-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CUWi0TvM600lRJDNDfN3/IzJOZRihoPYqNuG2UI52IrLptA1h9Mi5NrgPySd2Ory xDVlb4NxRCDrUSnmvgprLA== 0000754811-06-000067.txt : 20060908 0000754811-06-000067.hdr.sgml : 20060908 20060908092516 ACCESSION NUMBER: 0000754811-06-000067 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060630 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20060908 DATE AS OF CHANGE: 20060908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: U S GLOBAL INVESTORS INC CENTRAL INDEX KEY: 0000754811 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] IRS NUMBER: 741598370 STATE OF INCORPORATION: TX FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-13928 FILM NUMBER: 061080472 BUSINESS ADDRESS: STREET 1: 7900 CALLAGHAN RD CITY: SAN ANTONIO STATE: TX ZIP: 78229 BUSINESS PHONE: 2103081234 MAIL ADDRESS: STREET 1: 7900 CALLAGHAN ROAD CITY: SAN ANTONIO STATE: TX ZIP: 78229 FORMER COMPANY: FORMER CONFORMED NAME: UNITED SERVICES ADVISORS INC /TX/ DATE OF NAME CHANGE: 19950321 8-K/A 1 r8ka-0606.txt FORM 8-K/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): September 8, 2006 U.S. GLOBAL INVESTORS, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Texas 0-13928 74-1598370 - -------------------------------------------------------------------------------- (State of other juris- (Commission IRS Employer diction of incorporation) File Number) Identification No.) 7900 Callaghan Road, San Antonio, Texas 78229 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 210-308-1234 - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 2.02 Results of Operations and Financial Condition. On September 8, 2006, U.S. Global Investors, Inc. issued a press release reporting earnings and other financial results for its fiscal year ended June 30, 2006. A copy of the press release is attached and being furnished as Exhibit 99. 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. U.S. Global Investors, Inc. By:/s/ Catherine A. Rademacher --------------------------- Catherine A. Rademacher Chief Financial Officer Dated: September 8, 2006 EX-99 2 ex99a.txt PRESS RELEASE FOR FYE 06/30/2006 EARNINGS Contact: Terry Badger Director of Communications 210.308.1221 tbadger@usfunds.com (USGI LOGO) For Immediate Release U.S. Global Investors attains record earnings in FY 2006 Revenue rises 164%, net income up more than sevenfold compared to 2005 ************************************************************************ SAN ANTONIO--Sept. 8, 2006--U.S. Global Investors, Inc. (NASDAQ: GROW), a boutique registered investment advisory firm, today reported that its fiscal year 2006 revenue rose 164 percent and its earnings grew more than sevenfold compared to the previous fiscal year. The company recorded net income of $10.44 million, or $1.38 cents per diluted share, on revenue of $44.85 million for the 12 months ended June 30, 2006. That compares to earnings of $1.45 million, or 19 cents per diluted share, on revenue of $16.98 million during the fiscal year ended June 30, 2005. For the fourth fiscal quarter, U.S. Global posted net income of $5.62 million, or 74 cents per diluted share, on revenue of $18.96 million. The company earned $350,000, or 5 cents per diluted share, on revenue of $5.03 million during the final three months of fiscal year 2005. The growth in revenue and earnings is mostly due to fee increases associated with the substantial rise in assets under management. U.S. Global's average mutual fund assets grew 94.1 percent during the year, most of that coming in the natural resources and emerging market sectors. In addition, the company expanded its outside advisory services. "Performance drives new accounts and new assets, and this is where we generate our revenue and earnings," says Frank Holmes, chief executive officer and chief investment officer at U.S. Global Investors. "The bottom line is performance. At the end of the fiscal year, 86 percent of our mutual fund assets were in funds that carried a 4-star or 5-star rating from Morningstar." The company has scheduled a conference call for 10 a.m. Central time today to discuss the company's key financial results. Mr. Holmes will be accompanied on the call by Susan B. McGee, president and general counsel, and Catherine A. Rademacher, chief financial officer. The financial results included in this release are unaudited. BDO Seidman, LLP is now finishing its audit of the company's fiscal year 2006 financial statements and internal controls over financial reporting at June 30, 2006. U.S. Global Investors expects that the auditors will complete their work early next week, and that the company will file its audited Form 10-K annual report for fiscal year 2006 with the Securities and Exchange Commission on or before September 13, 2006. U.S. Global's mutual fund assets under management stood at $4.44 billion as of June 30, 2006, more than double the $2.13 billion under management on June 30, 2005. The company also had $201.2 million under management for other