Q2 FY 2024 Diluted Earnings Per Share of
Repurchase of 440,092 Common Shares for
Asset Backed Securitization Notes Payable paid off at Maturity
Company reaffirms regular quarterly cash dividend policy of
Management Commentary
“Our second quarter results reflect the strength of our fully-integrated platform to generate profitable results,” said A-Mark CEO
“We continue to explore strategic opportunities, as reflected by our recent M&A activity, and to invest in logistics automation initiatives at our A-Mark Global Logistics (AMGL) facility in
“Our commitment to generating stockholder value remains firm, and we are confident in A-Mark’s diversified and proven business model.”
Fiscal Second Quarter 2024 Operational Highlights
- Gold ounces sold in the three months ended
December 31, 2023 decreased 20% to 450,000 ounces from 565,000 ounces for the three months endedDecember 31, 2022 , and decreased 9% from 495,000 ounces for the three months endedSeptember 30, 2023
- Silver ounces sold in the three months ended
December 31, 2023 decreased 30% to 26.6 million ounces from 38.1 million ounces for the three months endedDecember 31, 2022 , and decreased 13% from 30.4 million ounces for the three months endedSeptember 30, 2023 - As of
December 31, 2023 , the number of secured loans decreased 32% to 715 from 1,049 as ofDecember 31, 2022 , and decreased 11% from 803 as ofSeptember 30, 2023 - As of
December 31, 2023 , secured loans receivable increased 4% to$106.6 million from$102.5 million as ofDecember 31, 2022 , and increased 7% from$99.2 million as ofSeptember 30, 2023 - Direct-to-Consumer new customers for the three months ended
December 31, 2023 decreased 60% to 52,500 from 131,200 for the three months endedDecember 31, 2022 , and increased 34% from 39,100 for the three months endedSeptember 30, 2023 - Direct-to-Consumer active customers for the three months ended
December 31, 2023 increased 17% to 136,400 from 116,400 for the three months endedDecember 31, 2022 , and increased 28% from 106,400 for the three months endedSeptember 30, 2023 - Direct-to-Consumer average order value for the three months ended
December 31, 2023 decreased$171 , or 7% to$2,218 from$2,389 for the three months endedDecember 31, 2022 , and decreased$222 , or 9% from$2,440 for the three months endedSeptember 30, 2023 - JM Bullion’s average order value for the three months ended
December 31, 2023 decreased$177 , or 8% to$2,061 from$2,238 for the three months endedDecember 31, 2022 , and decreased$178 , or 8% from$2,239 for the three months endedSeptember 30, 2023
Three Months Ended | |||||||||
2023 | 2022 | ||||||||
Selected Operating and Financial Metrics: | |||||||||
Gold ounces sold (1) | 450,000 | 565,000 | |||||||
Silver ounces sold (2) | 26,575,000 | 38,137,000 | |||||||
Number of secured loans at period end (3) | 715 | 1,049 | |||||||
Secured loans receivable at period end | $ | 106,565,000 | $ | 102,470,000 | |||||
Direct-to-Consumer ("DTC") number of new customers (4) | 52,500 | 131,200 | |||||||
Direct-to-Consumer number of active customers (5) | 136,400 | 116,400 | |||||||
Direct-to-Consumer number of total customers (6) | 2,439,900 | 2,193,200 | |||||||
Direct-to-Consumer average order value ("AOV") (7) | $ | 2,218 | $ | 2,389 | |||||
$ | 2,061 | $ | 2,238 | ||||||
CyberMetals number of new customers (9) | 1,400 | 4,300 | |||||||
CyberMetals number of active customers (10) | 1,900 | 1,300 | |||||||
CyberMetals number of total customers (11) | 26,200 | 12,500 | |||||||
CyberMetals customer assets under management at period end (12) | $ | 6,500,000 | $ | 5,600,000 | |||||
(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 and Financial Metrics: | |||||||||
Gold ounces sold (1) | 450,000 | 495,000 | |||||||
Silver ounces sold (2) | 26,575,000 | 30,378,000 | |||||||
Number of secured loans at period end (3) | 715 | 803 | |||||||
Secured loans receivable at period end | $ | 106,565,000 | $ | 99,167,000 | |||||
Direct-to-Consumer ("DTC") number of new customers (4) | 52,500 | 39,100 | |||||||
Direct-to-Consumer number of active customers (5) | 136,400 | 106,400 | |||||||
Direct-to-Consumer number of total customers (6) | 2,439,900 | 2,387,400 | |||||||
