FY 2022 Non-GAAP Adjusted Net Income of
270% YoY Increase in Direct-to-Consumer Active Customers
Company Declares Non-recurring Special Dividend of
Over
Fiscal Fourth Quarter 2022 Operational Highlights
- Gold ounces sold in the three months ended
June 30, 2022 decreased 17% to 641,000 ounces from 772,000 ounces for the three months endedJune 30, 2021 , and decreased 12% from 727,000 ounces for the three months endedMarch 31, 2022
- Silver ounces sold in the three months ended
June 30, 2022 increased 5% to 37.6 million ounces from 35.7 million ounces for the three months endedJune 30, 2021 , and increased 9% from 34.5 million ounces for the three months endedMarch 31, 2022 - As of
June 30, 2022 , the number of secured loans increased 21% to 2,271 from 1,881 as ofJune 30, 2021 , and decreased 16% from 2,697 as ofMarch 31, 2022 - Direct-to-Consumer new customers for the three months ended
June 30, 2022 decreased 30% to 48,800 from 69,400 for the three months endedJune 30, 2021 , and decreased 21% from 61,800 for the three months endedMarch 31, 2022 - Direct-to-Consumer active customers for the three months ended
June 30, 2022 increased 3% to 133,100 from 128,900 for the three months endedJune 30, 2021 , and decreased 18% from 162,700 for the three months endedMarch 31, 2022 - Direct-to-Consumer average order value for the three months ended
June 30, 2022 increased$348 , or 15% to$2,742 from$2,394 for the three months endedJune 30, 2021 , and decreased$13 , or 0.5% from$2,755 for the three months endedMarch 31, 2022 - JM Bullion’s average order value for the three months ended
June 30, 2022 increased$258 , or 12% to$2,497 from$2,239 for the three months endedJune 30, 2021 , and decreased$77 , or 3% from$2,574 for the three months endedMarch 31, 2022
Three Months Ended | |||||||
2022 | 2021 | ||||||
Selected Key Operating Metrics: | |||||||
Gold ounces sold (1) | 641,000 | 772,000 | |||||
Silver ounces sold (2) | 37,597,000 | 35,682,000 | |||||
Number of secured loans at period end (3) | 2,271 | 1,881 | |||||
Direct-to-Consumer ("DTC") number of new customers (4) | 48,800 | 69,400 | |||||
Direct-to-Consumer number of active customers (5) | 133,100 | 128,900 | |||||
Direct-to-Consumer number of total customers (6) | 2,013,000 | 1,782,600 | |||||
Direct-to-Consumer average order value ("AOV") (7) | $ | 2,742 | $ | 2,394 | |||
$ | 2,497 | $ | 2,239 | ||||
CyberMetals number of new customers (9) | 5,200 | - | |||||
CyberMetals number of active customers (10) | 2,800 | - | |||||
CyberMetals number of total customers (11) | 5,900 | - | |||||
CyberMetals customer assets under management (12) | $ | 3,700,000 | $ | - | |||
(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 (includes JMB, GLI and PMPP). | |||||||
(5) DTC number of active customers represents the number of customers that have made a purchase during the period within the Direct-to-Consumer segment. | |||||||
(6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment. | |||||||
(7) DTC AOV represents the average dollar value of third-party product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment. | |||||||
(8) JMB AOV represents the average dollar value of third-party product orders delivered to JMB's customers during the period. | |||||||
(9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or 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 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. |
Full Year 2022 Operational Highlights
- Gold ounces sold for the fiscal year ended
June 30, 2022 decreased 3% to 2,668,000 ounces from 2,743,000 ounces for the fiscal year endedJune 30, 2021
- Silver ounces sold for the fiscal year ended
June 30, 2022 increased 16% to 132.2 million ounces from 114.3 million ounces for the fiscal year endedJune 30, 2021 - Direct-to-Consumer new customers for the fiscal year ended
June 30, 2022 increased 146,100, or 173% to 230,400 from 84,300 for the fiscal year endedJune 30, 2021 , reflecting the first full year of ownership ofJM Bullion - Direct-to-Consumer active customers for the fiscal year ended
June 30, 2022 increased 456,000, or 272% to 623,700 from 167,700 for the fiscal year endedJune 30, 2021 , reflecting the first full year of ownership ofJM Bullion - Direct-to-Consumer total customers as of
June 30, 2022 increased 230,400, or 13% to 2,013,000 from 1,782,600 as ofJune 30, 2021 - Direct-to-Consumer average order value for the fiscal year ended
June 30, 2022 decreased$253 , or 9% to$2,520 from$2,773 for the fiscal year endedJune 30, 2021 , with JMB’s contribution for the post acquisition period - JM Bullion’s average order value for the fiscal year ended
June 30, 2022 increased$86 , or 4% to$2,328 from$2,242 for the post acquisition period during the fiscal year endedJune 30, 2021
Years Ended | |||||||
2022 | 2021 | ||||||
Selected Key Operating Metrics: | |||||||
Gold ounces sold (1) | 2,668,000 | 2,743,000 | |||||
