A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a
leading fully integrated precious metals platform, reported results
for the fiscal first quarter ended September 30, 2022.
Fiscal First Quarter 2023 Operational
Highlights
- Gold ounces sold
in the three months ended September 30, 2022 decreased 6% to
629,000 ounces from 669,000 ounces for the three months ended
September 30, 2021, and decreased 2% from 641,000 ounces for the
three months ended June 30, 2022
- Silver ounces
sold in the three months ended September 30, 2022 increased 28% to
35.9 million ounces from 28.1 million ounces for the three months
ended September 30, 2021, and decreased 4% from 37.6 million ounces
for the three months ended June 30, 2022
- As of September
30, 2022, the number of secured loans decreased 48% to 1,082 from
2,074 as of September 30, 2021, and decreased 52% from 2,271 as of
June 30, 2022
-
Direct-to-Consumer new customers for the three months ended
September 30, 2022 decreased 7% to 49,000 from 52,900 for the three
months ended September 30, 2021, and compares to 48,800 for the
three months ended June 30, 2022
-
Direct-to-Consumer active customers for the three months ended
September 30, 2022 increased 19% to 139,900 from 117,700 for the
three months ended September 30, 2021, and increased 5% from
133,100 for the three months ended June 30, 2022
-
Direct-to-Consumer average order value for the three months ended
September 30, 2022 increased $42, or 2% to $2,333 from $2,291 for
the three months ended September 30, 2021, and decreased $409, or
15% from $2,742 for the three months ended June 30, 2022
- JM Bullion’s
average order value for the three months ended June 30, 2022
increased $21, or 1% to $2,151 from $2,130 for the three months
ended September 30, 2021, and decreased $346, or 14% from $2,497
for the three months ended June 30, 2022
|
|
Three Months Ended September 30, |
|
|
|
2022 |
|
2021 |
Selected Operating Metrics: |
|
|
|
|
|
Gold ounces sold (1) |
|
|
629,000 |
|
|
669,000 |
|
Silver ounces sold (2) |
|
|
35,917,000 |
|
|
28,127,000 |
|
Number of secured loans at period end (3) |
|
|
1,082 |
|
|
2,074 |
|
Direct-to-Consumer ("DTC") number of new customers (4) |
|
|
49,000 |
|
|
52,900 |
|
Direct-to-Consumer number of active customers (5) |
|
|
139,900 |
|
|
117,700 |
|
Direct-to-Consumer number of total customers (6) |
|
|
2,062,000 |
|
|
1,835,500 |
|
Direct-to-Consumer average order value ("AOV") (7) |
|
$ |
2,333 |
|
$ |
2,291 |
|
JM Bullion (“JMB”) average order value (8) |
|
$ |
2,151 |
|
$ |
2,130 |
|
CyberMetals number of new customers (9) |
|
|
2,300 |
|
|
- |
|
CyberMetals number of active customers (10) |
|
|
2,000 |
|
|
- |
|
CyberMetals number of total customers (11) |
|
|
8,200 |
|
|
- |
|
CyberMetals customer assets under management (12) |
|
$ |
4,600,000 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Gold ounces sold represents the ounces of gold product sold and
delivered to the customer during the period, excluding ounces of
gold recorded on forward contracts. |
(2) Silver ounces sold represents the ounces of silver product sold
and delivered to the customer during the period, excluding ounces
of silver recorded on forward contracts. |
(3) Number of outstanding secured loans to customers that are
primarily collateralized by precious metals at the end of the
period. |
(4) DTC number of new customers represents the number of customers
that have registered or set up a new account or made a purchase for
the first time during the period within the Direct-to-Consumer
segment (includes JMB, GLI and PMPP). |
(5) DTC number of active customers represents the number of
customers that have made a purchase during the period within the
Direct-to-Consumer segment. |
(6) DTC number of total customers represents the aggregate number
of customers that have registered or set up an account or have made
a purchase in the past within the Direct-to-Consumer segment. |
(7) DTC AOV represents the average dollar value of third-party
product orders (excluding accumulation program orders) delivered to
the customer during the period within the Direct-to-Consumer
segment. |
(8) JMB AOV represents the average dollar value of third-party
product orders delivered to JMB's customers during the period. |
(9) CyberMetals number of new customers represents the number of
customers that have registered or set up a new account or made a
purchase for the first time during the period on the CyberMetals
platform. |
(10) CyberMetals number of active customers represents the number
of customers that have made a purchase during the period from the
CyberMetals platform. |
(11) CyberMetals number of total customers represents the aggregate
number of customers that have registered or set up an account or
have made a purchase in the past from the CyberMetals
platform. |
(12) CyberMetals customer assets under management represents the
total value of assets managed by the Company on behalf of
CyberMetals customers. |
|
|
Three Months Ended |
|
|
September 30, 2022 |
June 30, 2022 |
Selected Operating Metrics: |
|
|
|
|
|
Gold ounces sold (1) |
|
|
629,000 |
|
|
641,000 |
|
Silver ounces sold (2) |
|
|
35,917,000 |
|
|
37,597,000 |
|
Number of secured loans at period end (3) |
|
|
1,082 |
|
|
2,271 |
|
Direct-to-Consumer ("DTC") number of new customers (4) |
|
|
49,000 |
|
|
48,800 |
|
Direct-to-Consumer number of active customers (5) |
|
|
