Q4 2024 U.S. Global Investors Inc Earnings Call
We're looking statements any such statements are made as of today.
Globally.
No obligation to update them in the future.
And on the next slide.
As always we would love to offer England zoomed into today, one of our jet.
Or are you or Fiat.
Speaker Change: All you have to do is that's an email with your physical mailing address.
Speaker Change: And can send that to info at U S funds dotcom.
On the next slide I will briefly review our company.
Speaker Change: Global investors is an innovative investment manager with vast experience in global markets and specialized sectors.
Speaker Change: Use of continental strategy to create smart beta two <unk> products. The company was originally founded as an investment, but becoming a registered investment adviser in 1968.
Speaker Change: The company has a longstanding history of global investing and launching first of their kind investment products in kingdom.
Speaker Change: Oh gosh.
Speaker Change: Okay. Thank you.
Speaker Change: So resources airlines and luxury.
Speaker Change: On next slide.
Speaker Change: Just a little bit more about us for a new <unk> and <unk>.
We have over 30 years of experience and we are located in San Antonio, Texas managed six neutral funds and three exchange traded funds and in addition, we have over 100000 readers who are subscribed to our award winning financial blog, Frank talk and our weekly investment newsletter.
Speaker Change: Sure.
Speaker Change: On the next slide I, just want to quickly thank our top institutional shareholders, which I can see are the Vanguard group.
Lynn Templeton: Thank Lynn Templeton.
Speaker Change: And parents capital management.
Frank: On the next slide is where I want to hand over to Frank Holmes CEO Frank.
Frank Holmes: Thank you. Thank you everyone, everyone and all the shareholders.
Speaker Change: So let's go through I at least Washington controllers.
Speaker Change: Chief investment officer.
Addition to the CEO.
Speaker Change: Sure.
Speaker Change: <unk> taken place.
Speaker Change: In the capital markets from our fund products to the Corporation and how we're adapting adjusting to external forces. So as you've seen this visual when you take a look at that five year period at the June to June and you can just see.
Speaker Change: That that snaps that snapshot shows Youll grows ahead of the Russell Microcap index and if you would have taken it at another time it could be negative it would be positive. It all depends work with time snapshot youre, taking a look at.
Speaker Change: And I think it's a support for.
Speaker Change: For investors in the long term picture is that.
Speaker Change: Short term, we can have a capital market external forces.
You have an impact on our fund flows, but usually that's a short term and then all of a sudden or fund flows change and that really is a big part that drives the stock price is the fund flows next please.
Speaker Change: During that earnings would you just saw over five years.
Speaker Change: Hello.
Speaker Change: Sure.
Speaker Change: On one day and 10 day period.
Speaker Change: And I like to go and look at this as a reminder for investors.
Speaker Change: That each asset classes on DNA of volatility.
Speaker Change: The S&P 500 and global.
Speaker Change: And the <unk> asset managers index go up or down 1% almost 7% of the time on a daily basis.
Speaker Change: On a 10 year I'm, sorry, a 10 day period Youll start to see the volatility change in the S&P, It's now 2% and gold is 3%, but asset managers was 4%.
So you can see that on the 10 day were about the same as the Dow Jones U S asset managers index that our volatility is plus or minus 4%.
Speaker Change: It used to be higher and one of the things of that volatility we noticed over trends.
Speaker Change: Back to the Ninety's that used to move with money market funds.
Speaker Change: And as our fund.
Speaker Change: When I first moved to Texas and focus on the growth of our money market fund because yields were very substantially higher than they are today.
Speaker Change: We grew that to $1 billion and in that particular fund you saw was a key factor in the stock price and then we go on and we can take a look at.
Speaker Change: Our goal for a long time that we would move with gold and gold was up we were up more than a gold stock. In fact, we were more profitable than most of the gold stocks and management at the gold funds and we were ranked number one in the world and you can see these thematic funds.
Speaker Change: We have and thematic Etfs, social I'll give a little more color on do all have this DNA of volatility and Ive included here oil.
Speaker Change: Because oil is the most traded commodity in the world and Goa, you, which was gold gold theme for gold stocks, you can see that gold stocks, even after a smart beta factor analysis, although volatility is twice what the bullion is over a 10 day period and the airlines.
Speaker Change: Is even greater it's at 7% over 10 days and I think it's interesting as per normal because of oil.
Speaker Change: We know that and jets ETF that the direction of oil when its above or below its 50 day moving average there's an inverse relationship to the airline index because it's our biggest cost line item. So it's just it's helpful for investors to recognize that DNA of volatility and when we made an investment.
Speaker Change: And hive and <unk> in September of 2017, we did it because we launched the first crypto mining company because that we were unable at that time to really launch a bitcoin mining ETF and we had tried but we were early to recognize that it wasn't going to happen and here. It is 2024 to just hop.
Speaker Change: This year ISO.
Speaker Change: So it was sort of advantageous that we were way ahead of that and we launched a high but as you can see its DNA of volatility as quite substantial from a daily basis to a 10 day basis.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: For the <unk>.
