U.S. Global Investors, Inc. (GROW) Bundle
A Brief History of U.S. Global Investors, Inc.
Company Overview
U.S. Global Investors, Inc. is an investment management firm founded in 1968, focusing on mutual funds and exchange-traded funds (ETFs) that invest primarily in a variety of sectors including natural resources and global markets. The company's investment philosophy emphasizes a long-term approach to wealth creation.
Financial Performance as of 2024
As of September 30, 2024, U.S. Global Investors reported a net income of $315,000, which translates to $0.02 per share, a significant improvement from a net loss of $176,000 or $(0.01) per share during the same period in 2023. This increase of approximately $491,000 is attributed primarily to net investment income in the current period, contrasting with a net investment loss in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $315,000 | $(176,000) |
| Earnings Per Share (EPS) | $0.02 | $(0.01) |
| Total Operating Revenues | $2,157,000 | $3,133,000 |
| Total Operating Expenses | $2,716,000 | $2,918,000 |
| Operating Income (Loss) | $(559,000) | $215,000 |
Assets Under Management
As of September 30, 2024, U.S. Global Investors managed approximately $1.5 billion in assets, a decrease from $1.8 billion in the same period in 2023. The decline is attributed to market fluctuations and changes in investor sentiment, which impacted the total value and composition of assets.
| Assets Under Management | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Assets Under Management | $1.5 billion | $1.8 billion |
| Average Assets Under Management | $1.5 billion | $2.1 billion |
Investment Strategies
The company's investment strategies are primarily focused on providing clients with exposure to global markets, particularly in sectors such as natural resources. The firm employs a combination of fundamental analysis and market timing to optimize portfolio performance.
Recent Developments
In 2024, U.S. Global Investors continued to adapt its investment strategies in response to changing market conditions. The firm reported a significant decrease in advisory fees, which fell to $2,127,000 from $3,103,000 year-over-year, primarily due to lower average assets under management.
| Advisory Fees | Q3 2024 | Q3 2023 |
|---|---|---|
| Advisory Fees | $2,127,000 | $3,103,000 |
Dividends
The Board of Directors declared a monthly dividend of $0.0075 per share, which is expected to continue through December 2024, subject to review based on the company's earnings and financial condition.
Liquidity Position
As of September 30, 2024, U.S. Global Investors reported a net working capital of approximately $38.2 million with a current ratio of 21.0 to 1. The company holds cash and cash equivalents of $27.3 million, indicating a strong liquidity position to meet current obligations.
| Liquidity Metrics | Amount |
|---|---|
| Net Working Capital | $38.2 million |
| Current Ratio | 21.0 to 1 |
| Cash and Cash Equivalents | $27.3 million |
A Who Owns U.S. Global Investors, Inc. (GROW)
Ownership Structure
As of September 30, 2024, U.S. Global Investors, Inc. (GROW) maintains a diverse ownership structure consisting of institutional and individual investors. The total number of shares outstanding for Class A common stock is 13,866,999, while Class C common stock stands at 2,068,549 shares. The par value for Class A is $0.025 and for Class C is $0.025.
| Share Class | Outstanding Shares | Par Value | Market Value (Approx.) |
|---|---|---|---|
| Class A Common Stock | 13,866,999 | $0.025 | $34.8 million |
| Class C Common Stock | 2,068,549 | $0.025 | $5.2 million |
Major Shareholders
The largest shareholders include both institutional investors and individual stakeholders. The following table summarizes the major shareholders as of September 30, 2024:
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| Frank E. Holmes | 35.1% | Individual |
| BlackRock, Inc. | 7.2% | Institutional |
| Vanguard Group, Inc. | 5.9% | Institutional |
| Dimensional Fund Advisors LP | 4.3% | Institutional |
| Other Institutional Investors | 20.5% | Institutional |
Stock Performance
As of September 30, 2024, GROW's stock price is approximately $2.51 per share, reflecting a market capitalization of around $34.8 million. The stock has experienced fluctuations over the past year, showing a high of $3.25 and a low of $1.85.
Recent Financial Performance
In the three months ended September 30, 2024, U.S. Global Investors reported a net income of $315,000, which translates to earnings per share (EPS) of $0.02. This is a significant improvement from a net loss of $176,000 for the same period in 2023. The total assets of the company as of September 30, 2024, amount to $51.084 million.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $315,000 | ($176,000) |
| Total Assets | $51.084 million | $54.092 million |
| EPS | $0.02 | ($0.01) |
Dividends and Share Buyback Program
The Board of Directors has authorized a monthly dividend of $0.0075 per share through December 2024, amounting to an estimated total of $309,000 for Class A and Class C shareholders. Additionally, the company has an active share repurchase program authorized for up to $5 million through December 31, 2024.
| Dividend Amount | Frequency | Total Estimated Dividend (Q4 2024) |
|---|---|---|
| $0.0075 | Monthly | $309,000 |
Conclusion
U.S. Global Investors, Inc. continues to maintain a robust ownership structure with significant representation from both individual and institutional investors. The recent financial performance indicates a positive trend, supported by a strategic focus on shareholder returns through dividends and share buybacks.