139,900 |
|
|
133,100 |
|
Direct-to-Consumer number of total customers (6) |
|
|
2,062,000 |
|
|
2,013,000 |
|
Direct-to-Consumer average order value ("AOV") (7) |
|
$ |
2,333 |
|
$ |
2,742 |
|
JM Bullion ("JMB") average order value (8) |
|
$ |
2,151 |
|
$ |
2,497 |
|
CyberMetals number of new customers (9) |
|
|
2,300 |
|
|
5,200 |
|
CyberMetals number of active customers (10) |
|
|
2,000 |
|
|
2,800 |
|
CyberMetals number of total customers (11) |
|
|
8,200 |
|
|
5,900 |
|
CyberMetals customer assets under management (12) |
|
$ |
4,600,000 |
|
$ |
3,700,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Gold ounces sold represents the ounces of gold product sold and
delivered to the customer during the period, excluding ounces of
gold recorded on forward contracts. |
(2) Silver ounces sold represents the ounces of silver product sold
and delivered to the customer during the period, excluding ounces
of silver recorded on forward contracts. |
(3) Number of outstanding secured loans to customers that are
primarily collateralized by precious metals at the end of the
period. |
(4) DTC number of new customers represents the number of customers
that have registered or set up a new account or made a purchase for
the first time during the period within the Direct-to-Consumer
segment (includes JMB, GLI and PMPP). |
(5) DTC number of active customers represents the number of
customers that have made a purchase during the period within the
Direct-to-Consumer segment. |
(6) DTC number of total customers represents the aggregate number
of customers that have registered or set up an account or have made
a purchase in the past within the Direct-to-Consumer segment. |
(7) DTC AOV represents the average dollar value of third-party
product orders (excluding accumulation program orders) delivered to
the customer during the period within the Direct-to-Consumer
segment. |
(8) JMB AOV represents the average dollar value of third-party
product orders delivered to JMB's customers during the period. |
(9) CyberMetals number of new customers represents the number of
customers that have registered or set up a new account or made a
purchase for the first time during the period on the CyberMetals
platform. |
(10) CyberMetals number of active customers represents the number
of customers that have made a purchase during the period from the
CyberMetals platform. |
(11) CyberMetals number of total customers represents the aggregate
number of customers that have registered or set up an account or
have made a purchase in the past from the CyberMetals
platform. |
(12) CyberMetals customer assets under management represents the
total value of assets managed by the Company on behalf of
CyberMetals customers. |
Fiscal First Quarter 2023 Financial
Highlights
- Revenues for the
three months ended September 30, 2022 decreased 6% to $1.90 billion
from $2.01 billion for the three months ended September 30, 2021
and decreased 9% from $2.09 billion for the three months ended June
30, 2022
- Gross profit for
the three months ended September 30, 2022 increased 37% to $76.6
million from $56.0 million for the three months ended September 30,
2021 and increased 13% from $67.8 million for the three months
ended June 30, 2022
- Gross profit
margin for the three months ended September 30, 2022 increased to
4.03% of revenue, from 2.78% of revenue for the three months ended
September 30, 2021, and improved from 3.24% of revenue in the three
months ended June 30, 2022
- Net income
attributable to the Company for the three months ended September
30, 2022 increased 73% to $45.1 million from $26.0 million for the
three months ended September 30, 2021, and increased 21% from $37.3
million for the three months ended June 30, 2022
- Diluted earnings
per share totaled $1.83 for the three months ended September 30,
2022, a 69% increase compared to $1.08 for the three months ended
September 30, 2021, adjusted for the effect of the two-for-one
stock split that occurred in June 2022, and increased 20% from
$1.52 for the three months ended June 30, 2022, adjusted for the
effect of the two-for-one stock split that occurred in June
2022
- Adjusted net
income before provision for income taxes, depreciation,
amortization, and acquisition costs (“Adjusted net income before
provision for income taxes” or “Adjusted net income”), a non-GAAP
financial measure, for the three months ended September 30, 2022
increased 49% to $61.3 million from $41.1 million for the three
months ended September 30, 2021, and increased 21% from $50.6
million for the three months ended June 30, 2022
- Earnings before
interest, taxes, depreciation and amortization (“EBITDA”), a
non-GAAP liquidity measure, for the three months ended September
30, 2022 increased 52% to $62.2 million from $41.0 million for the
three months ended September 30, 2021, and increased 24% from $50.3
million for the three months ended June 31, 2022
|
|
Three Months Ended September 30, |
|
|
|
2022 |
|
2021 |
|
|
(in thousands, except Earnings per Share and Weighted
Average Shares Outstanding) |
Selected Key Financial Statement Metrics: |
|
|
|
|
|
Revenues |
|
$ |
1,900,351 |
|
|
$ |
2,013,971 |
|
|
Gross profit |
|
$ |
76,592 |
|
|
$ |
56,009 |
|
|
Depreciation and amortization expense |
|
$ |
(3,184 |
) |
|
$ |
(8,271 |
) |
|
Net income attributable to the Company |
|
$ |
45,125 |
|
|
$ |
26,024 |
|
|
|
|
|
|
|
|
Earnings per Share (1): |
|
|
|
