A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a
leading fully integrated precious metals platform, reported results
for the fiscal first quarter ended September 30, 2023.
Management Commentary
"Our first quarter results demonstrate the
strength and scalability of our fully-integrated platform to
generate profitable results even during slower market conditions,”
said A-Mark CEO Greg Roberts. “Despite the less favorable
macro-economic environment and the softened demand we experienced
compared to recent quarters, we delivered $0.77 per diluted share,
$30.4 million of non-GAAP EBITDA, and continued to grow our
Direct-to-Consumer customer base.
“During the first quarter we also repurchased a
total of 171,268 shares of our common stock for $5.0 million,
bringing our total treasury stock to $14.8 million as of September
30, 2023. We also amended our Trading Credit Facility during the
quarter resulting in increased liquidity and a reclassification of
our borrowings to long term.
“Looking ahead, we continue to actively evaluate
investment opportunities to broaden our geographic presence and
market reach. Our focus remains on strategic opportunities that
will further enhance our fully-integrated platform and will
generate value for our customers and stockholders. We
also continue to invest in our minting and logistics operations to
further expand capacity and drive efficiencies.
“Our commitment to generating stockholder value
remains steadfast, and we remain optimistic that our diversified
and proven business model will allow us to sustain profitability
and realize growth over the long term.”
Fiscal First Quarter 2024 Operational
Highlights
- Gold ounces sold in the three
months ended September 30, 2023 decreased 21% to 495,000 ounces
from 629,000 ounces for the three months ended September 30, 2022,
and decreased 39% from 814,000 ounces for the three months ended
June 30, 2023
- Silver ounces sold in the three
months ended September 30, 2023 decreased 15% to 30.4 million
ounces from 35.9 million ounces for the three months ended
September 30, 2022, and decreased 33% from 45.3 million ounces for
the three months ended June 30, 2023
- As of September 30, 2023, the
number of secured loans decreased 26% to 803 from 1,082 as of
September 30, 2022, and decreased 9% from 882 as of June 30,
2023
- Direct-to-Consumer new customers
for the three months ended September 30, 2023 decreased 20% to
39,100 from 49,000 for the three months ended September 30, 2022,
and decreased 57% from 90,400 for the three months ended June 30,
2023. For the three-month period ended June 30, 2023,
approximately 32% of the new customers were attributable to the
acquired customer list of BullionMax in June 2023
- Direct-to-Consumer active customers
for the three months ended September 30, 2023 decreased 24% to
106,400 from 139,900 for the three months ended September 30, 2022,
and decreased 20% from 133,800 for the three months ended June 30,
2023
- Direct-to-Consumer average order
value for the three months ended September 30, 2023 increased $107,
or 5% to $2,440 from $2,333 for the three months ended September
30, 2022, and decreased $848, or 26% from $3,288 for the three
months ended June 30, 2023
- JM Bullion’s average order value
for the three months ended September 30, 2023 increased $88, or 4%
to $2,239 from $2,151 for the three months ended September 30,
2022, and decreased $716, or 24% from $2,955 for the three months
ended June 30, 2023
|
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Three Months Ended September 30, |
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|
2023 |
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|
2022 |
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Selected
Operating Metrics: |
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|
|
Gold ounces sold(1) |
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|
495,000 |
|
|
|
|
629,000 |
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|
Silver ounces sold(2) |
|
|
30,378,000 |
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|
|
|
35,917,000 |
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|
Number of secured loans at period end(3) |
|
|
803 |
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|
|
|
1,082 |
|
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Direct-to-Consumer ("DTC") number of new customers(4) |
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|
39,100 |
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|
49,000 |
|
|
Direct-to-Consumer number of active customers(5) |
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|
106,400 |
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|
|
|
139,900 |
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|
Direct-to-Consumer number of total customers(6) |
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|
2,387,400 |
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|
|
|
2,062,000 |
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|
Direct-to-Consumer average order value ("AOV")(7) |
|
$ |
2,440 |
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|
$ |
2,333 |
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JM Bullion ("JMB") average order value(8) |
|
$ |
2,239 |
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|
$ |
2,151 |
|
|
CyberMetals number of new customers(9) |
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|
2,400 |
|
|
|
|
2,300 |
|
|
CyberMetals number of active customers(10) |
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|
2,500 |
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|
|
|
2,000 |
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CyberMetals number of total customers(11) |
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|
24,800 |
|
|
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|
8,200 |
|
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CyberMetals customer assets under management(12) |
|
$ |
6,000,000 |
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|
$ |
4,600,000 |
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(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
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
product orders delivered to JMB's customers during the period. |
(9) CyberMetals number of new customers represents the
number of customers that have registered or set up a new account or
have made a purchase for the first time during the period on the
CyberMetals platform. |
(10) CyberMetals number of active customers represents the number
of customers that have made a purchase during any month 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. |
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Three Months Ended |
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September 30, 2023 |
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June 30, 2023 |