Speaker Change: 'twenty two.
Speaker Change: Hi.
Speaker Change: Our $3 million of investment.
Megan: It is for Megan.
Megan: After interest payments from the conversion etc.
Megan: Think will tally up to closer to 21 million so that was a huge win.
Megan: For the U S global shareholders.
And then just capturing and recognizing that he sees asset classes, how different naked DNA of volatility expertise.
Megan: But in a macro trend that we can intuitive Russell with our mutual funds are.
Megan: Actively managed domestic equity funds continue to see redemptions.
Speaker Change: Continue at a much accelerated rate to shut down funds and if we're seeing that the burden to shutdown of mutual fund is so much greater than in Etfs.
Speaker Change: Sadr easy to open and E tail.
Speaker Change: He has a lot less.
Speaker Change: And so you would have shown diabetics if youre.
Theme is not working so it's important to recognize where you can see trend changes and what's really positive is to see the growth.
Speaker Change: Particular to 'twenty two in actively managed domestic equity.
Speaker Change: Equity Etfs before it was you could not get a seeding of them that.
It was hard to attract assets.
Speaker Change: But that's all changed dramatically.
Speaker Change: Next please.
Warren Buffett: Warren Buffett Hi.
Warren Buffett: Highlights the value proposition of buying back one stock as a value accretive prices and it benefits all shareholders not just the biggest holders and I am the biggest holder. So it doesn't just benefit me it benefits all shareholders and Warren Buffett celebrated his 94th birthday on August the <unk>.
Warren Buffett: And his brain is blown and gone it went through a trillion dollar market cap.
He has almost $300 billion in cash.
Speaker Change: Waiting for the correction that take place with the inverted yield curve. That's just finally seem to have and but here's a brilliant mind and Ed and I look at that as his most important when youre, having a board of directors and you're having other people around you that there.
Speaker Change: They have this tremendous both explicit and tacit knowledge next please.
Speaker Change: So why buy back our stock the company believes the stock is undervalued. Therefore buys back shares of ROE when the price is flat or down from the previous trading day using an algorithm. This is part of the company's two pillar strategy to enhance shareholder value by increasing the dividend as well as buyback amounts per year.
Speaker Change: We will reassess this on a regular basis the board does but there is no.
Speaker Change: Rash decisions to go and buyback and private ties or big dividends.
We're much more cautious and prudent of how we've managed the capital and look for the creation of another product that captures the imagination and the thematic world for investors next please.
So this is sort of a visual showing you. The total dollar amount of buying back the stock the stock has come lower and in fact, we're buying back more stock because.
Speaker Change: Because we believe that it's undervalued and and.
Speaker Change: And so that's what we do on a regular basis.
Speaker Change: Buyback.
Speaker Change: I think it's a very strong progression as you can see from 'twenty two to 'twenty three.
Speaker Change: It was almost a three fold increase and since 2002.
Speaker Change: It is about close to a fivefold increase in stock buybacks next please.
Speaker Change: So growing dividends.
Speaker Change: We have paid a monthly dividend since 2007.
Speaker Change: Year before the financial crisis, whether through those prices in other ones and have maintained that monthly dividend disc.
Speaker Change: Discipline.
Speaker Change: And this gets reviewed on a quarterly basis by the board.
Speaker Change: The yield is three 5%.
Speaker Change: Based on its monthly paying today, which now makes it more attractive relative to bonds.
Speaker Change: That are the same time period, but let me explain that in the second next please.
Speaker Change: I look at fiscal year, 2024, and a copy of steady cash flow despite challenges of macro market environment and particular for mutual funds.
Speaker Change: And I'm going to go into more explicit detail on our jets ETF and the company has maintained a strong balance sheet, which includes both cash and other investments and the company continues to buy back stock on flattened down days of paid monthly dividends next please.
Speaker Change: As the CEO and CIO Island, approximately 19% of the company and I have approximately 99% of the voting control that is a structure that was pushed decades ago by the FCC.
Speaker Change: That someone one person or trust or some form has to have the voting control otherwise every time the shares change too many hands and more than 20% of the shares change trends you have to go with a proxy to all the fund shareholders and that would just be flawlessly expense. So it creates a two tier system.
Speaker Change: But we run and have always run.
U S global with this discipline.
Speaker Change: Having three independent directors.
Speaker Change: To be able to make decisions and have <unk>.
Various.
Speaker Change: Subcommittees and detailed.
Speaker Change: Processes for compliance and an outstanding corporate governance.
The only director that has both management.
And the other three are all independent and the other three all have tremendous experience. Our chairman has both a CPA and an attorney.
Speaker Change: With decades of experience in the capital markets and right and the other just Jerry Rubin's gene in Reuters Sienna.
Speaker Change: Also has tremendous experience in capital markets and Tom Leighton Who's built a very successful newsletter business and then into indexing and.
Speaker Change: Sold that business.
Tom Leighton: He is Mr. ETF.
Tom Leighton: Very early on capturing that trend. So I think the board is an outstanding board.
Tom Leighton: And they understand the capital markets and the creation and the issues from launching a product to maintaining our product in the capital markets next please.
