Contact:
Erica Borchers
Public Relations
210.308.1268
enborchers@usfunds.com
For Immediate Release
U.S. Global Investors Reports Net Income of $0.16 Per Share For
Second Quarter, a 220% Year-Over-Year Increase
Revenues grow 89% year-over-year
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SAN ANTONIO - February 14, 2006 - U.S. Global Investors, Inc. (NASDAQ: GROW), a
boutique registered investment advisory firm, announced net income for the
quarter ended December 31, 2005, of $1,168,000, or $0.16 income per share,
unaudited, compared to net income of $407,000, or $0.05 income per share,
unaudited, for the comparable period last year.
Revenues for the quarter ended December 31, 2005, increased $3.65 million to
$7.76 million, 89 percent higher than revenues of $4.11 million in the
comparable period last year.
"Our team approach and dynamic quant models along with stronger growth metrics
in emerging markets and resource-based companies have continued to generate
excellent performance in the majority of the equity funds under our management,"
says Frank Holmes, Chief Executive Officer of U.S. Global Investors. "These
asset classes have out-performed the S&P 500 for the past five years, and our
funds' strong performance has attracted record new money flows to several of our
funds," he adds.
Investment advisory fees, which accounted for most of the increase in revenues,
grew by $2.94 million, primarily the result of a 69 percent increase in average
assets under management from $1.67 billion for the quarter ended December 31,
2004, to $2.83 billion for the quarter ended December 31, 2005. Total assets
under management have grown approximately 70 percent year-over-year from $1.81
billion as of December 31, 2004, to $3.05 billion as of December 31, 2005.
Expenses for the quarter ended December 31, 2005, were approximately $2.55
million higher than the quarter ended December 31, 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. "The
dramatic rise in third-party platform fees and compliance costs, two external
and unexpected factors, has in recent years had significant impact on the
Company's profit margins."
Financial Highlights (Unaudited)
U.S. Global Investors, Inc.
Quarter Ended Quarter Ended
December 31, 2005 December 31, 2004
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Total Revenues $ 7,760,832 $ 4,105,898
Total Expenses $ 6,047,942 $ 3,495,481
Tax Expense $ 545,300 $ 203,230
Net Income $ 1,167,590 $ 407,187
Basic Net Income Per Share $ 0.16 $0.05
Diluted Net Income Per Share $ 0.15 $0.05
Basic Weighted Average
Shares Outstanding 7,494,317 7,480,792
Diluted Weighted Average
Shares Outstanding 7,612,235 7,546,380
Mutual Fund Average Assets
Under Management
($ in billions) $ 2.83 $ 1.67
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.
Please consider carefully the fund's investment objectives, risks, charges and
expenses. For this and other important information, obtain a fund prospectus by
visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it
carefully before investing. Distributed by U.S. Global Brokerage, Inc.
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.
The S&P 500 Stock Index is a widely recognized capitalization-weighted index of
500 common stock prices in U.S. companies.
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