A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a
leading fully integrated precious metals platform, reported results
for the fiscal third quarter ended March 31, 2023.
Management Commentary
“Our third quarter results continued to
illustrate the effectiveness of our fully integrated precious
metals platform, especially during periods of increased market
volatility and macroeconomic uncertainty,” said A-Mark CEO Greg
Roberts. “Our integrated capabilities allow us to optimize access
to inventory, providing us with a consistent source of supply
during periods of increased demand. During the third quarter these
factors contributed to quarter-over-quarter increases of 19% in
revenue and 18% in gross profit, as well as a 6% quarterly return
on equity.
“We continue to benefit from the significant
impact of the Direct-To-Consumer segment to our overall results,
with a contribution of 57% to the consolidated gross profit for the
quarter, driven by a 124-basis point increase in the segment’s
gross margin percentage year-over-year. We remain diligent in our
strategy of seeking additional investment opportunities that align
with our business and expand our geographic footprint.
“Our minting business remains a consistent
contributor to our overall performance with production output at
near record levels. As we previously announced, during the quarter
our Silver Towne Mint achieved ISO 9000:2015 certification in
recognition of the facility’s high standards for quality
management. With the certification, Silver Towne Mint’s products
are now accepted into Individual Retirement Accounts (IRAs), which
has allowed us to expand our products to an even larger base of
customers. The Mint is now producing over one million ounces per
week, and we are currently in the process of expanding the size of
the facility and acquiring additional equipment to further increase
minting capacity.
“Looking ahead, we believe that our diversified
business model and access to inventory will allow us to further
capitalize on the heightened demand for precious metals. While our
core business remains strong, we are continuing to evaluate growth
opportunities that will further enhance our platform and contribute
to our business.”
Fiscal Third Quarter 2023 Operational
Highlights
- Gold ounces sold
in the three months ended March 31, 2023 decreased 9% to 659,000
ounces from 727,000 ounces for the three months ended March 31,
2022, and increased 17% from 565,000 ounces for the three months
ended December 31, 2022
- Silver ounces
sold in the three months ended March 31, 2023 increased 7% to 36.9
million ounces from 34.5 million ounces for the three months ended
March 31, 2022, and decreased 3% from 38.1 million ounces for the
three months ended December 31, 2022
- As of March 31,
2023, the number of secured loans decreased 64% to 963 from 2,697
as of March 31, 2022, and decreased 8% from 1,049 as of December
31, 2022
-
Direct-to-Consumer new customers for the three months ended March
31, 2023 decreased 40% to 64,700 from 108,400 for the three months
ended March 31, 2022, and decreased 51% from 131,200 for the three
months ended December 31, 2022. For the three month period ended
December 31, 2022, approximately 55% of the new customers were
attributable to the acquired customer list of BGASC in October
2022
-
Direct-to-Consumer active customers for the three months ended
March 31, 2023 decreased 9% to 147,400 from 162,700 for the three
months ended March 31, 2022, and increased 27% from 116,400 for the
three months ended December 31, 2022
-
Direct-to-Consumer average order value for the three months ended
March 31, 2023 decreased $266, or 10% to $2,452 from $2,718 for the
three months ended March 31, 2022, and increased $63, or 3% from
$2,389 for the three months ended December 31, 2022
- JM Bullion’s
average order value for the three months ended March 31, 2023
decreased $285, or 11% to $2,252 from $2,537 for the three months
ended March 31, 2022, and increased $14, or 1%, from $2,238 for the
three months ended December 31, 2022
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Selected Operating Metrics: |
|
|
|
|
|
|
|
|
Gold ounces sold(1) |
|
|
659,000 |
|
|
|
727,000 |
|
Silver ounces sold(2) |
|
|
36,906,000 |
|
|
|
34,498,000 |
|
Number of secured loans at period end(3) |
|
|
963 |
|
|
|
2,697 |
|
Direct-to-Consumer ("DTC") number of new customers(4) |
|
|
64,700 |
|
|
|
108,400 |
|
Direct-to-Consumer number of active customers(5) |
|
|
147,400 |
|
|
|
162,700 |
|
Direct-to-Consumer number of total customers(6) |
|
|
2,257,900 |
|
|
|
1,968,200 |
|
Direct-to-Consumer average order value ("AOV")(7) |
|
$ |
2,452 |
|
|
$ |
2,718 |
|
JM Bullion ("JMB") average order value(8) |
|
$ |
2,252 |
|
|
$ |
2,537 |
|
CyberMetals number of new customers(9) |
|
|
4,800 |
|
|
|
700 |
|
CyberMetals number of active customers(10) |
|
|
1,500 |
|
|
|
200 |
|
CyberMetals number of total customers(11) |
|
|
17,200 |
|
|
|
700 |
|
CyberMetals customer assets under management(12) |
|
$ |
6,500,000 |
|
|
$ |
300,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
(5) DTC number of active customers represents the number of
customers that have made a purchase during any month 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 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 |
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
Selected Operating Metrics: |
|
|
|
|
|
|
|
|
Gold ounces sold(1) |
|
|
659,000 |
|
|
|
565,000 |
|
Silver ounces sold(2) |
|
|
36,906,000 |
|
|
|
38,137,000 |
|
Number of secured loans at period end(3) |
|
|
963 |
|
|
|
1,049 |
|
Direct-to-Consumer ("DTC") number of new customers(4) |
|
|
64,700 |
|
|
|
131,200 |
|
Direct-to-Consumer number of active customers(5) |
|
|
147,400 |
|
|
|
116,400 |
|
Direct-to-Consumer number of total customers(6) |
|
|
2,257,900 |
|
|
|
2,193,200 |
|
Direct-to-Consumer average order value ("AOV")(7) |
|
$ |
2,452 |
|
|
$ |
2,389 |
|
JM Bullion ("JMB") average order value(8) |
|
$ |
2,252 |
|
|
$ |
2,238 |
|
CyberMetals number of new customers(9) |
|
|
4,800 |
|
|
|
4,300 |
|
CyberMetals number of active customers(10) |
|
|
1,500 |
|
|
|
1,300 |
|
CyberMetals number of total customers(11) |
|
|
17,200 |
|
|
|
12,500 |
|
CyberMetals customer assets under management(12) |
|
$ |
6,500,000 |
|
|
$ |
5,600,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
(5) DTC number of active customers represents the number of
customers that have made a purchase during any month 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 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 Nine Months 2023 Operational
Highlights
- Gold ounces sold
in the nine months ended March 31, 2023 decreased 9% to 1.9 million
ounces from 2.0 million ounces for the nine months ended March 31,
2022
- Silver ounces
sold in the nine months ended March 31, 2023 increased 17% to 111.0
million ounces from 94.6 million ounces for the nine months ended
March 31, 2022
-
Direct-to-Consumer new customers for the nine months ended March
31, 2023 increased 35% to 244,900 from 182,000 for the nine months
ended March 31, 2022. For the nine month period ended March 31,
2023, approximately 30% of the new customers were attributable to
the acquired customer list of BGASC in October 2022
-
Direct-to-Consumer active customers for the nine months ended March
31, 2023 decreased 30% to 342,500 from 492,000 for the nine months
ended March 31, 2022
-
Direct-to-Consumer average order value for the nine months ended
March 31, 2023 decreased $64, or 3% to $2,394 from $2,458 for the
nine months ended March 31, 2022
- JM Bullion’s
average order value for the nine months ended March 31, 2023
decreased $62, or 3% to $2,216 from $2,278 for the nine months
ended March 31, 2022
|
|
Nine Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Selected Operating Metrics: |
|
|
|
|
|
|
|
|
Gold ounces sold(1) |
|
|
1,853,000 |
|
|
|
2,027,000 |
|
Silver ounces sold(2) |
|
|
110,960,000 |
|
|
|
94,612,000 |
|
Number of secured loans at period end(3) |
|
|
963 |
|
|
|
2,697 |
|
Direct-to-Consumer ("DTC") number of new customers(4) |
|
|
244,900 |
|
|
|
182,000 |
|
Direct-to-Consumer number of active customers(5) |
|
|
342,500 |
|
|
|