|
|
Basic |
|
$ |
1.93 |
|
|
$ |
1.16 |
|
|
Diluted |
|
$ |
1.83 |
|
|
$ |
1.08 |
|
|
Weighted Average Shares Outstanding (1): |
|
|
|
|
|
Basic |
|
|
23,396,400 |
|
|
|
22,525,200 |
|
|
Diluted |
|
|
24,685,200 |
|
|
|
24,018,600 |
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures: |
|
|
|
|
|
Adjusted net income before provision for income taxes |
|
$ |
61,274 |
|
|
$ |
41,108 |
|
|
EBITDA |
|
$ |
62,226 |
|
|
$ |
41,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Q1 FY 2022 is retroactively adjusted for the
effect of the June 2022 two-for-one stock split in the form of a
stock dividend. |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2022 |
June 30, 2022 |
|
|
(in thousands, except Earnings per Share and Weighted
Average Shares Outstanding) |
Selected Key Financial Statement Metrics: |
|
|
|
|
|
Revenues |
|
$ |
1,900,351 |
|
|
$ |
2,089,804 |
|
|
Gross profit |
|
$ |
76,592 |
|
|
$ |
67,750 |
|
|
Depreciation and amortization expense |
|
$ |
(3,184 |
) |
|
$ |
(3,223 |
) |
|
Net income attributable to the Company |
|
$ |
45,125 |
|
|
$ |
37,336 |
|
|
|
|
|
|
|
|
Earnings per Share: |
|
|
|
|
|
Basic |
|
$ |
1.93 |
|
|
$ |
1.62 |
|
|
Diluted |
|
$ |
1.83 |
|
|
$ |
1.52 |
|
|
Weighted Average Shares Outstanding: |
|
|
|
|
|
Basic |
|
|
23,396,400 |
|
|
|
23,085,500 |
|
|
Diluted |
|
|
24,685,200 |
|
|
|
24,494,100 |
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures: |
|
|
|
|
|
Adjusted net income before provision for income taxes |
|
$ |
61,274 |
|
|
$ |
50,628 |
|
|
EBITDA |
|
$ |
62,226 |
|
|
$ |
50,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal First Quarter 2022 Financial
Summary
Revenues decreased 6% to $1.90 billion from
$2.01 billion in the same year-ago quarter due to a decrease in
gold ounces sold and lower average selling prices of gold and
silver, partially offset by an increase in silver ounces sold.
The Direct-to-Consumer segment contributed 23% and 26% of the
consolidated revenue in the fiscal first quarters of 2023 and 2022,
respectively. JMB’s revenue represented 20% of the consolidated
revenues for the fiscal first quarter of 2023 compared with 23% for
the prior year fiscal first quarter.
Gross profit increased 37% to $76.6 million (4.03% of revenue)
from $56.0 million (2.78% of revenue) in the same year-ago quarter.
The increase in gross profit was due to higher gross profits earned
from the Wholesale Sales & Ancillary Services and
Direct-to-Consumer segments. The Direct-to-Consumer segment
contributed 55% and 54% of the consolidated gross profit in the
fiscal first quarters of 2023 and 2022, respectively. Gross profit
contributed by JMB represented 48% of the consolidated gross profit
in the fiscal first quarter of 2023 and 44% of the consolidated
gross profit for the prior year fiscal first quarter.
Selling, general and administrative expenses
increased 7% to $17.8 million from $16.7 million in the same
year-ago quarter. The change was primarily due to an increase in
compensation expense (including performance-based accruals) of $1.0
million, higher advertising cost of $0.7 million, an increase in
computer-related expenses of $0.2 million, partially offset by
lower consulting and professional fees of $0.5 million and lower
insurance costs of $0.5 million.
Depreciation and amortization expense decreased
62% to $3.2 million from $8.3 million in the same year-ago quarter.
The decrease was primarily due to $5.1 million of JMB’s intangible
asset amortization expense.
Interest income decreased 8% to $5.1 million
from $5.5 million in the same year-ago quarter. The aggregate
decrease in interest income was primarily due to lower interest
income earned by our Secured Lending segment and lower other
finance product income.
Interest expense increased 12% to $6.1 million
from $5.5 million in the same year-ago quarter. The increase in
interest expense was primarily driven by $0.5 million associated
with the Company’s Trading Credit Facility and the AMCF Notes
(including amortization of debt issuance costs), $0.2 million
related to product financing arrangements, $0.1 million in interest
associated with liabilities on borrowed metals, offset by a
decrease of $0.2 million of loan servicing fees.
Earnings from equity method investments
increased 80% to $2.7 million from $1.5 million in the same
year-ago quarter. The net increase of $1.2 million was primarily
due to increased earnings from equity method investments.
Net income attributable to the Company totaled
$45.1 million or $1.83 per diluted share, compared to net income of
$26.0 million or $1.08 per diluted share in the same year-ago
quarter, adjusted for the effect of the two-for-one stock split
that occurred in June 2022.
Adjusted net income for the three months ended
September 30, 2022 totaled $61.3 million, an increase of $20.2
million or 49% compared to $41.1 million in the same year-ago
quarter. The increase is principally due to $25.2 million of higher
net income before provision for income taxes and $0.1 million of
higher depreciation expense, offset by $5.2 million of lower
amortization of acquired intangibles.
EBITDA for the three months ended September 30, 2022 totaled
$62.2 million, an increase of $21.1 million or 52% compared to
$41.0 million in the same year-ago quarter. The increase was
principally due to higher net income of $19.1 million. See the
reconciliation of net income to EBITDA for further details.
