Money4Gold Announces Q4 and FY 2009 Results

FT. LAUDERDALE, Fla., March 23 /PRNewswire-FirstCall/ -- Money4Gold Holdings, Inc. (OTC Bulletin Board: MFGD), an emerging global leader in direct-from-consumer, reverse logistics specializing in the procurement and liquidation of precious metals, today announced financial results for its fourth quarter and for the full year 2009.  Revenue for the fourth quarter of 2009 was a record $19.7 million, up 287 percent from revenue of $6.9 million in the third quarter of 2009. Revenue for the full year 2009 was $29.0 million, up 1,857 percent from 2008 revenue of $1.6 million, driven by increasing penetration into the United States market and rapid expansion into several international markets including Canada and the United Kingdom.

GAAP income from operations for the fourth quarter of 2009 was $1.0 million, compared with a GAAP loss from operations of $1.0 million in the third quarter of 2009.  The fourth quarter of 2009 was the first profitable quarter in the history of the company.  GAAP loss from operations for the full year 2009 was $2.9 million, compared with a GAAP loss from operations of $3.2 million for the full year 2008.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2009 was $1.8 million, compared with an EBITDA loss of $0.8 million in the third quarter of 2009.  The EBITDA loss for the full year 2009 was $1.3 million, compared with an EBITDA loss of $2.0 million for the full year 2008.

"We are very pleased to have achieved these revenue and EBITDA results, further validating our business model in the fourth quarter.  Although the first quarter is seasonally softer and we anticipate posting a loss due to the post-holiday period, media performance, and our investment in new service offerings, we feel confident that we are on track to exceed $100 million in revenue in 2010," said Doug Feirstein, chief executive officer of MFGD.

The company also said that the initial testing of its reverse logistics platform for small consumer electronics exceeded its own internal forecasts, and it plans to roll out this new service worldwide later this year.

"By leveraging our existing precious metals platform, incremental revenue generated by our new product category will result in a significant increase of our future earnings," said Feirstein.  "We look forward to rolling out this new product category as soon as possible, and believe its early success validates our vision of being a worldwide platform for the recycling of various consumer goods," he said.

Use of Non-GAAP Financial Measure

To comply with Regulation G, Money4Gold included below in this press release a reconciliation of differences between non-GAAP financial and GAAP information.  MFGD uses EBITDA, a non-GAAP financial measure, as a measure of performance to demonstrate earnings exclusive of interest, taxes, depreciation and amortization. MFGD manages its business based on its operating cash flows. MFGD, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. MFGD, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses EBITDA as its primary management guide. Since an outside investor may base its evaluation of our performance based on our net loss and not on our cash flows, there is a limitation to the EBITDA measurement. Our management believes that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting and analyzing future periods.  EBITDA is not, and should not be considered, an alternative to net loss, loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP).

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, 2010 revenue guidance and expectations for the release of a new consumer electronics offering in 2010. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Specific factors that may cause results to differ include, but are not limited to, the following: continued effectiveness of our advertising; a lack of acceptance or slower than anticipated acceptance for MFGD's new offerings; slower than anticipated service offering development or introduction into the marketplace; increased competitive pressures; changes in the value of precious metals and/or the residual values of small consumer electronics; MFGD's dependence on a single related party customer for the sales of precious metals; poor representation of our industry by the media; unanticipated difficulties associated with international operations; MFGD's ability to manage growth and slowdowns caused by seasonality, economic, or other factors; the loss of key employees; and the Company's current working capital position. Some of these risks and uncertainties are described in more detail in MFGD's reports including, but not limited to, its filings with the Securities and Exchange Commission. MFGD assumes no obligation to update the forward-looking statements included in this press release.

About Money4Gold Holdings, Inc.

Money4Gold is a direct-from-consumer reverse logistics company currently specializing in the procurement of precious metals. The company utilizes direct-to-consumer advertising to solicit individuals interested in liquidating unwanted items. Through its global platform the company facilitates an end-to-end consumer solution, from acquisition through liquidation. With Money4Gold's consumer websites, including: www.sobredeoro.com, www.Dollars4Gold.ca, www.MyGoldEnvelope.com, www.money4golduk.com, and www.eurofuergold.de, the company strives to provide the most convenient, efficient and secure method for individuals to liquidate and recycle items containing precious metals. For more corporate information, please visit www.Money4Gold.com.

SOURCE Money4Gold Holdings, Inc.