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Selected
Operating Metrics: |
|
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|
|
|
|
|
|
Gold ounces sold(1) |
|
|
495,000 |
|
|
|
|
814,000 |
|
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Silver ounces sold(2) |
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|
30,378,000 |
|
|
|
|
45,273,000 |
|
|
Number of secured loans at period end(3) |
|
|
803 |
|
|
|
|
882 |
|
|
Direct-to-Consumer ("DTC") number of new customers(4) |
|
|
39,100 |
|
|
|
|
90,400 |
|
|
Direct-to-Consumer number of active customers(5) |
|
|
106,400 |
|
|
|
|
133,800 |
|
|
Direct-to-Consumer number of total customers(6) |
|
|
2,387,400 |
|
|
|
|
2,348,300 |
|
|
Direct-to-Consumer average order value ("AOV")(7) |
|
$ |
2,440 |
|
|
|
$ |
3,288 |
|
|
JM Bullion ("JMB") average order value(8) |
|
$ |
2,239 |
|
|
|
$ |
2,955 |
|
|
CyberMetals number of new customers(9) |
|
|
2,400 |
|
|
|
|
5,200 |
|
|
CyberMetals number of active customers(10) |
|
|
2,500 |
|
|
|
|
1,700 |
|
|
CyberMetals number of total customers(11) |
|
|
24,800 |
|
|
|
|
22,400 |
|
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CyberMetals customer assets under management(12) |
|
$ |
6,000,000 |
|
|
|
$ |
6,500,000 |
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(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
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
product orders delivered to JMB's customers during the period. |
(9) CyberMetals number of new customers represents the
number of customers that have registered or set up a new account or
have made a purchase for the first time during the period on the
CyberMetals platform. |
(10) CyberMetals number of active customers represents the number
of customers that have made a purchase during any month during the
period from the CyberMetals platform. |
(11) CyberMetals number of total customers represents the
aggregate number of customers that have registered or set up an
account or have made a purchase in the past from the CyberMetals
platform. |
(12) CyberMetals customer assets under management represents
the total value of assets managed by the Company on behalf of
CyberMetals customers. |
|
Fiscal First Quarter 2024 Financial
Highlights
- Revenues for the three months ended
September 30, 2023 increased 31% to $2.48 billion from $1.90
billion for the three months ended September 30, 2022 and decreased
20% from $3.12 billion for the three months ended June 30,
2023
- Gross profit for the three months
ended September 30, 2023 decreased 36% to $49.4 million from $76.6
million for the three months ended September 30, 2022 and decreased
37% from $78.6 million for the three months ended June 30,
2023
- Gross profit margin for the three
months ended September 30, 2023 decreased to 1.99% of revenue, from
4.03% of revenue for the three months ended September 30, 2022, and
declined from 2.52% of revenue in the three months ended June 30,
2023
- Net income attributable to the
Company for the three months ended September 30, 2023 decreased 58%
to $18.8 million from $45.1 million for the three months ended
September 30, 2022, and decreased 55% from $41.8 million for the
three months ended June 30, 2023
- Diluted earnings per share totaled
$0.77 for the three months ended September 30, 2023, a 58% decrease
compared to $1.83 for the three months ended September 30, 2022,
and decreased 55% from $1.71 for the three months ended June 30,
2023
- 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 September 30, 2023 decreased
56% to $26.8 million from $61.3 million for the three months ended
September 30, 2022, and decreased 55% from $59.1 million for the
three months ended June 30, 2023
- Earnings before interest, taxes,
depreciation and amortization (“EBITDA”), a non-GAAP liquidity
measure, for the three months ended September 30, 2023 decreased
51% to $30.4 million from $62.2 million for the three months ended
September 30, 2022, and decreased 51% from $61.8 million for the
three months ended June 30, 2023
|
|
Three Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
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|
(in thousands, except Earnings per Share) |
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Selected Key
Financial Statement Metrics: |
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|
|
|
|
Revenues |
|
$ |
2,484,618 |
|
|
|
$ |
1,900,351 |
|
|
Gross profit |
|
$ |
49,405 |
|
|
|
$ |
76,592 |
|
|
Depreciation and amortization expense |
|
$ |
(2,792 |
) |
|
|
$ |
(3,184 |
) |
|
Net income attributable to the Company |
|
$ |
18,827 |
|
|
|
$ |
45,125 |
|
|
|
|
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|
|
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Earnings per
Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.81 |
|
|
|
$ |
1.93 |
|
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Diluted |
|
$ |
0.77 |
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|
$ |
1.83 |
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Non-GAAP
Measures(1): |
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|
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Adjusted net income before provision for income taxes |
|
$ |
26,779 |
|
|
|
$ |
61,274 |
|
|
EBITDA |
|
$ |
30,448 |
|
|
|
$ |
62,226 |
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of U.S. GAAP to Non-GAAP Measures on pages
17-18 |
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Three Months Ended |
|
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
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|
(in thousands, except Earnings per Share) |
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Selected Key
Financial Statement Metrics: |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
2,484,618 |
|
|
|
$ |
3,119,355 |
|
|
Gross profit |
|
$ |
49,405 |
|
|
|
$ |
78,610 |
|
|
Depreciation and amortization expense |
|
$ |
(2,792 |
) |
|
|
$ |
(2,741 |
) |
|
Net income attributable to the Company |
|
$ |
18,827 |
|
|
|
$ |
41,834 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.81 |
|
|
|
$ |
1.80 |
|
|
Diluted |
|
$ |
0.77 |
|
|
|
$ |
1.71 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
Adjusted net income before provision for income taxes |
|
$ |
26,779 |
|
|
|
$ |
59,084 |
|
|
EBITDA |
|
$ |
30,448 |
|
|
|
$ |
61,844 |
|
|
|
|
|
|
|
|
|
|
|
(1)
See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages
17-18 |
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Fiscal First Quarter 2024 Financial
Summary
Revenues increased 31% to $2.48 billion from
$1.90 billion in the same year-ago quarter. Excluding an increase
of $660.1 million of forward sales, revenues decreased $75.8
million or 5%, which was due to a decrease in gold and silver
ounces sold, partially offset by higher average selling prices of
gold and silver.
