- September 28, 2018
- Posted by: Concierge Technology
- Category: News
San Clemente, Calif., September 28, 2018—Concierge Technologies, Inc. (OTCQB: CNCG) (the “Company” or “Concierge”), a diversified global holding firm, today announced financial results for the fiscal year and fourth quarter ended June 30, 2018.
For the year ended June 30, 2018, Concierge reported revenues of $29.0 million, compared with $32.0 million for the prior year. Pre-tax operating income for the year ended June 30, 2018 was $2.8 million, as compared with $6.7 million for the year ended June 30, 2017. The Company reported after-tax net income of $1.7 million, equal to $0.05 per share, for fiscal 2018, versus $5.2 million, or $0.14 per share, for the prior year. Per share amounts were calculated on 38,298,159 shares fully diluted and outstanding for both 2018 and 2017 fiscal years.
The Company reported lower revenues and net profit this year due to a lower amount of average assets under management (AUM) held by its largest business unit, USCF Investments (Wainwright Holdings), which were down from $4.5 billion to $3.4 billion for the fiscal years ended June 30, 2017 and 2018, respectively. Revenues earned by USCF Investments (Wainwright Holdings) are directly related to AUM, which the Company believes are subject to fluctuations in the commodities market.
Concierge said its other business units—Gourmet Foods, Brigadier Security Systems and Original Sprout—all recorded increases in net revenues and net income for the current year. At the 2018 fiscal year-end, total assets increased to $23.0 million from $19.5 million a year earlier, with combined cash and accounts receivable increasing by approximately $1 million over the prior year.
For the fourth fiscal quarters ended June 30, 2018 and 2017, Concierge reported revenues of $7.4 million and $7.6 million, respectively. Net income for the 2018 fourth quarter amounted to approximately $900,000, equal to $0.02 per share, compared with net income of $1.7 million, or $0.04 per share, for the corresponding period a year ago.
“As Concierge is still in its formative stages, it is gratifying to have achieved profitable operations for the year, despite the lower AUM in our investment management subsidiary, USCF Investments, which was market driven,” said Nicholas Gerber, Chief Executive Officer of Concierge. “USCF Investments has been in the investment management industry a long time, and seen downturns in commodities before as investors move from one strategy to the next. It has also been there for the upswings as conditions change. With a decline in AUM last year at USCF Investments, due, in part, to uncertainty in the commodity ETF market sector, Concierge bolstered operating results through the performance of our other subsidiary companies. We’re also pleased to have added Original Sprout to the Concierge family during the year.
“Building for the future, our USCF Investments subsidiary is in the process of developing new innovative products that, in part, will help mitigate some of the inherent swings of the commodity funds. This process takes time and investment dollars to complete, but we believe will be well worth it.. We are investing in the short-term to achieve our collective long-term objective of creating and enhancing shareholder value through new products and internal growth, as well as through conservative, accretive acquisitions of companies with strong management teams and solid growth prospects,” Gerber added.
David Neibert, Concierge’s Chief Operations Officer, said, “Our underlying strategy is to provide balance among our businesses and offset cyclicality by owning and operating companies in diverse sectors. We provide our operating management teams with expert resources that allow them to concentrate on profitable growth of the businesses they each know well. Where it makes sense, we maximize our strengths and take advantage of synergies, one example of which is leveraging the existing distribution channels of our New Zealand-based Gourmet Foods subsidiary to introduce Original Sprout products to the New Zealand market.”
Acquired by Concierge at the end of 2017, California-based Original Sprout, www.originalsprout.com, produces and distributes a full line of natural, 100% vegan, safe, non-toxic hair and skin care products, including a “reef safe” sun screen, in the U.K., the E.U., Turkey, the Middle East, Taiwan, Singapore, Hong Kong, Malaysia, Canada, the U.S.A. and its territories. Gourmet Foods, acquired in 2015, https://gourmetfoodsltd.co.nz/, 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.
The Company’s USCF Investments operation, www.uscfinvestments.com, acquired as part of the Wainwright Holdings transaction in December 2016 and based in Oakland, Calif., with nearly $3 billion in AUM, serves as manager, operator or investment adviser to exchange traded funds and products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca. 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.
About Concierge Technologies, Inc.
Founded in 1996, Concierge Technologies is a global holding firm, with 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.
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, adding value through accretive acquisitions, 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.