Q4 2020 U.S. Global Investors Inc Earnings Call
The broadcast is now starting all attendees are in listen only mode.
Good morning, and thanks for joining us today, our webcast and I think you X global investors results for fiscal year 2020, I'm Holly's young.
Before we begin today's presentation I'd like that for a brief nominates island to remember the lives lost on September 11 2001.
[noise] if you have any questions. During the webcast you can enter them in the question is area to control panel side part, which is normally to the right of your screen also you may download a PDF todays slides by clicking on the rent and outlet.
The presenters for todays program, our Francom U.S. global investors, CEO, and Chief Investment Officer, Lisa Callicotte, Chief Financial Officer, and myself, Holly Schoenfeld marketing and public relations manager.
During this webcast we may make forward looking statements about our relative business outlook any forward looking statements and all other statements made during this webcast that don't retained historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and corresponding form 10-K filing for mortgage.
Tail on factors that could cause actual results to differ materially from any described today and forward looking statements any such statements are made as of today any lift global except no obligation to update them in the future on flight for you'll see a quick overview of U.S. global Investor We are an innovative investment manner.
And your with vast experience in global market and specialized sector founded as an investment.
The following day nonstop.
So.
Lets jump into there's good news were within our strengths are we strive to do go to stock for exposure.
Emerging markets resources gold and digital is tosses or wage where we have found that arc stock was highly correlated as a company through our goal to us as a global resources of vendors emerging markets and then it was oh through a hyve investment so I'll comment on the digital currencies and now it appears to.
The airlines, because the Jesse job, which I'll talk about is our largest.
Yes.
So we have a strong balance sheet reflexive cost structure and a monthly dividend return on equity discipline.
The next visual one thing Eric voice funds have been long terms oil shareholders at Heartland Advisors Bill Nasgovitz originally came down in June to business in San Antonio.
In the Everything's is positioning our company financial investment Management Group, Paul Sutherland with.
Well, there's a long time and the very loyal so it's great to see the mid year, all along and Blackrock with or index, one and asset management business.
That's for the next one next Beijing.
For the past seven years.
We've consistently been paying a dividend monthly dividends. The yield is look so tiny what I can tell you is much higher than our money fund.
And.
And as the capacity to grow.
So let's talk over the next one next visual is the board approved to repurchase of up to 2.75 million of outstanding common shares from the open market. During the three months ended June Thirtyth. They tell me repurchased 32000 class a shares using cash of a modest $39000, which gives us a spend this change Jaime.
Deem necessary, but we've maintained this position that we buy in down days insert algorithms and again for the best interest as always is only when you get a big move on the downsize the algorithm picks up the stock.
So we've seen that.
Since the bottom end March those are dominated in drops on the upside.
You can say sands sister Jays either dermatoses.
Rescuing and we're seeing that markers are definitely skewing to a bias on the upside.
This next visual shows EU our quarterly.
And our management as you can see acts in the June quarter, our year end quarter, but the second quarter of this year for 2026, the fourth quarter for our year end.
We had a big surge in the owes us.
It's interesting to share with everyone is 1.2 billion for June Thirtyth. Since then we've gone through another billion dollar, so I think or lease or 2.2 billion.
Approximately.
This is easy for anyone to calculate.
I know some people just download everyday from Bloomberg and take a look at the overall asset size and that release for the next page because there are many of us or is that we know.
And I speak to et cetera. Thank Kevin Symposium cells, you look in the total assets as you will calculations and so basically when you have EPS. The average expense ratio, which is going to be revenue for us is 60 basis points, so $600000 of revenue.
Hi, annualized basis or 50000, a month comes in from having $100 million of assets and at the beginning of March that's basically the two Ats we had.
Be closer to $100 million, because there were all getting beaten up.
Coronado crisis.
And then that revenue coming to US was 600000 will now has over $2 billion assets.