The Direct-to-Consumer segment contributed 13%
and 23% of the consolidated revenue in the fiscal first quarters of
2024 and 2023, respectively. JMB’s revenue represented 12% of the
consolidated revenues for the fiscal first quarter of 2024 compared
with 20% for the prior year fiscal first quarter.
Gross profit decreased 36% to $49.4 million
(1.99% of revenue) from $76.6 million (4.03% of revenue) in the
same year-ago quarter. The decrease in gross profit was due to
lower gross profits earned from both the Wholesale Sales &
Ancillary Services and Direct-to-Consumer segments. The
Direct-to-Consumer segment contributed 43% and 55% of the
consolidated gross profit in the fiscal first quarters of 2024 and
2023, respectively. Gross profit contributed by JMB represented 36%
of the consolidated gross profit in the fiscal first quarter of
2024 and 48% of the consolidated gross profit for the prior year
fiscal first quarter.
Selling, general and administrative expenses
increased 23% to $21.8 million from $17.8 million in the same
year-ago quarter. The change was primarily due to an increase in
consulting and professional fees of $2.0 million, an increase in
compensation expense (including performance-based accruals) of $1.2
million, higher advertising costs of $0.4 million, an increase in
insurance costs of $0.3 million, and an increase in information
technology costs of $0.2 million.
Depreciation and amortization expense decreased
12% to $2.8 million from $3.2 million in the same year-ago
quarter. The change was primarily due to a $0.5 million
decrease in JMB’s intangible asset amortization expense.
Interest income increased 20% to $6.1 million
from $5.1 million in the same year-ago quarter. The aggregate
increase in interest income was primarily due to an increase in
other finance product income of $0.7 million and an increase in
interest income earned by our Secured Lending segment of $0.3
million.
Interest expense increased 60% to $9.8 million
from $6.1 million in the same year-ago quarter. The increase in
interest expense was primarily due to an increase of $3.2 million
associated with our Trading Credit Facility (due to an increase in
interest rates as well as increased borrowings) and the AMCF Notes
(including amortization of debt issuance costs), as well as an
increase of $0.5 million related to product financing
arrangements.
Earnings from equity method investments
increased 1% to $2.71 million from $2.68 million in the same
year-ago quarter.
Net income attributable to the Company totaled
$18.8 million or $0.77 per diluted share, compared to net income of
$45.1 million or $1.83 per diluted share in the same year-ago
quarter.
Adjusted net income before provision for income
taxes for the three months ended September 30, 2023 totaled $26.8
million, a decrease of $34.5 million or 56% compared to $61.3
million in the same year-ago quarter. The decrease is principally
due to lower net income before provision for income taxes.
EBITDA for the three months ended September 30,
2023 totaled $30.4 million, a decrease of $31.8 million or 51%
compared to $62.2 million in the same year-ago quarter. The net
decrease was principally due to lower net income of $26.3 million,
lower income tax expense of $7.8 million, higher interest income of
$1.0 million, and higher interest expense of $3.7 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 October 24, 2023 to
stockholders of record as of October 10, 2023. It is expected that
the next quarterly dividend will be paid in January 2024. The
declaration of regular cash dividends in the future is subject to
the determination each quarter by the Board of Directors, based on
a number of factors, including the Company’s financial performance,
available cash resources, cash requirements and alternative uses of
cash and applicable bank covenants.
Conference Call
A-Mark will hold a conference call today
(November 7, 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/2867/49261U.S.
dial-in number: 1-888-506-0062International number:
1-973-528-0011Access Code: 704909
The conference call will be webcast
simultaneously and available for replay via the Investor Relations
section of A-Mark’s website at www.amark.com. If you have any
difficulty connecting with the conference call or webcast, please
contact A-Mark’s investor relations team at 1-949-574-3860.
A replay of the call will be available after
7:30 p.m. Eastern time through November 21, 2023.
Toll-free replay number:
1-877-481-4010International replay number: 1-919-882-2331Replay
Passcode: 49261
About A-Mark Precious
Metals
Founded in 1965, A-Mark Precious Metals, Inc. is
a leading fully integrated precious metals platform that offers an
array of gold, silver, platinum, palladium, and copper bullion,
numismatic coins, and related products to wholesale and retail
customers via a portfolio of channels. The company conducts its
operations through three complementary segments: Wholesale Sales
& Ancillary Services, Direct-to-Consumer, and Secured Lending.
The company’s global customer base spans sovereign and private
mints, manufacturers and fabricators, refiners, dealers, financial
institutions, industrial users, investors, collectors, 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 seven separately branded,
company-owned websites targeting specific niches within the
precious metals market: JMBullion.com, ProvidentMetals.com,
Silver.com, GoldPrice.org, SilverPrice.org, BGASC.com and
BullionMax.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 four additional direct-to-consumer
brands.
The company operates its Secured Lending segment
through its wholly owned subsidiary, Collateral Finance Corporation
(CFC). 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.
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.
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 StatementsStatements in this press release
that relate to future plans, objectives, expectations, performance,
events and the like are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and
the Securities Exchange Act of 1934. These include statements
regarding expectations with respect to future profitability and
growth, dividend declarations, 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
historically 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 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
MeasuresIn addition to presenting the Company’s financial
results determined in accordance with U.S. GAAP, management
believes the following non-GAAP measures are useful in evaluating
the Company’s operating performance: “adjusted net income before
provision for income taxes” and “earnings before interest, taxes,
depreciation and amortization” (“EBITDA”). Management believes the
“adjusted net income before provision for income taxes” non-GAAP
financial 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 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
of our business operations before investing activities, interest,
and income taxes with other publicly traded companies. Non-GAAP
measures do not have standardized definitions and should be
considered in addition to, and not as a substitute for or superior
to, the comparable measures prepared in accordance with U.S. GAAP,
and should be read in conjunction with the financial statements
included in the Company’s Quarterly Report on Form 10-Q to be filed
with the SEC. Management encourages investors and others to review
the Company’s financial information in its entirety and not to rely
on any single financial or liquidity measure.