Management
Commentary
“Our first quarter results continue to
demonstrate the strength of our fully integrated precious metals
platform and diversified business model,” said A-Mark CEO Greg
Roberts. “We delivered robust growth across our key financial
metrics, including a 13% sequential increase in gross profit, a 79
basis point increase in our gross margin percentage, a 24% increase
in EBITDA, and a 9% quarterly return on equity. Our business is
fundamentally strengthened and more diverse as a result of our
growth strategy, which has broadened our customer base and further
enhanced our fully integrated capabilities.
“As we announced last month, JMB closed the
asset acquisition of BGASC, one of the largest coin and bullion
e-commerce dealers in the United States with over 120,000
customers. We have integrated BGASC as a standalone brand in our
DTC segment, and look forward to BGASC’s contribution to the
segment’s performance in the second quarter of fiscal 2023.
“Our minting business also remains a key driver
for our performance with production levels remaining near record
levels. We continue to invest in our minting operations, including
the recent acquisition of our largest tooling supplier, Marksmen
Tool and Die, and investments in other capital to further expand
both our minting facility and production capacity.
“Favorable market conditions, continued supply
constraints and elevated demand in both the retail and wholesale
segments have continued to positively impact our business in fiscal
2023 resulting in one of the strongest quarters in A-Mark’s
history. Our performance is attributable to our industry-leading
fully integrated precious metals platform and business model, which
we hope to continue to expand through synergistic acquisitions and
strategic investments. We remain optimistic that our proven
business model will allow us to realize growth and profitability
over the long term.”
Quarterly Cash Dividend Policy
A-Mark’s Board of Directors has re-affirmed its previously
announced regular quarterly cash dividend policy of $0.20 per
common share ($0.80 per share on an annual basis). The initial
quarterly cash dividend under the policy was paid on
October 24, 2022 to stockholders of record as of October 10,
2022. It is expected that the next quarterly dividend
will be paid in January 2023. The declaration of regular cash
dividends in the future is subject to the determination each
quarter by the Board of Directors, based on a number of factors,
including the Company’s financial performance, available cash
resources, cash requirements and alternative uses of cash and
applicable bank covenants.
Conference Call
A-Mark will hold a conference call today
(November 8, 2022) to discuss these financial results. A-Mark
management will host the call at 4:30 p.m. Eastern time (1:30 p.m.
Pacific time) followed by a question-and-answer period.
To participate, please call the conference
telephone number 10 minutes before the start time and ask for the
A-Mark Precious Metals conference call.
Webcast: https://www.webcaster4.com/Webcast/Page/2867/46777
U.S. dial-in number: 1-877-545-0320International
number: 1-973-528-0002Access Code: 107872
The conference call will be webcast
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 22, 2022.
Toll-free replay number:
1-877-481-4010International replay number: 1-919-882-2331Replay
Passcode: 46777
About A-Mark Precious
Metals
Founded 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,
Direct-to-Consumer, and Secured Lending. 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 SilverTowne 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 six separately branded,
company-owned websites targeting specific niches within the
precious metals market: JMBullion.com, ProvidentMetals.com,
Silver.com, GoldPrice.org, SilverPrice.org and BGASC.com. JMB also
owns CyberMetals.com, an online platform where customers can
purchase and sell fractional shares of digital gold, silver,
platinum and palladium bars in a range of denominations. 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, including the inability to identify
suitable or available acquisition or investment opportunities;
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; potential adverse effects of the current problems
in the national and global supply chains; 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; changes in consumer
demand and preferences for precious metal products generally;
potential negative effects that inflationary pressure may have on
our business; the failure of our investee companies to maintain, or
address the preferences of, their customer bases; general risks of
doing business in the commodity markets; the continued 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 and other
Risk Factors 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 and Liquidity MeasuresIn addition to presenting
the Company’s financial results determined in accordance with U.S.
GAAP, management believes the following non-GAAP measures are
useful in evaluating the Company’s operating performance: “adjusted
net income before provision for income taxes” and “earnings before
interest, taxes, depreciation and amortization” (“EBITDA”).
Management believes the “adjusted net income before provision for
income taxes” non-GAAP financial measure 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. Management believes the EBITDA non-GAAP
liquidity measure assists investors and analysts by facilitating
comparison with other publicly traded companies. Non-GAAP measures
do not have standardized definitions and should be considered in
addition to, and not as a substitute for or superior to, the
comparable measures prepared in accordance with U.S. 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. Management encourages investors and others to review
the Company’s financial information in its entirety and not to rely
on any single financial or liquidity measure.
In the Company’s reconciliation from its
reported U.S. GAAP “net income before provision for income taxes”
to its non-GAAP “adjusted net income before provision for income
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. The Company’s reconciliations from its
reported U.S. GAAP “net cash provided by (used in) operating
activities” to its non-GAAP “EBITDA” are provided below and are
also included in the Company’s Quarterly Report on Form 10-Q to be
filed with the SEC for the quarterly period ended September 30,
2022.
