A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a
leading fully integrated precious metals platform, reported results
for the fiscal third quarter ended March 31, 2022.
Fiscal Third Quarter 2022 Financial
Highlights
- Revenues for the
three months ended March 31, 2022 increased 3% to $2.11 billion
from $2.05 billion for the three months ended March 31, 2021 and
increased 8% from $1.95 billion for the three months ended December
31, 2021
- Gross profit for
the three months ended March 31, 2022 increased 6% to $72.1 million
from $68.2 million for the three months ended March 31, 2021 and
increased 9% from $65.9 million for the three months ended December
31, 2021
- Gross profit
margin for the three months ended March 31, 2022 increased to 3.42%
of revenue, from 3.33% of revenue for the three months ended March
31, 2021, and increased from 3.39% of revenue in the three months
ended December 31, 2021
- Net income
attributable to the Company for the three months ended March 31,
2022 totaled $37.4 million or $3.06 per diluted share, as compared
to net income of $76.6 million or $8.84 per diluted share for the
three months ended March 31, 2021, and net income of $31.8 million
or $2.61 per diluted share for the three months ended December 31,
2021. Net income attributable to the company for the three months
ended March 31, 2021 included a $26.3 million remeasurement gain on
its pre-existing equity interest in JMB in connection with its
acquisition
- Adjusted net
income before provision for income taxes, depreciation,
amortization, acquisition costs and remeasurement gain (“Adjusted
net income before provision for income taxes”), a non-GAAP
financial measure, for the three months ended March 31, 2022
totaled $54.3 million, a decrease of $9.9 million compared to $64.2
million for the three months ended March 31, 2021, and an increase
of $5.3 million compared to $49.0 million for the three months
ended December 31, 2021
- Adjusted net
income before provision for income taxes per diluted share for the
three months ended March 31, 2022 was $4.45, as compared to $7.40
for the three months ended March 31, 2021, and $4.02 for the three
months ended December 31, 2021
- Gold ounces sold
in the three months ended March 31, 2022 decreased 6% to 727,000
ounces from 771,000 ounces for the three months ended March 31,
2021, and increased 15% from 631,000 ounces for the three months
ended December 31, 2021
- Silver ounces
sold in the three months ended March 31, 2022 increased 4% to 34.5
million ounces from 33.1 million ounces for the three months ended
March 31, 2021, and increased 8% from 32.0 million ounces for the
three months ended December 31, 2021
- As of March 31, 2022, the number of
secured loans increased 72% to 2,697 from 1,571 as of March 31,
2021, and increased 13% from 2,393 as of December 31, 2021
Fiscal Third Quarter 2022 Financial
Results
Revenues increased 3% to $2.11 billion from
$2.05 billion in the same year-ago quarter due to an increase in
silver ounces sold and higher average selling prices of gold,
partially offset by a decrease in gold ounces sold and lower
average selling prices of silver.
The Direct-to-Consumer segment contributed 28%
and 6% of the consolidated revenue in the fiscal third quarter of
2022 and 2021, respectively. The increase in revenue from the
Direct-to-Consumer segment is due primarily to the acquisition of
JM Bullion, Inc. (JMB) in March 2021. Revenue contributed by JMB
represented 26% of the consolidated revenues for the fiscal third
quarter of 2022 compared with 3% of consolidated revenues for the
same year-ago quarter.
The number of new customers in the
Direct-to-Consumer segment increased 721% to 108,400 from 13,200 in
the same year-ago quarter. The number of active customers increased
678% to 284,800 from 36,600 in the same year-ago quarter. The
number of total customers as of March 31, 2022 increased 20% to
1,968,200 from 1,633,800 in the prior year. The increases in the
customer-based metrics were primarily due to our acquisition of JMB
in March 2021.
Gross profit increased 6% to $72.1 million
(3.42% of revenue) from $68.2 million (3.33% of revenue) in the
same year-ago quarter. The increase in gross profit was due to
higher gross profits earned from the Direct-to-Consumer segment,
partially offset by lower gross profits earned from the Wholesale
Sales & Ancillary Services Segment. Gross profit
contributed by JMB represented 48% of the total consolidated gross
profit in the fiscal third quarter of 2022.
Selling, general and administrative expenses
increased 54% to $20.5 million from $13.3 million in the same
year-ago quarter. The increase in selling, general and
administrative expenses was primarily due to $6.5 million of
expenses incurred by JMB, increased compensation expense (including
performance-based accruals) of $1.4 million, offset by lower
consulting and professional fees of $0.9 million.
Depreciation and amortization expense increased
407% to $7.5 million from $1.5 million in the same year-ago
quarter. The increase in depreciation and amortization expense was
primarily due to a $6.1 million increase in amortization of
acquired intangibles related to JMB.
Interest income increased 13% to $5.3 million
from $4.7 million in the same year-ago quarter. The aggregate
increase in interest income was primarily due to higher interest
income earned by our Secured Lending segment partly offset by lower
other finance product income.
Interest expense increased 2% to $5.4 million
from $5.3 million in the same year-ago quarter. The increase in
interest expense was primarily driven by $0.2 million of loan
servicing fees, offset by a decrease of $0.1 million associated
with our Trading Credit Facility and Notes Payable (including
amortization of debt issuance costs).
Earnings from equity method investments
decreased 78% to $1.6 million from $7.4 million in the same
year-ago quarter. The net decrease of $5.8 million includes a $6.1
million decrease related to JMB, a former equity method investment
which is now reported by the Company as a wholly owned subsidiary,
offset by increased earnings of $0.3 million from our other equity
method investments.
Net income attributable to the Company totaled
$37.4 million or $3.06 per diluted share, compared to net income of
$76.6 million or $8.84 per diluted share in the same year-ago
quarter.