492,000 |
|
Direct-to-Consumer number of total customers(6) |
|
|
2,257,900 |
|
|
|
1,968,200 |
|
Direct-to-Consumer average order value ("AOV")(7) |
|
$ |
2,394 |
|
|
$ |
2,458 |
|
JM Bullion ("JMB") average order value(8) |
|
$ |
2,216 |
|
|
$ |
2,278 |
|
CyberMetals number of new customers(9) |
|
|
11,300 |
|
|
|
700 |
|
CyberMetals number of active customers(10) |
|
|
3,100 |
|
|
|
200 |
|
CyberMetals number of total customers(11) |
|
|
17,200 |
|
|
|
700 |
|
CyberMetals customer assets under management(12) |
|
$ |
6,500,000 |
|
|
$ |
300,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
(5) DTC number of active customers represents the number of
customers that have made a purchase during any month 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 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 Third Quarter 2023 Financial
Highlights
- Revenues for the
three months ended March 31, 2023 increased 10% to $2.317 billion
from $2.109 billion for the three months ended March 31, 2022 and
increased 19% from $1.950 billion for the three months ended
December 31, 2022
- Gross profit for
the three months ended March 31, 2023 increased 5% to $75.5 million
from $72.1 million for the three months ended March 31, 2022 and
increased 18% from $64.0 million for the three months ended
December 31, 2022
- Gross profit
margin for the three months ended March 31, 2023 decreased to 3.26%
of revenue, from 3.42% of revenue for the three months ended March
31, 2022, and declined from 3.28% of revenue in the three months
ended December 31, 2022
- Net income
attributable to the Company for the three months ended March 31,
2023 decreased 4% to $35.9 million from $37.4 million for the three
months ended March 31, 2022, and increased 7% from $33.5 million
for the three months ended December 31, 2022
- Diluted earnings
per share totaled $1.46 for the three months ended March 31, 2023,
a 5% decrease compared to $1.53 for the three months ended March
31, 2022, adjusted for the effect of the two-for-one stock split in
the form of a stock dividend that occurred in June 2022, and
increased 8% from $1.35 for the three months ended December 31,
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 performance measure, for the three months ended March 31,
2023 decreased 9% to $49.2 million from $54.3 million for the three
months ended March 31, 2022, and increased 6% from $46.5 million
for the three months ended December 31, 2022
- Earnings before
interest, taxes, depreciation and amortization (“EBITDA”), a
non-GAAP liquidity measure, for the three months ended March 31,
2023 decreased 2% to $52.3 million from $53.6 million for the three
months ended March 31, 2022, and increased 7% from $48.7 million
for the three months ended December 31, 2022
|
Three Months Ended March 31, |
|
|
2023 |
|
|
2022 |
|
|
(in thousands, except Earnings per Share and Weighted Average
Shares Outstanding) |
|
|
|
|
|
|
|
|
|
Selected Key Financial Statement Metrics: |
|
|
|
|
|
|
|
Revenues |
$ |
2,317,150 |
|
|
$ |
2,109,115 |
|
Gross profit |
$ |
75,498 |
|
|
$ |
72,083 |
|
Depreciation and amortization expense |
$ |
(3,340 |
) |
|
$ |
(7,548 |
) |
Net income attributable to the Company |
$ |
35,920 |
|
|
$ |
37,382 |
|
|
|
|
|
|
|
|
|
Earnings per
Share(1): |
|
|
|
|
|
|
|
Basic |
$ |
1.53 |
|
|
$ |
1.64 |
|
Diluted |
$ |
1.46 |
|
|
$ |
1.53 |
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding(1): |
|
|
|
|
|
|
|
Basic |
|
23,421,300 |
|
|
|
22,859,600 |
|
Diluted |
|
24,655,400 |
|
|
|
24,425,800 |
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(2): |
|
|
|
|
|
|
|
Adjusted net income before provision for income taxes |
$ |
49,151 |
|
|
$ |
54,305 |
|
EBITDA |
$ |
52,263 |
|
|
$ |
53,555 |
|
|
|
|
|
|
|
|
|
(1) Q3 FY 2022 is retroactively adjusted for the effect of the June
2022 two-for-one stock split in the form of a stock dividend |
|
(2) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages
22-24 |
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
|
(in thousands, except Earnings per Share and Weighted Average
Shares Outstanding) |
|
|
|
|
|
|
|
|
|
|
Selected Key Financial Statement Metrics: |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
2,317,150 |
|
|
$ |
1,949,705 |
|
Gross profit |
|
$ |
75,498 |
|
|
$ |
63,969 |
|
Depreciation and amortization expense |
|
$ |
(3,340 |
) |
|
$ |
(3,260 |
) |
Net income attributable to the Company |
|
$ |
35,920 |
|
|
$ |
33,481 |
|
|
|
|
|
|
|
|
|
|
Earnings per Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.53 |
|
|
$ |
1.43 |
|
Diluted |
|
$ |
1.46 |
|
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
23,421,300 |
|
|
|
23,489,000 |
|
Diluted |
|
|
24,655,400 |
|
|
|
24,731,600 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
Adjusted net income before provision for income taxes |
|
$ |
49,151 |
|
|
$ |
46,471 |
|
EBITDA |
|
$ |
52,263 |
|
|
$ |
48,659 |
|
|
|
|
|
|
|
|
|
|
(1) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages
22-24 |
|
|
|
|
|
|
|
|
|
|
Fiscal Nine Months 2023 Financial
Highlights
- Revenues for the
nine months ended March 31, 2023 increased 2% to $6.167 billion
from $6.069 billion for the nine months ended March 31, 2022
- Gross profit for
the nine months ended March 31, 2023 increased 11% to $216.1
million from $194.0 million for the nine months ended March 31,
2022
- Gross profit
margin for the nine months ended March 31, 2023 increased to 3.50%
of revenue from 3.20% of revenue for the nine months ended March
31, 2022
- Net income
attributable to the Company for the nine months ended March 31,
2023 increased 20% to $114.5 million from $95.2 million for the
nine months ended March 31, 2022
- Diluted earnings
per share totaled $4.64 for the nine months ended March 31, 2023,
an 18% increase compared to $3.92 for the nine months ended March
31, 2022, adjusted for the effect of the two-for-one stock split in
the form of a stock dividend that occurred in June 2022
- Adjusted net
income for the nine months ended March 31, 2023 increased 9% to
$156.9 million from $144.4 million for the nine months ended March
31, 2022
- EBITDA for the
nine months ended March 31, 2023 increased 14% to $163.1 million
from $143.7 million for the nine months ended March 31, 2022
|
|
Nine Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands, except Earnings per Share and Weighted Average
Shares Outstanding) |
|
|
|
|
|
|
|
|
|
|
Selected Key Financial Statement Metrics: |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
6,167,206 |
|
|
$ |
6,069,450 |
|
Gross profit |
|
$ |
216,059 |
|
|
$ |
194,015 |
|
Depreciation and amortization expense |
|
$ |
(9,784 |
) |
|
$ |
(24,077 |
) |
Net income attributable to the Company |
|
$ |
114,526 |
|
|
$ |
95,200 |
|
|
|
|
|
|
|
|
|
|
Earnings per
Share(1): |
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.89 |
|
|
$ |
4.19 |
|
Diluted |
|
$ |
4.64 |
|
|
$ |
3.92 |
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding(1): |
|
|
|
|
|
|
|
|
Basic |
|
|
23,435,700 |
|
|
|
22,712,800 |
|
Diluted |
|
|
24,690,900 |
|
|
|
24,275,200 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(2) |
|
|
|
|
|
|
|
|
Adjusted net income before provision for income taxes |
|
$ |
156,896 |
|
|
$ |
144,372 |
|
EBITDA |
|
$ |
163,148 |
|
|
$ |
143,655 |
|
|
|
|
|
|
|
|
|
|
(1) Q3 YTD FY 2022 is retroactively adjusted for
the effect of the June 2022 two-for-one stock split in the form of
a stock dividend |
|
(2) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages
22-24 |
|
|
|
Fiscal Third Quarter 2023 Financial
Summary
Revenues increased 10% to $2.317 billion from
$2.109 billion in the same year-ago quarter. Excluding an increase
of $312.5 million of forward sales, revenues decreased $104.5
million or 6%, which was due to a decrease in gold ounces sold and
lower average selling prices of silver, partially offset by an
increase in silver ounces sold and higher average selling prices of
gold. The Direct-to-Consumer segment contributed 23% and 28% of the
consolidated revenue in the fiscal third quarters of 2023 and 2022,
respectively. JMB’s revenue represented 20% of the consolidated
revenues for the fiscal third quarter of 2023 compared with 26% for
the prior year fiscal third quarter.