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)
|
|
September 30,2022 |
|
|
|
June 30,2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
64,635 |
|
|
|
$ |
37,783 |
|
Receivables, net |
|
|
110,848 |
|
|
|
|
97,040 |
|
Derivative assets |
|
|
32,507 |
|
|
|
|
91,743 |
|
Secured loans receivable |
|
|
87,313 |
|
|
|
|
126,217 |
|
Precious metals held under financing arrangements |
|
|
49,327 |
|
|
|
|
79,766 |
|
Inventories: |
|
|
|
|
|
|
|
|
|
Inventories |
|
|
458,487 |
|
|
|
|
458,347 |
|
Restricted inventories |
|
|
167,009 |
|
|
|
|
282,671 |
|
|
|
|
625,496 |
|
|
|
|
741,018 |
|
Prepaid expenses and other assets |
|
|
9,134 |
|
|
|
|
7,558 |
|
Total current
assets |
|
|
979,260 |
|
|
|
|
1,181,125 |
|
Operating lease right of use assets |
|
|
5,981 |
|
|
|
|
6,482 |
|
Property, plant, and equipment, net |
|
|
10,477 |
|
|
|
|
9,845 |
|
Goodwill |
|
|
100,943 |
|
|
|
|
100,943 |
|
Intangibles, net |
|
|
65,253 |
|
|
|
|
67,965 |
|
Long-term investments |
|
|
73,022 |
|
|
|
|
70,828 |
|
Other long-term assets |
|
|
5,471 |
|
|
|
|
5,471 |
|
Total
assets |
|
$ |
1,240,407 |
|
|
|
$ |
1,442,659 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Lines of credit |
|
$ |
63,000 |
|
|
|
$ |
215,000 |
|
Liabilities on borrowed metals |
|
|
55,909 |
|
|
|
|
59,417 |
|
Product financing arrangements |
|
|
167,009 |
|
|
|
|
282,671 |
|
Accounts payable and other payables |
|
|
28,574 |
|
|
|
|
6,127 |
|
Deferred revenue and other advances |
|
|
183,183 |
|
|
|
|
175,545 |
|
Derivative liabilities |
|
|
89,899 |
|
|
|
|
75,780 |
|
Accrued liabilities |
|
|
17,663 |
|
|
|
|
21,813 |
|
Income tax payable |
|
|
10,227 |
|
|
|
|
382 |
|
Total current
liabilities |
|
|
615,464 |
|
|
|
|
836,735 |
|
Notes payable |
|
|
98,182 |
|
|
|
|
94,073 |
|
Deferred tax liabilities |
|
|
15,388 |
|
|
|
|
15,408 |
|
Other liabilities |
|
|
5,483 |
|
|
|
|
5,972 |
|
Total
liabilities |
|
|
734,517 |
|
|
|
|
952,188 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 10,000,000 shares;
issued and outstanding: none as of September 30, 2022 and
June 30, 2022 |
|
|
— |
|
|
|
|
— |
|
Common stock, par value $0.01; 40,000,000 shares authorized;
23,453,339 and 23,379,888 shares issued and outstanding as of
September 30, 2022 and June 30, 2022, respectively |
|
|
235 |
|
|
|
|
234 |
|
Additional paid-in capital |
|
|
165,814 |
|
|
|
|
166,526 |
|
Accumulated other comprehensive income |
|
|
52 |
|
|
|
|
— |
|
Retained earnings |
|
|
338,816 |
|
|
|
|
321,849 |
|
Total A-Mark Precious
Metals, Inc. stockholders’ equity |
|
|
504,917 |
|
|
|
|
488,609 |
|
Noncontrolling interest |
|
|
973 |
|
|
|
|
1,862 |
|
Total stockholders’
equity |
|
|
505,890 |
|
|
|
|
490,471 |
|
Total liabilities,
noncontrolling interest and stockholders’ equity |
|
$ |
1,240,407 |
|
|
|
$ |
1,442,659 |
|
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 30,2022 |
|
|
|
September 30,2021 |
|
Revenues |
|
$ |
1,900,351 |
|
|
|
$ |
2,013,971 |
|
Cost of sales |
|
|
1,823,759 |
|
|
|
|
1,957,962 |
|
Gross profit |
|
|
76,592 |
|
|
|
|
56,009 |
|
Selling, general, and
administrative expenses |
|
|
(17,784 |
) |
|
|
|
(16,677 |
) |
Depreciation and amortization
expense |
|
|
(3,184 |
) |
|
|
|
(8,271 |
) |
Interest income |
|
|
5,096 |
|
|
|
|
5,531 |
|
Interest expense |
|
|
(6,130 |
) |
|
|
|
(5,473 |
) |
Earnings from equity method
investments |
|
|
2,677 |
|
|
|
|
1,489 |
|
Other income, net |
|
|
527 |
|
|
|
|
409 |
|
Unrealized gains (losses) on
foreign exchange |
|
|
214 |
|
|
|
|
(224 |
) |
Net income before provision for
income taxes |
|
|
58,008 |
|
|
|
|
32,793 |
|
Income tax expense |
|
|
(12,771 |
) |
|
|
|
(6,669 |
) |
Net income |
|
|
45,237 |
|
|
|
|
26,124 |
|
Net income attributable to noncontrolling interest |
|
|
112 |
|
|
|
|
100 |
|
Net income attributable to the
Company |
|
$ |
45,125 |
|
|
|
$ |
26,024 |
|
Basic and diluted net
income per share attributable to A-Mark Precious
Metals, Inc.: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.93 |
