SAN ANTONIO, Sept. 1, 2022 (GLOBE NEWSWIRE) — US Global Investors, Inc. GROW (the “Company”), a registered investment advisory firm with significant experience in global markets and specialized sectors ranging from gold to airlines, is pleased to report financial results for the year ended June 30, 2022.
For the 12-month period, total operating income was $24.7 million, up 14% year-on-year (YOY). Operating income was $11.1 million, a 36% increase over the prior year. Operating margin was 45%, up from 38% in fiscal 2021.
As of June 30, 2022, the Company had net working capital of approximately $33.9 million, an increase of 57% from June 30, 2021. With approximately $22.3 million in cash and cash equivalents and 13.8 millions of securities held at fair value excluding convertible securities, the Company has sufficient liquidity to meet its ongoing commitments.
“This year we have built our cash position, which we believe is prudent and prudent to weather a potential economic downturn and be opportunistic in seeking attractive acquisitions,” said CEO and Chief Investment Officer Frank Holmes.
Net income was $5.5 million, or $0.37 per share, compared to $32.0 million a year ago, or $2.12 per share. Mark-to-market volatility made a significant contribution to the decline in net income. The Company reported lower realized gains and unrealized losses on investments for the year to date compared to higher realized and unrealized gains on investments in fiscal 2021. Mark-to-market is an accounting practice in which the value of an asset is adjusted to reflect its value Value reflecting determined by current market conditions. Market value is determined based on what a company would get for the asset if it were sold at that point in time. Therefore, mark-to-market losses are paper losses incurred on an accounting entry rather than the actual sale of a security.
In fiscal 2022, average assets under management (AUM) were $3.9 billion, up 18% from $3.4 billion…
