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 fourth quarter and fiscal year ended March 31, 2020. All amounts are expressed in Canadian dollars unless otherwise noted.

Financial Highlights

• Record Annual IFRS Revenue of $458.9 million, an increase of $177.3 million or 63% Year-over-Year (“YoY”).
• Record Annual Gross Profit of $22.3 million, a $9.9 million or 80% increase YoY. Growth Profit Percentage expanded 45 basis points to 4.85%.
• Record Quarterly IFRS Revenue of $164.4 million in Q4 2020, an increase of 156% compared to Q4 2019. Q4 IFRS Gross Profit of $8.2 million, an increase of $6 million or 294%, also a new record.
• Record Annual Fee Revenue of $4.4 million, an increase of $2.1 million or 87% over the prior year.
• Reduced Operating Expenses by $3.5 million, or 15% to $20.6 million during fiscal year 2020.
• Generated Operating Cash Flow of $2.5 million in the fiscal year an improvement of $7 million over the prior year.
• Tangible Common Equity of $114 million, with $36.6 million in cash and cash equivalents. Total Shareholders’ Equity of $172.4 million as of the end of Q4 2020.
• Corporate Metal Position of $16.5 million at end of the fiscal year excluding precious metal loans.
• Currency and Precious Metal Loans totaling $23.5 million of balance sheet capital extended to users against their precious metals and Menē Inc., earning interest rates ranging from 2.58% to 4.20% as at March 31, 2020.
• IFRS Net Loss of $9.7 million in FY 2020.
• Goldmoney.com Asset Under Custody increased by 18% YoY to $2.07 billion as at March 31, 2020.
• SchiffGold continued to generate strong growth with an 78% increase in revenue, 169% increase in gross margin, and 355% increase in operating income.

Business Highlights

• Increased equity stake in investment subsidiary Menē Inc. (TSXV:MENE). Menē recently reported record revenue and gross profit for its fiscal year ended December 31, 2019.
• Increased investment to reach 100% ownership in LBT Holdings Limited.
• Expanded the Goldmoney Global Vault Network with two new vault locations in Singapore and Frankfurt, Germany. The Company now offers vaulting options at 15 locations in eight countries in North America, Europe and Asia.
• Unveiled a new Vault-to-Vault Exchange feature that allows clients securely and effortlessly exchange metals from one vault to another on the Goldmoney Global Vault Network.
• Introduced a minimum monthly storage fee and optimized fee schedule to capture the full value of service and drive incremental margin growth.

IFRS Consolidated Income

Statement Data

 

(expressed in $000s)

 

FY 2020

   

FY 2019

 

 

 

Q4

 

Q3

 

Q2

 

Q1

   

Q4

 

Q3

 

Q2

 

Q1

 

Revenue

 

164,441

 

108,161

 

127,154

 

59,116

   

64,171

 

84,029

 

69,550

 

63,794

 

Fee revenue

 

2,489

 

719

 

599

 

606

   

591

 

580

 

610

 

575

 

Gross margin

 

4,390

 

2,469

 

2,501

 

1,517

   

1,393

 

1,566

 

1,611

 

1,686

 

Interest income

 

374

 

461

 

536

 

555

   

416

 

448

 

502

 

446

 

Gross profit excl. revaluation of precious metals inventories

 

7,253

 

3,649

 

3,633

 

2,682

   

2,782

 

2,749

 

3,092

 

3,321

 

Gross profit Incl. revaluation of precious metals inventories

 

8,157

 

4,369

 

5,636

 

4,104

   

2,069

 

4,152

 

2,182

 

3,978

                       

Refer to “Use of Non-IFRS Financial Measures” and “Reconciliation of Non-IFRS Financial Measures” in the MD&A.

COVID-19 Update

While the COVID-19 pandemic subdued global economic growth and increased volatility in the financial markets, it has accelerated demand for safe-haven assets such as precious metals. The Company is uniquely positioned to continue to serve its clients online and help them protect their financial wealth during this challenge time. As impact of the pandemic became clear in March 2020, the Company swiftly introduced a series of initiatives with a focus on supporting the physical and financial wellbeing of its clients, its staff and community, while safeguarding the long-term financial strength of the business:

• Transitioned global staff to remote work while maintaining the highest levels of security and client confidentiality.
• Temporarily closed all Goldmoney branch locations to walk-in traffic.
• Maintained the same 0.5% buy and sell fees and low storage costs that include full insurance.
• Optimized workforce and technology network to support heavy trading volumes and new client sign ups.
• Further drove cost reductions by minimizing non-essential operating and marketing expenses.

Annual Shareholder Letter

Read the full Goldmoney Inc. Fiscal Year 2020 Shareholder Letter here.

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, 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

In lieu of a conference call, shareholders of Goldmoney are encouraged to read the FY 2020 Shareholder Letter and submit any 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.

Non-IFRS Adjusted Gain1 is a non IFRS financial measure. This figure excludes from IFRS Net Income the impact of non-cash items, including the amortization of intangible assets and stock-based compensation. Refer to the MD&A for a detailed breakdown of these items.

Tangible Common Equity2 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.

Adjusted Gross Profit3 is a non IFRS financial measure, also referred to as Gross profit excluding gain/(loss) on revaluation of precious metals inventories. This figure excludes from Gross profit the gain (loss) on revaluation of precious metals inventories.

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, 2020.

About Goldmoney Inc.

Goldmoney Inc. (TSX: XAU) is a precious metal focused investment company. Through its ownership of various operating subsidiaries, the company is engaged in precious metal investment, custody and storage, jewelry, coin retailing, and lending. Goldmoney manages and oversees in excess of $2.0 billion in assets for clients around the world. The company’s operating subsidiaries include: Goldmoney.com, Menē Inc. (TSXV: MENĒ), SchiffGold.com, and Lend & Borrow Trust. 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