And if we go to lower source of revenue our revenues up to up to 12 million on a run rate. Now. This is very volatile sensor recognize thats Airlines industries volatile gold ounces are volatile. So these numbers are involved so it doesn't give me the magnitude is it that revenue for the advisor visa for.
ETF business is a couple 20 fold.
From the lows and this is totally unexpected I'm trying to walk through unprecedented factors have taken place.
When you are saying got every day that.
Then investors discovered Jess and going you. We've always been presentations that goals are important asset class and is finding gone through 100 million units for the fact that.
Audience.
Ecosystem of investors and traders kamins adjusts raises the bar so.
Ill talk a little bit more natural this presentation. The next is the balance sheet strength on the balance sheet gets wins around.
Because of investments that we've tried to make long term, but at least some comments and questions come on it as a year ago Mark to market interpretation every quarter or long term investment is always going to be mark to market and this country best really increasing our volatility.
Our earnings statements.
The next stage is showing that the earnings per share for the last four.
Fiscal years and as you can see.
2000, 1920 in particular.
Going into this for Dol made from a lot of investments and it's nice to see so these investments are.
Really improved dramatically this summer.
In our company and their public at all we know we let people know investors that we made investments of Underberg Entertainment group, which is fantastic company, winning Emmys revenue growth as the Cogs or cash flow and if so inexpensive and is filing been recognized for instance, great positioning.
Especially during this lockdown more and more people need content entertainment and this is a company doing over and over 120 million in revenue.
And they started to.
The whole policy is also to look for dividends as a way to capture the hearts of investors and the discipline and turning for financial companies.
Next visual shows you that the earnings per share on a quarterly basis.
Which is a real shocker that we would have during cold it.
Go from losing money in basically too.
Profits going.
And a lot of that has to do with the.
Growth in Jess and goal you.
We've also been melon, making changes, which has been a really enduring experiences on trying to.
Mutual fund World and the ATM. Moreover, the only find like just the owning product out there and see only because the first of our smart beta to.
Tolland's as close as gold stock picking factors, we used and portfolio unique performing well structured and a recalibration every quarter. We said we need to have a product which was known US has one and we started this process on covering the homes fun into a luxury.
Mega trends change his name to US earlier wax. This provides investors access to companies around the world that are involved in the design manufacture steel products or services. There are not considered to be essentially what are highly desire with our cultural societies and it's interesting the largest holding there is been Tesla.
And the legacy shows up.
So again, it's an interesting to me there's a lot of consumer describes discretionary socks and staple stocks.
In this particular funds. So the next visual just wanted to walk you through the inventory restocking luxury during the Pandemics and so many investments like home depot Havana spectacular Ryan lows as competition lows itself is showing up in the IBT 50, as being a hot growth stocks, everyone stuck at home office.
I will start to notice change renovation seem to be done and those have had access to capital.
Iran drill families. They maybe start as being a lot of money contract workers working on homes were allowed to work through the pandemic. So the homes.
But the home depot parking lot and greater customer billing is lows and all those park and loss were packed so answers and get it gives you an idea that activity and thats what were thinking.
But I hope that this particular product I think will.
As a unique is the only place where you're going to give you a rig by high luxury goods as a products unless you go to Europe, which you can too, but the real exciting growth here as Josh just ATM.
It's just a spectacular growth.
Roles as assets and.
This is another visual showing this than in early March.
Bloomberg an interview with.
Eric.
And it was.
The cheapest EPS in the World, our Nigeria, and coal and Jets and the understood why no one wants to buy coal efourd or Nigeria, as being a country risk waterborne Jets and interim me. It was really fascinating to see the ecosystem of jets attracting.
Yes tactical traders.
All the millennials you could think us Robin Hood, an online and swab NPD water hose and Scott trade et cetera, and you also started the savings.
Those were shorting there, we're sorting American airlines, because it has a higher debt equity ratio, but the one to try to mitigate risk. So they were going long.
Yes.
And I got to me that was most blasting the watch and to see different dreesen and different people, making decisions about the airline industry and followed by 15% and the thought process early in the game was of the governments will do everything to support as part of the economy, because something like nine per se.