Direct-to-Consumer average order value ("AOV") (7) | $ | 2,218 | $ | 2,440 | |||||
$ | 2,061 | $ | 2,239 | ||||||
CyberMetals number of new customers (9) | 1,400 | 2,400 | |||||||
CyberMetals number of active customers (10) | 1,900 | 2,500 | |||||||
CyberMetals number of total customers (11) | 26,200 | 24,800 | |||||||
CyberMetals customer assets under management at period end (12) | $ | 6,500,000 | $ | 6,000,000 | |||||
(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 Six Months 2024 Operational Highlights
- Gold ounces sold in the six months ended
December 31, 2023 decreased 21% to 945,000 ounces from 1,194,000 ounces for the six months endedDecember 31, 2022 - Silver ounces sold in the six months ended
December 31, 2023 decreased 23% to 57.0 million ounces from 74.1 million ounces for the six months endedDecember 31, 2022 - Direct-to-Consumer new customers for the six months ended
December 31, 2023 decreased 49% to 91,600 from 180,200 for the six months endedDecember 31, 2022 - Direct-to-Consumer active customers for the six months ended
December 31, 2023 increased 29% to 242,800 from 188,500 for the six months endedDecember 31, 2022 - Direct-to-Consumer average order value for the six months ended
December 31, 2023 decreased$45 , or 2% to$2,316 from$2,361 for the six months endedDecember 31, 2022 - JM Bullion’s average order value for the six months ended
December 31, 2023 decreased$55 , or 3% to$2,140 from$2,195 for the six months endedDecember 31, 2022
Six Months Ended | |||||||||
2023 | 2022 | ||||||||
Selected Operating and Financial Metrics: | |||||||||
Gold ounces sold (1) | 945,000 | 1,194,000 | |||||||
Silver ounces sold (2) | 56,953,000 | 74,054,000 | |||||||
Number of secured loans at period end (3) | 715 | 1,049 | |||||||
Secured loans receivable at period end | $ | 106,565,000 | $ | 102,470,000 | |||||
Direct-to-Consumer ("DTC") number of new customers (4) | 91,600 | 180,200 | |||||||
Direct-to-Consumer number of active customers (5) | 242,800 | 188,500 | |||||||
Direct-to-Consumer number of total customers (6) | 2,439,900 | 2,193,200 | |||||||
Direct-to-Consumer average order value ("AOV") (7) | $ | 2,316 | $ | 2,361 | |||||
$ | 2,140 | $ | 2,195 | ||||||
CyberMetals number of new customers (9) | 3,800 | 6,600 | |||||||
CyberMetals number of active customers (10) | 4,400 | 1,600 | |||||||
CyberMetals number of total customers (11) | 26,200 | 12,500 | |||||||
CyberMetals customer assets under management at period end (12) | $ | 6,500,000 | $ | 5,600,000 | |||||
(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. |
Fiscal Second Quarter 2024 Financial Highlights
- Revenues for the three months ended
December 31, 2023 increased 7% to$2.079 billion from$1.950 billion for the three months endedDecember 31, 2022 and decreased 16% from$2.48 billion for the three months endedSeptember 30, 2023 - Gross profit for the three months ended
December 31, 2023 decreased 28% to$46.0 million from$64.0 million for the three months endedDecember 31, 2022 and decreased 7% from$49.4 million for the three months endedSeptember 30, 2023 - Gross profit margin for the three months ended
December 31, 2023 decreased to 2.21% of revenue, from 3.28% of revenue for the three months endedDecember 31, 2022 , and improved from 1.99% of revenue in the three months endedSeptember 30, 2023 - Net income attributable to the Company for the three months ended
December 31, 2023 decreased 59% to$13.8 million from$33.5 million for the three months endedDecember 31, 2022 , and decreased 27% from$18.8 million for the three months endedSeptember 30, 2023 - Diluted earnings per share totaled
$0.57 for the three months endedDecember 31, 2023 , a 58% decrease compared to$1.35 for the three months endedDecember 31, 2022 , and decreased 26% from$0.77 for the three months endedSeptember 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
December 31, 2023 decreased 53% to$21.7 million from$46.5 million for the three months endedDecember 31, 2022 , and decreased 19% from$26.8 million for the three months endedSeptember 30, 2023 - Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP liquidity measure, for the three months ended
