U.S. Global Investors(US:GROW)2020-02-12 17:26Financial Data and Key Metrics Changes - Total operating revenues for the quarter were $887,000, an increase of $94,000 or 12% from $793,000 in the same quarter last year, primarily due to decreases in performance fees and higher assets under management [29][30] - Operating expenses decreased by $251,000 or 15% to $1.4 million, mainly due to a reduction in employee compensation and general administrative expenses [29][30] - The net loss attributable to U.S. Global Investors after taxes for the quarter was $1 million, equating to a loss of $0.06 per share [30][31] Business Line Data and Key Metrics Changes - The company has maintained a strong balance sheet with a high level of cash and unrestricted marketable securities, which combined make up 60% of total assets [31] - The company has no long-term debt, with only lease obligations as long-term liabilities, and a net working capital of $10.2 million [31] Market Data and Key Metrics Changes - The mutual fund industry continues to see more exits than entries, with an unprecedented number of funds being merged or liquidated, surpassing the opening of new mutual funds [10] - The trading volume for the company's ETF, GOAU, has increased significantly, with a 700% rise in daily trading volume [13] Company Strategy and Development Direction - The company aims to be a go-to stock for exposure to emerging markets, resource gold, and digital currencies, emphasizing its debt-free status and strong balance sheet [4][5] - The company is focusing on innovative strategies to streamline costs in the mutual fund world and enhance its product offerings, particularly in gold and emerging markets [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the airline industry recovering from the impact of the Coronavirus, suggesting that it is undervalued and will rebound as solutions to the pandemic are found [37] - The company sees potential catalysts for growth in 2020, particularly through its gold funds and the performance of HIVE Blockchain, which is expected to positively impact GROW's valuation [48] Other Important Information - The company has been recognized for its excellence in investor education, receiving numerous awards, and continues to grow its subscriber base for investment newsletters [35] - The company is actively engaging in media outreach to enhance its brand visibility and attract potential investors [32][33] Q&A Session Summary Question: How is the Coronavirus impacting investments in some of your global funds or your airline ETF? - Management indicated that the Coronavirus has a more negative impact than SARS, particularly on Asian airlines, but remains optimistic about the U.S. economy and airline industry recovery [37] Question: How will the Galileo transaction affect the USGI financials? - Post-transaction, USGI will no longer consolidate Galileo's assets and liabilities, and will not include its income or loss in the income statement [38] Question: How do you see the recent resurgence in HIVE impacting GROW this year? - The resurgence in HIVE is expected to significantly increase GROW's valuation, with shares rising from $1 million to $4.7 million [44][46] Question: What global catalysts do you see potentially moving GROW in 2020? - Management highlighted the potential for growth through gold funds and the crypto space, particularly with HIVE Blockchain's developments and the increasing interest in alternative asset classes [48]