Contact:
Valerie Kimball
Investor Relations
303.703.1210
vkimball@epochfinancial.com
Rolf Gatlin
Public Relations For Immediate Release
210.308.1268
rmgatlin@usfunds.com
Strong Performance Drives Significant Growth in Assets,
Revenues and Earnings for U.S. Global Investors' Third Quarter
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SAN ANTONIO - May 17, 2004 - U.S. Global Investors, Inc. (NASDAQ: GROW) (the
Company), a registered investment advisory firm, announced it posted net income
for the quarter ended March 31, 2004, of approximately $240,000, $0.03 income
per share, unaudited, compared to a net loss of approximately $70,000, $0.01
loss per share, unaudited, for the comparable period last year. This is a
positive reversal of more than 400 percent. For the nine-month period ending
March 31, 2004, the Company posted net income of approximately $2.2 million,
$0.29 income per share, unaudited, compared to net income of approximately
$183,000, $0.02 income per share, unaudited, for the nine months ending March
31, 2003.
"These increases were largely due to substantial growth in the assets of the
Company's gold, natural resource and foreign equity funds," says Frank Holmes,
Chief Executive Officer of U.S. Global Investors. "The tremendous growth we have
witnessed over the past year has largely been the result of the superior
relative performance of our specialty funds, which in turn has led to strong
recognition from the industry's leading rating agencies and a broader acceptance
of these unique asset classes."
Revenues for the quarter ending March 31, 2004, were approximately $1.3 million,
or 72 percent, higher than the quarter ending March 31, 2003. In addition,
revenues for the nine-month period ending March 31, 2004, increased
approximately $4.3 million, or 73 percent, as compared to the nine months ending
March 31, 2003.
Expenses for the quarter ending March 31, 2004, were approximately $921,000, or
47 percent, higher than the quarter ending March 31, 2003. The expenses for the
nine-month period ended March 31, 2004, increased approximately $1.6 million, or
28 percent, as compared to the nine months ending March 31, 2003. Consistent
with increased fund assets and strong fund performance, certain sub-advisory
fees, omnibus distribution costs, and performance-driven personnel costs
contributed to the increases in expenses.
Financial Highlights (Unaudited)
U.S. Global Investors, Inc.
Quarter Ended Quarter Ended Nine Months Ended Nine Months Ended
March 31, 2004 March 31, 2003 March 31, 2004 March 31, 2003
-------------- -------------- -------------- --------------
Total Revenues $3,216,977 $1,873,995 $10,183,043 $5,885,693
Total Expenses $2,869,649 $1,948,229 $ 7,329,230 $5,708,344
Tax Expense (Benefit) $ 107,431 $ (4,384) $ 677,912 $ (5,885)
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Net Income (Loss) $ 239,897 $ (69,850) $ 2,175,901 $ 183,234
Basic and Diluted Net
Income (Loss) Per Share $ 0.03 $ (0.01) $ 0.29 $ 0.02
Weighted Average Diluted
Shares Outstanding $7,551,696 $7,486,856 $ 7,534,856 $7,470,222
Average Assets under
Management
($ in millions) $ 1,543 $ 1,070 $ 1,305 $ 1,080
About U.S. Global Investors, Inc.
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U.S. Global Investors, Inc. is a registered investment adviser with a focus on
profitable niche markets around the world. Headquartered in San Antonio, Texas,
the company offers financial solutions and provides transfer agency and other
services to U.S. Global Investors Funds and U.S. Global Accolade Funds. The
groups consist of 12 no-load mutual funds that invest in a variety of investment
options, from emerging markets to money markets. In general, trends in assets
are the critical drivers of revenue and earnings trends. For more information
about U.S. Global Investors and a prospectus for any of our funds, visit us
online at www.usfunds.com, or call 1-800-US-FUNDS.
This news release may include certain "forward-looking statements" including
statements relating to revenues, expenses, and expectations regarding market
conditions. These statements involve certain risks and uncertainties. There can
be no assurance that such statements will prove accurate and actual results and
future events could differ materially from those anticipated in such statements.