Concierge Technologies Reports First Quarter Financial Results
Concierge Technologies (OTC: CNCG) reported a net loss of $1.9 million for the first fiscal quarter ended September 30, 2021, down from a profit of $2.2 million last year, primarily due to a $2.5 million legal settlement. Revenues declined to $9.7 million from $10.7 million, with Wainwright's revenue dropping to $5.7 million from $7.0 million. Average assets under management fell from $5.6 billion to $4.2 billion, impacting fund management revenue. However, the Company has a strong balance sheet, with total assets of $32.2 million and cash of $17.3 million, remaining debt-free.
- Strong balance sheet with total assets of $32.2 million.
- Increased cash reserves from $16.1 million to $17.3 million.
- All operating companies posted profits during the quarter.
- Net loss of $1.9 million for Q1 2021 compared to a gain of $2.2 million in 2020.
- Revenue decline from $10.7 million to $9.7 million year-over-year.
- Wainwright's operating loss of $368,000 when accounting for the settlement.
San Clemente, Calif., Nov. 15, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Concierge Technologies, Inc. (OTC: CNCG), a diversified global holding firm, today reported financial results for the first fiscal quarter ended September 30, 2021.
Revenues for the three-month period totaled
Results were impacted primarily by a
For the three-month period ended September 30, 2021, Wainwright, had revenues of
The Company’s “Other” operating segment – which consists of Gourmet Foods, Printstock, Brigadier Security Systems and Original Sprout – recorded higher total revenues for the quarter, increasing to
Income from operations attributed to the “Other” segment increased to
Concierge Technologies’ balance sheet remains strong and furthered improved at September 30, 2021, with total assets of
“Although we posted a net loss, we are pleased with the operational performance of our subsidiaries,” said David Neibert, Concierge Technologies’ Chief Operations Officer. “Original Sprout, Brigadier Security, Printstock and Gourmet Foods are in various stages of expanding their respective sales channels and product offerings. Subsequent to the close of the first quarter, USCF Investments launched its newest fund, and our fintech product at Marygold is nearing the operational stage. All operating companies posted a profit this quarter, and we’re looking forward to improving throughout the coming year.”
Nicholas Gerber, Chief Executive Officer, added, “We were pleased during the first quarter to have completed the formation of Marygold & Co. (UK) Limited, which subsequently signed a definitive agreement to acquire Tiger Financial & Asset Management Limited, an established and certified investment advisor in the U.K., in a transaction that is expected to close before the end of the 2021 calendar year. Our entire team continues working diligently to grow our business profitably and achieve our collective long-term goal of increasing shareholder value.”
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, U.K., 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, expansion of the sales channels and product offerings of the Company’s business units and completion of Marygold & Co. (UK) Limited’s acquisition of Tiger Financial, 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
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| September 30, 2021 | June 30, 2021 (1) | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 17,281,380 | $ | 16,072,955 | ||||
| Accounts receivable, net | 1,458,312 | 1,070,541 | ||||||
| Accounts receivable - related parties | 1,761,830 | 2,038,054 | ||||||
| Inventories | 2,109,390 | 1,951,792 | ||||||
| Prepaid income tax and tax receivable | 856,072 | 747,343 | ||||||
| Investments | 1,322,642 | 1,828,926 | ||||||
| Other current assets | 318,218 | 399,524 | ||||||
| Total current assets | 25,107,844 | 24,109,135 | ||||||
| Restricted cash | 13,748 | 13,989 | ||||||
| Property, plant and equipment, net | 1,471,602 | 1,573,445 | ||||||
| Operating lease right-of-use asset | 893,562 | 1,058,199 | ||||||
| Goodwill | 1,043,473 | 1,043,473 | ||||||
| Intangible assets, net | 2,259,494 | 2,341,803 | ||||||
| Deferred tax assets, net-U.S. | 827,476 | 827,476 | ||||||
| Other assets, long - term | 540,160 | 540,160 | ||||||
| Total assets | $ | 32,157,359 | $ | 31,507,680 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable, accrued expenses and legal settlement | $ | 6,622,022 | $ | 3,862,874 | ||||
| Expense waivers – related parties | 108,012 | 69,684 | ||||||
| Operating lease liabilities, current portion | 457,586 | 513,071 | ||||||
| Notes payable - related parties | 603,500 | 603,500 | ||||||
| Loans - property and equipment, current portion | 14,840 | 15,094 | ||||||
| Total current liabilities | 7,805,960 | 5,064,223 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Loans - property and equipment, net of current portion | 365,838 | 379,804 | ||||||
| Operating lease liabilities, net of current portion | 496,629 | 607,560 | ||||||
| Deferred tax liabilities, net-foreign | 169,429 | 169,429 | ||||||
| Total long-term liabilities | 1,031,896 | 1,156,793 | ||||||
| Total liabilities | 8,837,856 | 6,221,016 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Preferred stock, | ||||||||
| Series B: 49,360 issued and outstanding at September 30, 2021 and at June 30, 2021 | 49 | 49 | ||||||
| Common stock, | 37,486 | 37,486 | ||||||
| Additional paid-in capital | 9,330,843 | 9,330,843 | ||||||
| Accumulated other comprehensive income | 56,413 | 142,581 | ||||||