End of jobs in America are directly or indirectly related to the airline industry.
And they did.
So is now becoming a new serves sentiments on your but we're thrilled to share with you that the Jesse the quantum approach to smart Beta 2.0 has all performed the bogey. When we created this product was to beat the New York Stock Exchange Arca Global airline index, and we spend thousands of hours working.
Managing all these airlines did during prices of bankruptcies et cetera, what factors work the best and.
We've created a product that was both structural unique.
From waiting that related to how many were being flown across the countries to also the factors that are best are picking airline stocks and even after fees Jess outperformed the New York Stock Exchange was has no fees Arca Global airline index.
So this concept.
Of our smart beta or unemployment approach does work that's what's important for investors.
But there is no bass pro Formas no guarantee of future results, but we didn't know from our back dosing at a high probably workings touch wood silver fibers old and has done exactly what we thought it would do the next visual is important for anyone that has been trading the airlines I understand there is now our biggest asset class Asian.
In mid March TSH started publishing on the number of people in cleared the border commercial flight in the US and also people landing from abroad.
Was really interesting in.
The year ago I was on averaged 2.7 million people were traveling in America domestically was about 2 million people other than assumed was clearance and that a collapse in April just under 90000 people a day now when this data points are being published all those on one final started coming in and as another.
And part as you can see the 50 day moving average and every time it makes a new high on the daily number of people that just airline sentiment drives a higher so there's two things driving this sentiment and the volatility of the airlines industry. One is a vaccine.
And any positive news of vaccines and the airlines office on the surge and too is just a number of people that are clearing the travel.
And just last week on Fridays, a week ago was a new record highs since the March April lows early was April 14th only almost 12 million people were clears to fly.
I think there when we get to that 1 million people daily are flying that will be part of the servicers have taken place.
That will you will see higher prices now here is Eric on Conus and as you said in exchange traded funds attracting airlines become the honors theme and DTF history.
Organ hunting day traders from sites as revenue and taking the other side of the trade with one buffers, who recently sold a stocks.
As of the ATM has added 635 million over 45 straight days, Eric was tweeting about this spectacular growth in March and April and May.
On a regular basis because of this unprecedented growth that was taking place and and one of the things we notice as you can seeks.
Going on the next visual is as you said as you could say.
Yes, as you know I couldn't stay away forever is getting hotter again.
I guess with 200 million. It's just this month auto six with over 200 million after years in oblivion getting boost from rebounded returns is now 26% as bump unsold acceptance on warehouse platforms confuse the growth and that's an exponential thats one very very important for us the barriers to end.
Three to getting on these platforms becomes more and more difficult every year.
Used to be 50 million there was 100 million than it was 200 million each platform Wirehouse platform is different and when you goes with the Union basically quantifying for all of them and what the wire houses Anthony So careful ops is that.
Robert.
And each rate interactive brokers allow people to Treviso, among our clients, which is always an open an account at least on platforms and.
And whats interesting is for me ill talk a little more Robin Hood Robin Hood allow issue, there's a servicer largely look of the data how many people are buying into your EPS and there's so much negativity in all these millennials become indeed traders, but I share with you is that if you look before the airlines took in June.
Millennials as basic into on through Robin Hood, Hey, Ed.
I think was 25000.
Counts and bought jets so.
So that means there's huge surge off the bottom, which is I think a 50% from us lows.
As basically saying they made money and they make good money.
And so when I read all this negative stuff about how bad it is.
I see the opposite side of this trades, where they came in and a lot of these retail accounts made a lot of money.
But were happy for them and we're having for the industry, but most important is so good to have new investors coming in and price discovery. The last time I saw such huge retails influx wasn't a ninetys going into mutual funds. So now estimating.
Caption was imagination.
This is another growth points I understand the DNA volatility this impacts role as a shareholder enrollees and understands that sort of back that we own airline stocks and we own Golden gold stocks in the investments in high end does give us greater volatility.
