A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a
leading fully integrated precious metals platform, reported results
for the fiscal first quarter ended September 30, 2021.
Fiscal First Quarter 2022 Financial
Highlights
- Revenues for the
three months ended September 30, 2021 increased 8% to $2.01 billion
from $1.87 billion for the three months ended September 30, 2020
and decreased 8% from $2.18 billion for the three months ended June
30, 2021
- Gross profit for
the three months ended September 30, 2021 increased 55% to $56.0
million from $36.1 million for the three months ended September 30,
2020 and decreased 36% from $87.1 million for the three months
ended June 30, 2021
- Gross profit
margin for the three months ended September 30, 2021 increased to
2.78% of revenue, from 1.94% of revenue for the three months ended
September 30, 2020, and declined from 4.00% of revenue in the three
months ended June 30, 2021
- Net income
attributable to the Company for the three months ended September
30, 2021 totaled $26.0 million or $2.17 per diluted share, as
compared to net income of $23.1 million or $3.09 per diluted share
for the three months ended September 30, 2020, and net income of
$51.0 million or $4.28 per diluted share for the three months ended
June 30, 2021
- Adjusted net
income before provision for income taxes, depreciation,
amortization and acquisition costs, a non-GAAP financial measure,
for the three months ended September 30, 2021 totaled $41.1
million, an increase of $10.4 million compared to $30.7 million for
the three months ended September 30, 2020, and a decrease of $31.2
million compared to $72.3 million for the three months ended June
30, 2021
- Gold ounces sold
in the three months ended September 30, 2021 decreased 7% to
669,000 ounces from 721,000 ounces for the three months ended
September 30, 2020, and decreased 13% from 772,000 ounces for the
three months ended June 30, 2021
- Silver ounces
sold in the three months ended September 30, 2021 increased 16% to
28.1 million ounces from 24.2 million ounces for the three months
ended September 30, 2020, and decreased 21% from 35.7 million
ounces for the three months ended June 30, 2021
- As of September 30, 2021, the
number of secured loans increased 84% to 2,074 from 1,125 as of
September 30, 2020, and increased 10% from 1,881 as of June 30,
2021
Fiscal First Quarter 2022 Financial
ResultsRevenues increased 8% to $2.01 billion from $1.87
billion in the same year-ago quarter due to an increase in silver
ounces sold at higher selling prices, partially offset by lower
gold ounces sold at lower selling prices. JM Bullion (“JMB”)
contributed $472.3 million of revenue to the quarter.
Gross profit increased 55% to $56.0 million
(2.78% of revenue) from $36.1 million (1.94% of revenue) in the
same year-ago quarter. The gross profit increase was due to higher
gross profits earned from the Direct-to-Consumer (DTC) segment
including $24.7 million contributed by JMB.
Selling, general and administrative expenses
increased 76% to $16.7 million from $9.5 million in the same
year-ago quarter. The increase was primarily due to $6.0 million of
expenses incurred by JMB, $0.7 million of consulting and
professional fees, higher insurance costs of $0.4 million and
increased compensation expense (including performance-based
accruals) of $0.2 million.
Depreciation and amortization expense increased
1,551% to $8.3 million from $0.5 million in the same year-ago
quarter. The increase was primarily due to $7.7 million of
amortization of acquired intangibles related to JMB.
Interest income increased 39% to $5.5 million
from $4.0 million in the same year-ago quarter. The aggregate
increase was primarily due to higher interest income earned by the
Secured Lending Segment, and higher other finance product
income.
Interest expense increased 28% to $5.5 million
from $4.3 million in the same year-ago quarter. The increase in
interest expense was primarily driven by $0.7 million related to
product financing arrangements, $0.4 million associated with the
Company’s Trading Credit Facility and Notes Payable, $0.2 million
of loan servicing fees, offset by a $0.2 million decrease in
interest and fees associated with liabilities on borrowed
metals.
