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 first quarter ended June 30, 2020. All amounts are expressed in Canadian dollars unless otherwise noted.

Financial Highlights

• Record IFRS Quarterly Revenue of $173.5 million, an increase of $114.4 million, or 193% Year-over-Year (“YoY”).
• Record IFRS Quarterly Gross Profit of $10.6 million, an increase of 159% YoY and 30% Quarter-over-Quarter (“QoQ”).
• Record IFRS Quarterly Net Income of $6.0 million, an increase of 7,188% YoY and 177% QoQ.
• Basic and Diluted Earnings per share of $0.08, or 1.03 grams of gold per 1,000 Goldmoney shares (based on June 30, 2020 London Bullion Market 15:00 London BST gold price).
• Goldmoney.com Group client assets increased 10% QoQ to $2.29 billion as at June 30, 2020.
• SchiffGold continued to generate strong growth with a 267% increase in Revenue, 463% increase in Gross Margin and 2,195% increase in operating income.
• Investee Company Menē Inc. reported record quarterly revenue, gross profit and free cash flow during its quarter ended March 31, 2020.
• Corporate Metal Position consisting of Coins, Bullion and Bullion denominated loans increased $13.0 million, or 50% QoQ to $38.9 million as at June 30, 2020.
• Tangible Capital increased 5% QoQ to $120 million.

IFRS Consolidated Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement Data

               

 

 

 

               

 

 

($000s)

 

FY 2021

 

FY 2020

 

FY 2019

 

 

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Revenue

 

173,500

 

164,441

 

108,161

 

127,154

 

59,116

 

64,171

 

84,029

 

69,550

 

Gross margin

 

5,981

 

4,390

 

2,469

 

2,501

 

1,517

 

1,393

 

1,566

 

1,611

 

Fee Revenue

 

2,351

 

2,489

 

719

 

599

 

606

 

591

 

580

 

610

 

Interest income

 

239

 

374

 

461

 

536

 

555

 

416

 

448

 

502

 

Gross profit Excl. revaluation of precious metals

 

8,570

 

7,253

 

3,649

 

3,633

 

2,682

 

2,782

 

2,749

 

3,092

 

Gross profit Incl. revaluation of precious metals

 

10,615

 

8,157

 

4,369

 

5,636

 

4,104

 

2,069

 

4,152

 

2,182

 

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:

Dear Goldmoney Shareholder,

In the annual shareholder letter published on June 29, 2020 I predicted rich harvests for our group in the coming seasons. In this quarter of operations, which is the first to be disclosed since the letter’s publication, we can now observe how profitable our group of businesses can be. In just 90 days of operations, Goldmoney Inc. produced record IFRS Net Income of $6 million and record IFRS Gross Profit of over $10 million. But even these figures, though hard-earned and most welcomed, do not quite demonstrate the free cash flow we generated. Take, for example, the operating line items which consist of nearly $2 million of non-cash or extraordinary items. In other words, according to the way management thinks about the business, Goldmoney Inc. produced circa $8 million in earnings this past quarter. As I have sought to achieve for nearly two years, our extraordinary items are beginning to normalize, including G&A and Professional Fees; however, even here the picture isn’t entirely clear, and the amounts will, in time, reflect the true operation costs. As I type this statement, Group client assets stand at nearly $2.8 Billion, which is also a new record, and our corporate precious metal position is circa $45 million.

What a wonderful quarter: it is truly a testament to the investments we have made in building our business for a rising precious metal environment and, more importantly, to the years of difficult work by our team members across the world. I would like to thank our executives, our employees, and our colleagues for their tremendous efforts and dedication. We continue to be impressed by the strength of the precious metal markets and have positioned our group to benefit from what, to us, appears to be a nascent bull market.

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 June 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 June 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 200 countries hold over $2.8 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.

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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