Fiscal Third Quarter 2022 Financial Highlights
- Revenues for the three months ended
March 31, 2022 increased 3% to$2.11 billion from$2.05 billion for the three months endedMarch 31, 2021 and increased 8% from$1.95 billion for the three months endedDecember 31, 2021 - Gross profit for the three months ended
March 31, 2022 increased 6% to$72.1 million from$68.2 million for the three months endedMarch 31, 2021 and increased 9% from$65.9 million for the three months endedDecember 31, 2021 - Gross profit margin for the three months ended
March 31, 2022 increased to 3.42% of revenue, from 3.33% of revenue for the three months endedMarch 31, 2021 , and increased from 3.39% of revenue in the three months endedDecember 31, 2021 - Net income attributable to the Company for the three months ended
March 31, 2022 totaled$37.4 million or$3.06 per diluted share, as compared to net income of$76.6 million or$8.84 per diluted share for the three months endedMarch 31, 2021 , and net income of$31.8 million or$2.61 per diluted share for the three months endedDecember 31, 2021 . Net income attributable to the company for the three months endedMarch 31, 2021 included a$26.3 million remeasurement gain on its pre-existing equity interest in JMB in connection with its acquisition - Adjusted net income before provision for income taxes, depreciation, amortization, acquisition costs and remeasurement gain (“Adjusted net income before provision for income taxes”), a non-GAAP financial measure, for the three months ended
March 31, 2022 totaled$54.3 million , a decrease of$9.9 million compared to$64.2 million for the three months endedMarch 31, 2021 , and an increase of$5.3 million compared to$49.0 million for the three months endedDecember 31, 2021 - Adjusted net income before provision for income taxes per diluted share for the three months ended
March 31, 2022 was$4.45 , as compared to$7.40 for the three months endedMarch 31, 2021 , and$4.02 for the three months endedDecember 31, 2021 - Gold ounces sold in the three months ended
March 31, 2022 decreased 6% to 727,000 ounces from 771,000 ounces for the three months endedMarch 31, 2021 , and increased 15% from 631,000 ounces for the three months endedDecember 31, 2021
- Silver ounces sold in the three months ended
March 31, 2022 increased 4% to 34.5 million ounces from 33.1 million ounces for the three months endedMarch 31, 2021 , and increased 8% from 32.0 million ounces for the three months endedDecember 31, 2021 - As of
March 31, 2022 , the number of secured loans increased 72% to 2,697 from 1,571 as ofMarch 31, 2021 , and increased 13% from 2,393 as ofDecember 31, 2021
Fiscal Third Quarter 2022 Financial Results
Revenues increased 3% to
The Direct-to-Consumer segment contributed 28% and 6% of the consolidated revenue in the fiscal third quarter of 2022 and 2021, respectively. The increase in revenue from the Direct-to-Consumer segment is due primarily to the acquisition of
The number of new customers in the Direct-to-Consumer segment increased 721% to 108,400 from 13,200 in the same year-ago quarter. The number of active customers increased 678% to 284,800 from 36,600 in the same year-ago quarter. The number of total customers as of
Gross profit increased 6% to
Selling, general and administrative expenses increased 54% to
Depreciation and amortization expense increased 407% to
Interest income increased 13% to
Interest expense increased 2% to
Earnings from equity method investments decreased 78% to
Net income attributable to the Company totaled
Net income attributable to the Company for the three months ended
Adjusted net income before provision for income taxes for the three months ended
Adjusted net income before provision for income taxes per diluted share for the three months ended
Fiscal Nine Months 2022 Financial Highlights
- Revenues for the nine months ended
March 31, 2022 increased 12% to$6.07 billion from$5.43 billion for the nine months endedMarch 31, 2021 - Gross profit for the nine months ended
March 31, 2022 increased 58% to$194.0 million from$123.1 million for the nine months endedMarch 31, 2021 - Gross profit margin for the nine months ended
March 31, 2022 increased to 3.20% of revenue, from 2.26% of revenue for the nine months endedMarch 31, 2021 - Net income attributable to the Company for the nine months ended
March 31, 2022 totaled$95.2 million or$7.84 per diluted share, as compared to net income of$108.6 million or$13.61 per diluted share for the nine months endedMarch 31, 2021 . Net income attributable to the Company for the nine months endedMarch 31, 2021 included a$26.3 million remeasurement gain on its pre-existing equity interest in JMB in connection with its acquisition - Adjusted net income before provision for income taxes for the nine months ended
March 31, 2022 totaled$144.4 million , an increase of$36.8 million compared to$107.6 million for the nine months endedMarch 31, 2021 - Adjusted net income before provision for income taxes per diluted share for the nine months ended
