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Concierge Technologies Reports Fiscal 2021 Financial Results

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·12-min read
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Revenues increase 49% to $39.9 million
Net income advances more than threefold to $5.8 million
Total assets rise 29% to $31.5 million

San Clemente, Calif., Sept. 22, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Concierge Technologies, Inc. (OTC: CNCG), a diversified global holding firm, today reported sharply higher financial results for the fiscal year ended June 30, 2021, compared with the prior fiscal year.

Revenues rose 49 percent to $39.9 million from $26.7 million for the prior year. Net income for the 2021 fiscal year advanced more than threefold to $5.8 million, equal to $0.15 per share, from $1.7 million, equal to $0.05 per share, for fiscal 2020.

The Company attributed the favorable performance principally to an increase in assets under management (AUM) by its Wainwright Holdings subsidiary, the holding company for United States Commodity Funds and USCF Advisors (together, “USCF”), currently managing two exchange-traded funds and eight exchange-traded products, all listed on the New York Stock Exchange. Average AUM had increased to $4.9 billion for the 2021 fiscal year from $3.0 billion for fiscal 2020.

Concierge Technologies’ “Other” operating segment – which consists of Gourmet Foods, Brigadier Security Systems and Original Sprout – registered higher total revenues for fiscal 2021, paced by Gourmet Foods, which completed an acquisition early in fiscal 2021. Total revenue for the “Other” segment was $14.7 million, up from $11.2 million for the prior fiscal year ended June 30, 2020. Net income attributed to the “Other” segment totaled approximately $600,000 for fiscal 2021, as compared with $800,000 for the prior fiscal year. The decline reflected a combination of one-time costs associated with relocation of facilities and the negative effects of the continuing COVID-19 pandemic.

The Company’s balance sheet remained strong at June 30, 2021, with total assets of $31.5 million, of which $16.1 million are held in cash and cash equivalents, up from total assets of $24.3 million at June 30, 2020. The Company has essentially no debt.

“Fiscal 2021 was an active and highly productive year,” said David Neibert, Concierge Technologies’ Chief Operations Officer. “In July 2020, we completed the acquisition of New Zealand-based Printstock Products, which prints wrappers for food products, including Gourmet Foods and others, and whose operations have been consolidated into Gourmet Foods. Our newest subsidiary, Marygold & Co., made excellent progress developing a proprietary banking and financial services app for sending, receiving, spending and saving securely through mobile devices. Marygold is now working toward completion of the testing phase prior to launch and widescale marketing. Brigadier Security Systems has pivoted nicely from residential hardware as a primary market to focus on commercial and public building clientele, where COVID-19 poses fewer restrictions to complete system installations. Lastly, Original Sprout completed a relocation to spacious new facilities in preparation for staging its entry into the big box distribution channel.”

Nicholas Gerber, Chief Executive Officer, said, “Adding to our financial services offerings, subsequent to the close of fiscal 2021 we formed a wholly owned subsidiary, Marygold & Co. (UK) Limited, which, in turn, signed a definitive agreement to acquire Tiger Financial & Asset Management Limited, an established and certified investment advisor in the U.K. Tiger’s core business is managing clients’ financial wealth across a diverse range of products, which eventually we hope will include services as provided by Marygold in the United States. The transaction is expected to close before the end of 2021 calendar year, subject to customary closing conditions, including approval of the U.K. Financial Conduct Authority (FCA).

“Our strategy of building a profitable, value-oriented business that provides stability for our shareholders is working well, as we build a solid foundation for the long-term. We look forward to continuing our progress in the years ahead,” Gerber added.

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. 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.

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, 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 in the development stage as it works toward introduction of a fintech mobile banking app. https://marygoldandco.com/

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, printing, 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. Such forward-looking statements, including, but not limited to, Marygold & Co. (UK) Limited gaining approval from the FCA, the timing of the completing the transaction and anticipated introduction of Marygold & Co.’s financial services business in the U.K. and EU next year, should not be read as guarantees 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 generally identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "looks to," "will," "should," "plan," "intend," "on condition," "target," "see," "potential," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes due to a number of important factors, including business effects, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov or the Company’s website at www.conciergetechnology.net. The Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of current information, future events or otherwise.

Media and investors, for more Information, contact:

Roger S. Pondel

PondelWilkinson Inc.

310-279-5965

rpondel@pondel.com

Contact the Company:

David Neibert, Chief Operations Officer

949-429-5370

dneibert@conciergetechnology.net

(Financial tables follow…)