Gross profit increased 5% to $75.5 million
(3.26% of revenue) from $72.1 million (3.42% of revenue) in the
same year-ago quarter. Excluding a $312.5 million increase in
forward sales, gross margin percentage increased to 4.5% of revenue
from 4.0% of revenue. The overall increase in gross profit was due
to higher gross profits earned from both the Wholesale Sales &
Ancillary Services and Direct-to-Consumer segments. The
Direct-to-Consumer segment contributed 57% and 58% of the
consolidated gross profit in the fiscal third quarters of 2023 and
2022, respectively. Gross profit contributed by JMB represented 47%
of the consolidated gross profit in the fiscal third quarter of
2023 and 48% of the consolidated gross profit for the prior year
fiscal third quarter.
Selling, general and administrative expenses
increased 16% to $23.8 million from $20.5 million in the same
year-ago quarter. The change was primarily due to an increase in
compensation expense (including performance-based accruals) of $2.6
million, higher advertising costs of $0.5 million, an increase in
computer-related expenses of $0.3 million, and an increase in
insurance costs of $0.2 million, partially offset by lower
consulting and professional fees of $0.5 million.
Depreciation and amortization expense decreased
56% to $3.3 million from $7.5 million in the same year-ago quarter.
The change was primarily due to a $4.3 million decrease in JMB’s
intangible asset amortization expense.
Interest income increased 14% to $6.1 million
from $5.3 million in the same year-ago quarter. The aggregate
increase in interest income was primarily due to higher other
finance product income partially offset by lower interest income
earned by our Secured Lending segment.
Interest expense increased 70% to $9.2 million
from $5.4 million in the same year-ago quarter. The increase in
interest expense was primarily driven by $3.1 million associated
with the Company’s Trading Credit Facility and the AMCF Notes
(including amortization of debt issuance costs), $0.9 million
related to product financing arrangements, partially offset by a
decrease of $0.3 million of loan servicing fees.
Earnings (losses) from equity method investments
decreased 104% to a loss of $0.1 million from earnings of $1.6
million in the same year-ago quarter. The net decrease was
primarily due to decreased earnings of our equity method
investees.
Net income attributable to the Company totaled
$35.9 million or $1.46 per diluted share, compared to net income of
$37.4 million or $1.53 per diluted share in the same year-ago
quarter, adjusted for the effect of the two-for-one stock split in
the form of a stock dividend that occurred in June 2022.
Adjusted net income before provision for income
taxes for the three months ended March 31, 2023 totaled $49.2
million, a decrease of $5.1 million or 10% compared to $54.3
million in the same year-ago quarter. The decrease is principally
due to a lower adjustment for amortization of acquired intangibles
of $4.5 million and lower acquisition costs of $0.8 million.
EBITDA for the three months ended March 31, 2023
totaled $52.3 million, a decrease of $1.3 million or 2% compared to
$53.6 million in the same year-ago quarter. The decrease is
principally due to lower amortization of acquired intangibles of
$4.5 million and lower net income of $1.5 million, partially offset
by higher interest expense of $3.8 million and higher income tax
expense of $1.4 million.
Fiscal Nine Months 2023 Financial
Summary
Revenues increased 2% to $6.167 billion from
$6.069 billion in the same year-ago period. Excluding an increase
of $596.1 million of forward sales, our revenues decreased $498.3
million or 10%, which was 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 27% of the consolidated revenue for the
nine months ended March 31, 2023 and 2022, respectively. JMB’s
revenue represented 21% of the consolidated revenues for the nine
months ended March 31, 2023 compared with 25% for the for the nine
months ended March 31, 2022.
Gross profit increased 11% to $216.1 million
(3.50% of revenue) from $194.0 million (3.20% of revenue) in the
same year-ago period. Excluding a $596.1 million increase in
forward sales, gross margin percentage increased to 4.7% of revenue
from 3.8% of revenue. The overall increase in gross profit was due
to higher gross profits earned from both the Wholesale Sales &
Ancillary Services and Direct-to-Consumer segments. The
Direct-to-Consumer segment contributed 56% of the consolidated
gross profit in the nine months ended March 31, 2023 and 2022.
Gross profit contributed by JMB represented 48% and 46% of the
consolidated gross profit for the nine months ended March 31, 2023
and 2022, respectively.
Selling, general and administrative expenses
increased 12% to $62.4 million from $55.9 million in the same
year-ago period. The change was primarily due to an increase in
compensation expense (including performance-based accruals) of $5.1
million, higher advertising costs of $2.4 million, an increase in
computer-related expenses of $0.8 million, an increase in insurance
costs of $0.4 million, partially offset by lower consulting and
professional fees of $2.5 million.
Depreciation and amortization expense decreased
59% to $9.8 million from $24.1 million in the same year-ago period.
The change was primarily due to a $14.4 million decrease in JMB’s
intangible asset amortization expense.
Interest income increased 0.3% to $16.2 million
from $16.1 million in the same year-ago period. The aggregate
increase in interest income was primarily due to an increase in
other finance product income partially offset by lower interest
income earned by our Secured Lending segment.