|
|
|
$ |
1.16 |
|
Diluted |
|
$ |
1.83 |
|
|
|
$ |
1.08 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
23,396,400 |
|
|
|
|
22,525,200 |
|
Diluted |
|
|
24,685,200 |
|
|
|
|
24,018,600 |
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(amounts in thousands)
(unaudited)
Three Months Ended September 30, |
|
2022 |
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
45,237 |
|
|
$ |
26,124 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,184 |
|
|
|
8,271 |
|
Amortization of loan cost |
|
|
554 |
|
|
|
569 |
|
Deferred income taxes |
|
|
(36 |
) |
|
|
(1,423 |
) |
Interest added to principal of secured loans |
|
|
(4 |
) |
|
|
(5 |
) |
Share-based compensation |
|
|
535 |
|
|
|
473 |
|
Earnings from equity method investments |
|
|
(2,677 |
) |
|
|
(1,489 |
) |
Dividends received from equity method investees |
|
|
551 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
|
(13,808 |
) |
|
|
(15,522 |
) |
Secured loans receivable |
|
|
368 |
|
|
|
25 |
|
Secured loans made to affiliates |
|
|
— |
|
|
|
3,032 |
|
Derivative assets |
|
|
59,236 |
|
|
|
(25,249 |
) |
Precious metals held under financing arrangements |
|
|
30,439 |
|
|
|
24,124 |
|
Inventories |
|
|
115,522 |
|
|
|
(107,686 |
) |
Prepaid expenses and other assets |
|
|
(1,738 |
) |
|
|
(689 |
) |
Accounts payable and other payables |
|
|
22,447 |
|
|
|
22,691 |
|
Deferred revenue and other advances |
|
|
7,638 |
|
|
|
(44,244 |
) |
Derivative liabilities |
|
|
14,119 |
|
|
|
62,809 |
|
Liabilities on borrowed metals |
|
|
(3,508 |
) |
|
|
(17,248 |
) |
Accrued liabilities |
|
|
(8,282 |
) |
|
|
(6,420 |
) |
Income tax payable |
|
|
9,845 |
|
|
|
2,124 |
|
Net cash provided by
(used in) operating activities |
|
|
279,622 |
|
|
|
(69,733 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Capital expenditures for property, plant, and equipment |
|
|
(927 |
) |
|
|
(709 |
) |
Purchase of long-term investments |
|
|
(500 |
) |
|
|
(6,250 |
) |
Secured loans receivable, net |
|
|
38,540 |
|
|
|
(407 |
) |
Net cash provided by
(used in) investing activities |
|
|
37,113 |
|
|
|
(7,366 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Product financing arrangements, net |
|
|
(115,662 |
) |
|
|
18,392 |
|
Dividends paid |
|
|
(23,394 |
) |
|
|
(22,639 |
) |
Distributions paid to noncontrolling interest |
|
|
(1,001 |
) |
|
|
— |
|
Borrowings and repayments under lines of credit, net |
|
|
(152,000 |
) |
|
|
9,000 |
|
Proceeds from issuance of related party note |
|
|
3,887 |
|
|
|
— |
|
Debt funding issuance costs |
|
|
(170 |
) |
|
|
(199 |
) |
Proceeds from the exercise of share-based awards |
|
|
63 |
|
|
|
762 |
|
Payments for tax withholding related to net settlement of
share-based awards |
|
|
(1,606 |
) |
|
|
(13 |
) |
Net cash (used in)
provided by financing activities |
|
|
(289,883 |
) |
|
|
5,303 |
|
Net increase (decrease)
in cash |
|
|
26,852 |
|
|
|
(71,796 |
) |
Cash, beginning of
period |
|
|
37,783 |
|
|
|
101,405 |
|
Cash, end of
period |
|
$ |
64,635 |
|
|
$ |
29,609 |
|
Overview of Results of Operations for the Three Months
Ended September 30, 2022 and 2021
Consolidated Results of
Operations
The operating
results for the three months ended September 30, 2022 and 2021 are
as follows:
in
thousands, except per share
data |
|
Three Months Ended
September 30, |
|
2022 |
|
|
2021 |
|
|
|
$ |
|
|
% |
|
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
|
% ofrevenue |
|
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Revenues |
|
$ |
1,900,351 |
|
|
100.000 |
% |
|
$ |
2,013,971 |
|
|
100.000 |
% |
|
|
$ |
(113,620 |
) |
|
(5.6 |
%) |
Gross profit |
|
|
76,592 |
|
|
4.030 |
% |
|
|
56,009 |
|
|
2.781 |
% |
|
|
$ |
20,583 |
|
|
36.7 |
% |
Selling, general, and
administrative expenses |
|
|
(17,784 |
) |
|
(0.936 |
%) |
|
|
(16,677 |
) |
|
(0.828 |
%) |
|
|
$ |
1,107 |
|
|
6.6 |
% |
Depreciation and amortization
expense |
|
|
(3,184 |
) |
|
(0.168 |
%) |
|
|
(8,271 |
) |
|
