Total Assets and Revenues Continue to Grow Year-on-Year with No Debt
SAN CLEMENTE, CA / ACCESSWIRE / November 16, 2020 / Concierge Technologies, Inc. (OTCQB:CNCG), a diversified global holding firm, today announced financial results for the first fiscal quarter ended September 30, 2020 with strong performance in revenues and net income.
The company reported revenues of $10.7 million for the three months ended September 30, 2020, compared with $6.0 million for the prior year. Net income for the most recent three-month period amounted to $2.2 million, equal to $0.06 per share, versus $55 thousand, or $0.00 per share, for the comparable prior year period.
The primary driver for the fiscal 2021 first quarter results was an increase in assets under management (AUM) at the company's Wainwright Holdings funds management subsidiary to approximately $5.2 billion as of September 30, 2020 as compared to $2.2 billion for the prior year quarter ended September 30, 2019. Wainwright, which operates under the name, USCF Investments, currently manages 10 commodity-oriented exchange-traded funds (ETFs) that are listed on the New York Stock Exchange.
The company's Other business segment, which comprised approximately 35% of total revenues in the most recent first quarter vs 50% of revenues in last year's first quarter, were also up approximately $0.7 million in year-on-year comparison. The increase was due, in part, to the acquisition of Printstock Products Limited by the Company's wholly-owned subsidiary, Gourmet Foods, in New Zealand. The Other segment is comprised of Gourmet Foods, Brigadier Security Systems and Original Sprout.
Concierge's balance sheet further strengthened at the end of the first fiscal quarter. Cash and cash equivalents totaled $12.9 million, compared with $9.8 million at June 30, 2020. Total stockholders' equity increased to $21.4 million at September 30, 2020 from $19.1 million at the end of fiscal 2020. The company has essentially no debt.
"Despite the negative effects of the COVID-19 pandemic on a global basis, our operating subsidiaries have found ways to adapt and continue to be in operation and profitable.", commented David Neibert, chief operations officer. "As a diverse global holding company looking to expand our portfolio of subsidiaries, we were only slightly delayed in our acquisition of Printstock this quarter due to the pandemic, and we are continuing to pursue our corporate goal to build a profitable, diverse organization through organic growth, acquisitions and new ventures".
"To say this has been a strange year would be an understatement." added Nicholas Gerber, chairman and chief executive officer. "To say our strategy of diversification has paid off would also be an understatement. When others have suffered undue hardship during the recent 6 months, we have smoothed the curve and prospered. For the remainder of this fiscal year we are looking forward to the addition of Printstock in New Zealand contributing revenues and profits as well as making good on our launch of a new fintech venture. The coming year will hopefully not be as strange as the last, but it promises to be as exciting."
Business Units
Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in August 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout New Zealand under the brand names Pat's Pantry and Ponsonby Pies. Gourmet Foods also owns Printstock Products Limited, acquired July 1, 2020, https://www.printstocknz.com/, who is a commercial printer of specialized wrappers for food products manufactured in New Zealand and Australia.
Brigadier Security Systems, www.brigadiersecurity.com, acquired in June 2016 and headquartered in Saskatoon, Canada, provides comprehensive security solutions to homes and businesses, government offices, schools and other public buildings throughout the province.
The company's USCF Investments operation, www.uscfinvestments.com, acquired as part of the Wainwright Holdings transaction in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 10 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca.
Acquired by Concierge at the end of 2017, California-based Original Sprout, www.originalsprout.com, produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a "reef safe" sun screen, in the U.S. and its territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan, Singapore, Hong Kong, Malaysia, New Zealand, Australia, Canada and at various online outlets worldwide.
About Concierge Technologies, Inc.
Concierge Technologies, originally founded in 1996, was repositioned as a global holding firm in 2015, and currently has operating subsidiaries in financial services, food manufacturing, security systems and beauty products. Offices and manufacturing operations are in the U.S., New Zealand and Canada. For more information, visit www.conciergetechnology.net.
Forward-Looking Statements
This press release may contain "forward-looking statements" that include information relating to Concierge Technologies' future events and future financial and operating performance. Such forward-looking statements, including, but not limited to, the launch of a new fintech venture, should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.
For a more detailed description of the risk factors and uncertainties affecting Concierge Technologies or its subsidiary companies, and more detailed information about the individual operating entities, please refer to the Company's Securities and Exchange Commission filings, which are available on the Company's website, (http://www.conciergetechnology.net), or at www.sec.gov.
