U.S. Global Investors(GROW) - 2022 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported average assets under management of $4.1 billion for the quarter ending March 31, 2022, consistent with the prior quarter and slightly up from a year ago [43] - Total operating revenues were $6.2 million, a decrease of $180,000 or 3% from the same quarter last year [44] - Operating income for the quarter was $2.5 million, a decrease of $775,000 compared to the same period for fiscal year 2021 [45] - Net loss after taxes for the quarter was $846,000, equating to a loss of $0.06 per share [45] Business Line Data and Key Metrics Changes - Operating expenses increased to $3.7 million, up 19% over the same period last year, primarily due to higher fund expenses and consulting fees [44] - The company repurchased 19,487 shares of its Class A shares using cash of approximately $97,000 during the quarter [13] Market Data and Key Metrics Changes - The JETS ETF experienced significant trading activity, with fund flows surging following the removal of mask mandates for domestic flights [15] - The airline industry is seeing strong demand, with a noted shortage of pilots contributing to pricing power [35] Company Strategy and Development Direction - The company aims to manage expectations for new product launches while preserving cash for future growth opportunities and market corrections [21] - The strategy includes increasing stock buybacks during down days, which has been discussed and reviewed regularly with the Board [21][23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of active asset management, particularly in light of geopolitical events, and noted the company's timely exit from Russian stocks [32][33] - The company is optimistic about the future of the airline industry, citing strong demand and pricing power due to supply chain disruptions [37] Other Important Information - The company has no long-term debt, with only deferred taxes as long-term liabilities [46] - Cash and cash equivalents increased to $26 million, with a goal to reach $30 million [20] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented in the provided content [53]