Concierge Technologies Reports Financial Results for Third Fiscal Quarter

Rhea-AI Summary

Concierge Technologies, Inc. (CNCG) reported strong financial results for Q3 FY2021, with revenues increasing to $9.5 million from $5.9 million year-over-year. Year-to-date revenues reached $30.3 million, up from $17.7 million for the same period last year. Net income also improved, reporting $2.1 million in Q3 compared to a net loss of $208,000 last year. Assets under management at Wainwright Holdings surged to $5.1 billion. The company’s balance sheet strengthened with cash growing to $14.3 million and stockholders' equity at $24.7 million.

Positive

• Revenues increased to $9.5 million for Q3 FY2021, up from $5.9 million YoY.
• Year-to-date revenues reached $30.3 million, a significant jump from $17.7 million.
• Net income for Q3 was $2.1 million, compared to a loss of $208,000 last year.
• Assets under management at Wainwright Holdings rose to $5.1 billion, up from $2.2 billion.
• Cash and cash equivalents grew to $14.3 million from $9.8 million.
• Total stockholders' equity increased to $24.7 million from $19.1 million.

Negative

• None.

- Revenues Continue to Rise Over Prior Year with Strong Performance by Subsidiaries -

SAN CLEMENTE, CA / ACCESSWIRE / May 17, 2021 / Concierge Technologies, Inc. (OTCQB:CNCG), a diversified global holding firm, today announced financial results for the third fiscal quarter ended March 31, 2021, with strong performances in revenues, net income and stockholders' equity.

The Company reported that for the three months ended March 31, 2021, revenues continued their rise to $9.5 million from $5.9 million for the comparable prior year period. For the nine months ended March 31, 2021, revenues advanced to $30.3 million from $17.7 million for the same period last year. Income before income tax for the most recent three-month period rose to $2.1 million, equal to $0.04 per share, from a net loss of $208,000, equal to breakeven per share, for the comparable prior year period. Year-to-date pre-tax income increased to $6.8 million, equal to $.13 per share on a fully diluted basis, from a net loss of $240,000, 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 $5.1 billion for the nine-month period ending March 31, 2021, compared with $2.2 billion at the same time a year ago. Wainwright, which operates under the name USCF Investments, manages commodity-oriented exchange-traded products (ETPs) that are listed on the New York Stock Exchange.

The Company's "Other" business segment, which comprised approximately 37% of total revenues in the most recent quarter, versus 49% of revenues in last year's third quarter, were up approximately $0.6 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 third fiscal quarter. Cash and cash equivalents grew to $14.3 million from $9.8 million at June 30, 2020. Total stockholders' equity increased to $24.7 million at March 31, 2021 from $19.1 million at June 30, 2020. The company has essentially no debt.

"During this third quarter we made significant progress in positioning our subsidiaries for continued growth. Original Sprout moved to a larger facility and continued its efforts to ease consumer access to its products through online platforms such as Costco.com and other large retailers. Brigadier Security Systems garnered an even larger share of the commercial and public building security monitoring business in Saskatchewan, while Gourmet Foods refocused on the lucrative convenience store business in New Zealand while profitably operating its recently acquired Printstock subsidiary which supplies food wrappers in New Zealand and Australia. Couple these initiatives with the continued robust AUM within USCF and we have strong confidence in future growth for the remainder of this fiscal year and beyond," said David Neibert, Chief Operations Officer. "The financial sector has a history of fluctuations, however we are successfully combating those effects through diversification in other profitable industries as well as expanding on our financial service offerings."

"This quarter we once again relied on our subsidiary management teams to endure virtual meetings and operate their businesses in adherence with COVID-19 restrictions worldwide. While we hoped to be back to normal operations by now, we planned for the long haul. Excellence at each subsidiary proved us correct in our thinking as both revenues and income were on the rise once again. While we are looking forward to the end of the pandemic, we are certain that our plans and processes to deal with it are more than sufficient. As such, we are moving forward with our strategy to introduce new product offerings, including Fintech applications through our Marygold and Co. subsidiary, and continue to seek out acquisition candidates." added Nicholas Gerber, Chief Executive Officer. "I'd like to thank our shareholders for their continued support and reiterate our goal to maximize shareholder value as we continue to grow."

