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FRMO Corp. Announces Results for Fiscal 2019

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WHITE PLAINS, N.Y.–(BUSINESS WIRE)–FRMO Corp. (the “Company” or “FRMO”) (OTC Pink: FRMO) today reported its financial results for the fiscal year 2019, which ended May 31, 2019.

Financial Highlights

FRMO’s book value as of May 31, 2019 was $174.9 million ($3.98 per share on a fully diluted basis), including $48.6 million of non-controlling interests. The figure from the prior fiscal year-end as of May 31, 2018 was $146.9 million ($3.34 per share), including $27.6 million of non-controlling interests. Current assets, comprised primarily of cash and equivalents and equity securities, amounted to $118.3 million as of May 31, 2019, and $93.2 million as of May 31, 2018. Total liabilities were $16.7 million as of May 31, 2019, compared to $13.5 million as of May 31, 2018, primarily securities sold, not yet purchased and deferred taxes.

FRMO’s net income attributable to the Company for the fiscal year ended May 31, 2019 was $4,709,662 ($0.11 per share basic and diluted) compared to $14,052,518 ($0.32 per share) for the fiscal year ended May 31, 2018.

For the fiscal year 2019, comprehensive income attributable to the Company was $4,709,662 compared to $14,835,607 in the prior year.

FRMO’s net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities net of taxes for the three months ended May 31, 2019 was $3,398,500 ($0.08 per diluted share) compared to $(4,265,263) ($(0.10) per share) for the three months ended May 31, 2018. For the year ended May 31, 2019, the amount was $9,027,157 ($0.21 per share) compared to $14,052,518 ($0.32 per share) for the same period in the prior year. Net income (loss) attributable to the Company excluding the effect of unrealized gains (losses) from equity securities net of taxes is a measure not based on GAAP and is defined and reconciled to the most directly comparable GAAP measures in “Information Regarding Non-GAAP Measures” at the end of this release.

As of May 31, 2019 and May 31, 2018, the Company held a 15.49% and 12.92% equity interest in Horizon Kinetics Hard Assets LLC (“HKHA”), a company formed by Horizon Kinetics LLC and certain officers, principal stockholders and directors of FRMO Corp.(“the Company”). Due to the common control and ownership between HKHA and the Company’s principal stockholders and directors, HKHA has been consolidated within the Company’s financial statements. The noncontrolling interest of 84.51% and 87.08% in HKHA has been eliminated from results of operations for the periods ended May 31, 2019 and May 31, 2018.

Further details are available in the Company’s Consolidated Financial Statements for the fiscal year ended May 31, 2019. These statements have been filed on the OTC Markets Group Disclosure and News Services, which may be accessed at www.otcmarkets.com/stock/FRMO/filings. These documents are also available on the FRMO website at www.frmocorp.com.

Annual Meeting Information

The Chairman, President, and Board of Directors of FRMO Corp. cordially invite shareholders to attend the Company’s Annual Meeting of Shareholders at which the Chairman and President will review the Fiscal 2019 financial results and the outlook for the future. Board members will be available to answer questions.

Date:

Tuesday, September 10, 2019 at 3PM.

Location:

The Harvard Club of New York City

35 West 44th Street

New York, NY 10036

Admission to the FRMO Annual Meeting is limited to stockholders who owned Common Stock as of the close of business on July 26, 2019, the record date, or their duly appointed proxies, and one guest. Proof of ownership of FRMO stock and valid government-issued photo identification must be presented in order to be admitted to the Annual Meeting. Each guest must also present valid government-issued photo identification. If your shares are held in the name of a bank, broker, or other holder of record, you must bring a brokerage statement or other proof of ownership (or the equivalent proof of ownership as of the close of business on the record date of the stockholder who granted you the Proxy). If your shares are held in certificate form, ownership will be verified by consulting the list of Registered Shareholders as of the record date. Registration will begin at 2:00 p.m. No cameras, recording equipment, electronic devices, large bags, briefcases, or packages will be permitted in the Annual Meeting. Dress code for the Harvard Club is business casual (no jeans, sneakers, or athletic wear permitted).