Earnings from equity method investments
decreased 64% to $1.5 million from $4.1 million in the same
year-ago quarter. The aggregate decrease was primarily due to the
acquisition of JMB, which occurred in March 2021 and has
subsequently been reported by the Company as a wholly owned
subsidiary. The related $3.7 million decrease was partially offset
by increased earnings of $1.0 million from the Company’s other
equity method investments.
Net income attributable to the Company totaled
$26.0 million or $2.17 per diluted share, compared to net income of
$23.1 million or $3.09 per diluted share in the same year-ago
quarter. Diluted weighted average shares outstanding for the three
months ended September 30, 2021 were 12.0 million compared to 7.5
million in the same year ago quarter.
Adjusted net income before provision for income
taxes, depreciation, amortization and acquisition costs, a non-GAAP
financial measure, totaled $41.1 million, compared to $30.7 million
in the same year-ago quarter. The increase is
principally due to higher net income before provision for income
taxes of $2.6 million and higher amortization of acquired
intangibles of $7.7 million.
Management
Commentary “Our first quarter results
illustrate the continued advantages of our integrated and
diversified business model,” said A-Mark CEO Greg Roberts. “Revenue
grew 8% year-over-year, driving a 55% increase in gross margin and
a 7% return on equity, led by the continued positive contribution
of our higher-margin DTC segment, driven by JMB. While the start to
the quarter was somewhat subdued compared to the prior quarter,
business trends improved during the second half of the
quarter.
“Our vertically integrated businesses, coupled
with our strategic DTC expansion, highlighted by JMB, continue to
deliver strong results. JMB’s integration continues to go well, and
we are encouraged by the business performance of our recently
expanded strategic investments, where we are working to accelerate
growth and synergies.
“We continue to see positive macro tailwinds
persisting, including precious metals supply constraints and
elevated demand for precious metals products in both the retail and
wholesale segments. We remain optimistic that our platform and
proven business model will assist us to generate profit in stable
periods and opportunities for outsized returns in periods of
volatility driving strong returns for A-Mark over the long
term.”
Conference CallA-Mark will hold
a conference call today (November 4, 2021) to discuss these
financial results. The Company's CEO Greg Roberts, President Thor
Gjerdrum and CFO Kathleen Simpson-Taylor will host the call at 4:30
p.m. Eastern time (1:30 p.m. Pacific time). A question-and-answer
session will follow management's presentation.
To participate, please dial the appropriate
number at least five minutes prior to the start time and ask for
the A-Mark Precious Metals conference call.
U.S. dial-in number: 1-855-327-6837International
number: 1-631-891-4304Conference ID: 10016895
The conference call will be broadcast
simultaneously and available for replay via the Investor Relations
section of A-Mark’s website at www.amark.com. If you have any
difficulty connecting with the conference call or webcast, please
contact A-Mark’s investor relations team at 1-949-574-3860.
A replay of the call will be available after
7:30 p.m. Eastern time through November 18, 2021.
Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Conference
ID: 10016895
About A-Mark Precious
MetalsFounded in 1965, A-Mark Precious Metals, Inc.
(NASDAQ: AMRK) is a leading fully integrated precious metals
platform that offers an array of gold, silver, platinum, palladium,
and copper bullion, numismatic coins and related products to
wholesale and retail customers via a portfolio of channels. The
company conducts its operations through three complementary
segments: Wholesale Sales & Ancillary Services, Secured
Lending, and Direct-to-Consumer. The company’s global customer base
spans sovereign and private mints, manufacturers and fabricators,
refiners, dealers, financial institutions, industrial users,
investors, collectors, and e-commerce and other retail
customers.
A-Mark’s Wholesale Sales & Ancillary
Services segment distributes and purchases precious metal products
from sovereign and private mints. As a U.S. Mint-authorized
purchaser of gold, silver, and platinum coins since 1986, A-Mark
purchases bullion products directly from the U.S. Mint for sale to
customers. A-Mark also has longstanding distributorships with other
sovereign mints, including Australia, Austria, Canada, China,
Mexico, South Africa and the United Kingdom. The company sells more
than 200 different products to e-commerce retailers, coin and
bullion dealers, financial institutions, brokerages and collectors.
