Concierge Technologies Reports Fiscal First Quarter Financial Results

Balance Sheet Remains Strong, with Essentially No Debt

SAN CLEMENTE, CA / ACCESSWIRE / November 14, 2019 / Concierge Technologies, Inc. (OTCQB: CNCG), a diversified global holding firm, today announced financial results for the first fiscal quarter ended September 30, 2019.

The company reported revenues of $6.0 million for the three months ended September 30, 2019, compared with $7.2 million for the prior year. Net income for the most recent three-month period amounted to $54,892, equal to $0.00 per share, versus $285,954, or $0.01 per share, for the comparable prior year period.

Results for the fiscal 2020 first quarter, as anticipated, were impacted primarily by lower assets under management (AUM) at the company's Wainwright Holdings funds management subsidiary. Wainwright, which operates under the name, USCF Investments, currently manages 13 commodity-oriented exchange-traded funds (ETFs) that are listed on the New York Stock Exchange.

The company's Other business segment, which comprised approximately 50 percent of total revenues in the most recent first quarter vs 41 percent of revenues in last year's first quarter, achieved improved revenues and income for the fiscal 2020 period. 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 first fiscal quarter. Cash and cash equivalents totaled $6.9 million, compared with $6.5 million at June 30, 2019. Total stockholders' equity increased to $17.3 million at September 30, 2019 from $17.2 million at the end of fiscal 2019. The company has essentially no debt.

"USCF, our commodities-focused fund management subsidiary, experienced a decline in AUM throughout the past year, as did the entire commodities sector," said David Neibert, chief operations officer of Concierge Technologies. "Nevertheless, USCF continues to be profitable at current AUM levels and is expected to benefit when the cyclical trend for commodities shifts upward."

The table below summarizes the performance of the Financial Services business unit as compared to Other for the three-month periods ended September 30, 2019 and 2018.

($'s in thousands)

 
Financial Services For the Three Months Ended September 30,
 
 
Other Operating Units For the Three Months Ended September 30,
 
 
Concierge Corporate For the Three Months Ended September 30,
 
 
Consolidated For the Three Months Ended September 30,
 

 
2019
 
 
2018
 
 
Change
 
 
2019
 
 
2018
 
 
Change
 
 
2019
 
 
2018
 
 
Change
 
 
2019
 
 
2018
 
 
Change
 

 
 
 
 
 
 
 
$
 
 
%
 
 
 
 
 
 
 
 
$
 
 
%
 
 
 
 
 
 
 
 
$
 
 
%
 
 
 
 
 
 
 
 
$
 
 
%
 

Revenue

 
$
3,041
 
 
$
4,223
 
 
$
(1,182
)
 
 
(28
%)
 
$
2,987
 
 
$
2,954
 
 
$
33
 
 
 
1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
$
6,028
 
 
$
7,177
 
 
$
(1,149
)
 
 
 
 

% of total revenue

 
 
50
%
 
 
59
%
 
 
 
 
 
 
(9
%)
 
 
50
%
 
 
41
%
 
 
 
 
 
 
9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cost of revenue

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
1,769
 
 
$
1,838
 
 
$
(69
)
 
 
(4
%)
 
 
 
 
 
 
 
 
 
 
 
 
 
$
1,769
 
 
$
1,838
 
 
$
(69
)
 
 
 
 

Gross profit

 
$
3,041
 
 
$
4,223
 
 
$
(1,182
)
 
 
(28
%)
 
$
1,218
 
 
$
1,116
 
 
$
102
 
 
 
9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
$
4,259
 
 
$
5,339
 
 
$
(1,080
)
 
 
 
 

Operating expenses

 
 
2,843
 
 
 
3,633
 
 
$
(790
)
 
 
(22
%)
 
 
866
 
 
 
802
 
 
 
64
 
 
 
8
%
 
$
489
 
 
$
335
 
 
$
154
 
 
 
46
%
 
 
4,198
 
 
 
4,770
 
 
 
(572
)
 
 
 
 

% of total operating expenses

 
 
68
%
 
 
76
%
 
 
 