In the Company’s reconciliation from its
reported U.S. GAAP “net income before provision for income taxes”
to its non-GAAP “adjusted net income before provision for income
taxes”, the Company eliminates the impact of the following three
amounts: (i) acquisition expenses; (ii) amortization expenses
related to intangible assets acquired; and (iii) depreciation
expense. The Company’s reconciliations from its reported U.S.
GAAP “net income before provision for income taxes” to its non-GAAP
“adjusted net income before provision for income taxes”, and “net
income” and “net cash provided by (used in) operating activities”
to its non-GAAP “EBITDA” are provided below and are also included
in the Company’s Quarterly Report on Form 10-Q to be filed with the
SEC for the quarterly period ended September 30, 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 and
Matthew HauschGateway Group, Inc.
1-949-574-3860AMRK@gateway-grp.com
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands, except for share
data) |
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
June 30, 2023 |
|
|
(unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash |
|
$ |
48,245 |
|
|
$ |
39,318 |
|
Receivables, net |
|
|
34,315 |
|
|
|
35,243 |
|
Derivative assets |
|
|
87,573 |
|
|
|
77,881 |
|
Secured loans receivable |
|
|
99,167 |
|
|
|
100,620 |
|
Precious metals held under financing arrangements |
|
|
19,279 |
|
|
|
25,530 |
|
Inventories: |
|
|
|
|
|
|
Inventories |
|
|
611,194 |
|
|
|
645,812 |
|
Restricted inventories |
|
|
389,615 |
|
|
|
335,831 |
|
|
|
|
1,000,809 |
|
|
|
981,643 |
|
Prepaid expenses and other assets |
|
|
5,535 |
|
|
|
6,956 |
|
Total current assets |
|
|
1,294,923 |
|
|
|
1,267,191 |
|
Operating lease right of use assets |
|
|
4,823 |
|
|
|
5,119 |
|
Property, plant, and equipment, net |
|
|
13,693 |
|
|
|
12,513 |
|
Goodwill |
|
|
100,943 |
|
|
|
100,943 |
|
Intangibles, net |
|
|
60,465 |
|
|
|
62,630 |
|
Long-term investments |
|
|
91,220 |
|
|
|
88,535 |
|
Other long-term assets |
|
|
13,170 |
|
|
|
8,640 |
|
Total assets |
|
$ |
1,579,237 |
|
|
$ |
1,545,571 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Lines of credit |
|
$ |
— |
|
|
$ |
235,000 |
|
Liabilities on borrowed metals |
|
|
21,727 |
|
|
|
21,642 |
|
Product financing arrangements |
|
|
389,615 |
|
|
|
335,831 |
|
Accounts payable and other payables |
|
|
8,800 |
|
|
|
25,465 |
|
Deferred revenue and other advances |
|
|
151,169 |
|
|
|
181,363 |
|
Derivative liabilities |
|
|
20,417 |
|
|
|
8,076 |
|
Accrued liabilities |
|
|
14,564 |
|
|
|
20,418 |
|
Income tax payable |
|
|
3,507 |
|
|
|
958 |
|
Notes payable |
|
|
95,179 |
|
|
|
95,308 |
|
Total current liabilities |
|
|
704,978 |
|
|
|
924,061 |
|
Lines of credit |
|
|
270,000 |
|
|
|
— |
|
Deferred tax liabilities |
|
|
16,735 |
|
|
|
16,677 |
|
Other liabilities |
|
|
4,439 |
|
|
|
4,440 |
|
Total liabilities |
|
|
996,152 |
|
|
|
945,178 |
|
Commitments and contingencies |
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 10,000,000 shares;
issued and outstanding: none as of September 30, 2023 or
June 30, 2023 |
|
|
— |
|
|
|
— |
|
Common stock, par value $0.01; 40,000,000 shares authorized;
23,842,677 and 23,672,122 shares issued and 23,335,674 and
23,336,387 shares outstanding as of September 30, 2023 and
June 30, 2023, respectively |
|
|
239 |
|
|
|
237 |
|
Treasury stock, 507,003 and 335,735 shares at cost as of
September 30, 2023 and June 30, 2023, respectively |
|
|
(14,778 |
) |
|
|
(9,762 |
) |
Additional paid-in capital |
|
|
170,357 |
|
|
|
169,034 |
|
Accumulated other comprehensive loss |
|
|
(838 |
) |
|
|
(1,025 |
) |
Retained earnings |
|
|
426,679 |
|
|
|
440,639 |
|
Total A-Mark Precious Metals, Inc. stockholders’
equity |
|
|
581,659 |
|
|
|
599,123 |
|
Noncontrolling interest |
|
|
1,426 |
|
|
|
1,270 |
|
Total stockholders’ equity |
|
|
583,085 |
|
|
|
600,393 |
|
Total liabilities, noncontrolling interest and
stockholders’ equity |