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

June 30, 2021

June 30, 2020

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

16,072,955

$

9,813,188

Accounts receivable, net

1,070,541

717,841

Accounts receivable - related parties

2,038,054

2,610,917

Inventories

1,951,792

1,174,603

Prepaid income tax and tax receivable

747,343

857,793

Investments, at fair value

1,828,926

1,820,516

Other current assets

399,524

603,944

Total current assets

24,109,135

17,598,802

Restricted cash

13,989

12,854

Property, plant and equipment, net

1,573,445

1,197,192

Operating lease right-of-use asset

1,058,199

733,917

Goodwill

1,043,473

915,790

Intangible assets, net

2,341,803

2,541,285

Deferred tax assets, net - United States

827,476

767,472

Other assets, long - term

540,160

523,607

Total assets

$

31,507,680

$

24,290,919

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable and accrued expenses

$

3,862,874

$

2,843,616

Expense waivers – related parties

69,684

421,892

Operating lease liabilities, current portion

513,071

323,395

Notes payable - related parties

603,500

3,500

Loans-property and equipment, current portion

15,094

13,196

Total current liabilities

5,064,223

3,605,599

LONG-TERM LIABILITIES

Notes payable - related parties

-

600,000

Loans-property and equipment, net of current portion

379,804

359,845

Operating lease liabilities, net of current portion

607,560

447,062

Deferred tax liabilities, net - foreign

169,429

128,517

Total long-term liabilities

1,156,793

1,535,424

Total liabilities

6,221,016

5,141,023

STOCKHOLDERS' EQUITY

Convertible preferred stock, $0.001 par value; 50,000,000 authorized

Series B: 49,360 at June 30, 2021 and 53,032 issued and outstanding at June 30, 2020

49

53

Common stock, $0.001 par value; 900,000,000 shares authorized; 37,485,959 shares issued and outstanding at June 30, 2021 and 37,412,519 at June 30, 2020

37,486

37,413

Additional paid-in capital

9,330,843

9,330,912

Accumulated other comprehensive income (loss)

142,581

(144,744

)

Retained earnings

15,775,705

9,926,262

Total stockholders' equity

25,286,664

19,149,896

Total liabilities and stockholders' equity

$

31,507,680

$

24,290,919

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

Year Ended

Year Ended

June 30, 2021

June 30, 2020

Net revenue

Fund management - related party

$

25,169,182

$

15,459,061

Food products

8,263,267

4,745,821

Security systems

2,715,487

2,660,153

Beauty products and other

3,756,512

3,883,953

Net revenue

39,904,448

26,748,988

Cost of revenue

9,290,616

6,483,171

Gross profit

30,613,832

20,265,817

Operating expense

General and administrative expense

7,140,870

4,447,563

Fund operations

3,658,593

3,176,214

Marketing and advertising

2,952,295

2,601,104

Depreciation and amortization

599,979

601,826

Salaries and compensation

8,843,618

7,523,083

Total operating expenses

23,195,355

18,349,790

Income from operations

7,418,477

1,916,027

Other income:

Interest and dividend income

28,823

96,186

Interest expense

(40,375

)

(41,100

)

Other income, net

227,976

365,250

Total other income, net

216,424

420,336

Income before income taxes

7,634,901

2,336,363

Provision of income taxes

(1,785,458

)

(562,962

)

Net income

$

5,849,443

$

1,773,401

Weighted average shares of common stock

Basic and diluted

38,473,159

38,451,164

Net income per share

Basic and diluted

$

0.15

$

0.05

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

5,849,443

$

1,773,401

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

599,979

601,826

Stock-based vendor compensation

-

152,250

Deferred taxes

(19,092

)

44,163

Bad debt expense

9,753

5,746

Inventory provision

65,021

10,317

Unrealized gain on investments

(582

)

(5,113

)

Realized gain on sale of investments

-

(121,834

)

Gain on disposal of equipment

18,813

-

Operating lease right of use asset - non-cash lease cost

614,506

379,923

(Increase) decrease in operating assets:

Accounts receivable, net

(306,596

)

193,546

Accounts receivable - related party

572,863

(1,573,771

)

Deferred taxes, net

Prepaid income taxes and tax receivable

114,083

915,203

Inventories

(787,081

)

(202,079

)

Other current assets

223,590

(256,656

)

Increase (decrease) in operating liabilities:

Accounts payable and accrued expenses

978,726

28,963

Operating lease liabilities

(361,823

)

(380,460

)

Expense waivers - related party

(352,207

)

96,070

Net cash provided by operating activities

7,219,396

1,661,495

CASH FLOWS FROM INVESTING ACTIVITIES:

Cash paid for acquisition of business

(1,115,545

)

-

Cash paid for internally developed software

-

(217,990

)

Purchase of property, plant and equipment

(77,721

)

(559,274

)

Sale of investments

-

4,121,742

Purchase of investments

(7,827

)

(2,043,031

)

Net cash (used in) provided by investing activities

(1,201,093

)

1,301,447

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from property and equipment loans

-

385,728

Repayment of property and equipment loans

(28,434

)

(96,659

)

Net cash (used in) provided by financing activities

(28,434

)

289,069

Effect of exchange rate change on cash, cash equivalents and restricted cash

271,033

78,780


NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

6,260,902

3,330,791

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE

9,826,042

6,495,251

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE

$

16,086,944

$

9,826,042

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid during the period for:

Interest paid

$

16,095

$

16,754

Income taxes paid (refunded), net

$

3,063,781

$

(494,741

)

NON CASH INVESTING AND FINANCING ACTIVITIES

Reclassification of building deposit from other current assets to property, plant and equipment, net

$

-

$

178,276

Reclassification of business acquisition deposit

$

122,111

$

-

Establishment of operating right-of-use assets through operating lease obligations

$

730,741

$

1,150,916


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