And the Snps Volatilities is what the same as billion over one day 10 days, but big coin is five times greater.
And gold stocks are three times, greater and oil is five times greater and oil is important because oil is extremely volatile just like between any serious are but oil is a big is expensive the airline industry and as a reason why you get this.
Group of investors that go along the airlines when oil is falling NJ profits are short when oil is rising so because oil is a largest cost structure when looking at the airline industry. So this DNA of volatility from oil shows up in oil stocks I am sure and another we will start to show.
Was up and airline stocks as or cost factor.
The next visual is talking to a goal.
Inverse relationship between Golden real interest rates.
Im says shot nursing this morning that Europe's currency is stronger than the us because the highest concentration of negative real rates around the world is in Europe.
The us is still negative, but nothing compared to what Europe is.
They are below zero and raising money shocks me, but this is really driving a lot of interest in gold inflows into gold and the GLP have an unprecedented Anderson rational reasons I still see these talking as you know talk negatively vocals of asset class and they just don't like to hear that long term goal is up three times greater than the S&P.
So the reality is so there really is by always having a 715% weightings is always in the space, but he is always the exposure to gold and if it goes far outperformed the S&P by 100 Theres no doubt it as two is elfa equation.
And he is now Ray Daniels Bridgewater, Xcel largest hedge fund in the world.
And I remember when it first or talking about this in Vancouver, when the Golden Cross for those for 50 day crossed above that sort of thing moving average, which is usually a very positive technical sign of trends a long term trend for goals.
Mostly were bearish and we saw this in the first part of 2019, except port very smart hedge funds were regular talking about why goal is appealing drilled the fundamental reasons.
What was driving this moving goals, but as you can see here you can have big Downdrafts gold and using all but the 200 and moving average short term at Lincoln did back in April and then surgery back up.
And I believe that were in the secular for market. When I also believe more so than ever as you go. The next visual is we're a second bull market for gold stocks and gold stocks for the first time showing free cash flow yields as an industry was an end of March when the S&P went negative free cash flow yield and investors Jeff.
I was really like stocks that have a high free cash flow yields and this quarter for gold stocks in the September will have a record free cash flow yield so with that during the summer Berkshire Hathaway took a fiber 65 million imposition of Barrick gold.
We're sort of a big shocker, because well has always been negative on volte plenty bought a gold producer with free cash flow, but the Oracle all has always been right.
Quote I was $2 or realized I did nothing basis because of seasonal scali has.
And Bazell continues to impress every one of the scale that theyve grown and a lot of those using AI to make decisions. We're also seeing AI being used for Apple stores.
How they open to shut stores based on how that accrual viruses and in the area where their stores are.
So it's a new world that we live in and Quanta Mendelson fundamental investing what drives our ATM structure.
For both go away you and we're just is as I'm. So happy that we're in that that CEO of user quanta approach.
CNBC Asia, So isn't very long interview recently why gold reached $4000.
If you just look at the money printing presses other federal reserve in the EU.
Based on their balance sheet would happen in 2008 2009 three years later, how the price of going from 800 to $1900. So we use our plan is similar math suggests that goal to go to 4003 years, So smedes, saying, there's not a lenders because of the unprecedent money printing and zero.
Interest rates, and we're seeing real estate Americas up 10% year over year.
We're seeing in central outsourcing is going up 17%.
So I think that negative real interest rates is letting it I under the gold and Russell drill than our gold miners are going you cross above $100 million milestones starts as Rob free cash flow for us.
So where is only available is on the wireless platforms for Oppenheimer Janney RCM stable.
On online brokerage firms Robyn Holden trade interactive brokers enterprise Raymond James LPL satirical advisor group Commonwell Schwab Fidelity National financial T. water owes associate sellers have to one of our other investments we could launch an TTM space. So we became the largest cripple minor investor.
And we launched a high coal was basically with other friends I haven't Vancouver's high block chain technologies and it became the first institutional and retail.