Financial Tables Follow:
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| September 30, 2020 | June 30, 2020 | ||||||||||
| (AUDITED) | |||||||||||
| ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | 12,894,384 | $ | 9,813,188 | |||||||
Accounts receivable, net | 1,324,982 | 717,841 | |||||||||
Accounts receivable - related parties | 2,177,807 | 2,610,917 | |||||||||
Inventories | 1,849,104 | 1,174,603 | |||||||||
Prepaid income tax and tax receivable | - | 857,793 | |||||||||
Investments | 1,824,278 | 1,820,516 | |||||||||
Other current assets | 355,619 | 603,944 | |||||||||
Total current assets | 20,426,174 | 17,598,802 | |||||||||
Restricted cash | 13,201 | 12,854 | |||||||||
Property and equipment, net | 1,577,327 | 1,197,192 | |||||||||
Operating lease right-of-use asset | 816,328 | 733,917 | |||||||||
Goodwill | 1,043,473 | 915,790 | |||||||||
Intangible assets, net | 2,590,242 | 2,541,285 | |||||||||
Deferred tax assets, net | 900,877 | 900,878 | |||||||||
Other assets, long - term | 523,607 | 523,607 | |||||||||
Total assets | $ | 27,891,229 | $ | 24,424,325 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable and accrued expenses | $ | 3,281,329 | $ | 2,843,616 | |||||||
Expense waivers - related parties | 728,545 | 421,892 | |||||||||
Current portion operating lease liabilities | 449,211 | 323,395 | |||||||||
Purchase price payable | 277,577 | - | |||||||||
Notes payable - related parties | 3,500 | 3,500 | |||||||||
Loans - property and equipment, current portion | 13,558 | 13,196 | |||||||||
Total current liabilities | 4,753,720 | 3,605,599 | |||||||||
LONG TERM LIABILITIES | |||||||||||
Notes payable - related parties | 600,000 | 600,000 | |||||||||
Loans - property and equipment, net of current portion | 362,497 | 359,845 | |||||||||
Long-term operating lease liabilities, net of current portion | 402,984 | 447,062 | |||||||||
Deferred tax liabilities | 329,984 | 261,923 | |||||||||
Total long-term liabilities | 1,695,465 | 1,668,830 | |||||||||
Total liabilities | 6,449,185 | 5,274,429 | |||||||||
STOCKHOLDERS' EQUITY | |||||||||||
Preferred stock, $0.001 par value; 50,000,000 authorized | |||||||||||
Series B: 53,032 issued and outstanding at September 30, 2020 and at June 30, 2020 | 53 | 53 | |||||||||
Common stock, $0.001 par value; 900,000,000 shares authorized; 37,412,519 shares issued and outstanding at September 30, 2020 and at June 30, 2020 | 37,412 | 37,412 | |||||||||
Additional paid-in capital | 9,330,913 | 9,330,913 | |||||||||
Accumulated other comprehensive loss | (72,030 | ) | (144,744 | ) | |||||||
Retained earnings | 12,145,696 | 9,926,262 | |||||||||
Total stockholders' equity | 21,442,044 | 19,149,896 | |||||||||
Total liabilities and stockholders' equity | $ | 27,891,229 | $ | 24,424,325 | |||||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | |||||||
Net revenue | ||||||||
Fund management - related party | $ | 7,036,301 | $ | 3,040,569 | ||||
Food products | 2,057,369 | 1,250,331 | ||||||
Security systems | 678,643 | 773,277 | ||||||
Beauty products and other | 972,744 | 963,673 | ||||||
Net revenue | 10,745,057 | 6,027,850 | ||||||
Cost of revenue | 2,399,151 | 1,769,393 | ||||||
Gross profit | 8,345,906 | 4,258,457 | ||||||
Operating expense | ||||||||
General and administrative expense | 1,911,045 | 1,117,149 | ||||||
Fund operations | 902,841 | 809,836 | ||||||
Marketing and advertising | 801,092 | 577,876 | ||||||
Depreciation and amortization | 166,071 | 149,663 | ||||||
Salaries and compensation | 1,696,244 | 1,543,022 | ||||||
Total operating expenses | 5,477,293 | 4,197,546 | ||||||
Income from operations | 2,868,613 | 60,911 | ||||||
Other income (expense) | ||||||||
Other income, net | 118,625 | 8,436 | ||||||
Interest and dividend income | 8,604 | 25,847 | ||||||
Interest expense | (10,083 | ) | (11,005 | ) | ||||
Total other income, net | 117,146 | 23,278 | ||||||
Income before income taxes | 2,985,759 | 84,189 | ||||||
Provision of income taxes | (766,325 | ) | (29,297 | ) | ||||
Net income | $ | 2,219,434 | $ | 54,892 | ||||
Weighted average shares of common stock | ||||||||
Basic | 37,412,519 | 37,325,019 | ||||||
Diluted | 38,473,159 | 38,385,659 | ||||||
Net income per common share | ||||||||
Basic | $ | 0.06 | $ | 0.00 | ||||
Diluted | $ | 0.06 | $ | 0.00 | ||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
| Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | |||||||
Net income | $ | 2,219,434 | $ | 54,892 | ||||
Other comprehensive income: | ||||||||
Foreign currency translation gain | 72,714 | 33,949 | ||||||