In addition, A-Mark sells precious metal products to industrial
users, including metal refiners, manufacturers and electronic
fabricators.
Through its A-M Global Logistics subsidiary,
A-Mark provides its customers with a range of complementary
services, including managed storage options for precious metals as
well as receiving, handling, inventorying, processing, packaging,
and shipping of precious metals and coins on a secure basis.
A-Mark’s mint operations, which are conducted through its wholly
owned subsidiary Silver Towne Mint, enable the company to offer
customers a wide range of proprietary coin and bar offerings and,
during periods of market volatility when the availability of silver
bullion from sovereign mints is often product constrained,
preferred product access.
A-Mark’s Direct-to-Consumer segment operates as
an omni-channel retailer of precious metals, providing access to a
multitude of products through its wholly owned subsidiaries, JM
Bullion and Goldline. JM Bullion is a leading e-commerce retailer
of precious metals and operates five separately branded,
company-owned websites targeting specific niches within the
precious metals market: JMBullion.com, ProvidentMetals.com,
Silver.com, GoldPrice.org, SilverPrice.org. Goldline markets
precious metals directly to the investor community through various
channels, including television, radio and telephonic sales efforts.
A-Mark also holds minority ownership interests in two additional
direct-to-consumer brands.
The company operates its Secured Lending segment
through its wholly owned subsidiaries, Collateral Finance
Corporation (CFC) and AM Capital Funding. Founded in
2005, CFC is a California licensed finance lender that
originates and acquires loans secured by bullion and numismatic
coins. Its customers include coin and precious metal dealers,
investors and collectors. AM Capital Funding was formed in 2018 for
the purpose of securitizing eligible secured loans of CFC.
A-Mark is headquartered in El Segundo, CA and has additional
offices and facilities in the neighboring Los Angeles area as well
as in Dallas, TX, Las Vegas, NV, Winchester, IN, and Vienna,
Austria. For more information, visit www.amark.com.
Important Cautions Regarding
Forward-Looking StatementsStatements in this press release
that relate to future plans, objectives, expectations, performance,
events and the like are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and
the Securities Exchange Act of 1934. These include statements
regarding future macroeconomic conditions and demand for precious
metal products, and the Company’s ability to effectively respond to
changing economic conditions. Future events, risks and
uncertainties, individually or in the aggregate, could cause actual
results or circumstances to differ materially from those expressed
or implied in these statements. Factors that could cause actual
results to differ include the following: the failure to execute the
Company’s growth strategy as planned; greater than anticipated
costs incurred to execute this strategy; changes in the current
international political climate which has favorably contributed to
demand and volatility in the precious metals markets; increased
competition for the Company’s higher margin services, which could
depress pricing; the failure of the Company’s business model to
respond to changes in the market environment as anticipated;
general risks of doing business in the commodity markets; the
effects of the COVID-19 pandemic and the eventual return to
normalized business and economic conditions; and the
strategic, business, economic, financial, political and
governmental risks described in in the company’s public filings
with the Securities and Exchange Commission.
The words "should," "believe," "estimate,"
"expect," "intend," "anticipate," "foresee," "plan" and similar
expressions and variations thereof identify certain of such
forward-looking statements, which speak only as of the dates on
which they were made. Additionally, any statements related to
future improved performance and estimates of revenues and earnings
per share are forward-looking statements. The company undertakes no
obligation to publicly update or revise any forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements.
Use and Reconciliation of Non-GAAP
Financial MeasuresIn addition to presenting the Company’s
financial results determined in accordance with GAAP, management
believes the following non-GAAP financial measure is useful in
evaluating the Company’s operating performance. The Company
presents “adjusted net income before provision for income taxes”
because management believes it assists investors and analysts by
facilitating comparison of period-to-period operational performance
on a consistent basis by excluding items that management does not
believe are indicative of the Company’s core operating performance.
