The Marygold Companies Reports Financial Results for the Three and Nine Months Ended March 31, 2024
The Marygold Companies (NYSE: MGLD) reported a revenue of $7.9 million for Q3 FY24, down from $8.3 million last year. The company incurred a net loss of $0.5 million, or $0.01 per share, due to continued investment in its fintech app, Marygold & Co. For the nine months ended March 31, 2024, revenue was $24.6 million, down from $26 million last year, with a net loss of $2.2 million, or $0.05 per share. TMC's balance sheet remains strong with $4.5 million in cash and $11.6 million in investments, and almost no debt. Total assets were $33.7 million, and stockholders' equity was $28.4 million. The company recently acquired Step-by-Step Financial Planners in the UK, bringing its total UK assets under management to $75 million. Despite financial losses, TMC is focused on long-term value through its fintech investments.
- Strong balance sheet with $4.5 million in cash and $11.6 million in investments.
- No significant debt, maintaining financial stability despite operational losses.
- Acquisition of Step-by-Step Financial Planners increases UK assets under management to $75 million.
- Increased revenues for non-financial services subsidiaries.
- Continued development and near-term UK launch of the Marygold & Co. fintech app.
- Q3 FY24 revenue decreased to $7.9 million from $8.3 million last year.
- Net loss of $0.5 million, or $0.01 per share, for Q3 FY24.
- Nine-month revenue down to $24.6 million from $26 million last year.
- Net loss of $2.2 million for the nine months ended March 31, 2024, compared to a net income of $0.8 million last year.
- Lower revenues from USCF Investments due to a decrease in assets under management from $3.7 billion to $3.0 billion.
Insights
Marygold Companies, Inc.'s recent financial results reveal a mixed picture. The company reported a decline in revenue to
This financial loss contrasts with a modest net income of
On a positive note, the balance sheet remains strong with
Understanding the balance between current losses and potential long-term gains from the app will be essential for investors when deciding on their position in TMC.
The fintech sector is highly competitive and Marygold & Co.'s heavy investment in their mobile banking app indicates an aggressive strategy to capture market share. While the current financials show a net loss due to these investments, it’s important to consider the growth potential in the fintech space. The launch of their app in the U.K. and the acquisition of Step-by-Step Financial Planners Limited, adding $75 million in assets under management, are strategic moves aimed at expanding their footprint.
Investors should note that the success of the app in the U.K. could significantly enhance the company’s revenue streams and market presence. However, the currency translation rates and their impact on the foreign subsidiaries' revenue should also be monitored closely as they add another layer of complexity and risk.
Revenue for the three months ended March 31, 2024 was
For the nine-month period ended March 31, 2024, revenue was
TMC’s balance sheet remained strong at March 31, 2024. Cash and cash equivalents amounted to
“Operations overall remained on budget, with increased revenues this quarter over the prior year for our non-financial services subsidiaries,” said David Neibert, TMC’s Chief Operations Officer. “Revenues were up slightly for our foreign subsidiaries as well, despite an unfavorable trend in currency translation rates this quarter as compared with the same period last year. However, our largest subsidiary, USCF Investments, closed out the quarter with an average of
“We anticipate a continued steady flow of revenues from our core business units in the coming quarter and using those cash flows to continue the development and marketing of our newest offering, Marygold & Co.’s mobile fintech banking app. Use of capital from segment operations toward the furtherance of Marygold & Co.’s business plan is expected to produce modest consolidated net losses for the balance of this fiscal year,” Neibert added.
Nicholas
“Subsequent to the close of the quarter, we finalized the acquisition of yet another investment advisory firm in the
Business Units
The Company’s USCF Investments subsidiary, www.uscfinvestments.com, acquired in 2016 and based in
Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout
Brigadier Security Systems, www.brigadiersecurity.com, acquired in 2016 and headquartered in
Original Sprout, acquired in 2017, with warehouse and office facilities located in
Marygold & Co., formed in the
Marygold & Co. (
About The Marygold Companies, Inc.