| Retained earnings | 13,894,712 | 15,775,705 | ||||||
| Total stockholders' equity | 23,319,503 | 25,286,664 | ||||||
| Total liabilities and stockholders' equity | $ | 32,157,359 | $ | 31,507,680 | ||||
(1) Derived from audited financial statements
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(UNAUDITED)
| Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | |||||||
| Net revenue | ||||||||
| Fund management - related party | $ | 5,657,027 | $ | 7,036,301 | ||||
| Food products | 2,361,793 | 2,057,369 | ||||||
| Security systems | 690,856 | 678,643 | ||||||
| Beauty products | 1,021,071 | 972,744 | ||||||
| Net revenue | 9,730,747 | 10,745,057 | ||||||
| Cost of revenue | 2,652,014 | 2,399,151 | ||||||
| Gross profit | 7,078,733 | 8,345,906 | ||||||
| Operating expense | ||||||||
| General and administrative expense | 2,113,820 | 1,911,045 | ||||||
| Fund operations | 1,101,617 | 902,841 | ||||||
| Marketing and advertising | 723,591 | 801,092 | ||||||
| Depreciation and amortization | 154,765 | 166,071 | ||||||
| Salaries and compensation | 2,131,298 | 1,696,244 | ||||||
| Legal settlement | 2,500,000 | - | ||||||
| Total operating expenses | 8,725,091 | 5,477,293 | ||||||
| (Loss) income from operations | (1,646,358 | ) | 2,868,613 | |||||
| Other income: | ||||||||
| Interest and dividend income | 7,396 | 8,604 | ||||||
| Interest expense | (10,200 | ) | (10,083 | ) | ||||
| Other income | 6,993 | 118,625 | ||||||
| Total other income, net | 4,189 | 117,146 | ||||||
| (Loss) income before income taxes | (1,642,169 | ) | 2,985,759 | |||||
| Provision of income taxes | (238,824 | ) | (766,325 | ) | ||||
| Net (loss) income | $ | (1,880,993 | ) | $ | 2,219,434 | |||
| Weighted average shares of common stock | ||||||||
| Basic and diluted | 38,473,159 | 38,473,159 | ||||||
| Net (loss) income per common share | ||||||||
| Basic and diluted | $ | (0.05 | ) | $ | 0.06 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
| Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | |||||||
| Net (loss) income | $ | (1,880,993 | ) | $ | 2,219,434 | |||
| Other comprehensive income: | ||||||||
| Foreign currency translation (loss) gain | (86,168 | ) | 72,714 | |||||
| Comprehensive (loss) income | $ | (1,967,161 | ) | $ | 2,292,148 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTH PERIODS ENDING SEPTEMBER 30, 2021 AND SEPTEMBER 30, 2020
(UNAUDITED)
| Period Ending September 30, 2021 | 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, 2021 | 49,360 | $ | 49 | 37,485,959 | $ | 37,486 | $ | 9,330,843 | $ | 142,581 | $ | 15,775,705 | $ | 25,286,664 | ||||||||||||||||||
| Loss on currency translation | - | - | - | - | - | (86,168 | ) | - | (86,168 | ) | ||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | (1,880,993 | ) | (1,880,993 | ) | ||||||||||||||||||||||
| Balance at September 30, 2021 | 49,360 | $ | 49 | $ | 37,485,959 | $ | 37,486 | $ | 9,330,843 | $ | 56,413 | $ | 13,894,712 | $ | 23,319,503 | |||||||||||||||||
| 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 | |||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Three Month Period Ended | ||||||||
| September 30, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ | (1,880,993 | ) | $ | 2,219,434 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 154,765 | 166,071 | ||||||
| Bad debt expense | - | 13,749.00 | ||||||
| Unrealized loss (gain) on investments | 1,059 | (1,067 | ) | |||||
| Loss (gain) on disposal of equipment | 23,407 | (2,100 | ) | |||||
| Operating lease right-of-use asset - non-cash lease cost | 164,637 | 128,320 | ||||||
| Decrease (increase) in current assets: | ||||||||
| Accounts receivable | (397,282 | ) | (205,324 | ) | ||||
| Accounts receivable - related party | 276,224 | 433,110 | ||||||
| Prepaid income taxes and tax receivable | (111,698 | ) | 859,118 | |||||
| Inventories | (154,924 | ) | (137,859 | ) | ||||
| Other current assets | 129,731 | 134,208 | ||||||
| Decrease (increase) in current liabilities: | ||||||||
| Accounts payable, accrued expenses and legal settlement | 2,786,828 | (179,660 | ) | |||||
| Operating lease liabilities | (166,417 | ) | (129,324 | ) | ||||
| Expense waivers - related party | 38,328 | 306,653 | ||||||
| Net cash provided by operating activities | 863,665 | 3,605,329 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Cash paid for acquisition of assets | - | (723,150 | ) | |||||
| Purchase of real estate and equipment | (3,560 | ) | (5,657 | ) | ||||
| Sale of investments | 506,462 | - | ||||||
| Purchase of investments | (423 | ) | (2,694 | ) | ||||
| Net cash provided by (used in) investing activities | 502,479 | (731,501 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayment of property and equipment loans | (3,584 | ) | (3,282 | ) | ||||
| Net cash (used in) financing activities | (3,584 | ) | (3,282 | ) | ||||
| Effect of exchange rate change on cash and cash equivalents | (154,376 | ) | 210,997 | |||||
| NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,208,184 | 3,081,543 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE | 16,086,944 | 9,826,042 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | $ | 17,295,128 | $ | 12,907,585 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest paid | $ | 4,080 | $ | 3,963 | ||||
| Income taxes paid (refunded) | $ | 296,768 | $ | (238,458 | ) | |||
| Non-cash financing and investing activities: | ||||||||
| Reclassification of acquisition deposit | $ | - | $ | 122,111 | ||||
| Purchase price payable | $ | - | $ | 277,577 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
FAQ
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