March 31, 2022 was$11.89 , as compared to$13.48 for the nine months endedMarch 31, 2021 - Gold ounces sold in the nine months ended
March 31, 2022 increased 3% to 2.03 million ounces from 1.97 million ounces for the nine months endedMarch 31, 2021 - Silver ounces sold in the nine months ended
March 31, 2022 increased 20% to 94.6 million ounces from 78.6 million ounces for the nine months endedMarch 31, 2021
Fiscal Nine Months 2022 Financial Results
Revenues increased 12% to
The Direct-to-Consumer segment contributed 27% and 4% of the consolidated revenue in the nine months ended
The number of new customers in the Direct-to-Consumer segment increased 1,121% to 182,000 from 14,900 in the same year-ago period. The number of active customers increased 1,112% to 492,000 from 40,600 in the same year-ago period. The number of total customers as of
Gross profit increased 58% to
Selling, general and administrative expenses increased 78% to
Depreciation and amortization expense increased 865% to
Interest income increased 22% to
Interest expense increased 11% to
Earnings from equity method investments decreased 69% to
Net income attributable to the Company totaled
Adjusted net income before provision for income taxes totaled
Adjusted net income before provision for income taxes per diluted share for the nine months ended
Management Commentary
“Our third quarter results again demonstrate the strength of our fully integrated precious metals platform as we grew revenue, gross profit and net income sequentially while expanding our gross margin,” said A-Mark CEO
“Gross profit in our Direct-to-Consumer segment increased 12% sequentially quarter over quarter, while we continued to add new customers to our customer base. We believe JMB’s recent launch of CyberMetals, an innovative online platform where customers may purchase fractional ounces of digital gold, silver, platinum, and palladium in a range of denominations, will enhance and accelerate our new precious metals customer acquisition strategy. During JMB’s beta testing of the CyberMetals platform during the quarter, we accumulated 745 new customers, processed 990 trades, and ended the quarter with
“Additionally, our minting business achieved a new record level of production during the quarter, with 1 million ounces produced in a week, and we are contemplating further expansion opportunities for our minting operations given the continued strong demand and performance.
“Last week we announced the signing of a definitive agreement to increase our strategic investment in
Stock Split in the Form of a Dividend
A-Mark also announced today that its board of directors has declared a two-for-one split of A-Mark’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors.
Each stockholder of record at the close of business on
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: 359365
The conference call will be broadcast simultaneously and available for replay via the Investor Relations section of A-Mark’s website at www.amark.com. If you have any difficulty connecting with the conference call or webcast, please contact A-Mark’s investor relations team at 1-949-574-3860.
A replay of the call will be available after
Toll-free replay number: 1-877-481-4010
International replay number: 1-919-882-2331
Conference ID: 45253
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 as planned; greater than anticipated costs incurred to execute this strategy; changes in the current international political climate which has favorably contributed to demand and volatility in the precious metals markets; increased competition for the Company’s higher margin services, which could depress pricing; the failure of the Company’s business model to respond to changes in the market environment as anticipated; changes in consumer demand and preferences for precious metal products generally; the inability to satisfy the conditions to the closing of the Silver Gold Bull investment; the failure of Silver Gold Bull to maintain its unique customer base or changes in the buying preferences of this customer base; the failure otherwise to achieve anticipated benefits of the investment; general risks of doing business in the commodity markets; the effects of the COVID-19 pandemic and the eventual return to normalized business and economic conditions; and the strategic, business, economic, financial, political and governmental risks described in in the Company’s public filings with the
Use and Reconciliation of Non-GAAP Financial Measures
In addition to presenting the Company’s financial results determined in accordance with
In the Company’s reconciliation from its reported
Management encourages investors and others to review the Company’s financial information in its entirety and not to rely on any single financial measure.