Mining declining theory.
In this visual Sherri come back to look at it shows you that certainly has been driving a lot of is the crudele bear Windsor bottom with JP Morgan stop talking negatively but the industry because in February 2019 launch their own coins.
So we're at a bottom in flux there.
I think there are going to see this volatility has been going continues to rise in the goods were having last quarter of our year end and Thats had a big impacts and we're seeing that bitcoin ink is increasing and we're seeing.
Presentations being made at policies in Europe.
It wasn't coming out with a trip to digital currency. So I think that we're early on that space and what drives our biggest investment is in high block chains.
Xerium transaction days should not because of a new form of defined financing is extremely.
Volatile that's all I can tell you this whole space.
The more you is what high block chain allows us to mind Virgin coins untainted, no am l. or kyi see risks or issues. We mine. These coins. They are brand new speaking span clean coins and then we sell we mined them in the cloud we get Green energy from Sweden, We get Green.
As you Iceland, and then come back Canada remind them of the cloud and then go to our Wallets. In addition science.
And we sell.
And we keep a portion in hives balance sheets and the other part we use ocwen approach and we take profits to be our electricity bills points, Hi, clearly is a leader in this space.
Hi, this is.
A big biggest urea producers. So these recent surges in revenue and to give you an idea the run rate we have so easy to figure out at the end of March that topline can be just under $30 million and exploded to a high now is corrected but you can see it all of us a rental.
Run rate of 100 million now back to $60 million, we're still in the quarter is double so indeed that revenue from this business models very volatile the stocks are volatile that shows up in higher in us hold those investments as that volatility. So this is just some of the facts for you to understand the theory miners generate.
Good.
Sure fee revenue.
Because of a new development or device.
And hybrid so on the next visual showing that is on performance competition, both in price on liquidity.
Hi, the next as we're showing use as reported centers presenters time.
With the crypto currencies and then the next visual is showing use for your own information and go back and Logan Circle. The press releases and where we are as were building owned operations and cut backs, we're seeing lots a wonderful opportunities to have shown to us.
And we're updating our facilities filings on control of Iceland.
And we're expanding the operations there upgrading and expanding so it's a very sunsetting position for high now as we try to ramp down to us or key investments is thunderbird moves on to growing as revenue cash flow I show. This with earlier with the Emmys as you can see the started selloffs going into April they're big businesses.
MSR and Netflix in particular, so when Netflix is producing content a lot of this content for animation is done by Thunderbird and so they're topline revenue in their cash flow has been exploding.
And really now I think is waking up about how unique the stock is.
I think is above where the financing was IPO is a $2 isn't isn't.
Wonderful CAGR growth in both revenue cash flow on earnings and so I think you want to stay tuned to Thunderbirds is relative to peers is extremely undervalued revenue multiple or cash flow multiple and this is another showing congratulations underberg.
The board of Thunderbird, we have important investment Thunderbirds, but they want to many awards for.
In in Canadian said, Tom to the famous highway through Hell documentary you can watch these.
Weather stations in particular.
And now ill turn it over to the brains of the organization under some broad here and Lisa Callicotte RCM balls genetics addresses the financial metrics, but I want to make sure I give you an understanding of the fundamental factors driving and when she's going to talk about Lisa. Thank you Frank Good morning now.
And the results of operations from fiscal year 2020.
Beginning on page 43, we recorded total operating revenues and 4.5 million for the year, which is an increase in a million or 29% from the 3.5 million in fiscal year 2019.
The increase is primarily due to an increasing assets under management, primarily in our Gen FTD implants.
Operating expenses for the year were 6.99, an increase of 663000 or 11%.
Mainly attributable to an increase in general and administrative expenses relating to our Jesse Jackson somewhat offset by decrease in employee compensation and benefits.
We see our operating loss for fiscal year, 2020 is 2.4 million, which is an improvement from prior year loss of $2.8 million on slide 44, we see that other income over the last 2.2 million.