advisory clients. During the fourth quarter, the company averaged $5 billion in total assets under management. During the 2006 fiscal year, U.S. Global earned $7.06 million in fees for its role in providing advisory services to Endeavour Mining Capital Corp., a merchant banking company that invests in the natural resources sector. The amount earned by U.S. Global included a $6.61 million annual performance fee. For the year ended June 30, 2006, the company also earned $1.57 million in fees for providing advisory services to other offshore funds. Selected financial data (unaudited) for the year ended June 30 2006 2005 Revenue $44.85 million $16.98 million Expenses $28.99 million $14.74 million Tax expense $5.43 million $0.79 million Net income $10.44 million $1.45 million EPS (basic, in dollars) $1.39 $0.19 EPS (diluted, in dollars) $1.38 $0.19 Working capital $18.28 million $7.08 million Total assets $29.05 million $12.10 million Net cash from operations $5.46 million $0.99 million Net cash from investing $0.27 million ($0.07 million) Net cash from financing $0.52 million $0.06 million Basic weighted avg. shares outstanding 7.52 million 7.48 million Diluted weighted avg. shares outstanding 7.57 million 7.56 million Avg. mutual fund assets under mgmt $3.44 billion $1.77 billion An unaudited income statement can be found on the final page of this release. As of June 30, 2006, the U.S. Global Investors fund family had several funds among the leaders in 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. For the first six calendar months of 2006, U.S. Global's Gold Shares Fund (USERX) was the top-performing gold fund and the company's World Precious Minerals Fund (UNWPX) was #2. In the natural resources sector, the Global Resources Fund (PSPFX) is ranked #1 for the same period. In the year ended June 30, 2006, the Gold Shares Fund was ranked #2 and World Precious Minerals Fund #3 in total return among all domestic funds, according to Lipper. For the five years ended June 30, 2006, the World Precious Minerals Fund ranked #1 in total return among all domestic funds. The Gold Shares Fund was #3, U.S. Global's Eastern European Fund (EUROX) was #4, and the Global Resources Fund (PSPFX) was #5. No other fund family had more than one fund in Lipper's top 25 for the five-year period. As of June 30, 2006, according to Lipper, the World Precious Minerals Fund ranked #3 of 54, #1 of 48, #1 of 39, and #14 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, #2 of 48, #2 of 39 and #23 of 24 among gold-oriented funds for the 1-, 3-, 5- and 10-year periods. The Eastern European Fund ranked #26 of 200, #1 of 177 and #2 of 140 among emerging-market funds for the 1-, 3- and 5-year periods. The Global Resources Fund ranked #16 of 101, #1 of 74, #1 of 69 and #12 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 an average of $5 billion in assets under management in the quarter ended June 30, 2006, U.S. Global Investors includes 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 June 30, 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. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating(TM) based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) U.S. Global Investors, Inc. Unaudited Consolidated Statements of Operations and Comprehensive Income
Year Ended June 30, 2006 2005 2004 Revenue Investment advisory fees $37,143,150 $14,006,508 $9,179,200 Transfer agent fees 5,332,066 3,187,487 2,610,029 Investment income (loss) 2,203,393 (351,248) 1,023,441 Other 174,979 138,592 170,830 ----------- ----------- ---------- 44,853,588 16,981,339 12,983,500 ---------- ---------- ---------- Expenses Employee compensation and benefits 10,359,365 5,891,162 4,985,449 General and administrative 5,460,442 3,821,129 2,622,773 Subadvisory fees 7,618,466 2,719,603 1,018,572 Omnibus Fees 4,882,144 1,833,096 959,523 Advertising 513,076 369,927 373,492 Depreciation 152,755 109,899 108,065 Interest -- 81 73,145 ------------- ------------- ---------- 28,986,248 14,744,897 10,141,019 ---------- ----------- ---------- Income Before Income Taxes 15,867,340 2,236,442 2,842,481 Provision for Federal Income Taxes Tax Expense 5,431,978 789,971 675,839 ---------- ---------- --------- Net Income 10,435,362 1,446,471 2,166,642 Other comprehensive income, net of tax: Unrealized gains (losses) on available-for-sale (2,473) (142,745) 646,244 securities arising during period Less: reclassification adjustment for gains (363,596) (102,287) included in net income ---------- --------- --------- Comprehensive Income $ 10,069,293 $ 1,303,726 $ 2,710,599 ============ =========== =========== Basic Net Income per Share $ 1.39 $ 0.19 $ 0.29 ======== ======== ======== Diluted Net Income per Share $ 1.38 $ 0.19 $ 0.29 ======== ======== ======== Basic weighted average number of common shares 7,515,789 7,479,998 7,469,164 outstanding Diluted weighted average number of common shares 7,573,115 7,564,269 7,533,134 outstanding
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