Revenues increase 49% to $39.9 million
Net income advances more than threefold to $5.8 million
Total assets rise 29% to $31.5 million
San Clemente, Calif., Sept. 22, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Concierge Technologies, Inc. (OTC: CNCG), a diversified global holding firm, today reported sharply higher financial results for the fiscal year ended June 30, 2021, compared with the prior fiscal year.
Revenues rose 49 percent to $39.9 million from $26.7 million for the prior year. Net income for the 2021 fiscal year advanced more than threefold to $5.8 million, equal to $0.15 per share, from $1.7 million, equal to $0.05 per share, for fiscal 2020.
The Company attributed the favorable performance principally to an increase in assets under management (AUM) by its Wainwright Holdings subsidiary, the holding company for United States Commodity Funds and USCF Advisors (together, “USCF”), currently managing two exchange-traded funds and eight exchange-traded products, all listed on the New York Stock Exchange. Average AUM had increased to $4.9 billion for the 2021 fiscal year from $3.0 billion for fiscal 2020.
Concierge Technologies’ “Other” operating segment – which consists of Gourmet Foods, Brigadier Security Systems and Original Sprout – registered higher total revenues for fiscal 2021, paced by Gourmet Foods, which completed an acquisition early in fiscal 2021. Total revenue for the “Other” segment was $14.7 million, up from $11.2 million for the prior fiscal year ended June 30, 2020. Net income attributed to the “Other” segment totaled approximately $600,000 for fiscal 2021, as compared with $800,000 for the prior fiscal year. The decline reflected a combination of one-time costs associated with relocation of facilities and the negative effects of the continuing COVID-19 pandemic.
The Company’s balance sheet remained strong at June 30, 2021, with total assets of $31.5 million, of which $16.1 million are held in cash and cash equivalents, up from total assets of $24.3 million at June 30, 2020. The Company has essentially no debt.
“Fiscal 2021 was an active and highly productive year,” said David Neibert, Concierge Technologies’ Chief Operations Officer. “In July 2020, we completed the acquisition of New Zealand-based Printstock Products, which prints wrappers for food products, including Gourmet Foods and others, and whose operations have been consolidated into Gourmet Foods. Our newest subsidiary, Marygold & Co., made excellent progress developing a proprietary banking and financial services app for sending, receiving, spending and saving securely through mobile devices. Marygold is now working toward completion of the testing phase prior to launch and widescale marketing. Brigadier Security Systems has pivoted nicely from residential hardware as a primary market to focus on commercial and public building clientele, where COVID-19 poses fewer restrictions to complete system installations. Lastly, Original Sprout completed a relocation to spacious new facilities in preparation for staging its entry into the big box distribution channel.”
Nicholas Gerber, Chief Executive Officer, said, “Adding to our financial services offerings, subsequent to the close of fiscal 2021 we formed a wholly owned subsidiary, Marygold & Co. (UK) Limited, which, in turn, signed a definitive agreement to acquire Tiger Financial & Asset Management Limited, an established and certified investment advisor in the U.K. Tiger’s core business is managing clients’ financial wealth across a diverse range of products, which eventually we hope will include services as provided by Marygold in the United States. The transaction is expected to close before the end of 2021 calendar year, subject to customary closing conditions, including approval of the U.K. Financial Conduct Authority (FCA).
“Our strategy of building a profitable, value-oriented business that provides stability for our shareholders is working well, as we build a solid foundation for the long-term. We look forward to continuing our progress in the years ahead,” Gerber added.
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. Acquired by Gourmet Foods in July 2020, Printstock Products Limited https://www.printstocknz.com/, is a printer of specialized food wrappers and is located in Napier, New Zealand. Its operations are consolidated with those of Gourmet Foods.
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 under the brands Brigadier Security Systems in Saskatoon and Elite Security in Regina, Canada.
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, Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada among other areas.
Marygold & Co., formed in the U.S. during 2019 and operating from offices in Denver, CO, together with its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, was established to explore opportunities in the financial technology sector. The Company continues in the development stage as it works toward introduction of a fintech mobile banking app. https://marygoldandco.com/
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, printing, 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. Such forward-looking statements, including, but not limited to, Marygold & Co. (UK) Limited gaining approval from the FCA, the timing of the completing the transaction and anticipated introduction of Marygold & Co.’s financial services business in the U.K. and EU next year, should not be read as guarantees 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 generally identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "looks to," "will," "should," "plan," "intend," "on condition," "target," "see," "potential," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes due to a number of important factors, including business effects, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov or the Company’s website at www.conciergetechnology.net. The Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of current information, future events or otherwise.
