U.S. Global Investors, Inc. (NASDAQ:GROW) Q4 2020 Earnings Conference Call - Final Transcript

Sep 11, 2020 • 08:30 am ET


U.S. Global Investors, Inc. (NASDAQ:GROW) Q4 2020 Earnings Conference Call - Final Transcript


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Holly Schoenfeldt

Good morning, and thank you for joining us today for our webcast announcing US Global Investors Results for Fiscal Year 2020. I'm Holly Schoenfeldt. Before we begin today's presentation, I would like to ask for a brief moment of silence to remember the lives lost on September 11, 2001. [Operator Instructions]

The presenters for today's program are Frank Holmes, US 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-K 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 US Global accepts no obligation to update them in the future.

On Slide Four, you will see a quick overview of US Global Investors. We are in an innovative investment manager with vast experience in global markets and specialized sectors. Founded as an investment club, [Technical Issues]

Frank E. Holmes

[Technical Issues] following day non-stop.

So, let's jump into this good news, where our strengths are, we strive to be a go-to-stock for exposure in emerging markets, resources, gold, digital. And it's constantly sort of wave where we have found that our stock was highly correlated as a Company to our gold assets and gold resources in emerging markets. And then it was through our HIVE investments, so I'll comment on the digital currencies. And now, it appears to be airlines because the JETS ETF, which I'll talk about is our largest asset.

So we have a strong balance sheet, the reflection of cost structure and a monthly dividend and return on equity discipline. The next visual I want to thank Perritt, the Royce funds, who have been long-term loyal shareholders and Heartland Advisors, Bill Nasgovitz, recently came down in June, the business in San Antonio, and they have -- a position in our Company, and Financial Investment Management Group, Paul Sutherland has been with us a long time and very loyal. So it's great to see the midyear all along and BlackRock with their index funds in the asset management company business.

Let's look at the next one, next page, for the past 11 years we have consistently been paying a dividend, a monthly dividend, the yield is look so tiny. But I can tell you it's much higher than a money fund and it has the capacity to grow. So let's talk on in the next one, next visual is the Board approved a repurchase of up to $2.75 million of outstanding common shares on the open market during the three months ended June 30, the Company repurchased 32,000 Class A shares using cash of a modest $39,000. We