|
$ |
1,579,237 |
|
|
$ |
1,545,571 |
|
|
|
|
|
|
|
|
|
|
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME(in thousands, except for share and per
share data; unaudited) |
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
2023 |
|
2022 |
Revenues |
|
$ |
2,484,618 |
|
|
$ |
1,900,351 |
|
Cost of sales |
|
|
2,435,213 |
|
|
|
1,823,759 |
|
Gross profit |
|
|
49,405 |
|
|
|
76,592 |
|
Selling, general, and administrative expenses |
|
|
(21,845 |
) |
|
|
(17,784 |
) |
Depreciation and amortization expense |
|
|
(2,792 |
) |
|
|
(3,184 |
) |
Interest income |
|
|
6,102 |
|
|
|
5,096 |
|
Interest expense |
|
|
(9,823 |
) |
|
|
(6,130 |
) |
Earnings from equity method investments |
|
|
2,709 |
|
|
|
2,677 |
|
Other income, net |
|
|
273 |
|
|
|
527 |
|
Unrealized (losses) gains on foreign exchange |
|
|
(94 |
) |
|
|
214 |
|
Net income before provision for income taxes |
|
|
23,935 |
|
|
|
58,008 |
|
Income tax expense |
|
|
(4,952 |
) |
|
|
(12,771 |
) |
Net income |
|
|
18,983 |
|
|
|
45,237 |
|
Net income attributable to noncontrolling interest |
|
|
156 |
|
|
|
112 |
|
Net income attributable to the Company |
|
$ |
18,827 |
|
|
$ |
45,125 |
|
Basic and diluted net income per share attributable to
A-Mark Precious Metals, Inc.: |
|
|
|
|
|
|
Basic |
|
$ |
0.81 |
|
|
$ |
1.93 |
|
Diluted |
|
$ |
0.77 |
|
|
$ |
1.83 |
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
23,364,700 |
|
|
|
23,396,400 |
|
Diluted |
|
|
24,532,600 |
|
|
|
24,685,200 |
|
|
|
|
|
|
|
|
|
|
|
A-MARK PRECIOUS METALS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(in thousands; unaudited) |
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
2023 |
|
2022 |
Cash flows from operating
activities: |
|
|
|
|
|
|
Net income |
|
$ |
18,983 |
|
|
$ |
45,237 |
|
Adjustments to reconcile net income to net cash flows from
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,792 |
|
|
|
3,184 |
|
Amortization of loan cost |
|
|
522 |
|
|
|
554 |
|
Share-based compensation |
|
|
664 |
|
|
|
535 |
|
Earnings from equity method investments |
|
|
(2,709 |
) |
|
|
(2,677 |
) |
Dividends and distributions received from equity method
investees |
|
|
269 |
|
|
|
551 |
|
Other |
|
|
344 |
|
|
|
(40 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
Receivables, net |
|
|
928 |
|
|
|
(13,808 |
) |
Secured loans receivable |
|
|
— |
|
|
|
368 |
|
Derivative assets |
|
|
(9,692 |
) |
|
|
59,236 |
|
Precious metals held under financing arrangements |
|
|
6,251 |
|
|
|
30,439 |
|
Inventories |
|
|
(19,166 |
) |
|
|
115,522 |
|
Prepaid expenses and other assets |
|
|
(878 |
) |
|
|
(1,738 |
) |
Accounts payable and other payables |
|
|
(16,665 |
) |
|
|
22,447 |
|
Deferred revenue and other advances |
|
|
(30,194 |
) |
|
|
7,638 |
|
Derivative liabilities |
|
|
12,341 |
|
|
|
14,119 |
|
Liabilities on borrowed metals |
|
|
85 |
|
|
|
(3,508 |
) |
Accrued liabilities |
|
|
(10,686 |
) |
|
|
(8,282 |
) |
Income tax payable |
|
|
2,549 |
|
|
|
9,845 |
|
Net cash (used in)
provided by operating activities |
|
|
(44,262 |
) |
|
|
279,622 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
Capital expenditures for property, plant, and equipment |
|
|
(1,886 |
) |
|
|
(927 |
) |
Purchase of long-term investments |
|
|
— |
|
|
|
(500 |
) |
Secured loans receivable, net |
|
|
1,458 |
|
|
|
38,540 |
|
Net cash (used in)
provided by investing activities |
|
|
(428 |
) |
|
|
37,113 |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
Product financing arrangements, net |
|
|
53,784 |
|
|
|
(115,662 |
) |
Dividends paid |
|
|
(28,034 |
) |
|
|
(23,394 |
) |
Distributions paid to noncontrolling interest |
|
|
— |
|
|
|
(1,001 |
) |
Net borrowings and repayments under lines of credit |
|
|
35,000 |
|
|
|
(152,000 |
) |
Proceeds from issuance of related party note |
|
|
— |
|
|
|
3,887 |
|
Repayments on notes payable to related party |
|
|
(257 |
) |
|
|
— |
|
Repurchases of common stock |
|
|
(4,904 |
) |
|
|
— |