(0.411 |
%) |
|
|
$ |
(5,087 |
) |
|
(61.5 |
%) |
Interest income |
|
|
5,096 |
|
|
0.268 |
% |
|
|
5,531 |
|
|
0.275 |
% |
|
|
$ |
(435 |
) |
|
(7.9 |
%) |
Interest expense |
|
|
(6,130 |
) |
|
(0.323 |
%) |
|
|
(5,473 |
) |
|
(0.272 |
%) |
|
|
$ |
657 |
|
|
12.0 |
% |
Earnings from equity method
investments |
|
|
2,677 |
|
|
0.141 |
% |
|
|
1,489 |
|
|
0.074 |
% |
|
|
$ |
1,188 |
|
|
79.8 |
% |
Other income, net |
|
|
527 |
|
|
0.028 |
% |
|
|
409 |
|
|
0.020 |
% |
|
|
$ |
118 |
|
|
28.9 |
% |
Unrealized gains (losses) on
foreign exchange |
|
|
214 |
|
|
0.011 |
% |
|
|
(224 |
) |
|
(0.011 |
%) |
|
|
$ |
438 |
|
|
195.5 |
% |
Net income before provision for
income taxes |
|
|
58,008 |
|
|
3.052 |
% |
|
|
32,793 |
|
|
1.628 |
% |
|
|
$ |
25,215 |
|
|
76.9 |
% |
Income tax expense |
|
|
(12,771 |
) |
|
(0.672 |
%) |
|
|
(6,669 |
) |
|
(0.331 |
%) |
|
|
$ |
6,102 |
|
|
91.5 |
% |
Net income |
|
|
45,237 |
|
|
2.380 |
% |
|
|
26,124 |
|
|
1.297 |
% |
|
|
$ |
19,113 |
|
|
73.2 |
% |
Net income attributable to noncontrolling interest |
|
|
112 |
|
|
0.006 |
% |
|
|
100 |
|
|
0.005 |
% |
|
|
$ |
12 |
|
|
12.0 |
% |
Net income attributable to the
Company |
|
$ |
45,125 |
|
|
2.375 |
% |
|
$ |
26,024 |
|
|
1.292 |
% |
|
|
$ |
19,101 |
|
|
73.4 |
% |
|
Basic and
diluted net income per share attributable
to A-Mark Precious Metals,
Inc.: |
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.93 |
|
|
|
|
|
$ |
1.16 |
|
|
|
|
|
|
$ |
0.77 |
|
|
66.4 |
% |
Diluted |
|
$ |
1.83 |
|
|
|
|
|
$ |
1.08 |
|
|
|
|
|
|
$ |
0.75 |
|
|
69.4 |
% |
Overview of Results of Operations for the Three Months
Ended September 30, 2022 and June 30, 2022
Consolidated Results of
Operations
The operating
results for the three months ended September 30, 2022 and June 30,
2022 are as follows:
in
thousands, except per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
$ |
|
% |
|
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
% ofrevenue |
|
Increase/(decrease) |
|
Increase/(decrease) |
|
Revenues |
|
$ |
1,900,351 |
|
|
100.000 |
% |
|
$ |
2,089,804 |
|
|
100.000 |
% |
|
$ |
(189,453 |
) |
|
|
(9.1 |
%) |
Gross profit |
|
|
76,592 |
|
|
4.030 |
% |
|
|
67,750 |
|
|
3.242 |
% |
|
$ |
8,842 |
|
|
|
13.1 |
% |
Selling, general, and
administrative expenses |
|
|
(17,784 |
) |
|
(0.936 |
)% |
|
|
(20,734 |
) |
|
(0.992 |
)% |
|
$ |
(2,950 |
) |
|
|
(14.2 |
%) |
Depreciation and amortization
expense |
|
|
(3,184 |
) |
|
(0.168 |
)% |
|
|
(3,223 |
) |
|
(0.154 |
)% |
|
$ |
(39 |
) |
|
|
(1.2 |
%) |
Interest income |
|
|
5,096 |
|
|
0.268 |
% |
|
|
5,675 |
|
|
0.272 |
% |
|
$ |
(579 |
) |
|
|
(10.2 |
%) |
Interest expense |
|
|
(6,130 |
) |
|
(0.323 |
)% |
|
|
(5,695 |
) |
|
(0.273 |
)% |
|
$ |
435 |
|
|
|
7.6 |
% |
Earnings from equity method
investments |
|
|
2,677 |
|
|
0.141 |
% |
|
|
2,590 |
|
|
0.124 |
% |
|
$ |
87 |
|
|
|
3.4 |
% |
Other income, net |
|
|
527 |
|
|
0.028 |
% |
|
|
618 |
|
|
0.030 |
% |
|
$ |
(91 |
) |
|
|
(14.7 |
%) |
Unrealized gains on foreign
exchange |
|
|
214 |
|
|
0.011 |
% |
|
|
30 |
|
|
0.001 |
% |
|
$ |
184 |
|
|
|
613.3 |
% |
Net income before provision for
income taxes |
|
|
58,008 |
|
|
3.052 |
% |
|
|
47,011 |
|
|
2.250 |
% |
|
$ |
10,997 |
|
|
|
23.4 |
% |
Income tax expense |
|
|
(12,771 |
) |
|
(0.672 |
)% |
|
|
(9,541 |
) |
|
(0.457 |
)% |
|
$ |
3,230 |
|
|
|
33.9 |
% |
Net income |
|
|
45,237 |
|
|
2.380 |
% |
|
|
37,470 |
|
|
1.793 |
% |
|
$ |
7,767 |
|
|
|
20.7 |
% |
Net income attributable to non-controlling interests |
|
|
112 |
|
|
0.006 |
% |
|
|
134 |
|
|
0.006 |
% |
|
$ |
(22 |
) |
|
|
(16.4 |
%) |
Net income attributable to the
Company |
|
$ |
45,125 |
|
|
2.375 |
% |
|
$ |
37,336 |
|
|
1.787 |
% |
|
$ |
7,789 |
|
|
|
20.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per share attributable to A-Mark Precious
Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.93 |
|
|
|
|
|
$ |
1.62 |
|
|
|
|
$ |
0.31 |
|
|
|
19.1 |
% |
Diluted |
|
$ |
1.83 |
|
|
|
|
|
$ |
1.52 |
|
|
|
|
$ |