December 31, 2023 decreased 48% to$25.1 million from$48.7 million for the three months endedDecember 31, 2022 , and decreased 18% from$30.4 million for the three months endedSeptember 30, 2023
Three Months Ended | |||||||||
2023 | 2022 | ||||||||
(in thousands, except Earnings per Share) | |||||||||
Selected Key Financial Statement Metrics: | |||||||||
Revenues | $ | 2,078,815 | $ | 1,949,705 | |||||
Gross profit | $ | 46,041 | $ | 63,969 | |||||
Depreciation and amortization expense | $ | (2,811 | ) | $ | (3,260 | ) | |||
Net income attributable to the Company | $ | 13,766 | $ | 33,481 | |||||
Earnings per Share: | |||||||||
Basic | $ | 0.60 | $ | 1.43 | |||||
Diluted | $ | 0.57 | $ | 1.35 | |||||
Non-GAAP Measures (1): | |||||||||
Adjusted net income before provision for income taxes | $ | 21,728 | $ | 46,471 | |||||
EBITDA | $ | 25,096 | $ | 48,659 | |||||
(1) See Reconciliation of | |||||||||
Three Months Ended | |||||||||
(in thousands, except Earnings per Share) | |||||||||
Selected Key Financial Statement Metrics: | |||||||||
Revenues | $ | 2,078,815 | $ | 2,484,618 | |||||
Gross profit | $ | 46,041 | $ | 49,405 | |||||
Depreciation and amortization expense | $ | (2,811 | ) | $ | (2,792 | ) | |||
Net income attributable to the Company | $ | 13,766 | $ | 18,827 | |||||
Earnings per Share: | |||||||||
Basic | $ | 0.60 | $ | 0.81 | |||||
Diluted | $ | 0.57 | $ | 0.77 | |||||
Non-GAAP Measures (1): | |||||||||
Adjusted net income before provision for income taxes | $ | 21,728 | $ | 26,779 | |||||
EBITDA | $ | 25,096 | $ | 30,448 | |||||
(1) See Reconciliation of | |||||||||
Fiscal Six Months 2024 Financial Highlights
- Revenues for the six months ended
December 31, 2023 increased 19% to$4.563 billion from$3.850 billion for the six months endedDecember 31, 2022 - Gross profit for the six months ended
December 31, 2023 decreased 32% to$95.4 million from$140.6 million for the six months endedDecember 31, 2022 - Gross profit margin for the six months ended
December 31, 2023 decreased to 2.09% of revenue, from 3.65% of revenue for the six months endedDecember 31, 2022 - Net income attributable to the Company for the six months ended
December 31, 2023 decreased 59% to$32.6 million from$78.6 million for the six months endedDecember 31, 2022 - Diluted earnings per share totaled
$1.34 for the six months endedDecember 31, 2023 , a 58% decrease compared to$3.18 for the six months endedDecember 31, 2022 - Adjusted net income for the six months ended
December 31, 2023 decreased 55% to$48.5 million from$107.7 million for the six months endedDecember 31, 2022 - EBITDA for the six months ended
December 31, 2023 decreased 50% to$55.5 million from$110.9 million for the six months endedDecember 31, 2022
Six Months Ended | |||||||||
2023 | 2022 | ||||||||
(in thousands, except Earnings per Share) | |||||||||
Selected Key Financial Statement Metrics: | |||||||||
Revenues | $ | 4,563,433 | $ | 3,850,056 | |||||
Gross profit | $ | 95,446 | $ | 140,561 | |||||
Depreciation and amortization expense | $ | (5,603 | ) | $ | (6,444 | ) | |||
Net income attributable to the Company | $ | 32,593 | $ | 78,606 | |||||
Earnings per Share: | |||||||||
Basic | $ | 1.40 | $ | 3.35 | |||||
Diluted | $ | 1.34 | $ | 3.18 | |||||
Non-GAAP Measures (1): | |||||||||
Adjusted net income before provision for income taxes | $ | 48,507 | $ | 107,745 | |||||
EBITDA | $ | 55,544 | $ | 110,885 | |||||
(1) See Reconciliation of | |||||||||
Fiscal Second Quarter 2024 Financial Summary
Revenues increased 7% to
The Direct-to-Consumer segment contributed 18% and 23% of the consolidated revenue in the fiscal second quarters of 2024 and 2023, respectively. JMB’s revenue represented 16% of the consolidated revenues for the fiscal second quarter of 2024 compared with 21% for the prior year fiscal second quarter.
Gross profit decreased 28% to
Selling, general and administrative expenses increased 8% to
Depreciation and amortization expense decreased 14% to
Interest income increased 27% to
Interest expense increased 41% to
Earnings from equity method investments decreased 83% 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