U.S. Global Investors, Inc. (GROW) Mission Statement
Company Overview
U.S. Global Investors, Inc. (GROW) is an investment management firm that focuses on providing investment solutions to clients through various funds and investment vehicles. The company is dedicated to delivering superior performance and value to its shareholders and clients.
Mission Statement
The mission of U.S. Global Investors, Inc. is to provide investors with exceptional investment management services that are tailored to meet their financial goals, while maintaining a commitment to ethical standards and transparency. The company strives to create long-term value for its clients through innovative investment strategies and a disciplined investment process.
Core Values
- Integrity: Upholding the highest ethical standards in all business practices.
- Client Focus: Prioritizing the needs and goals of clients in all investment decisions.
- Innovation: Continuously seeking new opportunities and strategies to enhance investment performance.
- Transparency: Providing clear and honest communication regarding investment strategies and performance.
Financial Performance
As of September 30, 2024, U.S. Global Investors reported the following financial metrics:
| Financial Metric | Amount (in thousands) |
|---|---|
| Operating Revenues | $2,157 |
| Net Investment Income | $917 |
| Other Income | $78 |
| Income Before Income Taxes | $436 |
| Consolidated Total Assets | $51,084 |
| Consolidated Shareholders' Equity | $48,367 |
| Net Income | $315 |
| Earnings Per Share | $0.02 |
Investment Management Services
For the three months ended September 30, 2024, the breakdown of operating revenues from investment management services included:
| Service Type | Revenue (in thousands) |
|---|---|
| ETF Advisory Fees | $1,764 |
| USGIF Advisory Fees | $466 |
| USGIF Performance Fees | $(103) |
| Total Advisory Fees | $2,127 |
| USGIF Administrative Services Fees | $30 |
| Total Operating Revenue | $2,157 |
Dividend Policy
The Board of Directors has authorized a monthly dividend of $0.0075 per share, expected to continue through December 2024. This policy reflects the company's commitment to returning value to its shareholders.
Market Position and Strategy
U.S. Global Investors continues to adapt its investment strategies in response to market conditions, emphasizing a diversified approach to asset management. As of September 30, 2024, the company had approximately $27.3 million in cash and cash equivalents, indicating a solid liquidity position to support ongoing operations and potential investments.
Conclusion
In conclusion, U.S. Global Investors, Inc. is committed to its mission of delivering exceptional investment management services while adhering to core values of integrity, client focus, innovation, and transparency. The company's financial performance reflects its dedication to creating value for shareholders and clients alike.
How U.S. Global Investors, Inc. (GROW) Works
Company Overview
U.S. Global Investors, Inc. (GROW) is an investment management firm that focuses on providing a range of investment strategies through mutual funds and exchange-traded funds (ETFs). As of September 30, 2024, the company manages approximately $1.5 billion in total assets, down from $1.8 billion a year earlier.
Financial Performance
For the three months ended September 30, 2024, U.S. Global Investors reported a net income of $315,000, or $0.02 per share, compared to a net loss of $176,000, or $(0.01) per share, for the same period in 2023. This reflects a significant recovery driven by improved investment income.
Revenue Breakdown
The company's total operating revenue for the three months ended September 30, 2024, was $2.157 million, a decrease from $3.133 million in the prior year, primarily due to lower advisory fees from ETFs.
| Revenue Source | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) |
|---|---|---|
| ETF Advisory Fees | 1,764 | 2,709 |
| USGIF Advisory Fees | 466 | 506 |
| Total Advisory Fees | 2,127 | 3,103 |
| Administrative Services Fees | 30 | 30 |
| Total Operating Revenue | 2,157 | 3,133 |
Investment Income
Net investment income for the quarter was reported at $917,000, compared to a loss of $513,000 in the same quarter of the previous year. This improvement was primarily due to realized gains on debt securities and increased dividend income.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $2.716 million, down from $2.918 million in 2023. Key components included employee compensation of $1.081 million and general administrative expenses of $1.503 million.
| Expense Type | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) |
|---|---|---|
| Employee Compensation | 1,081 | 1,274 |
| General and Administrative | 1,503 | 1,501 |
| Advertising | 109 | 81 |
| Depreciation | 22 | 61 |
| Total Operating Expenses | 2,716 | 2,918 |
Assets and Liabilities
As of September 30, 2024, U.S. Global Investors reported total assets of approximately $51.084 million, with current assets of $38.2 million, yielding a current ratio of 21.0. The company maintains a strong liquidity position with around $27.3 million in cash and cash equivalents.