Company Contact:
1-310-587-1410
sreiner@amark.com
Investor Relations Contact:
Gateway Investor Relations
1-949-574-3860
AMRK@gatewayIR.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except for share data) (unaudited)
2022 | 2021 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | 28,549 | $ | 101,405 | |||
Receivables, net | 65,636 | 89,000 | |||||
Derivative assets | 25,973 | 44,536 | |||||
Secured loans receivable | 145,838 | 112,968 | |||||
Precious metals held under financing arrangements | 87,450 | 154,742 | |||||
Inventories: | |||||||
Inventories | 564,816 | 256,991 | |||||
Restricted inventories | 199,447 | 201,028 | |||||
764,263 | 458,019 | ||||||
Prepaid expenses and other assets | 8,188 | 3,557 | |||||
Total current assets | 1,125,897 | 964,227 | |||||
Operating lease right of use assets | 6,774 | 5,702 | |||||
Property, plant, and equipment, net | 9,542 | 8,609 | |||||
100,943 | 100,943 | ||||||
Intangibles, net | 70,716 | 93,633 | |||||
Long-term investments | 32,511 | 18,467 | |||||
Other long-term assets | 200 | — | |||||
Total assets | $ | 1,346,583 | $ | 1,191,581 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Lines of credit | $ | 255,000 | $ | 185,000 | |||
Liabilities on borrowed metals | 67,824 | 91,866 | |||||
Product financing arrangements | 199,447 | 201,028 | |||||
Accounts payable and other payables | 26,175 | 5,935 | |||||
Deferred revenue and other advances | 193,081 | 194,416 | |||||
Derivative liabilities | 24,783 | 7,539 | |||||
Accrued liabilities | 21,399 | 18,785 | |||||
Income tax payable | 268 | 5,016 | |||||
Total current liabilities | 787,977 | 709,585 | |||||
Notes payable | 93,859 | 93,249 | |||||
Deferred tax liabilities | 14,951 | 19,514 | |||||
Other liabilities | 6,304 | 5,291 | |||||
Total liabilities | 903,091 | 827,639 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, | — | — | |||||
Common stock, par value | 116 | 113 | |||||
Additional paid-in capital | 156,997 | 150,420 | |||||
Retained earnings | 284,651 | 212,090 | |||||
441,764 | 362,623 | ||||||
Noncontrolling interests | 1,728 | 1,319 | |||||
Total stockholders’ equity | 443,492 | 363,942 | |||||
Total liabilities, noncontrolling interests and stockholders’ equity | $ | 1,346,583 | $ | 1,191,581 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share data) (unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenues | $ | 2,109,115 | $ | 2,049,489 | $ | 6,069,450 | $ | 5,434,349 | ||||||||
Cost of sales | 2,037,032 | 1,981,318 | 5,875,435 | 5,311,282 | ||||||||||||
Gross profit | 72,083 | 68,171 | 194,015 | 123,067 | ||||||||||||
Selling, general, and administrative expenses | (20,494 | ) | (13,295 | ) | (55,884 | ) | (31,328 | ) | ||||||||
Depreciation and amortization expense | (7,548 | ) | (1,488 | ) | (24,077 | ) | (2,494 | ) | ||||||||
Interest income | 5,343 | 4,724 | 16,125 | 13,240 | ||||||||||||
Interest expense | (5,429 | ) | (5,335 | ) | (16,297 | ) | (14,665 | ) | ||||||||
Earnings from equity method investments | 1,608 | 7,410 | 4,317 | 13,898 | ||||||||||||
Other income, net | 493 | 340 | 1,335 | 904 | ||||||||||||
Remeasurement gain on pre-existing equity interest | — | 26,306 | — | 26,306 | ||||||||||||
Unrealized losses on foreign exchange | (135 | ) | (53 | ) | (128 | ) | (131 | ) | ||||||||
Net income before provision for income taxes | 45,921 | 86,780 | 119,406 | 128,797 | ||||||||||||
Income tax expense | (8,375 | ) | (9,847 | ) | (23,797 | ) | (18,944 | ) | ||||||||