Tom Leighton: Okay.
Speaker Change: But something that's at U S global that we've adopted as a what's called quantum mental research and Quanta mental research is a fusion of quant math, along with fundamental analysis and and we tried to capture these thematic trends and themes is being early and that would be basically enable investors to.
Speaker Change: Capitalize on discernible trends and themes tell a story, we're very early on catching the China.
Speaker Change: Explosion and growth in demand and commodity demand and were also the first to come out with the Eastern European Fund.
Speaker Change: The Eastern European Fund.
Through the crisis.
Speaker Change: 98 <unk>.
Speaker Change: They defaulted, Russia default on their sovereign debt, but it was after the wall came down I said something big is happening.
Speaker Change: And from the Berlin Wall came down as is well known in it and.
Speaker Change: To me it was interesting to see that this trend did grow and it grew as capital markets also embraced the growth of the idea of a euro and we were early that fund grew to over a billion two.
Speaker Change: It was a huge huge win but then geopolitical events take place and it was in 2000 after President Obama.
Speaker Change: Was inaugurated.
Speaker Change: Ah.
Speaker Change: Potent invaded Crimea, and then pulls back out and then once again he's attacked again and we've seen it doesn't matter if you're a top performing eastern European Fund Americans as a whole are not interested in speculating anything in eastern Europe and we've also seen one of the first to have a China region fun.
Speaker Change: The sentiment is the negative sentiment towards China and to Russia and surrounding areas has been immense on the psyche of investors and sentiment does play an important role that a lot of quants look at different factors like D. E. Shaw likes to call goes trades, where they look for.
Speaker Change: Unusual or people at the first look at as a factor that's driving investment decisions, but last year and part of our streamlining we shut down two funds and one in particular was the most profitable.
Speaker Change: Our global China Fund as running a business and our global emerging Europe Fund was also very profitable, but these are big into our funds that just shrink.
Speaker Change: And we all know what happened to when we were very fortunate that we didn't own any of the Russian stocks, we sold them just before the last invasion.
Speaker Change: And it didn't really matter, we protect shareholders from losing millions of millions of dollars and there was a sudden debate with so pervasive so we shut them down.
Speaker Change: And this is what we don't control what we do control.
In a smart beta two point of world as we control based on regression on detailed analysis looking at up and down cycles for a minimum of 10 years, our investment process and we review it every quarter.
Speaker Change: Be vigilant and rigorous and our disciplines and that's what we control and we control. The decision that we believe this is a good theme and we're going to invest our time and effort into it. So these two particular products were amazingly profitable great themes for us, but the world.
Speaker Change: <unk> and its changed with two dictators.
Speaker Change: Next please.
Speaker Change: So U S global announces the merger of Europe Domiciled Airlines perfect Brown.
Speaker Change: Okay.
Speaker Change: And we're excited this is different than the jets and.
Speaker Change: And respect that.
Speaker Change: The index of waterfalls and it includes the.
Speaker Change: Sure.
Speaker Change: Particularly as cruise lines stocks have been on a tear in IBD.
Speaker Change: But I think for our hotels and luxury hotels closed, whereas jets is more focus on.
On transportation of people and all the infrastructure goes around the flying of people to go that enjoy one of these crews trips at Miami.
Speaker Change: But this is exciting for us, but all of these things cost money and they did impact our operating.
Cash flow in the past year, the idea of shutting down.
All right.
Speaker Change: Very very expensive and the cost of acquiring and putting these assets together, but we're really thrilled about what's taking place.
Speaker Change: So I can go in more detail.
Speaker Change: Thematic of Airlines and travel next please.
Speaker Change: Our strategy and tactics know create thematic products that are sustainable using a smart beta two <unk> strategy. This requires rigorous back testing.
Speaker Change: Often a way over 10000 hours and continuous testing each quarter and U S. Global investors. Our mission is to make people feel financially Hopkins secure that their wealth is consistently growing but we don't we don't take care of as an asset manager or when they move in and out or when they try to time or the rebalance of the asset.
Different.
Speaker Change: Assets bonds versus stocks, but we do provide the products for you as our I E are you as an individual investor to go ahead and use those products and <unk> sufficiently buyback stock and use an algorithm and flattened down days to do it for us the managed to preserve our cash for future growth opportunities and market corrections in five years of M&A.
Speaker Change: Activity to acquire their own funds and we are looking.
Speaker Change: And we are pretty vigilant in that discipline.
Speaker Change: Looking at potential acquisitions, and then grow our subscriber base and followers. We think that's important for the branding and the creation of a new of a new product.
Next please.
Speaker Change: Maybe in favor.
Speaker Change: As a fund group and he really pop realized.
Speaker Change: Total shareholder yield.
Speaker Change: As a better approach to yield investing and he looks at it it's.
What you do with your free cash flow.
Speaker Change: Next please.
Speaker Change: So the shareholder yield is dividends plus buybacks plus debt reduction and since we don't have any debt, it's really dividends and buying back stock by divided by the market cap gives you an overall yield and you try to compare the shareholder yield in the capital markets to which people would pay for.
