- Revenues Nearly Double, Stockholders' Equity Continues to Rise Over Prior Year -
SAN CLEMENTE, CA / ACCESSWIRE / February 16, 2021 / Concierge Technologies, Inc. (OTCQB:CNCG), a diversified global holding firm, today announced financial results for the second fiscal quarter ended December 31, 2020, with strong performances in revenues, net income and stockholders' equity.
The Company reported that for the three months ended December 31, 2020, revenues continued their increase to $10.0 million from $5.8 million for the comparable prior year period. For the six months ended December 31, 2020, revenues advanced to $20.7 million from $11.8 million for the same period last year. Net income for the most recent three-month period rose to $1.4 million, equal to $0.04 per share, from a net loss of $75,000, equal to breakeven per share, for the comparable prior year period. Year-to-date net income advanced to $3.6 million, equal to $.09 per share on a fully diluted basis, from a net loss of $20,000, or breakeven per share, a year ago.
Concierge said the primary driver for the fiscal 2021 improvement was an increase in assets under management (AUM) at the Company's Wainwright Holdings funds management subsidiary to approximately $4.8 billion as of December 31, 2020, compared with $2.0 billion at the same time a year ago. Wainwright, which operates under the name, USCF Investments, currently manages nine commodity-oriented exchange-traded products (ETPs) that are listed on the New York Stock Exchange.
The Company's "Other" business segment, which comprised approximately 38% of total revenues in the most recent quarter, versus 51% of revenues in last year's second quarter, were up approximately $1 million year-over-year. The increase was due, in part, to the acquisition of Printstock Products Limited by the Company's New Zealand-based wholly owned subsidiary, Gourmet Foods. 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 second fiscal quarter. Cash and cash equivalents grew to $13.3 million from $9.8 million at June 30, 2020. Total stockholders' equity increased to $23.1 million at December 31, 2020 from $19.1 million at the end of fiscal 2020. The company has essentially no debt.
"The increase in AUM notwithstanding, the performance of our Other subsidiaries also accounted for a significant portion of our revenue stream and operating income," said David Neibert, Chief Operations Officer. "Regardless of the expected variations within the financial sector, we have proven that our model of diversification and decentralized management structure can, and does, produce a sustainable income with significant growth potential. This has become all the more apparent in today's altered world because of the pandemic."
"I am more than pleased with the performance of the management teams at each subsidiary, along with the support of our corporate staff during this difficult calendar year of lock downs, virtual meetings, work-from-home routines and a host of other hurdles," added Nicholas Gerber, Chief Executive Officer. "During this time, we have managed to acquire yet another profitable company in New Zealand, and to further develop an exciting fintech app at our wholly owned subsidiary, Marygold & Co, which we hope to launch later in the year. All this, while continuing to post profits and build value for our shareholders. I look forward, as I'm sure everyone does, to a return to normalcy and using our new-found strengths to continuing growing our company and adding shareholder value in the future."
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.
Marygold & Co, https://marygoldandco.com formed in November 2019 as a development stage corporation headquartered in Denver, CO, seeking to explore opportunities in the Fintech space. Marygold plans to launch a proprietary Fintech mobile app later in the current year.
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, continue growing the company and adding shareholder value, 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.
For more information contact:
Concierge Technologies, Inc.
info@conciergetechnology.net
Tel: 949-429-5370
Financial Tables Follow
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| December 31, 2020 | June 30, 2020 | ||||||||||
| (AUDITED) | |||||||||||
| ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | 13,322,054 | $ | 9,813,188 | |||||||
Accounts receivable, net | 1,535,480 | 717,841 | |||||||||
Accounts receivable - related parties | 2,092,552 | 2,610,917 | |||||||||
Inventories | 1,893,717 | 1,174,603 | |||||||||
Prepaid income tax and tax receivable | 570,539 | 857,793 | |||||||||
Investments | 1,826,421 | 1,820,516 | |||||||||
Other current assets | 390,069 | 603,944 | |||||||||