Dividends and Share Repurchase
The Board of Directors has authorized a monthly dividend of $0.0075 per share through December 2024, with expected total dividends of approximately $309,000 for the quarter.
During the three months ended September 30, 2024, the company repurchased 197,887 shares of its Class A common stock at a cost of approximately $520,000.
Market and Investment Strategy
The company's investment strategy focuses on global markets, leveraging opportunities in equity and fixed-income securities. U.S. Global Investors aims to enhance its investment management capabilities by monitoring market trends and adjusting its portfolio accordingly.
| Investment Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Assets Under Management (in $ millions) | 1,500 | 1,800 |
| Average Assets Under Management (in $ millions) | 1,500 | 2,100 |
| Net Income (in $ thousands) | 315 | (176) |
| Operating Revenue (in $ thousands) | 2,157 | 3,133 |
How U.S. Global Investors, Inc. (GROW) Makes Money
Revenue Sources
U.S. Global Investors, Inc. primarily generates revenue through various investment management services and investment activities. For the three months ended September 30, 2024, the company's total operating revenues were $2.157 million, a decrease from $3.133 million in the same period in 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| ETF Advisory Fees | $1,764 | $2,709 |
| USGIF Advisory Fees | $466 | $506 |
| USGIF Performance Fees | ($103) | ($112) |
| Administrative Services Fees | $30 | $30 |
| Total Operating Revenue | $2,157 | $3,133 |
Investment Management Services
As an investment advisor, U.S. Global Investors manages several exchange-traded funds (ETFs) and provides advisory services to the U.S. Global Investors Funds (USGIF). The firm receives a unitary management fee of 0.60% of average net assets for its U.S.-based ETFs and 0.69% for its European-based ETF. This fee structure is essential for the company's revenue, particularly as average assets under management fluctuate.
Net Investment Income
In addition to advisory fees, U.S. Global Investors earns net investment income from its own investment activities. For the three months ended September 30, 2024, the company reported net investment income of $917,000 compared to a loss of $513,000 in the same period of 2023.
| Net Investment Income Components (Q3) | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Dividend and Interest Income | $600 | $582 |
| Realized Gains (Losses) on Debt Securities | $203 | $336 |
| Unrealized Gains (Losses) on Debt Securities | $40 | $0 |
| Realized Foreign Currency Gains (Losses) | $47 | ($90) |
| Total Net Investment Income | $917 | ($513) |
Operating Expenses
Operating expenses are a critical aspect of the company's financial performance. For Q3 2024, total operating expenses were $2.716 million, down from $2.918 million in Q3 2023.
| Operating Expenses (Q3) | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Employee Compensation and Benefits | $1,081 | $1,274 |
| General and Administrative | $1,503 | $1,501 |
| Advertising | $109 | $81 |
| Depreciation | $22 | $61 |
| Total Operating Expenses | $2,716 | $2,918 |
Net Income
For the three months ended September 30, 2024, U.S. Global Investors reported a net income of $315,000, or $0.02 per share, compared to a net loss of $176,000, or $(0.01) per share, in the same period in 2023.
| Net Income Summary (Q3) | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Income (Loss) | $315 | ($176) |
| Earnings Per Share (EPS) | $0.02 | ($0.01) |
Stock Buybacks and Dividends
U.S. Global Investors has a stock buyback program, with a limit of $5 million for 2024. In Q3 2024, the company repurchased 197,887 shares for $520,000. Additionally, the Board has authorized a monthly dividend of $0.0075 per share through December 2024, totaling approximately $309,000 expected to be paid during that period.
| Stock Repurchase Summary | Q3 2024 |
|---|---|
| Shares Repurchased | 197,887 |
| Cost of Repurchase | $520,000 |
| Monthly Dividend per Share | $0.0075 |
| Total Expected Dividend Payment | $309,000 |
Assets Under Management
As of September 30, 2024, U.S. Global Investors had total assets under management of approximately $296.2 million, with an average investment management fee of 0.62%. This represents a slight decline in average net assets compared to the previous year, reflecting the impacts of market fluctuations and fund liquidations.
| Assets Under Management | September 30, 2024 (in millions) | September 30, 2023 (in millions) |
|---|---|---|
| Total Assets Under Management | $296.2 | $312.9 |
| Average Investment Management Fee | 0.62% | 0.64% |
Market Position and Future Outlook
U.S. Global Investors operates in a competitive investment management landscape. The firm’s ability to adapt to market changes, manage assets effectively, and leverage investment opportunities will be critical for sustaining revenue growth and profitability in 2024 and beyond.
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Resources:
- U.S. Global Investors, Inc. (GROW) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of U.S. Global Investors, Inc. (GROW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View U.S. Global Investors, Inc. (GROW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.