XAU GoldMoney Inc

Goldmoney Inc. (TSX:XAU) (US:XAUMF) (“Goldmoney” or the “Company”), a precious metal financial service and technology company, today announced financial results for the second quarter ended September 30, 2020. All amounts are expressed in Canadian dollars unless otherwise noted.

Financial Highlights

• Record Quarterly Revenue of $243.6 million, an increase of 40% Quarter-over-Quarter (“QoQ”) and an increase of 92% Year-over-Year (“YoY”).
• Gross Profit of $10.4 million, an increase of 85% YoY.
• Record Quarterly Net Income of $7.5 million, an increase of 24% QoQ and 612% YoY.
• Basic and Diluted Earnings per share of $0.10, or 1.24 grams of gold per 1,000 Goldmoney shares (based on September 30, 2020 London Bullion Market 15:00 London BST gold price).
• Goldmoney.com Group client assets increased 13% QoQ to a new company record of $2.59 billion as at September 30, 2020.
• Goldmoney.com reported a 37% increase in Revenue, 197% increase in Gross Margin and 131% increase in Operating Income YoY.
• SchiffGold continued to generate strong growth with a 273% increase in Revenue, 219% increase in Gross Margin and 589% increase in operating income.
• Investee Company Menē Inc. (TSXV:MENE) reported a $1 million (40%) YoY increase in Revenue, and a $0.3 million (53%) increase in Gross Profit during its quarter ended June 30, 2020.
• Corporate Metal Position consisting of Coins, Bullion, and Bullion Denominated Loan increased by $7.6 million, or 20% QoQ to $46.5 million as at September 30, 2020, a new company record.
• Tangible Capital increased 3% QoQ to $123.2 million.

IFRS Consolidated Income

 

 

 

 

 

 

 

 

Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($000s, except earnings per share)

FY 2021

FY 2020

FY 2019

 

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Revenue

243,609

173,500

164,441

108,161

127,154

59,116

64,171

84,029

Gross margin

7,566

5,981

4,390

2,469

2,501

1,517

1,393

1,566

Fee revenue

1,776

2,351

2,489

719

599

606

591

580

Interest income

217

239

374

461

536

555

416

448

Gross profit Excl. revaluation of precious metals inventories

9,558

8,570

7,253

3,649

3,633

2,682

2,782

2,749

Gross profit Incl. revaluation of precious metals inventories

10,421

10,615

8,157

4,369

5,636

4,104

2,069

4,152

Net income (loss)

7,509

6,049

(7,892)

(2,958)

1,054

83

(2,313)

28,643

Basic earnings (loss) per share

0.10

0.08

(0.10)

(0.04)

0.01

0.00

(0.03)

0.37

Refer to “Use of Non-IFRS Financial Measures” and “Reconciliation of Non-IFRS Financial Measures” in the MD&A

Statement from Roy Sebag, Chairman and Chief Executive Officer:

As I forecast in my annual shareholder letter published on June 29, 2020, the rich harvests for Goldmoney continue. Fiscal second quarter 2021 performance was outstanding, establishing new all-time records in revenue and earnings per share. This quarter saw the group once again produce over $10 million in IFRS Gross Profit. Non-IFRS figures are even more impressive when correctly adjusting certain items such as stock-based compensation, foreign exchange movements, and professional fees, all of which, in our opinion, do not reflect the long-term earnings power of the group. Goldmoney shareholders should refer to the MD&A being published today as it includes several graphs and tables clearly displaying our results on a Return on Metal Weight basis.

Referring back to the annual shareholder letter, we remain laser-focused on the strategic goals we have set, and these results confirm that we are navigating the long-term path with great operational discipline. Corporate precious metals at quarter end were nearly $47 million and over $51 million as I write. In other words, we have already reached one of the strategic objectives set in the letter, which was ending this fiscal year with $50 million of precious metals on our balance sheet. Going forward, we see our precious metal position growing by a minimum of 5,000-7,500 gold equivalent troy ounces in fiscal year 2022. This will be achieved through operating profits and the redeployment of maturing non-precious metal loans into precious metals. Another impressive result this quarter is the growth in tangible capital notwithstanding the $6 million repurchase of shares that reduced total shares outstanding from 78 million to 75 million. We shall continue to buy back our shares as permitted by the Toronto Stock Exchange in line with the strategic objectives set out in the last annual shareholder letter. Our core business continues to perform well with client assets at $2.6 billion at quarter end. Both our coin and Mene’s jewelry business continue to exceed expectations. We are most enthusiastic about Menē as we believe that business has only scratched the surface of its potential.