Total current assets | 21,630,832 | 17,598,802 | |||||||||
Restricted cash | 14,464 | 12,854 | |||||||||
Property and equipment, net | 1,632,466 | 1,197,192 | |||||||||
Operating lease right-of-use asset | 1,421,612 | 733,917 | |||||||||
Goodwill | 1,043,473 | 915,790 | |||||||||
Intangible assets, net | 2,505,157 | 2,541,285 | |||||||||
Deferred tax assets, net | 900,878 | 900,878 | |||||||||
Other assets, long - term | 548,695 | 523,607 | |||||||||
Total assets | $ | 29,697,577 | $ | 24,424,325 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable and accrued expenses | $ | 2,827,631 | $ | 2,843,616 | |||||||
Expense waivers - related parties | 975,228 | 421,892 | |||||||||
Operating lease liabilities, current portion | 626,273 | 323,395 | |||||||||
Notes payable - related parties | 3,500 | 3,500 | |||||||||
Loans - property and equipment, current portion | 14,380 | 13,196 | |||||||||
Total current liabilities | 4,447,012 | 3,605,599 | |||||||||
LONG TERM LIABILITIES | |||||||||||
Notes payable - related parties | 600,000 | 600,000 | |||||||||
Loans - property and equipment, net of current portion | 376,882 | 359,845 | |||||||||
Long-term operating lease liabilities, net of current portion | 852,435 | 447,062 | |||||||||
Deferred tax liabilities | 329,984 | 261,923 | |||||||||
Total long-term liabilities | 2,159,301 | 1,668,830 | |||||||||
Total liabilities | 6,606,313 | 5,274,429 | |||||||||
STOCKHOLDERS' EQUITY | |||||||||||
Preferred stock, $0.001 par value; 50,000,000 authorized | |||||||||||
Series B: 53,032 issued and outstanding at December 31, 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 December 31, 2020 and at June 30, 2020 | 37,412 | 37,412 | |||||||||
Additional paid-in capital | 9,330,913 | 9,330,913 | |||||||||
Accumulated other comprehensive income (loss) | 225,402 | (144,744 | ) | ||||||||
Retained earnings | 13,497,484 | 9,926,262 | |||||||||
Total stockholders' equity | 23,091,264 | 19,149,896 | |||||||||
Total liabilities and stockholders' equity | $ | 29,697,577 | $ | 24,424,325 | |||||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three-Month Periods Ended December 31, | For the Six-Month Periods Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net revenue | ||||||||||||||||
Fund management - related party | $ | 6,149,415 | $ | 2,839,718 | $ | 13,185,716 | $ | 5,880,287 | ||||||||
Food products | 2,134,402 | 1,320,357 | 4,191,974 | 2,570,334 | ||||||||||||
Security systems | 617,780 | 733,533 | 1,297,222 | 1,506,753 | ||||||||||||
Beauty products and other | 1,060,225 | 902,928 | 2,032,968 | 1,866,601 | ||||||||||||
Net revenue | 9,961,822 | 5,796,536 | 20,707,880 | 11,823,975 | ||||||||||||
Cost of revenue | 2,378,024 | 1,724,507 | 4,781,584 | 3,493,827 | ||||||||||||
Gross profit | 7,583,798 | 4,072,029 | 15,926,296 | 8,330,148 | ||||||||||||
Operating expense | ||||||||||||||||
General and administrative expense | 1,641,196 | 986,392 | 3,555,259 | 2,106,392 | ||||||||||||
Fund operations | 799,658 | 727,450 | 1,702,498 | 1,537,287 | ||||||||||||
Marketing and advertising | 742,529 | 634,871 | 1,540,351 | 1,210,003 | ||||||||||||
Depreciation and amortization | 177,225 | 150,485 | 343,124 | 300,148 | ||||||||||||
Salaries and compensation | 2,485,357 | 1,673,443 | 4,181,577 | 3,216,485 | ||||||||||||
Total operating expenses | 5,845,965 | 4,172,641 | 11,322,809 | 8,370,315 | ||||||||||||
Income (loss) from operations | 1,737,833 | (100,612 | ) | 4,603,487 | (40,167 | ) | ||||||||||
Other income (expense): | ||||||||||||||||
Other income (expense) | 55,695 | (31,347 | ) | 176,638 | (22,458 | ) | ||||||||||
Interest and dividend income | 6,799 | 26,403 | 15,442 | 52,239 | ||||||||||||
Interest expense | (10,141 | ) | (10,246 | ) | (20,225 | ) | (21,248 | ) | ||||||||
Total other income (expense), net | 52,353 | (15,190 | ) | 171,855 | 8,533 | |||||||||||
Income (loss) before income taxes | 1,790,186 | (115,802 | ) | 4,775,342 | (31,634 | ) | ||||||||||
(Provision) benefit of income taxes | (438,398 | ) | 40,888 | (1,204,120 | ) | 11,612 | ||||||||||
Net income (loss) | $ | 1,351,788 | $ | (74,914 | ) | $ | 3,571,222 | $ | (20,022 | ) | ||||||
Weighted average shares of common stock | ||||||||||||||||
Basic | 37,412,519 | 37,412,519 | 37,412,519 | 37,368,769 | ||||||||||||
Diluted | 38,473,159 | 37,412,519 | 38,473,159 | 37,368,769 | ||||||||||||
Net income (loss) per common share | ||||||||||||||||
Basic | $ | 0.04 | $ | (0.00 | ) | $ | 0.10 | $ | (0.00 | ) | ||||||
Diluted | $ | 0.04 | $ | (0.00 | ) | $ | 0.09 | $ | (0.00 | ) | ||||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | 1,351,788 | $ | (74,914 | ) | $ | 3,571,222 | $ | (20,022 | ) | ||||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation gain | 297,432 | 135,588 | 370,146 | 169,537 | ||||||||||||