Media and investors, for more Information, contact:
Roger S. Pondel
PondelWilkinson Inc.
310-279-5965
rpondel@pondel.com
Contact the Company:
David Neibert, Chief Operations Officer
949-429-5370
dneibert@conciergetechnology.net
(Financial tables follow…)
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| June 30, 2021 | June 30, 2020 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 16,072,955 | $ | 9,813,188 | ||||
| Accounts receivable, net | 1,070,541 | 717,841 | ||||||
| Accounts receivable - related parties | 2,038,054 | 2,610,917 | ||||||
| Inventories | 1,951,792 | 1,174,603 | ||||||
| Prepaid income tax and tax receivable | 747,343 | 857,793 | ||||||
| Investments, at fair value | 1,828,926 | 1,820,516 | ||||||
| Other current assets | 399,524 | 603,944 | ||||||
| Total current assets | 24,109,135 | 17,598,802 | ||||||
| Restricted cash | 13,989 | 12,854 | ||||||
| Property, plant and equipment, net | 1,573,445 | 1,197,192 | ||||||
| Operating lease right-of-use asset | 1,058,199 | 733,917 | ||||||
| Goodwill | 1,043,473 | 915,790 | ||||||
| Intangible assets, net | 2,341,803 | 2,541,285 | ||||||
| Deferred tax assets, net - United States | 827,476 | 767,472 | ||||||
| Other assets, long - term | 540,160 | 523,607 | ||||||
| Total assets | $ | 31,507,680 | $ | 24,290,919 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued expenses | $ | 3,862,874 | $ | 2,843,616 | ||||
| Expense waivers – related parties | 69,684 | 421,892 | ||||||
| Operating lease liabilities, current portion | 513,071 | 323,395 | ||||||
| Notes payable - related parties | 603,500 | 3,500 | ||||||
| Loans-property and equipment, current portion | 15,094 | 13,196 | ||||||
| Total current liabilities | 5,064,223 | 3,605,599 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Notes payable - related parties | - | 600,000 | ||||||
| Loans-property and equipment, net of current portion | 379,804 | 359,845 | ||||||
| Operating lease liabilities, net of current portion | 607,560 | 447,062 | ||||||
| Deferred tax liabilities, net - foreign | 169,429 | 128,517 | ||||||
| Total long-term liabilities | 1,156,793 | 1,535,424 | ||||||
| Total liabilities | 6,221,016 | 5,141,023 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Convertible preferred stock, $0.001 par value; 50,000,000 authorized | ||||||||
| Series B: 49,360 at June 30, 2021 and 53,032 issued and outstanding at June 30, 2020 | 49 | 53 | ||||||
| Common stock, $0.001 par value; 900,000,000 shares authorized; 37,485,959 shares issued and outstanding at June 30, 2021 and 37,412,519 at June 30, 2020 | 37,486 | 37,413 | ||||||
| Additional paid-in capital | 9,330,843 | 9,330,912 | ||||||
| Accumulated other comprehensive income (loss) | 142,581 | (144,744 | ) | |||||
| Retained earnings | 15,775,705 | 9,926,262 | ||||||
| Total stockholders' equity | 25,286,664 | 19,149,896 | ||||||
| Total liabilities and stockholders' equity | $ | 31,507,680 | $ | 24,290,919 | ||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
| Year Ended | Year Ended | |||||||
| June 30, 2021 | June 30, 2020 | |||||||
| Net revenue | ||||||||
| Fund management - related party | $ | 25,169,182 | $ | 15,459,061 | ||||
| Food products | 8,263,267 | 4,745,821 | ||||||
| Security systems | 2,715,487 | 2,660,153 | ||||||
| Beauty products and other | 3,756,512 | 3,883,953 | ||||||
| Net revenue | 39,904,448 | 26,748,988 | ||||||
| Cost of revenue | 9,290,616 | 6,483,171 | ||||||
| Gross profit | 30,613,832 | 20,265,817 | ||||||
| Operating expense | ||||||||
| General and administrative expense | 7,140,870 | 4,447,563 | ||||||
| Fund operations | 3,658,593 | 3,176,214 | ||||||
| Marketing and advertising | 2,952,295 | 2,601,104 | ||||||
| Depreciation and amortization | 599,979 | 601,826 | ||||||
| Salaries and compensation | 8,843,618 | 7,523,083 | ||||||
