U.S. Global Investors(US:GROW)2024-09-11 17:45Financial Data and Key Metrics Changes - Average assets under management for fiscal year 2024 were $1.9 billion, with operating revenues of $11 million, representing a decrease of $4.1 million or 37% from the previous year [48][49] - Net income for the year was $1.3 million or $0.09 per share, down from $3.1 million or $0.22 per share in fiscal year 2023, indicating an unfavorable change of $1.8 million [50] Business Line Data and Key Metrics Changes - The company experienced a significant decline in operating revenues primarily due to decreases in assets under management, especially in the JETS ETF [49] - Operating expenses for the current quarter were $11.5 million, relatively flat compared to the prior year, but included higher fund expenses related to proxy costs and merger costs [49] Market Data and Key Metrics Changes - The JETS ETF saw a substantial increase in assets during COVID, but has since experienced a decline, with assets under management trailing off to just over $1 billion [27][28] - Despite the airline industry recovering, the JETS ETF faced redemptions, attributed to negative sentiment influenced by the inverted yield curve [30][31] Company Strategy and Development Direction - The company is focused on creating thematic products using a smart beta 2.0 strategy, which involves rigorous back-testing and continuous testing each quarter [22] - A merger of the Europe-Domiciled Airlines ETF into the Travel UCITS ETF was announced, aimed at expanding the company's footprint in the market [21] Management's Comments on Operating Environment and Future Outlook - Management noted that actively managed domestic equity funds continue to see redemptions, while there is growth in actively managed domestic equity ETFs [10] - The inverted yield curve has negatively impacted sentiment towards the airline industry, but management is optimistic about future growth as the curve has recently reversed [30][31] Other Important Information - The company has maintained a strong balance sheet with high levels of cash and securities, and no long-term debt [51] - The total shareholder yield is reported at 9.41%, combining dividends and stock buybacks [23] Q&A Session Summary Question: What are the reasons for the decline in JETS ETF assets? - The decline in JETS ETF assets is attributed to negative sentiment influenced by the inverted yield curve, despite the airline industry performing well [30][31] Question: How does the company plan to enhance shareholder value? - The company plans to enhance shareholder value through stock buybacks and increasing dividends, while also focusing on creating new thematic products [12][22]