Interest expense increased 39% to $22.6 million
from $16.3 million in the same year-ago period. The increase in
interest expense was primarily driven by $4.9 million associated
with our Trading Credit Facility and the AMCF Notes (including
amortization of debt issuance costs), $1.8 million related to
product financing arrangements, and $0.4 million in interest
associated with liabilities on borrowed metals, partially offset by
a decrease of $0.7 million of loan servicing fees.
Earnings from equity method investments
increased 69% to $7.3 million from $4.3 million in the same
year-ago period. The net increase of $3.0 million was primarily due
to our additional 40% ownership interest in Silver Gold Bull, Inc.,
which was acquired in June 2022.
Net income attributable to the Company totaled
$114.5 million or $4.64 per diluted share, compared to net income
of $95.2 million or $3.92 per diluted share in the same year-ago
period, adjusted for the effect of the two-for-one stock split in
the form of a stock dividend that occurred in June 2022.
Adjusted net income before provision for income
taxes for the nine months ended March 31, 2023 totaled $156.9
million, an increase of $12.5 million or 9% compared to $144.4
million in the same year-ago period. The increase is principally
due to $27.5 million of higher net income before provision for
income taxes, partially offset by a lower adjustment for
amortization of acquired intangibles of $14.7 million.
EBITDA for the nine months ended March 31, 2023
totaled $163.1 million, an increase of $19.5 million or 14%
compared to $143.7 million in the same year-ago period. The
increase was principally due to higher net income of $19.2 million,
higher income tax expense of $8.3 million, and higher interest
expense of $6.3 million, partially offset by lower amortization of
acquired intangibles of $14.7 million.
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
Company paid a $0.20 quarterly cash dividend on April 28, 2023 to
stockholders of record as of April 17, 2023. It is expected that
the next quarterly dividend will be paid in July 2023. The
declaration of regular cash dividends in the future, including next
quarter, is subject to the determination each quarter by the Board
of Directors, based on several 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 (May 9,
2023) 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/2867/48137U.S. dial-in
number: 1-888-506-0062International number: 1-973-528-0011Access
Code: 146196
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 May 23, 2023.
Toll-free replay number:
1-877-481-4010International replay number: 1-919-882-2331Replay
Passcode: 48137
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, e-commerce customers 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 three
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.
A-Mark periodically provides information for
investors on its corporate website, www.amark.com, and its
investor relations website, ir.amark.com. This includes press
releases and other information about financial performance, reports
filed or furnished with the SEC, information on corporate
governance, and investor presentations.
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 the dividend declaration, the amount or
timing of any future dividends, 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 inability of
the Company to expand capacity at Silver Towne Mint, 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; 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 performance or future payment of dividends 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
Measures
In 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 performance 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 performance 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 performance or
liquidity measure.
In the Company’s attached 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 income” and “net cash provided by (used in) operating
activities” to its non-GAAP “EBITDA” are also attached and are
included in the Company’s Quarterly Report on Form 10-Q to be filed
with the SEC for the quarterly period ended March 31, 2023.
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
Matthew HauschGateway Group, Inc.
1-949-574-3860AMRK@gatewayIR.com
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(amounts in thousands, except for share
data) |
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
June 30, 2022 |
|
ASSETS |
|
|
(unaudited) |
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
78,101 |
|
|
$ |
37,783 |
|
Receivables, net |
|
|
90,076 |
|
|
|
97,040 |
|
Derivative assets |
|
|
58,456 |
|
|
|
91,743 |
|
Secured loans receivable |
|
|
96,856 |
|
|
|
126,217 |
|
Precious metals held under financing arrangements |
|
|
24,014 |
|
|
|
79,766 |
|
Inventories: |
|
|
|
|
|
|
|
|
Inventories |
|
|
675,414 |
|
|
|
458,347 |
|
Restricted inventories |
|
|
292,104 |
|
|
|
282,671 |
|
|
|
|
967,518 |
|
|
|
741,018 |
|
Income tax receivable |
|
|
861 |
|
|
|
— |
|
Prepaid expenses and other assets |
|
|
8,460 |
|
|
|
7,558 |
|
Total current
assets |
|
|
1,324,342 |
|
|
|
1,181,125 |
|
Operating lease right of use assets |
|
|
5,410 |
|
|
|
6,482 |
|
Property, plant, and equipment, net |
|
|
11,473 |
|
|
|
9,845 |
|
Goodwill |
|
|
100,943 |
|
|
|
100,943 |
|
Intangibles, net |
|
|
64,281 |
|
|
|
67,965 |
|
Long-term investments |
|
|
80,995 |
|
|
|
70,828 |
|
Other long-term assets |
|
|
5,459 |
|
|
|
5,471 |
|
Total
assets |
|
$ |
1,592,903 |
|
|
$ |
1,442,659 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Lines of credit |
|
$ |
230,000 |
|
|
$ |
215,000 |
|
Liabilities on borrowed metals |
|
|
25,730 |
|
|
|
59,417 |
|
Product financing arrangements |