Fiscal Six Months 2024 Financial Summary
Revenues increased 19% to
The Direct-to-Consumer segment contributed 15% and 23% of the consolidated revenue for the six months ended
Gross profit decreased 32% to
Selling, general and administrative expenses increased 15% to
Depreciation and amortization expense decreased 13% to
Interest income increased 23% to
Interest expense increased 50% to
Earnings from equity method investments decreased 53% to
Net income attributable to the Company totaled
Adjusted net income before provision for income taxes for the six months ended
EBITDA for the six 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/2867/49671
International number: 1-973-528-0011
Participant Access Code: 362228
The call will also be broadcast live and available for replay on the Investor Relations section of A-Mark’s website at ir.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
Participant Access Code: 49671
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 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 | $ | 28,495 | $ | 39,318 | |||
Receivables, net | 42,720 | 35,243 | |||||
Derivative assets | 25,745 | 77,881 | |||||
Secured loans receivable | 106,565 | 100,620 | |||||
Precious metals held under financing arrangements | 19,520 | 25,530 | |||||
Inventories: | |||||||
Inventories | 591,737 | 645,812 | |||||
Restricted inventories | 518,613 | 335,831 | |||||
1,110,350 | 981,643 | ||||||
Income tax receivable | 1,022 | — | |||||
Prepaid expenses and other assets | 5,864 | 6,956 | |||||
Total current assets | 1,340,281 | 1,267,191 | |||||
Operating lease right of use assets | 4,524 | 5,119 | |||||
Property, plant, and equipment, net | 14,987 | 12,513 | |||||
100,943 | 100,943 | ||||||
Intangibles, net | 58,299 | 62,630 | |||||
Long-term investments | 91,886 | 88,535 | |||||
Other long-term assets | 12,938 | 8,640 | |||||
Total assets | $ | 1,623,858 | $ | 1,545,571 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities | |||||||
Lines of credit | $ | — | $ | 235,000 | |||
Liabilities on borrowed metals | 24,215 | 21,642 | |||||
Product financing arrangements | 518,613 | 335,831 | |||||
Accounts payable and other payables | 10,689 | 25,465 | |||||
Deferred revenue and other advances | 121,648 | 181,363 | |||||
Derivative liabilities | 28,908 | 8,076 | |||||
Accrued liabilities | 12,353 | 20,418 | |||||
Income tax payable | — | 958 | |||||
Notes payable | 3,234 | 95,308 | |||||
Total current liabilities | 719,660 | 924,061 | |||||
Lines of credit | 298,000 | — | |||||
Deferred tax liabilities | 16,697 | 16,677 | |||||
Other liabilities | 4,121 | 4,440 | |||||
Total liabilities | 1,038,478 | 945,178 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity | |||||||
Preferred stock, | — | — | |||||
Common stock, par value | 239 | 237 | |||||
(26,780 | ) | (9,762 | ) | ||||
Additional paid-in capital | 170,816 | 169,034 | |||||
Accumulated other comprehensive loss | (961 | ) | (1,025 | ) | |||
Retained earnings | 440,445 | 440,639 | |||||
583,759 | 599,123 | ||||||
Noncontrolling interest | 1,621 | 1,270 | |||||
Total stockholders’ equity | 585,380 | 600,393 | |||||
Total liabilities, noncontrolling interest and stockholders’ equity | $ | 1,623,858 | $ | 1,545,571 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(in thousands, except for share and per share data; unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues | $ | 2,078,815 | $ | 1,949,705 | $ | 4,563,433 | $ | 3,850,056 | |||||||
Cost of sales | 2,032,774 | 1,885,736 | 4,467,987 | 3,709,495 | |||||||||||
Gross profit | 46,041 | 63,969 | 95,446 | 140,561 | |||||||||||
Selling, general, and administrative expenses | (22,396 | ) | (20,813 | ) | (44,241 | ) | (38,597 | ) | |||||||
Depreciation and amortization expense | (2,811 | ) | (3,260 | ) | (5,603 | ) | (6,444 | ) | |||||||
Interest income | 6,311 | 4,984 | 12,413 | 10,080 | |||||||||||
Interest expense | (10,168 | ) | (7,236 | ) | (19,991 | ) | (13,366 | ) | |||||||
Earnings from equity method investments | 777 | 4,669 | 3,486 | 7,346 | |||||||||||
Other income, net | 569 | 833 | 842 | 1,360 | |||||||||||