The items excluded from this financial measure may have a material
impact on the Company’s financial results. Certain of those items
are non-recurring, while others are non-cash in nature.
Accordingly, this non-GAAP financial measure should be considered
in addition to, and not as a substitute for or superior to, the
comparable measures prepared in accordance with GAAP, and should be
read in conjunction with the financial statements included in the
Company’s Quarterly Report on Form 10-Q to be filed with the
SEC.
In the Company’s reconciliation from its
reported GAAP “net income before provision for taxes” to its
non-GAAP “adjusted net income before provision for taxes,” the
Company eliminates the impact of the following three amounts: (i)
acquisition expenses; (ii) amortization expenses related to
intangible assets acquired; and (iii) depreciation expense.
Management encourages investors and others to
review the Company’s financial information in its entirety and not
to rely on any single financial measure.
Company Contact:Steve Reiner, Executive Vice
President, Capital Markets & Investor RelationsA-Mark Precious
Metals, Inc.1-310-587-1410sreiner@amark.com
Investor Relations Contact:Matt Glover or Jeff
Grampp, CFAGateway Investor
Relations1-949-574-3860AMRK@gatewayIR.com
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(amounts in thousands, except for share
data) (unaudited)
|
September 30,2021 |
|
|
|
June 30,2021 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
$ |
29,609 |
|
|
|
$ |
101,405 |
|
Receivables, net |
|
104,522 |
|
|
|
|
89,000 |
|
Derivative assets |
|
69,785 |
|
|
|
|
44,536 |
|
Secured loans receivable |
|
110,323 |
|
|
|
|
112,968 |
|
Precious metals held under financing arrangements |
|
130,618 |
|
|
|
|
154,742 |
|
Inventories: |
|
|
|
|
|
|
|
|
Inventories |
|
346,285 |
|
|
|
|
256,991 |
|
Restricted inventories |
|
219,420 |
|
|
|
|
201,028 |
|
|
|
565,705 |
|
|
|
|
458,019 |
|
Prepaid expenses and other assets |
|
4,074 |
|
|
|
|
3,557 |
|
Total current
assets |
|
1,014,636 |
|
|
|
|
964,227 |
|
Operating lease right of use assets |
|
7,346 |
|
|
|
|
5,702 |
|
Property, plant, and equipment, net |
|
8,913 |
|
|
|
|
8,609 |
|
Goodwill |
|
100,943 |
|
|
|
|
100,943 |
|
Intangibles, net |
|
85,761 |
|
|
|
|
93,633 |
|
Long-term investments |
|
29,683 |
|
|
|
|
18,467 |
|
Total
assets |
$ |
1,247,282 |
|
|
|
$ |
1,191,581 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Lines of credit |
$ |
194,000 |
|
|
|
$ |
185,000 |
|
Liabilities on borrowed metals |
|
74,618 |
|
|
|
|
91,866 |
|
Product financing arrangements |
|
219,420 |
|
|
|
|
201,028 |
|
Accounts payable and other current liabilities |
|
178,798 |
|
|
|
|
200,351 |
|
Derivative liabilities |
|
70,348 |
|
|
|
|
7,539 |
|
Accrued liabilities |
|
12,836 |
|
|
|
|
18,785 |
|
Income tax payable |
|
