Mene Inc. Reports Financial Results for Third Quarter 2021

TORONTO--(BUSINESS WIRE)--November 22, 2021-- 

Menē Inc. (TSX-V:MENE) (US:MENEF) ("Menē" or the "Company"), an online 24 karat jewelry brand, today announced financial results for the third quarter ended September 30, 2021 ("Q3 2021"). All amounts are expressed in Canadian dollars unless otherwise noted.

FINANCIAL HIGHLIGHTS:

   -- IFRS Quarterly Revenue of $5.3 million, a $0.1 million (2%) decrease 
      year-over-year ("YoY"). Non-IFRS Adjusted Revenue2 of $6.5 million, an 
      increase of 5% YoY. 
   -- IFRS Gross Profit of $1.2 million, a decrease of $0.3 million (21%) YoY. 
   -- Net Loss of $0.3 million, a 29% decrease YoY. 
   -- Total Comprehensive Income of $0.6 million, an increase of 174% YoY. 
   -- Sold 6,322 units of jewelry through 4,153 Customer Orders during the 
      quarter, an increase of 6% and 20% respectively, YoY. 
   -- Sold 62kg of gold and platinum jewelry during the quarter, an increase of 
      6 kg, or 10% YoY. 
   -- Inventory level of 301 gold equivalent Kilograms, an increase of 22% 
      quarter-over-quarter ("QoQ") as the Company stocks up for anticipated 
      growth in sales during the holidays. 
   -- At September 30, 2021, the Company had Tangible Common Equity 4 of $16.5 
      million, including $3.6 million in cash and cash equivalents, $1.2 
      million in short-term investments, and $21.7 million in inventory with a 
      net working capital of $16 million. Tangible Common Equity increased by 
      2% QoQ. 

OPERATIONAL HIGHLIGHTS:

   -- Introduced new Good Luck and Back to Stack collections during the 
      quarter. 
   -- Returning Customers attributed to 62% of total sales due to great 
      customer satisfaction. 
   -- Cumulative units of jewelry sold reached 94,489 as of quarter end and 
      more than three quarter tonne of precious metal weight. 
   -- Registered more than 25,100 independent customer reviews on 
      mene.com/reviews. 
 IFRS 
 Consolidated 
 Income 
 Statement Data 
 & Key 
 Performance 
 Indicators 
 (KPIs) (1)                   FY 2021                                    FY 2020                         FY 2019 
 --------------  ----------------------------------  ------------------------------------------------  ----------- 
                     Q3          Q2          Q1          Q4          Q3          Q2           Q1           Q4 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Revenue         5,317,842   5,754,156   7,203,492   7,110,188   5,423,320    3,439,038    5,156,994    4,653,601 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Gross profit    1,245,908   1,529,690   1,737,688   1,691,750   1,578,417     917,721     1,012,923     458,201 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Gross profit 
  (%)               23%         27%         24%         24%         29%          27%          20%          10% 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Net income 
  (loss)         (271,872)   (188,355)    672,273     (76,727)   (383,602)   (1,029,300)  (1,855,303)  (3,449,094) 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Total 
  comprehensive 
  income 
  (loss)          551,723    (769,975)    858,378    (697,478)   (748,216)   (1,448,394)   (808,093)   (3,991,270) 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Non-IFRS 
  Adjusted 
  Revenue(2)     6,466,242   6,678,006   8,324,174   8,104,915   6,140,871    3,678,069    5,611,286    5,095,968 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Non-IFRS 
  Adjusted 
  Income (Loss) 
  (3)             106,889    (528,761)    789,748      23,936      61,777     (367,214)    (666,378)    (910,904) 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Total 
  Shareholders' 
  Equity         17,835,586  17,101,667  17,821,539  11,503,042  12,196,393  12,720,633   14,321,528   15,127,316 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Inventory 
  balance (kg 
  of gold) (4)      301         246         258         219         177          131          132          212 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Customer 
  orders           4,153       4,377       5,067       5,474       3,464        2,790        4,157        4,548 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Units of 
  jewelry sold     6,322       7,197       7,850       8,632       5,958        4,915        6,641        7,225 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
 Jewelry weight 
  sold (total 
  kg)                62          66          79          76          56          39           69           65 
 --------------  ----------  ----------  ----------  ----------  ----------  -----------  -----------  ----------- 
   1. The Company's financial statements for fiscal year-ending 2020 and 2019 
      are audited by an external assurance firm. 
   2. The Company adjusts its revenue by adding back the value of jewelry that 
      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 
      reconciliation. 
   3. The Company adjusts its total comprehensive income (loss) by removing the 
      impact of non-cash expenses, consisting of depreciation and amortization, 
      stock-based compensation, accretion, revaluation of metal loan and 
      translation gain or loss. See Non-IFRS Measures for a full 
      reconciliation. 
   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. 

STATEMENT FROM FOUNDER & CEO ROY SEBAG:

In Q3 2021 Menē Inc. continued to deliver solid results for shareholders. Units sold, weight sold, and customer orders were up 6%, 10%, and 20% YoY respectively. Non-IFRS revenue was up 5% YoY. Shareholder equity was up over 4% since June 30, 2021, and the company produced its second IFRS quarterly profit this calendar year. In the past four quarters, Menē Inc. has delivered $29.6 million of Non-IFRS revenue. This milestone essentially satisfies our goals for all of 2021 nearly one quarter ahead of time. It is true that to some people it may appear that the IFRS revenue this quarter came in soft. I too agree that the quarter could have been stronger but remain confident in the long-term trajectory of the business when focusing on the Non-IFRS revenue as well as unit, weight, and customer order metrics. I would also like to reiterate that sustainability and profitability are equally important metrics that management focuses on even while aspiring to double digit year over year growth. At the time of writing this press release we are now trading in what is our busiest time of year. Inventory levels are strong meaning that Menē is ready to meet the holiday demand. We thank our customers and shareholders for their continued support and look forward to updating shareholders on our year-end results once they have been finalized.

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 Revenue(2) is a non-IFRS measure. The Company adjusts its revenue by adding back the value of jewelry that 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. The closest comparable IFRS measure is revenue.

Non-IFRS Adjusted Gross Profit(3) is a non-IFRS measure. The Company adjusts its gross profit by adjusting for the additional revenue and associated cost of sales added back for the value of jewelry that was returned by customers, and discounts given to customers. The closest comparable IFRS measure is gross profit.