SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 28, 1997
U.S. GLOBAL INVESTORS, INC.
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(Exact name of registrant as specified in its charter)
Texas 0-13928 74-1598370
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(State of other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification No.)
7900 Callaghan Road, San Antonio, Texas 78229
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 210-308-1234
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(Former name or former address, if changed since last report)
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
FEBRUARY 28, 1997 AND MARCH 3, 1997 SALE OF SECURITIES
U.S. Global Investors, Inc. (the "Registrant" or "U.S. Global") reduced its
investment in certain government notes ("Notes") financed by reverse repurchase
agreements with various broker-dealers when the two remaining Notes it held
matured. The Notes, with par values of $10.75 million and $15.975 million,
matured on February 28, 1997, and March 3, 1997, respectively. These
transactions strengthen the Registrant's balance sheet and improve its financial
ratios and cash flow. Going forward, the Registrant is expected to save annual
interest costs of $335,000.
ITEM 7. FINANCIAL STATEMENTS, INFORMATION AND EXHIBITS.
(b) Pro forma financial information: Unaudited Consolidated Balance Sheet
and Statement of Operations of Registrant at March 3, 1997.
(c) Exhibits.
None
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
U.S. Global Investors, Inc.
By:____________________________________
Susan B. McGee
Executive Vice President, Secretary
Dated: March 10, 1997
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U. S. GLOBAL INVESTORS,INC.
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UNAUDITED
CONSOLIDATED BALANCE SHEET AS OF
DECEMBER 31, PRO FORMA(1) PRO FORMA
1996 ADJUSTMENTS RESULTS
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<S> <C> <C> <C>
CURRENT ASSETS
CASH & INTEREST BEARING DEPOSITS .. 1,095,202 (365,709) 729,493
TRADING SECURITIES ................ 1,197,101 0 1,197,101
GOVERNMENT SECURITIES ............. 26,691,594 (26,691,594) 0
RECEIVABLES ....................... 1,867,582 (96,836) 1,770,746
DEFERRED TAX ASSET ................ 52,248 15,683 67,931
PREPAID EXPENSES .................. 697,684 0 697,684
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TOTAL CURRENT ASSETS ................ 31,601,411 (27,138,456) 4,462,955
NET FIXED ASSETS .................. 2,613,760 0 2,613,760
AVAILABLE-FOR-SALE SECURITIES .... 641,992 0 641,992
OTHER LONG-TERM ASSETS ............ 4,099,786 0 4,099,786
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TOTAL OTHER ASSETS ................ 4,741,778 0 4,741,778
TOTAL ASSETS ...................... 38,956,949 (27,138,456) 11,818,493
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UNAUDITED
CONSOLIDATED BALANCE SHEET AS OF
DECEMBER 31, PRO FORMA(1) PRO FORMA
1996 ADJUSTMENTS RESULTS
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CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER ........ 1,282,521 (125,044) 1,157,477
SECURITIES SOLD UNDER AGMT
TO REPURCHASE .................. 26,557,969 (26,557,969) 0
SUBORDINATED DEBENTURE ............ 1,233,131 (425,000) 808,131
OTHER CURRENT LIABILITIES ......... 85,658 0 85,658
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TOTAL CURRENT LIABILITIES ......... 29,159,279 (27,108,013) 2,051,266
TOTAL LONG-TERM LIABILITIES ....... 1,380,452 0 1,380,452
TOTAL LIABILITIES ................... 30,539,731 (27,108,013) 3,431,718
=========== =========== ===========
SHAREHOLDERS EQUITY
COMMON STOCK @ PAR ................ 339,464 0 339,464
ADDITIONAL PAID IN CAPITAL ........ 10,588,389 0 10,588,389
TREASURY STOCK .................... (667,208) 0 (667,208)
NET UNREALIZED HOLDING GAIN
(NET OF TAX) ................... 18,148 (23,448) (5,300)
RETAINED EARNINGS (DEFICIT) ....... (1,861,575) (6,995) (1,868,570)
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TOTAL SHAREHOLDERS EQUITY ........... 8,417,218 (30,443) 8,386,775
TOTAL LIABILITIES & SHLDR. EQUITY ... 38,956,949 (27,138,456) 11,818,493
=========== =========== ===========
0 0 0
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(1) SEE ITEM 2 TO THIS FORM 8-K FOR A DESCRIPTION OF THE TRANSACTION.
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U. S. GLOBAL INVESTORS,INC.
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CONSOLIDATED INCOME STATEMENT
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UNAUDITED
REVENUES QUARTER ENDED
DECEMBER 31, PRO FORMA(1) PRO FORMA
1996 ADJUSTMENTS RESULTS
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<S> <C> <C> <C>
MANAGEMENT FEES (NET) ............... 3,344,281 0 3,344,281
NET TRANSFER AGENCY FEES ............ 1,713,861 0 1,713,861
INVESTMENT INCOME ................... 931,912 0 931,912
OTHER FEES AND INCOME ............... 1,035,164 0 1,035,164
GOVERNMENT SECURITY INTEREST INCOME . 573,407 (573,407) 0
GOVERNMENT SECURITY ACCRETION TO PAR 237,993 (237,993) 0
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TOTAL REVENUE ....................... 7,836,618 (811,400) 7,025,218
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UNAUDITED
EXPENSES QUARTER ENDED
DECEMBER 31, PRO FORMA(1) PRO FORMA
1996 ADJUSTMENTS RESULTS
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TOTAL GENERAL & ADMINISTRATIVE ...... 5,697,519 0 5,697,519
DEPRECIATION & AMORTIZATION ......... 225,765 0 225,765
INTEREST & FINANCE CHARGES .......... 60,206 0 60,206
INTEREST EXPENSE - SEC SOLD
TO REPURCHASE .................. 758,113 (758,113) 0
INTEREST EXPENSE - SUBORDINATED
DEBENTURE ...................... 56,888 (42,688) 14,200
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TOTAL EXPENSES ...................... 6,798,491 (800,801) 5,997,690
INCOME (LOSS) BEFORE TAX ............ 1,038,127 (10,599) 1,027,528
FEDERAL TAXES ....................... 326,544 (3,604) 322,940
NET INCOME (LOSS) ................... 711,583 (6,995) 704,588
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PRO FORMA EARNINGS PER SHARE
Primary & Fully Diluted ............. $ 0.11 $ 0.01 $ 0.11
=========== =========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING
Primary & Fully Diluted ............. 6,600,802 6,600,802 6,600,802
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<FN>
(1) SEE ITEM 2 TO THIS FORM 8-K FOR A DESCRIPTION OF THE TRANSACTION.
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