Speaker Change: Government bond yield.
Speaker Change: Next please.
Speaker Change: So our total shareholder yield is very attractive at 941% next place because.
Speaker Change: When you look at the five year treasury yield and interesting enough that's $4 three three and most.
Speaker Change: Dividend paying models are based off the five year.
Speaker Change: Risk free.
Treasury yield and most capex for spending for our real estate development or a new mining project or building a refinery it's off a taker.
Yes. It is.
So the 10 year.
Speaker Change: And not too long ago was above the two year was above them, which gave them very yield curve and I'll talk more about that but grows shareholder yield of buying back stock and paying our dividends. It's a much more attractive overall return on shareholders' money.
Next please.
Speaker Change: So these are our two other companies I think are important are much bigger than U S global.
Speaker Change: And it's interesting for me to see that invesco that 4% of assets or the QQ ETF.
Speaker Change: And as to compare their price to book and return on assets.
And pre tax margin and as you can see dividend yield and price to cash flow wisdom tree is a 100% Etfs.
Speaker Change: We are now 86% of our operating revenue.
Speaker Change: Is it coming from Etfs.
Speaker Change: But you can see on a price to book Wisdom tree trades at a much higher valuation and the return on assets.
Speaker Change: Ours has dropped from.
Speaker Change: 8%, we were higher and that can change based on your free cash flow, which is going to change based on the assets you have.
Speaker Change: And then we have the pretax margin you can see that <unk> is at the lowest number and the dividend yield.
Speaker Change: <unk> yields impact are higher than ours.
Speaker Change: But I don't believe they're totally overall.
Speaker Change: Shareholder yield is but their cash is higher.
Speaker Change: But we pay monthly and I also think that.
Speaker Change: Our price to cash flow is higher because of.
Speaker Change: The increase.
Speaker Change: Hum.
Speaker Change: Buying back stock and dividends and in restructuring and streamlining our funds.
Speaker Change: I think all these things to impact your overall cash flow next please.
Speaker Change: Current share repurchase program for the fiscal year ended June 30, we have repurchased 600 767751 class a shares using cash of approximately 2.1, $8 6 million <unk>.
Speaker Change: But what do we want to show you here well what's interesting is is.
Is that during this time period, we had an explosion in two of our assets.
During <unk>, we had close to a 100 fold increase in the assets of Jets.
Speaker Change: And I don't think Theres money fund groups that have such even one fund and I think I've gone through now.
Speaker Change: Five funds that I've seen and built and created the gone over a big in dollars in assets.
Speaker Change: And this we maintained the branding of this particular product it was the only product and when the crisis hit with Covid and all of a sudden.
Speaker Change: <unk> was a fellow love with by so many investors betting that in the next two years to four years there'll be this epic explosion in the growth in revenue and it did occur.
Speaker Change: So was.
Speaker Change: As you can see from March 2022 about September 'twenty, one 'twenty going to March 22nd during that time period.
Speaker Change: <unk> had a huge growth in assets coming into it and also the <unk>.
Speaker Change: Particular fund itself.
<unk> was in the thirties Covid hit if felt at 12, and then went to 28.
Speaker Change: What's happened since then is like a ghost sentiment factor that appears to be inverted yield curve I will give you some more color on that but what's important here is just to see the downtrend in the assets that we own in <unk>, even though it has gone up in value and price. The overall number of shares out.
Speaker Change: Standing does impact.
Speaker Change: What grow is trading at.
Speaker Change: In the sentimental.
Speaker Change: Quarterly numbers next please.
Speaker Change: So this is another way of looking at that.
Speaker Change: Fortunately.
For two.
Speaker Change: Two 4 billion.
Speaker Change: And <unk>.
Speaker Change: Well for us.
Speaker Change: <unk>.
Most of that the client has taken place with the airline product next please.
Speaker Change: So you scratch your head and you asked what what are you doing here.
Basic best product there is heartbeat, a 2.0, it's all performed.
Speaker Change: Any global airline index by.
White Origin: White origin.
White Origin: The business itself is doing well the airlines are pattern and if you take a look at this data point Jordan Cove at TC start reporting how many people there are clearer everyday and.
White Origin: And before Covid a year before there's 2 billion people a day, we're being clear.
White Origin: $2 million of domestic travel 500000 people inbound from Latin America, Europe and Asia.
White Origin: It fell out of 80.
White Origin: I think that so should be 80000 people in one day.
White Origin: With a data point and and then it started to go up.
White Origin: And to me that's most interesting to see that has now surpassed $2 5 million and hit recently 3 million people in a day are traveling so we have seen since December of 'twenty. Let me go back to June of 'twenty. Two on this visual from like roughly 2 million people a day to 3 million.
White Origin: And people.
White Origin: That means the airlines.
White Origin: The price of the tickets aren't going down.
White Origin: They're making a lot of money next please.
So I went and did this analysis for the shareholders and as I show you that over a four year period the.
White Origin: The four biggest airlines and represents 65% of all travel in America.
