FRMO Corp. (the “Company” or “FRMO”) (OTC Pink: FRMO) today reported its financial results for the 2016 second quarter, which ended November 30, 2015 (May Fiscal Year).
Financial Highlights
FRMO’s book value was $97.9 million ($2.23 per share) as of November 30, 2015, compared with $102.2 million ($2.34 per share) as of May 31, 2015, the prior fiscal year-end. Cash and cash equivalents amounted to $50.7 million as of November 30, 2015, versus $44.7 million as of May 31, 2015. Total liabilities were $15.7 million as of November 30, 2015, compared to $16.5 million as of May 31, 2015, the majority of each being deferred taxes.
FRMO’s net income was $1,441,808 ($0.03 per share basic and diluted) for the three months ended November 30, 2015, up from $1,061,110 ($0.02 per share basic and diluted) for the same quarter of 2014. For the six months ended November 30, 2015, constituting the first half of the current fiscal year ending May 31, 2016, net income was $2,602,913 ($0.06 per share basic and diluted) up from $1,828,639 ($0.04 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, 2015. 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 Tuesday, January 19, 2016 at 4:15 p.m. ET. Only questions submitted to [email protected] before 2:00 p.m. on the day of the call will be considered. The call can be accessed by dialing 1-888-481-2877 (domestic toll free) or 1-719-325-2491 (international toll) and entering the following conference ID: 7834541. A replay will be available from 7:15 p.m. on the day of the teleconference until Thursday, February 18, 2016. 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 7834541.
| Condensed Consolidated Balance Sheets | ||||||
| (in thousands) | ||||||
| November 30, | May 31, | |||||
| 2015 | 2015 | |||||
| Assets | ||||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ | 50,679 | $ | 44,745 | ||
| Investments, available for sale, at fair value | 37,558 | 48,008 | ||||
| Other | 1,180 | 1,743 | ||||
| Total Current Assets | 89,417 | 94,496 | ||||
| Investment in Horizon Kinetics LLC | 11,011 | 11,200 | ||||
| Participation in Horizon Kinetics LLC revenue stream | 10,200 | 10,200 | ||||
| Investment in The Bermuda Stock Exchange | 2,668 | 2,639 | ||||
| Investment in OneChicago LLC | 246 | - | ||||
| Other assets | 52 | 138 | ||||
| Total Assets | $ | 113,594 | $ | 118,673 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current Liabilities: | ||||||
| Deferred Tax Liability | $ | 7,034 | $ | 10,286 | ||
| Other current liabilities | 4,391 | 1,949 | ||||
| Total Current Liabilities | 11,425 | 12,235 | ||||
| Deferred Tax Liability - non-current | 4,284 | 4,274 | ||||
| Total Liabilities | 15,709 | 16,509 | ||||
| Stockholders' Equity | 97,885 | 102,164 | ||||
| Total Liabilities and Stockholders' Equity | $ | 113,594 | $ | 118,673 | ||
| 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, | |||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Revenue: | ||||||||||||
| Consultancy and advisory fees | $ | 578 | $ | 799 | $ | 1,268 | $ | 1,721 | ||||
| Income (loss) from investment partnerships | ||||||||||||
| and limited liability companies | 1,866 | 196 | 2,679 | 335 | ||||||||
| Income from unconsolidated subsidiary | 20 | 30 | 29 | 61 | ||||||||
| Other | 304 | 686 | 1,110 | 1,116 | ||||||||
| Total Revenue | 2,768 | 1,711 | 5,086 | 3,233 | ||||||||
| Total Expenses | 186 | 135 | 355 | 358 | ||||||||
| Income from Operations | 2,582 | 1,576 | 4,731 | 2,875 | ||||||||
| Provision for Income Taxes | 1,140 | 515 | 2,128 | 1,046 | ||||||||
| Net Income | $ | 1,442 | $ | 1,061 | $ | 2,603 | $ | 1,829 | ||||
| Diluted Earnings per Common Share | $ | 0.03 | $ | 0.02 | $ | 0.06 | $ | 0.04 | ||||
| Weighted Average Common Shares Outstanding | ||||||||||||
| Basic | 43,733,375 | 43,670,405 | 43,730,751 | 43,587,171 | ||||||||
| Diluted | 43,893,085 | 44,136,652 | 43,893,796 | 44,047,816 | ||||||||
About FRMO Corp.
FRMO Corp. invests in and receives revenues based upon consulting and advisory fee interests in the asset management sector.
FRMO has 43,813,155 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.
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