Goldmoney Inc. Reports Financial Results for Third Quarter of Fiscal 2024 for the Period Ending in December 31, 2023
Toronto, Ontario--(Newsfile Corp. - February 6, 2024) - Goldmoney Inc. (TSX: XAU) (US: XAUMF) ("Goldmoney" or the "Company"), today announced financial results for the financial quarter ended December 31, 2023. All amounts are expressed in Canadian dollars unless otherwise noted.
Financial Highlights
Group Tangible Equity of $147.1 million, an increase of $4.0 million, or 3% Year over Year ("YoY").
Group Tangible Equity per Share increased to $10.94 from $9.63, an increase of $1.31 per share, or 14% YoY.
Gold-Adjusted Tangible Equity per Goldmoney Inc. share of 0.125 grams, an increase of 14% YoY.
Repurchased a total of 122,800 common shares at an average purchase price of $7.97 during the quarter. Additionally, 212,600 shares and 280,000 warrants were cancelled in relation to the divestiture of Schiff Gold LLC. In total, the company's share count was reduced by over 2% during the quarter.
Quarterly Operating Income of $7.4 million, an increase of 53% YoY.
Net Income of $6.0 million, a decrease of 42% YoY vs. Q3 2023 which included an $8.2 million revaluation gain from precious metals.
Adjusted Net Income of $6.0 million, an increase of 73% YoY.
Basic Earnings per Share of $0.44.
Goldmoney.com Group Client Assets of $2.1 billion as at December 31, 2023.
The Company sold its wholly owned subsidiary Schiff Gold in December 2023.
IFRS Consolidated Income Statement Data (1) | ||||||||
FY 2024 | FY 2023 | FY 2022 | ||||||
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | |
Tangible equity | 147,078 | 143,019 | 143,475 | 142,203 | 143,118 | 133,319 | 129,533 | 134,850 |
Shares outstanding | 13,449 | 13,777 | 13,926 | 13,996 | 14,861 | 14,916 | 14,982 | 15,132 |
Tangible equity per share | 10.94 | 10.38 | 10.30 | 10.16 | 9.63 | 8.94 | 8.65 | 8.91 |
Precious metal revenue | 15,467 | 9,965 | 14,652 | 21,195 | 17,959 | 21,574 | 24,117 | 48,378 |
Investment property rental income | 3,004 | 1,060 | 1,028 | - | - | - | - | - |
Interest income | 638 | 676 | 790 | 703 | 553 | 369 | 164 | 99 |
Total revenue | 19,109 | 11,701 | 16,470 | 21,898 | 18,512 | 21,943 | 24,281 | 48,477 |
Precious metal operating expenses | 11,666 | 7,483 | 10,823 | 16,694 | 13,651 | 16,202 | 18,579 | 42,718 |
Operating income | 7,443 | 4,218 | 5,647 | 5,204 | 4,862 | 5,741 | 5,701 | 5,759 |
Corporate expenses | 1,768 | 1,611 | 2,382 | 11,130 | 1,490 | 1,871 | 2,673 | 15,244 |
Other (income) expenses | (209) | 671 | 1,270 | (2,350) | (6,970) | 31 | 7,708 | (2,982) |
Net income (loss) | 6,005 | 2,009 | 1,995 | (3,973) | 10,341 | 3,734 | (4,680) | (6,611) |
Non-IFRS Adjusted Net Income | 6,040 | 2,937 | 3,554 | 3,070 | 3,483 | 4,066 | 4,038 | 5,033 |
Basic earnings (loss) per share | 0.44 | 0.15 | 0.14 | (0.27) | 0.69 | 0.25 | (0.31) | (0.44) |
(1) The above table excludes SchiffGold results to allow users to evaluate the Company based on the results of its continuing operations.
Statement from Roy Sebag, CEO of Goldmoney Inc.
In the third quarter of fiscal year 2024, Goldmoney Inc. produced $6.0 million in IFRS Net income and $6.0 million of Non-IFRS Adjusted Net Income. This is our ninth consecutive quarter of profitability under the Non-IFRS Adjusted Income metric which excludes non-cash items such as precious metal and FX movements as well as depreciation and stock compensation.
Our precious metals business continued to perform well producing $3.8 million of quarterly operating income. This result reflects the disciplined cost-savings measures that were implemented over the past two years. These measures have become more visible in our operating results and will continue to positively impact our precious metals earnings over the remainder of the fiscal year. With the SchiffGold business now fully divested, it is also easier for shareholders to compute the long-run earnings power inherent to our core Goldmoney.com precious metals business.
Our property investment business produced $3.0 million quarterly operating income and $2.7 million of net income, reflecting the ownership of our three investment properties at quarter-end. This business segment, conducted through Goldmoney Properties Limited has substantially transformed our group's earnings power by introducing another long-term income stream. At quarter end, our property portfolio had an average remaining lease term of 14.75 years. Consequently, Goldmoney Properties is expected to contribute significant inflation-indexed cash flows to Goldmoney Inc. over the next decade and beyond. Perhaps more importantly, we believe that the three investment properties acquired from June 2023-December 2023 have intrinsic value in excess of the remaining contractual income. This is because each of the properties serves a mission critical purpose within the built-up environment either to the local community or the tenants who occupy them.
At the parent level, we shall continue to act prudently and when opportunities arise, intend to redeploy the cash flows generated by our two-core businesses. At this juncture, the options are rather clear: (i) further share repurchases at the parent level, (ii) precious metals purchases at the parent level, (ii) accelerated mortgage principal repayment at GPL, (iii) further acquisitions of investment property at GPL, and (iv) other capital investment activities at the parent level.
At Menē, our 24-karat jewelry business, the new management team continues the important work in reforming the business model for renewed sustainable growth. Shareholders should look to Menē's earnings release for a more comprehensive update from the company's CEO. The entire Goldmoney board supports the long-term strategic plan being executed by management and is pleased with the results thus far. Menē repaid in Q3 2024 the full balance of precious metal loans owed to Goldmoney Inc.
Goldmoney repurchased 122,800 shares of the company during the quarter. Additionally, 212,600 shares were canceled due to the divestiture of Schiff Gold. In total, 335,400 shares were canceled during the quarter resulting in shares outstanding of 13,449,000 on December 31, 2023. Since quarter end, the Company has repurchased and canceled a further 151,300 shares resulting in 13,306,350 shares outstanding as of February 1, 2024.
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.
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 Equity is a non-IFRS measure. This figure excludes from total shareholder equity (i) intangibles, and (ii) goodwill, and is useful to demonstrate the net 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 December 31, 2023.
About Goldmoney Inc.
Founded in 2001, Goldmoney (TSX: XAU) is a TSX listed company invested in the real economy. The leading custodians and traders of precious metals, Goldmoney Inc. also owns and operates businesses engaged in property investment and jewellery manufacturing. 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: service times for transactions on the Goldmoney network, future business plans, including joint ventures and acquisitions of real estate, future plans to diversify the Company's business, expectations on 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; real estate acquisition and maintenance risks; volatility of real estate prices & markets; precious metal trading risks; volatility of precious metals prices & public interest in precious metals investment; global financial conditions and the viability of the Company's business strategy in response to them; 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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