Net income attributable to the Company for the
three months ended March 31, 2021 included a $26.3 million
remeasurement gain on its pre-existing equity interest in JMB in
connection with its acquisition. Excluding the remeasurement gain,
net income attributable to the Company for the three months ended
March 31, 2021 was $50.3 million. Net income attributable to the
Company for the three months ended March 31, 2021 also included
$2.2 million of non-recurring costs associated with the acquisition
of JMB. Diluted weighted average shares outstanding for the three
months ended March 31, 2022 were 12.2 million compared to 8.7
million in the same year-ago quarter.
Adjusted net income before provision for income
taxes for the three months ended March 31, 2022 totaled $54.3
million, compared to $64.2 million in the same year-ago quarter.
The decrease is principally due to higher amortization of acquired
intangibles of $6.0 million, the $26.3 million remeasurement gain
in the prior year period, partly offset by lower net income before
provision for income taxes of $40.9 million.
Adjusted net income before provision for income
taxes per diluted share for the three months ended March 31, 2022
was $4.45, compared to $7.40 for the three months ended March 31,
2021, and $4.02 for the three months ended December 31, 2021.
Diluted weighted average shares outstanding for the three months
ended March 31, 2022 were 12.2 million compared to 8.7 million in
the same year-ago quarter.
Fiscal Nine Months 2022 Financial
Highlights
- Revenues for the nine months ended
March 31, 2022 increased 12% to $6.07 billion from $5.43 billion
for the nine months ended March 31, 2021
- Gross profit for the nine months
ended March 31, 2022 increased 58% to $194.0 million from $123.1
million for the nine months ended March 31, 2021
- Gross profit
margin for the nine months ended March 31, 2022 increased to 3.20%
of revenue, from 2.26% of revenue for the nine months ended March
31, 2021
- Net income
attributable to the Company for the nine months ended March 31,
2022 totaled $95.2 million or $7.84 per diluted share, as compared
to net income of $108.6 million or $13.61 per diluted share for the
nine months ended March 31, 2021. Net income attributable to the
Company for the nine months ended March 31, 2021 included a $26.3
million remeasurement gain on its pre-existing equity interest in
JMB in connection with its acquisition
- Adjusted net
income before provision for income taxes for the nine months ended
March 31, 2022 totaled $144.4 million, an increase of $36.8 million
compared to $107.6 million for the nine months ended March 31,
2021
- Adjusted net
income before provision for income taxes per diluted share for the
nine months ended March 31, 2022 was $11.89, as compared to $13.48
for the nine months ended March 31, 2021
- Gold ounces sold in the nine months
ended March 31, 2022 increased 3% to 2.03 million ounces from 1.97
million ounces for the nine months ended March 31, 2021
- Silver ounces sold in the nine
months ended March 31, 2022 increased 20% to 94.6 million ounces
from 78.6 million ounces for the nine months ended March 31,
2021
Fiscal Nine Months 2022 Financial
Results
Revenues increased 12% to $6.07 billion from
$5.43 billion in the same year-ago period due to an increase in
gold and silver ounces sold and higher average selling prices of
gold, partially offset by lower average selling prices of
silver.
The Direct-to-Consumer segment contributed 27%
and 4% of the consolidated revenue in the nine months ended March
31, 2022 and 2021, respectively. The increase in revenue from the
Direct-to-Consumer segment is due primarily to the acquisition of
JMB in March 2021. Revenue contributed by JMB represented 25% of
the consolidated revenues for the nine months ended March 31, 2022
compared with 1% of the consolidated revenues for the nine months
ended March 31, 2021.
The number of new customers in the
Direct-to-Consumer segment increased 1,121% to 182,000 from 14,900
in the same year-ago period. The number of active customers
increased 1,112% to 492,000 from 40,600 in the same year-ago
period. The number of total customers as of March 31, 2022
increased 20% to 1,968,200 from 1,633,800 in the prior year. The
increases in the customer-based metrics were primarily due to our
acquisition of JMB in March 2021.
Gross profit increased 58% to $194.0 million
(3.20% of revenue) from $123.1 million (2.26% of revenue) in the
same year-ago period. The increase in gross profit was due to
higher gross profits earned from the Direct-to-Consumer segment,
partially offset by lower gross profits earned from the Wholesale
Sales & Ancillary Services Segment. Gross profit
contributed by JMB represented 46% of the total gross profit for
the fiscal nine months ended March 31, 2022.
Selling, general and administrative expenses
increased 78% to $55.9 million from $31.3 million in the same
year-ago period. The increase in selling, general and
administrative expenses was primarily due to $19.4 million of
expenses incurred by JMB, increased compensation expense (including
performance-based accruals) of $2.7 million, increased consulting
and professional fees of $1.6 million, and higher insurance costs
of $0.9 million.
Depreciation and amortization expense increased
865% to $24.1 million from $2.5 million in the same year-ago
period. The increase was primarily due to $21.5 million of
amortization of acquired intangibles related to JMB.
Interest income increased 22% to $16.1 million
from $13.2 million in the same year-ago period. The aggregate
increase in interest income was primarily due to higher interest
income earned by our Secured Lending segment and higher other
finance product income.
Interest expense increased 11% to $16.3 million
from $14.7 million in the same year-ago period. The increase in
interest expense was primarily driven by $0.6 million associated
with our Trading Credit Facility and Notes Payable (including
amortization of debt issuance costs), $0.7 million related to
product financing arrangements, $0.6 million of loan servicing
fees, offset by a decrease of $0.3 million associated with
liabilities on borrowed metals.
Earnings from equity method investments
decreased 69% to $4.3 million from $13.9 million in the same
year-ago period. The net decrease of $9.6 million includes a $11.7
million decrease related to JMB, a former equity method investment
which is now reported by the Company as a wholly owned subsidiary,
offset by increased earnings of $2.1 million from our other equity
method investments.Net income attributable to the Company totaled
$95.2 million or $7.84 per diluted share, compared to net income of
$108.6 million or $13.61 per diluted share in the same year-ago
period. Net income attributable to the Company for the nine months
ended March 31, 2021 included a $26.3 million remeasurement gain on
its pre-existing equity interest in JMB in connection with its
acquisition. Excluding the remeasurement gain, net income
attributable to the Company for the nine months ended March 31,
2021 was $82.3 million. Net income attributable to the Company also
included $2.6 million of non-recurring costs associated with the
acquisition of JMB. Diluted weighted average shares outstanding for
the nine months ended March 31, 2022 were 12.1 million compared to
8.0 million in the same year-ago period.