|
|
292,104 |
|
|
|
282,671 |
|
Accounts payable and other payables |
|
|
10,164 |
|
|
|
6,127 |
|
Deferred revenue and other advances |
|
|
253,688 |
|
|
|
175,545 |
|
Derivative liabilities |
|
|
83,330 |
|
|
|
75,780 |
|
Accrued liabilities |
|
|
19,763 |
|
|
|
21,813 |
|
Income tax payable |
|
|
— |
|
|
|
382 |
|
Notes payable |
|
|
94,644 |
|
|
|
— |
|
Total current
liabilities |
|
|
1,009,423 |
|
|
|
836,735 |
|
Notes payable |
|
|
1,752 |
|
|
|
94,073 |
|
Deferred tax liabilities |
|
|
14,788 |
|
|
|
15,408 |
|
Other liabilities |
|
|
4,802 |
|
|
|
5,972 |
|
Total
liabilities |
|
|
1,030,765 |
|
|
|
952,188 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 10,000,000 shares;
issued and outstanding: none as of March 31, 2023 and
June 30, 2022 |
|
|
— |
|
|
|
— |
|
Common stock, par value $0.01; 40,000,000 shares authorized;
23,596,341 and 23,379,888 shares issued and 23,260,606 and
23,379,888 shares outstanding as of March 31, 2023 and
June 30, 2022, respectively |
|
|
236 |
|
|
|
234 |
|
Treasury stock, 335,735 and 0 shares at cost as of March 31,
2023 and June 30, 2022, respectively |
|
|
(9,762 |
) |
|
|
— |
|
Additional paid-in capital |
|
|
168,253 |
|
|
|
166,526 |
|
Accumulated other comprehensive loss |
|
|
(1,229 |
) |
|
|
— |
|
Retained earnings |
|
|
403,473 |
|
|
|
321,849 |
|
Total A-Mark Precious
Metals, Inc. stockholders’ equity |
|
|
560,971 |
|
|
|
488,609 |
|
Noncontrolling interest |
|
|
1,167 |
|
|
|
1,862 |
|
Total stockholders’
equity |
|
|
562,138 |
|
|
|
490,471 |
|
Total liabilities,
noncontrolling interest and stockholders’ equity |
|
$ |
1,592,903 |
|
|
$ |
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 March 31, |
|
|
Nine Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues |
|
$ |
2,317,150 |
|
|
$ |
2,109,115 |
|
|
$ |
6,167,206 |
|
|
$ |
6,069,450 |
|
Cost of sales |
|
|
2,241,652 |
|
|
|
2,037,032 |
|
|
|
5,951,147 |
|
|
|
5,875,435 |
|
Gross profit |
|
|
75,498 |
|
|
|
72,083 |
|
|
|
216,059 |
|
|
|
194,015 |
|
Selling, general, and
administrative expenses |
|
|
(23,841 |
) |
|
|
(20,494 |
) |
|
|
(62,438 |
) |
|
|
(55,884 |
) |
Depreciation and amortization
expense |
|
|
(3,340 |
) |
|
|
(7,548 |
) |
|
|
(9,784 |
) |
|
|
(24,077 |
) |
Interest income |
|
|
6,087 |
|
|
|
5,343 |
|
|
|
16,167 |
|
|
|
16,125 |
|
Interest expense |
|
|
(9,237 |
) |
|
|
(5,429 |
) |
|
|
(22,603 |
) |
|
|
(16,297 |
) |
Earnings (losses) from equity
method investments |
|
|
(70 |
) |
|
|
1,608 |
|
|
|
7,276 |
|
|
|
4,317 |
|
Other income, net |
|
|
641 |
|
|
|
493 |
|
|
|
2,001 |
|
|
|
1,335 |
|
Unrealized gains (losses) on
foreign exchange |
|
|
35 |
|
|
|
(135 |
) |
|
|
250 |
|
|
|
(128 |
) |
Net income before provision for
income taxes |
|
|
45,773 |
|
|
|
45,921 |
|
|
|
146,928 |
|
|
|
119,406 |
|
Income tax expense |
|
|
(9,775 |
) |
|
|
(8,375 |
) |
|
|
(32,096 |
) |
|
|
(23,797 |
) |
Net income |
|
|
35,998 |
|
|
|
37,546 |
|
|
|
114,832 |
|
|
|
95,609 |
|
Net income attributable to noncontrolling interest |
|
|
78 |
|
|
|
164 |
|
|
|
306 |
|
|
|
409 |
|
Net income attributable to the
Company |
|
$ |
35,920 |
|
|
$ |
37,382 |
|
|
$ |
114,526 |
|
|
$ |
95,200 |
|
Basic and diluted net income per
share attributable to A-Mark Precious Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.53 |
|
|
$ |
1.64 |
|
|
$ |
4.89 |
|
|
$ |
4.19 |
|
Diluted |
|
$ |
1.46 |
|
|
$ |
1.53 |
|
|
$ |
4.64 |
|
|
$ |
3.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
23,421,300 |
|
|
|
22,859,600 |
|
|
|
23,435,700 |
|
|
|
22,712,800 |
|
Diluted |
|
|
24,655,400 |
|
|
|
24,425,800 |
|
|
|
24,690,900 |
|
|
|
24,275,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(amounts in thousands;
unaudited) |
|
|
|
|
Nine Months Ended March 31, |
|
2023 |
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
114,832 |
|
|
$ |
95,609 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
9,784 |
|
|
|
24,077 |
|
Amortization of loan cost |
|
|
1,628 |
|
|
|
2,089 |
|
Deferred income taxes |
|
|
(251 |
) |
|
|
(4,563 |
) |
Interest added to principal of secured loans |
|
|
(10 |
) |
|
|
(13 |
) |
Share-based compensation |
|
|
1,607 |
|
|
|
1,628 |
|
Write-down of digital assets |
|
|
12 |
|
|
|
50 |
|
Earnings from equity method investments |
|
|
(7,276 |
) |
|
|
(4,317 |
) |
Dividends received from equity method investees |
|
|
551 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
|
6,964 |
|
|
|
23,364 |
|
Secured loans receivable |
|
|
1,012 |
|
|
|
747 |
|
Secured loans made to affiliates |
|
|
— |
|
|
|
(1,989 |
) |
Derivative assets |
|
|
33,287 |
|
|
|
18,563 |
|
Income tax receivable |
|
|
(861 |
) |
|
|
— |
|
Precious metals held under financing arrangements |
|
|
55,752 |
|
|
|
67,292 |
|
Inventories |
|
|
(226,500 |
) |
|
|
(306,244 |
) |
Prepaid expenses and other assets |
|
|
(1,488 |
) |
|
|
(1,923 |
) |
Accounts payable and other payables |
|
|
4,037 |
|
|
|
20,240 |
|
Deferred revenue and other advances |
|
|
78,143 |
|
|
|
(1,335 |
) |
Derivative liabilities |
|
|
7,550 |
|
|
|
17,244 |
|
Liabilities on borrowed metals |
|
|
(33,687 |
) |
|
|
(24,042 |
) |
Accrued liabilities |
|
|
(1,455 |
) |
|
|
2,569 |
|
Income tax payable |
|
|
(382 |
) |
|
|
(4,748 |
) |
Net cash provided by
(used in) operating activities |
|
|
43,249 |
|
|
|
(75,702 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Capital expenditures for property, plant, and equipment |
|
|
(3,227 |
) |
|
|
(2,106 |
) |
Purchase of long-term investments |
|
|
(5,540 |
) |
|
|
(6,750 |
) |
Purchase of intangible assets |
|
|
(4,500 |
) |
|
|
— |
|
Secured loans receivable, net |
|
|
28,359 |
|
|
|
(31,615 |
) |
Purchase of digital assets |
|
|
— |
|
|
|
(250 |
) |
Net cash provided by
(used in) investing activities |
|
|
15,092 |
|
|
|