7,140 |
|
|
|
|
5,016 |
|
Total current
liabilities |
|
757,160 |
|
|
|
|
709,585 |
|
Notes payable |
|
93,446 |
|
|
|
|
93,249 |
|
Deferred tax liabilities |
|
18,091 |
|
|
|
|
19,514 |
|
Other liabilities |
|
6,958 |
|
|
|
|
5,291 |
|
Total
liabilities |
|
875,655 |
|
|
|
|
827,639 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 10,000,000 shares;
issued and outstanding: none as of September 30, 2021 and
June 30, 2021 |
|
— |
|
|
|
|
— |
|
Common stock, par value $0.01; 40,000,000 shares authorized;
11,351,897 and 11,229,657 shares issued and outstanding as of
September 30, 2021 and June 30, 2021, respectively |
|
114 |
|
|
|
|
113 |
|
Additional paid-in capital |
|
154,619 |
|
|
|
|
150,420 |
|
Retained earnings |
|
215,475 |
|
|
|
|
212,090 |
|
Total A-Mark Precious
Metals, Inc. stockholders’ equity |
|
370,208 |
|
|
|
|
362,623 |
|
Noncontrolling interests |
|
1,419 |
|
|
|
|
1,319 |
|
Total stockholders’
equity |
|
371,627 |
|
|
|
|
363,942 |
|
Total liabilities,
noncontrolling interests and stockholders’ equity |
$ |
1,247,282 |
|
|
|
$ |
1,191,581 |
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME(in thousands, except for share and per
share data) (unaudited)
|
Three Months Ended |
|
|
September 30,2021 |
|
|
|
September 30,2020 |
|
Revenues |
$ |
2,013,971 |
|
|
|
$ |
1,866,116 |
|
Cost of sales |
|
1,957,962 |
|
|
|
|
1,829,971 |
|
Gross profit |
|
56,009 |
|
|
|
|
36,145 |
|
Selling, general, and
administrative expenses |
|
(16,677 |
) |
|
|
|
(9,505 |
) |
Depreciation and amortization
expense |
|
(8,271 |
) |
|
|
|
(501 |
) |
Interest income |
|
5,531 |
|
|
|
|
3,983 |
|
Interest expense |
|
(5,473 |
) |
|
|
|
(4,293 |
) |
Earnings from equity method
investments |
|
1,489 |
|
|
|
|
4,126 |
|
Other income, net |
|
409 |
|
|
|
|
359 |
|
Unrealized losses on foreign
exchange |
|
(224 |
) |
|
|
|
(97 |
) |
Net income before provision for
income taxes |
|
32,793 |
|
|
|
|
30,217 |
|
Income tax expense |
|
(6,669 |
) |
|
|
|
(6,511 |
) |
Net income |
|
26,124 |
|
|
|
|
23,706 |
|
Net income attributable to noncontrolling interests |
|
100 |
|
|
|
|
623 |
|
Net income attributable to the
Company |
$ |
26,024 |
|
|
|
$ |
23,083 |
|
Basic and diluted net
income per share attributable to A-Mark Precious
Metals, Inc.: |
|
|
|
|
|
|
|
|
Basic |
$ |
2.31 |
|
|
|
$ |
3.28 |
|
Diluted |
$ |
2.17 |
|
|
|
$ |
3.09 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
11,262,600 |
|
|
|
|
7,034,700 |
|
Diluted |
|
12,009,300 |
|
|
|
|
7,475,000 |
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(amounts in thousands)
(unaudited)
Three Months Ended September 30, |
|
2021 |
|
|
2020 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
26,124 |
|
|
$ |
23,706 |
|
Adjustments to reconcile net income to net cash (used in) provided
by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
