The following is a summary of the U.S. Global Investors, Inc. (GROW) Q2 2024 Earnings Call Transcript:
Financial Performance:
U.S. Global Investors reported average assets under management of $2 billion for the quarter ending December 31, 2023.
The company's operating revenues for the quarter were $2.8 million, down 24%, and a net income of $1.2 million, an indication of a 45% increase over the same quarter last year.
Earnings per share for the quarter were $0.09.Operating income for this quarter decreased to $192,000, which is a drop from the previous year's $716,000.
The company maintains a strong balance sheet with high levels of cash and no long-term debt. Net working capital increased to $38.3 million, and the current ratio stood at 18.8:1.
Business Progress:
The company continues to use a successful quantitative investment strategy involving active risk management and data analysis, resulting in the creation of Smart Beta 2.0 ETFs.
U.S. Global Investors closed two mutual funds focused on Eastern Europe and China due to market conditions, but launched the SEA fund to leverage opportunities in the global shipping industry.
Future plans include a focus on shareholder yield, launch expectations for new products, cash preservation for future growth opportunities and market corrections, and strategic stock buyback.
The company's investments in HIVE Digital has surpassed the returns from five-year or ten-year government bonds.
U.S. Global Investors is looking at a potential strategic shift towards NVIDIA and the overall AI business, due to strong growth in these sectors. Their strategy also highlights the successful 'magnificent seven' performance.
More details: US Global Investors IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.