U.S. Global Investors, Inc. reported a challenging fiscal quarter ending September 30, 2024, with significant declines in operating revenues and profitability compared to the same period in the previous year. Operating revenues for the three months totaled $2,157,000, a decrease of 31.2% from $3,133,000 in the prior year. This decline was primarily attributed to a drop in advisory fees, which fell to $2,127,000 from $3,103,000, largely due to lower average assets under management in exchange-traded funds (ETFs).

The company experienced an operating loss of $559,000, contrasting with an operating income of $215,000 in the same quarter of 2023. However, U.S. Global Investors reported a net income of $315,000, a notable improvement from a net loss of $176,000 in the prior year. This shift was supported by a significant increase in total other income, which rose to $995,000 from a loss of $456,000, and a positive net investment income of $917,000 compared to a loss of $513,000 in the previous year.

Total assets under management decreased to approximately $1.5 billion, down from $1.8 billion a year earlier, reflecting a decline of $208.9 million. The average assets under management for the quarter also fell to $1.5 billion from $2.1 billion in the same period of 2023. The company’s investments in trading securities at fair value increased slightly to $9,713,000 from $9,644,000, while investments in available-for-sale debt securities decreased to $3,742,000 from $4,414,000.

On the balance sheet, total assets as of September 30, 2024, were $51,084,000, down from $51,963,000 at the end of the previous quarter. Total liabilities also decreased to $2,717,000 from $2,957,000, while total shareholders’ equity fell to $48,367,000 from $49,006,000. The company maintained a strong current ratio of 21.0 to 1, indicating solid liquidity.

In terms of strategic developments, U.S. Global Investors continued its share repurchase program, buying back 197,887 class A shares for $520,000 during the quarter. The company also declared a monthly dividend of $0.0075 per share, expected to total approximately $309,000 for the upcoming quarter.

Overall, while U.S. Global Investors faced revenue challenges and a decrease in assets under management, it managed to achieve a positive net income and maintain a robust liquidity position.