Press release: https://www.goldmoney.com/corporate/news/goldmoney-inc-reports-record-revenue-and-net-income-for-second-quarter-2021
TORONTO – (November 9, 2020) – 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).
com Group client assets increased 13% QoQ to a new company record of $2.59 billion as at September 30, 2020.
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.
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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.