(40,721 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Product financing arrangements, net |
|
|
9,433 |
|
|
|
(1,581 |
) |
Dividends paid |
|
|
(32,794 |
) |
|
|
(22,639 |
) |
Distributions paid to noncontrolling interest |
|
|
(1,001 |
) |
|
|
— |
|
Net borrowings and repayments under lines of credit |
|
|
15,000 |
|
|
|
70,000 |
|
Repayments on notes payable to related party |
|
|
(2,135 |
) |
|
|
— |
|
Repurchases of common stock |
|
|
(9,762 |
) |
|
|
— |
|
Proceeds from issuance of related party note |
|
|
3,887 |
|
|
|
— |
|
Debt funding issuance costs |
|
|
(471 |
) |
|
|
(4,187 |
) |
Proceeds from the exercise of share-based awards |
|
|
1,425 |
|
|
|
2,007 |
|
Payments for tax withholding related to net settlement of
share-based awards |
|
|
(1,605 |
) |
|
|
(33 |
) |
Net cash (used in)
provided by financing activities |
|
|
(18,023 |
) |
|
|
43,567 |
|
Net increase (decrease)
in cash |
|
|
40,318 |
|
|
|
(72,856 |
) |
Cash, beginning of
period |
|
|
37,783 |
|
|
|
101,405 |
|
Cash, end of
period |
|
$ |
78,101 |
|
|
$ |
28,549 |
|
|
|
|
|
|
|
|
|
|
Overview of Results of Operations for the Three Months
Ended March 31, 2023 and 2022
Consolidated Results of
Operations
The operating
results for the three months ended March 31, 2023 and 2022 were as
follows:
in thousands, except per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
2023 |
|
|
2022 |
|
|
Change |
|
|
$ |
|
|
% of revenue |
|
|
$ |
|
|
% of revenue |
|
|
$ |
|
|
% |
|
Revenues |
$ |
2,317,150 |
|
|
100.000 |
% |
|
$ |
2,109,115 |
|
|
100.000 |
% |
|
$ |
208,035 |
|
|
9.9 |
% |
Gross profit |
|
75,498 |
|
|
3.258 |
% |
|
|
72,083 |
|
|
3.418 |
% |
|
$ |
3,415 |
|
|
4.7 |
% |
Selling, general, and
administrative expenses |
|
(23,841 |
) |
|
(1.029 |
%) |
|
|
(20,494 |
) |
|
(0.972 |
%) |
|
$ |
3,347 |
|
|
16.3 |
% |
Depreciation and amortization
expense |
|
(3,340 |
) |
|
(0.144 |
%) |
|
|
(7,548 |
) |
|
(0.358 |
%) |
|
$ |
(4,208 |
) |
|
(55.7 |
%) |
Interest income |
|
6,087 |
|
|
0.263 |
% |
|
|
5,343 |
|
|
0.253 |
% |
|
$ |
744 |
|
|
13.9 |
% |
Interest expense |
|
(9,237 |
) |
|
(0.399 |
%) |
|
|
(5,429 |
) |
|
(0.257 |
%) |
|
$ |
3,808 |
|
|
70.1 |
% |
Earnings (losses) from equity
method investments |
|
(70 |
) |
|
(0.003 |
%) |
|
|
1,608 |
|
|
0.076 |
% |
|
$ |
(1,678 |
) |
|
(104.4 |
%) |
Other income, net |
|
641 |
|
|
0.028 |
% |
|
|
493 |
|
|
0.023 |
% |
|
$ |
148 |
|
|
30.0 |
% |
Unrealized gains (losses) on
foreign exchange |
|
35 |
|
|
0.002 |
% |
|
|
(135 |
) |
|
(0.006 |
%) |
|
$ |
170 |
|
|
125.9 |
% |
Net income before provision for
income taxes |
|
45,773 |
|
|
1.975 |
% |
|
|
45,921 |
|
|
2.177 |
% |
|
$ |
(148 |
) |
|
(0.3 |
%) |
Income tax expense |
|
(9,775 |
) |
|
(0.422 |
%) |
|
|
(8,375 |
) |
|
(0.397 |
%) |
|
$ |
1,400 |
|
|
16.7 |
% |
Net income |
|
35,998 |
|
|
1.554 |
% |
|
|
37,546 |
|
|
1.780 |
% |
|
$ |
(1,548 |
) |
|
(4.1 |
%) |
Net income attributable to noncontrolling interest |
|
78 |
|
|
0.003 |
% |
|
|
164 |
|
|
0.008 |
% |
|
$ |
(86 |
) |
|
(52.4 |
%) |
Net income attributable to the
Company |
$ |
35,920 |
|
|
1.550 |
% |
|
$ |
37,382 |
|
|
1.772 |
% |
|
$ |
(1,462 |
) |
|
(3.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per share attributable to A-Mark
Precious Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.53 |
|
|
|
$ |
1.64 |
|
|
|
|
$ |
(0.11 |
) |
|
(6.7 |
%) |
Diluted |
$ |
1.46 |
|
|
|
$ |
1.53 |
|
|
|
|
$ |
(0.07 |
) |
|
(4.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overview of Results of Operations for the Three Months
Ended March 31, 2023 and December 31, 2022
Consolidated Results of
Operations
The operating
results for the three months ended March 31, 2023, and December 31,
2022 were as follows:
in thousands, except per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
Change |
|
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
|
% |
|
Revenues |
|
$ |
2,317,150 |
|
|
100.000 |
% |
|
$ |
1,949,705 |
|
|
100.000 |
% |
|
$ |
367,445 |
|
|
18.8 |
% |
Gross profit |
|
|
75,498 |
|
|
3.258 |
% |
|
|
63,969 |
|
|
3.281 |
% |
|
$ |
11,529 |
|
|
18.0 |
% |
Selling, general, and
administrative expenses |
|
|
(23,841 |
) |
|
(1.029 |
)% |
|
|
(20,813 |
) |
|
(1.067 |
)% |
|
$ |
3,028 |
|
|
14.5 |
% |
Depreciation and amortization
expense |
|
|
(3,340 |
) |
|
(0.144 |
)% |
|
|
(3,260 |
) |
|
(0.167 |
)% |
|
$ |
80 |
|
|
2.5 |
% |
Interest income |
|
|
6,087 |
|
|
0.263 |
% |
|
|
4,984 |
|
|
0.256 |
% |
|
$ |
1,103 |
|
|
22.1 |
% |
Interest expense |
|
|
(9,237 |
) |
|
(0.399 |
)% |
|
|
(7,236 |
) |
|
(0.371 |
)% |
|
$ |
2,001 |
|
|
27.7 |
% |
Earnings (losses) from equity
method investments |
|
|
(70 |
) |
|
(0.003 |
)% |
|
|
4,669 |
|
|
0.239 |
% |
|
$ |
(4,739 |
) |
|
(101.5 |
%) |
Other income, net |
|
|
641 |
|
|
0.028 |
% |
|
|
833 |
|
|
0.043 |
% |
|
$ |
(192 |
) |
|
(23.0 |
%) |
Unrealized gains on foreign
exchange |
|
|
35 |
|
|
0.002 |
% |
|
|
1 |
|
|
0.000 |
% |
|
$ |
34 |
|
|
N/M |
|
Net income before provision for
income taxes |
|
|
45,773 |
|
|
1.975 |
% |
|
|
43,147 |
|
|
2.213 |
% |
|
$ |
2,626 |
|
|
6.1 |
% |
Income tax expense |
|
|
(9,775 |
) |
|
(0.422 |
)% |
|
|
(9,550 |
) |
|
(0.490 |
)% |
|
$ |
225 |
|
|
2.4 |
% |
Net income |
|
|
35,998 |
|
|
1.554 |
% |
|
|
33,597 |
|
|
1.723 |
% |
|
$ |
2,401 |
|
|
7.1 |
% |
Net income attributable to non-controlling interests |
|
|
78 |
|
|
0.003 |
% |
|
|
116 |
|
|
0.006 |
% |
|
$ |
(38 |
) |
|
(32.8 |
%) |
Net income attributable to the
Company |
|
$ |
35,920 |
|
|
1.550 |
% |
|
$ |
33,481 |
|
|
1.717 |
% |
|
$ |
2,439 |
|
|
7.3 |
% |
Basic and diluted net
income per share attributable to A-Mark
Precious Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.53 |
|
|
|
|
|
$ |
1.43 |
|
|
|
|
|
$ |
0.10 |
|
|
7.0 |
% |
Diluted |
|
$ |
1.46 |
|
|
|
|
|
$ |