Silver ounces sold (2) | 132,209,000 | 114,275,000 | |||||
Number of secured loans at period end (3) | 2,271 | 1,881 | |||||
Direct-to-Consumer ("DTC") number of new customers (4) | 230,400 | 84,300 | |||||
Direct-to-Consumer number of active customers (5) | 623,700 | 167,700 | |||||
Direct-to-Consumer number of total customers (6) | 2,013,000 | 1,782,600 | |||||
Direct-to-Consumer average order value ("AOV") (7) | $ | 2,520 | $ | 2,773 | |||
$ | 2,328 | $ | 2,242 | ||||
CyberMetals number of new customers (9) | 5,900 | - | |||||
CyberMetals number of active customers (10) | 3,000 | - | |||||
CyberMetals number of total customers (11) | 5,900 | - | |||||
CyberMetals customer assets under management (12) | $ | 3,700,000 | $ | - | |||
(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 (includes JMB, GLI and PMPP). | |||||||
(5) DTC number of active customers represents the number of customers that have made a purchase during the period within the Direct-to-Consumer segment. | |||||||
(6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment. | |||||||
(7) DTC AOV represents the average dollar value of third-party product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment. | |||||||
(8) JMB AOV represents the average dollar value of third-party product orders delivered to JMB's customers during the period. | |||||||
(9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or 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 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 Fourth Quarter 2022 Financial Highlights
- Revenues for the three months ended
June 30, 2022 decreased 4% to$2.09 billion from$2.18 billion for the three months endedJune 30, 2021 and decreased 1% from$2.11 billion for the three months endedMarch 31, 2022 - Gross profit for the three months ended
June 30, 2022 decreased 22% to$67.8 million from$87.1 million for the three months endedJune 30, 2021 and decreased 6% from$72.1 million for the three months endedMarch 31, 2022 - Gross profit margin for the three months ended
June 30, 2022 decreased to 3.24% of revenue, from 4.00% of revenue for the three months endedJune 30, 2021 , and decreased from 3.42% of revenue for the three months endedMarch 31, 2022 - Net income attributable to the Company for the three months ended
June 30, 2022 decreased 27% to$37.3 million from$51.0 million for the three months endedJune 30, 2021 , and was comparable to net income attributable to the Company of$37.4 million for the three months endedMarch 31, 2022 - Diluted earnings per share totaled
$1.52 for the three months endedJune 30, 2022 , a 29% decrease compared to$2.14 for the three months endedJune 30, 2021 , adjusted for the effect of the two-for-one stock split that occurred inJune 2022 , and decreased 0.7% from$1.53 for the three months endedMarch 31, 2022 , adjusted for the effect of the two-for-one stock split that occurred inJune 2022 - Adjusted net income before provision for income taxes, depreciation, amortization, acquisition costs and remeasurement gain (“Adjusted net income before provision for income taxes” or “Adjusted net income”), a non-GAAP financial measure, for the three months ended
June 30, 2022 decreased 30% to$50.6 million from$72.3 million for the three months endedJune 30, 2021 , and decreased 7% from$54.3 million for the three months endedMarch 31, 2022 - Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP liquidity measure, for the three months ended
June 30, 2022 decreased 30% to$50.3 million from$72.3 million for the three months endedJune 30, 2021 , and decreased 6% from$53.6 million for the three months endedMarch 31, 2022
Three Months Ended | |||||||||
2022 | 2021 | ||||||||
(in thousands, except Earnings per Share and Weighted Average Shares Outstanding) | |||||||||
Selected Key Financial Statement Metrics: | |||||||||
Revenues | $ | 2,089,804 | $ | 2,178,666 | |||||
Gross profit | $ | 67,750 | $ | 87,131 | |||||
Depreciation and amortization expense | $ | (3,223 | ) | $ | (8,294 | ) | |||
Net income attributable to the Company | $ | 37,336 | $ | 51,005 | |||||
Earnings per Share (1): | |||||||||
Basic | $ | 1.62 | $ | 2.28 | |||||
Diluted | $ | 1.52 | $ | 2.14 | |||||
Weighted Average Shares Outstanding (1): | |||||||||
Basic | 23,085,500 | 22,343,800 | |||||||
Diluted | 24,494,100 | 23,831,400 | |||||||
Non-GAAP Financial Measures: | |||||||||
Adjusted net income before provision for income taxes | $ | 50,628 | $ | 72,298 | |||||
EBITDA | $ | 50,254 | $ | 72,264 | |||||
(1) Q4 FY 2021 is retroactively adjusted for the effect of the | |||||||||
Fiscal Fourth Quarter 2022 Financial Summary
Revenues decreased 4% to
The Direct-to-Consumer segment contributed 23% and 30% of the consolidated revenue in the fiscal fourth quarters of 2022 and 2021, respectively. JMB’s revenue represented 21% of the consolidated revenues for the fiscal fourth quarter of 2022 compared with 28% for the prior year fiscal fourth quarter.
