Menē Inc. (TSX-V:MENE) (US:MENEF) (“Menē” or the “Company”),
an online 24 karat investment jewelry brand, today announced financial
results for the fourth quarter and fiscal year ended December 31, 2018.
All amounts are expressed in Canadian dollars unless otherwise noted.
FINANCIAL HIGHLIGHTS:
-
Record IFRS Annual Revenue of $7.9 million in 2018, a $7.9 million
(12,305%) increase Year-over-Year (“YoY”). Non-IFRS Adjusted
Annual Revenue1 was also a company record of $9.3 million.
-
Record IFRS Quarterly Revenue of $3.5 million in Q4 2018, an increase
of $1.5 million (77%) Quarter-over-Quarter (“QoQ”). Non-IFRS
Adjusted Quarterly Revenue1 of $3.9 million was also a
record in Q4 2018.
-
Consolidated IFRS Gross Profit of $1.6 million in 2018, including $1.0
million in Q4, up $0.8 million (372%) QoQ. Non-IFRS Adjusted Gross
Profit2 of $1.9 million in 2018, including $1.1 million in
Q4 2018. All record highs.
-
Gross Margin expanded 1,800 basis points to 28% in Q4 as compared to
10% in Q3 2018. The Gross Margin for the year ended 2018 was 20%.
-
Non-IFRS Adjusted Loss3 of $0.5 million in Q4 2018, a
record low for the Company amidst record quarterly revenue and gross
profit.
-
Sold 19,140 units of jewelry through 14,063 customer orders in 2018, a
23,825% and 18,904% increase respectively compared to 2017.
-
Gold and platinum weight sold increased progressively each quarter. In
Q4, gold weight sold increased by 10.2 kilograms (33%) and platinum
weight sold increased by 4.9 kilograms (113%) from Q3 2018.
-
Q4 Basic and Diluted Net Loss per Share of nil, stable compared to
loss of $0.01 per share in Q3 2018.
-
Tangible Common Equity of $18.5 million as of December 31, 2018, an
increase of $8.4 million (84%) QoQ, demonstrating the Company’s
ability to raise capital and its high-margin and low fixed-cost
business model.
2018 OPERATIONAL HIGHLIGHTS:
-
Officially launched Mene.com website and brand to the public on
January 6, 2018
-
Introduced 164 new product designs over the course of 2018.
-
Ramped up production output by producing $9.7 million (173 kg) of gold
and $1.9 million (55.2 kg) of platinum jewelry to meet increasing
customer demands.
-
Expanded inventory level to 234 Gold Equivalent Kilograms as of
December 31, 2018, an increase of 127% from Q3.
-
Completed separation from Goldmoney Inc. (TSX:XAU) and commenced
trading on the TSX Venture Exchange (TSX-V) under the symbol “MENE” on
November 6, 2018.
-
Unveiled myMENĒ, an intelligent and interactive jewelry customization
technology and user experience.
-
Announced partnership with Affirm offering new credit alternative to
U.S. customers, thereby further expanding potential sales with a
different customer base.
-
Launched “Menē x”, a new product category of limited-edition jewelry
collections designed in collaboration with select creators, artists
and tastemakers. Unveiled first collaboration with world-renowned
fashion photographers Inez van Lamsweerde and Vinoodh Matadin (“Inez &
Vinoodh”).
-
Raised approximately $10 million in an Equity Funding Round in Q4
2018, and $20 million in a Unique Gold-Note Funding Round in Q1 2019
underwritten by Canaccord Genuity.
-
Registered nearly 7,000 independent customer reviews on
mene.com/reviews
|
|
|
|
|
IFRS Consolidated Income Statement Data & Key
Performance Indicators 5
|
|
FY 2018
|
|
July 11, 2017 to December 31, 2017 6
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Revenue (CAD)
|
|
3,510,374
|
|
|
1,985,711
|
|
|
1,392,867
|
|
|
1,038,947
|
|
|
63,909
|
|
Gross profit (CAD)
|
|
983,840
|
|
|
208,408
|
|
|
229,461
|
|
|
170,486
|
|
|
12,143
|
|
Gross margin (%)
|
|
28
|
%
|
|
10
|
%
|
|
16
|
%
|
|
16
|
%
|
|
19
|
%
|
Total comprehensive loss (CAD)
|
|
(2,681,362
|
)
|
|
(1,691,124
|
)
|
|
(919,106
|
)
|
|
(1,348,026
|
)
|
|
(1,702,048
|
)
|
Non-IFRS Adjusted Revenue (CAD) 1
|
|
3,948,113
|
|
|
2,346,622
|
|
|
1,891,608
|
|
|
1,162,777
|
|
|
67,114
|
|
Non-IFRS Adjusted Gross Profit (CAD) 2
|
|
1,106,524
|
|
|
246,287
|
|
|
311,623
|
|
|
190,806
|
|
|
12,752
|
|
Non-IFRS Adjusted Loss 3
|
|
(469,487
|
)
|
|
(1,136,242
|
)
|
|
(758,895
|
)
|
|
(1,251,091
|
)
|
|
(1,639,950
|
)
|
Total Shareholders' Equity (CAD)
|
|
18,516,087
|
|
|
10,077,520
|
|
|
11,251,166
|
|
|
11,878,195
|
|
|
13,192,937
|
|
Inventory balance (kg of gold) 4
|
|
244
|
|
|
135
|
|
|
131
|
|
|
90
|
|
|
54
|
|
Customer orders
|
|
6,729
|
|
|
3,994
|
|
|
2,389
|
|
|
951
|
|
|
74
|
|
Units of jewelry sold
|
|
9,111
|
|
|
6,168
|
|
|
2,920
|
|
|
941
|
|
|
80
|
|
Jewelry weight sold (total kg)
|
|
51
|
|
|
35
|
|
|
23
|
|
|
16
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
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Notes:
(1)
|
|
The Company adjusts its revenue by adding back the value of jewelry
that the Company bought back from customers, or was returned by
customers, and discounts given to customers. These adjustments are
made to assess the gross revenue before deducting these items from
revenue per IFRS. See Non-IFRS Measures for a full definition.