 
Condensed Consolidated Balance Sheets
(in thousands)
May 31, May 31,

2019

 

2018

 
Assets
Current Assets:
Cash and cash equivalents

$ 53,081

$ 53,617

Equity securities, at fair value

63,565

38,522

Other current assets

1,639

1,095

Total Current Assets

118,285

93,234

Computer equipment, net of accumulated depreciation

95

76

Investment in limited partnerships and other
equity investments, at fair value

47,513

41,407

Investments in securities exchanges

3,641

3,709

Other investments

452

189

Investment in Horizon Kinetics LLC

11,488

11,624

Participation in Horizon Kinetics LLC revenue stream

10,200

10,200

Total Assets

$ 191,674

$ 160,439

 
Liabilities and Stockholders’ Equity
Current Liabilities:
Securities sold, not yet purchased

$ 8,133

$ 5,495

Other current liabilities

161

193

Total Current Liabilities

8,294

5,688

Deferred Tax Liability

8,383

7,757

Total Liabilities

16,677

13,445

 
Stockholders’ Equity:
Stockholders’ Equity Attributable to the Company

126,384

119,411

Noncontrolling interests

48,613

27,583

Total Stockholders’ Equity

174,997

146,994

 
Total Liabilities and Stockholders’ Equity

$ 191,674

$ 160,439

 
 
Condensed Consolidated Statements of Operations
(amounts in thousands, except share data)
Three Months Ended Year Ended
May 31, May 31, May 31, May 31,

2019

 

2018

 

2019

 

2018

(Unaudited)
Revenue:
Consultancy and advisory fees

$ 522

$ 511

$ 2,027

$ 3,257

Equity earnings from partnerships
and limited liability companies

2,360

318

2,560

3,782

Unrealized gains (losses) from investments recorded at fair value

1,283

(6,508)

3,839

8,351

Equity earnings (loss) from investment in The Bermuda Stock Exchange

(5)

3

181

17

Other

869

643

4,233

1,006

Total revenue before unrealized gains (losses) from equity securities

5,028

(5,033)

12,840

16,413

Unrealized gains (losses) from equity securities recorded at fair value

(3,376)

6,725

Total Revenue

1,652

(5,033)

19,565

16,413

Total Expenses

345

198

1,332

808

 
Income (Loss) from Operations

1,307

(5,231)

18,233

15,605

Provision for (Benefit from) Income Taxes

661

(1,171)

1,026

1,382

Net Income (Loss)

646

(4,060)

17,207

14,223

Less net income (loss) attributable to noncontrolling interests

(955)

205

12,498

171

Net Income (Loss) Attributable to FRMO Corporation

$ 1,601

$ (4,265)

$ 4,709

$ 14,052

 
Diluted Net Income (Loss) per Common Share

$ 0.04

$ (0.10)

$ 0.11

$ 0.32

 
Weighted Average Common Shares Outstanding
Basic

43,976,781

43,973,781

43,974,940

43,959,554

Diluted

44,015,088

43,973,781

44,016,535

44,007,828

 

About FRMO Corp.

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

FRMO had 43,976,781 shares of common stock outstanding as of May 31, 2019.

For more information, visit our website 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.

Information Regarding Non-GAAP Measures

Net income attributable to the Company excluding the effect of unrealized gain (loss) from equity securities is net income attributable to the Company exclusive of unrealized gains or losses from equity securities, net of tax. Net income attributable to the Company is the GAAP measure most closely comparable to net income attributable to the Company excluding the effect of unrealized gain (loss) from equity securities.

Management uses net income attributable to the Company excluding the effect of unrealized gain (loss) from equity securities, along with other measures, to gauge the Company’s performance and evaluate results, which can be skewed when including unrealized gains from equity securities, which may vary significantly between periods. Net income attributable to the Company excluding the effect of unrealized gain (loss) from equity securities are provided as supplemental information, and are not a substitute for net income attributable to the Company and do not reflect the Company’s overall profitability.