Gross profit decreased 22% to
Selling, general, and administrative expenses increased 24% to
Depreciation and amortization expense decreased 61% to
Interest income increased 8% to
Interest expense increased 10% to
Earnings from equity method investments increased 57% to
Net income attributable to the Company totaled
Adjusted net income for the three months ended
EBITDA for the three months ended
Full Year 2022 Financial Highlights
- Revenues for the fiscal year ended
June 30, 2022 increased 7% to$8.16 billion from$7.61 billion for the fiscal year endedJune 30, 2021 - Gross profit for the fiscal year ended
June 30, 2022 increased 25% to$261.8 million from$210.2 million for the fiscal year endedJune 30, 2021 - Gross profit margin for the fiscal year ended
June 30, 2022 increased to 3.21% of revenue, from 2.76% of revenue for the fiscal year endedJune 30, 2021 - Net income attributable to the Company for the fiscal year ended
June 30, 2022 decreased 17% to$132.5 million from$159.6 million for fiscal year endedJune 30, 2021 - Diluted earnings per share totaled
$5.45 for the fiscal year endedJune 30, 2022 , a 39% decrease compared to$8.90 for the fiscal year endedJune 30, 2021 , adjusted for the effect of the two-for-one stock split that occurred inJune 2022 - Adjusted net income for the fiscal year ended
June 30, 2022 totaled$195.0 million , an increase of 8% from$179.9 million for the fiscal year endedJune 30, 2021 - EBITDA for the fiscal year ended
June 30, 2022 totaled$193.9 million , a decrease of 5% from$205 million for the fiscal year endedJune 30, 2021
Years Ended | |||||||||
2022 | 2021 | ||||||||
(in thousands, except Earnings per Share and Weighted Average Shares Outstanding) | |||||||||
Selected Key Financial Statement Metrics: | |||||||||
Revenues | $ | 8,159,254 | $ | 7,613,015 | |||||
Gross profit | $ | 261,765 | $ | 210,198 | |||||
Depreciation and amortization expense | $ | (27,300 | ) | $ | (10,789 | ) | |||
Remeasurement gain on pre-existing equity interest (1) | $ | - | $ | 26,306 | |||||
Net income attributable to the Company | $ | 132,536 | $ | 159,637 | |||||
Earnings per Share (2): | |||||||||
Basic | $ | 5.81 | $ | 9.57 | |||||
Diluted | $ | 5.45 | $ | 8.90 | |||||
Weighted Average Shares Outstanding (2): | |||||||||
Basic | 22,805,600 | 16,686,600 | |||||||
Diluted | 24,329,500 | 17,944,600 | |||||||
Non-GAAP Financial Measures: | |||||||||
Adjusted net income before provision for income taxes | $ | 195,000 | $ | 179,860 | |||||
EBITDA | $ | 193,909 | $ | 204,981 | |||||
(1) Recognized during fiscal year 2021 in connection with the acquisition of | |||||||||
(2) Fiscal Year 2021 is retroactively adjusted for the effect of the | |||||||||
Full Year 2022 Financial Summary
Revenues increased 7% to
The Direct-to-Consumer segment contributed 26% and 11% of the consolidated revenue in the fiscal year ended
Gross profit increased 25% to
Selling, general and administrative expenses increased 60% to
Depreciation and amortization expense increased 153% to
Interest income increased 18% to
Interest expense increased 11% to
Earnings from equity method investments decreased 56% to
Net income attributable to the Company decreased
Earnings per diluted share totaled
Adjusted net income before provision for income taxes for fiscal year 2022 totaled
EBITDA for fiscal year 2022 totaled
Management Commentary
“Our fiscal year 2022 marked another impressive year of financial performance and progress in growing our industry-leading fully integrated precious metals platform,” said A-Mark CEO
“Our fourth quarter also had some notable highlights with 31.9 million ounces of silver sold within our Wholesale Sales and Ancillary Services segment and production at SilverTowne Mint exceeding 11.4 million ounces, more than the Mint has produced in any recent full year. Fiscal 2022 was our first year of full ownership of the Mint and combined with our strategic partnership with Sunshine Minting, we benefitted greatly throughout the year from a steady source of product during periods of supply constraints.
“Reflecting on the year, I am proud of our many accomplishments: further integrating
“We continue to evaluate opportunities to expand our geographic presence and market reach while creating value for our stockholders. We remain optimistic that our industry-leading fully integrated precious metals platform and proven business model will allow us to realize growth and profitability over the long term.”
Dividends
Special Dividend
A-Mark’s Board of Directors has declared a non-recurring special cash dividend of
Adoption of Quarterly Cash Dividend Policy
A-Mark’s Board of Directors has adopted a regular quarterly cash dividend policy of
Conference Call
A-Mark will hold a conference call today (
To participate, please dial the appropriate number at least five minutes prior to the start time and ask for the
International number: 1-973-528-0011
Conference ID: 991286
The conference call will be webcast simultaneously and available for replay through this link: https://www.webcaster4.com/Webcast/Page/2867/46338
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
Conference ID: 46338
About A-Mark Precious Metals
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 subsidiaries, Collateral Finance Corporation (CFC) and AM Capital Funding. Founded in 2005, CFC is a California licensed finance lender that originates and acquires loans secured by bullion and numismatic coins. Its customers include coin and precious metal dealers, investors and collectors. AM Capital Funding was formed in 2018 for the purpose of securitizing eligible secured loans of CFC.
