal 2020, compared to $588,000 in fiscal 2019.JETS Exceeded $1 Billion in AUM; GOAU Above $100 MillionDespite certain challenges related to the pandemic, fiscal 2020 was a strong year for the Company’s two ETFs. Net assets in JETS broke above $1 billion for the first time ever on June 2 as value investors and hedge funds sought exposure to airline stocks, which tumbled some 50 percent due to the coronavirus-induced economic downturn. Only 18 percent of ETFs on average reach the $1 billion level, according to Bloomberg. GOAU, meanwhile, surpassed $100 million in net assets in July 2020 for the first time since its debut in June 2017.“We couldn’t be more thrilled with how well JETS and GOAU did in fiscal 2020,” says Frank Holmes, Company CEO and chief investment officer. “The pandemic has been devastating for many businesses and households, but the economic events created huge unexpected interest in JETS, which saw a remarkable $1.3 billion in inflows between March 3 and June 10. It’s important for GROW investors to remember that JETS charges 60 basis points, making it a significant generator of revenue, but also pays all the expenses of the fund.“Among the most enthusiastic JETS investors were from the retail side, particularly millennial Robinhood investors,” Mr. Holmes continues. “For some investing veterans, the narrative has been that ‘Robinhooders,’ as they’re called, are unsophisticated kids whose day-trading has destabilized stock prices. The reality is that many of them made some masterful calls in this last downturn. Just as the S&P 500 was bottoming, many Robinhood investors began picking up distressed airline stocks. This buying spree continued even after billionaire investor Warren Buffett announced in early May that he had dumped his shares in the top four domestic carriers. “We spent thousands of hours in research and backtesting before launching GOAU and JETS, and it was time well spent. It took five years of patience, capital and nurturing to build the JETS brand before its spectacular growth. That growth continues as the ETF was recently approved to trade on a number of large brokerage platforms, including those at Citi, Wells Fargo and Morgan Stanley,” Mr. Holmes says. HIVE Blockchain Recovery UnderwayThe Company’s primary proxy investment in the cryptocurrency mining industry remains HIVE Blockchain Technologies Ltd. (“HIVE”). As of June 30, 2020, the Company owned 10 million common shares of HIVE, valued at $2.4 million. Its stock is highly correlated with the price of Bitcoin and Ethereum, which continue to be volatile.“As the most liquid blockchain mining company, HIVE has rebounded substantially from the lows seen in December 2019 due most likely to tax-loss selling,” Mr. Holmes comments. “At 10 million shares, HIVE is a large holding for us. For comparison’s sake, there are over 15.1 million GROW shares outstanding, so one way to look at it is that for every GROW share, we have the equivalent of two-thirds of a HIVE share.”Mr. Holmes is the non-executive chairman of HIVE. Effective August 31, 2018, he was named HIVE’s Interim Executive Chairman while a search for a new CEO is undertaken.  Adequate Liquidity and Capital ResourcesAt June 30, 2020, the Company had net working capital of approximately $8.5 million and a current ratio of 5.2 to 1. With approximately $1.9 million in cash and cash equivalents and $11.4 million in unrestricted securities recorded at fair value, which together comprise approximately 71 percent of total assets, the Company has adequate liquidity to meet its current obligations. The Company also owns its own building and recently installed a number of superior commercial building grade filters to reduce the risk of possibly spreading the novel coronavirus in offices. Share Repurchase Program During fiscal year 2020, the Company repurchased 105,721 of its class A shares on the open market using cash of $113,000. Since January 2013, the Company has repurchased a total of 666,531 class A shares under the repurchase program using cash of $1.5 million. The share repurchase plan may be suspended or discontinued at any time. GROW Continued Dividends The Company has continued to pay monthly dividends for more than 11 years. The Board of Directors has authorized a monthly dividend of $0.0025 per share through September 2020, at which time the Board of Directors will consider continuation of the dividend. Earnings Webcast Information The Company has scheduled a webcast for 7:30 a.m. Central time on Friday, September 11, 2020, to discuss the Company’s key financial results for the year. Frank Holmes will be accompanied on the webcast by Lisa Callicotte, chief financial officer, and Holly Schoenfeldt, marketing and public relations manager. Click here to register for the earnings webcast or visit www.usfunds.com for more information.Selected Financial Data: (dollars in thousands, except per share data)   2020  2019 Operating Revenues $4,476 $3,459 Operating Expenses 6,879 6,216 Operating Loss (2,403) (2,757)       Total Other Loss (2,236) (1,512) Loss from Continuing Operations Before Income Taxes (4,639) (4,269)       Tax Benefit (175) (977) Net Loss from Continuing Operations (4,464) (3,292) Loss from Discontinued Operations (338) (147) Net Loss (4,802) (3,439) Less: Net Loss Attributable to Non-Controlling Interest from Discontinued Operations (118) (51) Net Loss Attributable to U.S. Global Investors, Inc. $(4,684) $(3,388) Loss per share (basic and diluted) $(0.31) $(0.22)       Avg. common shares outstanding (basic)     15,108,394     15,138,351 Avg. common shares outstanding (diluted) 15,108,394 15,138,351       Avg. assets under management for continuing operations (millions)       $699.5       $529.0 About U.S. Global Investors, Inc.The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds and U.S. Global ETFs.Forward-Looking Statements and DisclosureThis news release and other statements by U.S. Global Investors may include certain “forward-looking statements,” including statements relating to revenues, expenses and expectations regarding market conditions. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “opportunity,” “seeks,” “anticipates” or other comparable words. Such statements involve certain risks and uncertainties and should be read with corporate filings and other important information on the Company’s website, www.usfunds.com, or the Securities and Exchange Commission’s website at www.sec.gov.These filings, such as the Company’s annual report and Form 10-Q, should be read in conjunction with the other cautionary statements that are included in this release. Future events could differ materially from those anticipated in such statements and there can be no assurance that such statements will prove accurate and actual results may vary. The Company undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com. Read it carefully before investing. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. Because the Global Resources Fund concentrates its investments in specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.JETS and GOAU are distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to JETS and GOAU. CONTACT: Holly Schoenfeldt U.S. Global Investors, Inc. 210.308.1268 hschoenfeldt@usfunds.com