Diluted Earnings per Share of
Repurchase of 171,268 Common Shares for
Company reaffirms regular quarterly cash dividend policy of
Credit Facility amended increasing liquidity and reclassifying debt to long term
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
“During the first quarter we also repurchased a total of 171,268 shares of our common stock for
“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 endedSeptember 30, 2022 , and decreased 39% from 814,000 ounces for the three months endedJune 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 endedSeptember 30, 2022 , and decreased 33% from 45.3 million ounces for the three months endedJune 30, 2023 - As of
September 30, 2023 , the number of secured loans decreased 26% to 803 from 1,082 as ofSeptember 30, 2022 , and decreased 9% from 882 as ofJune 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 endedSeptember 30, 2022 , and decreased 57% from 90,400 for the three months endedJune 30, 2023 . For the three-month period endedJune 30, 2023 , approximately 32% of the new customers were attributable to the acquired customer list of BullionMax inJune 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 endedSeptember 30, 2022 , and decreased 20% from 133,800 for the three months endedJune 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 endedSeptember 30, 2022 , and decreased$848 , or 26% from$3,288 for the three months endedJune 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 endedSeptember 30, 2022 , and decreased$716 , or 24% from$2,955 for the three months endedJune 30, 2023
Three Months Ended | ||||||||||
2023 | 2022 | |||||||||
Selected Operating Metrics: | ||||||||||
Gold ounces sold(1) | 495,000 | 629,000 | ||||||||
Silver ounces sold(2) | 30,378,000 | 35,917,000 | ||||||||
Number of secured loans at period end(3) | 803 | 1,082 | ||||||||
Direct-to-Consumer ("DTC") number of new customers(4) | 39,100 | 49,000 | ||||||||
Direct-to-Consumer number of active customers(5) | 106,400 | 139,900 | ||||||||
Direct-to-Consumer number of total customers(6) | 2,387,400 | 2,062,000 | ||||||||
Direct-to-Consumer average order value ("AOV")(7) | $ | 2,440 | $ | 2,333 | ||||||
$ | 2,239 | $ | 2,151 | |||||||
CyberMetals number of new customers(9) | 2,400 | 2,300 | ||||||||
CyberMetals number of active customers(10) | 2,500 | 2,000 | ||||||||
CyberMetals number of total customers(11) | 24,800 | 8,200 | ||||||||
CyberMetals customer assets under management(12) | $ | 6,000,000 | $ | 4,600,000 | ||||||
(1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts. | ||||||||||
(2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts. | ||||||||||
(3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period. | ||||||||||
(4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment. | ||||||||||
(5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment. | ||||||||||
(6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment. | ||||||||||
(7) DTC AOV represents the average dollar value of 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. |
Three Months Ended | ||||||||||
Selected Operating Metrics: | ||||||||||
Gold ounces sold(1) | 495,000 | 814,000 | ||||||||
Silver ounces sold(2) | 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 | ||||||
$ | 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 | ||||||||
CyberMetals customer assets under management(12) | $ | 6,000,000 | $ | 6,500,000 | ||||||
(1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts. | ||||||||||
(2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts. | ||||||||||
(3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period. | ||||||||||
(4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment. | ||||||||||
(5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment. | ||||||||||
(6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment. | ||||||||||
(7) DTC AOV represents the average dollar value of 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 endedSeptember 30, 2022 and decreased 20% from$3.12 billion for the three months endedJune 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 endedSeptember 30, 2022 and decreased 37% from$78.6 million for the three months endedJune 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 endedSeptember 30, 2022 , and declined from 2.52% of revenue in the three months endedJune 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 endedSeptember 30, 2022 , and decreased 55% from$41.8 million for the three months endedJune 30, 2023 - Diluted earnings per share totaled
$0.77 for the three months endedSeptember 30, 2023 , a 58% decrease compared to$1.83 for the three months endedSeptember 30, 2022 , and decreased 55% from$1.71 for the three months endedJune 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 endedSeptember 30, 2022 , and decreased 55% from$59.1 million for the three months endedJune 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 endedSeptember 30, 2022 , and decreased 51% from$61.8 million for the three months endedJune 30, 2023