A-Mark is headquartered in
Important Cautions Regarding Forward-Looking Statements
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These include statements regarding future macroeconomic conditions and demand for precious metal products, and the Company’s ability to effectively respond to changing economic conditions. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results or circumstances to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: the failure to execute the Company’s growth strategy; greater than anticipated costs incurred to execute this strategy; changes in the current international political climate, which has favorably contributed to demand and volatility in the precious metals markets; potential adverse effects of the current problems in the national and global supply chains; increased competition for the Company’s higher margin services, which could depress pricing; the failure of the Company’s business model to respond to changes in the market environment as anticipated; changes in consumer demand and preferences for precious metal products generally; potential negative effects that inflationary pressure may have on our business; the failure of our investee companies to maintain, or address the preferences of, their customer bases; general risks of doing business in the commodity markets; the continued 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 and other Risk Factors described in in the Company’s public filings with the
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 and Liquidity 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:
Gateway Investor Relations
1-949-574-3860
AMRK@gatewayIR.com
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except for share data)
2022 | 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 37,783 | $ | 101,405 | ||||
Receivables, net | 97,040 | 89,000 | ||||||
Derivative assets | 91,743 | 44,536 | ||||||
Secured loans receivable | 126,217 | 112,968 | ||||||
Precious metals held under financing arrangements | 79,766 | 154,742 | ||||||
Inventories: | ||||||||
Inventories | 458,347 | 256,991 | ||||||
Restricted inventories | 282,671 | 201,028 | ||||||
741,018 | 458,019 | |||||||
Prepaid expenses and other assets | 7,558 | 3,557 | ||||||
Total current assets | 1,181,125 | 964,227 | ||||||
Operating lease right of use assets | 6,482 | 5,702 | ||||||
Property, plant, and equipment, net | 9,845 | 8,609 | ||||||
100,943 | 100,943 | |||||||
Intangibles, net | 67,965 | 93,633 | ||||||
Long-term investments | 70,828 | 18,467 | ||||||
Other long-term assets | 5,471 | — | ||||||
Total assets | $ | 1,442,659 | $ | 1,191,581 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Lines of credit | $ | 215,000 | $ | 185,000 | ||||
Liabilities on borrowed metals | 59,417 | 91,866 | ||||||
Product financing arrangements | 282,671 | 201,028 | ||||||
Accounts payable and other payables | 6,127 | 5,935 | ||||||
Deferred revenue and other advances | 175,545 | 194,416 | ||||||
Derivative liabilities | 75,780 | 7,539 | ||||||
Accrued liabilities | 21,813 | 18,785 | ||||||
Income tax payable | 382 | 5,016 | ||||||
Total current liabilities | 836,735 | 709,585 | ||||||
Notes payable | 94,073 | 93,249 | ||||||
Deferred tax liabilities | 15,408 | 19,514 | ||||||
Other liabilities | 5,972 | 5,291 | ||||||
Total liabilities | 952,188 | 827,639 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, and outstanding: none as of | — | — | ||||||
Common stock, par value and 22,459,314 shares issued and outstanding as of and | 234 | 113 | ||||||
Additional paid-in capital | 166,526 | 150,420 | ||||||
Retained earnings | 321,849 | 212,090 | ||||||
488,609 | 362,623 | |||||||
Noncontrolling interests | 1,862 | 1,319 | ||||||
Total stockholders’ equity | 490,471 | 363,942 | ||||||
Total liabilities, noncontrolling interests and stockholders’ equity | $ | 1,442,659 | $ | 1,191,581 |
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share data)
Years Ended | |||||||||
2022 | 2021 | ||||||||
Revenues | $ | 8,159,254 | $ | 7,613,015 | |||||
Cost of sales | 7,897,489 | 7,402,817 | |||||||
Gross profit | 261,765 | 210,198 | |||||||
Selling, general, and administrative expenses | (76,618 | ) | (48,020 | ) | |||||
Depreciation and amortization expense | (27,300 | ) | (10,789 | ) | |||||
Interest income | 21,800 | 18,474 | |||||||
