Goldmoney Inc. Reports Record Quarterly Revenue, First-Ever Annual Profit, and 90% Growth in Tangible Capital at Year End Fiscal 2018Jun 22, 2018
TORONTO – (June 22 , 2018) – Goldmoney Inc. (TSX:XAU) (“Goldmoney”) (the “Company”), a precious metal financial service and technology company, today announced financial results for the fiscal year ended March 31, 2018. All amounts are expressed in Canadian dollars unless otherwise noted.
• First ever IFRS Annual Net Income of $5.7 million in Fiscal 2018 .
• First ever Non-IFRS Adjusted Net Profit of $10.1 million in Fiscal 2018.
• Annual Revenue in CAD of $572.4 million in Fiscal 2018 vs. $523.8 million in Fiscal 2017 , an increase of 9.3% Year over Year .
• Record Quarterly Revenue in CAD of $171.1 million in March 31, 2018 quarter vs. $149.8 million in December 31, 2017 quarter , an increase of 14% over sequential quarters.
• Precious Metal Revenue of $140.5 million in Q4 2018 vs. $127.5 million in Q3 2018 , highlighting strong organic growth and consistent outperformance versus industry peers in precious metals dealing .
• $30.6 million of Cryptocurrency Revenue compared to $22.4 million in prior quarter, an increase of 36.6% over sequential quarters for an organic business we built and deployed internally.
• Fully-Reserved Precious Metal Loan Portfolio up to $19.5 million vs. $8.6 million last year, earning the group $1.2 million of interest vs. $0.3 million in the prior fiscal year.
• $111.5 million in Cash and Tangible Capital ($1.46 per share) at Year End Fiscal 2018 vs. $58.7 million ($0.87 per share) in Fiscal 2017 , an increase of 90% Year over Year.
• 68% Per-Share Year-over-Year growth in gold-denominated Tangible Capital per share, highlighting management’s focus on a positive Return on Metal Weight (“ROMW”) on an annual basis.
Goldmoney Inc. Annual Shareholder Letter
We have prepared an annual shareholder letter, which includes additional information about the fiscal 2018 financial results and non-financial progress. Read Goldmoney’s 2018 letter to investors here.
Goldmoney Inc. New Corporate Video
The company is proud to share a new Corporate Video which can be found here.
Comments from Management
Roy Sebag, Founder and Chief Executive Officer of Goldmoney Inc.:
Fiscal 2018 was an excellent year for Goldmoney. I have prepared an extensive letter to investors which I hope our shareholders will take the time to read for a deeper dive into our results and future outlook.
James Turk, Lead Director of Goldmoney Inc.:
I congratulate the entire Goldmoney team for these exceptional results. While there are many aspects of the report worth noting, it is particularly gratifying to see the annual increase in Tangible Capital and the 68% per share yearly ROMW. These two metrics show that Goldmoney is accumulating real wealth for its shareholders.
Josh Crumb, Founder and Chief Strategy Officer of Goldmoney Inc.:
Goldmoney continues to take a long-term approach to maximizing shareholder value, recognizing that an annual group profit is the only sustainable way to realize our growth mission while still providing clients with the assurance of a sound and conservative balance sheet. As Roy further details in his annual letter, we are pleased with the Year over Year financial results and other qualitative and quantitative assessments of the group’s growing businesses. While the North American and European retail precious metals industry continues to face the dual challenge of decade-low consumer engagement in many products and extremely low realized volatility in dealing, Goldmoney is thriving. In what appears to be a challenging market for others, we continue to grow top line revenue and market share by focusing on delivering our clients increased platform services, the industry’s most trusted thought leadership, and continuous improvements in technology-driven engagement. We continue to invest in the Goldmoney group brands and position Goldmoney shareholders for increased demand across our products as the business cycle turns, where we believe clients will increasingly seek the safety of precious metals and alternative money outside of the core banking system during the ongoing unwind of the extraordinary monetary policy experiments and central bank interest rate-price fixing that has dominated capital markets for nearly a decade now. Looking ahead to Fiscal 2019, we hope to deliver another year of strong per-share ROMW gains as we deliver on our group’s investments in Menē and its spinout on the TSX Venture; BlockVault and our first corporate clients in institutional crypto-custody launching this summer.
Conference Call Information
The company will be hosting its annual conference call at 3:00 p.m. ET on Friday, June 22, to discuss earnings and provide a general corporate update. The call is open to investors and will be held by Roy Sebag, CEO of Goldmoney Inc., and Josh Crumb, Chief Strategy Officer of Goldmoney Inc.
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Please note that the conference line will be muted to all callers. Questions to be answered during the call can be emailed ahead of time to: [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.
Non-IFRS Adjusted Gain1 is a non IFRS financial measure. This figure excludes from comprehensive gain (loss) the impact of the following amounts: (i) any gains or losses on precious metals inventory, (ii) non-cash items, including the amortization of intangible assets or stock-based compensation, (iii) the impact of foreign exchange gains or losses, and (iv) unrealized gains or losses on investments held for sale. Refer to the MD&A for a detailed breakdown of these items.
Non-IFRS Cash Gain is a non IFRS financial measure. This figure excludes from comprehensive gain (loss) the impact of non-cash items, including the amortization of intangible assets or stock-based compensation. Refer to the MD&A for a detailed breakdown of these items.
Tangible Common Equity 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.
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, 2018.
About Goldmoney Inc.
Goldmoney Inc., a financial service company traded on the Toronto Stock Exchange (TSX:XAU), is a global leader in precious metal investment services and the world’s largest precious metals payment network. Safeguarding $1.8 billion in assets for clients located in more than 150 countries, Goldmoney is focused on a singular mission to make precious metals-backed savings accessible to all. Powered by Goldmoney’s patented technology, the Goldmoney® Holding is an online account that enables clients to invest, earn, or spend gold, silver, platinum, palladium and cryptocurrencies that are securely stored in insured vaults in seven countries. All bullion assets are fully allocated and physically redeemable property. Goldmoney Wealth Limited is regulated by the Jersey Financial Services Commission (JFSC) as a Money Services Business. Goldmoney Network is a reporting entity to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and is registered with the Financial Crimes Enforcement Network (FinCEN) in the U.S. For more information about Goldmoney, visit goldmoney.com.
Media and Investor Relations inquiries:
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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. (the “Company”) 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: (i) cash flow from the Company’s operations; (ii) general economic, financial market, regulatory and political conditions in which the Company operates; (iii) consumer interest in the Company’s products; (iv) competition; (v) anticipated and unanticipated costs; (vi) government regulations applicable to the Company’s business and operations, and its impacts thereon; (vii) the Company’s ability to obtain qualified staff, equipment, and services in a timely and cost-efficient manner; (viii) the Company’s ability to conduct operations in a safe, efficient and effective manner; (ix) the Company’s ability to carry out its marketing plans and their effectiveness; (x) the efficacy of the Company’s security measures; and (xi) the Company’s product development plans and timeframes for completion; 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.