UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 2015
U.S. GLOBAL INVESTORS, INC.
(Exact name of registrant as specified in its charter)
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Texas |
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0-13928 |
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74-1598370 |
(State of other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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7900 Callaghan Road, San Antonio, Texas |
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78229 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: 210-308-1234
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On May 14, 2015, U.S. Global Investors, Inc. issued a press release reporting earnings and other financial results for the quarterly
period ended March 31, 2015. A copy of the press release is attached and being furnished as Exhibit 99.1.
Item 9.01 Financial Statements
and Exhibits
Exhibit 99.1 Press Release issued by U.S. Global Investors, Inc. dated May 14, 2015, reporting earnings
and other financial results for the quarterly period ended March 31, 2015.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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U.S. Global Investors, Inc. |
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By: |
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/s/ Lisa Callicotte |
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Chief Financial Officer |
Dated: May 18, 2015
Exhibit 99.1
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Contact: Susan Filyk
Public Relations 210.308.1286
sfilyk@usfunds.com |
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For Immediate Release
U.S. Global Investors Reports Financial Results for the Third Quarter of 2015 Fiscal Year
Company Launches First ETF Product
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SAN ANTONIOMay 14, 2015U.S. Global Investors, Inc. (NASDAQ: GROW), a boutique registered investment advisory firm with
longstanding experience in global markets and specialized sectors, recorded a net loss of $1.01 million or ($0.07) per share, on operating revenues of $1.83 million for the quarter ended March 31, 2015.
Net loss for the same quarter of the previous year was $28,000, or ($0.00) per share, on operating revenues of $2.74 million.
Average assets under management, including SEC-registered funds, Galileo funds and offshore clients, were $818 million for the quarter ended March 31,
2015, compared to an average of $978 million for the same quarter a year ago. Total assets under management were $785 million as of March 31, 2015, versus $959 million at March 31, 2014.
Challenges of a Strong Dollar
Emerging markets have
suffered bigger net capital outflows over the latest three quarters than during the 2008-2009 financial crisis. The strongest dollar in forty years is hurting foreign countries and emerging markets have been hit the hardest, stifling worldwide
economic growth and demand for commodities. This slump continues to hurt our resource-based and emerging market funds, which impacted our revenues. We are not alone in experiencing the squeeze of the strong dollar. The dollars surge has also
reduced reported earnings at many blue-chip American companies from Caterpillar to Tiffany, says Frank Holmes, U. S. Global Investors CEO.
An
Antidote to Volatile Markets
While the equity markets have been volatile, our Near-Term Tax Free Fund (NEARX) has demonstrated positive returns
every year for the past two decades, providing investors and financial advisors steady past performance with tax-free income. Out of 25,000 equity and bond mutual funds, only 30 of them have had positive returns for 20 years in a row. We are proud
that NEARX is one of the few, says Holmes. The fund has experienced modest growth in assets this quarter.
3QFY15 earnings, Page
2
May 14, 2015
Launch of Companys First Smart Beta ETFThe Only Airline ETF
U.S. Global Investors rang in a new era for the company with the launch of its first exchange-traded fund, U.S. Global Jets ETF, on April 30, 2015. The
smart-beta index fund focuses on the airline industry and trades on the New York Stock Exchange under the ticker JETS. U.S. Global Investors recognized the airline industrys significant restructuring in recent years had contributed to the
industrys financial success and had stoked demand from investors. The airline industry has experienced a rise of 287% over the past three years ended April 1, 2015, making it the best performing industry within the industrials sector. As
the only airline-focused ETF presently available to investors, the product positions the company to grow assets under management.
ETFs are vital to
U.S. Globals future growth. Ten years ago ETF assets in the U.S. were at $228 million. Today they top $2 trillion and show no signs of slowing. Investors are increasingly demonstrating a preference for ETFs over mutual funds. Thats why
we have invested considerable time, effort and resources to launch this new product line. The landscape for ETF marketing, distribution and operations is quite different than mutual funds. says Holmes. The company plans to expand its ETF
product offerings in 2015.
Share Repurchase Program, Strong Balance Sheet, and Monthly Dividends
The company continued repurchasing outstanding stock in the third fiscal quarter totaling 19,245 class A shares using cash of $60,000. The company is using an
algorithm to purchase shares on down days, following the rules and regulations that restrict the amounts and times when shares can be purchased on any given day, such as at the opening of the day and in the last half-hour of trading. The share
repurchase plan is set to expire at the end of calendar year 2015 but may be suspended or discontinued at any time.
