Goldmoney Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2023, Announces Proposed Share Consolidation, and Publishes Annual Letter to Shareholders
Toronto, Ontario--(Newsfile Corp. - June 13, 2023) - 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, 2023. All amounts are expressed in Canadian dollars unless otherwise noted.
Financial Highlights
Group Tangible Capital of $142.2 million, an increase of $7.4 million, or 5% Year-over-Year ("YoY").
Group Tangible Capital per Share increased to $2.03 from $1.78, or 14% YoY.
Group Precious Metal Position consisting of Coins, Bullion, and Bullion Denominated Loan of $65.7 million, an increase of 1% YoY.
Gold-Adjusted Tangible Capital per 100 Goldmoney Inc. shares of 2.4 grams.
Repurchased a total of 5,934,073 shares at an average purchase price of $1.67 in fiscal year 2023, reducing the share count by 7.8%.
Operating Income of $34.8 million, an increase of 46% YoY.
Net Income of $6.7 million, an increase of 210% YoY.
Basic and Diluted Earnings per Share of $0.09, an increase of 213% YoY.
Goldmoney.com Group Client Assets of $2.21 billion as at March 31, 2023.
Menē Inc. reported strong results in FY 2022, growing revenue to $26.9 million and generating gross profit of $6.6 million.
IFRS Consolidated Income Statement Data | |||||
($000s, except earnings per share) | 2023 | 2022 | 2021 | 2020 | 2019 |
Trading revenue | 302,854 | 350,246 | 654,410 | 458,873 | 281,544 |
Fee revenue | 15,864 | 8,367 | 8,875 | 4,413 | 2,356 |
Interest income | 1,789 | 388 | 861 | 1,926 | 1,812 |
Total revenue | 320,507 | 359,000 | 664,146 | 465,212 | 285,712 |
Cost of sales | (290,013) | (337,056) | (635,009) | (449,800) | (275,288) |
Gross margin | 30,494 | 21,944 | 29,137 | 15,413 | 10,424 |
Operating income | 34,840 | 23,868 | 28,099 | 20,461 | 12,382 |
Total operating expenses | (23,642) | (30,399) | (21,976) | (18,761) | (24,091) |
Net income (loss) | 6,695 | (6,062) | 11,652 | (9,713) | 21,680 |
Total comprehensive income (loss) | 6,747 | (6,019) | 11,071 | (11,353) | 22,721 |
Basic and diluted earnings (loss) per share | 0.09 | (0.08) | 0.15 | (0.13) | 0.28 |
Annual Shareholder Letter
Read the full Goldmoney Inc. Fiscal Year 2023 Shareholder Letter here.
Proposed Share Consolidation
The Company further announces that it intends to complete a consolidation of its common shares ("Common Shares") on the basis of five (5) pre-consolidation Common Shares for one (1) post-consolidation Common Shares (the "Consolidation"). The consolidation is expected to make the company's shares more accessible to institutional shareholders with investment mandates that necessitate a minimum share price of $5.00 per share.
No fractional Common Shares will be issued as a result of the Consolidation. Any fractional interest in Common Shares that is less than 0.5 of a Common Share resulting from the Consolidation will be rounded down to the nearest whole Common Share and any fractional interest in Common Shares that is equal to or greater than 0.5 of a Common Share will be rounded up to the nearest whole Common Share.
As of the date hereof, there are 70,002,473 Common Shares issued and outstanding. On a post-Consolidation basis, the Company shall have approximately 14,000,495 Common Shares issued and outstanding. It is expected that the Common Shares are expected to commence trading on a consolidated basis and with a new CUSIP number on or around June 23, 2023. The Company will not be changing its name in connection with the Consolidation. Completion of the Consolidation is subject to the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange. Pursuant to the Business Corporations Act (British Columbia) and the articles of the Company, shareholder approval of Consolidation is not required.
Shareholders who hold their shares through a securities broker or dealer, bank or trust company will not be required to take any measures with respect to the share consolidation. The Company's transfer agent, TSX Trust Company ("TSX Trust"), will mail a letter of transmittal to all registered shareholders of the Company that will contain instructions for exchanging their pre-Consolidation common shares for post-Consolidation common shares. Registered shareholders will be required to return their certificates representing pre-Consolidation common shares and a completed letter of transmittal to TSX Trust. Any registered shareholder who submits a duly completed letter of transmittal to TSX Trust along with pre-Consolidation share certificate will receive in return a post-Consolidation share certificate or Direct Registration System Advice. The exercise or conversion price of, and the number of common shares issuable under, any convertible securities of the Company will be proportionately adjusted upon the completion of the Consolidation.
Real Assets Strategy
The Company is pleased to announce the formation of Goldmoney Properties Limited, a wholly owned subsidiary of the Company. Through Goldmoney Properties Limited, the Company intends to acquire institutional grade real assets with contracted inflation-protected cash flows that exceed the Company's long-run estimation of inflation.
The reader is encouraged to read more about the anticipated investment strategy and acquisition parameters in the Fiscal 2023 Annual Shareholder Letter.
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, 2023 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.
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 March 31, 2023.
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 approximately $2.21 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. The Company has also recently formed Goldmoney Properties Limited to pursue the acquisition of institutional grade real assets for real returns in an inflationary environment. For more information about Goldmoney, visit goldmoney.com.
Media and Investor Relations inquiries:
Mark Olson
Chief Financial Officer
Goldmoney Inc.
+1 647 250 7098
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: financial performance and growth of the Company's business; expected results of operations, the market for the Company's products and services and competitive conditions; and the establishment of a real estate investment strategy. 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 and execute opportunities for growth internally and through acquisitions and strategic relationships on terms which are economic or at all; the ability to identify and complete the acquisition of suitable real estate investment opportunities 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. Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the Toronto Stock Exchange nor any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this news release.
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