White Origin: These four and you see southwest night Delta and American and on average the revenue grew 840% over four years and over two years. They grew at 15%. The EBITDA grew over the four year period of 154% for southwest to 205%, 9% for United.
White Origin: On average grew 178%. So we've had big increases in compensation to pilots and stewardesses and is still can get these strikes taking place, but the average pilot makes a lot more money than they ever did pre call that substantially bar.
Speaker Change: And we're seeing that even over the past two years, which is more important for me is there even though revenue grew on average, 15%, which was much stronger than the economy growth and EBITDA group on average 25%.
Speaker Change: We've had redemptions.
Speaker Change: Out of out of Jets, and that was sort of that boulder meant of trying to understand if we're there every day in <unk>.
Speaker Change: Social media and doing interviews all the time what is the sort of the apathy towards this asset class next please.
And it's not really so much say competition coming in to compete against that and it has to the biggest thing. We can see was this inverted yield curve and we've lived with this inverted yield curve for the longest ever on record 783 days. So went back and did some research.
Speaker Change: And looked at the airlines.
Speaker Change: Going way back in.
Speaker Change: And trying to see what happened when we went through this negative yield curve and what the out with airlines and they do sell off Theres, just a negative sentiment towards this industry. When you have an inverted yield curve and the good news is it reverse last week next please.
Speaker Change: So another sort of visual to help you grasp what what's been taking place as you can see jets market cap.
Speaker Change: As has been declining along.
Speaker Change: With where the two year yields above the 10 year yield. So you have an inverted negative yield.
Speaker Change: And that's when the airlines have a negative sentiment and the negative sentiment is worry and those dealt that are big recessions coming or a soft landing is coming of our lending is coming.
Speaker Change: So many forecasts.
Speaker Change: Those big recession. So this has impacted the sentiment and.
Speaker Change: Thats whats taken place in the capital markets.
Speaker Change: Next please.
Speaker Change: So one of the things we want to share with you in the in the in the World of Airlines is oil and what we have found in the ecosystem was that theres lots of hedge funds that trade.
Speaker Change: <unk> Airlines going short long and quite often they wanted a short when oil surged above the 50 day moving average.
Speaker Change: Amelia discharge shorting the airlines that have <unk>.
Speaker Change: No hedging program like American Legion.
Speaker Change: And so with that it gives them a position that they think there's going to be compression, but they would use jets as there are hedged I think along.
Speaker Change: Jets in short American Airlines that all of Us at American Airlines.
Speaker Change: Which started to take off.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: We know and we see this small of funds around.
Speaker Change: Oil and that's why in this.
Speaker Change: Presentation I tried to explain to you so the inverse relationships that happen.
Speaker Change: Next please.
Speaker Change: So another indicator we write about every month and we taught the world PMI purchasing manufacturers index herself overlooking.
Speaker Change: Indicator, where GDP is behind so let him behind if not forecasting the future and it's very important for the world of gold in commodities next please.
Speaker Change: And if youre not a subscriber to invest lowered our highly recommended especially when we update and comment on this but I thought it was interesting for me to take a look at.
Speaker Change: ISS manufacturing, which is the Americas, PMI and other global PMI and.
Speaker Change: And any time, you have the PMI falling going into an election caught out.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: The <unk> have gone to get us from the U S. Because of global PMI is negative.
Speaker Change: Particulars of the China and Europe.
Speaker Change: Europes been a much more severe recession and I thought it was interesting that China today announced their <unk> two trillion dollars in bonds in.
Speaker Change: In Europe.
Speaker Change: And so the anti boycott bike at arc.
Speaker Change: Deploying capital and then one of the top quintile only U S funds next please.
So this is the head.
Speaker Change: And.
Below the 50 and this is a cycle of psychological tool significantly used by commodity hedge funds.
Speaker Change: As a as.
Speaker Change: It's a six month indicators bode job creation. Its decline is also indicative of all of a sudden the bad numbers coming out in unemployment and the restatement of employment for the past five months in a row is really saying that something else negative has happened because the <unk> were were falling.
Speaker Change: Global <unk> and you can see that big from 54 down to September of 'twenty second.
Speaker Change: That big drop a law that was driven by China is still had lockdowns in Europe.
Speaker Change: America is the only strong country at that time.
And then as China try to find a bottom in Europe, we've start to slow down next please.
Speaker Change: So smart beta two point, all investing as our quanta mental investment strategy I mentioned to earlier combines cutting edge technology with robust data analysis to help optimize returns and manage risk effectively for our shareholders, we will attend southwest.
Speaker Change: Todd.
Speaker Change: Airlines is having an investor day in Dallas, and we will have some of our analysts and thats sort of the quanta mental the fundamental approach, we're going to see it and doing a quad approach looking at the math of markets and we believe the use of smart beta two point all factors and our thematic fund lineup sets us apart from our competition and the quant approach back tested.
Speaker Change: <unk> of hours over decades of data to determine the optimized portfolio construction and factors. So a stock factors for picking a resource stock versus electric <unk> Airlines. They are all different factors that give you a stronger probability of alpha.
