FRMO Corp. Announces Third Quarter 2014 Financial Results and Conference Call

ELMSFORD, N.Y.--()--FRMO Corp. (the “Company” or “FRMO”) (OTC Pink:FRMO) today reported its financial results for its 2014 third quarter, which ended February 28, 2014 (May Fiscal Year).

Financial Highlights

FRMO’s 2014 income from operations for the three months ended February 28, 2014 was $1,731,675, down from $1,839,525 for the same period in the prior year. The difference is primarily attributable to realized losses on securities. Comprehensive income for the same periods, and which includes unrealized gains, was $3,151,009, up from $2,510,418, including net income of $304,103 ($0.01 per share basic and diluted) for the third quarter of fiscal 2014, as compared to $858,803 ($0.02 per share basic and diluted) for the same period in the prior year. Income from operations for the nine months ended February 28, 2014 was $5,355,635, up from $4,743,261 for the same period in the prior year. For the nine months ended February 28, 2014, comprehensive income was $7,671,193, up from $6,428,629 in the first nine months of fiscal 2013, including net income of $2,758,091 ($0.06 per share, basic and diluted) for the first nine months of fiscal 2014 compared to $2,751,336 ($0.07 per share, basic and diluted) for the same period in the prior year.

Shareholders’ Equity increased by $7.8 million to $91.19 million ($2.10 per share) at February 28, 2014, from $83.37 million ($1.93 per share) at May 31, 2013. Current assets, comprised primarily of cash and equivalents and investments available for sale, amounted to $86.56 million as of February 28, 2014 and $74.84 million as of May 31, 2013. Total liabilities were $16.73 million as of February 28, 2014, compared to $12.65 million at the end of fiscal 2013, the majority of each being deferred taxes.

Further details are available in the Quarterly Report of the Company’s Consolidated Financial Statements for the quarter ended February 28, 2014. These statements have been filed on the OTC Markets Group Disclosure and News Services (DNS), which may be accessed at www.otcmarkets.com/stock/FRMO/filings. These documents are also available on the FRMO web site at www.frmocorp.com.

Conference Call

Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO, will host a conference call on Thursday, April 17, 2014 at 4:15 p.m. ET. The call can be accessed by dialing 1- 888-428-9490 (domestic toll free) or 719-325-2393 (international toll) and entering the following conference ID: 5161850. A replay will be available from 6:15 p.m. on the day of the teleconference until May 17, 2014. To listen to the archived call, dial 1-888-203-1112 (domestic toll free) or 719-457-0820 (international toll), and enter conference ID number 5161850.

 
Condensed Consolidated Balance Sheets        
(in thousands)
February 28, May 31,
  2014   2013
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 26,701 $ 26,525
Investments, available for sale, at fair value 58,113 47,306
Other   1,752   1,012
Total Current Assets 86,566 74,843
Investment in unconsolidated limited liability company 11,152 10,974
Participation in Horizon Kinetics revenue stream   10,200   10,200
Total Assets $ 107,918 $ 96,017
 
Liabilities and Stockholders' Equity
Current Liabilities:
Deferred Tax Liability $ 8,565 $ 5,852
Redeemable preferred stock - 50
Other current liabilities   3,925   2,510
Total Current Liabilities 12,490 8,412
Deferred Tax Liability - non-current   4,237   4,238
Total Liabilities 16,727 12,650
Stockholders' Equity   91,191   83,367
 
Total Liabilities and Stockholders' Equity $ 107,918 $ 96,017
 
 
Condensed Consolidated Statements of Income                
(amounts in thousands, except share data)
Three Months Ended Nine Months Ended
February 28, February 28, February 28, February 28,
  2014     2013   2014   2013
(Unaudited) (Unaudited)
Revenue:
Consultancy and advisory fees $ 2,339 $ 774 $ 3,946 $ 1,824
Income (loss) from investment partnerships
and limited liabilty companies (931 ) 651 544 1,605
Other   495     681   1,401   2,022
Total Revenue 1,903 2,106 5,891 5,451
Total Expenses   171     266   536   708
 
Income from Operations 1,732 1,840 5,355 4,743
Provision for Income Taxes   1,428     981   2,597   1,992
 
Net Income $ 304   $ 859 $ 2,758 $ 2,751
 
Comprehensive Income $ 3,151   $ 2,510 $ 7,671 $ 6,429
 
Basic and Diluted Earnings per Common Share $ 0.01 $ 0.02 $ 0.06 $ 0.07
 
Weighted Average Common Shares Outstanding
Basic 43,311,972 39,138,154 43,280,177 39,138,154
Diluted 43,732,355 39,259,083 43,681,566 39,197,326
 

About FRMO Corp.

FRMO Corp. invests in and receives revenues based upon consulting and advisory fee interests in the asset management sector.

FRMO has 43,311,972 shares of common stock outstanding.

For more information, visit our Web site at www frmocorp.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 – With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, the general economics of the financial industry, our ability to finance growth, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market.

Further information on our risk factors is contained in our quarterly and annual reports as filed on our website www.frmocorp.com and on www.otcmarkets.com/stock/FRMO/filings.

Contacts

FRMO Corp.
Thérèse Byars, 646-495-7337
Corporate Secretary
tbyars@frmocorp.com
www.frmocorp.com

Release Summary

FRMO Corp. today reported its financial results for its 2014 third quarter, which ended February 28, 2014 (May fiscal year)

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Contacts

FRMO Corp.
Thérèse Byars, 646-495-7337
Corporate Secretary
tbyars@frmocorp.com
www.frmocorp.com