|
Debt funding issuance costs |
|
|
(2,625 |
) |
|
|
(170 |
) |
Proceeds from the exercise of share-based awards |
|
|
960 |
|
|
|
63 |
|
Payments for tax withholding related to net settlement of
share-based awards |
|
|
(307 |
) |
|
|
(1,606 |
) |
Net cash provided by
(used in) financing activities |
|
|
53,617 |
|
|
|
(289,883 |
) |
Net increase in
cash |
|
|
8,927 |
|
|
|
26,852 |
|
Cash, beginning of
period |
|
|
39,318 |
|
|
|
37,783 |
|
Cash, end of
period |
|
$ |
48,245 |
|
|
$ |
64,635 |
|
|
|
|
|
|
|
|
|
|
Overview of Results of Operations for the Three Months
Ended September 30, 2023 and 2022
Consolidated Results of
Operations
The operating results for the three months ended
September 30, 2023 and 2022 were as follows (in thousands,
except per share data):
Three Months Ended
September 30, |
|
2023 |
|
2022 |
|
Change |
|
|
$ |
|
% of revenue |
|
$ |
|
% of revenue |
|
$ |
|
% |
Revenues |
|
$ |
2,484,618 |
|
|
|
100.000 |
% |
|
$ |
1,900,351 |
|
|
|
100.000 |
% |
|
$ |
584,267 |
|
|
|
30.7 |
% |
Gross profit |
|
|
49,405 |
|
|
|
1.988 |
% |
|
|
76,592 |
|
|
|
4.030 |
% |
|
$ |
(27,187 |
) |
|
|
(35.5 |
%) |
Selling, general, and
administrative expenses |
|
|
(21,845 |
) |
|
|
(0.879 |
%) |
|
|
(17,784 |
) |
|
|
(0.936 |
%) |
|
$ |
4,061 |
|
|
|
22.8 |
% |
Depreciation and amortization
expense |
|
|
(2,792 |
) |
|
|
(0.112 |
%) |
|
|
(3,184 |
) |
|
|
(0.168 |
%) |
|
$ |
(392 |
) |
|
|
(12.3 |
%) |
Interest income |
|
|
6,102 |
|
|
|
0.246 |
% |
|
|
5,096 |
|
|
|
0.268 |
% |
|
$ |
1,006 |
|
|
|
19.7 |
% |
Interest expense |
|
|
(9,823 |
) |
|
|
(0.395 |
%) |
|
|
(6,130 |
) |
|
|
(0.323 |
%) |
|
$ |
3,693 |
|
|
|
60.2 |
% |
Earnings from equity method
investments |
|
|
2,709 |
|
|
|
0.109 |
% |
|
|
2,677 |
|
|
|
0.141 |
% |
|
$ |
32 |
|
|
|
1.2 |
% |
Other income, net |
|
|
273 |
|
|
|
0.011 |
% |
|
|
527 |
|
|
|
0.028 |
% |
|
$ |
(254 |
) |
|
|
(48.2 |
%) |
Unrealized (losses) gains on
foreign exchange |
|
|
(94 |
) |
|
|
(0.004 |
%) |
|
|
214 |
|
|
|
0.011 |
% |
|
$ |
(308 |
) |
|
|
(143.9 |
%) |
Net income before provision for
income taxes |
|
|
23,935 |
|
|
|
0.963 |
% |
|
|
58,008 |
|
|
|
3.052 |
% |
|
$ |
(34,073 |
) |
|
|
(58.7 |
%) |
Income tax expense |
|
|
(4,952 |
) |
|
|
(0.199 |
%) |
|
|
(12,771 |
) |
|
|
(0.672 |
%) |
|
$ |
(7,819 |
) |
|
|
(61.2 |
%) |
Net income |
|
|
18,983 |
|
|
|
0.764 |
% |
|
|
45,237 |
|
|
|
2.380 |
% |
|
$ |
(26,254 |
) |
|
|
(58.0 |
%) |
Net income attributable to noncontrolling interest |
|
|
156 |
|
|
|
0.006 |
% |
|
|
112 |
|
|
|
0.006 |
% |
|
$ |
44 |
|
|
|
39.3 |
% |
Net income attributable to the
Company |
|
$ |
18,827 |
|
|
|
0.758 |
% |
|
$ |
45,125 |
|
|
|
2.375 |
% |
|
$ |
(26,298 |
) |
|
|
(58.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per share attributable to A-Mark Precious Metals,
Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.81 |
|
|
|
|
|
$ |
1.93 |
|
|
|
|
|
$ |
(1.12 |
) |
|
|
(58.0 |
%) |
Diluted |
|
$ |
0.77 |
|
|
|
|
|
$ |
1.83 |
|
|
|
|
|
$ |
(1.06 |
) |
|
|
(57.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overview of Results of Operations for the Three Months
Ended September 30, 2023 and June 30, 2023
Consolidated Results of
Operations
The operating results for the three months ended
September 30, 2023 and June 30, 2023 were as follows (in
thousands, except per share data):
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
September 30, 2023 |
|
June 30, 2023 |
|
Change |
|
|
$ |
|
% ofrevenue |
|
$ |
|
% ofrevenue |
|
$ |
|
% |
Revenues |
|
$ |
2,484,618 |
|
|
|
100.000 |
% |
|
$ |
3,119,355 |
|
|
|
100.000 |
% |
|
$ |
(634,737 |
) |
|
|
(20.3 |
%) |
Gross profit |
|
|
49,405 |
|
|
|
1.988 |
% |
|
|
78,610 |
|
|
|
2.520 |
% |
|
$ |
(29,205 |
) |
|
|
(37.2 |
%) |
Selling, general, and
administrative expenses |
|
|
(21,845 |
) |
|
|
(0.879 |
%) |
|
|
(22,844 |
) |
|
|
(0.732 |
%) |
|
$ |
(999 |
) |
|
|
(4.4 |
%) |
Depreciation and amortization
expense |
|
|
(2,792 |
) |
|
|
(0.112 |
