U.S. Global Investors Reports an 89% Increase in Net Income Quarter-over-Quarter, Announces Continuation of Monthly Dividends - Seite 2

“Leisure travel has already fully recovered to pre-pandemic levels, and there are now estimates that business travel won’t be too far behind,” continues Mr. Holmes. “Based on ticketing data analyzed by ForwardKeys, a travel intelligence and consultancy firm, global business travel is set to overtake leisure in July, and the gap may widen in the autumn and beyond.⁴ I believe this is bullish for the airline industry, and JETS in particular, since business travel has historically been a more lucrative source of revenue than leisure.

“As you may have read in the Investor Alert and Frank Talk, we believe the airline industry is a leading indicator of economic activity, the implication being that the overall economy is robust, despite the negative headlines. Airfares remain near the high end, and yet some airlines have reported record advance bookings for summer travel.⁵ I have been traveling quite a bit lately, and every airport is packed and nearly every flight is operating at full capacity.”   

Healthy Liquidity and Capital Resources

As of March 31, 2023, the Company had net working capital of approximately $36.9 million, an increase of $3.0 million, or 8.7%, since June 30, 2022. Total assets, including various corporate investments, stood at $55.7 million. With approximately $24.9 million in cash and cash equivalents, an increase of $2.6 million, or 11.8% since June 30, 2022, the Company has adequate liquidity to meet its current obligations.

Substantial Increase in Share Repurchases While Maintaining Monthly Dividend Policy

For the three months ended March 31, 2023, the Company repurchased 193,040 class A shares at a net cost of $556,000, a substantial increase from the 19,487 shares that were repurchased during the same period a year earlier.

The Company believes that its stock is undervalued, making the buybacks an attractive opportunity on flat or down days in anticipation of a potential rebound. The repurchase program has been in place since December 2012, and the Board of Directors (the “Board”) has renewed the repurchase program each calendar year.

The Company is also pleased to announce that it will continue its payment of monthly dividends. The Board approved payment of the $0.0075 per share per month dividend beginning in July 2023 and continuing through September 2023. The record dates are July 10, August 14 and September 11, and the payment dates will be July 24, August 28 and September 25.