 
 
 
(8
%)
 
 
20
%
 
 
17
%
 
 
 
 
 
 
3
%
 
 
12
%
 
 
7
%
 
 
 
 
 
 
5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Income (loss) from operations

 
$
198
 
 
$
590
 
 
$
(392
)
 
 
(66
%)
 
$
352
 
 
$
314
 
 
$
38
 
 
 
12
%
 
$
(489
%)
 
 
(335
)
 
$
(154
)
 
 
(46
%)
 
$
61
 
 
$
569
 
 
$
(508
)
 
 
 
 

Other (expense) / income

 
 
15
 
 
 
(175
)
 
 
190
 
 
 
109
%
 
 
6
 
 
$
2
 
 
$
4
 
 
 
238
%
 
 
2
 
 
 
(6
)
 
$
8
 
 
 
133
%
 
 
23
 
 
 
(179
)
 
 
202
 
 
 
 
 

Income (loss) before income taxes

 
$
213
 
 
$
415
 
 
$
(202
)
 
 
(49
%)
 
$
358
 
 
$
316
 
 
$
42
 
 
 
13
%
 
$
(487
)
 
$
(341
)
 
$
(146
)
 
 
(43
%)
 
$
84
 
 
$
390
 
 
$
(306
)
 
 
 
 

"The management teams at our Other operating units continue to make good progress. They are building their respective businesses, with strategies in place for adding new, larger distribution channels to enhance growth," Neibert said.

"As a global holding company, our corporate goal remains to build a profitable, diverse organization, through organic growth, acquisitions and new ventures," added Nicholas Gerber, chairman and chief executive officer. "We are laser-focused on creating and sustaining tangible long-term value for all of our stakeholders, while at the same time not being reliant on any one business sector for that sustainability."

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.

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 13 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 and Canada.

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, adding new distribution channels and an expectation for the USCF operating subsidiary to benefit when the cyclical trend for commodities shifts upward, 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.

Financial Tables Follow

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

 
September 30, 2019
 
 
June 30,
2019
 

 
 
 
 
(AUDITED)
 

ASSETS

CURRENT ASSETS

Cash and cash equivalents

 
$ 
6,904,137
 
 
$ 
6,481,815
 

Accounts receivable, net

 
 
875,672
 
 
 
939,649
 

Accounts receivable – related parties

 
 
988,769
 
 
 
1,037,146
 

Inventories

 
 
1,049,184
 
 
 
1,008,662
 

Prepaid income tax and tax receivable

 
 
1,232,219
 
 
 
1,754,369
 

Investments

 
 
3,775,158
 
 
 
3,756,596
 

Other current assets

 
 
265,796
 
 
 
546,105
 

Total current assets

 
 
15,090,935
 
 
 
15,524,342
 

Restricted cash

 
 
12,543
 
 
 
13,436
 

Property and equipment, net

 
 
1,299,866
 
 
 
757,014
 

Operating lease right-of-use asset

 
 
1,005,006
 
 
 
–
 

Goodwill

 
 
915,790
 
 
 
915,790
 

Intangible assets, net

 
 
2,575,156
 
 
 
2,659,723
 

Deferred tax assets, net

 
 
859,696
 
 
 
859,696
 

Other assets, long – term

 
 
523,607
 
 
 
523,607
 

Total assets

 
$ 
22,282,599
 
 
$ 
21,253,608
 

 LIABILITIES AND STOCKHOLDERS' EQUITY
 
 

CURRENT LIABILITIES

Accounts payable and accrued expenses

 
$ 
2,533,875
 
 
$ 
2,867,081
 

Expense waivers – related parties

 
 
213,095
 
 
 
325,821
 

Current portion operating lease liabilities

 
 
361,996
 
 
 
–
 

Notes payable – related parties

 
 
3,500
 
 
 
3,500
 

Loans – property and equipment, current portion

 
 
13,153
 
 
 
26,241
 

Total current liabilities

 
 
3,125,619
 
 
 
3,222,643
 

LONG TERM LIABILITIES

Notes payable – related parties

 
 
