With the company’s reflexive cost structure, quarterly expenses decreased 26.3 percent compared to the prior year. Employee compensation and benefits decreased 17.1 percent, advertising expenses were lower by 71.2 percent over the prior year, and general and administrative expense declined 15.5 percent.The company has continued to pay monthly dividends of $0.02 per share. The monthly dividend equates to an annual yield of 3.92 percent on an annual basis at the September 28, 2012, closing price of $6.13 per share. Market Commentary “Next year is poised to be a pivotal year for gold stocks. Going back 30 years, gold companies have historically underperformed during the year of a presidential election,” says Holmes. “The silver lining for gold stock investors is that miners have typically bounced back the year after the election.” “Also, the positive dynamics for gold and gold stocks remain, as another syringe of quantitative easing was injected into the U.S. economy’s bloodstream,” says Holmes. “The Federal Reserve’s action in August reaffirmed my stance I’ve reiterated on several occasions that the governments across developed markets have no fiscal discipline, opting for ultra-easy monetary policies to stimulate growth instead.” The Fed’s move caused the gold price to rally, with gold futures increasing 14 percent during the quarter ended September 30, 2012. “While well-intentioned, I believe ‘quantitative infinity’ programs, not only in the U.S., but in Japan and Europe as well, may have a devastating devaluing effect on currencies, which has helped to spur gold prices over the past decade,” says Holmes. In addition, over the past year, there have been more than 200 stimulative monetary and fiscal policy moves initiated across several countries. These global easing measures are expected to have a positive effect on global markets over the next several months. Earnings Webcast Information The company has scheduled a webcast for 7:30 a.m. Central time on Wednesday, November 7, 2012, to discuss the company's key financial results for the quarter. Frank Holmes, CEO and chief investment officer, will be accompanied on the webcast by Susan McGee, president and general counsel, and Catherine Rademacher, chief financial officer. Click here to register or visit www.usfunds.com. The earnings presentation can also be accessed by dialing 1 (800) 446-1671. The confirmation number is 33605694. Please dial in at least 5 minutes prior to the start of the call. Selected financial data (unaudited):
|Three months ended|
|Income before taxes||89,536||1,162,086|
|Earnings per share (basic and diluted)||$||0.00||$||0.05|
|Avg. common shares outstanding (basic)||15,475,887||15,425,705|
|Avg. common shares outstanding (diluted)||15,475,887||15,426,221|
|Avg. assets under management (billions)||$||1.66||$||2.45|
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 Form 10-K, 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.