I would like to thank our executives, employees, and colleagues for their contribution to our strong performance this quarter. I am especially grateful to our management team in Canada led by our COO, Paul Mennega, who has worked tirelessly to build and implement several enhancements to our operational processes over the past year, all of which have greatly contributed to these results.

Financial Information and IFRS Standards

The selected financial information included in this release is qualified in its entirety by, and should be read together with, the Company's consolidated financial statements for the quarter ended September 30, 2020 and prepared in accordance with International Financial Reporting Standards ("IFRS") and the corresponding management's discussion and analysis, which are available under the Company's profile on SEDAR at www.sedar.com.

Investor Questions

Shareholders of Goldmoney are encouraged to submit questions to management by emailing ir@goldmoney.com.

Non-IFRS Measures

This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company's operating results.

Tangible Capital is a non-IFRS measure. This figure excludes from total shareholder equity (i) intangibles, and (ii) goodwill, and is useful to demonstrate the tangible capital employed by the business.

Gross profit excluding gain/loss on revaluation of inventories is a non-IFRS measure, calculated as gross profit less gain/(loss) on revaluation of precious metals. The closest comparable IFRS financial measure is gross profit. Fluctuations in the value of its precious metal inventories caused by fluctuations in market prices are included in gross profit. Management believes that excluding such fluctuations more clearly illustrates the Company’s business operations.

For a full reconciliation of non-IFRS financial measures used herein to their nearest IFRS equivalents, please see the section entitled "Reconciliation of Non-IFRS Financial Measures" in the Company's MD&A for the quarter ended September 30, 2020.

About Goldmoney Inc.

Goldmoney Inc. (TSX: XAU) is a precious metal focused global business. Through its ownership of various operating subsidiaries, the company is engaged in precious metal sales to its clients, including arranging delivery and storage of precious metals for its clients, coin retailing, and lending. Goldmoney clients located in over 150 countries hold nearly $3 billion in precious metal assets. The company’s operating subsidiaries include: Goldmoney.com, SchiffGold.com and Lend & Borrow Trust. In addition to the Company’s principal business segments, the Company holds a significant interest in Menē Inc., which crafts pure 24-karat gold and platinum investment jewelry that is sold by gram weight. Through these businesses and other investment activities, Goldmoney gains long-term exposure to precious metals. For more information about Goldmoney, visit goldmoney.com.

Forward-Looking Statements

This news release contains or refers to certain forward-looking information. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “may”, “potential” and “will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. All information other than information regarding historical fact, which addresses activities, events or developments that the Goldmoney Inc. believes, expects or anticipates will or may occur in the future, is forward-looking information. Forward-looking information does not constitute historical fact but reflects the current expectations the Company regarding future results or events based on information that is currently available. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking information will not occur. Such forward-looking information in this release speak only as of the date hereof.

Forward-looking information in this release includes, but is not limited to, statements with respect to: service times for transactions on the Goldmoney network; growth of the Company’s business, expected results of operations, and the market for the Company’s products and services and competitive conditions. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the Company’s operating history; history of operating losses; future capital needs and uncertainty of additional financing; fluctuations in the market price of the Company’s common shares; the effect of government regulation and compliance on the Company and the industry; legal and regulatory change and uncertainty; jurisdictional factors associated with international operations; foreign restrictions on the Company’s operations; product development and rapid technological change; dependence on technical infrastructure; protection of intellectual property; use and storage of personal information and compliance with privacy laws; network security risks; risk of system failure or inadequacy; the Company’s ability to manage rapid growth; competition; the ability to identify opportunities for growth internally and through acquisitions and strategic relationships on terms which are economic or at all; effectiveness of the Company’s risk management and internal controls; use of the Company’s services for improper or illegal purposes; uninsured and underinsured losses; theft & risk of physical harm to personnel; precious metal trading risks; and volatility of precious metals prices & public interest in precious metals investment; and those risks set out in the Company’s most recently filed annual information form, available on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201109005335/en/

Media and Investor Relations inquiries: Renee Wei Director of Global Communications Goldmoney Inc. renee.wei@goldmoney.com Steve Fray Chief Financial Officer Goldmoney Inc. +1 647 250 7170