Speaker Change: Okay.
Speaker Change: And by now.
Speaker Change: Sure.
So this is a really important validation of this system.
We have read it.
Speaker Change: Going against your stock trades for airline index and as you can see they're both down over 12 months, but we're off substantially less than what New York Global airline indexes and if we go back over a further time period over the next visual I mean.
Speaker Change: It's quite significant.
Speaker Change: We have fees and these indexes have <unk> next slide please.
Speaker Change: And this is going back.
Speaker Change: Inception, and it's more than 20% ahead, so that in the context that this this model even after fees has done an outstanding job for shareholders.
Speaker Change: And there's some other rule the uniqueness about this particular product next please.
Speaker Change: So U S global even with all the challenges of getting proxy Salisbury structure shutting down bonds that aren't working.
Speaker Change: Emerging acquiring other vitamins to build up our footprint, England.
Speaker Change: We.
Speaker Change: Turnaround with our journey is to expand Colombia. So just launched on the New York Exchange 2015 that de listed in Peru, and Mexico, and just 10.
Speaker Change: 10 days ago, we were in Colombia, and we lost in Colombia now why are these countries are important.
Speaker Change: They are important because pension funds are asset allocators and the theme of airlines is very significant again as a small this product this unique product captured about 9% of the world's GDP capture.
Speaker Change: Captures nomadic.
Speaker Change: Coders or the world.
Speaker Change: Captures.
Speaker Change: This year I think is going to be something like a trillion dollars estimated in bookings for.
Speaker Change: The airlines business and tours.
Speaker Change: Indirectly directly.
Speaker Change: The product captures 9% of the global GDP and it's short it's rebalancing every quarter, it's recalibrating every quarter.
It's a it's a dynamic rules based mechanism.
Speaker Change: This is done exactly what all the tests shows is resilient and we're thrilled about it. So now we can focus when you go to these other countries to go lock knock on the doors are pension funds those lessons and in each of these countries to knock on for their asset allocation to take a look at airlines on the other part that's important for the Investor.
Speaker Change: Is that these three countries Mexico.
Speaker Change: Colombia, and Peru have politicians.
Speaker Change: Between tourism, they are doing everything to build their tourism and trying to lower their carbon footprint by slowing down or stopping exporting.
Speaker Change: <unk>.
Speaker Change: And replacing those jobs with tourism next please.
Speaker Change: So there it is we got ring, we're able to ring the bell.
Speaker Change: In Colombia, and the first time they've done this is such a big way and it was very exciting next please.
Speaker Change: So Colombia is truly expanded the number of daily flights from Europe, and North America.
Speaker Change: I was impressed how much easier it was to fly there.
Through Miami on American and and I think Theyre seeing in Carter Hanger 25, a month.
Speaker Change: In Bogota to one or two months.
Speaker Change: International lights coming again.
Speaker Change: Our on site, so it's very positive.
What our idea and our vision was to create a moat around that particular bottom for its uniqueness.
Speaker Change: And that's what we're doing next.
Speaker Change: 40 million worked with loyalty currently describe themselves or digital nomad, that's a very big demographic study that we're going to still come in Chicago. They want to go to Mexico, or Colombia in particular, Missouri or are they going out of <unk>.
And it used to be just snowbirds for retirement go to Texas, and Florida and driving down the Interstate now this is a complete different workforce that wants to make sure those inexpensive Wi Fi they want warmer weather.
And they fly back and forth next please.
Speaker Change: The airline industry is warehouse to contribute $2 five trillion to the U S economy. Thanks Louise.
Speaker Change: This data point really amazed me.
Speaker Change: That 1 billion people go to airports every day, so the whole world functions all the parts all the workers at all involved.
<unk> coming and going of landing and taking off pairing.
Speaker Change: Giving you a coffee at the Starbucks at the airports you up all those workers to make the global airline ecosystem function, it's about a million people work everyday.
Speaker Change: Gogo theme.
Speaker Change: Team that makes our gold attractive.
Speaker Change: This is that in.
And as our global depth and two is to make all time highs our popular term in crypto ath.
Ultra high it attracts goldbug and it attracts bitcoiners.
Speaker Change: And attracts predominantly people have said, it's an alternative assets. Please.
Speaker Change: Other some data point Youll see auto for.
Speaker Change: Google Themis federal government interest payments have crossed above what trillium and that makes people worry that the government is going to continue to debase the currency. So it puts in a good position for the gold funds next please.
Speaker Change: So gold equity ETF fund flows.
Speaker Change: <unk> just like the Jets does even though the industry is doing so well is this visual is showing the gold fix a all time high in the largest.
ETF and gold stocks actually hydrous redemptions.
Speaker Change: And just like apathy towards theatrical class, even though they have high free cash flow.
Speaker Change: And that's something that we just scratch, our head and I think that we have to wait until the inverted yield curve has taken place for the house and the election.
Speaker Change: Is that the negative sentiment that.
Speaker Change: What's driving sort of that are concerned I do not know baidu know that theres very strong correlations with the inverted yield curve.
