-Company Files Annual Report Form 10-K with Profitable Results-
-Balance Sheet Remains Strong, Stockholder Equity Increases Despite Downturn in Commodities-
San Clemente, Calif., September 30, 2019—Concierge Technologies, Inc. (OTCQB: CNCG), a diversified global holding firm, today announced financial results for the fiscal year and fourth quarter ended June 30, 2019.
For the year ended June 30, 2019, the company reported revenues of $26.9 million, compared with $28.7 million for the prior year. Concierge reported net income of $261,849, equal to $0.01 per fully diluted share, for fiscal 2019, versus $1.7 million, or $.05 per fully diluted share, for the prior year.
Concierge’s balance sheet remained strong at fiscal year-end, with cash and cash equivalents of $6.5 million in addition to $3.8 million in cash investments, essentially no debt, and total assets of $21.3 million.
The company said that, as expected, results for fiscal 2019 were impacted primarily by a continuing market-related decline in average assets under management (AUM) to $2.7 billion from $3.4 billion at its Wainwright Holdings funds management subsidiary. Wainwright, under the operating name, USCF Investments, currently manages ten commodity exchange-traded products (ETPs) and three exchange-traded funds (ETFs) that are all listed on the New York Stock Exchange.
Concierge said each of its other business units—Gourmet Foods, Brigadier Security Systems and Original Sprout—recorded increases in revenues and income.
For the fourth fiscal quarter ended June 30, 2019 and 2018, Concierge reported revenues of $5.1 million and $7.4 million, respectively. The decline in revenues was a direct result of lower AUM in 2019 as compared with 2018. Net operating income for the 2019 fiscal fourth quarter totaled approximately $500,000 before depreciation expense, accrued incentive bonuses and income tax, resulting in a net loss of approximately $116,000 or ($0.00) per share, compared with net income of approximately $900,000, or $0.02 per fully diluted share, for the 2018 fiscal fourth quarter.
“Our fourth quarter is when we accrue the full year incentive bonuses, calculate and accrue income tax domestically and abroad, and otherwise accrue all of the expenses anticipated to apply to the fiscal year just ended,” explained David Neibert, Chief Operations Officer, “thus this quarter presents a skewed operating result.”
“Our long-term strategy is to build a diverse, profitable company, with balance among our businesses to offset cyclicality in any one sector,” said Nicholas Gerber, Chief Executive Officer of Concierge Technologies. “Concierge established its current holding company structure just four years ago. During this time, we have put together a talented team and built a solid, high quality platform from which to grow by acquisition of profitable companies in our current and new sectors, as well as organically.”
Stuart Crumbaugh, Chief Financial Officer, added, “Our three non-financial services subsidiaries combined have been accounting for an increasing percentage of the company’s total revenues, offsetting, in part, the dominance of our financial services business unit during this cyclical downturn. In fiscal 2019, the non-financial operating units accounted for 44 percent of total revenues on a combined basis, versus 35 percent in fiscal 2018 and 25 percent in fiscal 2017. The table below depicts this trend.
“While this past year our fund management business experienced a decline in AUM, the business is fundamentally sound and continues to be profitable. Three years ago, AUM was $4.5 billion, and as is the nature of commodity-focused financial products, we fully expect the sector to rebound,” Crumbaugh said.
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.
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 13 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 and Canada.
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.
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, growing the business platform and an expectation for commodity-related financial products to rebound, 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.