This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

U.S. Global Investors Reports Results For The Third Quarter Of 2012 Fiscal Year

Stocks in this article: GROW

U.S. Global Investors, Inc. ( NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, recorded net income of $487,138, or 3 cents per share, on revenues of $5.54 million for the third quarter of the 2012 fiscal year. The company’s net income increased a modest 19 percent on a quarter-over-quarter basis.

During the third quarter of fiscal year 2011, net income was $2.69 million, or 17 cents per share, on revenues of $11.41 million, based on average assets under management of $3.10 billion.

Average assets under management were $1.97 billion for the quarter ended March 31, 2012, a decrease of 36 percent from the previous year. U.S. Global’s assets under management stood at $1.89 billion on March 31, 2012.

“Despite a spectacular first-quarter rally, the investment industry experienced apathy as investors continued to redeem equity mutual funds,” says Frank Holmes, U.S. Global Investors CEO.

Across the industry, equity mutual funds saw nearly $10 billion redeemed during the first three months of 2012. In 2011, more than $134 billion was redeemed from U.S. equity funds, according to the Investment Company Institute.

“While growing the company’s assets under management remains challenging in the short term, our reflexive cost structure allows for profitability at a lower asset level. Compared to the same quarter last year, advertising expenses were down 99 percent, employment compensation and benefits decreased nearly 24 percent, and general and administrative costs declined by about 20 percent. In addition, the company owns its headquarters building and carries no debt on its balance sheet,” says Holmes.

“As U.S. investors were exiting equities, the S&P 500 Index was experiencing its largest first-quarter gain since 1998,” says Holmes. “This rise follows government policy changes that allowed money center ‘TARP’ banks to declare or raise dividend payouts. In fact, at March 31, about 400 companies in the S&P 500 pay dividends now, the largest figure since January 2000.”

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs