Contact:
Terry Badger
Director of Communications
210.254.6925
tbadger@usfunds.com
For Immediate Release
U.S. Global Investors acheives record earnings in 3Q
Net income up more than 400 percent from same quarter in 2005
********************************************************************************
SAN ANTONIO - May 15, 2006 - U.S. Global Investors, Inc. (NASDAQ: GROW), a
boutique registered investment advisory firm, today reported record earnings in
the quarter ended March 31, 2006, that were more than 400 percent higher than in
the same period in 2005.
The company recorded net income of $2.55 million, or 34 cents per share, on a
quarterly revenue record of $11.6 million during the three months. That compares
to earnings of $449,000, or 6 cents per share, on revenue of $4.9 million during
the same quarter a year earlier.
For the nine months ended March 31, 2006, U.S. Global has posted net income of
$4.81 million, or 64 cents per share, on revenue of $25.9 million. The company
earned $1.1 million, or 15 cents per share, on revenue of $12 million during the
nine-month period ended March 31, 2005.
"The wind of commodity prices hit our sails in the latest quarter, but we also
helped our performance by focusing on our rigorous investment processes," says
Frank Holmes, CEO and chief investment officer at U.S. Global Investors.
"We've taken a more defensive stance because it's getting harder to find stocks
that fit our strict models," Holmes continues. "We still believe in the secular
bull market for commodities, but as active money managers, we're cautious in the
short term. Pension funds have been investing heavily in commodity-based
indexes, and in the short term we're not sure how sustainable this demand driver
for commodities will be."
U.S. Global's mutual fund assets under management stood at $4.37 billion at the
end of the third quarter, nearly double the $2.23 billion under management on
March 31, 2005. Including all advisory contracts, the company now manages more
than $5.8 billion in assets.
-more-
Selected financial data (unaudited) for the three months ended March 31
2006 2005
Revenue $11,557,008 $4,885,699
Expenses $7,458,705 $4,155,139
Tax expense $1,547,895 $281,649
Net Income $2,550,408 $448,911
EPS (basic and diluted) $0.34 $0.06
Avg. Mutual Fund Assets under Mgmt $3.78 billion $2.01 billion
Selected financial data (unaudited) for the nine months ended March 31
2006 2005
Revenue $25,892,362 $11,952,326
Expenses $18,365,696 $10,280,278
Tax expense $2,712,730 $575,488
Net Income $4,813,936 $1,096,560
EPS (basic and diluted) $ 0.64 $0.15
Avg. Mutual Fund Assets under Mgmt $2.99 billion $1.68 billion
As of March 31, 2006, the U.S. Global Investors fund family had several funds
leading their peer groups and the overall mutual-fund sector in measures going
back as far as five years, according to the rating company Lipper Inc.
In the first three months of 2006, U.S. Global's World Precious Minerals Fund
(UNWPX) was ranked #2 by Lipper in total return among all domestic funds and the
Gold Shares Fund (USERX) was #3. In Lipper's measure for the 12 months ended
March 31, 2006, the Gold Shares Fund ranked #3 in total return among all
domestic funds and World Precious Minerals was #6.
For the five years ended March 31, 2006, the World Precious Minerals Fund ranked
#1 in total return among all domestic funds. U.S. Global's Eastern European Fund
(EUROX) was #3, the Gold Shares Fund was #4 and the Global Resources Fund
(PSPFX) was #16. No other fund family had more than two funds in Lipper's top
40.
As of March 31, 2006, according to Lipper, the World Precious Minerals Fund
ranked #3 of 54, #1 of 46, #1 of 35, and #15 of 24 among gold-oriented funds for
total return for the 1-, 3-, 5-, and 10-year periods. The Gold Shares Fund
ranked #1 of 54, #3 of 46, #2 of 35 and #23 of 24 among gold-oriented funds for
the 1-, 3-, 5- and 10-year periods. The Eastern European Fund ranked #7 of 196,
#1 of 173 and #2 of 137 among emerging-market funds for the 1-, 3- and 5-year
periods. The Global Resources Fund ranked #26 of 101, #1 of 74, #1 of 67 and #13
of 29 among natural resources funds for the 1-, 3-, 5- and 10-year periods.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.us-global.com) is a registered investment
adviser that focuses 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.
With more than $5.6 billion under management, the groups consist of 13 no-load
mutual funds that offer 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.
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.
Performance data quoted above is historical. Past performance is no guarantee of
future results. Current performance may be higher or lower than the performance
data quoted. The principal value and investment return of an investment will
fluctuate so that your shares, when redeemed, may be worth more or less than
their original cost. Performance does not include the effect of any fees
described in the fund's prospectus (e.g. short-term trading fees) which, if
applicable, would lower your total returns. Obtain performance data current to
the most recent month-end at www.usfunds.com or 1-800-US-FUNDS, option 5.
Foreign and emerging-market investing involves special risks, such as currency
fluctuation and less public disclosure, as well as economic and political risk.
Gold funds may be susceptible to adverse economic, political or regulatory
developments due to concentrating in a single theme. The price of gold is
subject to substantial price fluctuations over short periods of time and may be
affected by unpredicted international monetary and political policies. We
suggest investing no more than 3% to 5% of your portfolio in gold or gold
stocks.
Lipper Disclaimer: Lipper ratings for Total Return reflect funds' historical
total return performance relative to peers as of March 31, 2006. Although Lipper
makes reasonable efforts to ensure the accuracy and reliability of the data
contained herein, the accuracy is not guaranteed by Lipper. Users acknowledge
that they have not relied upon any warranty, condition, guarantee, or
representation made by Lipper. Any use of the data for analyzing, managing, or
trading financial instruments is at the user's own risk. This is not an offer to
buy or sell securities.
# # # # #