ELMSFORD, N.Y.--(BUSINESS WIRE)--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).
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 $12.65 million at the end of fiscal 2013, the majority of each being deferred taxes.
Further details are available in the Quarterly Report of the Company’s Consolidated Financial Statements for the quarter ended February 28, 2014. These statements have been filed on the OTC Markets Group Disclosure and News Services (DNS), which may be accessed at www.otcmarkets.com/stock/FRMO/filings. These documents are also available on the FRMO web site at www.frmocorp.com.
Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO, will host a conference call on Thursday, April 17, 2014 at 4:15 p.m. ET. The call can be accessed by dialing 1- 888-428-9490 (domestic toll free) or 719-325-2393 (international toll) and entering the following conference ID: 5161850. A replay will be available from 6:15 p.m. on the day of the teleconference until May 17, 2014. To listen to the archived call, dial 1-888-203-1112 (domestic toll free) or 719-457-0820 (international toll), and enter conference ID number 5161850.
|Condensed Consolidated Balance Sheets|
|February 28,||May 31,|
|Cash and cash equivalents||$||26,701||$||26,525|
|Investments, available for sale, at fair value||58,113||47,306|
|Total Current Assets||86,566||74,843|
|Investment in unconsolidated limited liability company||11,152||10,974|
|Participation in Horizon Kinetics revenue stream||10,200||10,200|
|Liabilities and Stockholders' Equity|
|Deferred Tax Liability||$||8,565||$||5,852|
|Redeemable preferred stock||-||50|
|Other current liabilities||3,925||2,510|
|Total Current Liabilities||12,490||8,412|
|Deferred Tax Liability - non-current||4,237||4,238|
|Total Liabilities and Stockholders' Equity||$||107,918||$||96,017|
|Condensed Consolidated Statements of Income|
|(amounts in thousands, except share data)|
|Three Months Ended||Nine Months Ended|
|February 28,||February 28,||February 28,||February 28,|
|Consultancy and advisory fees||$||2,339||$||774||$||3,946||$||1,824|
|Income (loss) from investment partnerships|
|and limited liabilty companies||(931||)||651||544||1,605|
|Income from Operations||1,732||1,840||5,355||4,743|
|Provision for Income Taxes||1,428||981||2,597||1,992|
|Basic and Diluted Earnings per Common Share||$||0.01||$||0.02||$||0.06||$||0.07|
|Weighted Average Common Shares Outstanding|
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.