San Clemente, Calif., November 13, 2023—The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the 2024 first fiscal quarter ended September 30, 2023.
Net revenues for the three months ended September 30, 2023 were $8.2 million, versus $8.9 million last year. The Company registered a net loss of $500 thousand, equal to a loss of $0.1 per share, for the fiscal 2024 first quarter, principally reflecting continued investment in the Marygold & Co. fintech app, compared with net income of $497 thousand, or $0.01 per share, last year.
TMC’s balance sheet remained strong at September 30, 2023. Cash and cash equivalents amounted to $7.0 million at the end of the quarter, and the Company has essentially no debt. Total assets at September 30, 2023, were $35.5 million, and total stockholders’ equity at the quarter’s end was $30.0 million.
“Good progress was made during the quarter on an operational basis, and the Company remains cash flow positive,” said David Neibert, TMC’s Chief Operations Officer. “Net income at the operating subsidiary levels was slightly lower than the comparative year period, due to several factors, including: a strengthening of the US dollar in our foreign markets, reflecting a lower value in currency translation; marketing expenses in connection with the rollout of a new product line by our Original Sprout subsidiary; and, most impactfully, by higher expenses in connection with the final stages of development and initial marketing of our mobile fintech app by our Marygold & Co. subsidiary. Our USCF Investments subsidiary and our core businesses remain strong, with the revenue downturn for the first quarter well within our range of acceptable volatility. We plan to continue investing in the fintech space, which will continue to impact earnings for the short term, as we set the stage for TMC’s renewed focus on the financial services sector in the coming years.”
Nicholas Gerber, TMC’s Chief Executive Officer, said, “While we strive to maintain cash flow neutral operating results as we calculate our investment in Marygold & Co., economic conditions beyond our control impacted our performance for the quarter ended September 30, 2023. Our goal is to successfully put the foundational building blocks together for a sustainable, profitable, long-term future, while remaining debt free and maintaining a high level of cash reserves. From our exciting new mobile fintech app and financial services offerings to the innovative new products and services produced and provided by our other operating units, our objective is to enhance long-term value for all of our stakeholders.”
The Company’s USCF Investments subsidiary, www.uscfinvestments.com, acquired in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 15 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca.
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.
Acquired at the end of 2017, San Clemente, Calif.-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 further development of a fintech mobile banking app., having completed the initial development stage and soft launch in the U.S. in June 2023. https://marygoldandco.com/
Marygold & Co. (UK) Limited, formed in the U.K. during August 2021, operates through its subsidiary acquired in 2022, Tiger Financial & Asset Management Limited (“Tiger”), a U.K. based investment adviser. Tiger’s core business is managing clients’ financial wealth across a diverse product range, including cash, national savings, individual savings accounts, unit trusts, insurance company products such as investment bonds and other investment vehicles. http://www.tfam.co.uk/