Next please.
Speaker Change: So <unk> Etfs Seesaws are fine thats up 14%.
Speaker Change: Placed.
Speaker Change: But the assets under management.
Speaker Change: $240 million or just under hovering around $100 million.
Speaker Change: This is our past five years, so we had a rally, but just the apathy and during this period of launching this as a form of Gtx.
Speaker Change: ETF so the smart beta two point, it's done its job but.
Speaker Change: It's still the sort of the apathy towards the gold equities next week.
Speaker Change: Yeah.
Speaker Change: So this is showing you how it's done against the other products are out there and as you can see since we launched it.
Speaker Change: It's done a good job of driving fund performance using that smart beta two point al.
Next please.
Speaker Change: So we made this investment because we could launch an ETF.
Speaker Change: We converted into a basically a note.
Speaker Change: In that note had prepayment, 8%, which is a very attractive yield at the time, especially because yields were.
Speaker Change: Five year yields for less.
Speaker Change: Less than 2% and we were able to get 8%.
Yield on that piece of paper.
Speaker Change: Also in that structure, we're able to get five sorry of warrants with debt and warrants really were out of the money and they don't have any intrinsic value, but the accounting purposes, you have to take a paper.
Speaker Change: Value for the museum box shows on these chicken give you more color on that.
Speaker Change: That's gone they've expired.
Speaker Change: What's important is that that piece of paper generated additional approximately $3 million.
Speaker Change: Interest payments so that investment.
Speaker Change: Firstly.
Speaker Change: Towards.
Speaker Change: Uh huh.
Speaker Change: Four year period.
Speaker Change: Is this a heck of a score.
Speaker Change: Basically the $80 million three.
Speaker Change: $3 million of interest payments. So overall is a significant return on invested capital.
Speaker Change: Next please.
Speaker Change: And the growth of that.
Speaker Change: As being unique only product go to and.
Speaker Change: It gets it will continue to be as unique product.
Speaker Change: And as we continue to tell that story.
Speaker Change: Rose approximately says here to 56.
Speaker Change: Fiscal year.
Speaker Change: This is about $1 9 billion in assets.
Speaker Change: Of the $1 million as Cisco operating revenues.
Speaker Change: Next please.
Speaker Change: Earnings per share as you can see they move around they move.
Speaker Change: With <unk>.
Speaker Change: Realizing gains or realizing.
Speaker Change: The higher hospital and you can see from here.
Speaker Change: So what's been Broussard next please.
Speaker Change: Our annual operating income was negative and that's because of processing costs are so expensive and time consuming and acquiring the trip ETF to merge with our jets ETF and configure that so that we had more than $20 billion critical mass on the London stock exchange. So we're happy about that.
Speaker Change: And.
Speaker Change: And so next visual please.
Speaker Change: This is Lisa <unk>, our CFO and she's going to go through more granularity. Thank you to all of you for your patience and listening to my long winded presentation on what message unique and special.
Lisa: And what's driving the capital markets.
Lisa: Lisa you're sure sure.
Lisa: Thank you Frank.
Lisa: Good morning, first I'll start with a brief discussion of our capital structure, we have a comp base and capture what we believe.
Speaker Change #101: Support the value recognition of the kidney.
Lisa: Performing <unk> myself.
Speaker Change #101: If we go to the next slide you can see.
Lisa: <unk>.
Lisa: Our employee base salary.
Historically they bought it.
Bruce Bennett: Bruce Bennett directly individual until we felt.
Bruce Bennett: I think with even accretive.
Bruce Bennett: That operating model.
Bruce Bennett: At a predetermined.
Speaker Change #104: We also received a bonus on annual leave.
Bruce Bennett: Airlines.
Bruce Bennett: Okay.
Bruce Bennett: Antibodies.
Bruce Bennett: Performance.
Bruce Bennett: Thanks.
Bruce Bennett: Alright.
Bruce Bennett: Alright.
Bruce Bennett: No.
Bruce Bennett: This structure aligns our.
Bruce Bennett: Interact with that of our capital.
And inherited efforts to increase the average asset with revenue operating income as well as rewarding bump realized gain.
Speaker Change #105: <unk> fluctuation from a value creative back to Macau if.
Speaker Change #105: It's not accrued any permanent catalyzing O&M that might have a realized gain.
Speaker Change #105: And a factor in that.
Speaker Change #105: Yes.
Speaker Change #105: Now on slide seven.
Speaker Change #105: We see our need for highlights.
Speaker Change #105: For the fiscal year 'twenty four.
Speaker Change #106: One nine.
For the fiscal.
Speaker Change #106: Full year operating revenue.
We have net income one nine.
Speaker Change #106: Sure.
Speaker Change #106: Thanks.
Speaker Change #106: A breakout.
Speaker Change #106: We have operations.
Mr <unk>: Thank you Mr <unk>.
Mr <unk>: Other areas, which are mainly.
Mr <unk>: We realized.
Mr <unk>: Lots of behind that.
Mr <unk>: Both of our adviser.
Mr <unk>: Yeah.
