FRMO Corp. Announces First Quarter 2018 Financial Results and Conference Call

WHITE PLAINS, N.Y.--()--FRMO Corp. (the “Company” or “FRMO”) (OTC Pink:FRMO) today reported its financial results for the 2018 first quarter, which ended August 31, 2017 (May Fiscal Year).

Financial Highlights

FRMO’s book value as of August 31, 2017 was $118.7 million ($2.70 per share on a fully diluted basis), including $13.1 million of non-controlling interests. The figure from the prior fiscal year-end as of May 31, 2017 was $114.2 million ($2.60 per share) including $10.9 million of non-controlling interests. Current assets, comprised primarily of cash and equivalents and investments available for sale, amounted to $74.4 million as of August 31, 2017, and $71.3 million as of May 31, 2017. Total liabilities were $14.5 million as of August 31, 2017, compared to $13.1 million as of May 31, 2017, the majority of each being deferred taxes.

FRMO’s net income attributable to the Company was $2,187,439 ($0.05 per share basic and diluted) for the three months ended August 31, 2017 compared with $997,107 ($0.02 per share basic and diluted) for the quarter ended August 31, 2016. Income from operations was $3,215,483 for the first quarter of fiscal 2018, compared to $1,528,018 for the same period in the prior year. Comprehensive income (loss) was $1,987,494 for the first quarter of fiscal 2018 compared to $1,902,226 for the same period in the prior year. The figures in this paragraph reflect the Company’s retrospective adoption of Accounting Standards Update 2015-07, as disclosed in the financial statements.

Further details are available in the Quarterly Report of the Company’s Consolidated Financial Statements for the quarter ended August 31, 2017. 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, October 17, 2017 at 4:15 p.m. ET. Only questions submitted to info@frmocorp.com before 1:00 p.m. on the day of the call will be considered. The call can be accessed by dialing 1-888-857-6931 (domestic toll free) or 719-457-2605 (international toll) and entering the following conference ID: 8096032. A replay will be available from 7:15 p.m. on the day of the teleconference until Thursday, November 16, 2017. To listen to the archived call, dial 1-888-203-1112 (domestic toll free) or 719-457-0820 (international toll), and enter conference ID number 8096032.

 
Condensed Consolidated Balance Sheets
(in thousands)
    August 31,   May 31,
2017 2017
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 51,808 $   51,125
Bond and equity securities, available for sale, at fair value 21,683 18,933
Other current assets   905     1,219
Total Current Assets 74,396 71,277
Investment in South LaSalle Partners, LP 5,821 5,743
Investment in Winland Electronics, Inc. 773 739
Investments in limited partnerships 27,182 24,833
Investment in OneChicago LLC 246 246
Investment in Digital Currency Group Inc. 76 76
Investment in CNSX Markets, Inc. 243 243
Investment in Miami International Holdings, Inc. 250 250
Investment in National Stock Exchange Holdings, Inc. 249 249
Investment in The Bermuda Stock Exchange 2,716 2,704
Investment in Horizon Kinetics LLC 11,084 10,773
Participation in Horizon Kinetics LLC revenue stream   10,200     10,200
Total Assets $ 133,236 $   127,333
 
Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased $ 4,903 $ 4,131
Other current liabilities   374     140
Total Current Liabilities 5,277 4,271
Deferred Tax Liability   9,234     8,842
Total Liabilities 14,511 13,113
Stockholders' Equity   118,725     114,220
 
Total Liabilities and Stockholders' Equity $ 133,236 $   127,333
 
 
Condensed Consolidated Statements of Income
(amounts in thousands, except share data)
    Three Months Ended
August 31,   August 31,
2017   2016
(Unaudited)
Revenue:
Consultancy and advisory fees $ 438 $ 502
Income from investment partnerships

and limited liability companies

1,049 96
Unrealized gain from investments subject to net asset
valuation and fair value adjustments 1,764 945
Income from unconsolidated subsidiary 12 29
Other   137       178
Total Revenue 3,400 1,750
Total Expenses   185       222
 
Income from Operations 3,215 1,528
Provision for Income Taxes   1,041       471
Net Income 2,174 1,057
Less net income (loss) attributable to noncontrolling interests   (13 )     60
Net Income Attributable to FRMO Corporation $ 2,187     $ 997
 
Diluted Net Income per Common Share $ 0.05 $ 0.02
 
Weighted Average Common Shares Outstanding
Basic 43,953,155 43,953,155
Diluted 43,996,620 43,999,239
 

About FRMO Corp.

FRMO Corp. invests in and receives revenues based upon consulting and advisory fee interests in the asset management sector.

FRMO has 43,953,155 shares of common stock outstanding as of August 31, 2017.

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.

Contacts

FRMO Corp.
Thérèse Byars, 646-495-7337
Corporate Secretary
tbyars@frmocorp.com
www.frmocorp.com

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Release Summary

FRMO Corp. reported its financial results today for the 2018 first quarter ended 8/31/2017. A conference call is scheduled for Tuesday, Oct. 17, 2017

FRMO Corp.