The following table reconciles the net income attributable to the Company excluding the effect of unrealized gain (loss) from equity securities to net income attributable to the Company for the periods indicated:

       
Three Months Ended   Three Months Ended   Year Ended   Year Ended
May 31, 2019   May 31, 2018   May 31, 2019   May 31, 2018
(Unaudited)   (Unaudited)    
               
Amount   Diluted
earnings
per
common
share
  Amount   Diluted
earnings
per
common
share
  Amount   Diluted
earnings
per
common
share
  Amount   Diluted
earnings
per
common
share
(000’s except per common share amounts and percentages)              
Net Income Attributable to the Company Excluding the Effect of Unrealized Gain (Loss) from Equity Securities and Diluted Earnings per Common Share Reconciliation:              
               
Net income (loss) attributable to the Company

$

1,601

 

$

0.04

 

$

(4,265)

 

$

(0.10)

 

$

4,709

 

$

0.11

 

$

14,053

 

$

0.32

               
Unrealized gain (loss) from equity securities

 

(3,376)

   

 

   

 

6,725

   

 

 
Unrealized gain (loss) from equity securities attributable to noncontrolling interests

 

(1,319)

   

 

   

 

12,135

   

 

 
Unrealized gain (loss) from equity securities attributable to the Company

 

(2,057)

   

 

   

 

(5,410)

   

 

 
Tax benefit on unrealized gain (loss) from equity securities attributable to the company

 

260

   

 

   

 

1,092

   

 

 
Unrealized (loss) from equity securities attributable to the Company, net of taxes

 

(1,797)

 

$

(0.04)

 

 

 

$

0.00

 

 

(4,318)

 

$

(0.10)

 

 

 

$

0.00

         

 

     
Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities

$

3,398

 

$

0.08

 

$

(4,265)

 

$

(0.10)

 

$

9,027

 

$

0.21

 

$

14,053

 

$

0.32

               
Weighted average diluted shares outstanding

 

44,015,088

   

 

43,973,781

   

 

44,016,535

   

 

44,007,828

 
               

 

Contacts

Thérèse Byars

Corporate Secretary

Email: tbyars@frmocorp.com

Telephone: 646-495-7337

www.frmocorp.com

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Business Wire

Over 100 Blue Bird Electric School Buses Plugging into Districts

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Blue Bird’s clean, green electric school bus technology expands with Cummins partnership, saving schools money and cutting emissions

MACON, Ga.–(BUSINESS WIRE)–Across North America, some students going back to school this fall will ride electric school buses. More than 100 electric school buses, powered by a Cummins fully electric drivetrain, have been ordered to date from Blue Bird Corporation, a school bus manufacturer highly focused on alternative fuel technologies.


Blue Bird electric buses are already operating in California, North Dakota and Washington. Additional buses on order will transport students in California, Colorado, New Jersey, New York and Quebec later this year or in 2020.

“The amount of interest has been outstanding; people are very excited about a 100-percent electric-powered school bus,” said Phil Horlock, president and CEO of Blue Bird Corporation. “The nation is increasingly influenced in electric vehicle transportation in general, and we anticipate rapid growth of electric school buses as more districts are educated on the zero-emissions and low-maintenance benefits they bring to their local communities.”

Blue Bird has been working with electric technology in school buses since 1994, and recently partnered with the Cummins Electrified Power business segment. Cummins produces the all-electric drivetrains that power Blue Bird’s Vision Electric and All American Electric buses. The partnership brings over 30 years of electric drivetrain experience to this fast-growing segment, and almost 200 combined years of leadership in customer support. Over the next three years, Cummins is investing $500 million in electrification to bring dependable, high quality, fully electric and hybrid solutions to market across a wide range of applications.

“Cummins and Blue Bird are committed to supporting customers and ensuring that we are safely transporting our children and improving air quality for communities,” said Julie Furber, vice president of electrified power at Cummins Inc. “Schools can count on Cummins to deliver the same level of support and service network for these electric buses that we’ve always delivered through our more than 200 wholly-owned branch locations and 3,200 service technicians in North America.”

The innovative Blue Bird electric bus delivers abundant benefits to students, drivers and taxpayers. The buses produce zero emissions, improve air quality and require less maintenance, saving districts time and money. The buses are capable of up to 120 miles of range and can be recharged in approximately eight hours using a standard SAE J1772 Level 2 charger, making overnight charging convenient.

For more information on Blue Bird’s electric school buses, visit www.blue-bird.com/electric.

