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Concierge Technologies Reports Fiscal First Quarter Financial Results

·11 min read

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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https://www.accesswire.com/616978/Concierge-Technologies-Reports-Fiscal-First-Quarter-Financial-Results