Adjusted net income before provision for income
taxes totaled $144.4 million, compared to $107.6 million in the
same year-ago period. The increase is principally due to higher
amortization of acquired intangibles of $21.5 million, the $26.3
million remeasurement gain in the prior year period, partly offset
by lower net income before provision for income taxes of $9.4
million.
Adjusted net income before provision for income
taxes per diluted share for the nine months ended March 31, 2022
was $11.89, as compared to $13.48 for the nine months ended March
31, 2021. Diluted weighted average shares outstanding for the nine
months ended March 31, 2022 were 12.1 million compared to 8.0
million in the same year-ago period.
Management
Commentary
“Our third quarter results again demonstrate the
strength of our fully integrated precious metals platform as we
grew revenue, gross profit and net income sequentially while
expanding our gross margin,” said A-Mark CEO Greg Roberts.
“Macroeconomic factors continue to provide strong tailwinds for our
business and we remain optimistic as we finish out our final
quarter of our fiscal year.
“Gross profit in our Direct-to-Consumer segment increased 12%
sequentially quarter over quarter, while we continued to add new
customers to our customer base. We believe JMB’s recent launch of
CyberMetals, an innovative online platform where customers may
purchase fractional ounces of digital gold, silver, platinum, and
palladium in a range of denominations, will enhance and accelerate
our new precious metals customer acquisition strategy.
During JMB’s beta testing of the CyberMetals platform during the
quarter, we accumulated 745 new customers, processed 990 trades,
and ended the quarter with $0.3 million of assets under management.
We remain optimistic about the prospects of this new platform
following the full commercial launch in April 2022.
“Additionally, our minting business achieved a
new record level of production during the quarter, with 1 million
ounces produced in a week, and we are contemplating further
expansion opportunities for our minting operations given the
continued strong demand and performance.
“Last week we announced the signing of a
definitive agreement to increase our strategic investment in Silver
Gold Bull, Inc. (SGB), a Calgary based e-commerce precious metals
retailer, to 47.4%, which will expand A-Mark’s footprint in the
international market. We have participated in SGB’s success and
growth over the past several years and see continued growth
opportunities for our companies while leveraging A-Mark’s minting
and wholesale sources of supply through an extended supplier
agreement. The increased investment is expected to close in our
fiscal 2022 fourth quarter, subject to certain closing conditions.
We also continue to evaluate additional opportunities to expand our
Direct-to-Consumer segment while diversifying the geography of our
revenue in an accretive manner for stockholders.”
Stock Split in the Form of a Dividend
A-Mark also announced today that its board of
directors has declared a two-for-one split of A-Mark’s common stock
in the form of a stock dividend to make stock ownership more
accessible to employees and investors.
Each stockholder of record at the close of
business on May 23, 2022 will receive a dividend of one additional
share of common stock for every share held on the record date, to
be distributed after the close of trading on June 6, 2022. Trading
is expected to begin on a stock split-adjusted basis on June 7,
2022.
Conference Call
A-Mark will hold a conference call today (May 5,
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). A
question-and-answer session will follow management's
presentation.
To participate, please dial the appropriate
number at least five minutes prior to the start time and ask for
the A-Mark Precious Metals conference call.
U.S. dial-in number: 1-888-506-0062International
number: 1-973-528-0011Conference ID: 359365
The conference call will be broadcast
simultaneously and available for replay via the Investor Relations
section of A-Mark’s website at www.amark.com. If you have any
difficulty connecting with the conference call or webcast, please
contact A-Mark’s investor relations team at 1-949-574-3860.
A replay of the call will be available after
7:30 p.m. Eastern time on the same day through May 19, 2022.
Toll-free replay number:
1-877-481-4010International replay number: 1-919-882-2331Conference
ID: 45253
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 Silver Towne Mint, enable the company to offer
customers a wide range of proprietary coin and bar offerings and,
during periods of market volatility when the availability of silver
bullion from sovereign mints is often product constrained,
preferred product access.
A-Mark’s Direct-to-Consumer segment operates as an omni-channel
retailer of precious metals, providing access to a multitude of
products through its wholly owned subsidiaries, JM Bullion and
Goldline. JM Bullion is a leading e-commerce retailer of precious
metals and operates five separately branded, company-owned websites
targeting specific niches within the precious metals market:
JMBullion.com, ProvidentMetals.com, Silver.com, GoldPrice.org,
SilverPrice.org. JMB also owns CyberMetals, an online platform
where customers can purchase and sell fractional shares of digital
gold, silver and platinum 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 future
macroeconomic conditions and demand for precious metal products,
and the Company’s ability to effectively respond to changing
economic conditions. Future events, risks and uncertainties,
individually or in the aggregate, could cause actual results or
circumstances to differ materially from those expressed or implied
in these statements. Factors that could cause actual results to
differ include the following: the failure to execute the Company’s
growth strategy as planned; greater than anticipated costs incurred
to execute this strategy; changes in the current international
political climate which has favorably contributed to demand and
volatility in the precious metals markets; increased competition
for the Company’s higher margin services, which could depress
pricing; the failure of the Company’s business model to respond to
changes in the market environment as anticipated; changes in
consumer demand and preferences for precious metal products
generally; the inability to satisfy the conditions to the closing
of the Silver Gold Bull investment; the failure of Silver Gold Bull
to maintain its unique customer base or changes in the buying
preferences of this customer base; the failure otherwise to achieve
anticipated benefits of the investment; general risks of doing
business in the commodity markets; the effects of the COVID-19
pandemic and the eventual return to normalized business and
economic conditions; and the strategic, business, economic,
financial, political and governmental risks described in in the
Company’s public filings with the Securities and Exchange
Commission.The words "should," "believe," "estimate," "expect,"
"intend," "anticipate," "foresee," "plan" and similar expressions
and variations thereof identify certain of such forward-looking
statements, which speak only as of the dates on which they were
made. Additionally, any statements related to future improved
performance and estimates of revenues and earnings per share are
forward-looking statements. The Company undertakes no obligation to
publicly update or revise any forward-looking statements. Readers
are cautioned not to place undue reliance on these forward-looking
statements.