Interest expense | (21,992 | ) | (19,865 | ) | |||||
Earnings from equity method investments | 6,907 | 15,547 | |||||||
Other income, net | 1,953 | 1,079 | |||||||
Remeasurement gain on pre-existing equity interest | — | 26,306 | |||||||
Unrealized losses on foreign exchange | (98 | ) | (129 | ) | |||||
Net income before provision for income taxes | 166,417 | 192,801 | |||||||
Income tax expense | (33,338 | ) | (31,877 | ) | |||||
Net income | 133,079 | 160,924 | |||||||
Net income attributable to noncontrolling interests | 543 | 1,287 | |||||||
Net income attributable to the Company | $ | 132,536 | $ | 159,637 | |||||
Basic and diluted net income per share attributable to | |||||||||
Basic | $ | 5.81 | $ | 9.57 | |||||
Diluted | $ | 5.45 | $ | 8.90 | |||||
Weighted average shares outstanding: | |||||||||
Basic | 22,805,600 | 16,686,600 | |||||||
Diluted | 24,329,500 | 17,944,600 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
Years Ended | 2022 | 2021 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 133,079 | $ | 160,924 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 27,300 | 10,789 | ||||||
Amortization of loan cost | 2,651 | 2,162 | ||||||
Deferred income taxes | (4,106 | ) | (2,034 | ) | ||||
Interest added to principal of secured loans | (14 | ) | (13 | ) | ||||
Share-based compensation | 2,140 | 1,173 | ||||||
Write-down of digital assets | 229 | — | ||||||
Remeasurement gain on pre-existing equity method investment | — | (26,306 | ) | |||||
Earnings from equity method investments | (6,907 | ) | (15,547 | ) | ||||
Dividends received from equity method investees | 1,678 | 343 | ||||||
Changes in assets and liabilities: | ||||||||
Receivables | (8,040 | ) | (20,880 | ) | ||||
Secured loans receivable | 757 | 1,932 | ||||||
Secured loans made to affiliates | 3,042 | 5,755 | ||||||
Derivative assets | (47,207 | ) | 7,447 | |||||
Precious metals held under financing arrangements | 74,976 | 23,835 | ||||||
Inventories | (282,999 | ) | (79,031 | ) | ||||
Prepaid expenses and other assets | (649 | ) | (7 | ) | ||||
Accounts payable and other payables | 192 | (86,097 | ) | |||||
Deferred revenue and other advances | (18,871 | ) | 58,651 | |||||
Derivative liabilities | 68,241 | (20,194 | ) | |||||
Liabilities on borrowed metals | (32,449 | ) | (76,340 | ) | ||||
Accrued liabilities | 2,425 | 5,686 | ||||||
Income tax payable | (4,634 | ) | (4,902 | ) | ||||
Net cash used in operating activities | (89,166 | ) | (52,654 | ) | ||||
Cash flows from investing activities: | ||||||||
Capital expenditures for property, plant, and equipment | (2,879 | ) | (2,113 | ) | ||||
Purchase of long-term investments | (34,950 | ) | (7,996 | ) | ||||
Purchase of an option to acquire long-term investments | (5,300 | ) | — | |||||
Secured loans receivable, net | (17,034 | ) | (56,932 | ) | ||||
Acquisition of remaining noncontrolling equity interest in joint venture | — | (1,950 | ) | |||||
Purchase of digital assets | (400 | ) | — | |||||
Redemption associated with acquisition of pre-existing equity method investment | — | 17,457 | ||||||
Incremental acquisition of pre-existing equity method investment, net of cash | — | (78,859 | ) | |||||
Net cash used in investing activities | (60,563 | ) | (130,393 | ) | ||||
Cash flows from financing activities: | ||||||||
Product financing arrangements, net | 81,643 | 126,350 | ||||||
Dividends paid | (22,645 | ) | (21,191 | ) | ||||
Borrowings and repayments under lines of credit, net | 30,000 | 50,000 | ||||||
Debt funding issuance costs | (5,179 | ) | (1,861 | ) | ||||
Net proceeds from the issuance of common stock | — | 75,344 | ||||||
Net settlement on issuance of common shares on exercise of options | 2,288 | 3,485 | ||||||
Net cash provided by financing activities | 86,107 | 232,127 | ||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (63,622 | ) | 49,080 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 101,405 | 52,325 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 37,783 | $ | 101,405 |
Overview of Results of Operations for the Three Months Ended
Consolidated Results of Operations
The operating results for the three months ended
in thousands, except per share data | |||||||||||||||||||||
Three Months Ended | 2022 | 2021 | $ | % | |||||||||||||||||
$ | % of revenue | $ | % of revenue | Increase/ (decrease) | Increase/ (decrease) | ||||||||||||||||