1.35 |
|
|
|
|
|
$ |
0.11 |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overview of Results of Operations for the Nine months
Ended March 31, 2023 and 2022
Consolidated Results of
Operations
The operating
results for the nine months ended March 31, 2023, and 2022 were as
follows:
in thousands, except per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31, |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
|
$ |
|
|
% of revenue |
|
|
$ |
|
|
% of revenue |
|
|
$ |
|
|
% |
|
Revenues |
|
$ |
6,167,206 |
|
|
100.000 |
% |
|
$ |
6,069,450 |
|
|
100.000 |
% |
|
$ |
97,756 |
|
|
1.6 |
% |
Gross profit |
|
|
216,059 |
|
|
3.503 |
% |
|
|
194,015 |
|
|
3.197 |
% |
|
$ |
22,044 |
|
|
11.4 |
% |
Selling, general, and
administrative expenses |
|
|
(62,438 |
) |
|
(1.012 |
%) |
|
|
(55,884 |
) |
|
(0.921 |
%) |
|
$ |
6,554 |
|
|
11.7 |
% |
Depreciation and amortization
expense |
|
|
(9,784 |
) |
|
(0.159 |
%) |
|
|
(24,077 |
) |
|
(0.397 |
%) |
|
$ |
(14,293 |
) |
|
(59.4 |
%) |
Interest income |
|
|
16,167 |
|
|
0.262 |
% |
|
|
16,125 |
|
|
0.266 |
% |
|
$ |
42 |
|
|
0.3 |
% |
Interest expense |
|
|
(22,603 |
) |
|
(0.367 |
%) |
|
|
(16,297 |
) |
|
(0.269 |
%) |
|
$ |
6,306 |
|
|
38.7 |
% |
Earnings from equity method
investments |
|
|
7,276 |
|
|
0.118 |
% |
|
|
4,317 |
|
|
0.071 |
% |
|
$ |
2,959 |
|
|
68.5 |
% |
Other income, net |
|
|
2,001 |
|
|
0.032 |
% |
|
|
1,335 |
|
|
0.022 |
% |
|
$ |
666 |
|
|
49.9 |
% |
Unrealized gains (losses) on
foreign exchange |
|
|
250 |
|
|
0.004 |
% |
|
|
(128 |
) |
|
(0.002 |
%) |
|
$ |
378 |
|
|
295.3 |
% |
Net income before provision for
income taxes |
|
|
146,928 |
|
|
2.382 |
% |
|
|
119,406 |
|
|
1.967 |
% |
|
$ |
27,522 |
|
|
23.0 |
% |
Income tax expense |
|
|
(32,096 |
) |
|
(0.520 |
%) |
|
|
(23,797 |
) |
|
(0.392 |
%) |
|
$ |
8,299 |
|
|
34.9 |
% |
Net income |
|
|
114,832 |
|
|
1.862 |
% |
|
|
95,609 |
|
|
1.575 |
% |
|
$ |
19,223 |
|
|
20.1 |
% |
Net income attributable to noncontrolling interest |
|
|
306 |
|
|
0.005 |
% |
|
|
409 |
|
|
0.007 |
% |
|
$ |
(103 |
) |
|
(25.2 |
%) |
Net income attributable to the
Company |
|
$ |
114,526 |
|
|
1.857 |
% |
|
$ |
95,200 |
|
|
1.569 |
% |
|
$ |
19,326 |
|
|
20.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per share attributable to A-Mark
Precious Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.89 |
|
|
|
|
|
$ |
4.19 |
|
|
|
|
|
$ |
0.70 |
|
|
16.7 |
% |
Diluted |
|
$ |
4.64 |
|
|
|
|
|
$ |
3.92 |
|
|
|
|
|
$ |
0.72 |
|
|
18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP to Non-GAAP Measures for the
Three Months Ended March 31, 2023 and 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 March 31, 2023 and 2022 follows:
in
thousands |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
% |
|
Net income before provision for income taxes |
|
$ |
45,773 |
|
|
$ |
45,921 |
|
|
$ |
(148 |
) |
|
(0.3 |
%) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
38 |
|
|
|
836 |
|
|
$ |
(798 |
) |
|
(95.5 |
%) |
Amortization of acquired intangibles |
|
|
2,719 |
|
|
|
7,188 |
|
|
$ |
(4,469 |
) |
|
(62.2 |
%) |
Depreciation expense |
|
|
621 |
|
|
|
360 |
|
|
$ |
261 |
|
|
72.5 |
% |
Adjusted net income before
provision for income taxes (non-GAAP) |
|
$ |
49,151 |
|
|
$ |
54,305 |
|
|
$ |
(5,154 |
) |
|
(9.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net income to EBITDA, and operating cash
flows to EBITDA for the three months ended March 31, 2023, and 2022
follows:
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
% |
|
Net income |
|
$ |
35,998 |
|
|
$ |
37,546 |
|
|
$ |
(1,548 |
) |
|
(4.1 |
%) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(6,087 |
) |
|
|
(5,343 |
) |
|
$ |
744 |
|
|
13.9 |
% |
Interest expense |
|
|
9,237 |
|
|
|
5,429 |
|
|
$ |
3,808 |
|
|
70.1 |
% |
Amortization of acquired intangibles |
|
|
2,719 |
|
|
|
7,188 |
|
|
$ |
(4,469 |
) |
|
(62.2 |
%) |
Depreciation expense |
|
|
621 |
|
|
|
360 |
|
|
$ |
261 |
|
|
72.5 |
% |
Income tax expense |
|
|
9,775 |
|
|
|
8,375 |
|
|
$ |
1,400 |
|
|
16.7 |
% |
|
|
|
16,265 |
|
|
|
16,009 |
|
|
$ |
256 |
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
52,263 |
|
|
$ |
53,555 |
|
|
$ |
(1,292 |
) |
|
(2.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
|
$ |
91,767 |
|
|
$ |
(114,233 |
) |
|
$ |
206,000 |
|
|
180.3 |
% |
Changes in operating working capital |
|
|
(52,003 |
) |
|
|
157,488 |
|
|
$ |
(209,491 |
) |
|
(133.0 |
%) |
Interest expense |
|
|
9,237 |
|
|
|
5,429 |
|
|
$ |
3,808 |
|
|
70.1 |
% |
Interest income |
|
|
(6,087 |
) |
|
|
(5,343 |
) |
|
$ |
744 |
|
|
13.9 |
% |
Income tax expense |
|
|
9,775 |
|
|
|
8,375 |
|
|
$ |
1,400 |
|
|
16.7 |
% |
Earnings (losses) from equity method investments |
|
|
(70 |
) |
|
|
1,608 |
|
|
$ |
(1,678 |
) |
|
(104.4 |
%) |
Write-down of digital assets |
|
|
— |
|
|
|
(50 |
) |
|
$ |
50 |
|
|
100.0 |
% |
Share-based compensation |
|
|
(538 |
) |
|
|
(573 |
) |
|
$ |
(35 |
) |
|
(6.1 |
%) |
Interest added to principal of secured loans |
|
|
4 |
|
|
|
4 |
|
|
$ |
— |
|
|
— |
% |
Deferred income taxes |
|
|
666 |
|
|
|
1,380 |
|
|
$ |
(714 |
) |
|
(51.7 |
%) |
Amortization of loan cost |
|
|
(488 |
) |
|
|
(530 |
) |
|
$ |
(42 |
) |
|
(7.9 |
%) |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
52,263 |
|
|
$ |
53,555 |
|
|
$ |
(1,292 |
) |
|
(2.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP to Non-GAAP Measures for the
Three Months Ended March 31, 2023 and Three Months Ended December
31, 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 March 31, 2023 and December 31, 2022
follows:
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
Change |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
% |
|
Net income before provision for income taxes |
|
$ |
45,773 |
|
|
$ |
43,147 |
|
|
$ |
2,626 |