Use and Reconciliation of Non-GAAP
Financial Measures
In addition to presenting the Company’s
financial results determined in accordance with U.S. GAAP,
management believes the following non-GAAP financial measures are
useful in evaluating the Company’s operating performance. The
Company presents “adjusted net income before provision for income
taxes” and “adjusted net income before provision for income taxes
per diluted share” because management believes these assist
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
these financial measures 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. 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.
In the Company’s reconciliation from its
reported U.S. GAAP “net income before provision for taxes” and
“diluted net income per share” to its non-GAAP “adjusted net income
before provision for income taxes” and “adjusted net income before
provision for income taxes per diluted share,” the Company
eliminates the impact of the following four amounts: (i)
acquisition expenses; (ii) amortization expenses related to
intangible assets acquired; (iii) depreciation expense; and (iv)
remeasurement gain.
Management encourages investors and others to
review the Company’s financial information in its entirety and not
to rely on any single financial measure.
Company Contact:Steve Reiner, Executive Vice
President, Capital Markets & Investor RelationsA-Mark Precious
Metals, Inc.1-310-587-1410sreiner@amark.com
Investor Relations Contact:Matt Glover or Jeff
Grampp, CFAGateway Investor
Relations1-949-574-3860AMRK@gatewayIR.com
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS (amounts in thousands, except for share
data) (unaudited)
|
March 31, 2022 |
|
|
June 30, 2021 |
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash |
$ |
28,549 |
|
|
$ |
101,405 |
|
Receivables, net |
|
65,636 |
|
|
|
89,000 |
|
Derivative assets |
|
25,973 |
|
|
|
44,536 |
|
Secured loans receivable |
|
145,838 |
|
|
|
112,968 |
|
Precious metals held under financing arrangements |
|
87,450 |
|
|
|
154,742 |
|
Inventories: |
|
|
|
|
|
|
|
Inventories |
|
564,816 |
|
|
|
256,991 |
|
Restricted inventories |
|
199,447 |
|
|
|
201,028 |
|
|
|
764,263 |
|
|
|
458,019 |
|
Prepaid expenses and other assets |
|
8,188 |
|
|
|
3,557 |
|
Total current
assets |
|
1,125,897 |
|
|
|
964,227 |
|
Operating lease right of use assets |
|
6,774 |
|
|
|
5,702 |
|
Property, plant, and equipment, net |
|
9,542 |
|
|
|
8,609 |
|
Goodwill |
|
100,943 |
|
|
|
100,943 |
|
Intangibles, net |
|
70,716 |
|
|
|
93,633 |
|
Long-term investments |
|
32,511 |
|
|
|
18,467 |
|
Other long-term assets |
|
200 |
|
|
|
— |
|
Total
assets |
$ |
1,346,583 |
|
|
$ |
1,191,581 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Lines of credit |
$ |
255,000 |
|
|
$ |
185,000 |
|
Liabilities on borrowed metals |
|
67,824 |
|
|
|
91,866 |
|
Product financing arrangements |
|
199,447 |
|
|
|
201,028 |
|
Accounts payable and other payables |
|
26,175 |
|
|
|
5,935 |
|
Deferred revenue and other advances |
|
193,081 |
|
|
|
194,416 |
|
Derivative liabilities |
|
24,783 |
|
|
|
7,539 |
|
Accrued liabilities |
|
21,399 |
|
|
|
18,785 |
|
Income tax payable |
|
268 |
|
|
|
5,016 |
|
Total current
liabilities |
|
787,977 |
|
|
|
709,585 |
|
Notes payable |
|
93,859 |
|
|
|
93,249 |
|
Deferred tax liabilities |
|
14,951 |
|
|
|
19,514 |
|
Other liabilities |
|
6,304 |
|
|
|
5,291 |
|
Total
liabilities |
|
903,091 |
|
|
|
827,639 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 10,000,000 shares;
issued and outstanding: none as of March 31, 2022 and
June 30, 2021 |
|
— |
|
|
|
— |
|
Common stock, par value $0.01; 40,000,000 shares authorized;
11,514,010 and 11,229,657 shares issued and outstanding as of
March 31, 2022 and June 30, 2021, respectively |
|
116 |
|
|
|
113 |
|
Additional paid-in capital |
|
156,997 |
|
|
|
150,420 |
|
Retained earnings |
|
284,651 |
|
|
|
212,090 |
|
Total A-Mark Precious
Metals, Inc. stockholders’ equity |
|
441,764 |
|
|
|
362,623 |
|
Noncontrolling interests |
|
1,728 |
|
|
|
1,319 |
|
Total stockholders’
equity |
|
443,492 |
|
|
|
363,942 |
|
Total liabilities,
noncontrolling interests and stockholders’ equity |
$ |
1,346,583 |
|
|
$ |
1,191,581 |
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME(in thousands, except for share and per