%) |
|
|
(2,741 |
) |
|
|
(0.088 |
%) |
|
$ |
51 |
|
|
|
1.9 |
% |
Interest income |
|
|
6,102 |
|
|
|
0.246 |
% |
|
|
6,064 |
|
|
|
0.194 |
% |
|
$ |
38 |
|
|
|
0.6 |
% |
Interest expense |
|
|
(9,823 |
) |
|
|
(0.395 |
%) |
|
|
(8,925 |
) |
|
|
(0.286 |
%) |
|
$ |
898 |
|
|
|
10.1 |
% |
Earnings from equity method
investments |
|
|
2,709 |
|
|
|
0.109 |
% |
|
|
5,300 |
|
|
|
0.170 |
% |
|
$ |
(2,591 |
) |
|
|
(48.9 |
%) |
Other income, net |
|
|
273 |
|
|
|
0.011 |
% |
|
|
662 |
|
|
|
0.021 |
% |
|
$ |
(389 |
) |
|
|
(58.8 |
%) |
Unrealized (losses) gains on
foreign exchange |
|
|
(94 |
) |
|
|
(0.004 |
%) |
|
|
116 |
|
|
|
0.004 |
% |
|
$ |
(210 |
) |
|
|
(181.0 |
%) |
Net income before provision for
income taxes |
|
|
23,935 |
|
|
|
0.963 |
% |
|
|
56,242 |
|
|
|
1.803 |
% |
|
$ |
(32,307 |
) |
|
|
(57.4 |
%) |
Income tax expense |
|
|
(4,952 |
) |
|
|
(0.199 |
%) |
|
|
(14,305 |
) |
|
|
(0.459 |
%) |
|
$ |
(9,353 |
) |
|
|
(65.4 |
%) |
Net income |
|
|
18,983 |
|
|
|
0.764 |
% |
|
|
41,937 |
|
|
|
1.344 |
% |
|
$ |
(22,954 |
) |
|
|
(54.7 |
%) |
Net income attributable to noncontrolling interest |
|
|
156 |
|
|
|
0.006 |
% |
|
|
103 |
|
|
|
0.003 |
% |
|
$ |
53 |
|
|
|
51.5 |
% |
Net income attributable to the
Company |
|
$ |
18,827 |
|
|
|
0.758 |
% |
|
$ |
41,834 |
|
|
|
1.341 |
% |
|
$ |
(23,007 |
) |
|
|
(55.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per share attributable to A-Mark Precious Metals,
Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.81 |
|
|
|
|
|
$ |
1.80 |
|
|
|
|
|
$ |
(0.99 |
) |
|
|
(55.0 |
%) |
Diluted |
|
$ |
0.77 |
|
|
|
|
|
$ |
1.71 |
|
|
|
|
|
$ |
(0.94 |
) |
|
|
(55.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP to Non-GAAP Measures for the
Three Months Ended September 30, 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 September 30, 2023 and 2022 follows (in
thousands):
Three Months Ended
September 30, |
|
2023 |
|
2022 |
|
Change |
|
|
$ |
|
$ |
|
$ |
|
% |
Net income before provision for income taxes |
|
$ |
23,935 |
|
|
$ |
58,008 |
|
|
$ |
(34,073 |
) |
|
|
(58.7 |
%) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
52 |
|
|
|
82 |
|
|
$ |
(30 |
) |
|
|
(36.6 |
%) |
Amortization of acquired intangibles |
|
|
2,165 |
|
|
|
2,711 |
|
|
$ |
(546 |
) |
|
|
(20.1 |
%) |
Depreciation expense |
|
|
627 |
|
|
|
473 |
|
|
$ |
154 |
|
|
|
32.6 |
% |
Adjusted net income before
provision for income taxes (non-GAAP) |
|
$ |
26,779 |
|
|
$ |
61,274 |
|
|
$ |
(34,495 |
) |
|
|
(56.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net income to EBITDA, and operating cash
flows to EBITDA for the three months ended September 30, 2023
and 2022 follows (in thousands):
Three Months Ended
September 30, |
|
2023 |
|
2022 |
|
Change |
|
|
$ |
|
$ |
|
$ |
|
% |
Net income |
|
$ |
18,983 |
|
|
$ |
45,237 |
|
|
$ |
(26,254 |
) |
|
|
(58.0 |
%) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(6,102 |
) |
|
|
(5,096 |
) |
|
$ |
1,006 |
|
|
|
19.7 |
% |
Interest expense |
|
|
9,823 |
|
|
|
6,130 |
|
|
$ |
3,693 |
|
|
|
60.2 |
% |
Amortization of acquired intangibles |
|
|
2,165 |
|
|
|
2,711 |
|
|
$ |
(546 |
) |
|
|
(20.1 |
%) |
Depreciation expense |
|
|
627 |
|
|
|
473 |
|
|
$ |
154 |
|
|
|
32.6 |
% |
Income tax expense |
|
|
4,952 |
|
|
|
12,771 |
|
|
$ |
(7,819 |
) |
|
|
(61.2 |
%) |
|
|
|
11,465 |
|
|
|
16,989 |
|
|
$ |
(5,524 |
) |
|
|
(32.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
30,448 |
|
|
$ |
62,226 |
|
|
$ |
(31,778 |
) |
|
|
(51.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
$ |
(44,262 |
) |
|
$ |
279,622 |
|
|
$ |
(323,884 |
) |
|
|
(115.8 |
%) |
Changes in operating working capital |
|
|
65,127 |
|
|
|
(232,278 |
) |
|
$ |
297,405 |
|
|
|
128.0 |
% |
Interest expense |
|
|
9,823 |
|
|
|
6,130 |
|
|
$ |
3,693 |
|
|
|
60.2 |
% |
Interest income |
|
|
(6,102 |
) |
|
|
(5,096 |
) |
|
$ |
1,006 |
|
|
|
19.7 |
% |
Income tax expense |
|
|
4,952 |
|
|
|
12,771 |
|
|
$ |
(7,819 |
) |
|
|
(61.2 |
