A-Mark Precious Metals, Inc. (NASDAQ:
AMRK) (A-Mark), a leading fully integrated precious metals
platform, has provided guidance for its fiscal third quarter ending
March 31, 2021 in connection with the proposed underwritten
offering of its common stock announced on February 24, 2021.
Fiscal Third Quarter 2021 Financial GuidanceThe
Company expects net income before provision for income taxes in the
range of $29 million and $32 million, representing an increase of
approximately 116% to 139% compared to $13.4 million in the same
year-ago period.
The Company expects net income attributable to the Company in
the range of $22 million and $25 million, representing an increase
of approximately 95% to 121% compared to $11.3 million in the same
year-ago period.
The Company expects net income attributable to the Company per
diluted share in the range of $2.90 and $3.20, representing an
increase of approximately 80% to 99% compared to $1.61 in the same
year-ago period.
The estimates above do not reflect the acquisition of JM
Bullion, which is expected to close in the fiscal third
quarter.
A-Mark plans to report complete financial results for the fiscal
third quarter of 2021 in May 2021. A-Mark will announce earnings
call details the week prior to the event.
Management Commentary“Our financial guidance
reflects the strong performance we have achieved so far in the
third quarter and our outlook for the balance of the period, which
continues to be driven by elevated demand for precious metals
products,” said A-Mark CEO Greg Roberts. “Our performance over the
last several quarters demonstrates the strength of our vertically
integrated platform, including our mint relationships, logistics
capabilities and customer relationships. Our team has executed
exceptionally well to maximize our performance and take advantage
of the increase in market activity and secular tailwinds that are
driving the precious metals industry growth.”
Proposed Public OfferingThe guidance above is
being provided in connection with the proposed underwritten
offering of 2,800,000 shares of the Company’s common stock,
including 2,500,000 shares by the Company and 300,000 shares by
certain stockholders of the Company, with a proposed overallotment
option of 420,000 shares. The Company currently intends to use the
net proceeds of the sale of shares by the Company to fund a portion
of the consideration payable in connection with the previously
announced acquisition of JM Bullion, Inc., and other general
corporate purposes. The actual amount of any securities to be
issued, and the terms of those securities, will be determined at
the time of sale.
A registration statement relating to the sale of securities in
the offering has been filed with the Securities and Exchange
Commission (the “SEC”) but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior
to the time the registration statement becomes effective.
Before you invest, you should read the prospectus and prospectus
supplement in that registration statement and other documents we
have filed with the SEC for more complete information about us and
the offering. You may obtain these documents for free by visiting
EDGAR on the SEC website at www.sec.gov. Alternatively, we, any
underwriter or any dealer participating in the offering will
arrange to send you the prospectus and prospectus supplement if you
request it by calling 1-800-332-5915. In addition, copies of the
preliminary prospectus and preliminary prospectus supplement and
may be accessed by the following link:
https://www.sec.gov/Archives/edgar/data/1591588/000110465921027075/tm217611d1_s3a.htm
About A-Mark Precious MetalsFounded in
1965, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) is a
leading full-service precious metals company and wholesaler of
gold, silver, platinum and palladium bullion and related products.
The company’s global customer base includes sovereign and private
mints, manufacturers and fabricators, refiners, dealers, financial
institutions, industrial users, investors, collectors, and
e-commerce and other retail customers. The company conducts its
operations through three complementary segments: Wholesale Sales
and Ancillary Services, Secured Lending, and Direct Sales.
A-Mark is headquartered in El Segundo, California, with
offices and facilities in Los Angeles,
California, Vienna, Austria, Las Vegas, Nevada,
and Winchester, Indiana. For more information,
visit www.amark.com.
Important Cautions Regarding Forward-Looking
StatementsStatements in this press release that relate to
the preliminary guidance for the Company’s third fiscal quarter,
the proposed underwritten offering and the acquisition of JM
Bullion are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Securities
Exchange Act of 1934. Actual results for the third fiscal quarter
may differ, and the Company may be unsuccessful in conducting the
underwritten offering, or in consummating the acquisition of JM
Bullion, on the terms presently contemplated or at all. Future
risks, uncertainties, and circumstances, individually or in the
aggregate, could cause actual results or event to differ materially
from those expressed in or implied by the statements in this press
release. Factors that could cause actual results to differ include
the following: changes in consumer demand and preferences for
precious metal products; the effects of the COVID-19 pandemic and
the eventual return to normalized business and economic conditions;
the state of the financial and capital markets generally, and as
they relate to A-Mark in particular; the reaction of customers,
competitors and investors to the announcement of the underwritten
offering and the JM Bullion acquisition; and the strategic,
business, economic, financial, political and governmental risks
described in in the company’s public filings with the Securities
and Exchange Commission, including the Company’s registration
statement on Form S-3 (No. 333-249060) filed with the SEC on
February 24, 2021 . We undertake no intent or no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law.
Company Contact:Thor Gjerdrum, PresidentA-Mark
Precious Metals, Inc.1-310-587-1414thor@amark.com
Investor Relations Contact:Matt GloverGateway
Investor Relations1-949-574-3860AMRK@gatewayir.com
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