• A-Mark Precious Metals Reports Fiscal Fourth Quarter and Record Full Year 2021 Results

    ソース: Nasdaq GlobeNewswire / 09 9 2021 15:05:01   America/Chicago

    Recent Acquisition of JM Bullion has Major Impact on Earnings Growth

    Company Declares a Non-recurring Special Dividend of $2.00 per Common Share

    EL SEGUNDO, Calif., Sept. 09, 2021 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, reported results for the fiscal fourth quarter and full year ended June 30, 2021.

    Fiscal Fourth Quarter 2021 Financial Highlights

    • Revenues for the three months ended June 30, 2021 were a $2.18 billion, a 31% increase over the $1.67 billion reported for the three months ended June 30, 2020 and 6% over the strong $2.05 billion reported for the three months ended March 31, 2021

    • Gross profit for the three months ended June 30, 2021 was a record $87.1 million, an increase of 211% over the $28.0 million reported for the three months ended June 30, 2020 and 28% over the $68.2 million reported for the three months ended March 31, 2021

    • Gross profit margins for the three months ended June 30, 2021 rose to 4.00% of revenue, from 1.68% of revenue for the three months ended June 30, 2020, and 3.33% of revenue in the strong three months ended March 31, 2021

    • Net income attributable to the Company for the three months ended June 30, 2021 totaled $51.0 million or $4.28 per diluted share, a 72% increase in diluted earnings per share, as compared to net income of $17.8 million or $2.49 per diluted share for the three months ended June 30, 2020, and net income of $76.6 million or $8.84 per diluted share for the three months ended March 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 JM Bullion (“JMB”) in connection with its acquisition, as well as $2.6 million of non-recurring acquisition costs

    • Adjusted net income before provision for income taxes, a non-GAAP financial measure, for the three months ended June 30, 2021 totaled $72.3 million, as compared to $23.0 million for the three months ended June 30, 2020

    • In its first full quarter 100% owned by A-Mark, JMB (acquired by the Company on March 19, 2021) made significant additions to A-Mark’s earnings, contributing $37.6 million to the Company’s gross profit and $24.0 million to pre-tax earnings for the fourth quarter

    • Gold ounces sold in the three months ended June 30, 2021 increased 15% to 772,000 ounces from 669,000 ounces for the three months ended June 30, 2020 and remained consistent with the 771,000 ounces sold for the three months ended March 31, 2021

    • Silver ounces sold in the three months ended June 30, 2021 increased 20% to 35.7 million ounces from 29.6 million ounces for the three months ended June 30, 2020 and increased 8% from 33.1 million ounces for the three months ended March 31, 2021

    • As of June 30, 2021, the number of secured loans increased 162% to 1,881 from 717 as of June 30, 2020 and increased 20% from 1,571 as of March 31, 2021

    Fiscal Fourth Quarter 2021 Financial Results
    Revenues increased 31% to $2.18 billion from $1.67 billion in the same year-ago quarter. The increase in revenues was primarily due to an increase in the total amount of gold and silver ounces sold and higher selling prices of gold and silver, partially offset by lower forward sales.  Financial results for the three months ended June 30, 2021 included $603.8 million of revenue that is attributable to the Company’s recent acquisition of JMB, representing approximately 28% of the total consolidated revenue for the period.  

    Gross profit increased 211% to $87.1 million (4.00% of revenue) from $28.0 million (1.68% of revenue) in the same year-ago quarter. The increase in gross profit was due to higher gross profits earned by the Wholesale Sales & Ancillary Services and Direct-to-Consumer segments. The increase in gross margin percentage was mainly attributable to significantly wider premium spreads due to increased demand and higher trading profits primarily due to increased volatility, lower forward sales, as well as higher gross profit earned by the Direct-to-Consumer segment due to JMB.  Approximately 43% of the consolidated gross profit for the quarter was attributable to JMB.

    Selling, general and administrative expenses increased 144% to $25.0 million from $10.2 million in the same year-ago quarter.  The increase was primarily due to $12.8 million of expenses incurred by JMB, of which $7.7 million was attributable to amortization expense, and overall increases in consulting costs of $0.5 million, compensation expense of $0.3 million, and insurance costs of $0.7 million. Approximately 51% of the consolidated selling, general, and administrative expenses for the quarter was attributable to JMB.

