Contact:
Rolf Gatlin
Public/Media Relations
210.308.1268
rmgatlin@usfunds.com
For Immediate Release
U.S. Global Investors Reports Net Income of $0.15 Per Share For
First Quarter, a 400% Year-Over-Year Increase
Revenues grow 122% year-over-year
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SAN ANTONIO - November 14, 2005 - U.S. Global Investors, Inc. (NASDAQ: GROW), a
boutique registered investment advisory firm, announced it posted net income for
the quarter ended September 30, 2005, of $1,095,935, or $0.15 income per share,
unaudited, compared to net income of $240,462 or $0.03 income per share,
unaudited, for the comparable period last year.
"We continue to see substantial growth in assets in the natural resource and
foreign equity mutual funds the Company manages," says Frank Holmes, Chief
Executive Officer of U.S. Global Investors. "This growth in assets, as well as
increased transfer agency fees, have contributed to substantial growth in
revenues over the past quarter."
Revenues for the quarter ended September 30, 2005, increased $3.61 million to
approximately $6.57 million, 122 percent higher than the revenues of
approximately $2.96 million for the quarter ended September 30, 2004.
The Company's investment management services were robust this quarter as shown
by a $2.84 million, or 120 percent, increase in investment advisory fees and a
$357,000, or 54 percent, increase in transfer agency fees. The increased
investment advisory fees were a result of a 78 percent increase in the average
assets under management for the quarter ended September 30, 2005, over the
quarter ended September 30, 2004.
Expenses for the quarter ended September 30, 2005, were approximately $2.23
million higher than the quarter ended September 30, 2004. Consistent with
increased fund assets and strong fund performance, certain subadvisory fees,
platform distribution costs, and performance-driven compensation costs
contributed to the increases in expenses.
"We continue to focus on improving our profit margin," continues Holmes.
"Management is strategizing to address this issue so that we are on a more level
competitive playing field within the mutual fund investment industry. The
dramatic rise in third-party platform fees and compliance costs, two external
and unexpected factors, have in recent years had significant impact on the
Company's profit margins." This increase in costs is consistent with a new
survey by the CFA Institute and Investment Adviser Association, which stated
that regulatory requirements have led to a 54 percent increase in compliance
costs for smaller firms, as reported by Ignites.
Cash, cash equivalents and marketable securities have increased from June 30,
2005 to September 30, 2005, by approximately $1 million, or 14 percent, to a
total of $8.3 million, or 59 percent of total assets.
Financial Highlights (Unaudited)
U.S. Global Investors, Inc.
Quarter Ended Quarter Ended
September 30, 2005 September 30, 2004
Total Revenues $6,574,522 $2,961,649
Total Expenses $4,859,052 $2,630,579
Tax Expense $ 619,535 $ 90,608
Net Income $1,095,935 $ 240,462
Basic and Diluted Net
Income Per Share $ 0.15 $ 0.03
Basic Weighted Average
Shares Outstanding 7,492,493 7,473,222
Diluted Weighted Average
Shares Outstanding 7,587,049 7,530,663
Mutual Fund Average Assets
Under Management
($ in billions) $ 2.41 $ 1.35
About U.S. Global Investors, Inc.
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 13 no-load mutual funds that invest in a variety of investment
options, from emerging markets to money markets.
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.
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