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Goldmoney Inc. Reports Financial Results for Third Quarter of Fiscal 2024 for the Period Ending in December 31, 2023

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Goldmoney Inc. Reports Financial Results for Third Quarter of Fiscal 2024 for the Period Ending in December 31, 2023

 

 

 

 

 

Goldmoney Inc. (TSX: XAU) (US: XAUMF) 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.
  • 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)
($000s, except per share amounts)
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 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.

 

Posted February 6, 2024

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