    Interest income increased 60% to $5.2 million from $3.3 million in the same year-ago quarter. The increase in interest income was primarily due to higher interest income earned from the Company’s Secured Lending segment due to higher average monthly secured loan balances outstanding as compared to the same year-ago quarter, and higher other finance product income.

    Interest expense increased 45% to $5.2 million from $3.6 million in the same year-ago quarter. The increase in interest expense was primarily due to higher interest expense associated with a higher usage of the Company’s Trading Credit Facility, product financing arrangements and liabilities on borrowed metals, and increases in loan servicing fees related to higher average secured loan balances as compared to the same year-ago quarter.

    Earnings from equity method investments decreased 63% to $1.6 million from $4.5 million in the same year-ago quarter. This decrease was due to the acquisition of the remaining 79.5% interest in the Company’s previous equity method investment in JMB during the fiscal third quarter, which is now consolidated as a wholly owned subsidiary, offset by an increase in earnings and higher ownership interests in the remaining equity method investments compared to the same year-ago quarter.

    Net income attributable to the Company totaled $51.0 million or $4.28 per diluted share, compared to net income of $17.8 million or $2.49 per diluted share in the same year-ago quarter.  Diluted weighted average shares outstanding for the three months ended June 30, 2021 were 11,915,700, compared to 7,173,000 in the same year-ago quarter.

    Fiscal Year 2021 Financial Highlights

    • Revenues for the fiscal year ended June 30, 2021 were a $7.61 billion, a 39% increase over the $5.46 billion reported for the fiscal year ended June 30, 2020
    • Gross profit for the fiscal year ended June 30, 2021 was a record $210.2 million, an increase of 214% over the $67.0 million reported for the fiscal year ended June 30, 2020
    • Gross profit margins for the fiscal year ended June 30, 2021 rose to 2.76% of revenue, from 1.23% of revenue for the fiscal year ended June 30, 2020
    • Net income attributable to the Company for the fiscal year ended June 30, 2021 totaled $159.6 million or $17.79 per diluted share, as compared to net income of $30.5 million or $4.31 per diluted share for the fiscal year ended June 30, 2020. Net income attributable to the Company for the fiscal year ended June 30, 2021 included a $26.3 million remeasurement gain on its pre-existing equity interest in JMB in connection with its acquisition, as well as $2.6 million of non-recurring acquisition costs
    • Adjusted net income before provision for income taxes, a non-GAAP financial measure, for the fiscal year ended June 30, 2021 totaled $179.9 million, as compared to $40.8 million for the fiscal year ended June 30, 2020
    • Gold ounces sold for the fiscal year ended June 30, 2021 increased 26% to 2.7 million ounces from 2.2 million ounces for the fiscal year ended June 30, 2020
    • Silver ounces sold for the fiscal year ended June 30, 2021 increased 26% to 114.3 million ounces from 90.4 million ounces for the fiscal year ended June 30, 2020

     

    Fiscal Year 2021 Financial Results
    Revenues increased 39% to $7.61 billion from $5.46 billion in the prior fiscal year.  The increase in revenues was primarily due to an increase in the total amount of gold and silver ounces sold and higher selling prices of gold and silver, partially offset by lower forward sales.  Financial results for the fiscal year ended June 30, 2021 included $672.2 million of revenue that is attributable to JMB’s operations during the post-acquisition period from March 20, 2021 through June 30, 2021, representing approximately 9% of the total consolidated revenue for the year.

    Gross profit increased 214% to $210.2 million (2.76% of revenue) from $67.0 million (1.23% of revenue) in the same year-ago period. The overall gross profit increase was due to higher gross profits from the Wholesale Sales & Ancillary Services and Direct-to-Consumer segments. The increase in gross profit was primarily due to significantly wider premium spreads due to increased demand, higher trading profits due to increased volatility, lower forward sales, as well as higher gross profit earned by the Direct-to-Consumer segment due to JMB.  Approximately 22% of the consolidated gross profit for the year was attributable to JMB.