Speaker Change #108: Unlocking fluctuate.
Mr <unk>: On market products.
Okay.
Speaker Change #108: The next few slides.
Caliber operations.
Speaker Change #108: Beginning on slide nine.
Speaker Change #108: Our total operating revenue.
Speaker Change #108: Our 11, 9%.
Speaker Change #109: We can say decrease.
Speaker Change #109: Right.
Okay.
Speaker Change #110: $15 one in the prior.
Speaker Change #111: The decrease was primarily due to decreases in assets under management.
Speaker Change #111: And I've got some flat.
Speaker Change #111: Operator.
Speaker Change #113: Quarter by 11.
Speaker Change #113: A relatively flat compared to prior year.
Right.
Speaker Change #114: We have from Howard Weil.
Related to the proxy costs from the Navy.
Speaker Change #115: What do you need to draw on pharmacy.
Speaker Change #114: And our European music merger.
Speaker Change #116: Both of these are examples.
Speaker Change #116: Okay.
Speaker Change #116: And in the future.
Speaker Change #116: The removal of the performance fee for Cod less clarity on the mutual fund advisors.
Speaker Change #116: Im a favorable market.
Speaker Change #117: Got it.
Speaker Change #117: Cool.
Speaker Change #117: <unk> six America increased R&D efforts at our management.
Speaker Change #117: Okay.
Speaker Change #117: Okay.
Speaker Change #118: On slide <unk>, we see our operating loss.
Speaker Change #118: 2024.
Speaker Change #119: Alright, great.
Speaker Change #118: And any favorable from three nine.
With 2012.
Speaker Change #119: Okay great.
Speaker Change #119: One in.
Speaker Change #118: Compared to the prior year.
The higher investment in content.
Speaker Change #118: On the current year.
Speaker Change #118: And unrealized losses.
Thank you Kenny.
Speaker Change #118: Yeah.
Speaker Change #120: Net income after taxes for the African <unk> 99 per share.
Speaker Change #118: Unfavorable swing.
Compared to our net.
Speaker Change #120: One R 22.
Speaker Change #120: <unk> 2012 right.
$5 61 62.
Speaker Change #120: You can see we have a strong balance sheet we have.
Speaker Change #120: High levels of cash and securities.
Speaker Change #120: Now on <unk>.
Speaker Change #120: Three you can see.
Speaker Change #120: Scott.
Company had been working capital.
And a current ratio of $18.
Hollywood: With that I'd like to turn it over to Hollywood to discuss the marketing distribution.
Hollywood: Thank you Lisa Alright on the first slide in my section I did want to quickly point out is that about.
Hollywood: I think during the fiscal year.
Speaker Change #123: See here on the map, we had nearly 400000 leaders from around the world.
Speaker Change #124: Mid con.
Speaker Change #124: Many were repeat visitors that we had even more new visitors to find our content.
Speaker Change #125: Patient, primarily so we're real proud of that and on the next slide.
Speaker Change #125: We are also proud to report that this year.
Speaker Change #125: <unk> thousand subscribers on our Youtube channel.
Speaker Change #125: It is primarily organic growth and now we have actually surpassed that number. So if you haven't got a.
Speaker Change #125: Hi, Eric.
Speaker Change #125: Okay, and then Brian is that you can get an update anytime any new videos posted.
Brian: An excellent.
Speaker Change #127: You will see here some of the videos on how you can channel led to educating our shareholders. So video content and we do sell on various topics ranging from gold to bitcoin to airlines and luxury goods.
Speaker Change #128: Moving on to the next slide I want to highlight some of our most popular Frank talk blog, so far in 2024.
Speaker Change #128: The brand has a long and actually one of the very first financial blogs out there and in 2024, it celebrated 17th year and fabrication.
Speaker Change #128: Yes.
Speaker Change #128: Okay.
Speaker Change #128: So you can also subscribe to the Investor Alert newsletter, let's comes out every Friday afternoon.
Speaker Change #128: Okay.
Speaker Change #128: From the <unk> and our entire investment.
Speaker Change #128: Thanks for that.
Speaker Change #128: Yeah.
Speaker Change #129: Moving onto the next slide.
Speaker Change #129: This is just a quick snapshot of our total subscriber growth over 12 months.
Speaker Change #129: And you can see not only.
Speaker Change #129: Our our major sensor performance growing consistently so our Frank talk and industrial <unk>.
Speaker Change #129: So this is something we're very proud of them and they all serve as an excellent way communicate to our current shareholders and potential.
Speaker Change #129: Potential shareholders. So finally on the.
Speaker Change #129: The next slide I do want to inquiry carriage you all to follow up on all of these platforms just stay up to date with what's going on with.
Speaker Change #129: And of course, the router market.
Speaker Change #130: So just as a reminder, any conclude today if you do have any questions. Please email those to <unk>.
Speaker Change #130: Dot com and we will gladly follow up with you to get anything clarified that you may need more information on <unk>.
Speaker Change #130: Thank you all for tuning in today and that concludes our website summarizing the fiscal year end 2024.