Three Months Ended | ||||||||||
2023 | 2022 | |||||||||
(in thousands, except Earnings per Share) | ||||||||||
Selected Key Financial Statement Metrics: | ||||||||||
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 | ||||||
Earnings per Share: | ||||||||||
Basic | $ | 0.81 | $ | 1.93 | ||||||
Diluted | $ | 0.77 | $ | 1.83 | ||||||
Non-GAAP Measures(1): | ||||||||||
Adjusted net income before provision for income taxes | $ | 26,779 | $ | 61,274 | ||||||
EBITDA | $ | 30,448 | $ | 62,226 | ||||||
(1) See Reconciliation of | ||||||||||
Three Months Ended | ||||||||||
(in thousands, except Earnings per Share) | ||||||||||
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 | ||||||||||
Fiscal First Quarter 2024 Financial Summary
Revenues increased 31% to
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
Selling, general and administrative expenses increased 23% to
Depreciation and amortization expense decreased 12% to
Interest income increased 20% to
Interest expense increased 60% to
Earnings from equity method investments increased 1% to
Net income attributable to the Company totaled
Adjusted net income before provision for income taxes for the three months ended
EBITDA for the three months ended
Quarterly Cash Dividend Policy
A-Mark’s Board of Directors has re-affirmed its previously announced regular quarterly cash dividend policy of
Conference Call
A-Mark will hold a conference call today (
To participate, please call the conference telephone number 10 minutes before the start time and ask for the
Webcast: https://www.webcaster4.com/Webcast/Page/2867/49261
International number: 1-973-528-0011
Access 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
Toll-free replay number: 1-877-481-4010
International replay number: 1-919-882-2331
Replay Passcode: 49261
About
Founded in 1965,
A-Mark’s Wholesale Sales & Ancillary Services segment distributes and purchases precious metal products from sovereign and private mints. As a
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
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,
The company operates its Secured Lending segment through its wholly owned subsidiary,
A-Mark is headquartered in
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
Important Cautions Regarding Forward-Looking Statements
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These include statements regarding expectations 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
The Company undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.
Use and Reconciliation of Non-GAAP Measures
In addition to presenting the Company’s financial results determined in accordance with
In the Company’s reconciliation from its reported
Company Contact:
1-310-587-1410
sreiner@amark.com
Investor Relations Contact:
1-949-574-3860
AMRK@gateway-grp.com
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except for share data) | ||||||||
(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 | ||||||
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, | — | — | ||||||
Common stock, par value | 239 | 237 | ||||||
(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 | ||||||
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 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except for share and per share data; unaudited) | ||||||||
Three Months Ended | ||||||||
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 | ||||||||
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 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands; unaudited) | ||||||||
Three Months Ended | ||||||||
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
Consolidated Results of Operations
The operating results for the three months ended
Three Months Ended | 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 | ||||||||||||||||||||||||
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
Consolidated Results of Operations
The operating results for the three months ended
Three Months Ended | ||||||||||||||||||||||||
Change | ||||||||||||||||||||||||
$ | % of revenue | $ | % of revenue | $ | % | |||||||||||||||||||
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 | ||||||||||||||||||||||||
Per Share Data: | ||||||||||||||||||||||||
Basic | $ | 0.81 | $ | 1.80 | $ | (0.99 | ) | (55.0 | %) | |||||||||||||||
Diluted | $ | 0.77 | $ | 1.71 | $ | (0.94 | ) | (55.0 | %) | |||||||||||||||
Reconciliation of
A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the three months ended
Three Months Ended | 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
Three Months Ended | 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
A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the three months ended
Three Months Ended | ||||||||||||||||
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
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 | %) | |||||||
Source:
2023 GlobeNewswire, Inc., source