Revenues | $ | 2,089,804 | 100.000 | % | $ | 2,178,666 | 100.000 | % | $ | (88,862 | ) | (4.1 | %) | ||||||||
Gross profit | 67,750 | 3.242 | % | 87,131 | 3.999 | % | $ | (19,381 | ) | (22.2 | %) | ||||||||||
Selling, general, and administrative expenses | (20,734 | ) | (0.992 | %) | (16,693 | ) | (0.766 | %) | $ | 4,041 | 24.2 | % | |||||||||
Depreciation and amortization expense | (3,223 | ) | (0.154 | %) | (8,294 | ) | (0.381 | %) | $ | (5,071 | ) | (61.1 | %) | ||||||||
Interest income | 5,675 | 0.272 | % | 5,234 | 0.240 | % | $ | 441 | 8.4 | % | |||||||||||
Interest expense | (5,695 | ) | (0.273 | %) | (5,200 | ) | (0.239 | %) | $ | 495 | 9.5 | % | |||||||||
Earnings from equity method investments | 2,590 | 0.124 | % | 1,648 | 0.076 | % | $ | 942 | 57.2 | % | |||||||||||
Other income, net | 618 | 0.030 | % | 176 | 0.008 | % | $ | 442 | 251.1 | % | |||||||||||
Unrealized gains on foreign exchange | 30 | 0.001 | % | 2 | 0.000 | % | $ | 28 | 1,400.0 | % | |||||||||||
Net income before provision for income taxes | 47,011 | 2.250 | % | 64,004 | 2.938 | % | $ | (16,993 | ) | (26.5 | %) | ||||||||||
Income tax expense | (9,541 | ) | (0.457 | %) | (12,933 | ) | (0.594 | %) | $ | (3,392 | ) | (26.2 | %) | ||||||||
Net income | 37,470 | 1.793 | % | 51,071 | 2.344 | % | $ | (13,601 | ) | (26.6 | %) | ||||||||||
Net income attributable to noncontrolling interests | 134 | 0.006 | % | 66 | 0.003 | % | $ | 68 | 103.0 | % | |||||||||||
Net income attributable to the Company | $ | 37,336 | 1.787 | % | $ | 51,005 | 2.341 | % | $ | (13,669 | ) | (26.8 | %) | ||||||||
Basic and diluted net income per share attributable to | |||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||
Basic | $ | 1.62 | $ | 2.28 | $ | (0.66 | ) | (28.9 | %) | ||||||||||||
Diluted | $ | 1.52 | $ | 2.14 | $ | (0.62 | ) | (29.0 | %) | ||||||||||||
Overview of Results of Operations for the Three Months Ended
Consolidated Results of Operations
The operating results for the three months ended
in thousands, except per share data | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
$ | % | ||||||||||||||||||||
$ | % of revenue | $ | % of revenue | Increase/ (decrease) | Increase/ (decrease) | ||||||||||||||||
Revenues | $ | 2,089,804 | 100.000 | % | $ | 2,109,115 | 100.000 | % | $ | (19,311 | ) | (0.9 | %) | ||||||||
Gross profit | 67,750 | 3.242 | % | 72,083 | 3.418 | % | $ | (4,333 | ) | (6.0 | %) | ||||||||||
Selling, general, and administrative expenses | (20,734 | ) | (0.992 | )% | (20,494 | ) | (0.972 | )% | $ | 240 | 1.2 | % | |||||||||
Depreciation and amortization expense | (3,223 | ) | (0.154 | )% | (7,548 | ) | (0.358 | )% | $ | (4,325 | ) | (57.3 | %) | ||||||||
Interest income | 5,675 | 0.272 | % | 5,343 | 0.253 | % | $ | 332 | 6.2 | % | |||||||||||
Interest expense | (5,695 | ) | (0.273 | )% | (5,429 | ) | (0.257 | )% | $ | 266 | 4.9 | % | |||||||||
Earnings from equity method investments | 2,590 | 0.124 | % | 1,608 | 0.076 | % | $ | 982 | 61.1 | % | |||||||||||
Other income, net | 618 | 0.030 | % | 493 | 0.023 | % | $ | 125 | 25.4 | % | |||||||||||
Unrealized gains (losses) on foreign exchange | 30 | 0.001 | % | (135 | ) | (0.006 | )% | $ | 165 | 122.2 | % | ||||||||||
Net income before provision for income taxes | 47,011 | 2.250 | % | 45,921 | 2.177 | % | $ | 1,090 | 2.4 | % | |||||||||||
Income tax expense | (9,541 | ) | (0.457 | )% | (8,375 | ) | (0.397 | )% | $ | 1,166 | 13.9 | % | |||||||||
Net income | 37,470 | 1.793 | % | 37,546 | 1.780 | % | $ | (76 | ) | (0.2 | %) | ||||||||||
Net income attributable to non-controlling interests | 134 | 0.006 | % | 164 | 0.008 | % | $ | (30 | ) | (18.3 | %) | ||||||||||
Net income attributable to the Company | $ | 37,336 | 1.787 | % | $ | 37,382 | 1.772 | % | $ | (46 | ) | (0.1 | %) | ||||||||
Basic and diluted net income per share attributable to | |||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||
Basic | $ | 1.62 | $ | 1.64 | $ | (0.02 | ) | (1.2 | %) | ||||||||||||
Diluted | $ | 1.52 | $ | 1.53 | $ | (0.01 | ) | (0.7 | %) |
Overview of Results of Operations for the Fiscal Years Ended
Consolidated Results of Operations
The operating results for the fiscal years ended
in thousands, except per share data | |||||||||||||||||||||
Years Ended | 2022 | 2021 | $ | % | |||||||||||||||||