|
|
6.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
38 |
|
|
|
64 |
|
|
$ |
(26 |
) |
|
(40.6 |
%) |
Amortization of acquired intangibles |
|
|
2,719 |
|
|
|
2,763 |
|
|
$ |
(44 |
) |
|
(1.6 |
%) |
Depreciation expense |
|
|
621 |
|
|
|
497 |
|
|
$ |
124 |
|
|
24.9 |
% |
Adjusted net income before
provision for income taxes (non-GAAP) |
|
$ |
49,151 |
|
|
$ |
46,471 |
|
|
$ |
2,680 |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net income to EBITDA, and operating cash
flows to EBITDA for the three months ended March 31, 2023, and
December 31, 2022 follows:
in
thousands |
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
Change |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
% |
|
Net income |
|
$ |
35,998 |
|
|
$ |
33,597 |
|
|
$ |
2,401 |
|
|
7.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(6,087 |
) |
|
|
(4,984 |
) |
|
$ |
1,103 |
|
|
22.1 |
% |
Interest expense |
|
|
9,237 |
|
|
|
7,236 |
|
|
$ |
2,001 |
|
|
27.7 |
% |
Amortization of acquired intangibles |
|
|
2,719 |
|
|
|
2,763 |
|
|
$ |
(44 |
) |
|
(1.6 |
%) |
Depreciation expense |
|
|
621 |
|
|
|
497 |
|
|
$ |
124 |
|
|
24.9 |
% |
Income tax expense |
|
|
9,775 |
|
|
|
9,550 |
|
|
$ |
225 |
|
|
2.4 |
% |
|
|
|
16,265 |
|
|
|
15,062 |
|
|
$ |
1,203 |
|
|
8.0 |
% |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
52,263 |
|
|
$ |
48,659 |
|
|
$ |
3,604 |
|
|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
|
$ |
91,767 |
|
|
$ |
(328,140 |
) |
|
$ |
419,907 |
|
|
128.0 |
% |
Changes in operating working capital |
|
|
(52,003 |
) |
|
|
361,909 |
|
|
$ |
(413,912 |
) |
|
(114.4 |
%) |
Interest expense |
|
|
9,237 |
|
|
|
7,236 |
|
|
$ |
2,001 |
|
|
27.7 |
% |
Interest income |
|
|
(6,087 |
) |
|
|
(4,984 |
) |
|
$ |
1,103 |
|
|
22.1 |
% |
Income tax expense |
|
|
9,775 |
|
|
|
9,550 |
|
|
$ |
225 |
|
|
2.4 |
% |
Earnings (losses) from equity method investments |
|
|
(70 |
) |
|
|
4,669 |
|
|
$ |
(4,739 |
) |
|
(101.5 |
%) |
Write-down of digital assets |
|
|
- |
|
|
|
(12 |
) |
|
$ |
12 |
|
|
100.0 |
% |
Share-based compensation |
|
|
(538 |
) |
|
|
(534 |
) |
|
$ |
4 |
|
|
0.7 |
% |
Interest added to principal of secured loans |
|
|
4 |
|
|
|
2 |
|
|
$ |
2 |
|
|
100.0 |
% |
Deferred income taxes |
|
|
666 |
|
|
|
(451 |
) |
|
$ |
1,117 |
|
|
247.7 |
% |
Amortization of loan cost |
|
|
(488 |
) |
|
|
(586 |
) |
|
$ |
(98 |
) |
|
(16.7 |
%) |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
52,263 |
|
|
$ |
48,659 |
|
|
$ |
3,604 |
|
|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP to Non-GAAP Measures for the
Nine months Ended March 31, 2023 and 2022
A reconciliation of net income before provision for income taxes
to adjusted net income before provision for income taxes for the
nine months ended March 31, 2023 and 2022 follows:
in
thousands |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31, |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
% |
|
Net income before provision for income taxes |
|
$ |
146,928 |
|
|
$ |
119,406 |
|
|
$ |
27,522 |
|
|
23.0 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
184 |
|
|
|
889 |
|
|
$ |
(705 |
) |
|
(79.3 |
%) |
Amortization of acquired intangibles |
|
|
8,193 |
|
|
|
22,932 |
|
|
$ |
(14,739 |
) |
|
(64.3 |
%) |
Depreciation expense |
|
|
1,591 |
|
|
|
1,145 |
|
|
$ |
446 |
|
|
39.0 |
% |
Adjusted net income before
provision for income taxes (non-GAAP) |
|
$ |
156,896 |
|
|
$ |
144,372 |
|
|
$ |
12,524 |
|
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net income to EBITDA, and operating cash
flows to EBITDA for the nine months ended March 31, 2023, and 2022
follows:
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31, |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
% |
|
Net income |
|
$ |
114,832 |
|
|
$ |
95,609 |
|
|
$ |
19,223 |
|
|
20.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(16,167 |
) |
|
|
(16,125 |
) |
|
$ |
42 |
|
|
0.3 |
% |
Interest expense |
|
|
22,603 |
|
|
|
16,297 |
|
|
$ |
6,306 |
|
|
38.7 |
% |
Amortization of acquired intangibles |
|
|
8,193 |
|
|
|
22,932 |
|
|
$ |
(14,739 |
) |
|
(64.3 |
%) |
Depreciation expense |
|
|
1,591 |
|
|
|
1,145 |
|
|
$ |
446 |
|
|
39.0 |
% |
Income tax expense |
|
|
32,096 |
|
|
|
23,797 |
|
|
$ |
8,299 |
|
|
34.9 |
% |
|
|
|
48,316 |
|
|
|
48,046 |
|
|
$ |
270 |
|
|
0.6 |
% |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
163,148 |
|
|
$ |
143,655 |
|
|
$ |
19,493 |
|
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
|
$ |
43,249 |
|
|
$ |
(75,702 |
) |
|
$ |
118,951 |
|
|
157.1 |
% |
Changes in operating working capital |
|
|
77,628 |
|
|
|
190,262 |
|
|
$ |
(112,634 |
) |
|
(59.2 |
%) |
Interest expense |
|
|
22,603 |
|
|
|
16,297 |
|
|
$ |
6,306 |
|
|
38.7 |
% |
Interest income |
|
|
(16,167 |
) |
|
|
(16,125 |
) |
|
$ |
42 |
|
|
0.3 |
% |
Income tax expense |
|
|
32,096 |
|
|
|
23,797 |
|
|
$ |
8,299 |
|
|
34.9 |
% |
Dividends received from equity method investees |
|
|
(551 |
) |
|
|
— |
|
|
$ |
551 |
|
|
— |
% |
Earnings from equity method investments |
|
|
7,276 |
|
|
|
4,317 |
|
|
$ |
2,959 |
|
|
68.5 |
% |
Write-down of digital assets |
|
|
(12 |
) |
|
|
(50 |
) |
|
$ |
(38 |
) |
|
(76.0 |
%) |
Share-based compensation |
|
|
(1,607 |
) |
|
|
(1,628 |
) |
|
$ |
(21 |
) |
|
(1.3 |
%) |
Interest added to principal of secured loans |
|
|
10 |
|
|
|
13 |
|
|
$ |
(3 |
) |
|
(23.1 |
%) |
Deferred income taxes |
|
|
251 |
|
|
|
4,563 |
|
|
$ |
(4,312 |
) |
|
(94.5 |
%) |
Amortization of loan cost |
|
|
(1,628 |
) |
|
|
(2,089 |
) |
|
$ |
(461 |
) |
|
(22.1 |
%) |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
163,148 |
|
|
$ |
143,655 |
|
|
$ |
19,493 |
|
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Mark Precious Metals (NASDAQ:AMRK)
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