Unrealized gains on foreign exchange | 105 | 1 | 11 | 215 | |||||||||||
Net income before provision for income taxes | 18,428 | 43,147 | 42,363 | 101,155 | |||||||||||
Income tax expense | (4,467 | ) | (9,550 | ) | (9,419 | ) | (22,321 | ) | |||||||
Net income | 13,961 | 33,597 | 32,944 | 78,834 | |||||||||||
Net income attributable to noncontrolling interest | 195 | 116 | 351 | 228 | |||||||||||
Net income attributable to the Company | $ | 13,766 | $ | 33,481 | $ | 32,593 | $ | 78,606 | |||||||
Basic and diluted net income per share attributable to | |||||||||||||||
Basic | $ | 0.60 | $ | 1.43 | $ | 1.40 | $ | 3.35 | |||||||
Diluted | $ | 0.57 | $ | 1.35 | $ | 1.34 | $ | 3.18 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 23,079,500 | 23,489,000 | 23,222,100 | 23,442,700 | |||||||||||
Diluted | 24,063,500 | 24,731,600 | 24,298,100 | 24,708,400 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands; unaudited) | |||||||
Six Months Ended | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 32,944 | $ | 78,834 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
Depreciation and amortization | 5,603 | 6,444 | |||||
Amortization of loan cost | 1,214 | 1,140 | |||||
Share-based compensation | 1,146 | 1,069 | |||||
Earnings from equity method investments | (3,486 | ) | (7,346 | ) | |||
Dividends and distributions received from equity method investees | 269 | 551 | |||||
Other | 157 | 421 | |||||
Changes in assets and liabilities: | |||||||
Receivables, net | (7,477 | ) | (12,548 | ) | |||
Secured loans receivable | — | 1,011 | |||||
Derivative assets | 52,136 | 49,955 | |||||
Income tax receivable | (1,022 | ) | (2,525 | ) | |||
Precious metals held under financing arrangements | 6,010 | 22,479 | |||||
Inventories | (128,707 | ) | (181,534 | ) | |||
Prepaid expenses and other assets | (134 | ) | 371 | ||||
Accounts payable and other payables | (14,778 | ) | 3,194 | ||||
Deferred revenue and other advances | (59,715 | ) | (1,341 | ) | |||
Derivative liabilities | 20,832 | 27,154 | |||||
Liabilities on borrowed metals | 2,573 | (28,308 | ) | ||||
Accrued liabilities | (8,274 | ) | (7,157 | ) | |||
Income tax payable | (958 | ) | (382 | ) | |||
Net cash used in operating activities | (101,667 | ) | (48,518 | ) | |||
Cash flows from investing activities: | |||||||
Capital expenditures for property, plant, and equipment | (3,824 | ) | (2,662 | ) | |||
Purchase of long-term investments | (50 | ) | (500 | ) | |||
Purchase of intangible assets | — | (4,500 | ) | ||||
Secured loans receivable, net | (5,937 | ) | 22,742 | ||||
Other | (848 | ) | — | ||||
Net cash (used in) provided by investing activities | (10,659 | ) | 15,080 | ||||
Cash flows from financing activities: | |||||||
Product financing arrangements, net | 182,782 | 64,589 | |||||
Dividends paid | (32,686 | ) | (28,088 | ) | |||
Distributions paid to noncontrolling interest | — | (1,001 | ) | ||||
Net borrowings and repayments under lines of credit | 63,000 | 32,000 | |||||
Repayment of notes | (95,000 | ) | — | ||||
Proceeds from notes payable to related party | 2,688 | 3,887 | |||||
Repayments on notes payable to related party | — | (2,135 | ) | ||||
Repurchases of common stock | (16,936 | ) | — | ||||
Debt funding issuance costs | (2,975 | ) | (219 | ) | |||
Proceeds from the exercise of share-based awards | 962 | 725 | |||||
Payments for tax withholding related to net settlement of share-based awards | (332 | ) | (1,604 | ) | |||
Net cash provided by financing activities | 101,503 | 68,154 | |||||
Net (decrease) increase in cash | (10,823 | ) | 34,716 | ||||
Cash, beginning of period | 39,318 | 37,783 | |||||
Cash, end of period | $ | 28,495 | $ | 72,499 |
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 | $ | 2,078,815 | 100.000 | % | $ | 1,949,705 | 100.000 | % | $ | 129,110 | 6.6 | % | |||||||||||
Gross profit | 46,041 | 2.215 | % | 63,969 | 3.281 | % | $ | (17,928 | ) | (28.0 | %) | ||||||||||||
Selling, general, and administrative expenses | (22,396 | ) | (1.077 | %) | (20,813 | ) | (1.067 | %) | $ | 1,583 | 7.6 | % | |||||||||||
Depreciation and amortization expense | (2,811 | ) | (0.135 | %) | (3,260 | ) | (0.167 | %) | $ | (449 | ) | (13.8 | %) | ||||||||||
