FRMO Corp. Announces Second Quarter 2015 Financial Results and Conference Call

ELMSFORD, N.Y.--()--FRMO Corp. (the “Company” or “FRMO”) (OTC Pink:FRMO) today reported its financial results for the 2015 second quarter, which ended November 30, 2014 (May Fiscal Year).

Financial Highlights

FRMO’s 2015 book value was $98.5 million ($2.25 per share) as of November 30, 2014, compared with $94.0 million ($2.15 per share) as of May 31, 2014, the prior fiscal year-end. Current assets, comprised primarily of cash and equivalents and investments available for sale, amounted to $91.9 million as of November 30, 2014, and $86.5 million as of May 31, 2014. Total liabilities amounted to $17.5 million as of November 30, 2014, compared to $16.4 million as of May 31, 2014, the majority of each being deferred taxes.

Net income was $1,061,110 ($0.02 per share basic and diluted) for the three months ended November 30, 2014, as compared to $1,050,758 ($0.02 per share basic and diluted) for the same quarter of 2013. For the six months ended November 30, 2014, constituting the first half of the current fiscal year ending May 31, 2015, net income was $1,828,639 ($0.04 per share, basic and diluted) from $2,453,988 ($0.06 per share, basic and diluted) for the same period in the prior year.

Further details are available in the Quarterly Report of the Company’s Consolidated Financial Statements for the quarter ended November 30, 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, of FRMO Corp. will host a conference call on Tuesday, January 20, 2015 at 4:15 p.m. ET. Only questions submitted to info@frmocorp.com before 2:00 p.m. on the day of the call will be considered. The call can be accessed by dialing 888-438-5453 (domestic toll free) or 719-325-2144 (international toll) and entering the following conference ID: 7100927. A replay will be available from 7:15 p.m. on the day of the teleconference through 7:15 p.m. on February 19, 2015. To listen to the archived call, dial 1-888-203-1112 (domestic toll free) or 1-719-457-0820 (international toll), and enter conference ID number 7100927.

           
Condensed Consolidated Balance Sheets
(in thousands)
November 30, May 31,
2014 2014
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 35,742 $   27,257
Investments, available for sale, at fair value 55,577 58,670
Other   576     595
Total Current Assets 91,895 86,522
Investment in Horizon Kinetics LLC 11,287 11,214
Participation in Horizon Kinetics LLC revenue stream 10,200 10,200
Investment in The Bermuda Stock Exchange 2,454 2,371
Other assets   138     138
Total Assets $ 115,974 $   110,445
 
Liabilities and Stockholders' Equity
Current Liabilities:
Deferred Tax Liability $ 9,578 $ 9,016
Other current liabilities   3,644     3,140
Total Current Liabilities 13,222 12,156
Deferred Tax Liability - non-current   4,262     4,238
Total Liabilities 17,484 16,394
Stockholders' Equity   98,490     94,051
 
Total Liabilities and Stockholders' Equity $ 115,974 $   110,445
 
                           
Condensed Consolidated Statements of Income
(amounts in thousands, except share data)
Three Months Ended Six Months Ended
November 30, November 30, November 30, November 30,
2014       2013       2014       2013
(Unaudited) (Unaudited)
Revenue:
Consultancy and advisory fees $ 799 $ 928 $ 1,721 $ 1,607
Income (loss) from investment partnerships
and limited liability companies 196 218 335 1,475
Income from unconsolidated subsidiary 30 - 61 -
Other   685   460   1,116   906
Total Revenue 1,710 1,606 3,233 3,988
Total Expenses   135   151   358   364
 
Income from Operations 1,575 1,455 2,875 3,624
Provision for Income Taxes   514   404   1,046   1,170
 
Net Income $ 1,061 $ 1,051 $ 1,829 $ 2,454
 
Diluted Earnings per Common Share $ 0.02 $ 0.02 $ 0.04 $ 0.06
 
Weighted Average Common Shares Outstanding
Basic 43,670,405 43,272,412 43,587,171 43,264,540
Diluted 44,136,652 43,693,129 44,047,816 43,658,657
 
                                   
 

About FRMO Corp.

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

FRMO has 43,670,405 shares of common stock outstanding as of January 14, 2015.

For more information, visit our website 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 the 2015 second quarter, which ended November 30, 2014 (May Fiscal Year).

Contacts

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