The Marygold Companies, Inc., which changed its name from Concierge Technologies, Inc. in 2022, was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Marygold & Co., Tiger Financial & Asset Management Limited, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of
THE MARYGOLD COMPANIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) |
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March 31, 2024 |
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June 30, 2023 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
4,490 |
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$ |
8,161 |
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Accounts receivable, net (of which |
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2,489 |
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3,026 |
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Inventories |
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2,113 |
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2,254 |
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Prepaid income tax and tax receivable |
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1,955 |
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|
992 |
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Investments, at fair value |
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11,630 |
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11,481 |
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Other current assets |
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3,094 |
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904 |
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Total current assets |
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25,771 |
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26,818 |
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Restricted cash |
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14 |
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425 |
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Property and equipment, net |
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1,195 |
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1,255 |
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Operating lease right-of-use assets |
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1,095 |
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821 |
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Goodwill |
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2,307 |
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2,307 |
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Intangible assets, net |
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2,003 |
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2,330 |
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Deferred tax assets, net |
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771 |
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771 |
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Other assets |
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553 |
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554 |
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Total assets |
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$ |
33,709 |
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$ |
35,281 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts payable and accrued expenses |
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$ |
3,566 |
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$ |
2,771 |
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Operating lease liabilities, current portion |
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635 |
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457 |
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Purchase consideration payable |
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- |
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605 |
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Loans - property and equipment, current portion |
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340 |
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359 |
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Total current liabilities |
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4,541 |
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4,192 |
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Loans - property and equipment, net of current portion |
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74 |
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88 |
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Operating lease liabilities, net of current portion |
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471 |
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381 |
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Deferred tax liabilities, net |
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242 |
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242 |
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Total long-term liabilities |
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787 |
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711 |
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Total liabilities |
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5,328 |
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4,903 |
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STOCKHOLDERS’ EQUITY |
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Preferred stock, par value |
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Series B: 49,360 issued and outstanding at March 31, 2024 and June 30, 2023 |
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- |
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- |
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Common stock, |
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39 |
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39 |
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Additional paid-in capital |
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12,714 |
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12,397 |
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Accumulated other comprehensive loss |
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(246 |
) |
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(145 |
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Retained earnings |
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15,874 |
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18,087 |
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Total stockholders’ equity |
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28,381 |
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30,378 |
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Total liabilities and stockholders’ equity |
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$ |
33,709 |
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$ |
35,281 |
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THE MARYGOLD COMPANIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) |
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2024 |
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2023 |
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2024 |
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2023 |
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Three Months Ended March 31, |
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Nine Months Ended March 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue |
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Fund management - related party |
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$ |
4,406 |
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$ |
5,022 |
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$ |
14,453 |
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$ |
15,708 |
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Food products |
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1,836 |
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1,825 |
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5,485 |
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5,702 |
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Beauty products |
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858 |
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746 |
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2,475 |
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2,334 |
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Security systems |
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650 |
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576 |
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1,773 |
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1,871 |
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Financial services |
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130 |
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130 |
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385 |
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388 |
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Revenue |
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7,880 |
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8,299 |
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24,571 |
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26,003 |
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Cost of revenue |
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2,323 |
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2,195 |
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6,449 |
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6,450 |
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Gross profit |
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5,557 |
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6,104 |
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18,122 |
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19,553 |
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Operating expense |
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Salaries and compensation |
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2,690 |
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2,355 |
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8,279 |
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7,530 |
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General and administrative expense |
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2,166 |
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1,750 |
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6,730 |
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5,269 |
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Fund operations |
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1,295 |
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1,081 |
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3,752 |
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3,334 |
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Marketing and advertising |
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745 |
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612 |
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2,426 |
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1,936 |
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Depreciation and amortization |
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132 |
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140 |
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439 |
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437 |
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Total operating expenses |
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7,028 |
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5,938 |
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21,626 |
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18,506 |
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(Loss) income from operations |
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(1,471 |
) |
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166 |
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(3,504 |
) |
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1,047 |
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Other income (expense) |
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Interest and dividend income |
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|
259 |
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|
59 |
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|
580 |
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|
174 |
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Interest expense |
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(5 |
) |
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(5 |
) |
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(12 |
) |
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(16 |
) |
Other income (expense), net |
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333 |
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(97 |
) |
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(116 |
) |
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(68 |
) |
Total other income (expense), net |
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587 |
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(43 |
) |
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452 |
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90 |
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(Loss) income before income taxes |
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(884 |
) |
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|
123 |
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(3,052 |
) |
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1,137 |
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Benefit (provision) of income taxes |
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355 |
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30 |
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840 |
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(305 |
) |
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Net (loss) income |
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$ |
(529 |
) |
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$ |
153 |
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$ |
(2,212 |
) |
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$ |
832 |
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Weighted average shares of common stock |
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Basic |
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|
40,401 |
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|
|
40,371 |
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40,401 |
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|
40,371 |
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Diluted |
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|
40,401 |
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|
40,438 |
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|
40,401 |
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40,402 |
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Net (loss) income per common share |
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Basic |
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$ |
(0.01 |
) |
|
$ |
0.00 |
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|
$ |
(0.05 |
) |
|
$ |
0.02 |
|
Diluted |
|
$ |
(0.01 |
) |
|
$ |
0.00 |
|
|
$ |
(0.05 |
) |
|
$ |
0.02 |
|
The accompanying notes on Form 10-Q are an integral part of these condensed consolidated financial statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240513059996/en/
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@themarygoldcompanies.com
Source: The Marygold Companies, Inc.
FAQ
What were Marygold Companies' revenues for Q3 FY24?
What was Marygold Companies' net loss for Q3 FY24?
How did Marygold Companies' revenues for the nine months ended March 31, 2024 compare to last year?
What is the total amount invested in Marygold & Co. fintech app?
How much cash and investments did Marygold Companies report at the end of Q3 FY24?
What were the assets under management for USCF Investments at the end of Q3 FY24?
What recent acquisition did Marygold Companies make in the UK?