In fiscal year, and prior year and with a lot of 1.5 million.
Let me hand decreased 629000 compared to fiscal year 2019, primarily due to higher impairment losses insecurity and increases in foreign Secretary Latin.
Net income attributable the U.S.G.I. after taxes for the year. This 4.7 million, our last 31 cents per year, which decreased 1.39 compared to the net loss at 3.4 million Arla 22 cents per share in fiscal year 2019, but as noted on a previous slide our earnings per share west positive.
Fourth quarter as our fiscal year 2020 was mainly due to unrealized gains in security.
Moving to slide 0.6, the seems still had a strong.
Gee like includes approximately 13.4 million in cash and unrestricted security that combined to make at 71% of our total asset.
Slide 27 notes our liability.
One is likely you can see our stockholders equity.
The company had the networking capital 8.59, and a current ratio at 5.2 to one.
With that I'll turn it over to highlight thank you reset so as you can see on slide deck. The majority of our mutual fund assets are in emerging markets and natural recur again, 29% our end domestic equities and fixed income in Africa distribution more than three quarters of assets come from retailing that.
With 18% coming from institutional investors.
Our sales and marketing effort has continued to focus on our mutual funds, including now concentrated on gold natural resources and emerging market as well head our exchange traded.
The company and our clients continue to receive an invaluable and now viral publicity gain through media interviews Frank Holmes opt in share your insights with financial outlet break fact, taking a televisions Bloomberg radio and Kitco news just to name a view.
We continue to be recommendations by influential financial newsletter writers, well, Hello, sharing an indication and our award winning a radio content by third party publisher newsletter and have a loyal following and received millions of visitors each map.
Greenhouse CEO blonde frame cock continues to grow and popularity as well it's commentary on featured by prominent publications, including four seeking out that Cisco and equities dotcom with millions of monthly visitors.
Second is the biggest gold website in the world with an audience of over 30 million monthly visitors in partnership with the Street Dotcom continues to featured the gold games on share with Green Com gold market analysis.
Since the shared beginning 180, good Apoquel and Eric.
At quarter end, we'd like to look at the most visited green cockpit published over the past year.
Slide you won't be the can note related articles barring 2020 are as follows.
Number one exploring world Tim busiest airport number two if the gold rallying ever again directories that may come back and number three the U.S. companies at the high debt equity ratio right now and container three.
In our home page.
We are keeping a close eye on our top recurring web site at Bay drive enormous amount for traffic back to you.
So currently ADP guarantee completed three to one goal dotcom Kitco news and uptrend.
Hello, this coverage, helping leverage our brand by reaching millions of reader viewership and potentially factor our website <unk> dot com Reconfiguring over 411000 time from June 2019 to June 2020 by curious investors from all over the world.
You Exler working out there well known for kindly downlink and positive market insight and our thought leadership. The company has been awarded numerous Star Award by the investment management application Alliant over the year for excellence and Investor Education, and our total now stands at 88 Award.
Our subscriber base continues to grow organically and we currently have over 80000 curious in factory subscribed to our investment newsletter, and Frank Cock blog and metric and find out that you Atlanta awning join me subscribers to receive the award winning Investor Alert newsletter Frank.
We also continue to be in large following a crowd Oliver digital media platform to encourage you on check out not only on Facebook and Instagram They offline kindred Twitter and you too.
Speaking of you to our marketing team has really ramped up production of our video contents, we cover things ranging from gold airline to even investing begun making that you referenced dotcom and use the you tube iconic the comp rate quarter to visit our attitude paging subscriber.
Lastly, as the pandemic has changed the norm for many industries, including our own Green continued to share our current leadership.
Nimbly and a new format Gale 300 honor to begin again this year to the Albion May last month, and just next week you were going to prep presentation at again, both for him to.
These virtual presentation allowance to continue educating our loyal audience at a faster at 900 and shareholders. As you can see on slide here, just a quick snapshot anthem of the virtual hampering basically have been higher earned 2028, we expected to continue for quite some time Lilly Nokia China.
