Concierge Technologies Reports Financial Results for Second Fiscal Quarter
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Concierge Technologies Reports Financial Results for Second Fiscal Quarter

Tuesday, February 16, 2021 1:15 PM
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Earnings

- Revenues Nearly Double, Stockholders' Equity Continues to Rise Over Prior Year -

SAN CLEMENTE, CA / ACCESSWIRE / February 16, 2021 / Concierge Technologies, Inc. (OTCQB:CNCG), a diversified global holding firm, today announced financial results for the second fiscal quarter ended December 31, 2020, with strong performances in revenues, net income and stockholders' equity.

The Company reported that for the three months ended December 31, 2020, revenues continued their increase to $10.0 million from $5.8 million for the comparable prior year period. For the six months ended December 31, 2020, revenues advanced to $20.7 million from $11.8 million for the same period last year. Net income for the most recent three-month period rose to $1.4 million, equal to $0.04 per share, from a net loss of $75,000, equal to breakeven per share, for the comparable prior year period. Year-to-date net income advanced to $3.6 million, equal to $.09 per share on a fully diluted basis, from a net loss of $20,000, or breakeven per share, a year ago.

Concierge said the primary driver for the fiscal 2021 improvement was an increase in assets under management (AUM) at the Company's Wainwright Holdings funds management subsidiary to approximately $4.8 billion as of December 31, 2020, compared with $2.0 billion at the same time a year ago. Wainwright, which operates under the name, USCF Investments, currently manages nine commodity-oriented exchange-traded products (ETPs) that are listed on the New York Stock Exchange.

The Company's "Other" business segment, which comprised approximately 38% of total revenues in the most recent quarter, versus 51% of revenues in last year's second quarter, were up approximately $1 million year-over-year. The increase was due, in part, to the acquisition of Printstock Products Limited by the Company's New Zealand-based wholly owned subsidiary, Gourmet Foods. The Other segment is comprised of Gourmet Foods, Brigadier Security Systems and Original Sprout.

Concierge's balance sheet further strengthened at the end of the second fiscal quarter. Cash and cash equivalents grew to $13.3 million from $9.8 million at June 30, 2020. Total stockholders' equity increased to $23.1 million at December 31, 2020 from $19.1 million at the end of fiscal 2020. The company has essentially no debt.

"The increase in AUM notwithstanding, the performance of our Other subsidiaries also accounted for a significant portion of our revenue stream and operating income," said David Neibert, Chief Operations Officer. "Regardless of the expected variations within the financial sector, we have proven that our model of diversification and decentralized management structure can, and does, produce a sustainable income with significant growth potential. This has become all the more apparent in today's altered world because of the pandemic."

"I am more than pleased with the performance of the management teams at each subsidiary, along with the support of our corporate staff during this difficult calendar year of lock downs, virtual meetings, work-from-home routines and a host of other hurdles," added Nicholas Gerber, Chief Executive Officer. "During this time, we have managed to acquire yet another profitable company in New Zealand, and to further develop an exciting fintech app at our wholly owned subsidiary, Marygold & Co, which we hope to launch later in the year. All this, while continuing to post profits and build value for our shareholders. I look forward, as I'm sure everyone does, to a return to normalcy and using our new-found strengths to continuing growing our company and adding shareholder value in the future."

Business Units

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. Gourmet Foods also owns Printstock Products Limited, acquired July 1, 2020, https://www.printstocknz.com/ , who is a commercial printer of specialized wrappers for food products manufactured in New Zealand and Australia.

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.

The company's USCF Investments operation, www.uscfinvestments.com, acquired as part of the Wainwright Holdings transaction in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 10 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca.

Acquired by Concierge at the end of 2017, California-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, Singapore, Hong Kong, Malaysia, New Zealand, Australia, Canada and at various online outlets worldwide.

Marygold & Co, https://marygoldandco.com formed in November 2019 as a development stage corporation headquartered in Denver, CO, seeking to explore opportunities in the Fintech space. Marygold plans to launch a proprietary Fintech mobile app later in the current year.

About Concierge Technologies, Inc.

Concierge Technologies, originally founded in 1996, was repositioned as a global holding firm in 2015, and currently has operating subsidiaries in financial services, food manufacturing, security systems and beauty products. Offices and manufacturing operations are in the U.S., New Zealand and Canada. For more information, visit www.conciergetechnology.net.

Forward-Looking Statements

This press release may contain "forward-looking statements" that include information relating to Concierge Technologies' future events and future financial and operating performance. Such forward-looking statements, including, but not limited to, the launch of a new fintech venture, continue growing the company and adding shareholder value, should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.

For a more detailed description of the risk factors and uncertainties affecting Concierge Technologies or its subsidiary companies, and more detailed information about the individual operating entities, please refer to the Company's Securities and Exchange Commission filings, which are available on the Company's website, (http://www.conciergetechnology.net), or at www.sec.gov.