0.31 |
|
|
|
20.4 |
% |
Reconciliation of U.S. GAAP to Non-GAAP Financial and
Liquidity Measures for the Three Months Ended September 30, 2022
and 2021
A reconciliation of net income before provision for income taxes
to adjusted net income before provision for income taxes for the
three months ended September 30, 2022 and 2021 follows:
in
thousands |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
2022 |
|
2021 |
|
$ |
|
|
% |
|
|
|
$ |
|
$ |
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Net income before provision for income taxes |
|
$ |
58,008 |
|
$ |
32,793 |
|
$ |
25,215 |
|
|
|
76.9 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
82 |
|
|
44 |
|
$ |
38 |
|
|
|
86.4 |
% |
Amortization of acquired intangibles |
|
|
2,711 |
|
|
7,872 |
|
$ |
(5,161 |
) |
|
|
(65.6 |
%) |
Depreciation expense |
|
|
473 |
|
|
399 |
|
$ |
74 |
|
|
|
18.5 |
% |
Adjusted net income before
provision for income taxes (non-GAAP) |
|
$ |
61,274 |
|
$ |
41,108 |
|
$ |
20,166 |
|
|
|
49.1 |
% |
A reconciliation of net income to EBITDA for the three months
ended September 30, 2022 and 2021 follows:
in
thousands |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
|
|
$ |
|
|
$ |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Net income |
|
$ |
45,237 |
|
|
$ |
26,124 |
|
|
$ |
19,113 |
|
|
73.2 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(5,096 |
) |
|
|
(5,531 |
) |
|
$ |
(435 |
) |
|
(7.9 |
%) |
Interest expense |
|
|
6,130 |
|
|
|
5,473 |
|
|
$ |
657 |
|
|
12.0 |
% |
Amortization of acquired intangibles |
|
|
2,711 |
|
|
|
7,872 |
|
|
$ |
(5,161 |
) |
|
(65.6 |
%) |
Depreciation expense |
|
|
473 |
|
|
|
399 |
|
|
$ |
74 |
|
|
18.5 |
% |
Income tax expense |
|
|
12,771 |
|
|
|
6,669 |
|
|
$ |
6,102 |
|
|
91.5 |
% |
|
|
|
16,989 |
|
|
|
14,882 |
|
|
$ |
2,107 |
|
|
14.2 |
% |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
62,226 |
|
|
$ |
41,006 |
|
|
$ |
21,220 |
|
|
51.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP to Non-GAAP Financial and
Liquidity Measures for the Three Months Ended September 30, 2022
and June 30, 2022
A reconciliation of net income before provision for income taxes
to adjusted net income before provision for income taxes for the
three months ended September 30, 2022 and June 30, 2022
follows:
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
June 30, 2022 |
|
$ |
|
|
% |
|
|
|
$ |
|
$ |
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Net income before provision for
income taxes |
|
$ |
58,008 |
|
$ |
47,011 |
|
$ |
10,997 |
|
|
23.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
82 |
|
|
394 |
|
$ |
(312 |
) |
|
(79.2 |
%) |
Amortization of acquired intangibles |
|
|
2,711 |
|
|
2,736 |
|
$ |
(25 |
) |
|
(0.9 |
%) |
Depreciation expense |
|
|
473 |
|
|
487 |
|
$ |
(14 |
) |
|
(2.9 |
%) |
Adjusted net income before
provision for income taxes (non-GAAP) |
|
$ |
61,274 |
|
$ |
50,628 |
|
$ |
10,646 |
|
|
21.0 |
% |
A reconciliation of net income to EBITDA for the three months
ended September 30, 2022 and June 30, 2022 follows:
in
thousands |
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
$ |
|
|
% |
|
|
|
$ |
|
|
$ |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Net income |
|
$ |
45,237 |
|
|
$ |
37,470 |
|
|
$ |
7,767 |
|
|
20.7 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(5,096 |
) |
|
|
(5,675 |
) |
|
$ |
(579 |
) |
|
(10.2 |
%) |
Interest expense |
|
|
6,130 |
|
|
|
5,695 |
|
|
$ |
435 |
|
|
7.6 |
% |
Amortization of acquired intangibles |
|
|
2,711 |
|
|
|
2,736 |
|
|
$ |
(25 |
) |
|
(0.9 |
%) |
Depreciation expense |
|
|
473 |
|
|
|
487 |
|
|
$ |
(14 |
) |
|
(2.9 |
%) |
Income tax expense |
|
|
12,771 |
|
|
|
9,541 |
|
|
$ |
3,230 |
|
|
33.9 |
% |
|
|
|
16,989 |
|
|
|
12,784 |
|
|
$ |
4,205 |
|
|
32.9 |
% |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
62,226 |
|
|
$ |
50,254 |
|
|
$ |
11,972 |
|
|
23.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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