share data) (unaudited)
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
March 31,2022 |
|
|
March 31,2021 |
|
|
March 31,2022 |
|
|
|
March 31,2021 |
|
Revenues |
$ |
2,109,115 |
|
|
$ |
2,049,489 |
|
|
$ |
6,069,450 |
|
|
|
$ |
5,434,349 |
|
Cost of sales |
|
2,037,032 |
|
|
|
1,981,318 |
|
|
|
5,875,435 |
|
|
|
|
5,311,282 |
|
Gross profit |
|
72,083 |
|
|
|
68,171 |
|
|
|
194,015 |
|
|
|
|
123,067 |
|
Selling, general, and
administrative expenses |
|
(20,494 |
) |
|
|
(13,295 |
) |
|
|
(55,884 |
) |
|
|
|
(31,328 |
) |
Depreciation and amortization
expense |
|
(7,548 |
) |
|
|
(1,488 |
) |
|
|
(24,077 |
) |
|
|
|
(2,494 |
) |
Interest income |
|
5,343 |
|
|
|
4,724 |
|
|
|
16,125 |
|
|
|
|
13,240 |
|
Interest expense |
|
(5,429 |
) |
|
|
(5,335 |
) |
|
|
(16,297 |
) |
|
|
|
(14,665 |
) |
Earnings from equity method
investments |
|
1,608 |
|
|
|
7,410 |
|
|
|
4,317 |
|
|
|
|
13,898 |
|
Other income, net |
|
493 |
|
|
|
340 |
|
|
|
1,335 |
|
|
|
|
904 |
|
Remeasurement gain on
pre-existing equity interest |
|
— |
|
|
|
26,306 |
|
|
|
— |
|
|
|
|
26,306 |
|
Unrealized losses on foreign
exchange |
|
(135 |
) |
|
|
(53 |
) |
|
|
(128 |
) |
|
|
|
(131 |
) |
Net income before provision for
income taxes |
|
45,921 |
|
|
|
86,780 |
|
|
|
119,406 |
|
|
|
|
128,797 |
|
Income tax expense |
|
(8,375 |
) |
|
|
(9,847 |
) |
|
|
(23,797 |
) |
|
|
|
(18,944 |
) |
Net income |
|
37,546 |
|
|
|
76,933 |
|
|
|
95,609 |
|
|
|
|
109,853 |
|
Net income attributable to noncontrolling interests |
|
164 |
|
|
|
308 |
|
|
|
409 |
|
|
|
|
1,221 |
|
Net income attributable to the
Company |
$ |
37,382 |
|
|
$ |
76,625 |
|
|
$ |
95,200 |
|
|
|
$ |
108,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per share attributableto A-Mark Precious
Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
3.27 |
|
|
$ |
9.54 |
|
|
$ |
8.38 |
|
|
|
$ |
14.67 |
|
Diluted |
$ |
3.06 |
|
|
$ |
8.84 |
|
|
$ |
7.84 |
|
|
|
$ |
13.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
11,429,800 |
|
|
|
8,028,900 |
|
|
|
11,356,400 |
|
|
|
|
7,403,900 |
|
Diluted |
|
12,212,900 |
|
|
|
8,668,300 |
|
|
|
12,137,600 |
|
|
|
|
7,980,700 |
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(amounts in thousands)
(unaudited)
Nine Months Ended March 31, |
|
2022 |
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
95,609 |
|
|
$ |
109,853 |
|
Adjustments to reconcile net income to net cash (used in) provided
by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
24,077 |
|
|
|
2,494 |
|
Amortization of loan cost |
|
|
2,089 |
|
|
|
1,661 |
|
Deferred income taxes |
|
|
(4,563 |
) |
|
|
(1,561 |
) |
Interest added to principal of secured loans |
|
|
(13 |
) |
|
|
(9 |
) |
Share-based compensation |
|
|
1,628 |
|
|
|
659 |
|
Write-down of digital assets |
|
|
50 |
|
|
|
— |
|
Remeasurement gain on pre-existing equity method investment |
|
|
— |
|
|
|
(26,306 |
) |
Earnings from equity method investments |
|
|
(4,317 |
) |
|
|
(13,898 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
|
23,364 |
|
|
|
3,507 |
|
Secured loans receivable |
|
|
747 |
|
|
|
3,303 |
|
Secured loans made to affiliates |
|
|
(1,989 |
) |
|
|
8,646 |
|
Derivative assets |
|
|
18,563 |
|
|
|
(18,342 |
) |
Precious metals held under financing arrangements |
|
|
67,292 |
|
|
|
17,589 |
|
Inventories |
|
|
(306,244 |
) |
|
|
(181,933 |
) |
Prepaid expenses and other assets |
|
|
(1,923 |
) |
|
|
(634 |
) |
Accounts payable and other payables |
|
|
20,240 |
|
|
|
(63,694 |
) |
Deferred revenue and other advances |
|
|
(1,335 |
) |
|
|
64,219 |
|
Derivative liabilities |
|
|
17,244 |
|
|
|
(13,113 |
) |
Liabilities on borrowed metals |
|
|
(24,042 |
) |
|
|
(58,471 |
) |
Accrued liabilities |
|
|
2,569 |
|
|
|
4,258 |
|
Income tax payable |
|
|
(4,748 |
) |
|
|
6,324 |
|
Net cash used in
operating activities |
|
|
(75,702 |
) |
|
|
(155,448 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Capital expenditures for property, plant, and equipment |
|
|
(2,106 |
) |
|
|
(1,351 |
) |
Purchase of long-term investments |
|
|
(6,750 |
) |
|
|
(6,763 |
) |
Secured loans receivable, net |
|
|
(31,615 |
) |
|
|
(48,958 |
) |
Purchase of digital assets |
|
|
(250 |
) |
|
|
— |
|
Other secured loans, net |
|
|
— |
|
|
|
1,000 |
|
Incremental acquisition of pre-existing equity method investment,
net of cash |
|
|
— |
|
|
|
(62,232 |
) |