    Selling, general, and administrative expenses increased 60% to $58.8 million from $36.8 million in the prior fiscal year.  The increase was primarily due to $14.5 million of expenses incurred by JMB, of which $8.7 million was attributable to amortization expense, $2.6 million of costs associated with the acquisition of JMB, increased compensation expense (including performance-based accruals) of $2.4 million, and higher insurance costs of $1.4 million. Approximately 25% of the consolidated selling, general, and administrative expenses for the year was attributable to JMB.

    Interest income decreased 13% to $18.5 million from $21.2 million in the prior fiscal year.  The decrease in interest income was primarily due to lower interest income earned by the Company’s Secured Lending segment due to lower average monthly secured loan balances outstanding as compared to the prior fiscal year, partially offset by higher other finance product income.  The number of secured loans increased 162% to 1,881 from 717 at the end of the prior fiscal year.

    Interest expense increased 5% to $19.9 million from $18.9 million in the prior fiscal year. The increase in interest expense was primarily driven by higher interest expense associated with product financing arrangements, higher interest and fees from liabilities on borrowed metals, partially offset by a reduction in loan servicing fees, and less interest expense related to the Company’s Trading Credit Facility.

    Earnings from equity method investments increased 219% to $15.5 million from $4.9 million in the prior fiscal year.  The aggregate increase was due to an increase in earnings and ownership interests in the Company’s equity method investments compared to the prior fiscal year, offset by a reduction due to the acquisition of the remaining 79.5% interest in our previous equity method investment in JMB during the fiscal third quarter, which is now consolidated as a wholly owned subsidiary.

    Net income attributable to the Company totaled $159.6 million or $17.79 per diluted share, an appreciable improvement from net income of $30.5 million or $4.31 per diluted share in the prior fiscal year.  Net income attributable to the Company for the fiscal year ended June 30, 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 fiscal year ended June 30, 2021 was $133.3 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 fiscal year ended June 30, 2021 were 8,972,300, compared to 7,080,500 for the prior fiscal year.

    Management Commentary 
    “The fourth quarter marked a solid finish to a record and transformative year for A-Mark,” said A-Mark CEO Greg Roberts. “The integration and contribution of JMB’s business has exceeded expectations, driving higher gross profit margins and pre-tax income, excluding the remeasurement gain associated with the JMB acquisition, compared to the prior quarter, and supported by healthy macro trends across our business. More specifically, the 28% sequential increase in gross profit and 37% return on equity, excluding the remeasurement gain, for the fiscal year reflects the strategic expansion of our Direct-to-Consumer (DTC) business and our ability to leverage our platform to take advantage of supply constrained environments.”

    Michael Wittmeyer, JMB CEO, added: “The integration of JMB into A-Mark has gone as smoothly as I could have hoped. As planned, JMB is now successfully leveraging the enhanced access to the A-Mark supply chain and product portfolio into a significant advantage in the precious metals eCommerce landscape. We remain thrilled with the partnership and are highly enthusiastic about all the opportunities on our roadmap.”

    Greg Roberts continued: “JMB continues to exceed our expectations and has established significant operational momentum in our DTC business segment, including synergies between brands under the A-Mark portfolio and strong pricing premiums. Our recently announced increased stake in Pinehurst provides the Company with increased exposure to yet another established, high-quality DTC brand with a unique customer base.  We continue to evaluate opportunistic investments within the DTC segment, specifically targeting value-add brands that can provide A-Mark with a broader geographic or customer footprint.

    “We entered fiscal 2022 in a strong position as recent strategic acquisitions and investments such as JMB, Pinehurst, Sunshine Mint, and our purchase of the remaining interest in SilverTowne Mint, have dramatically strengthened our vertically integrated capabilities and continues to provide us with price stability and secured access to product, particularly during volatile and supply constrained market conditions. Our expanded A-Mark business continues to benefit from the sustained rally in the precious metals market, and we remain optimistic that our favorable competitive position, industry leading fully integrated precious metals platform, and proven business model will help us capitalize on near-term opportunities and realize continued growth and profitability over the long term.”