Comprehensive income | $ | 1,649,220 | $ | 60,674 | $ | 3,941,368 | $ | 149,515 | ||||||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE AND SIX MONTH PERIODs ENDING December 31, 2020 and December 31, 2019
(UNAUDITED)
Period Ending December 31, 2020 | Preferred Stock (Series B) | Common Stock | ||||||||||||||||||||||||||||||
| Number of Shares | Amount | Number of Shares | Par Value | Additional Paid - in Capital | Accumulated Other Comprehensive (Loss) Income | 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 | |||||||||||||||||
Gain on currency translation | - | - | - | - | - | 297,432 | - | 297,432 | ||||||||||||||||||||||||
Net income | - | - | - | - | - | - | 1,351,788 | 1,351,788 | ||||||||||||||||||||||||
Balance at December 31, 2020 | 53,032 | $ | 53 | 37,412,519 | $ | 37,412 | $ | 9,330,913 | $ | 225,402 | $ | 13,497,484 | $ | 23,091,264 | ||||||||||||||||||
Period Ending December 31, 2019 | Preferred Stock (Series B) | Common Stock | ||||||||||||||||||||||||||||||
| Number of Shares | Amount | Number of Shares | Par Value | Additional Paid - in Capital | Accumulated Other Comprehensive (Loss) Income | 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 | |||||||||||||||||
Gain on currency translation | - | - | - | - | - | 135,588 | - | 135,588 | ||||||||||||||||||||||||
Common stock issued for services - earned (1) | - | - | - | - | 76,751 | - | - | 76,751 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (74,914 | ) | (74,914 | ) | ||||||||||||||||||||||
Balance at December 31, 2019 | 53,032 | $ | 53 | 37,412,519 | $ | 37,412 | $ | 9,292,955 | $ | (6,122 | ) | $ | 8,132,839 | $ | 17,457,137 | |||||||||||||||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Six-Month Period Ended | ||||||||
| December 31, | ||||||||
| 2020 | 2019 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | 3,571,222 | $ | (20,022 | ) | |||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 343,124 | 300,148 | ||||||
Stock based vendor compensation | - | 114,292 | ||||||
Bad debt expense | 14,075 | 91 | ||||||
Impairment to inventory value | 32,688 | - | ||||||
Unrealized gain (loss) on investments | (1,128 | ) | 688 | |||||
Gain on disposal of equipment | (2,122 | ) | - | |||||
Operating lease right-of-use asset - non-cash lease cost | 231,879 | 184,876 | ||||||
Decrease (increase) in current assets: | ||||||||
Accounts receivable | (373,656 | ) | 130,917 | |||||
Accounts receivable - related party | 518,364 | 34,437 | ||||||
Prepaid income taxes and tax receivable | 292,905 | 427,260 | ||||||
Inventories | (149,153 | ) | (207,324 | ) | ||||
Other current assets | 82,433 | 94,986 | ||||||
Decrease (increase) in current liabilities: | ||||||||
Accounts payable and accrued expenses | (466,096 | ) | (781,736 | ) | ||||
Operating lease liabilities | (233,222 | ) | (184,068 | ) | ||||
Expense waivers - related party | 553,336 | (37,702 | ) | |||||
Net cash provided by operating activities | 4,414,649 | 56,843 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Cash paid for acquisition of business | (993,435 | ) | - | |||||
Purchase of real estate and equipment | (30,213 | ) | (495,579 | ) | ||||
Purchase of investments | (411 | ) | (29,060 | ) | ||||
Net cash used in investing activities | (1,024,059 | ) | (524,639 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Loans - real estate, property and equipment | - | 404,518 | ||||||
Repayment of property and equipment loans | (3,445 | ) | (94,613 | ) | ||||
Net cash (used in) provided by financing activities | (3,445 | ) | 309,905 | |||||
Effect of exchange rate change on cash and cash equivalents | 123,331 | 208,393 | ||||||
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3,510,476 | 50,502 | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE | 9,826,042 | 6,495,251 | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | $ | 13,336,518 | $ | 6,545,753 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the period for: | ||||||||
Interest paid | $ | 7,985 | $ | 8,990 | ||||
Income taxes paid, net of refunds | $ | 859,320 | $ | 159,363 | ||||
Non-cash financing and investing activities: | ||||||||
Acquisition of operating right-of-use assets through operating lease obligations | $ | 730,741 | $ | 1,150,916 | ||||
Reclassification of acquisition deposit | $ | 122,111 | $ | - | ||||
Reclassification of building deposit | $ | - | $ | 178,276 | ||||
The accompanying notes found in the Company's Form 10-Q filed on February 16, 2021 are an integral part of these consolidated financial statements.
SOURCE: Concierge Technologies, Inc.
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