As of March 31, 2015, the
company had net working capital of approximately $21.1 million. Cash and cash equivalents totaled $3.7 million and marketable securities totaled $20.7 million as of the end of the quarter.
In addition, the company has had no long-term debt since 2004 and owns its headquarters building. The company has also continued to pay monthly dividends for
more than seven years. A monthly dividend of $0.005 per share is authorized through June 2015 and will be reviewed by the board quarterly.
Earnings
Webcast Information
The company has scheduled a webcast for 7:30 a.m. Central time on Friday, May 15, 2015, to discuss the companys key
financial results for the quarter. Frank Holmes will be accompanied on the webcast by Susan McGee, president and general counsel, and Lisa Callicotte, chief financial officer. Click here to register for the earnings webcast or visit
www.usfunds.com for more information.
3QFY15 earnings, Page
3
May 14, 2015
Selected financial data (unaudited) (dollars in thousands, except per share data):
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Three months ended |
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3/31/2015 |
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3/31/2014 |
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Operating Revenues |
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$ |
1,831 |
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$ |
2,742 |
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Operating Expenses |
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3,049 |
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3,157 |
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Operating Loss |
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(1,218 |
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(415 |
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Total Other Income |
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249 |
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403 |
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Loss from Continuing Operations Before Income Taxes |
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(969 |
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(12 |
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Tax Expense |
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25 |
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14 |
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Loss from Continuing Operations |
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(994 |
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(26 |
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Loss from Discontinued Operations (net of tax) |
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(2 |
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Net Loss |
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$ |
(994 |
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$ |
(28 |
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Less: Net Income Attributable to Non-Controlling Interest |
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13 |
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Net Loss Attributable to U.S. Global Investors |
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$ |
(1,007 |
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$ |
(28 |
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Loss per share (basic and diluted) |
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$ |
(0.07 |
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$ |
0.00 |
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Avg. common shares outstanding (basic) |
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15,379,365 |
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15,454,932 |
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Avg. common shares outstanding (diluted) |
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15,379,365 |
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15,454,932 |
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Avg. assets under management (billions) |
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$ |
0.818 |
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$ |
0.978 |
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About U.S. Global Investors, Inc.
The story of U.S.
Global Investors goes back more than 40 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment advisor that focuses on niche markets around the world. Headquartered in San
Antonio, Texas, the company provides money management and other services to U.S. Global Investors Funds and other international clients.
Please
consider carefully a funds investment objectives, risks, charges and expenses. For this and other 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. U.S. Global Investors Funds are distributed by U.S. Global Brokerage, Inc.
Forward-Looking Statements and Disclosure
This news release and other statements by U.S. Global Investors may include certain forward-looking statements including statements relating to
revenues, expenses and expectations regarding market conditions. You can identify these forward-looking statements by the use of words such as outlook, believes, expects, potential,
opportunity, seeks, anticipates or other comparable words. Such statements involve certain risks and
3QFY15 earnings, Page
4
May 14, 2015
uncertainties and should be read with corporate filings and other important information on the companys website, www.usfunds.com, or the Securities and Exchange Commissions
website at www.sec.gov.
These filings, such as the companys annual report and Form 10-Q, should be read in conjunction with the other
cautionary statements that are included in this release. Future events could differ materially from those anticipated in such statements and there can be no assurance that such statements will prove accurate and actual results may vary. The company
undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.
Total Annualized Returns as of 3/31/15
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One-Year |
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Five-Year |
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Ten-Year |
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Gross Expense Ratio |
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Expense Cap |
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Near-Term Tax Free Fund |
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2.38 |
% |
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2.59 |
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3.10 |
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1.08 |
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0.45 |
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Expense ratio as stated in the most recent prospectus. The expense cap is a contractual limit through April 30, 2016,
for the Near-Term Tax Free Fund, on total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest). Performance data quoted above is historical. Past performance is no
guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees
described in the funds prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at
www.usfunds.com or 1-800-US-FUNDS.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise. Though the
Near-Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that the credit quality of a portfolio holding could decline, as well as risk related to changes in the economic conditions of a state, region or issuer.
These risks could cause the funds share price to decline. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local taxes and at times the alternative minimum tax. The Near-Term Tax Free Fund may
invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes.
The Galileo Mutual Funds are not offered for sale in the United States. They are represented across Canada by independent financial advisors.
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