Net income | 37,546 | 76,933 | 95,609 | 109,853 | ||||||||||||
Net income attributable to noncontrolling interests | 164 | 308 | 409 | 1,221 | ||||||||||||
Net income attributable to the Company | $ | 37,382 | $ | 76,625 | $ | 95,200 | $ | 108,632 | ||||||||
Basic and diluted net income per share attributableto | ||||||||||||||||
Basic | $ | 3.27 | $ | 9.54 | $ | 8.38 | $ | 14.67 | ||||||||
Diluted | $ | 3.06 | $ | 8.84 | $ | 7.84 | $ | 13.61 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 11,429,800 | 8,028,900 | 11,356,400 | 7,403,900 | ||||||||||||
Diluted | 12,212,900 | 8,668,300 | 12,137,600 | 7,980,700 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands) (unaudited)
Nine Months Ended | 2022 | 2021 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 95,609 | $ | 109,853 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 24,077 | 2,494 | ||||||
Amortization of loan cost | 2,089 | 1,661 | ||||||
Deferred income taxes | (4,563 | ) | (1,561 | ) | ||||
Interest added to principal of secured loans | (13 | ) | (9 | ) | ||||
Share-based compensation | 1,628 | 659 | ||||||
Write-down of digital assets | 50 | — | ||||||
Remeasurement gain on pre-existing equity method investment | — | (26,306 | ) | |||||
Earnings from equity method investments | (4,317 | ) | (13,898 | ) | ||||
Changes in assets and liabilities: | ||||||||
Receivables | 23,364 | 3,507 | ||||||
Secured loans receivable | 747 | 3,303 | ||||||
Secured loans made to affiliates | (1,989 | ) | 8,646 | |||||
Derivative assets | 18,563 | (18,342 | ) | |||||
Precious metals held under financing arrangements | 67,292 | 17,589 | ||||||
Inventories | (306,244 | ) | (181,933 | ) | ||||
Prepaid expenses and other assets | (1,923 | ) | (634 | ) | ||||
Accounts payable and other payables | 20,240 | (63,694 | ) | |||||
Deferred revenue and other advances | (1,335 | ) | 64,219 | |||||
Derivative liabilities | 17,244 | (13,113 | ) | |||||
Liabilities on borrowed metals | (24,042 | ) | (58,471 | ) | ||||
Accrued liabilities | 2,569 | 4,258 | ||||||
Income tax payable | (4,748 | ) | 6,324 | |||||
Net cash used in operating activities | (75,702 | ) | (155,448 | ) | ||||
Cash flows from investing activities: | ||||||||
Capital expenditures for property, plant, and equipment | (2,106 | ) | (1,351 | ) | ||||
Purchase of long-term investments | (6,750 | ) | (6,763 | ) | ||||
Secured loans receivable, net | (31,615 | ) | (48,958 | ) | ||||
Purchase of digital assets | (250 | ) | — | |||||
Other secured loans, net | — | 1,000 | ||||||
Incremental acquisition of pre-existing equity method investment, net of cash | — | (62,232 | ) | |||||
Net cash used in investing activities | (40,721 | ) | (118,304 | ) | ||||
Cash flows from financing activities: | ||||||||
Product financing arrangements, net | (1,581 | ) | 175,389 | |||||
Dividends paid | (22,639 | ) | (21,191 | ) | ||||
Borrowings and repayments under lines of credit, net | 70,000 | 30,000 | ||||||
Net proceeds from the issuance of common stock | — | 75,315 | ||||||
Debt funding issuance costs | (4,187 | ) | (1,831 | ) | ||||
Net settlement on issuance of common shares on exercise of options | 1,974 | 2,511 | ||||||
Net cash provided by financing activities | 43,567 | 260,193 | ||||||
Net decrease in cash, cash equivalents, and restricted cash | (72,856 | ) | (13,559 | ) | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 101,405 | 52,325 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 28,549 | $ | 38,766 |