    Special Dividend
    A-Mark’s Board of Directors approved a non-recurring special dividend of $2.00 per common share. The special dividend will be paid on or about September 24, 2021 to stockholders of record as of September 20, 2021.

    Conference Call
    A-Mark will hold a conference call today (September 9, 2021) to discuss these financial results. The Company's CEO Greg Roberts, President Thor Gjerdrum, CFO Kathleen Simpson-Taylor, and JMB’s CEO Michael Wittmeyer 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: 1-877-407-0789
    International number: 1-201-689-8562
    Conference ID: 13722502

    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 through September 24, 2021.

    Toll-free replay number: 1-844-512-2921
    International replay number: 1-412-317-6671
    Conference ID: 13722502

    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, Secured Lending, and Direct-to-Consumer. 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 SilverTowne 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.

    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’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. 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.

    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. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results 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 our 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 our higher margin services, which could depress pricing; the failure of our business model to respond to changes in the market environment as anticipated; 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 our results determined in accordance with GAAP, we believe the following non-GAAP financial measure is useful in evaluating our operating performance.  We present “adjusted net income before provision for income taxes” because we believe it assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.  The items excluded from this financial measure may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, this non-GAAP financial measure should be considered in addition to, and not as a substitute for or superior to, the comparable measures prepared in accordance with GAAP, and should be read in conjunction with the financial statements included in our Annual Report on Form 10-K to be filed with the SEC.

    In our reconciliation from our reported GAAP “net income before provision for taxes” to our non-GAAP “adjusted net income before provision for taxes,” we eliminate the impact of the following four amounts: (i) remeasurement gains; (ii) acquisition expenses; (iii) amortization expenses related to intangible assets acquired; and (iv) depreciation expense.

    We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure.

    Company Contact:
    Steve Reiner, Executive Vice President, Capital Markets & Investor Relations
    A-Mark Precious Metals, Inc.
    1-310-587-1410
    sreiner@amark.com

    Investor Relations Contact:
    Matt Glover or Jeff Grampp, CFA
    Gateway Investor Relations
    1-949-574-3860
    AMRK@gatewayIR.com               


    A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (amounts in thousands, except for share data)

      June 30,
    2021
       June 30,
    2020
     
    ASSETS         
    Current assets:         
    Cash $101,405   $52,325 
    Receivables, net  89,000    49,142 
    Derivative assets  44,536    46,325 
    Secured loans receivable  112,968    63,710 
    Precious metals held under financing arrangements  154,742    178,577 
    Inventories:         
    Inventories  256,991    246,603 
    Restricted inventories  201,028    74,678 
       458,019    321,281 
    Prepaid expenses and other assets  3,557    2,659 
    Total current assets  964,227    714,019 
    Operating lease right of use assets  5,702    4,223 
    Property, plant, and equipment, net  8,609    5,675 
    Goodwill  100,943    8,881 
    Intangibles, net  93,633    4,974 
    Long-term investments  18,467    16,763 
    Other long-term assets      3,500 
    Total assets $1,191,581   $758,035 
    LIABILITIES AND STOCKHOLDERS’ EQUITY         
    Current liabilities:         
    Lines of credit  185,000   $135,000 
    Liabilities on borrowed metals  91,866    168,206 
    Product financing arrangements  201,028    74,678 
    Accounts payable and other current liabilities  200,351    140,930 
    Derivative liabilities  7,539    25,414 
    Accrued liabilities  18,785    10,397 
    Income tax payable  5,016    2,135 
    Total current liabilities  709,585    556,760 
    Notes payable  93,249    92,517 
    Deferred tax liabilities  19,514    62 
    Other liabilities  5,291    3,802 
    Total liabilities  827,639    653,141 
    Commitments and contingencies         
    Stockholders’ equity:         
    Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued
       and outstanding: none as of June 30, 2021 and June 30, 2020
           