8,271 |
|
|
|
501 |
|
Amortization of loan cost |
|
|
569 |
|
|
|
396 |
|
Deferred income taxes |
|
|
(1,423 |
) |
|
|
— |
|
Interest added to principal of secured loans |
|
|
(5 |
) |
|
|
(4 |
) |
Share-based compensation |
|
|
473 |
|
|
|
178 |
|
Earnings from equity method investments |
|
|
(1,489 |
) |
|
|
(4,126 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
|
(15,522 |
) |
|
|
(26,526 |
) |
Secured loans receivable |
|
|
25 |
|
|
|
(358 |
) |
Secured loans made to affiliates |
|
|
3,032 |
|
|
|
4,642 |
|
Derivative assets |
|
|
(25,249 |
) |
|
|
(67,275 |
) |
Precious metals held under financing
arrangements |
|
|
24,124 |
|
|
|
19,821 |
|
Inventories |
|
|
(107,686 |
) |
|
|
(91,900 |
) |
Prepaid expenses and other assets |
|
|
(689 |
) |
|
|
(292 |
) |
Accounts payable and other current
liabilities |
|
|
(21,553 |
) |
|
|
69,992 |
|
Derivative liabilities |
|
|
62,809 |
|
|
|
(11,917 |
) |
Liabilities on borrowed metals |
|
|
(17,248 |
) |
|
|
(14,454 |
) |
Accrued liabilities |
|
|
(6,420 |
) |
|
|
(1,227 |
) |
Income tax payable |
|
|
2,124 |
|
|
|
771 |
|
Net cash used in
operating activities |
|
|
(69,733 |
) |
|
|
(98,072 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Capital expenditures for property, plant, and equipment |
|
|
(709 |
) |
|
|
(476 |
) |
Purchase of long-term investments |
|
|
(6,250 |
) |
|
|
— |
|
Secured loans receivable, net |
|
|
(407 |
) |
|
|
(24,793 |
) |
Net cash used in
investing activities |
|
|
(7,366 |
) |
|
|
(25,269 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Product financing arrangements, net |
|
|
18,392 |
|
|
|
26,921 |
|
Dividends paid |
|
|
(22,639 |
) |
|
|
(10,553 |
) |
Borrowings and repayments under lines of credit, net |
|
|
9,000 |
|
|
|
79,000 |
|
Debt funding issuance costs |
|
|
(199 |
) |
|
|
(398 |
) |
Net settlement on issuance of common shares on exercise of
options |
|
|
749 |
|
|
|
416 |
|
Net cash provided by
financing activities |
|
|
5,303 |
|
|
|
95,386 |
|
Net decrease in cash,
cash equivalents, and restricted cash |
|
|
(71,796 |
) |
|
|
(27,955 |
) |
Cash, cash equivalents,
and restricted cash, beginning of period |
|
|
101,405 |
|
|
|
52,325 |
|
Cash, cash equivalents,
and restricted cash, end of period |
|
$ |
29,609 |
|
|
$ |
24,370 |
|
Overview of Results of Operations for the Three Months
Ended September 30, 2021 and 2020Condensed
Consolidated Results of Operations
The operating results for the three months ended
September 30, 2021 and 2020 are as follows:
in thousands, except
per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
|
% ofrevenue |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Revenues |
|
$ |
2,013,971 |
|
|
|
100.000 |
% |
|
$ |
1,866,116 |
|
|
|
100.000 |
% |
|
$ |
147,855 |
|
|
|
7.9 |
% |
Gross profit |
|
|
56,009 |
|
|
|
2.781 |
% |
|
|
36,145 |
|
|
|
1.937 |
% |
|