Net cash used in
investing activities |
|
|
(40,721 |
) |
|
|
(118,304 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Product financing arrangements, net |
|
|
(1,581 |
) |
|
|
175,389 |
|
Dividends paid |
|
|
(22,639 |
) |
|
|
(21,191 |
) |
Borrowings and repayments under lines of credit, net |
|
|
70,000 |
|
|
|
30,000 |
|
Net proceeds from the issuance of common stock |
|
|
— |
|
|
|
75,315 |
|
Debt funding issuance costs |
|
|
(4,187 |
) |
|
|
(1,831 |
) |
Net settlement on issuance of common shares on exercise of
options |
|
|
1,974 |
|
|
|
2,511 |
|
Net cash provided by
financing activities |
|
|
43,567 |
|
|
|
260,193 |
|
Net decrease in cash,
cash equivalents, and restricted cash |
|
|
(72,856 |
) |
|
|
(13,559 |
) |
Cash, cash equivalents,
and restricted cash, beginning of period |
|
|
101,405 |
|
|
|
52,325 |
|
Cash, cash equivalents,
and restricted cash, end of period |
|
$ |
28,549 |
|
|
$ |
38,766 |
|
Overview of Results of Operations for the Three Months
Ended March 31, 2022 and 2021Condensed
Consolidated Results of Operations
The operating
results for the three months ended March 31, 2022 and 2021 are as
follows:
in
thousands, except per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
|
% ofrevenue |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Revenues |
$ |
2,109,115 |
|
|
100.000 |
% |
|
$ |
2,049,489 |
|
|
100.000 |
% |
|
$ |
59,626 |
|
|
2.9 |
% |
Gross profit |
|
72,083 |
|
|
3.418 |
% |
|
|
68,171 |
|
|
3.326 |
% |
|
$ |
3,912 |
|
|
5.7 |
% |
Selling, general, and
administrative expenses |
|
(20,494 |
) |
|
(0.972 |
%) |
|
|
(13,295 |
) |
|
(0.649 |
%) |
|
$ |
7,199 |
|
|
54.1 |
% |
Depreciation and amortization
expense |
|
(7,548 |
) |
|
(0.358 |
%) |
|
|
(1,488 |
) |
|
(0.073 |
%) |
|
$ |
6,060 |
|
|
407.3 |
% |
Interest income |
|
5,343 |
|
|
0.253 |
% |
|
|
4,724 |
|
|
0.230 |
% |
|
$ |
619 |
|
|
13.1 |
% |
Interest expense |
|
(5,429 |
) |
|
(0.257 |
%) |
|
|
(5,335 |
) |
|
(0.260 |
%) |
|
$ |
94 |
|
|
1.8 |
% |
Earnings from equity method
investments |
|
1,608 |
|
|
0.076 |
% |
|
|
7,410 |
|
|
0.362 |
% |
|
$ |
(5,802 |
) |
|
(78.3 |
%) |
Other income, net |
|
493 |
|
|
0.023 |
% |
|
|
340 |
|
|
0.017 |
% |
|
$ |
153 |
|
|
45.0 |
% |
Remeasurement gain on
pre-existing equity interest |
|
— |
|
|
— |
|
|
|
26,306 |
|
|
1.284 |
% |
|
$ |
(26,306 |
) |
|
(100.0 |
%) |
Unrealized losses on foreign
exchange |
|
(135 |
) |
|
(0.006 |
%) |
|
|
(53 |
) |
|
(0.003 |
%) |
|
$ |
82 |
|
|
154.7 |
% |
Net income before provision for
income taxes |
|
45,921 |
|
|
2.177 |
% |
|
|
86,780 |
|
|
4.234 |
% |
|
$ |
(40,859 |
) |
|
(47.1 |
%) |
Income tax expense |
|
(8,375 |
) |
|
(0.397 |
%) |
|
|
(9,847 |
) |
|
(0.480 |
%) |
|
$ |
(1,472 |
) |
|
(14.9 |
%) |
Net income |
|
37,546 |
|
|
1.780 |
% |
|
|
76,933 |
|
|
3.754 |
% |
|
$ |
(39,387 |
) |
|
(51.2 |
%) |
Net income attributable to noncontrolling interests |
|
164 |
|
|
0.008 |
% |
|
|
308 |
|
|
0.015 |
% |
|
$ |
(144 |
) |
|
(46.8 |
%) |
Net income attributable to the
Company |
$ |
37,382 |
|
|
1.772 |
% |
|
$ |
76,625 |
|
|
3.739 |
% |
|
$ |
(39,243 |
) |
|
(51.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted net income per share attributable toA-Mark
Precious Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
3.27 |
|
|
|
|
|
$ |
9.54 |
|
|
|
|
|
$ |
(6.27 |
) |
|
(65.7 |
%) |
Diluted |
$ |
3.06 |
|
|
|
|
|
$ |
8.84 |
|
|
|
|
|
$ |
(5.78 |
) |
|
(65.4 |
%) |
Overview of Results of Operations for the Three Months
Ended March 31, 2022 and December 31,
2021 Condensed Consolidated Results of
Operations
The operating
results for the three months ended March 31, 2022 and December 31,
2021 are as follows:
in
thousands, except per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
$ |
|
|
% |
|
|
$ |
|
|
% ofrevenue |
|
|
$ |
|
|
% ofrevenue |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Revenues |
$ |
2,109,115 |
|
|
100.000 |
% |
|
$ |
1,946,364 |
|
|
100.000 |
% |
|
$ |
162,751 |
|
|
8.4 |
% |
Gross profit |
|
72,083 |
|
|
3.418 |
% |
|
|
65,923 |
|
|
3.387 |
% |
|
$ |
6,160 |
|
|
9.3 |
% |
Selling, general, and
administrative expenses |
|
(20,494 |
) |
|
(0.972 |
)% |
|
|
(18,713 |
) |
|
(0.961 |
)% |
|
$ |
1,781 |
|
|
9.5 |
% |
Depreciation and amortization
expense |
|
(7,548 |
) |
|
(0.358 |
)% |
|
|
(8,258 |
) |
|
(0.424 |
)% |
|
$ |
(710 |
) |
|