And as we wrap up today's presentation, we would like to obey adapt to question and just as a reminder, you can enter the questions and the control panel on your screen and you can offer to make question directly to at any time by emailing info at U.S. Dotcom, and we will be pulling up with all questions within a few days.
Yeah.
Just to start I had a question for free.
And then when do you see airline fully recovering.
Well I think that we have to get like I said earlier through a million people a day flying there will be tipping point.
So the sense psychologically, we're seeing a lot of airlines all those on cutting back on the number of employees.
They try to maintain them because I was told and told them. The money was driven by the government was to keep them employees are they didn't have to retire them, because we hire them and the retrain them.
From day, one answers regulated world. The S.A., so is better keep everyone being paid even though they weren't slides. So they can turn on a dime.
What's interesting on this cycle is that when we look at 911.
When the World. This shutdown flying also what it was much shorter time period like a week.
Six months later, the airline industry was up 80% and then a couple of years after 2003, Sars broker folks in Asia and after in bottom six months later the airlines in Asia were up 120% and we look at the financial crisis of 2008 nine that bottom.
Six month, there was an 80% so the thought process for a lot of speculators is that the airlines conservative between 80% to 120% I don't think is going to happen as fast over six months I think is probably going to take 12 months from this lows.
But I have recently is long and the planes spotless.
Almost fumigating that takes place every flight.
It is a game changer for me to witness seats as spacing on Delta The airport in Ball Park City is very in Salt Lake City and as Antonio.
Was quiet through a fair amount of people must still very quite disappointing and and very very clean going through the TSH as a brand new experience.
With all the cover in protections, taking place and we're going to see like we've seen or Turkey in Houston, or some public company, which you own one of our.
Which we own in our area and also on our eastern European pardon.
They are the most advanced in using heat maps and using you need to screen to clean all credit cards and passports. So you go to use your credit card or your driver's license or your passport and it goes through a scanning process from your hands will you be and destroy the viruses.
I think that we're going to see more and more technology that way taking people's temperatures. So.
Something also doing engine in different locations. So we're going to happen once in a world Thats one thing I do see a note I think that they're going to use AI going forward too.
Shutdown areas, rather shut down a whole country and weaponized metropolitan political election years Eccentrics and this year as an election you ask as we live in the US we deal with more than ever weather's may elections around the world and so this overall myers things become weaponize for political.
Winning and is on that I think is disturbing in many ways prevention reality events, and we're going to get through them rather than shutdown a country, you're going to like Apple stores do losses shutdown, a store near 10% even during the shutdown one because most of traffic is from a facility where.
Philosophy ballpark banks, and they're getting the cone buyers.
And I think we're going to see that data is going to improves we notice here in San Antonio then everyone was in 150 mile radius against the couple of hours and San Antonio's hospitals, and you get retention again, so now we get double testing if friends of mine. It has to go to Houston.
For in the Anderson and MD Anderson would not except the Corona virus testing done here and again there to get tested at week 24 hours or you're going to get medical treatments. So we're seeing Dana just being replicating the how much is really reflecting on that I think while others are on get cleaned up our collection in the.
Yes this year.
As a matter who wins is going to be as this is no longer factors that will help the airlines is a very important part of the sentiment to drive and I think the each for the people flying today are going to get benefits is not going to be till April next year, where they're going to start charging for exchange fees for changing of seeds.
And your ticket, they're going to do everything that get you to fly.
Great. Thank you retain a question for you as well can you discuss more detail of African Crane earnings per share and how much was related to the increase inject asset.
Yes, so that 10 cents per share was mainly due to our.
An increase in unrealized gains in our security and we've been talking about that a few years ago and with the required to emblem needs.
Accounting standard that.
Need asked record all of our unrealized gains and losses through income where before our long term investments were being recorded your equity and only in income we realized them and so.
So we've been talking about how that really caused our.