Interest income | 6,311 | 0.304 | % | 4,984 | 0.256 | % | $ | 1,327 | 26.6 | % | |||||||||||||
Interest expense | (10,168 | ) | (0.489 | %) | (7,236 | ) | (0.371 | %) | $ | 2,932 | 40.5 | % | |||||||||||
Earnings from equity method investments | 777 | 0.037 | % | 4,669 | 0.239 | % | $ | (3,892 | ) | (83.4 | %) | ||||||||||||
Other income, net | 569 | 0.027 | % | 833 | 0.043 | % | $ | (264 | ) | (31.7 | %) | ||||||||||||
Unrealized gains on foreign exchange | 105 | 0.005 | % | 1 | 0.000 | % | $ | 104 | 10,400.0 | % | |||||||||||||
Net income before provision for income taxes | 18,428 | 0.886 | % | 43,147 | 2.213 | % | $ | (24,719 | ) | (57.3 | %) | ||||||||||||
Income tax expense | (4,467 | ) | (0.215 | %) | (9,550 | ) | (0.490 | %) | $ | (5,083 | ) | (53.2 | %) | ||||||||||
Net income | 13,961 | 0.672 | % | 33,597 | 1.723 | % | $ | (19,636 | ) | (58.4 | %) | ||||||||||||
Net income attributable to noncontrolling interest | 195 | 0.009 | % | 116 | 0.006 | % | $ | 79 | 68.1 | % | |||||||||||||
Net income attributable to the Company | $ | 13,766 | 0.662 | % | $ | 33,481 | 1.717 | % | $ | (19,715 | ) | (58.9 | %) | ||||||||||
Basic and diluted net income per share attributable to | |||||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||||
Basic | $ | 0.60 | $ | 1.43 | $ | (0.83 | ) | (58.0 | %) | ||||||||||||||
Diluted | $ | 0.57 | $ | 1.35 | $ | (0.78 | ) | (57.8 | %) |
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 | $ | 2,078,815 | 100.000 | % | $ | 2,484,618 | 100.000 | % | $ | (405,803 | ) | (16.3 | %) | |||||||||
Gross profit | 46,041 | 2.215 | % | 49,405 | 1.988 | % | $ | (3,364 | ) | (6.8 | %) | |||||||||||
Selling, general, and administrative expenses | (22,396 | ) | (1.077 | %) | (21,845 | ) | (0.879 | %) | $ | 551 | 2.5 | % | ||||||||||
Depreciation and amortization expense | (2,811 | ) | (0.135 | %) | (2,792 | ) | (0.112 | %) | $ | 19 | 0.7 | % | ||||||||||
Interest income | 6,311 | 0.304 | % | 6,102 | 0.246 | % | $ | 209 | 3.4 | % | ||||||||||||
Interest expense | (10,168 | ) | (0.489 | %) | (9,823 | ) | (0.395 | %) | $ | 345 | 3.5 | % | ||||||||||
Earnings from equity method investments | 777 | 0.037 | % | 2,709 | 0.109 | % | $ | (1,932 | ) | (71.3 | %) | |||||||||||
Other income, net | 569 | 0.027 | % | 273 | 0.011 | % | $ | 296 | 108.4 | % | ||||||||||||
Unrealized gains (losses) on foreign exchange | 105 | 0.005 | % | (94 | ) | (0.004 | %) | $ | 199 | 211.7 | % | |||||||||||
Net income before provision for income taxes | 18,428 | 0.886 | % | 23,935 | 0.963 | % | $ | (5,507 | ) | (23.0 | %) | |||||||||||
Income tax expense | (4,467 | ) | (0.215 | %) | (4,952 | ) | (0.199 | %) | $ | (485 | ) | (9.8 | %) | |||||||||
Net income | 13,961 | 0.672 | % | 18,983 | 0.764 | % | $ | (5,022 | ) | (26.5 | %) | |||||||||||
Net income attributable to noncontrolling interest | 195 | 0.009 | % | 156 | 0.006 | % | $ | 39 | 25.0 | % | ||||||||||||
Net income attributable to the Company | $ | 13,766 | 0.662 | % | $ | 18,827 | 0.758 | % | $ | (5,061 | ) | (26.9 | %) | |||||||||
Basic and diluted net income per share attributable to | ||||||||||||||||||||||
Per Share Data: | ||||||||||||||||||||||
Basic | $ | 0.60 | $ | 0.81 | $ | (0.21 | ) | (25.9 | %) | |||||||||||||
Diluted | $ | 0.57 | $ | 0.77 | $ | (0.20 | ) | (26.0 | %) |
Overview of Results of Operations for the Six Months Ended
Consolidated Results of Operations
The operating results for the six months ended
Six Months Ended | 2023 | 2022 | Change | ||||||||||||||||||||
$ | % of revenue | $ | % of revenue | $ | % | ||||||||||||||||||
Revenues | $ | 4,563,433 | 100.000 | % | $ | 3,850,056 | 100.000 | % | $ | 713,377 | 18.5 | % | |||||||||||
Gross profit | 95,446 | 2.092 | % | 140,561 | 3.651 | % | $ | (45,115 | ) | (32.1 | %) | ||||||||||||
Selling, general, and administrative expenses | (44,241 | ) | (0.969 | %) | (38,597 | ) | (1.003 | %) | $ | 5,644 | 14.6 | % | |||||||||||
Depreciation and amortization expense | (5,603 | ) | (0.123 | %) | (6,444 | ) | (0.167 | %) | $ | (841 | ) | (13.1 | %) | ||||||||||
Interest income | 12,413 | 0.272 | % | 10,080 | 0.262 | % | $ | 2,333 | 23.1 | % | |||||||||||||