$ |
19,864 |
|
|
|
55.0 |
% |
Selling, general, and
administrative expenses |
|
|
(16,677 |
) |
|
|
(0.828 |
)% |
|
|
(9,505 |
) |
|
|
(0.509 |
)% |
|
$ |
7,172 |
|
|
|
75.5 |
% |
Depreciation and amortization
expense |
|
|
(8,271 |
) |
|
|
(0.411 |
)% |
|
|
(501 |
) |
|
|
(0.027 |
)% |
|
$ |
7,770 |
|
|
|
1,550.9 |
% |
Interest income |
|
|
5,531 |
|
|
|
0.275 |
% |
|
|
3,983 |
|
|
|
0.213 |
% |
|
$ |
1,548 |
|
|
|
38.9 |
% |
Interest expense |
|
|
(5,473 |
) |
|
|
(0.272 |
)% |
|
|
(4,293 |
) |
|
|
(0.230 |
)% |
|
$ |
1,180 |
|
|
|
27.5 |
% |
Earnings from equity method
investments |
|
|
1,489 |
|
|
|
0.074 |
% |
|
|
4,126 |
|
|
|
0.221 |
% |
|
$ |
(2,637 |
) |
|
|
(63.9 |
%) |
Other income, net |
|
|
409 |
|
|
|
0.020 |
% |
|
|
359 |
|
|
|
0.019 |
% |
|
$ |
50 |
|
|
|
13.9 |
% |
Unrealized losses on foreign
exchange |
|
|
(224 |
) |
|
|
(0.011 |
)% |
|
|
(97 |
) |
|
|
(0.005 |
)% |
|
$ |
127 |
|
|
|
130.9 |
% |
Net income before provision for
income taxes |
|
|
32,793 |
|
|
|
1.628 |
% |
|
|
30,217 |
|
|
|
1.619 |
% |
|
$ |
2,576 |
|
|
|
8.5 |
% |
Income tax expense |
|
|
(6,669 |
) |
|
|
(0.331 |
)% |
|
|
(6,511 |
) |
|
|
(0.349 |
)% |
|
$ |
158 |
|
|
|
2.4 |
% |
Net income |
|
|
26,124 |
|
|
|
1.297 |
% |
|
|
23,706 |
|
|
|
1.270 |
% |
|
$ |
2,418 |
|
|
|
10.2 |
% |
Net income attributable to noncontrolling interests |
|
|
100 |
|
|
|
0.005 |
% |
|
|
623 |
|
|
|
0.033 |
% |
|
$ |
(523 |
) |
|
|
(83.9 |
%) |
Net income attributable to the
Company |
|
$ |
26,024 |
|
|
|
1.292 |
% |
|
$ |
23,083 |
|
|
|
1.237 |
% |
|
$ |
2,941 |
|
|
|
12.7 |
% |
Basic and diluted net
income per share attributable to A-Mark
Precious Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.31 |
|
|
|
|
|
|
$ |
3.28 |
|
|
|
|
|
|
$ |
(0.97 |
) |
|
|
(29.6 |
%) |
Diluted |
|
$ |
2.17 |
|
|
|
|
|
|
$ |
3.09 |
|
|
|
|
|
|
$ |
(0.92 |
) |
|
|
(29.8 |
%) |
Overview of Results of Operations for the Three Months
Ended September 30, 2021 and June 30,
2021Condensed Consolidated Results of
Operations
The operating results for the three months ended
September 30, 2021 and June 30, 2021 are as follows:
in thousands, except
per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
September 30, 2021 |
|
|
June 30, 2021 |
|
|
$ |
|
|
% |
|
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
|
% ofrevenue |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Revenues |
|
$ |
2,013,971 |
|
|
|
100.000 |
% |
|
$ |
2,178,666 |
|
|
|
100.000 |
% |
|
$ |
(164,695 |
) |
|
|
(7.6 |
%) |
Gross profit |
|
|
56,009 |
|
|
|
2.781 |
% |
|
|
87,131 |
|
|
|
3.999 |
% |
|
$ |
(31,122 |
) |
|
|
(35.7 |
%) |
Selling, general, and
administrative expenses |
|
|
(16,677 |
) |
|
|
(0.828 |
)% |
|
|
(16,693 |
) |
|
|
(0.766 |
)% |
|
$ |
(16 |
) |
|
|
(0.1 |
%) |
Depreciation and amortization
expense |
|
|
(8,271 |
) |
|
|
(0.411 |
)% |
|
|
(8,294 |