    Common stock, par value $0.01; 40,000,000 shares authorized; 11,229,657
       and 7,031,500 shares issued and outstanding as of June 30, 2021
       and June 30, 2020, respectively
      113    71 
    Additional paid-in capital  150,420    27,289 
    Retained earnings  212,090    73,644 
    Total A-Mark Precious Metals, Inc. stockholders’ equity  362,623    101,004 
    Noncontrolling interests  1,319    3,890 
    Total stockholders’ equity  363,942    104,894 
    Total liabilities, noncontrolling interests and stockholders’ equity $1,191,581   $758,035 
              

    A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (in thousands, except for share and per share data)

      Years Ended 
      June 30,
    2021
       June 30,
    2020
     
    Revenues $7,613,015   $5,461,094 
    Cost of sales  7,402,817    5,394,121 
    Gross profit  210,198    66,973 
    Selling, general, and administrative expenses  (58,809)   (36,756)
    Interest income  18,474    21,237 
    Interest expense  (19,865)   (18,859)
    Earnings from equity method investments  15,547    4,878 
    Other income, net  1,079    348 
    Remeasurement gain on pre-existing equity interest  26,306     
    Unrealized (losses) gains on foreign exchange  (129)   57 
    Net income before provision for income taxes  192,801    37,878 
    Income tax expense  (31,877)   (6,387)
    Net income  160,924    31,491 
    Net income attributable to noncontrolling interests  1,287    982 
    Net income attributable to the Company $159,637   $30,509 
    Basic and diluted net income per share attributable
       to A-Mark Precious Metals, Inc.:
             
    Basic $19.13   $4.34 
    Diluted $17.79   $4.31 
              
    Weighted average shares outstanding:         
    Basic  8,343,300    7,031,500 
    Diluted  8,972,300    7,080,500 
              

    A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (amounts in thousands)

    Years Ended June 30, 2021  2020 
    Cash flows from operating activities:        
    Net income $160,924  $31,491 
    Adjustments to reconcile net income to net cash (used in) provided by operating activities:        
    Depreciation and amortization  10,788   2,900 
    Amortization of loan cost  2,162   1,484 
    Deferred income taxes  (2,034)  3,225 
    Interest added to principal of secured loans  (13)  (19)
    Share-based compensation  1,173   953 
    Remeasurement gain on pre-existing equity method investment  (26,306)   
    Earnings from equity method investments  (15,547)  (4,878)
    Dividend received from equity method investee  343    
    Changes in assets and liabilities:        
    Receivables  (20,880)  (22,247)
    Secured loans receivable  1,932   3,086 
    Secured loans made to affiliates  5,755   5,261 
    Derivative assets  7,447   (43,897)
    Income tax receivable     1,473 
    Precious metals held under financing arrangements  23,835   30,215 
    Inventories  (79,031)  (28,420)
    Prepaid expenses and other assets  (7)  59 
    Accounts payable and other current liabilities  (27,446)  78,750 
    Derivative liabilities  (20,194)  15,443 
    Liabilities on borrowed metals  (76,340)  (32,938)
    Accrued liabilities  5,687   3,859 
    Income tax payable  (4,902)  2,135 
    Net cash (used in) provided by operating activities  (52,654)  47,935 
    Cash flows from investing activities:        
    Capital expenditures for property, plant, and equipment  (2,113)  (836)
    Purchase of long-term investments  (7,996)   
    Purchase of intangible assets     (150)
    Secured loans receivable, net  (56,932)  53,260 
    Acquisition of remaining noncontrolling equity interest in joint venture  (1,950)   
    Other secured loans, net     (3,500)
    Redemption adjustment of equity method investment  17,457    
    Incremental acquisition of pre-existing equity method investment, net of cash  (78,859)   
    Net cash (used in) provided by investing activities  (130,393)  48,774 
    Cash flows from financing activities:        
    Product financing arrangements, net  126,350   (19,827)
    Dividends paid  (21,191)   
    Borrowings and repayments under lines of credit, net  50,000   (32,000)
    Net proceeds from the issuance of common stock  75,344    
    Debt funding issuance costs  (1,861)  (761)
    Net settlement on issuance of common shares on exercise of options  3,485   (116)
    Net cash provided by (used in) financing activities  232,127   (52,704)
    Net increase in cash, cash equivalents, and restricted cash  49,080   44,005 
    Cash, cash equivalents, and restricted cash, beginning of period  52,325   8,320 
    Cash, cash equivalents, and restricted cash, end of period $101,405  $52,325 
             