Comprehensive income | $ | 2,292,148 | $ | 88,841 | ||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTH PERIODs ENDING September 30, 2020 and September 30, 2019
(UNAUDITED)
Period Ending September 30, 2020 | Preferred Stock (Series B) | Common Stock | ||||||||||||||||||||||||||||||
| Number of Shares | Amount | Number of Shares | Par Value | Additional Paid - in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stockholders' Equity | |||||||||||||||||||||||||
Balance at July 1, 2020 | 53,032 | $ | 53 | 37,412,519 | $ | 37,412 | $ | 9,330,913 | $ | (144,744 | ) | $ | 9,926,262 | $ | 19,149,896 | |||||||||||||||||
Gain on currency translation | - | - | - | - | - | 72,714 | - | 72,714 | ||||||||||||||||||||||||
Net income | - | - | - | - | - | - | 2,219,434 | 2,219,434 | ||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 53,032 | $ | 53 | $ | 37,412,519 | $ | 37,412 | $ | 9,330,913 | $ | (72,030 | ) | $ | 12,145,696 | $ | 21,442,044 | |||||||||||||||
Period Ending September 30, 2019 | Preferred Stock (Series B) | Common Stock | ||||||||||||||||||||||||||||||
| Number of Shares | Amount | Number of Shares | Par Value | Additional Paid - in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stockholders' Equity | |||||||||||||||||||||||||
Balance at July 1, 2019 | 53,032 | $ | 53 | 37,237,519 | $ | 37,237 | $ | 9,178,838 | $ | (175,659 | ) | $ | 8,152,861 | 17,193,330 | ||||||||||||||||||
Gain on currency translation | - | - | - | - | - | 33,949 | - | 33,949 | ||||||||||||||||||||||||
Common stock issued for services | - | - | 175,000 | 175 | - | 175 | ||||||||||||||||||||||||||
Common stock issued for services - earned (1) | 37,366 | 37,366 | ||||||||||||||||||||||||||||||
Net income | - | - | - | - | - | - | 54,892 | 54,892 | ||||||||||||||||||||||||
Balance at September 30, 2019 | 53,032 | $ | 53 | 37,412,519 | $ | 37,412 | $ | 9,216,204 | $ | (141,710 | ) | $ | 8,207,753 | 17,319,712 | ||||||||||||||||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Three Month Period Ended | ||||||||
| September 30, | ||||||||
| 2020 | 2019 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 2,219,434 | $ | 54,892 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 166,071 | 149,663 | ||||||
Stock based vendor compensation | - | 37,541 | ||||||
Bad debt expense | 13,749 | - | ||||||
Unrealized gain on investments | (1,067 | ) | (94 | ) | ||||
Gain on disposal of equipment | (2,100 | ) | - | |||||
Operating lease right-of-use asset - non-cash lease cost | 128,320 | 108,835 | ||||||
Decrease (increase) in current assets: | ||||||||
Accounts receivable | (205,324 | ) | 39,506 | |||||
Accounts receivable - related party | 433,110 | 48,377 | ||||||
Prepaid income taxes and tax receivable | 859,118 | 540,808 | ||||||
Inventories | (137,859 | ) | (67,549 | ) | ||||
Other current assets | 134,208 | 280,145 | ||||||
Decrease (increase) in current liabilities: | ||||||||
Accounts payable and accrued expenses | (179,660 | ) | (302,275 | ) | ||||
Operating lease liabilities | (129,324 | ) | (108,431 | ) | ||||
Deferred taxes | - | - | ||||||
Expense waivers - related party | 306,653 | (112,726 | ) | |||||
Net cash provided by operating activities | 3,605,329 | 668,692 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Cash paid for acquisition of business | (723,150 | ) | - | |||||
Purchase of real estate and equipment - net of disposal | (5,657 | ) | (645,817 | ) | ||||
Purchase of investments | (2,694 | ) | (18,245 | ) | ||||
Net cash (used in) provided by investing activities | (731,501 | ) | (664,062 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Loans - real estate, property and equipment | - | 393,353 | ||||||
Repayment of property and equipment loans | (3,282 | ) | (87,298 | ) | ||||
Net cash provided by (used in) financing activities | (3,282 | ) | 306,055 | |||||
Effect of exchange rate change on cash and cash equivalents | 210,997 | 110,744 | ||||||
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3,081,543 | 421,429 | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE | 9,826,042 | 6,495,251 | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | $ | 12,907,585 | $ | 6,916,680 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the period for: | ||||||||
Interest paid | $ | 3,963 | 4,885 | |||||
Income taxes (refunded) paid | $ | (238,458 | ) | $ | 159,363 | |||
Non-cash financing and investing activities: | ||||||||
Reclassification of acquisition deposit | $ | 122,111 | $ | - | ||||
Purchase price payable | $ | 277,577 | $ | - | ||||
Acquisition of operating right-of-use assets through operating lease obligations | $ | - | $ | 1,150,916 | ||||
SOURCE: Concierge Technologies, Inc.
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