| Total operating expenses | 23,195,355 | 18,349,790 | ||||||
| Income from operations | 7,418,477 | 1,916,027 | ||||||
| Other income: | ||||||||
| Interest and dividend income | 28,823 | 96,186 | ||||||
| Interest expense | (40,375 | ) | (41,100 | ) | ||||
| Other income, net | 227,976 | 365,250 | ||||||
| Total other income, net | 216,424 | 420,336 | ||||||
| Income before income taxes | 7,634,901 | 2,336,363 | ||||||
| Provision of income taxes | (1,785,458 | ) | (562,962 | ) | ||||
| Net income | $ | 5,849,443 | $ | 1,773,401 | ||||
| Weighted average shares of common stock | ||||||||
| Basic and diluted | 38,473,159 | 38,451,164 | ||||||
| Net income per share | ||||||||
| Basic and diluted | $ | 0.15 | $ | 0.05 | ||||
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the years ended | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 5,849,443 | $ | 1,773,401 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 599,979 | 601,826 | ||||||
| Stock-based vendor compensation | - | 152,250 | ||||||
| Deferred taxes | (19,092 | ) | 44,163 | |||||
| Bad debt expense | 9,753 | 5,746 | ||||||
| Inventory provision | 65,021 | 10,317 | ||||||
| Unrealized gain on investments | (582 | ) | (5,113 | ) | ||||
| Realized gain on sale of investments | - | (121,834 | ) | |||||
| Gain on disposal of equipment | 18,813 | - | ||||||
| Operating lease right of use asset - non-cash lease cost | 614,506 | 379,923 | ||||||
| (Increase) decrease in operating assets: | ||||||||
| Accounts receivable, net | (306,596 | ) | 193,546 | |||||
| Accounts receivable - related party | 572,863 | (1,573,771 | ) | |||||
| Deferred taxes, net | ||||||||
| Prepaid income taxes and tax receivable | 114,083 | 915,203 | ||||||
| Inventories | (787,081 | ) | (202,079 | ) | ||||
| Other current assets | 223,590 | (256,656 | ) | |||||
| Increase (decrease) in operating liabilities: | ||||||||
| Accounts payable and accrued expenses | 978,726 | 28,963 | ||||||
| Operating lease liabilities | (361,823 | ) | (380,460 | ) | ||||
| Expense waivers - related party | (352,207 | ) | 96,070 | |||||
| Net cash provided by operating activities | 7,219,396 | 1,661,495 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Cash paid for acquisition of business | (1,115,545 | ) | - | |||||
| Cash paid for internally developed software | - | (217,990 | ) | |||||
| Purchase of property, plant and equipment | (77,721 | ) | (559,274 | ) | ||||
| Sale of investments | - | 4,121,742 | ||||||
| Purchase of investments | (7,827 | ) | (2,043,031 | ) | ||||
| Net cash (used in) provided by investing activities | (1,201,093 | ) | 1,301,447 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from property and equipment loans | - | 385,728 | ||||||
| Repayment of property and equipment loans | (28,434 | ) | (96,659 | ) | ||||
| Net cash (used in) provided by financing activities | (28,434 | ) | 289,069 | |||||
| Effect of exchange rate change on cash, cash equivalents and restricted cash | 271,033 | 78,780 | ||||||
| NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 6,260,902 | 3,330,791 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE | 9,826,042 | 6,495,251 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | $ | 16,086,944 | $ | 9,826,042 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest paid | $ | 16,095 | $ | 16,754 | ||||
| Income taxes paid (refunded), net | $ | 3,063,781 | $ | (494,741 | ) | |||
| NON CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Reclassification of building deposit from other current assets to property, plant and equipment, net | $ | - | $ | 178,276 | ||||
| Reclassification of business acquisition deposit | $ | 122,111 | $ | - | ||||
| Establishment of operating right-of-use assets through operating lease obligations | $ | 730,741 | $ | 1,150,916 |