Interest expense | (19,991 | ) | (0.438 | %) | (13,366 | ) | (0.347 | %) | $ | 6,625 | 49.6 | % | |||||||||||
Earnings from equity method investments | 3,486 | 0.076 | % | 7,346 | 0.191 | % | $ | (3,860 | ) | (52.5 | %) | ||||||||||||
Other income, net | 842 | 0.018 | % | 1,360 | 0.035 | % | $ | (518 | ) | (38.1 | %) | ||||||||||||
Unrealized gains on foreign exchange | 11 | 0.000 | % | 215 | 0.006 | % | $ | (204 | ) | (94.9 | %) | ||||||||||||
Net income before provision for income taxes | 42,363 | 0.928 | % | 101,155 | 2.627 | % | $ | (58,792 | ) | (58.1 | %) | ||||||||||||
Income tax expense | (9,419 | ) | (0.206 | %) | (22,321 | ) | (0.580 | %) | $ | (12,902 | ) | (57.8 | %) | ||||||||||
Net income | 32,944 | 0.722 | % | 78,834 | 2.048 | % | $ | (45,890 | ) | (58.2 | %) | ||||||||||||
Net income attributable to noncontrolling interest | 351 | 0.008 | % | 228 | 0.006 | % | $ | 123 | 53.9 | % | |||||||||||||
Net income attributable to the Company | $ | 32,593 | 0.714 | % | $ | 78,606 | 2.042 | % | $ | (46,013 | ) | (58.5 | %) | ||||||||||
Basic and diluted net income per share attributable to | |||||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||||
Basic | $ | 1.40 | $ | 3.35 | $ | (1.95 | ) | (58.2 | %) | ||||||||||||||
Diluted | $ | 1.34 | $ | 3.18 | $ | (1.84 | ) | (57.9 | %) |
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 | $ | 18,428 | $ | 43,147 | $ | (24,719 | ) | (57.3 | %) | ||||||
Adjustments: | |||||||||||||||
Acquisition costs | 489 | 64 | $ | 425 | 664.1 | % | |||||||||
Amortization of acquired intangibles | 2,165 | 2,763 | $ | (598 | ) | (21.6 | %) | ||||||||
Depreciation expense | 646 | 497 | $ | 149 | 30.0 | % | |||||||||
Adjusted net income before provision for income taxes (non-GAAP) | $ | 21,728 | $ | 46,471 | $ | (24,743 | ) | (53.2 | %) |
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 | $ | 13,961 | $ | 33,597 | $ | (19,636 | ) | (58.4 | %) | ||||||
Adjustments: | |||||||||||||||
Interest income | (6,311 | ) | (4,984 | ) | $ | 1,327 | 26.6 | % | |||||||
Interest expense | 10,168 | 7,236 | $ | 2,932 | 40.5 | % | |||||||||
Amortization of acquired intangibles | 2,165 | 2,763 | $ | (598 | ) | (21.6 | %) | ||||||||
Depreciation expense | 646 | 497 | $ | 149 | 30.0 | % | |||||||||
Income tax expense | 4,467 | 9,550 | $ | (5,083 | ) | (53.2 | %) | ||||||||
11,135 | 15,062 | $ | (3,927 | ) | (26.1 | %) | |||||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 25,096 | $ | 48,659 | $ | (23,563 | ) | (48.4 | %) | ||||||
Reconciliation of Operating Cash Flows to EBITDA: | |||||||||||||||
Net cash used in operating activities | $ | (57,405 | ) | $ | (328,140 | ) | $ | (270,735 | ) | (82.5 | %) | ||||
Changes in operating working capital | 74,387 | 361,909 | $ | (287,522 | ) | (79.4 | %) | ||||||||
Interest expense | 10,168 | 7,236 | $ | 2,932 | 40.5 | % | |||||||||
Interest income | (6,311 | ) | (4,984 | ) | $ | 1,327 | 26.6 | % | |||||||
Income tax expense | 4,467 | 9,550 | $ | (5,083 | ) | (53.2 | %) | ||||||||
Earnings from equity method investments | 777 | 4,669 | $ | (3,892 | ) | (83.4 | %) | ||||||||
Share-based compensation | (482 | ) | (534 | ) | $ | (52 | ) | (9.7 | %) | ||||||
Amortization of loan cost | (692 | ) | (586 | ) | $ | 106 | 18.1 | % | |||||||
Other | 187 | (461 | ) | $ | 648 | 140.6 | % | ||||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 25,096 | $ | 48,659 | $ | (23,563 | ) | (48.4 | %) |
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 | $ | 18,428 | 23,935 | $ | (5,507 | ) | (23.0 | %) | |||||||
Adjustments: | |||||||||||||||
Acquisition costs | 489 | 52 | $ | 437 | 840.4 | % | |||||||||
Amortization of acquired intangibles | 2,165 | 2,165 | — | — | % | ||||||||||
Depreciation expense | 646 | 627 | $ | 19 | 3.0 | % | |||||||||
Adjusted net income before provision for income taxes (non-GAAP) | $ | 21,728 | $ | 26,779 | $ | (5,051 | ) | (18.9 | %) |
A reconciliation of net income to EBITDA, and operating cash flows to EBITDA for the three months ended
Three Months Ended | Change | ||||||||||||||
$ | $ | $ | % | ||||||||||||
Net income | $ | 13,961 | $ | 18,983 | $ | (5,022 | ) | (26.5 | %) | ||||||