    Overview of Results of Operations for the Years Ended June 30, 2021 and 2020

    Consolidated Results of Operations

    The operating results of our business for the years ended June 30, 2021 and 2020 are as follows:

    in thousands, except per share data                        
      Years Ended         
      June 30, 2021  June 30, 2020         
      $  % of
    revenue
      $  % of
    revenue
      Increase/
    (decrease)
      Increase/
    (decrease)
     
    Revenues $7,613,015   100.000% $5,461,094   100.000% $2,151,921   39.4%
    Gross profit  210,198   2.761%  66,973   1.226% $143,225   213.9%
    Selling, general, and administrative expenses  (58,809)  (0.772)%  (36,756)  (0.673)% $22,053   60.0%
    Interest income  18,474   0.243%  21,237   0.389% $(2,763)  (13.0%)
    Interest expense  (19,865)  (0.261)%  (18,859)  (0.345)% $1,006   5.3%
    Earnings from equity method investments  15,547   0.204%  4,878   0.089% $10,669   218.7%
    Other income, net  1,079   0.014%  348   0.006% $731   210.1%
    Remeasurement gain on pre-existing equity interest  26,306   0.346%     0.0% $26,306   0.0%
    Unrealized (losses) gains on foreign exchange  (129)  (0.002)%  57   0.001% $186   326.3%
    Net income before provision for income taxes  192,801   2.533%  37,878   0.694% $154,923   409.0%
    Income tax expense  (31,877)  (0.419)%  (6,387)  (0.117)% $25,490   399.1%
    Net income  160,924   2.114%  31,491   0.577% $129,433   411.0%
    Net income attributable to noncontrolling interests  1,287   0.017%  982   0.018% $305   31.1%
    Net income attributable to the Company $159,637   2.097% $30,509   0.559% $129,128   423.2%
    Basic and diluted net income per share attributable to
       A-Mark Precious Metals, Inc.:
                            
    Per Share Data:                        
    Basic $19.13      $4.34      $14.79   340.8%
    Diluted $17.79      $4.31      $13.48   312.8%
                             

    Overview of Results of Operations for the Three Months Ended June 30, 2021 and 2020

    Consolidated Results of Operations  

    The operating results of our business for the three months ended June 30, 2021 and 2020 are as follows:

    in thousands, except per share data                        
      Three Months Ended         
      June 30, 2021  June 30, 2020  $  % 
      $  % of
    revenue
      $  % of
    revenue
      Increase/
    (decrease)
      Increase/
    (decrease)
     
    Revenues $2,178,666   100.000% $1,665,768   100.000% $512,898   30.8%
    Gross profit  87,131   3.999%  28,027   1.683% $59,104   210.9%
    Selling, general, and administrative expenses  (24,987)  (1.147)%  (10,228)  (0.614)% $14,759   144.3%
    Interest income  5,234   0.240%  3,269   0.196% $1,965   60.1%
    Interest expense  (5,200)  (0.239)%  (3,585)  (0.215)% $1,615   45.0%
    Earnings from equity method investments  1,648   0.076%  4,486   0.269% $(2,838)  (63.3%)
    Other income, net  176   0.008%  293   0.018% $(117)  (39.9%)
    Unrealized gains on foreign exchange  2   0.000%  99   0.006% $(97)  (98.0%)
    Net income before provision for income taxes  64,004   2.938%  22,361   1.342% $41,643   186.2%
    Income tax expense  (12,933)  (0.594)%  (4,036)  (0.242)% $8,897   220.4%
    Net income  51,071   2.344%  18,325   1.100% $32,746   178.7%
    Net income attributable to non-controlling interests  66   0.003%  499   0.030% $(433)  (86.8%)
    Net income attributable to the Company $51,005   2.341% $17,826   1.070% $33,179   186.1%
    Basic and diluted net income per share attributable to
       A-Mark Precious Metals, Inc.:
                            
    Per Share Data:                        
    Basic $4.57      $2.53      $2.04   80.6%
    Diluted $4.28      $2.49      $1.79   71.9%
                             