We intend to be volatile began accordingly, we are recording that all three of our income statement and for the quarter ending June 30, yet we saw an increase in the investments that we are encouraged and that and was the main contributor to the 10 cents per share that we record answer in June thirtyth corner and.
Hi, there as far as where Jan you win can then that really hit our revenue line item and so we saw significant increase in our revenue in the quarter ending June 30, now how it works for assay that we do get 60 beef that Frank I talked about earlier, but we also pay all the expenses related.
To that.
So with that so many expenses are based on he will increase and you and increases last we have some distribution costs.
Relating to involve an engineer we had inflows during that quarter that did increase our extensive until there is and distribution happened like one time costs and so we were seeing that then in the fourth quarter net operating loss actually improved from the quarter before.
The quarter ending March 30, and we had a operating loss at 979 boundaries and there was a 75% improvement that you did increase in revenue and a land to allow for 245000 in the fourth quarter, the kind of looking into that future. We do expect that having a high.
Higher and you add them for an entire corner is going to increase our revenue and it only going to be somewhat offset by the higher.
Well there is much bigger front end expenses in the first.
Going from the first half a billion dollars definitely yes, and since then is is totally changed profit margins expand yes.
Substantially from.
For having $500 million.
Alan.
Great. Thank you Lisa brink. Another question for you really quick do you think the delay U.S. could take off an alien gentleman. Jack did this year is much more competitive because people that want to speculate by the triple double triple there.
The leveraged Epsilon GDX Judea exchange, the 30% of the assets in those large lord much larger ABTS ARX <unk> market cap weighted.
Plans.
And.
So you'll see that more speculative I think was going to happen is a steady Eddie purses doing asset allocation, there's just not kind of by national money's going into construction buys Fox you by just a big index.
I think that we're seeing as a deeper shifting out and going into going to you because each quarter, we throw out.
And get rid of all the weeds and the guard every quarter. So any company that impairs or hurts. The revenue last quarter report cars and cash allows for four quarters drops in their castle returns on invested capital against our peers.
We don't want.
Just to be very and is a much smaller portfolio rather than having 70 names in an effort on hold index.
We had 28.
And we had the highest concentration and royalty companies. So we recently had money comes from a family office overseas and it's all because of our exposure for royalty companies that they really like that.
Hello, and by buying go you really getting exposure to a superior business model.
I think is there anything else you are linked to add the fairly rapid yes, but overall the mutual funds themselves.
Continually just as an industry.
Not experienced any great growth, we're hoping that re positioning luxuries being the only luxury products that will be able to grow without because I also think theres going to continue to be rigs are you industry likes the cost close of the world versus the dollar store.
And.
Higher end from Louise and Tom onto Tesla onto Ferrari.
The receipt of accompanies our unique in their growth and the resiliency.
But it doesn't take away from the Volatilities, but I think being the only space and player in that space.
The year from now we should viewing experience some roles in that.
And we're working on other ideas for EPS.
Where we are on the dominant person and there is no one else the space. It's really important when you try to come ongoing you Michael We've got 400 million.
You again, so many of them airseal there.
Happy about that is going to slugging, what investors realizes that the timeline and taexx tubes to have just it took five years. We did over 20 webcast. This webcast are costing US you know from our own and other partnerships. We have 120 year in just buying that space and time, excluding the.
Marketing efforts, we put into them.
And it is five years when we launched.
Eastern European funds, a quickly when the 12 million.
Russia defaulted on their sovereign debt unheard of.
Ill the sudden it was $4 million and stay there for four years until the bottom of 2001 and then in March 12, two over a billion dollars on assets. So you can you just had to have the the vision and the same time, the persistence and building the brand like James.
And now go you go goal.
We'll continue I think two to do well for asset allocators.
And it gives us a less volatile.
The gold equity space in the other ones around there.
Great. Thank you great Alright. This concludes U.S global investors webcast for fiscal year 2020. This presentation will be available on our website at Usnine dotcom. Thank you all for your participation.
[music].