(8.6 |
%) |
Interest income |
|
5,343 |
|
|
0.253 |
% |
|
|
5,251 |
|
|
0.270 |
% |
|
$ |
92 |
|
|
1.8 |
% |
Interest expense |
|
(5,429 |
) |
|
(0.257 |
)% |
|
|
(5,395 |
) |
|
(0.277 |
)% |
|
$ |
34 |
|
|
0.6 |
% |
Earnings from equity method
investments |
|
1,608 |
|
|
0.076 |
% |
|
|
1,220 |
|
|
0.063 |
% |
|
$ |
388 |
|
|
31.8 |
% |
Other income, net |
|
493 |
|
|
0.023 |
% |
|
|
433 |
|
|
0.022 |
% |
|
$ |
60 |
|
|
13.9 |
% |
Unrealized (losses) gains on
foreign exchange |
|
(135 |
) |
|
(0.006 |
)% |
|
|
231 |
|
|
0.012 |
% |
|
$ |
366 |
|
|
158.4 |
% |
Net income before provision for
income taxes |
|
45,921 |
|
|
2.177 |
% |
|
|
40,692 |
|
|
2.091 |
% |
|
$ |
5,229 |
|
|
12.9 |
% |
Income tax expense |
|
(8,375 |
) |
|
(0.397 |
)% |
|
|
(8,753 |
) |
|
(0.450 |
)% |
|
$ |
(378 |
) |
|
(4.3 |
%) |
Net income |
|
37,546 |
|
|
1.780 |
% |
|
|
31,939 |
|
|
1.641 |
% |
|
$ |
5,607 |
|
|
17.6 |
% |
Net income attributable to non-controlling interests |
|
164 |
|
|
0.008 |
% |
|
|
145 |
|
|
0.007 |
% |
|
$ |
19 |
|
|
13.1 |
% |
Net income attributable to the
Company |
$ |
37,382 |
|
|
1.772 |
% |
|
$ |
31,794 |
|
|
1.634 |
% |
|
$ |
5,588 |
|
|
17.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per share attributable toA-Mark Precious
Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
3.27 |
|
|
|
|
|
$ |
2.79 |
|
|
|
|
|
$ |
0.48 |
|
|
17.2 |
% |
Diluted |
$ |
3.06 |
|
|
|
|
|
$ |
2.61 |
|
|
|
|
|
$ |
0.45 |
|
|
17.2 |
% |
Overview of Results of Operations for the Nine Months
Ended March 31, 2022 and 2021 Condensed
Consolidated Results of Operations
The operating
results for the nine months ended March 31, 2022 and 2021 are as
follows:
in
thousands, except per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31, |
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
|
$ |
|
|
% of revenue |
|
|
$ |
|
|
% of revenue |
|
|
Increase/ (decrease) |
|
|
Increase/ (decrease) |
|
Revenues |
$ |
6,069,450 |
|
|
100.000 |
% |
|
$ |
5,434,349 |
|
|
100.000 |
% |
|
$ |
635,101 |
|
|
11.7 |
% |
Gross profit |
|
194,015 |
|
|
3.197 |
% |
|
|
123,067 |
|
|
2.265 |
% |
|
$ |
70,948 |
|
|
57.6 |
% |
Selling, general, and
administrative expenses |
|
(55,884 |
) |
|
(0.921 |
%) |
|
|
(31,328 |
) |
|
(0.576 |
%) |
|
$ |
24,556 |
|
|
78.4 |
% |
Depreciation and amortization
expense |
|
(24,077 |
) |
|
(0.397 |
%) |
|
|
(2,494 |
) |
|
(0.046 |
%) |
|
$ |
21,583 |
|
|
865.4 |
% |
Interest income |
|
16,125 |
|
|
0.266 |
% |
|
|
13,240 |
|
|
0.244 |
% |
|
$ |
2,885 |
|
|
21.8 |
% |
Interest expense |
|
(16,297 |
) |
|
(0.269 |
%) |
|
|
(14,665 |
) |
|
(0.270 |
%) |
|
$ |
1,632 |
|
|
11.1 |
% |
Earnings from equity method
investments |
|
4,317 |
|
|
0.071 |
% |
|
|
13,898 |
|
|
0.256 |
% |
|
$ |
(9,581 |
) |
|
(68.9 |
%) |
Other income, net |
|
1,335 |
|
|
0.022 |
% |
|
|
904 |
|
|
0.017 |
% |
|
$ |
431 |
|
|
47.7 |
% |
Remeasurement gain on
pre-existing equity interest |
|
— |
|
|
— |
|
|
|
26,306 |
|
|
0.484 |
% |
|
$ |
(26,306 |
) |
|
(100.0 |
%) |
Unrealized losses on foreign
exchange |
|
(128 |
) |
|
(0.002 |
%) |
|
|
(131 |
) |
|
(0.002 |
%) |
|
$ |
(3 |
) |
|
(2.3 |
%) |
Net income before provision for
income taxes |
|
119,406 |
|
|
1.967 |
% |
|
|
128,797 |
|
|
2.370 |
% |
|
$ |
(9,391 |
) |
|
(7.3 |
%) |
Income tax expense |
|
(23,797 |
) |
|
(0.392 |
%) |
|
|
(18,944 |
) |
|
(0.349 |
%) |
|
$ |
4,853 |
|
|
25.6 |
% |
Net income |
|
95,609 |
|
|
1.575 |
% |
|
|
109,853 |
|
|
2.021 |
% |
|
$ |
(14,244 |
) |
|
(13.0 |
%) |
Net income attributable to noncontrolling interests |
|
409 |
|
|
0.007 |
% |
|
|
1,221 |
|
|
0.022 |
% |
|
$ |
(812 |
) |
|
(66.5 |
%) |
Net income attributable to the
Company |
$ |
95,200 |
|
|
1.569 |
% |
|
$ |
108,632 |
|
|
1.999 |
% |
|
$ |
(13,432 |
) |
|
(12.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted net income per share attributable toA-Mark
Precious Metals, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
8.38 |
|
|
|
|
|
$ |
14.67 |
|
|
|
|
|
$ |
(6.29 |
) |
|
(42.9 |
%) |
Diluted |
$ |
7.84 |
|
|
|
|
|
$ |
13.61 |
|
|
|
|
|
$ |
(5.77 |
) |
|
(42.4 |
%) |
Reconciliation of U.S. GAAP to Non-GAAP Financial
Measures for the Three Months Ended March 31, 2022 and
2021
A reconciliation of net income before provision for income taxes
and diluted net income per share to adjusted net income before
