Mr. Roy Sebag reports
GOLDMONEY INC. REPORTS RECORD QUARTERLY REVENUE, FIRST-EVER ANNUAL PROFIT, AND 90% GROWTH IN TANGIBLE CAPITAL AT YEAR END FISCAL 2018
Goldmoney Inc. has released its financial results for the fiscal year ended March 31, 2018.
Financial highlights
First-ever international financial reporting standards annual net income of $5.7-million in fiscal 2018;First-ever non-IFRS adjusted net profit of $10.1-million in fiscal 2018; Annual revenue of $572.4-million in fiscal 2018 versus $523.8-million in fiscal 2017, an increase of 9.3 per cent year over year; Record quarterly revenue of $171.1-million in March 31, 2018, quarter versus $149.8-million in Dec. 31, 2017, quarter, an increase of 14 per cent over sequential quarters;Precious metal revenue of $140.5-million in Q4 2018 versus $127.5-million in Q3 2018, highlighting strong organic growth and consistent outperformance versus industry peers in precious metals dealing;$30.6-million of cryptocurrency revenue compared with $22.4-million in prior quarter, an increase of 36.6 per cent over sequential quarters for an organic business the company built and deployed internally;Fully reserved precious metal loan portfolio up to $19.5-million versus $8.6-million last year, earning the group $1.2-million of interest versus $300,000 in the prior fiscal year;$111.5-million in cash and tangible capital ($1.46 per share) at year-end fiscal 2018 versus $58.7-million (87 cents per share) in fiscal 2017, an increase of 90 per cent year over year;68-per-cent-per-share year-over-year growth in gold-denominated tangible capital per share, highlighting management's focus on a positive return on metal weight (ROMW) on an annual basis.
IFRS CONSOLIDATED INCOME STATEMENT DATA(expressed in thousands) FY 2018 FY 2017Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1Revenue $171,102 $149,819 $126,274 $125,211 $131,851 $139,149 $140,391 $112,409Fee Revenue580584645661713633711655Gross margin 2,2501,9039581,3201,2841,4011,5431,361Gross profit (excludingrevaluation of inventories)3,6639,6922,0424,4082,0462,1382,4002,060Gross profit (includingrevaluation of inventories)2,4869,6302,0703,7012,0751,4582,3232,858
Comments from management
Roy Sebag, founder and chief executive officer of Goldmoney, said:
"Fiscal 2018 was an excellent year for Goldmoney. I have prepared an extensive letter to investors which I hope our shareholders will take the time to read for a deeper dive into our results and future outlook."
James Turk, lead director of Goldmoney, said:
"I congratulate the entire Goldmoney team for these exceptional results. While there are many aspects of the report worth noting, it is particularly gratifying to see the annual increase in tangible capital and the 68-per-cent-per-share yearly ROMW. These two metrics show that Goldmoney is accumulating real wealth for its shareholders."
Josh Crumb, founder and chief strategy officer of Goldmoney, said:
"Goldmoney continues to take a long-term approach to maximizing shareholder value, recognizing that an annual group profit is the only sustainable way to realize our growth mission while still providing clients with the assurance of a sound and conservative balance sheet. As Roy further details in his annual letter, we are pleased with the year-over-year financial results and other qualitative and quantitative assessments of the group's growing businesses. While the North American and European retail precious metals industry continues to face the dual challenge of decade-low consumer engagement in many products and extremely low realized volatility in dealing, Goldmoney is thriving. In what appears to be a challenging market for others, we continue to grow top-line revenue and market share by focusing on delivering our clients increased platform services, the industry's most trusted thought leadership, and continuous improvements in technology-driven engagement. We continue to invest in the Goldmoney group brands and position Goldmoney shareholders for increased demand across our products as the business cycle turns, where we believe clients will increasingly seek the safety of precious metals and alternative money outside of the core banking system during the ongoing unwind of the extraordinary monetary policy experiments and central bank interest rate-price fixing that has dominated capital markets for nearly a decade now. Looking ahead to fiscal 2019, we hope to deliver another year of strong per-share ROMW gains as we deliver on our group's investments in Mene and its spinout on the TSX Venture and BlockVault and our first corporate clients in institutional crypto-custody launching this summer."
Conference call information
The company will be hosting its annual conference call at 3 p.m. ET on Friday, June 22, to discuss earnings and provide a general corporate update. The call is open to investors and will be held by Mr. Sebag and Mr. Crumb.
Participant access code: 362764
Dial-in numbers
Toronto: 1-647-478-7145
New York: 1-917-962-0650
London: 44-203-769-6819
Questions
Please note that the conference line will be muted to all callers. Questions to be answered during the call can be e-mailed ahead of time to ir@goldmoney.com.
About Goldmoney Inc.
Goldmoney, a financial service company traded on the Toronto Stock Exchange, is a global leader in precious metal investment services and the world's largest precious metals payment network. Safeguarding $1.8-billion in assets for clients located in more than 150 countries, Goldmoney is focused on a singular mission to make precious-metal-backed savings accessible to all.
We seek Safe Harbor.
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