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Goldmoney Inc. (TSX:XAU, US:XAUMF) reported its Q1 2023 financial results ending June 30, 2022, with notable highlights including a 2% year-over-year increase in Group Tangible Capital to $129.5 million. The Group's Precious Metal position rose 19% year-over-year to $64.3 million. Share repurchases reduced the share count by 1%. However, the company experienced a net loss of (4.4 million) and a gross profit decline of 3,874 from the previous quarter. This reflects ongoing market volatility and challenges in precious metal valuations.
Positive
Group Tangible Capital increased by $2.2 million, or 2% YoY.
Group Precious Metal position increased by $64.3 million, up 19% YoY.
Repurchased 790,600 shares at an average price of $1.68, reducing share count by 1%.
Record Gross Margin Percentage of 4%, improving by 256 bps YoY.
Negative
Net loss of (4.4 million) compared to (6.35 million) previous quarter.
Gross profit declined to 2,103 from 10,277 in Q4 2022.
TORONTO--(BUSINESS WIRE)--
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, 2022. All amounts are expressed in Canadian dollars unless otherwise noted.
Financial Highlights
Group Tangible Capital of $129.5 million, an increase of $2.2 million, or 2% Year-over-Year (“YoY”).
Group Tangible Capital Per Share of $1.73, an increase of $.05 or 3% YoY.
Group Precious Metal position consisting of Coins, Bullion, and Bullion Denominated Loan of $64.3 million, an increase of 19% YoY.
Gold-Adjusted Tangible Capital per 100 Goldmoney Inc. shares of 2.35 grams.
Repurchased a total of 790,600 shares at an average purchase price of $1.68 during the quarter, reducing the share count by 1%.
Record Gross Margin Percentage of 4%, an improvement of 256 bps YoY.
Goldmoney.com Group Client Assets of $2 billion as at June 30, 2022.
Menē Inc. reported strong results in Q1 2022 growing its revenue by 2% to $7.3 million and produced a record quarterly operating income of $0.3 million.
IFRS Consolidated Income
Statement Data
($000s, except earnings per share)
FY 2023
FY 2022
FY 2021
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Revenue
73,460
119,456
67,071
69,013
94,706
139,709
97,592
243,609
Gross margin
2,974
3,890
2,478
2,845
3,977
2,453
3,401
7,566
Fee revenue
4,471
3,826
1,544
1,585
1,412
1,844
2,905
1,776
Interest income
164
99
85
100
103
211
195
217
Gross profit Excl. revaluation of precious metals
7,609
7,815
4,107
4,530
5,492
4,508
6,501
9,558
Gross profit Incl. revaluation of precious metals
2,103
10,277
5,763
1,661
6,167
2,146
4,917
10,421
Net income (loss)
(4,394)
(6,350)
2,620
(3,284)
951
(5,947)
4,041
7,509
Basic earnings (loss) per share
(0.06)
(0.08)
0.03
(0.04)
0.01
(0.08)
0.05
0.10
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:
In the quarter ended June 2022, Goldmoney demonstrated the resilience of our business model in the face of significant volatility in global markets. Our core business operations, when excluding the movement in our precious metals portfolio, produced $4.4 million in quarterly profits. These profits were earned and retained as precious metal, thereby increasing the weight of our group precious metal position by circa 8%. This is why, even in light of the mark to market drop in our precious metal portfolio seen in the income statement, the quarter end value of our precious metals on the balance sheet remained virtually the same. We also repurchased and canceled $1.3mm worth of shares in the quarter. At the end of the quarter, the Gold-Adjusted Tangible Capital per 100 shares of Goldmoney Inc. was 2.35 grams vs. 2.32 grams as of March 31, 2022. Our focus remains on growing this metric over time as we believe this strategy will generate the best long-term returns for our shareholders.
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 condensed consolidated interim financial statements for the quarter ended June 30, 2022 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 revaluation of precious metals 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, 2022.
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 and coin retailing. Goldmoney clients located in over 100 countries hold over $2 billion in precious metal and fiat currency assets. The Company’s operating subsidiaries include: Goldmoney.com, SchiffGold.com and Totenpass. 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.