    Overview of Results of Operations for the Three Months Ended June 30, 2021 and March 31, 2021

    Consolidated Results of Operations

    The operating results of our business for the three months ended June 30, 2021 and March 31, 2021 are as follows:

    in thousands, except per share data                         
      Three Months Ended         
      June 30, 2021  March 31, 2021  $  % 
      $  % of
    revenue
      $  % of
    revenue
      Increase/
    (decrease)
      Increase/
    (decrease)
     
    Revenues $2,178,666   100.000% $2,049,489   100.000% $129,177   6.3%
    Gross profit  87,131   3.999%  68,171   3.326% $18,960   27.8%
    Selling, general, and administrative expenses  (24,987)  (1.147)%  (14,783)  (0.721)% $10,204   69.0%
    Interest income  5,234   0.240%  4,724   0.230% $510   10.8%
    Interest expense  (5,200)  (0.239)%  (5,335)  (0.260)% $(135)  (2.5%)
    Earnings from equity method investments  1,648   0.076%  7,411   0.362% $(5,763)  (77.8%)
    Other income, net  176   0.008%  339   0.017% $(163)  (48.1%)
    Remeasurement gain on pre-existing equity interest        26,306   1.3% $(26,306)  (100.0%)
    Unrealized gains (losses) on foreign exchange  2   0.000%  (53)  (0.003)% $55   103.8%
    Net income before provision for income taxes  64,004   2.938%  86,780   4.234% $(22,776)  (26.2%)
    Income tax expense  (12,933)  (0.594)%  (9,847)  (0.480)% $3,086   31.3%
    Net income  51,071   2.344%  76,933   3.754% $(25,862)  (33.6%)
    Net income attributable to non-controlling interests  66   0.003%  308   0.015% $(242)  (78.6%)
    Net income attributable to the Company $51,005   2.341% $76,625   3.739% $(25,620)  (33.4%)
    Basic and diluted net income per share attributable to
       A-Mark Precious Metals, Inc.:
                            
    Per Share Data:                        
    Basic $4.57      $9.54      $(4.97)  (52.1%)
    Diluted $4.28      $8.84      $(4.56)  (51.6%)
                             

    A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES
    Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of net income to Adjusted Net Income before Provision for income taxes:

    in thousands                          
      Years ended         
      June 30, 2021   June 30, 2020  $  %  
      $  % of
    revenue
      $  % of
    revenue
      Increase/
    (decrease)
      Increase/
    (decrease)
     
    Revenues $7,613,015    100.00 % $5,461,094   100.00% $2,151,921    39.4 %
                             
    Net income before provision for income taxes $192,801    2.533 % $37,878   0.694% $154,923    409.0 %
    Adjustments:                        
    Remeasurement gain on pre-existing equity interest $(26,306)   (0.346)% $      26,306     %
    Acquisition costs  2,576    0.034 %        2,576     %
    Amortization of acquired intangibles  9,341    0.123 %  1,028   0.019% $8,313    808.7 %
    Depreciation expense  1,447    0.019 %  1,872   0.034% $(425)   (22.7)%
    Adjusted net income before provision for income taxes (Non-GAAP) $179,859    2.363 

    %
     $40,778   0.747

    %
     

    $

     139,081
        
      341.1
     %


    in thousands                         
      Three Months Ended          
      June 30, 2021
     June 30, 2020  $  % 
      $  % of
    revenue
      $  % of
    revenue
      Increase/
    (decrease)
      Increase/
    (decrease)
     
    Revenues $2,178,666   100.00% $1,665,768   100.00% $512,898    30.8 %
                             
    Net income before provision for income taxes $64,004   2.938% $22,361   1.342% $41,643    186.2 %
    Adjustments:                        
    Amortization of acquired intangibles $7,882   0.362% $260   0.016% $7,622    2,931.5 %
    Depreciation expense  412   0.019%  423   0.025% $(11)   (2.6)%
    Adjusted net income before provision for income taxes (Non-GAAP) $72,298   3.32

    %
     $23,044   1.383

    %
     

    $

     49,254
        
      213.7
     %

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