$ | % of revenue | $ | % of revenue | Increase/ (decrease) | Increase/ (decrease) | ||||||||||||||||
Revenues | $ | 8,159,254 | 100.000 | % | $ | 7,613,015 | 100.000 | % | $ | 546,239 | 7.2 | % | |||||||||
Gross profit | 261,765 | 3.208 | % | 210,198 | 2.761 | % | $ | 51,567 | 24.5 | % | |||||||||||
Selling, general, and administrative expenses | (76,618 | ) | (0.939 | %) | (48,020 | ) | (0.631 | %) | $ | 28,598 | 59.6 | % | |||||||||
Depreciation and amortization expense | (27,300 | ) | (0.335 | %) | (10,789 | ) | (0.142 | %) | $ | 16,511 | 153.0 | % | |||||||||
Interest income | 21,800 | 0.267 | % | 18,474 | 0.243 | % | $ | 3,326 | 18.0 | % | |||||||||||
Interest expense | (21,992 | ) | (0.270 | %) | (19,865 | ) | (0.261 | %) | $ | 2,127 | 10.7 | % | |||||||||
Earnings from equity method investments | 6,907 | 0.085 | % | 15,547 | 0.204 | % | $ | (8,640 | ) | (55.6 | %) | ||||||||||
Other income, net | 1,953 | 0.024 | % | 1,079 | 0.014 | % | $ | 874 | 81.0 | % | |||||||||||
Remeasurement gain on pre-existing equity interest | — | — | 26,306 | 0.346 | % | $ | (26,306 | ) | (100.0 | %) | |||||||||||
Unrealized losses on foreign exchange | (98 | ) | (0.001 | %) | (129 | ) | (0.002 | %) | $ | (31 | ) | (24.0 | %) | ||||||||
Net income before provision for income taxes | 166,417 | 2.040 | % | 192,801 | 2.533 | % | $ | (26,384 | ) | (13.7 | %) | ||||||||||
Income tax expense | (33,338 | ) | (0.409 | %) | (31,877 | ) | (0.419 | %) | $ | 1,461 | 4.6 | % | |||||||||
Net income | 133,079 | 1.631 | % | 160,924 | 2.114 | % | $ | (27,845 | ) | (17.3 | %) | ||||||||||
Net income attributable to noncontrolling interests | 543 | 0.007 | % | 1,287 | 0.017 | % | $ | (744 | ) | (57.8 | %) | ||||||||||
Net income attributable to the Company | $ | 132,536 | 1.624 | % | $ | 159,637 | 2.097 | % | $ | (27,101 | ) | (17.0 | %) | ||||||||
Basic and diluted net income per share attributable to | |||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||
Basic | $ | 5.81 | $ | 9.57 | $ | (3.76 | ) | (39.3 | %) | ||||||||||||
Diluted | $ | 5.45 | $ | 8.90 | $ | (3.45 | ) | (38.8 | %) | ||||||||||||
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
in thousands | |||||||||||||
Three Months Ended | 2022 | 2021 | $ | % | |||||||||
$ | $ | Increase/ (decrease) | Increase/ (decrease) | ||||||||||
Net income before provision for income taxes | $ | 47,011 | $ | 64,004 | $ | (16,993 | ) | (26.5 | %) | ||||
Adjustments: | |||||||||||||
Acquisition costs | 394 | — | $ | 394 | (— | %) | |||||||
Amortization of acquired intangibles | 2,736 | 7,882 | $ | (5,146 | ) | (65.3 | %) | ||||||
Depreciation expense | 487 | 412 | $ | 75 | 18.2 | % | |||||||
Adjusted net income before provision for income taxes (non-GAAP) | $ | 50,628 | $ | 72,298 | $ | (21,670 | ) | (30.0 | %) |
A reconciliation of net income to EBITDA for the three months ended
in thousands | |||||||||||||||
Three Months Ended | 2022 | 2021 | $ | % | |||||||||||
$ | $ | Increase/ (decrease) | Increase/ (decrease) | ||||||||||||
Net income | $ | 37,470 | $ | 51,071 | $ | (13,601 | ) | (26.6 | %) | ||||||
Adjustments: | |||||||||||||||
Interest income | (5,675 | ) | (5,234 | ) | $ | 441 | 8.4 | % | |||||||
Interest expense | 5,695 | 5,200 | $ | 495 | 9.5 | % | |||||||||
Amortization of acquired intangibles | 2,736 | 7,882 | $ | (5,146 | ) | (65.3 | %) | ||||||||
Depreciation expense | 487 | 412 | $ | 75 | 18.2 | % | |||||||||
Income tax expense | 9,541 | 12,933 | $ | (3,392 | ) | (26.2 | %) | ||||||||
12,784 | 21,193 | $ | (8,409 | ) | (39.7 | %) | |||||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 50,254 | $ | 72,264 | $ | (22,010 | ) | (30.5 | %) | ||||||
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
in thousands | |||||||||||||||
Three Months Ended | |||||||||||||||
$ | % | ||||||||||||||
$ | $ | Increase/ (decrease) | Increase/ (decrease) | ||||||||||||
Net income before provision for income taxes | $ | 47,011 | $ | 45,921 | $ | 1,090 | 2.4 | % | |||||||
Adjustments: | |||||||||||||||
Acquisition costs | 394 | 836 | $ | (442 | ) | (52.9 | %) | ||||||||
Amortization of acquired intangibles | 2,736 | 7,188 | $ | (4,452 | ) | (61.9 | %) | ||||||||
Depreciation expense | 487 | 360 | $ | 127 | 35.3 | % | |||||||||
Adjusted net income before provision for income taxes (non-GAAP) | $ | 50,628 | $ | 54,305 | $ | (3,677 | ) | (6.8 | %) |