About Blue Bird Corporation

Blue Bird (Nasdaq: BLBD) is the leading independent designer and manufacturer of school buses, with more than 550,000 buses sold since its formation in 1927 and approximately 180,000 buses in operation today. Blue Bird’s longevity and reputation in the school bus industry have made it an iconic American brand. Blue Bird distinguishes itself from its principal competitors by its singular focus on the design, engineering, manufacture and sale of school buses and related parts. As the only manufacturer of chassis and body production specifically designed for school bus applications, Blue Bird is recognized as an industry leader for school bus innovation, safety, product quality/reliability/durability, operating costs and drivability. In addition, Blue Bird is the market leader in alternative fuel applications with its propane-powered, electric-powered and compressed natural gas-powered school buses. Blue Bird manufactures school buses at two facilities in Fort Valley, Georgia. Its Micro Bird joint venture operates a manufacturing facility in Drummondville, Quebec, Canada. Service and after-market parts are distributed from Blue Bird’s parts distribution center located in Delaware, Ohio. For more information on Blue Bird’s complete line of buses, visit www.blue-bird.com.

About Cummins®, Inc.

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including battery systems, fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana (U.S.A.), since its founding in 1919, Cummins employs approximately 62,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and over 7,600 dealer locations and earned about $2.1 billion on sales of $23.8 billion in 2018.

Contacts

Justyne Lobello | 478.396.3487 | Justyne.Lobello@blue-bird.com

 

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Business Wire

Shareholder Alert: Robbins Arroyo LLP Announces Another Complaint Filed Against Casa Systems, Inc. (CASA)

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SAN DIEGO & ANDOVER, Mass.–(BUSINESS WIRE)–$CASA #classaction–Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Casa Systems, Inc. (NASDAQ: CASA) has filed a class action complaint against the company for alleged violations of the Securities Act of 1933 pursuant to its December 2017 initial public offering (“IPO”). Casa Systems provides customers with software-centric broadband connectivity in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa.

If you suffered a loss as a result of Casa Systems’ misconduct, click here.

Casa Systems, Inc. (CASA) Accused of Misleading Investors in IPO

According to the complaint, Casa Systems held its initial public offering in December 2017 offering 6,000,000 common shares at $13 per share. Its registration documents stated that its core CCAP products and new technology initiatives would allow for a compelling market opportunity and touted the fact that these initiatives would prompt Casa Systems to experience continued rapid growth. However, these documents were false and misleading as Casa Systems failed to disclose material information about the state of its customers’ spending. In reality, Casa Systems knew its key customers’ spending had entered a “digestion” period that curtailed any new product purchases. On August 14, 2018, Casa Systems announced disappointing financial results and cut its revenue guidance for the year by $50 million. On this news, Casa Systems stock declined from $15.60 to $12.08, a drop of almost 23%. Since then, Casa Systems has continued to have disappointing financial results and the stock now trades at just $6.56, a decline of 49% from its IPO price.

Casa Systems, Inc. (CASA) Shareholders Have Legal Options

Contact us to learn more:

Leo Kandinov

(800) 350-6003

lkandinov@robbinsarroyo.com

Shareholder Information Form

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

Contacts

Leo Kandinov

Robbins Arroyo LLP

5040 Shoreham Place

San Diego, CA 92122

LKandinov@robbinsarroyo.com

(619) 525-3990 or Toll Free (800) 350-6003

www.robbinsarroyo.com

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Business Wire

JSR Establishes Investment Subsidiary to Accelerate New Business Development

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TOKYO–(BUSINESS WIRE)–JSR Corporation has announced that it will establish a wholly-owned subsidiary for investment (Limited Liability Company) to accelerate new business development around digital technologies. The subsidiary, JSR Active Innovation Fund, LLC, will launch on October 1, 2019, and will invest globally in start-up companies mainly focusing on digital technology.

With the rapid growth of digitization and innovations generated from start-ups, the conventional market structure will change dramatically in the near future, and all companies will need to seek new business models that utilize digital technology,” said Eric Johnson, CEO of JSR Corporation.

JSR has been actively and globally investing in start-ups that have innovative technology or business models. For example, JSR recently invested in Carbon, a Silicon Valley based digital manufacturing company that invented a new process called Digital Light SynthesisTM enabling rapid production at scale.

Through further strategic investment via the new subsidiary, JSR will accelerate new business development and provide new value by combining JSR knowledge and experience with innovative technology and business models generated by starts-ups.

Investment by JSR Active Innovation Fund LLC will begin with an initial round of 3 billion yen and is expected to grow up to 10 billion yen. Through this investment activity, JSR will collaborate with start-ups as strategic partners and support further expansion.

Contacts

Missy Bindseil

mbindseil@jsr-nahq.com

830-237-9527

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