U.S. Global Investors, Inc.
), a boutique registered investment advisory firm specializing in natural resources and emerging markets, today recorded net income of $48,800, or 0 cents per share, on revenues of $4.98 million for the quarter ended September 30, 2012 (i.e., the first quarter of fiscal year 2013).
For the first quarter of fiscal year 2012, the company had net income of $749,518, or 5 cents per share, on revenues of $7.79 million. The year-over-year decline in revenue is primarily attributable to a decrease in assets under management. This follows an industry-wide trend that has persisted, as $215 billion has exited out of all stock mutual funds while nearly $290 billion was invested in bond funds over the past year, according to data from the Investment Company Institute.
As of September 30, 2012, total assets under management were $1.77 billion versus $2.05 billion at September 30, 2011, a decrease of 13.8 percent. Average assets under management were $1.66 billion for the quarter ended September 30, 2012.
“We’re pleased to see the markets experiencing a positive quarter, with the S&P 500 Index rising 6.35 percent and gold stocks rebounding considerably. The FTSE Gold Mines Index climbed 19.52 percent and the NYSE Arca Gold Miners Index increased 20.09 percent. Still, equity mutual funds continued to experience outflows of nearly $45 billion during the quarter while bond funds took in nearly twice that amount,” says Frank Holmes, U.S. Global Investors CEO. “We are disappointed that investors have opted out of the stock markets’ significant gains.”
Continued Strong Balance Sheet, Reflexive Cost Structure and Monthly Dividends
As of September 30, 2012, the company had net working capital of approximately $25 million. Cash and cash equivalents totaled $19.7 million and marketable securities totaled $14.4 million as of the end of the quarter. In addition, the company has had no long-term debt since 2004 and owns its headquarters building.