|
(2)
|
|
The Company adjusts its gross profit by adjusting for Non-IFRS
revenue and the attributable weighted average cost of sales for the
value of jewelry that the Company bought back from customers, or was
returned by customers, and discounts given to customers. See
Non-IFRS Measures for a full definition.
|
(3)
|
|
The Company adjusts its total comprehensive loss by adjusting for
Non-IFRS Adjusted Gross Profit, and removing the impact of non-cash
expenses, consisting of depreciation and amortization, stock based
compensation, and a one-time listing expense, the fair value of
5,984,750 shares issued for the amalgamation with Amador Gold
Corp.’s subsidiary in Q4 2018. See Non-IFRS Measures for a full
definition.
|
(4)
|
|
Inventory balances in kilograms of gold are calculated by taking the
total Canadian Dollar (CAD) inventory value at each quarter-end
date, and dividing the value by the CAD gold spot price per gram.
|
(5)
|
|
The period July 11, 2017 to December 31, 2017 and the fiscal year
ended December 31, 2018 are audited figures. The period Q1 to Q3
2018 have been reviewed by the same independent audit firm, KPMG.
|
(6)
|
|
The Company began generating sales to an invite-only group in
October 2017. The Company began selling to the general public in
January 2018.
|
|
|
|
Statement from Founder & CEO Roy Sebag:
“I am pleased to report the IFRS and Non-IFRS results for our first year
of operation. Menē launched in January of 2018 after nearly two years of
investment and infrastructure build-out. We have sold nearly $10 million
(non-IFRS) of jewelry in our first year entirely online without any
physical stores. The momentum we saw in Q4 2018 has continued into Q1
2019 and we are looking forward to sharing those results with our
investors in the coming months. At this stage, it has become clear that
Menē is rapidly turning into a force within the jewelry industry with a
business model that has significant potential for much greater scale and
global growth. Following the completion of our secured gold note
funding, which closed following the reporting period, the company has a
golden balance sheet and is very well capitalized to fund our ambitious
growth plans in 2019 and beyond. I am extremely proud of the work the
entire Menē team has done in 2018 and would like to thank our employees,
colleagues, partners, and most of all, our customers.”
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 Revenue1 is a non-IFRS measure. The Company
adjusts its revenue by adding to IFRS revenue the value of jewelry that
the Company bought back from customers, or was returned by customers,
and discounts given to customers. These adjustments are made to assess
the gross revenue before deducting these items per IFRS revenue.
Non-IFRS Adjusted Gross Profit2 is a non-IFRS measure. The
Company adjusts its gross profit by adjusting for the additional revenue
per Non-IFRS Adjusted Revenue, and the weighted average cost of sales
attributed to that revenue. The adjustments for Non-IFRS Revenue
comprise of the value of jewelry that the Company bought back from
customers, or was returned by customers, and discounts given to
customers.
Non-IFRS Adjusted Loss3 is a non-IFRS measure. The Company
adjusts its total comprehensive loss by adjusting for Non-IFRS Adjusted
Gross Profit, and removing the impact of non-cash expenses, consisting
of depreciation and amortization, stock based compensation, and a
one-time listing expense, the fair value of 5,984,750 shares issued for
the amalgamation with Amador Gold Corp.’s subsidiary in Q4 2018.
For a full definition of non-IFRS financial measures used herein to
their nearest IFRS equivalents, please see the section entitled
"Non-IFRS Financial Measures" in the Company's MD&A for the year ended
December 31, 2018.
About Menē Inc.
Menē crafts pure 24 karat gold and platinum jewelry that is
transparently sold by gram weight. Through mene.com, customers may buy
jewelry, monitor the value of their collection over time, and sell or
exchange their pieces by gram weight at prevailing market prices. Menē
was founded by Roy Sebag and Diana Widmaier-Picasso with a mission to
restore the relationship between jewelry and savings. Menē empowers
consumers by marrying innovative technology, timeless design, and pure
precious metals to create pieces which endure as a store of value.
For more information about Menē, visit mene.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 Menē Inc.
(the "Company") 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.
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