A-Mark Precious Metals, Inc.
(NASDAQ: AMRK) (A-Mark), a leading fully
integrated precious metals platform, today announced that it has
acquired a 12% ownership interest in Texas Precious Metals, LLC
(TPM), a leading e-commerce precious metals retailer with a strong
geographic presence in Texas, for cash consideration of $5.04
million.
Since 2011, TPM has processed over $1.25 billion
in client transactions and has shipped over 100,000 orders to all
50 states. TPM has over 50,000 customers and reported revenues for
calendar year 2021 of nearly $170 million. In 2018, TPM launched
Texas Depository, a private storage facility catering to
individuals, IRA custodians, and other large commercial
institutions with current holdings of $360 million. The TPM
signature Texas Silver Round is now in its eleventh year of
production, with over 3 million in circulation.
In connection with the acquisition, A-Mark and
TPM entered into a four-year extension of their existing exclusive
supplier agreement, extending its expiration to January 2027, with
automatic two-year renewals.
“We are excited to expand our long-standing
relationship with TPM with this investment,” said A-Mark CEO Greg
Roberts. “This transaction reflects our continued efforts to grow
our Direct-to-Consumer platform through strategic acquisitions and
investments. JM Bullion’s CEO, Michael Wittmeyer, and I look
forward to partnering with TPM’s President and co-founder, Tarek
Saab, to leverage our resources and expertise to expand our
products and provide other value-added services to the precious
metals markets.”
“As one of the premier companies in precious
metals distribution, minting, and financing, we are excited to add
A-Mark as a strategic investment partner,” said Mr. Saab. “This
partnership will greatly enhance our e-commerce and minting
capabilities as we continue to develop the Texas Mint product
portfolio and grow our customer product offerings.”
Below is a preliminary summary of selected key
operating metrics of the DTC segment (excluding Texas Precious
Metals, LLC and minority investments) as of and for the quarter
ended December 31, 2022:
|
|
Three Months Ended |
|
|
Preliminary 12/31/2022 |
|
9/30/2022 |
|
Selected Key Operating Metrics: |
|
|
|
|
|
Direct-to-Consumer ("DTC") gold ounces sold (1) |
|
|
130,000 |
|
|
153,000 |
|
Direct-to-Consumer silver ounces sold (2) |
|
|
5,674,000 |
|
|
6,400,000 |
|
Direct-to-Consumer number of new customers (3) |
|
|
131,000 |
|
|
49,000 |
|
Direct-to-Consumer number of active customers (4) |
|
|
116,400 |
|
|
139,900 |
|
Direct-to-Consumer number of total customers (5) |
|
|
2,193,000 |
|
|
2,062,000 |
|
Direct-to-Consumer average order value ("AOV") (6) |
|
$2,205 |
|
$2,333 |
|
CyberMetals number of new customers (7) |
|
|
4,000 |
|
|
2,300 |
|
CyberMetals number of active customers (8) |
|
|
1,300 |
|
|
2,000 |
|
CyberMetals number of total customers (9) |
|
|
12,200 |
|
|
8,200 |
|
CyberMetals customer assets under management (10) |
|
$5,600,000 |
|
$4,600,000 |
|
|
|
|
|
|
|
(1) DTC 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) DTC 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) 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 and subsidiaries (including BGASC), GLI, and
PMPP. |
(4) DTC number of active customers represents the number of
customers that have made a purchase during the period within the
Direct-to-Consumer segment. |
(5) 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. |
(6) 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. |
(7) 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. |
(8) CyberMetals number of active customers represents the number of
customers that have made a purchase during the period from the
CyberMetals platform. |
(9) 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. |
(10) CyberMetals customer assets under management represents the
total value of assets managed by the Company on behalf of
CyberMetals customers. |
About A-Mark Precious
MetalsFounded in 1965, A-Mark Precious Metals, Inc. 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 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 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
Statements
Statements 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
expectations 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; failure to achieve the anticipated benefits of the
acquisition; 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; 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.
Company Contact:Steve Reiner, Executive Vice
President, Capital Markets & Investor Relations A-Mark Precious
Metals, Inc.1-310-587-1410sreiner@amark.com
Investor Relations Contacts: Matt Glover or
Jeff Grampp, CFA Gateway Investor
Relations1-949-574-3860AMRK@gatewayir.com
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