grow third quarter 2017 results webcast...usfunds.com 1.800.us.funds may 12, 2017 • 17-178 grow...

usfunds.com

1.800.US.FUNDS May 12, 2017 • 17-178

GROW Third Quarter 2017 Results Webcast

Frank Holmes, CEO and Chief Investment Officer

Susan McGee, President and General Counsel

Lisa Callicotte, Chief Financial Officer

www.usfunds.com May 2017 | 17-178 2

Today’s Presenters

Frank Holmes Susan McGee Lisa Callicotte Lisa Aston

www.usfunds.com May 2017 | 17-178

Forward-Looking Statements

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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 pertain

to historical facts are subject to risks and uncertainties that may

materially affect actual results. Please refer to our press release and

the corresponding Form 10-Q filing for more detail on factors that

could cause actual results to differ materially from any described today

in forward-looking statements. Any such statements are made as of

today, and U.S. Global Investors accepts no obligation to update them

in the future.


About U.S. Global Investors (GROW)

U.S. Global Investors, Inc. is an innovative investment manager with vast experience

in global markets and specialized sectors.

Founded as an investment club, the company became a registered investment adviser

in 1968 and has a longstanding history of global investing and launching first-of-their

kind investment products, including the first no-load gold fund.

U.S. Global Investors is well known for expertise in gold and precious metals, natural

resources and emerging markets.

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GROW Strengths

Strive to be the “Go-to” stock for exposure to emerging markets and resources

Debt-free, strong balance sheet with a reflexive cost structure

Monthly dividend and return on equity discipline

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Top Institutional Holders of GROW

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1. Financial and Investment 19%

Management Group

2. Royce and Associates 12%

3. The Vanguard Group 4%

4. Newberg Family Trust 3%

5. BlackRock Institutional Trust Company 3%

Percentage of shares outstanding as of March 2017 Source: NASDAQ


GROW Dividends — Paid Monthly

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Consistently paid for more than

9 years Current yield at share price of $1.56 as of 3/31/2017

1.92% Monthly dividend payment of $.0025

Approved through June 2017


Share Repurchase Program in Motion

The board approved a repurchase of up to $2.75 million

of its outstanding common stock on the open market through

calendar year 2017

During the third fiscal quarter 2017, the company repurchased 9,879

class A shares using cash of $17,000

May be suspended or discontinued at any time

As evidenced by regulatory filings, Frank Holmes is purchasing

shares of GROW pursuant to a Rule 10b-18 plan

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Balance Sheet Strength – No Debt

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Started investing in higher earning securities

*


Earnings Per Share Quarterly

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Closed Money Market Funds

Transition to Atlantic Fund Services

Corporate events impacting earnings

6¢

14¢

2¢ 2¢

2¢


Quarterly Average Assets Under Management

Remain Stable

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Asset Breakdown — U.S. Global Investors Funds

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Data for SEC-registered mutual funds as of March 31, 2017


The Buffett Effect

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Gold Seasonal Pattern

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The seasonal pattern shows historical tendency of when the highest and lowest prices occurred, based on analysis of daily

prices collected over the last 5, 15 and 30 years by Moore Research Center, Inc.


Gold Demand Appears Stable

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Disruption in the Gold Market

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Disruption in the Gold Market

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Negative Real Interest Rates Are Good For Gold May 2017

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5-Year

Treasury Yield

1.93%

Inflation

2.4% Return

-0.47%

Source: Bloomberg, U.S. Global Investors

As of 5/9/2017


Fund Regulatory Costs

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Small

Shareholder

Accounts

Small Fund

Family

Small retail investors

potentially being harmed

by industry interpretation

of Fiduciary Rule.

Wirehouse platforms

focus on “cheaper is

better” to avoid risk.


Managing Expectations

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Daily Rolling 1 Year

U.S. Global Investors

(GROW)

±4%

±58%

NYSE Arca Exchange

Gold BUGS Index ±3% ±40%

Gold Bullion ±1% ±19%

S&P 500 Index (SPX) ±1% ±18%

Oil ±3% ±39%

Dollar Index ±1% ±9%

Source: Bloomberg, U.S. Global Investors

Understanding Volatility of Asset Classes Standard deviation based on 10-year daily data as of 3/31/2017

See Our Managing

Expectations

Whitepaper at

usfunds.com


U.S. Global Investors, Inc. (GROW)

Income Statement – Financial Analysis

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Lisa Callicotte

CFO


Consolidated Statements of Operations (Unaudited) (dollars in thousands)

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Operating Revenues Three Months Ended March 31,

2017 2016

Advisory fees $ 1,604 $ 1,279

Administrative service fees 65 51

$ 1,669 $ 1,330

Operating Expenses

Employee compensation and benefits $ 932 $ 886

General and administrative 836 871

Advertising 28 33

Depreciation and amortization 64 80

$ 1,860 $ 1,870

Operating Loss (191) (540)


Consolidated Statements of Operations (Unaudited) (dollars in thousands, except per share amounts)

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Three Months Ended March 31,

2017 2016

Operating Loss $ (191) $ (540)

Other Income

Investment income 161 148

Total Other Income 161 148

Loss Before Income Taxes (30) (392)

Provision for Income Taxes

Tax expense (benefit) 3 (16)

Net Loss (33) (376)

Less: Net Loss Attributable to Non-Controlling Interest - (26)

Net Loss Attributable to U.S. Global Investors, Inc. $ (33) $ (350)

Earnings Per Share Attributable to U.S. Global Investors, Inc.