Overview of Results of Operations for the Three Months Ended
Condensed 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 | $ | 2,109,115 | 100.000 | % | $ | 2,049,489 | 100.000 | % | $ | 59,626 | 2.9 | % | ||||||||
Gross profit | 72,083 | 3.418 | % | 68,171 | 3.326 | % | $ | 3,912 | 5.7 | % | ||||||||||
Selling, general, and administrative expenses | (20,494 | ) | (0.972 | %) | (13,295 | ) | (0.649 | %) | $ | 7,199 | 54.1 | % | ||||||||
Depreciation and amortization expense | (7,548 | ) | (0.358 | %) | (1,488 | ) | (0.073 | %) | $ | 6,060 | 407.3 | % | ||||||||
Interest income | 5,343 | 0.253 | % | 4,724 | 0.230 | % | $ | 619 | 13.1 | % | ||||||||||
Interest expense | (5,429 | ) | (0.257 | %) | (5,335 | ) | (0.260 | %) | $ | 94 | 1.8 | % | ||||||||
Earnings from equity method investments | 1,608 | 0.076 | % | 7,410 | 0.362 | % | $ | (5,802 | ) | (78.3 | %) | |||||||||
Other income, net | 493 | 0.023 | % | 340 | 0.017 | % | $ | 153 | 45.0 | % | ||||||||||
Remeasurement gain on pre-existing equity interest | — | — | 26,306 | 1.284 | % | $ | (26,306 | ) | (100.0 | %) | ||||||||||
Unrealized losses on foreign exchange | (135 | ) | (0.006 | %) | (53 | ) | (0.003 | %) | $ | 82 | 154.7 | % | ||||||||
Net income before provision for income taxes | 45,921 | 2.177 | % | 86,780 | 4.234 | % | $ | (40,859 | ) | (47.1 | %) | |||||||||
Income tax expense | (8,375 | ) | (0.397 | %) | (9,847 | ) | (0.480 | %) | $ | (1,472 | ) | (14.9 | %) | |||||||
Net income | 37,546 | 1.780 | % | 76,933 | 3.754 | % | $ | (39,387 | ) | (51.2 | %) | |||||||||
Net income attributable to noncontrolling interests | 164 | 0.008 | % | 308 | 0.015 | % | $ | (144 | ) | (46.8 | %) | |||||||||
Net income attributable to the Company | $ | 37,382 | 1.772 | % | $ | 76,625 | 3.739 | % | $ | (39,243 | ) | (51.2 | %) | |||||||
Basic and diluted net income per share attributable to | ||||||||||||||||||||
Per Share Data: | ||||||||||||||||||||
Basic | $ | 3.27 | $ | 9.54 | $ | (6.27 | ) | (65.7 | %) | |||||||||||
Diluted | $ | 3.06 | $ | 8.84 | $ | (5.78 | ) | (65.4 | %) |
Overview of Results of Operations for the Three Months Ended
Condensed 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 | $ | 2,109,115 | 100.000 | % | $ | 1,946,364 | 100.000 | % | $ | 162,751 | 8.4 | % | ||||||||
Gross profit | 72,083 | 3.418 | % | 65,923 | 3.387 | % | $ | 6,160 | 9.3 | % | ||||||||||
Selling, general, and administrative expenses | (20,494 | ) | (0.972 | )% | (18,713 | ) | (0.961 | )% | $ | 1,781 | 9.5 | % | ||||||||
Depreciation and amortization expense | (7,548 | ) | (0.358 | )% | (8,258 | ) | (0.424 | )% | $ | (710 | ) | (8.6 | %) | |||||||
Interest income | 5,343 | 0.253 | % | 5,251 | 0.270 | % | $ | 92 | 1.8 | % | ||||||||||
Interest expense | (5,429 | ) | (0.257 | )% | (5,395 | ) | (0.277 | )% | $ | 34 | 0.6 | % | ||||||||
Earnings from equity method investments | 1,608 | 0.076 | % | 1,220 | 0.063 | % | $ | 388 | 31.8 | % | ||||||||||
Other income, net | 493 | 0.023 | % | 433 | 0.022 | % | $ | 60 | 13.9 | % | ||||||||||
Unrealized (losses) gains on foreign exchange | (135 | ) | (0.006 | )% | 231 | 0.012 | % | $ | 366 | 158.4 | % | |||||||||
Net income before provision for income taxes | 45,921 | 2.177 | % | 40,692 | 2.091 | % | $ | 5,229 | 12.9 | % | ||||||||||
Income tax expense | (8,375 | ) | (0.397 | )% | (8,753 | ) | (0.450 | )% | $ | (378 | ) | (4.3 | %) | |||||||
Net income | 37,546 | 1.780 | % | 31,939 | 1.641 | % | $ | 5,607 | 17.6 | % | ||||||||||