For more information contact:

Concierge Technologies, Inc.
[email protected]
Tel: 949-429-5370 

Financial Tables Follow

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 
  December 31, 2020     June 30, 2020  
 
        (AUDITED)  
 ASSETS    
 
           
CURRENT ASSETS
           
Cash and cash equivalents
  13,322,054     9,813,188  
Accounts receivable, net
    1,535,480       717,841  
Accounts receivable - related parties
    2,092,552       2,610,917  
Inventories
    1,893,717       1,174,603  
Prepaid income tax and tax receivable
    570,539       857,793  
Investments
    1,826,421       1,820,516  
Other current assets
    390,069       603,944  
Total current assets
    21,630,832       17,598,802  
 
               
Restricted cash
    14,464       12,854  
Property and equipment, net
    1,632,466       1,197,192  
Operating lease right-of-use asset
    1,421,612       733,917  
Goodwill
    1,043,473       915,790  
Intangible assets, net
    2,505,157       2,541,285  
Deferred tax assets, net
    900,878       900,878  
Other assets, long - term
    548,695       523,607  
Total assets
  29,697,577     24,424,325  
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY    
 
               
CURRENT LIABILITIES
               
Accounts payable and accrued expenses
  2,827,631     2,843,616  
Expense waivers - related parties
    975,228       421,892  
Operating lease liabilities, current portion
    626,273       323,395  
Notes payable - related parties
    3,500       3,500  
Loans - property and equipment, current portion
    14,380       13,196  
Total current liabilities
    4,447,012       3,605,599  
 
               
LONG TERM LIABILITIES
               
Notes payable - related parties
    600,000       600,000  
Loans - property and equipment, net of current portion
    376,882       359,845  
Long-term operating lease liabilities, net of current portion
    852,435       447,062  
Deferred tax liabilities
    329,984       261,923  
Total long-term liabilities
    2,159,301       1,668,830  
Total liabilities
    6,606,313       5,274,429  
 
               
STOCKHOLDERS' EQUITY
               
Preferred stock, $0.001 par value; 50,000,000 authorized
               
Series B: 53,032 issued and outstanding at December 31, 2020 and at June 30, 2020
    53       53  
Common stock, $0.001 par value; 900,000,000 shares authorized; 37,412,519 shares issued and outstanding at December 31, 2020 and at June 30, 2020
    37,412       37,412  
Additional paid-in capital
    9,330,913       9,330,913  
Accumulated other comprehensive income (loss)
    225,402       (144,744 )
Retained earnings
    13,497,484       9,926,262  
Total stockholders' equity
    23,091,264       19,149,896  
Total liabilities and stockholders' equity
  29,697,577     24,424,325  
                 

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

 
  For the Three-Month Periods Ended December 31,     For the Six-Month Periods Ended December 31,  
 
  2020     2019     2020     2019  
 
                       
Net revenue
                       
Fund management - related party
  6,149,415     2,839,718     13,185,716     5,880,287  
Food products
    2,134,402       1,320,357       4,191,974       2,570,334  
Security systems
    617,780       733,533       1,297,222       1,506,753  
Beauty products and other
    1,060,225       902,928       2,032,968       1,866,601  
Net revenue
    9,961,822       5,796,536       20,707,880       11,823,975  
 
                               
Cost of revenue
    2,378,024       1,724,507       4,781,584       3,493,827  
 
                               
Gross profit
    7,583,798       4,072,029       15,926,296       8,330,148  
 
                               
 
                               
Operating expense
                               
General and administrative expense
    1,641,196       986,392       3,555,259       2,106,392  
Fund operations
    799,658       727,450       1,702,498       1,537,287  
Marketing and advertising
    742,529       634,871       1,540,351       1,210,003  
Depreciation and amortization
    177,225       150,485       343,124       300,148  
Salaries and compensation
    2,485,357       1,673,443       4,181,577       3,216,485  
Total operating expenses
    5,845,965       4,172,641       11,322,809       8,370,315  
 
                               
Income (loss) from operations
    1,737,833       (100,612 )     4,603,487       (40,167 )
 
                               
 
                               
Other income (expense):
                               
Other income (expense)
    55,695       (31,347 )     176,638       (22,458 )
Interest and dividend income
    6,799       26,403       15,442       52,239  
Interest expense
    (10,141 )     (10,246 )     (20,225 )     (21,248 )
Total other income (expense), net
    52,353       (15,190 )     171,855       8,533  
 
                               
Income (loss) before income taxes
    1,790,186       (115,802 )     4,775,342       (31,634 )
 
                               
(Provision) benefit of income taxes
    (438,398 )     40,888       (1,204,120 )     11,612  
 
                               
Net income (loss)
  1,351,788     (74,914 )   3,571,222     (20,022 )
 
                               
Weighted average shares of common stock
                               
Basic
    37,412,519       37,412,519       37,412,519       37,368,769  
Diluted
    38,473,159       37,412,519       38,473,159       37,368,769  
 
                               
Net income (loss) per common share
                               
Basic
  0.04     (0.00 )   0.10     (0.00 )
Diluted
  0.04     (0.00 )   0.09     (0.00 )
                                 

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

 
  Three Months Ended December 31,     Six Months Ended December 31,  
 
  2020     2019     2020     2019  
 
                       
Net income (loss)
  1,351,788     (74,914 )   3,571,222     (20,022 )
 