600,000
 
 
 
600,000
 

Loans – property and equipment, net of current portion

 
 
380,200
 
 
 
61,057
 

Long-term operating lease liabilities

 
 
680,490
 
 
 
–
 

Deferred tax liabilities

 
 
176,578
 
 
 
176,578
 

Total long-term liabilities

 
 
1,837,268
 
 
 
837,635
 

Total liabilities

 
 
4,962,887
 
 
 
4,060,278
 

STOCKHOLDERS' EQUITY

Preferred stock, $0.001 par value; 50,000,000 authorized

Series B: 53,032 issued and outstanding at September 30, 2019 and at June 30, 2019

 
 
53
 
 
 
53
 

Common stock, $0.001 par value; 900,000,000 shares authorized; 37,412,519 shares issued and outstanding at September 30, 2019 and 37,237,519 at June 30, 2019

 
 
37,412
 
 
 
37,237
 

Additional paid-in capital

 
 
9,216,204
 
 
 
9,178,838
 

Accumulated other comprehensive (loss)

 
 
(141,710
)
 
 
(175,659
)

Retained earnings

 
 
8,207,753
 
 
 
8,152,861
 

Total stockholders' equity

 
 
17,319,712
 
 
 
17,193,330
 

Total liabilities and stockholders' equity

 
$ 
22,282,599
 
 
$ 
21,253,608
 

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

 
Three Months Ended
 
 
Three Months Ended
 

 
September 30, 2019
 
 
September 30, 2018
 

Net revenue

Fund management – related party

 
$ 
3,040,569
 
 
$ 
4,222,984
 

Food products

 
 
1,250,331
 
 
 
1,192,996
 

Security systems

 
 
773,277
 
 
 
858,651
 

Beauty products and other

 
 
963,673
 
 
 
902,328
 

Net revenue

 
 
6,027,850
 
 
 
7,176,959
 

Cost of revenue

 
 
1,769,393
 
 
 
1,838,384
 

Gross profit

 
 
4,258,457
 
 
 
5,338,575
 

Operating expense

General and administrative expense

 
 
1,117,149
 
 
 
1,072,932
 

Fund operations

 
 
809,836
 
 
 
1,265,655
 

Marketing and advertising

 
 
577,876
 
 
 
871,781
 

Depreciation and amortization

 
 
149,663
 
 
 
174,505
 

Salaries and compensation

 
 
1,543,022
 
 
 
1,384,982
 

Total operating expenses

 
 
4,197,546
 
 
 
4,769,855
 

Income from operations

 
 
60,911
 
 
 
568,720
 

Other (expense) income:

Other (expense) income

 
 
8,436
 
 
 
(174,661
)

Interest and dividend income

 
 
25,847
 
 
 
3,779
 

Interest expense

 
 
(11,005
)
 
 
(8,136
)

Total other (expense) income, net

 
 
23,278
 
 
 
(179,018
)

Income before income taxes

 
 
84,189
 
 
 
389,702
 

Provision of income taxes

 
 
29,297
 
 
 
103,748
 

Net income

 
$ 
54,892
 
 
$ 
285,954
 

Weighted average shares of common stock

Basic

 
 
37,325,019
 
 
 
29,559,139
 

Diluted

 
 
38,385,659
 
 
 
38,298,159
 

Net income per common share

Basic

 
$ 
0.00
 
 
$ 
0.01
 

Diluted

 
$ 
0.00
 
 
$ 
0.01
 

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

 
Three Months Ended
 
 
Three Months Ended
 

 
September 30, 2019
 
 
September 30, 2018
 

Net income

 
$ 
54,892
 
 
$ 
285,954
 

Other comprehensive income (loss):

Foreign currency translation gain (loss)

 
 
33,949
 
 
 
(11,583
)

Comprehensive income

 
$ 
88,841
 
 
$ 
274,371
 

Investors and media,
for more information, contact:

Roger S. Pondel
PondelWilkinson Inc.
310-279-5980
rpondel@pondel.com

SOURCE: Concierge Technologies, Inc.

ReleaseID: 566691