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 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)

		March 31, 2021				June 30, 2020
						(AUDITED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	14,263,287			$	9,813,188
Accounts receivable, net			1,222,900				717,841
Accounts receivable - related parties			2,051,589				2,610,917
Inventories			1,925,561				1,174,603
Prepaid income tax and tax receivable			559,248				857,793
Investments			1,827,652				1,820,516
Other current assets			434,296				603,944
Total current assets			22,284,533				17,598,802
Restricted cash			13,976				12,854
Property and equipment, net			1,529,537				1,197,192
Operating lease right-of-use asset			1,237,865				733,917
Goodwill			1,043,473				915,790
Intangible assets, net			2,423,201				2,541,285
Deferred tax assets, net			900,878				900,878
Other assets, long - term			540,160				523,607
Total assets		$	29,973,623			$	24,424,325
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses		$	2,463,690			$	2,843,616
Expense waivers - related parties			238,886				421,892
Operating lease liabilities, current portion			569,717				323,395
Notes payable - related parties			3,500				3,500
Loans - property and equipment, current portion			14,727				13,196
Total current liabilities			3,290,520				3,605,599
LONG TERM LIABILITIES
Notes payable - related parties			600,000				600,000
Loans - property and equipment, net of current portion			378,222				359,845
Operating lease liabilities, net of current portion			718,142				447,062
Deferred tax liabilities			329,984				261,923
Total long-term liabilities			2,026,348				1,668,830
Total liabilities			5,316,868				5,274,429
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 50,000,000 authorized
Series B: 49,360 issued and outstanding at March 31, 2021 and 53,032 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 March 31, 2021 and 37,412,519 at June 30, 2020			37,486				37,412
Additional paid-in capital			9,330,843				9,330,913
Accumulated other comprehensive income (loss)			208,085				(144,744	)
Retained earnings			15,080,292				9,926,262
Total stockholders' equity			24,656,755				19,149,896
Total liabilities and stockholders' equity		$	29,973,623			$	24,424,325

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

		For the Three-Month Periods Ended March 31,								For the Nine-Month Periods Ended March 31,
		2021				2020				2021				2020
Net revenue
Fund management - related party		$	5,997,085			$	2,986,503			$	19,182,801			$	8,866,790
Food products			2,015,529				1,257,205				6,212,698				3,827,564
Security systems			717,664				606,268				2,013,819				2,110,526
Beauty products and other			813,084				1,051,980				2,846,052				2,918,582
Net revenue			9,543,362				5,901,956				30,255,370				17,723,462
Cost of revenue			2,336,541				1,750,845				7,121,339				5,243,803
Gross profit			7,206,821				4,151,111				23,134,031				12,479,659
Operating expense
General and administrative expense			1,512,387				1,098,721				5,071,090				3,207,762
Fund operations			860,027				695,529				2,562,525				2,232,816
Marketing and advertising			689,939				604,163				2,227,322				1,811,249
Depreciation and amortization			178,588				148,131				521,584				447,955
Salaries and compensation			1,925,571				1,785,913				6,106,978				5,002,617
Total operating expenses			5,166,512				4,332,457				16,489,499				12,702,399
Income (loss) from operations			2,040,309				(181,346	)			6,644,532				(222,740	)
Other income (expense):
Other income (expense)			26,748				(40,224	)			203,275				(61,797	)
Interest and dividend income			6,730				23,806				22,193				76,078
Interest expense			(9,988	)			(9,979	)			(30,215	)			(31,219	)
Total other income (expense), net			23,490				(26,397	)			195,253				(16,938	)
Income (loss) before income taxes			2,063,799				(207,743	)			6,839,785				(239,678	)
(Provision) benefit of income taxes			(480,991	)			190,507				(1,685,754	)			202,420
Net income (loss)		$	1,582,808			$	(17,236	)		$	5,154,031			$	(37,258	)
Weighted average shares of common stock
Basic			37,474,535				37,412,519				37,432,889				37,383,246
Diluted			38,473,159				37,412,519				38,473,159				37,383,246
Net income (loss) per common share
Basic		$	0.04			$	(0.00	)		$	0.14			$	(0.00	)
Diluted		$	0.04			$	(0.00	)		$	0.13			$	(0.00	)

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(UNAUDITED)