Net income attributable to non-controlling interests | 164 | 0.008 | % | 145 | 0.007 | % | $ | 19 | 13.1 | % | ||||||||||
Net income attributable to the Company | $ | 37,382 | 1.772 | % | $ | 31,794 | 1.634 | % | $ | 5,588 | 17.6 | % | ||||||||
Basic and diluted net income per share attributable to | ||||||||||||||||||||
Per Share Data: | ||||||||||||||||||||
Basic | $ | 3.27 | $ | 2.79 | $ | 0.48 | 17.2 | % | ||||||||||||
Diluted | $ | 3.06 | $ | 2.61 | $ | 0.45 | 17.2 | % |
Overview of Results of Operations for the Nine Months Ended
Condensed Consolidated Results of Operations
The operating results for the nine months ended
in thousands, except per share data | ||||||||||||||||||||
Nine Months Ended | 2022 | 2021 | $ | % | ||||||||||||||||
$ | % of revenue | $ | % of revenue | Increase/ (decrease) | Increase/ (decrease) | |||||||||||||||
Revenues | $ | 6,069,450 | 100.000 | % | $ | 5,434,349 | 100.000 | % | $ | 635,101 | 11.7 | % | ||||||||
Gross profit | 194,015 | 3.197 | % | 123,067 | 2.265 | % | $ | 70,948 | 57.6 | % | ||||||||||
Selling, general, and administrative expenses | (55,884 | ) | (0.921 | %) | (31,328 | ) | (0.576 | %) | $ | 24,556 | 78.4 | % | ||||||||
Depreciation and amortization expense | (24,077 | ) | (0.397 | %) | (2,494 | ) | (0.046 | %) | $ | 21,583 | 865.4 | % | ||||||||
Interest income | 16,125 | 0.266 | % | 13,240 | 0.244 | % | $ | 2,885 | 21.8 | % | ||||||||||
Interest expense | (16,297 | ) | (0.269 | %) | (14,665 | ) | (0.270 | %) | $ | 1,632 | 11.1 | % | ||||||||
Earnings from equity method investments | 4,317 | 0.071 | % | 13,898 | 0.256 | % | $ | (9,581 | ) | (68.9 | %) | |||||||||
Other income, net | 1,335 | 0.022 | % | 904 | 0.017 | % | $ | 431 | 47.7 | % | ||||||||||
Remeasurement gain on pre-existing equity interest | — | — | 26,306 | 0.484 | % | $ | (26,306 | ) | (100.0 | %) | ||||||||||
Unrealized losses on foreign exchange | (128 | ) | (0.002 | %) | (131 | ) | (0.002 | %) | $ | (3 | ) | (2.3 | %) | |||||||
Net income before provision for income taxes | 119,406 | 1.967 | % | 128,797 | 2.370 | % | $ | (9,391 | ) | (7.3 | %) | |||||||||
Income tax expense | (23,797 | ) | (0.392 | %) | (18,944 | ) | (0.349 | %) | $ | 4,853 | 25.6 | % | ||||||||
Net income | 95,609 | 1.575 | % | 109,853 | 2.021 | % | $ | (14,244 | ) | (13.0 | %) | |||||||||
Net income attributable to noncontrolling interests | 409 | 0.007 | % | 1,221 | 0.022 | % | $ | (812 | ) | (66.5 | %) | |||||||||
Net income attributable to the Company | $ | 95,200 | 1.569 | % | $ | 108,632 | 1.999 | % | $ | (13,432 | ) | (12.4 | %) | |||||||
Basic and diluted net income per share attributable to | ||||||||||||||||||||
Per Share Data: | ||||||||||||||||||||
Basic | $ | 8.38 | $ | 14.67 | $ | (6.29 | ) | (42.9 | %) | |||||||||||
Diluted | $ | 7.84 | $ | 13.61 | $ | (5.77 | ) | (42.4 | %) |
Reconciliation of
A reconciliation of net income before provision for income taxes and diluted net income per share to adjusted net income before provision for income taxes and adjusted net income before provision for income taxes per diluted share for the three months ended
in thousands, except for share and per share data | ||||||||||||||
Three Months Ended | 2022 | 2021 | $ | % | ||||||||||
$ | $ | Increase/ (decrease) | Increase/ (decrease) | |||||||||||
Net income before provision for income taxes | $ | 45,921 | $ | 86,780 | $ | (40,859 | ) | (47.1 | %) | |||||
Adjustments: | ||||||||||||||