Adjustments: | |||||||||||||||
Interest income | (6,311 | ) | (6,102 | ) | $ | 209 | 3.4 | % | |||||||
Interest expense | 10,168 | 9,823 | $ | 345 | 3.5 | % | |||||||||
Amortization of acquired intangibles | 2,165 | 2,165 | $ | — | — | % | |||||||||
Depreciation expense | 646 | 627 | $ | 19 | 3.0 | % | |||||||||
Income tax expense | 4,467 | 4,952 | $ | (485 | ) | (9.8 | %) | ||||||||
11,135 | 11,465 | $ | (330 | ) | (2.9 | %) | |||||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 25,096 | $ | 30,448 | $ | (5,352 | ) | (17.6 | %) | ||||||
Reconciliation of Operating Cash Flows to EBITDA: | |||||||||||||||
Net cash used in operating activities | $ | (57,405 | ) | $ | (44,262 | ) | $ | 13,143 | 29.7 | % | |||||
Changes in operating working capital | 74,387 | 65,127 | $ | 9,260 | 14.2 | % | |||||||||
Interest expense | 10,168 | 9,823 | $ | 345 | 3.5 | % | |||||||||
Interest income | (6,311 | ) | (6,102 | ) | $ | 209 | 3.4 | % | |||||||
Income tax expense | 4,467 | 4,952 | $ | (485 | ) | (9.8 | %) | ||||||||
Dividends received from equity method investees | — | (269 | ) | $ | 269 | 100.0 | % | ||||||||
Earnings from equity method investments | 777 | 2,709 | $ | (1,932 | ) | (71.3 | %) | ||||||||
Share-based compensation | (482 | ) | (664 | ) | $ | (182 | ) | (27.4 | %) | ||||||
Amortization of loan cost | (692 | ) | (522 | ) | $ | 170 | 32.6 | % | |||||||
Other | 187 | (344 | ) | $ | 531 | 154.4 | % | ||||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 25,096 | $ | 30,448 | $ | (5,352 | ) | (17.6 | %) |
Reconciliation of
A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the six months ended
Six Months Ended | 2023 | 2022 | Change | ||||||||||||
$ | $ | $ | % | ||||||||||||
Net income before provision for income taxes | $ | 42,363 | $ | 101,155 | $ | (58,792 | ) | (58.1 | %) | ||||||
Adjustments: | |||||||||||||||
Acquisition costs | 541 | 146 | $ | 395 | 270.5 | % | |||||||||
Amortization of acquired intangibles | 4,330 | 5,474 | $ | (1,144 | ) | (20.9 | %) | ||||||||
Depreciation expense | 1,273 | 970 | $ | 303 | 31.2 | % | |||||||||
Adjusted net income before provision for income taxes (non-GAAP) | $ | 48,507 | $ | 107,745 | $ | (59,238 | ) | (55.0 | %) |
A reconciliation of net income to EBITDA, and operating cash flows to EBITDA for the six months ended
Six Months Ended | 2023 | 2022 | Change | ||||||||||||
$ | $ | $ | % | ||||||||||||
Net income | $ | 32,944 | $ | 78,834 | $ | (45,890 | ) | (58.2 | %) | ||||||
Adjustments: | |||||||||||||||
Interest income | (12,413 | ) | (10,080 | ) | $ | 2,333 | 23.1 | % | |||||||
Interest expense | 19,991 | 13,366 | $ | 6,625 | 49.6 | % | |||||||||
Amortization of acquired intangibles | 4,330 | 5,474 | $ | (1,144 | ) | (20.9 | %) | ||||||||
Depreciation expense | 1,273 | 970 | $ | 303 | 31.2 | % | |||||||||
Income tax expense | 9,419 | 22,321 | $ | (12,902 | ) | (57.8 | %) | ||||||||
22,600 | 32,051 | $ | (9,451 | ) | (29.5 | %) | |||||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 55,544 | $ | 110,885 | $ | (55,341 | ) | (49.9 | %) | ||||||
Reconciliation of Operating Cash Flows to EBITDA: | |||||||||||||||
Net cash used in operating activities | $ | (101,667 | ) | $ | (48,518 | ) | $ | 53,149 | 109.5 | % | |||||
Changes in operating working capital | 139,514 | 129,631 | $ | 9,883 | 7.6 | % | |||||||||
Interest expense | 19,991 | 13,366 | $ | 6,625 | 49.6 | % | |||||||||
Interest income | (12,413 | ) | (10,080 | ) | $ | 2,333 | 23.1 | % | |||||||
Income tax expense | 9,419 | 22,321 | $ | (12,902 | ) | (57.8 | %) | ||||||||
Dividends and distributions received from equity method investees | (269 | ) | (551 | ) | $ | (282 | ) | (51.2 | %) | ||||||
Earnings from equity method investments | 3,486 | 7,346 | $ | (3,860 | ) | (52.5 | %) | ||||||||
Share-based compensation | (1,146 | ) | (1,069 | ) | $ | 77 | 7.2 | % | |||||||
Amortization of loan cost | (1,214 | ) | (1,140 | ) | $ | 74 | 6.5 | % | |||||||
Other | (157 | ) | (421 | ) | $ | (264 | ) | (62.7 | %) | ||||||
Earnings before interest, taxes, depreciation, and amortization (non-GAAP) | $ | 55,544 | $ | 110,885 | $ | (55,341 | ) | (49.9 | %) | ||||||
Source:
2024 GlobeNewswire, Inc., source