Basic Net Loss Per Share $ - $ (0.02)

Diluted Net Loss Per Share $ - $ (0.02)

Basic weighted average number of common shares outstanding 15,200,280 15,277,098

Diluted weighted average number of common shares outstanding 15,200,280 15,277,098


Consolidated Balance Sheets (dollars in thousands)

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Assets March 31, 2017

(UNAUDITED) June 30, 2016

Current Assets

Cash and cash equivalents $ 3,434 $ 3,993

Restricted cash 1,000 1,000

Investment securities – trading, at fair value 9,720 10,104

Accounts and other receivables 803 787

Note receivable 2,000 2,000

Prepaid expenses 313 290

Total Current Assets 17,270 18,174

Net Property and Equipment 2,273 2,466

Other Assets

Investment securities – available-for-sale, at fair value 3,524 3,481

Other investments 2,637 1,924

Note receivable, long term 234 212

Other assets, long term 98 89

Total Other Assets 6,493 5,706

Total Assets $ 26,036 $ 26,346


Consolidated Balance Sheets (dollars in thousands)

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Liabilities and Shareholders’ Equity March 31, 2017

(UNAUDITED) June 30, 2016

Current Liabilities

Accounts payable $ 99 $ 148

Accrued compensation and related costs 326 451

Dividends payable 114 115

Other accrued expenses 507 586

Total Current Liabilities 1,046 1,300

Commitments and Contingencies (Note 11)

Shareholders’ Equity

Common stock (class A) - $0.025 par value; nonvoting; authorized, 28,000,000 shares; issued,

13,866,601 and 13,866,421 at March 31, 2017 and June 30, 2016, respectively 347 347

Common stock (class B) - $0.025 par value; nonvoting; authorized, 4,500,000 shares; no shares

issued - -

Convertible common stock (class C) - $0.025 par value; voting; authorized, 3,500,000 shares; issued,

2,068,947 and 2,069,127 shares at March 31, 2017 and June 30, 2016, respectively 52 52

Additional paid-in-capital 15,648 15,651

Treasury stock, class A shares at cost; 740,985 and 688,700 shares at March 31, 2017 and June 30,

2016, respectively (1,748) (1,663)

Accumulated other comprehensive loss, net of tax (16) (149)

Retained Earnings 10,185 10,290

Total U.S. Global Investors Inc. Shareholders’ Equity 24,468 24,528

Non-Controlling Interest in Subsidiary 522 518

Total Shareholders’ Equity 24,990 25,046

Total Liabilities and Shareholders’ Equity $ 26,036 $ 26,346


Significant Events

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Susan McGee

President and General Counsel

www.usfunds.com May 2017 | 17-178 32

Media Coverage of Airlines ETF

Over 100 million views through earned media exposure!


Newsletter Recommendations for

U.S. Global Investors Funds

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2.4 mil subscribers

No-Load Mutual Fund Selections

& Timing Newsletter

7.5k subscribers

400k subscribers 300k subscribers

400k subscribers

49k subscribers

75k subscribers

5k subscribers

22k subscribers

1 million subscribers

5,400 subscribers


Branding and Marketing of GROW

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29 TV/Radio/Podcasts

34 Total Interviews

545 Web Mentions

25 Frank Talk Blog Entries

55 Newsletter

Recommendations

Data from January 2017 – March 2017

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Thought Leadership Speaking Engagements and

Research Around the World


Gold Game Film Show a Success on Kitco

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129 episodes

Kitco audience 10 million monthly visitors

TheStreet audience 7.8 million monthly visitors


Recognition As an Industry Leader in Investor Education

80 Awards

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80 Mutual Fund Education Alliance STAR Awards

MFEA

The Mutual Fund Education Alliance (MFEA) is a national industry association committed to investor education, and its

STAR Awards program recognizes marketing communications efforts in the mutual fund industry. The awards competition

is judged by industry professionals, and based on criteria including educational value, content, design and functionality.

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Q&A


Disclosures

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in

gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do

not hedge their gold production beyond 1.5 years.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major

indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

The U.S. Trade Weighted Dollar Index provides a general indication of the international value of the U.S. dollar.

Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation.

Standard deviation is also known as historical volatility. There is no guarantee that the issuers of any securities will declare dividends in the future

or that, if declared, will remain at current levels or increase over time. Note that stocks and Treasury bonds differ in investment objectives, costs

and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, and tax features.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the presentation were

held by one or more accounts managed by U.S. Global Investors as of 3/31/2017: VanEck Vectors Gold Miners ETF (GDX), VanEck Vectors Junior

Gold Miners ETF (GDXJ)

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grow third quarter 2017 results webcast...usfunds.com 1.800.us.funds may 12, 2017 • 17-178 grow...

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