provision for income taxes and adjusted net income before provision
for income taxes per diluted share for the three months ended March
31, 2022 and 2021 follows:
in
thousands, except for share and per share data |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
|
$ |
|
|
$ |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Net income before provision for income taxes |
$ |
45,921 |
|
|
$ |
86,780 |
|
|
$ |
(40,859 |
) |
|
(47.1 |
%) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement gain on pre-existing equity interest |
|
— |
|
|
|
(26,306 |
) |
|
$ |
(26,306 |
) |
|
(100.0 |
%) |
Acquisition costs |
|
836 |
|
|
|
2,196 |
|
|
$ |
(1,360 |
) |
|
(61.9 |
%) |
Amortization of acquired intangibles |
|
7,188 |
|
|
|
1,140 |
|
|
$ |
6,048 |
|
|
530.5 |
% |
Depreciation expense |
|
360 |
|
|
|
348 |
|
|
$ |
12 |
|
|
3.4 |
% |
Adjusted net income before
provision for income taxes (non-GAAP) |
$ |
54,305 |
|
|
$ |
64,158 |
|
|
$ |
(9,853 |
) |
|
(15.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted
share reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
3.06 |
|
|
$ |
8.84 |
|
|
$ |
(5.78 |
) |
|
(65.4 |
%) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement gain on pre-existing equity interest |
|
— |
|
|
|
(3.03 |
) |
|
$ |
(3.03 |
) |
|
(100.0 |
%) |
Acquisition costs |
|
0.07 |
|
|
|
0.25 |
|
|
$ |
(0.18 |
) |
|
(72.0 |
%) |
Amortization of acquired intangibles |
|
0.59 |
|
|
|
0.13 |
|
|
$ |
0.46 |
|
|
353.8 |
% |
Depreciation expense |
|
0.03 |
|
|
|
0.04 |
|
|
$ |
(0.01 |
) |
|
(25.0 |
%) |
Income tax expense(1) |
|
0.69 |
|
|
|
1.13 |
|
|
$ |
(0.44 |
) |
|
(38.9 |
%) |
Net income attributable to noncontrolling interests |
|
0.01 |
|
|
|
0.04 |
|
|
$ |
(0.03 |
) |
|
(75.0 |
%) |
Adjusted net income before
provision for income taxes per diluted share (non-GAAP) |
$ |
4.45 |
|
|
$ |
7.40 |
|
|
$ |
(2.95 |
) |
|
(39.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
12,212,900 |
|
|
|
8,668,300 |
|
|
|
3,544,600 |
|
|
40.9 |
% |
Reconciliation of U.S. GAAP to Non-GAAP Financial
Measures for the Nine Months Ended March 31, 2022 and
2021
A reconciliation of net income before provision for income taxes
and diluted net income per share to adjusted net income before
provision for income taxes and adjusted net income before provision
for income taxes per diluted share for the nine months ended March
31, 2022 and 2021 follows:
in
thousands, except for share and per share data |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31, |
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
|
$ |
|
|
$ |
|
|
Increase/(decrease) |
|
|
Increase/(decrease) |
|
Net income before provision for income taxes |
$ |
119,406 |
|
|
$ |
128,797 |
|
|
$ |
(9,391 |
) |
|
(7.3 |
%) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement gain on pre-existing equity interest |
|
— |
|
|
|
(26,306 |
) |
|
$ |
(26,306 |
) |
|
(100.0 |
%) |
Acquisition costs |
|
889 |
|
|
|
2,576 |
|
|
$ |
(1,687 |
) |
|
(65.5 |
%) |
Amortization of acquired intangibles |
|
22,932 |
|
|
|
1,457 |
|
|
$ |
21,475 |
|
|
1,473.9 |
% |
Depreciation expense |
|
1,145 |
|
|
|
1,037 |
|
|
$ |
108 |
|
|
10.4 |
% |
Adjusted net income before
provision for income taxes (non-GAAP) |
$ |
144,372 |
|
|
$ |
107,561 |
|
|
$ |
36,811 |
|
|
34.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted
share reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
7.84 |
|
|
$ |
13.61 |
|
|
$ |
(5.77 |
) |
|
(42.4 |
%) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement gain on pre-existing equity interest |
|
— |
|
|
|
(3.30 |
) |
|
$ |
(3.30 |
) |
|
100.0 |
% |
Acquisition costs |
|
0.07 |
|
|
|
0.32 |
|
|
$ |
(0.25 |
) |
|
(78.1 |
%) |
Amortization of acquired intangibles |
|
1.89 |
|
|
|
0.19 |
|
|
$ |
1.70 |
|
|
894.7 |
% |
Depreciation expense |
|
0.09 |
|
|
|
0.13 |
|
|
$ |
(0.04 |
) |
|
(30.8 |
%) |
Income tax expense(1) |
|
1.97 |
|
|
|
2.38 |
|
|
$ |
(0.41 |
) |
|
(17.2 |
%) |
Net income attributable to noncontrolling interests |
|
0.03 |
|
|
|
0.15 |
|
|
$ |
(0.12 |
) |
|
(80.0 |
%) |
Adjusted net income before provision for income taxes per diluted
share (non-GAAP) |
$ |
11.89 |
|
|
$ |
13.48 |
|
|
$ |
(1.59 |
) |
|
(11.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
12,137,600 |
|
|
|
7,980,700 |
|
|
|
4,156,900 |
|
|
52.1 |
% |
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