Company Successfully Transitions and Streamlines Operations
Net income for the same quarter of the previous year was
Average assets under management were
“There have been starts and stops in the markets, but no sustained positive global trend,” says Holmes. Global real GDP growth peaked in 2010 at 5.2 percent, then slowed for the next three years, to 3 percent. Global growth in 2014 is likely to accelerate, for the first time in four years, to 3.5 percent, according to ISI. Global industrial production is also pointing to global growth acceleration. “Historically, our funds’ performance has been highly correlated with global growth trends, which appear to be turning up,” says Holmes.
This has been a transitional fiscal year for the company as it accomplished strategic objectives in simplifying its operations and product lineup. Those changes required expensive and time-consuming legal and regulatory processes. “The costs of change are mostly behind us and operating expenses decreased significantly in the third quarter due to the company’s ongoing efforts to streamline costs and operations,” says Holmes. “Our organization is lean and nimble, our product line is streamlined and our focus is on our core competency of money management.”
The company has made significant strides in developing new exchange-traded fund (ETF) products that the company is planning to launch in 2014. ETFs have seen tremendous growth in assets and market share as more investors and their financial advisors turn to this investment vehicle. “We are excited about competing in this high demand space with innovative and dynamic ETF products,” said Holmes.
“I’m pleased for U.S. Global to be in partnership with a growing and high-performing Canadian asset manager,” says Holmes. “Galileo’s flagship fund continues to be highly rated by Morningstar for its long-term track record of solid performance and managed risk.”
Share Repurchase Program, Continued Strong Balance Sheet, and Monthly Dividends
The company continued repurchasing outstanding stock in the third fiscal quarter totaling 35,065 class A shares using cash of
The change in cash and cash equivalents compared to
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 six years.
During 2013, commodities experienced a turbulent year, with gold posting its first annual decline since 2000 and gold equities declining for a third year in a row, as measured by the Philadelphia Gold & Silver Index (XAU). “There were only three times in three decades that gold stocks had a losing streak of three years,” says Holmes. Additionally, in 2013 investors shifted out of the energy sector and emerging markets as they underperformed the U.S. market.
In the spectacularly performing domestic equities market of 2013, the energy sector lacked some of the outstanding performance seen in other sectors, but recently energy has turned up and outperformed the S&P 500 Index, catching the attention of the market again. This bodes well for the company’s
One reason the energy sector is climbing back to the top could be due to the broader market rotation taking place recently, from growth stocks to value stocks as some investors view the valuations of growth names as too high.
“Our portfolio managers stay focused on high quality companies that demonstrate robust fundamentals at reasonable prices, in the top sectors experiencing positive momentum,” says Holmes. The funds’ investment models are designed to anticipate and adapt to changes, recognizing strengths and weakness in specific sectors and countries. “We’re pleased our models were able to help our domestic equity funds, the
Earnings Webcast Information
The company has scheduled a webcast for
Selected financial data (unaudited):
|Three months ended|
|Operating Income (Loss)||(415,267||)||214,666|
|Other Income (Loss)||403,299||(16,081||)|
|Income (Loss) from Continuing Operations Before Income Taxes||(11,968||)||198,585|
|Income (Loss) from Continuing Operations||(26,063||)||115,627|
|Loss from Discontinued Operations (net of tax)||(1,916||)||(74,460||)|
|Net Income (Loss)||$||(27,979||)||$||41,167|
|Net income (loss) per share from continuing operations (basic and diluted)||$||0.00||$||0.01|
|Net loss per share from discontinued operations (basic and diluted)||0.00||$||(0.01||)|
|Net income (loss) per share||$||0.00||$||0.00|
|Avg. common shares outstanding (basic)||15,454,932||15,490,020|
|Avg. common shares outstanding (diluted)||15,454,932||15,490,020|
|Avg. assets under management (billions)||$||1.0||$||1.6|
With an average of
Forward-Looking Statements and Disclosure
This news release and other statements by
These filings, such as the company’s 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 |
|S&P 1500 Composite Index||22.01||%||21.62||%||7.74||%||NA||NA|
|S&P 500 Index||21.86||%||21.16||%||7.42||%||NA||NA|
Expense ratios as stated in the most recent prospectus. The expense ratio after waivers is a voluntary limit on total fund operating expenses (exclusive of any acquired fund fees and expenses, performance fees, taxes, brokerage commissions and interest) that
Please consider carefully a 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
The Galileo Mutual Funds are not offered for sale in
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The S&P 1500 Composite is a broad-based capitalization-weighted index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500, and the S&P 600. The Philadelphia Gold and Silver Index (XAU) is a capitalization-weighted index that includes the leading companies involved in the mining of gold and silver.