Goldmoney Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2021 and Publishes Annual Letter to ShareholdersJun 23, 2021
TORONTO – (June 23, 2021) – Goldmoney Inc. (TSX:XAU) (US:XAUMF) (“Goldmoney” or the “Company”), a precious metal financial service and technology company, today announced financial results for the fourth quarter and fiscal year ended March 31, 2021. All amounts are expressed in Canadian dollars unless otherwise noted.
- Record Annual Revenue of $654.4 million, an increase of $195.5 million or 43% Year-over-Year (“YoY”).
- Record Annual Gross Profit of $28.1 million, a $7.6 million or 37% increase YoY.
- Net Income of $11.7 million in FY 2021. This represents a $21.4 million or 220% increase YoY.
- Annual Fee Revenue increased by 101% YoY to a new company record of $8.9 million.
- Basic and Diluted Earnings per share of $0.15, an increase of $0.28 or 222% YoY.
- com reported an Annual 18% increase in Operating Income, 19% Annual increase in Gross Profit and 106% Annual increase in Gross Margin YoY.
- com Group Client Assets increased 9% YoY to $2.3 billion as at March 31, 2021.
- SchiffGold Annual Revenue increased $142 million or 88% YoY, and Annual Operating Income increased $1.8 million or 212% YoY.
- Corporate Metal Position of $47.5 million at end of the fiscal year including precious metal loans.
- Tangible Common Equity of $126.5 million, with $25.5 million in cash and cash equivalents. Total Shareholders’ Equity of $180.5 million as of the end of Q4 2021.
- Tangible Capital increased 9% YoY to $126.1 million.
- On June 18, 2021, the Company announced an agreement with Play Magnus Group, a global leader in the chess industry, to become the Official Precious Metals Partner of the Meltwater Champions Chess Tour as well as the presenting partner of the upcoming Goldmoney Asian Rapid. The Goldmoney Asian Rapid is the seventh tournament of the year-long Meltwater Champions Chess Tour, featuring the world’s best chess players competing for the largest prize fund in online chess on chess24.com. The Tour has achieved 90 million live broadcast views on online streaming platforms and a record-breaking 283K peak concurrent viewership for professional chess tournaments.
- On June 9, 2021, Totenpass Inc. (“Totenpass”), a 60% owned subsidiary of Goldmoney Inc., announced that Galactic Legacy Labs (“GLL”) selected the Totenpass proprietary gold storage drive technology as the backbone for its space commercialization ventures. As part of the agreement between Totenpass and GLL, Totenpass will earn an 18% stake in GLL and be paid an annual license fee of $125,000 USD in the first year, rising to $500,000 USD in the third year. In addition, Goldmoney Inc. will be making a C$750,000 investment in exchange for a 2.5% stake in GLL.
- In January 2021, the Company committed to a plan to restructure its operations by consolidating its com precious metal trading activities by transferring and combining the Jersey, Channel Islands operations with its Canadian operations. The restructuring is in accordance with the Company’s mandate to streamline the Goldmoney.com business through operational efficiencies and cost efficiencies.
Statement from Roy Sebag, Chairman and Chief Executive Officer:
Please read Roy Sebag’s annual shareholder letter which includes an essay entitled: “Gold’s Greatest Virtue” by visiting this link: https://gm-media-library.s3.eu-west-1.amazonaws.com/shareholder_letter_fy2021_d10a52c31c.pdf
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 and fiscal year ended March 31, 2021 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.
Shareholders of Goldmoney are encouraged to submit questions to management by emailing [email protected].
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 year ended March 31, 2021.
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 approximately $2.3 billion in precious metal assets. The company’s operating subsidiaries include: Goldmoney.com, SchiffGold.com and Goldmoney Lend & Borrow. 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.
Media and Investor Relations inquiries:
Chief Financial Officer
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.