A reconciliation of net income to EBITDA for the three months ended
in thousands | Three Months Ended | |||||||||||||||
Three Months Ended | $ | % | ||||||||||||||
$ | $ | Increase/ (decrease) | Increase/ (decrease) | |||||||||||||
Net income | $ | 37,470 | $ | 37,546 | $ | (76 | ) | (0.2 | %) | |||||||
Adjustments: | ||||||||||||||||
Interest income | (5,675 | ) | (5,343 | ) | $ | 332 | 6.2 | % | ||||||||
Interest expense | 5,695 | 5,429 | $ | 266 | 4.9 | % | ||||||||||
Amortization of acquired intangibles | 2,736 | 7,188 | $ | (4,452 | ) | (61.9 | %) | |||||||||
Depreciation expense | 487 | 360 | $ | 127 | 35.3 | % | ||||||||||
Income tax expense | 9,541 | 8,375 | $ | 1,166 | 13.9 | % | ||||||||||
12,784 | 16,009 | $ | (3,225 | ) | (20.1 | %) | ||||||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 50,254 | $ | 53,555 | $ | (3,301 | ) | (6.2 | %) | |||||||
Reconciliation of
A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the fiscal years ended
in thousands | ||||||||||||||
Years Ended | 2022 | 2021 | $ | % | ||||||||||
$ | $ | Increase/ (decrease) | Increase/ (decrease) | |||||||||||
Net income before provision for income taxes | $ | 166,417 | $ | 192,801 | $ | (26,384 | ) | (13.7 | %) | |||||
Adjustments: | ||||||||||||||
Remeasurement gain on pre-existing equity interest | — | (26,306 | ) | $ | (26,306 | ) | (100.0 | %) | ||||||
Acquisition costs | 1,283 | 2,576 | $ | (1,293 | ) | (50.2 | %) | |||||||
Amortization of acquired intangibles | 25,668 | 9,342 | $ | 16,326 | 174.8 | % | ||||||||
Depreciation expense | 1,632 | 1,447 | $ | 185 | 12.8 | % | ||||||||
Adjusted net income before provision for income taxes (non-GAAP) | $ | 195,000 | $ | 179,860 | $ | 15,140 | 8.4 | % |
A reconciliation of net income to EBITDA, and EBITDA to operating cash flows for the fiscal years ended
in thousands | |||||||||||||||
Years Ended | 2022 | 2021 | $ | % | |||||||||||
$ | $ | Increase/ (decrease) | Increase/ (decrease) | ||||||||||||
Net income | $ | 133,079 | $ | 160,924 | $ | (27,845 | ) | (17.3 | %) | ||||||
Adjustments: | |||||||||||||||
Interest income | (21,800 | ) | (18,474 | ) | $ | 3,326 | 18.0 | % | |||||||
Interest expense | 21,992 | 19,865 | $ | 2,127 | 10.7 | % | |||||||||
Amortization of acquired intangibles | 25,668 | 9,342 | $ | 16,326 | 174.8 | % | |||||||||
Depreciation expense | 1,632 | 1,447 | $ | 185 | 12.8 | % | |||||||||
Income tax expense | 33,338 | 31,877 | $ | 1,461 | 4.6 | % | |||||||||
60,830 | 44,057 | $ | 16,773 | 38.1 | % | ||||||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 193,909 | $ | 204,981 | $ | (11,072 | ) | (5.4 | %) | ||||||
Reconciliation of EBITDA to Operating Cash Flows: | |||||||||||||||
Earnings before interest, taxes, depreciation, and amortization | $ | 193,909 | $ | 204,981 | $ | (11,072 | ) | (5.4 | %) | ||||||
Amortization of loan cost | 2,651 | 2,162 | $ | 489 | 22.6 | % | |||||||||
Deferred income taxes | (4,106 | ) | (2,034 | ) | $ | 2,072 | 101.9 | % | |||||||
Interest added to principal of secured loans | (14 | ) | (13 | ) | $ | 1 | 7.7 | % | |||||||
Share-based compensation | 2,140 | 1,173 | $ | 967 | 82.4 | % | |||||||||
Write-down of digital assets | 229 | — | $ | 229 | (— | %) | |||||||||
Remeasurement gain on pre-existing equity method investment | — | (26,306 | ) | $ | (26,306 | ) | (100.0 | %) | |||||||
Earnings from equity method investments | (6,907 | ) | (15,547 | ) | $ | (8,640 | ) | (55.6 | %) | ||||||
Dividends received from equity method investees | 1,678 | 343 | $ | 1,335 | 389.2 | % | |||||||||
Income tax expense | (33,338 | ) | (31,877 | ) | $ | 1,461 | 4.6 | % | |||||||
Interest income | 21,800 | 18,474 | $ | 3,326 | 18.0 | % | |||||||||
Interest expense | (21,992 | ) | (19,865 | ) | $ | 2,127 | 10.7 | % | |||||||
Changes in operating working capital | (245,216 | ) | (184,145 | ) | $ | 61,071 | 33.2 | % | |||||||
Net cash used in operating activities | $ | (89,166 | ) | $ | (52,654 | ) | $ | 36,512 | 69.3 | % | |||||
Cash Flow Data: | |||||||||||||||
Net cash used in operating activities | $ | (89,166 | ) | $ | (52,654 | ) | $ | 36,512 | 69.3 | % | |||||
Net cash used in investing activities | $ | (60,563 | ) | $ | (130,393 | ) | $ | (69,830 | ) | (53.6 | %) | ||||
Net cash provided by financing activities | $ | 86,107 | $ | 232,127 | $ | (146,020 | ) | (62.9 | %) |
Source:
2022 GlobeNewswire, Inc., source