Remeasurement gain on pre-existing equity interest | — | (26,306 | ) | $ | (26,306 | ) | (100.0 | %) | ||||||
Acquisition costs | 836 | 2,196 | $ | (1,360 | ) | (61.9 | %) | |||||||
Amortization of acquired intangibles | 7,188 | 1,140 | $ | 6,048 | 530.5 | % | ||||||||
Depreciation expense | 360 | 348 | $ | 12 | 3.4 | % | ||||||||
Adjusted net income before provision for income taxes (non-GAAP) | $ | 54,305 | $ | 64,158 | $ | (9,853 | ) | (15.4 | %) | |||||
Net income per diluted share reconciliation: | ||||||||||||||
Diluted earnings per share | $ | 3.06 | $ | 8.84 | $ | (5.78 | ) | (65.4 | %) | |||||
Non-GAAP adjustments: | ||||||||||||||
Remeasurement gain on pre-existing equity interest | — | (3.03 | ) | $ | (3.03 | ) | (100.0 | %) | ||||||
Acquisition costs | 0.07 | 0.25 | $ | (0.18 | ) | (72.0 | %) | |||||||
Amortization of acquired intangibles | 0.59 | 0.13 | $ | 0.46 | 353.8 | % | ||||||||
Depreciation expense | 0.03 | 0.04 | $ | (0.01 | ) | (25.0 | %) | |||||||
Income tax expense(1) | 0.69 | 1.13 | $ | (0.44 | ) | (38.9 | %) | |||||||
Net income attributable to noncontrolling interests | 0.01 | 0.04 | $ | (0.03 | ) | (75.0 | %) | |||||||
Adjusted net income before provision for income taxes per diluted share (non-GAAP) | $ | 4.45 | $ | 7.40 | $ | (2.95 | ) | (39.9 | %) | |||||
Weighted average shares outstanding: | ||||||||||||||
Diluted | 12,212,900 | 8,668,300 | 3,544,600 | 40.9 | % |
Reconciliation of
A reconciliation of net income before provision for income taxes and diluted net income per share to adjusted net income before provision for income taxes and adjusted net income before provision for income taxes per diluted share for the nine months ended
in thousands, except for share and per share data | ||||||||||||||
Nine Months Ended | 2022 | 2021 | $ | % | ||||||||||
$ | $ | Increase/ (decrease) | Increase/ (decrease) | |||||||||||
Net income before provision for income taxes | $ | 119,406 | $ | 128,797 | $ | (9,391 | ) | (7.3 | %) | |||||
Adjustments: | ||||||||||||||
Remeasurement gain on pre-existing equity interest | — | (26,306 | ) | $ | (26,306 | ) | (100.0 | %) | ||||||
Acquisition costs | 889 | 2,576 | $ | (1,687 | ) | (65.5 | %) | |||||||
Amortization of acquired intangibles | 22,932 | 1,457 | $ | 21,475 | 1,473.9 | % | ||||||||
Depreciation expense | 1,145 | 1,037 | $ | 108 | 10.4 | % | ||||||||
Adjusted net income before provision for income taxes (non-GAAP) | $ | 144,372 | $ | 107,561 | $ | 36,811 | 34.2 | % | ||||||
Net income per diluted share reconciliation: | ||||||||||||||
Diluted earnings per share | $ | 7.84 | $ | 13.61 | $ | (5.77 | ) | (42.4 | %) | |||||
Non-GAAP adjustments: | ||||||||||||||
Remeasurement gain on pre-existing equity interest | — | (3.30 | ) | $ | (3.30 | ) | 100.0 | % | ||||||
Acquisition costs | 0.07 | 0.32 | $ | (0.25 | ) | (78.1 | %) | |||||||
Amortization of acquired intangibles | 1.89 | 0.19 | $ | 1.70 | 894.7 | % | ||||||||
Depreciation expense | 0.09 | 0.13 | $ | (0.04 | ) | (30.8 | %) | |||||||
Income tax expense(1) | 1.97 | 2.38 | $ | (0.41 | ) | (17.2 | %) | |||||||
Net income attributable to noncontrolling interests | 0.03 | 0.15 | $ | (0.12 | ) | (80.0 | %) | |||||||
Adjusted net income before provision for income taxes per diluted share (non-GAAP) | $ | 11.89 | $ | 13.48 | $ | (1.59 | ) | (11.8 | %) | |||||
Weighted average shares outstanding: | ||||||||||||||
Diluted | 12,137,600 | 7,980,700 | 4,156,900 | 52.1 | % |
Source:
2022 GlobeNewswire, Inc., source