%) |
Dividends and distributions received from equity method
investees |
|
|
(269 |
) |
|
|
(551 |
) |
|
$ |
(282 |
) |
|
|
(51.2 |
%) |
Earnings from equity method investments |
|
|
2,709 |
|
|
|
2,677 |
|
|
$ |
32 |
|
|
|
1.2 |
% |
Share-based compensation |
|
|
(664 |
) |
|
|
(535 |
) |
|
$ |
129 |
|
|
|
24.1 |
% |
Amortization of loan cost |
|
|
(522 |
) |
|
|
(554 |
) |
|
$ |
(32 |
) |
|
|
(5.8 |
%) |
Other |
|
|
(344 |
) |
|
|
40 |
|
|
$ |
(384 |
) |
|
|
(960.0 |
%) |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
30,448 |
|
|
$ |
62,226 |
|
|
$ |
(31,778 |
) |
|
|
(51.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP to Non-GAAP Measures for the
Three Months Ended September 30, 2023 and June 30,
2023
A reconciliation of net income before provision for income taxes
to adjusted net income before provision for income taxes for the
three months ended September 30, 2023 and June 30, 2023
follows (in thousands):
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
September 30, 2023 |
|
June 30, 2023 |
|
Change |
|
|
$ |
|
$ |
|
$ |
|
% |
Net income before provision for income taxes |
|
$ |
23,935 |
|
|
|
56,242 |
|
|
$ |
(32,307 |
) |
|
|
(57.4 |
%) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
52 |
|
|
|
101 |
|
|
$ |
(49 |
) |
|
|
(48.5 |
%) |
Amortization of acquired intangibles |
|
|
2,165 |
|
|
|
2,150 |
|
|
$ |
15 |
|
|
|
0.7 |
% |
Depreciation expense |
|
|
627 |
|
|
|
591 |
|
|
$ |
36 |
|
|
|
6.1 |
% |
Adjusted net income before
provision for income taxes (non-GAAP) |
|
$ |
26,779 |
|
|
$ |
59,084 |
|
|
$ |
(32,305 |
) |
|
|
(54.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net income to EBITDA, and operating cash
flows to EBITDA for the three months ended September 30,
2023 and June 30, 2023 follows (in thousands):
|
|
September 30, 2023 |
|
June 30, 2023 |
|
Change |
|
|
$ |
|
$ |
|
$ |
|
% |
Net income |
|
$ |
18,983 |
|
|
$ |
41,937 |
|
|
$ |
(22,954 |
) |
|
|
(54.7 |
%) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(6,102 |
) |
|
|
(6,064 |
) |
|
$ |
38 |
|
|
|
0.6 |
% |
Interest expense |
|
|
9,823 |
|
|
|
8,925 |
|
|
$ |
898 |
|
|
|
10.1 |
% |
Amortization of acquired intangibles |
|
|
2,165 |
|
|
|
2,150 |
|
|
$ |
15 |
|
|
|
0.7 |
% |
Depreciation expense |
|
|
627 |
|
|
|
591 |
|
|
$ |
36 |
|
|
|
6.1 |
% |
Income tax expense |
|
|
4,952 |
|
|
|
14,305 |
|
|
$ |
(9,353 |
) |
|
|
(65.4 |
%) |
|
|
|
11,465 |
|
|
|
19,907 |
|
|
$ |
(8,442 |
) |
|
|
(42.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
30,448 |
|
|
$ |
61,844 |
|
|
$ |
(31,396 |
) |
|
|
(50.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating
activities |
|
$ |
(44,262 |
) |
|
$ |
(73,572 |
) |
|
$ |
(29,310 |
) |
|
|
(39.8 |
%) |
Changes in operating working capital |
|
|
65,127 |
|
|
|
116,110 |
|
|
$ |
(50,983 |
) |
|
|
(43.9 |
%) |
Interest expense |
|
|
9,823 |
|
|
|
8,925 |
|
|
$ |
898 |
|
|
|
10.1 |
% |
Interest income |
|
|
(6,102 |
) |
|
|
(6,064 |
) |
|
$ |
38 |
|
|
|
0.6 |
% |
Income tax expense |
|
|
4,952 |
|
|
|
14,305 |
|
|
$ |
(9,353 |
) |
|
|
(65.4 |
%) |
Dividends received from equity method investees |
|
|
(269 |
) |
|
|
(427 |
) |
|
$ |
(158 |
) |
|
|
(37.0 |
%) |
Earnings from equity method investments |
|
|
2,709 |
|
|
|
5,300 |
|
|
$ |
(2,591 |
) |
|
|
(48.9 |
%) |
Share-based compensation |
|
|
(664 |
) |
|
|
(569 |
) |
|
$ |
95 |
|
|
|
16.7 |
% |
Deferred income taxes |
|
|
— |
|
|
|
(1,836 |
) |
|
$ |
1,836 |
|
|
|
100.0 |
% |
Amortization of loan cost |
|
|
(522 |
) |
|
|
(485 |
) |
|
$ |
37 |
|
|
|
7.6 |
% |
Other |
|
|
(344 |
) |
|
|
157 |
|
|
$ |
(501 |
) |
|
|
(319.1 |
%) |
Earnings before interest, taxes,
depreciation, and amortization (non-GAAP) |
|
$ |
30,448 |
|
|
$ |
61,844 |
|
|
$ |
(31,396 |
) |
|
|
(50.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Mark Precious Metals (NASDAQ:AMRK)
Historical Stock Chart
From May 2024 to Jun 2024
A Mark Precious Metals (NASDAQ:AMRK)
Historical Stock Chart
From Jun 2023 to Jun 2024