) |
|
|
(0.381 |
)% |
|
$ |
(23 |
) |
|
|
(0.3 |
%) |
Interest income |
|
|
5,531 |
|
|
|
0.275 |
% |
|
|
5,234 |
|
|
|
0.240 |
% |
|
$ |
297 |
|
|
|
5.7 |
% |
Interest expense |
|
|
(5,473 |
) |
|
|
(0.272 |
)% |
|
|
(5,200 |
) |
|
|
(0.239 |
)% |
|
$ |
273 |
|
|
|
5.3 |
% |
Earnings from equity method
investments |
|
|
1,489 |
|
|
|
0.074 |
% |
|
|
1,648 |
|
|
|
0.076 |
% |
|
$ |
(159 |
) |
|
|
(9.6 |
%) |
Other income, net |
|
|
409 |
|
|
|
0.020 |
% |
|
|
176 |
|
|
|
0.008 |
% |
|
$ |
233 |
|
|
|
132.4 |
% |
Unrealized (losses) gains on
foreign exchange |
|
|
(224 |
) |
|
|
(0.011 |
)% |
|
|
2 |
|
|
|
0.000 |
% |
|
$ |
226 |
|
|
|
11,300.0 |
% |
Net income before provision for
income taxes |
|
|
32,793 |
|
|
|
1.628 |
% |
|
|
64,004 |
|
|
|
2.938 |
% |
|
$ |
(31,211 |
) |
|
|
(48.8 |
%) |
Income tax expense |
|
|
(6,669 |
) |
|
|
(0.331 |
)% |
|
|
(12,933 |
) |
|
|
(0.594 |
)% |
|
$ |
(6,264 |
) |
|
|
(48.4 |
%) |
Net income |
|
|
26,124 |
|
|
|
1.297 |
% |
|
|
51,071 |
|
|
|
2.344 |
% |
|
$ |
(24,947 |
) |
|
|
(48.8 |
%) |
Net income attributable to non-controlling interests |
|
|
100 |
|
|
|
0.005 |
% |
|
|
66 |
|
|
|
0.003 |
% |
|
$ |
34 |
|
|
|
51.5 |
% |
Net income attributable to the
Company |
|
$ |
26,024 |
|
|
|
1.292 |
% |
|
$ |
51,005 |
|
|
|
2.341 |
% |
|
$ |
(24,981 |
) |
|
|
(49.0 |
%) |
Basic and diluted net
income per share attributable to A-Mark
Precious Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.31 |
|
|
|
|
|
|
$ |
4.57 |
|
|
|
|
|
|
$ |
(2.26 |
) |
|
|
(49.5 |
%) |
Diluted |
|
$ |
2.17 |
|
|
|
|
|
|
$ |
4.28 |
|
|
|
|
|
|
$ |
(2.11 |
) |
|
|
(49.3 |
%) |
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESReconciliation of GAAP to Non-GAAP
Financial Measures
Reconciliation of Net income before
provision for income taxes to Adjusted net income before provision
for income taxes:
in
thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
|
% ofrevenue |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Revenues |
|
$ |
2,013,971 |
|
|
|
100.000 |
% |
|
$ |
1,866,116 |
|
|
|
100.000 |
% |
|
$ |
147,855 |
|
|
|
7.9 |
% |
Net income before provision for
income taxes |
|
$ |
32,793 |
|
|
|
1.628 |
% |
|
$ |
30,217 |
|
|
|
1.619 |
% |
|
$ |
2,576 |
|
|
|
8.5 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
44 |
|
|
|
0.002 |
% |
|
|
— |
|
|
|
— |
|
|
$ |
44 |
|
|
|
(— |
%) |
Amortization of acquired intangibles |
|
|
7,872 |
|
|
|
0.391 |
% |
|
|
154 |
|
|
|
0.008 |
% |
|
$ |
7,718 |
|
|
|
5,011.7 |
% |
Depreciation expense |
|
|
399 |
|
|
|
0.020 |
% |
|
|
347 |
|
|
|
0.019 |
% |
|
$ |
52 |
|
|
|
15.0 |
% |
Adjusted net income before
provision for income taxes (Non-GAAP) |
|
$ |
41,108 |
|
|
|
2.041 |
% |
|
$ |
30,718 |
|
|
|
1.646 |
% |
|
$ |
10,390 |
|
|
|
33.8 |
% |
A Mark Precious Metals (NASDAQ:AMRK)
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