		Three Months Ended March 31,								Nine Months Ended March 31,
		2021				2020				2021				2020
Net income (loss)		$	1,582,808			$	(17,236	)		$	5,154,031			$	(37,258	)
Other comprehensive income:
Foreign currency translation (loss) gain			(17,317	)			(295,100	)			352,829				(125,563	)
Comprehensive income (loss)		$	1,565,491			$	(312,336	)		$	5,506,860			$	(162,821	)

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE AND NINE MONTH PERIODs ENDING MARCH 31, 2021 and MARCH 31, 2020
(UNAUDITED)

Period Ending March 31, 2021		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
Loss on currency translation			-				-				-				-				-				(17,317	)			-				(17,317	)
Conversion of preferred stock to common stock			(3,672	)			(4	)			73,440				74				(70	)			-				-				-
Net income			-				-				-				-				-				-				1,582,808				1,582,808
Balance at March 31, 2021			49,360			$	49				37,485,959			$	37,486			$	9,330,843			$	208,085			$	15,080,292			$	24,656,755

Period Ending March 31, 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 June 30, 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				175.00				-				-				-				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			-				-				-				-				-				-				-				-
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
Loss on currency translation			-				-				-				-				-				(295,100	)			-				(295,100	)
Common stock issued for services - earned(1)			-				-				-				-				37,958				-				-				37,958
Net loss			-				-				-				-				-				-				(17,236	)			(17,236	)
Balance at March 31, 2020			53,032			$	53				37,412,519			$	37,412			$	9,330,913			$	(301,222	)		$	8,115,603			$	17,182,759

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

		For the Nine-Month Periods Ended
		March 31,
		2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	5,154,031			$	(37,258	)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization			521,584				447,955
Stock based vendor compensation			-				152,250
Bad debt expense (recovery)			14,082				(197	)
Impairment to inventory value			67,576				-
Unrealized (gain) loss on investments			(5,146	)			44,409
Gain on disposal of equipment			(2,148	)			-
Operating lease right-of-use asset - non-cash lease cost			420,948				303,851
Decrease (increase) in current assets:
Accounts receivable			(91,002	)			77,244
Accounts receivable - related party			559,327				(25,020	)
Prepaid income taxes and tax receivable			302,313				196,670
Inventories			(254,177	)			(155,644	)
Other current assets			47,336				(18,910	)
Decrease (increase) in current liabilities:
Accounts payable and accrued expenses			(808,350	)			(715,356	)
Operating lease liabilities			(424,071	)			(303,714	)
Expense waivers - related party			(183,006	)			56,965
Net cash provided by operating activities			5,319,297				23,245
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for acquisition of business assets			(993,435	)			-
Cash paid for internally developed software			-				(217,990	)
Purchase of property and equipment			(41,074	)			(455,064	)
Proceeds from sale of property and equipment			2,148				-
Sale of investments			-				1,000,000
Purchase of investments			(492	)			(1,040,767	)
Net cash used in investing activities			(1,032,853	)			(713,821	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from property and equipment loans			-				370,220
Repayment of property and equipment loans			(25,394	)			(89,666	)
Net cash (used in) provided by financing activities			(25,394	)			280,554
Effect of exchange rate change on cash and cash equivalents			190,171				(44,049	)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			4,451,221				(454,071	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE			9,826,042				6,495,251
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE		$	14,277,263			$	6,041,180
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest paid		$	11,989			$	12,926
Income taxes paid, net of refunds		$	1,247,005			$	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 from other current assets to property and equipment, net		$	-			$	178,276

The accompanying notes found in the Company's Form 10-Q filed on May 14, 2021 are an integral part of these consolidated financial statements.

SOURCE: Concierge Technologies, Inc.

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FAQ

What were the Q3 2021 earnings for Concierge Technologies, Inc. (CNCG)?

Concierge Technologies reported Q3 2021 earnings of $2.1 million, equating to $0.04 per share.

How much did revenues increase for Concierge Technologies in Q3 2021?

Revenues for Q3 2021 increased to $9.5 million, up from $5.9 million in Q3 2020.

What is the current assets under management at Wainwright Holdings?

Assets under management at Wainwright Holdings stand at approximately $5.1 billion.

How has Concierge Technologies' stockholders' equity changed?

The stockholders' equity increased to $24.7 million at March 31, 2021, compared to $19.1 million at the previous fiscal year-end.