U.S. Global Investors, Inc. (NASDAQ:GROW) Q3 2019 Earnings Conference Call Transcript

May 10, 2019 • 08:30 am ET


U.S. Global Investors, Inc. (NASDAQ:GROW) Q3 2019 Earnings Conference Call Transcript


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Holly Schoenfeldt

Good morning, and thank you for joining us today for our webcast announcing U.S. Global Investors results for the Third Quarter of Fiscal Year 2019. I'm Holly Schoenfeldt. If you have any questions during the webcast, you can enter them into the questions area of the control panel sidebar, which is normally to the right of your screen. Also, you can download a PDF of today's slides by clicking on the red handout button. The presenters for today's program are Frank Holmes, U.S. Global Investors CEO and Chief Investment Officer; Lisa Callicotte, Chief Financial Officer; and myself Holly Schoenfeldt, Marketing and Public Relations Manager.

During this webcast, we may make forward-looking statements about our relative business outlook, any forward looking statements, and all other statements made during this webcast that don't pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any such statements are made as of today and U.S. Global Investors accepts no obligation to update them in the future.

And on Slide 4, very briefly about U.S. Global. U.S. Global Investors is an innovative investment manager with vast experience in global markets and specialized sectors, was founded as an investment club and the company became a registered investment adviser in 1968 and has a long-standing history of global investing and launching first-of-their-kind investment products, including the first no-load gold fund. U.S. Global is well known for expertise in gold and precious metals, natural resources and emerging markets.

And with that, I'm going to move to Slide 5 and go to Frank Holmes, CEO and CIO, for an overview of the period. Frank?

Frank E. Holmes

Thank you, Holly. It was interesting because we just started as an investment club of the military. And the Founder, Colonel Clark Aylsworth, who was a Air Force pilot, started this idea and he was the first to go into no-load gold investing when the yields were like 14% in the '70s. It was really -- it started in '68, but it really grew into a mutual fund. And it was probably -- it was prior to the USAA setting up their mutual funds. And so I think an interesting history, and USAA is just up the Street from our head office at Callaghan and I-10 in San Antonio. But what are our strengths? We're the go-to stock for exposure to emerging markets, resources, gold and now it's become digital currencies. And I think it will also pivot into artificial intelligence with our significant investment in GoldSpot.

We're debt-free. We have a strong balance sheet, with a reflexive cost structure. And we'll talk more about that. And then the monthly dividend return on equity discipline. Next, please. We want to thank all of our institutional investors that have stayed with us, that have come and gone. And it's interesting