                               
Other comprehensive income:
                               
Foreign currency translation gain
    297,432       135,588       370,146       169,537  
Comprehensive income
  1,649,220     60,674     3,941,368     149,515  
                                 

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE AND SIX MONTH PERIODs ENDING December 31, 2020 and December 31, 2019
(UNAUDITED)

Period Ending December 31, 2020
  Preferred Stock (Series B)     Common Stock                          
 
  Number of Shares     Amount     Number of Shares     Par Value     Additional Paid - in Capital     Accumulated Other Comprehensive (Loss) Income     Retained Earnings     Total Stockholders' Equity  
Balance at July 1, 2020
    53,032     53       37,412,519     37,412     9,330,913     (144,744 )   9,926,262     19,149,896  
Gain on currency translation
    -       -       -       -       -       72,714       -       72,714  
Net income
    -       -       -       -       -       -       2,219,434       2,219,434  
Balance at September 30, 2020
    53,032     53       37,412,519     37,412     9,330,913     (72,030 )   12,145,696     21,442,044  
Gain on currency translation
    -       -       -       -       -       297,432       -       297,432  
Net income
    -       -       -       -       -       -       1,351,788       1,351,788  
Balance at December 31, 2020
    53,032     53       37,412,519     37,412     9,330,913     225,402     13,497,484     23,091,264  
Period Ending December 31, 2019
  Preferred Stock (Series B)     Common Stock                          
 
  Number of Shares     Amount     Number of Shares     Par Value     Additional Paid - in Capital     Accumulated Other Comprehensive (Loss) Income     Retained Earnings     Total Stockholders' Equity  
Balance at July 1, 2019
    53,032     53       37,237,519     37,237     9,178,838     (175,659 )   8,152,861     17,193,330  
Gain on currency translation
    -       -       -       -       -       33,949       -       33,949  
Common stock issued for services
    -       -       175,000       175       -       -       -       175  
Common stock issued for services - earned (1)
    -       -       -       -       37,366       -       -       37,366  
Net income
    -       -       -       -       -       -       54,892       54,892  
Balance at September 30, 2019
    53,032     53       37,412,519     37,412     9,216,204     (141,710 )   8,207,753     17,319,712  
Gain on currency translation
    -       -       -       -       -       135,588       -       135,588  
Common stock issued for services - earned (1)
    -       -       -       -       76,751       -       -       76,751  
Net loss
    -       -       -       -       -       -       (74,914 )     (74,914 )
Balance at December 31, 2019
    53,032     53       37,412,519     37,412     9,292,955     (6,122 )   8,132,839     17,457,137  
                                                                 

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 
  For the Six-Month Period Ended  
 
  December 31,  
 
  2020     2019  
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net income (loss)
  3,571,222     (20,022 )
Adjustments to reconcile net income to net cash provided by operating activities
               
Depreciation and amortization
    343,124       300,148  
Stock based vendor compensation
    -       114,292  
Bad debt expense
    14,075       91  
Impairment to inventory value
    32,688       -  
Unrealized gain (loss) on investments
    (1,128 )     688  
Gain on disposal of equipment
    (2,122 )     -  
Operating lease right-of-use asset - non-cash lease cost
    231,879       184,876  
 
               
Decrease (increase) in current assets:
               
Accounts receivable
    (373,656 )     130,917  
Accounts receivable - related party
    518,364       34,437  
Prepaid income taxes and tax receivable
    292,905       427,260  
Inventories
    (149,153 )     (207,324 )
Other current assets
    82,433       94,986  
Decrease (increase) in current liabilities:
               
Accounts payable and accrued expenses
    (466,096 )     (781,736 )
Operating lease liabilities
    (233,222 )     (184,068 )
Expense waivers - related party
    553,336       (37,702 )
Net cash provided by operating activities
    4,414,649       56,843  
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Cash paid for acquisition of business
    (993,435 )     -  
Purchase of real estate and equipment
    (30,213 )     (495,579 )
Purchase of investments
    (411 )     (29,060 )
Net cash used in investing activities
    (1,024,059 )     (524,639 )
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Loans - real estate, property and equipment
    -       404,518  
Repayment of property and equipment loans
    (3,445 )     (94,613 )
Net cash (used in) provided by financing activities
    (3,445 )     309,905  
 
               
Effect of exchange rate change on cash and cash equivalents
    123,331       208,393  
 
               
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
    3,510,476       50,502  
 
               
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE
    9,826,042       6,495,251  
 
               
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE
  13,336,518     6,545,753  
 
               
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
               
Cash paid during the period for:
               
Interest paid
  7,985     8,990  
Income taxes paid, net of refunds
  859,320     159,363  
Non-cash financing and investing activities:
               
Acquisition of operating right-of-use assets through operating lease obligations
  730,741     1,150,916  
Reclassification of acquisition deposit
  122,111     -  
Reclassification of building deposit
  -     178,276  

The accompanying notes found in the Company's Form 10-Q filed on February 16, 2021 are an integral part of these consolidated financial statements.

SOURCE: Concierge Technologies, Inc.

Concierge Technologies, Inc.
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