• A-Mark Precious Metals Reports Fiscal First Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 08 Nov 2022 15:05:02   America/Chicago

    Q1 FY 2023 Diluted Earnings Per Share of $1.83 up from $1.08 in Q1 FY 2022 and $1.52 in Q4 FY 2022

    37% YoY Increase in Gross Profit for the Quarter

    Company Affirms Regular Quarterly Cash Dividend Policy

    EL SEGUNDO, Calif., Nov. 08, 2022 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, reported results for the fiscal first quarter ended September 30, 2022.

    Fiscal First Quarter 2023 Operational Highlights

    • Gold ounces sold in the three months ended September 30, 2022 decreased 6% to 629,000 ounces from 669,000 ounces for the three months ended September 30, 2021, and decreased 2% from 641,000 ounces for the three months ended June 30, 2022
    • Silver ounces sold in the three months ended September 30, 2022 increased 28% to 35.9 million ounces from 28.1 million ounces for the three months ended September 30, 2021, and decreased 4% from 37.6 million ounces for the three months ended June 30, 2022
    • As of September 30, 2022, the number of secured loans decreased 48% to 1,082 from 2,074 as of September 30, 2021, and decreased 52% from 2,271 as of June 30, 2022
    • Direct-to-Consumer new customers for the three months ended September 30, 2022 decreased 7% to 49,000 from 52,900 for the three months ended September 30, 2021, and compares to 48,800 for the three months ended June 30, 2022
    • Direct-to-Consumer active customers for the three months ended September 30, 2022 increased 19% to 139,900 from 117,700 for the three months ended September 30, 2021, and increased 5% from 133,100 for the three months ended June 30, 2022
    • Direct-to-Consumer average order value for the three months ended September 30, 2022 increased $42, or 2% to $2,333 from $2,291 for the three months ended September 30, 2021, and decreased $409, or 15% from $2,742 for the three months ended June 30, 2022
    • JM Bullion’s average order value for the three months ended June 30, 2022 increased $21, or 1% to $2,151 from $2,130 for the three months ended September 30, 2021, and decreased $346, or 14% from $2,497 for the three months ended June 30, 2022
      Three Months Ended September 30,
       2022 2021
    Selected Operating Metrics:     
    Gold ounces sold (1)  629,000  669,000 
    Silver ounces sold (2)  35,917,000  28,127,000 
    Number of secured loans at period end (3)  1,082  2,074 
    Direct-to-Consumer ("DTC") number of new customers (4)  49,000  52,900 
    Direct-to-Consumer number of active customers (5)  139,900  117,700 
    Direct-to-Consumer number of total customers (6)  2,062,000  1,835,500 
    Direct-to-Consumer average order value ("AOV") (7) $2,333 $2,291 
    JM Bullion (“JMB”) average order value (8) $2,151 $2,130 
    CyberMetals number of new customers (9)  2,300  - 
    CyberMetals number of active customers (10)  2,000  - 
    CyberMetals number of total customers (11)  8,200  - 
    CyberMetals customer assets under management (12) $4,600,000 $- 
          
          
    (1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts.
    (2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts.
    (3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period.
    (4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment (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.


      Three Months Ended
      September 30, 2022June 30, 2022
    Selected Operating Metrics:     
    Gold ounces sold (1)  629,000  641,000 
    Silver ounces sold (2)  35,917,000  37,597,000 
    Number of secured loans at period end (3)  1,082  2,271 
    Direct-to-Consumer ("DTC") number of new customers (4)  49,000  48,800 
    Direct-to-Consumer number of active customers (5)  139,900  133,100 
    Direct-to-Consumer number of total customers (6)  2,062,000  2,013,000 
    Direct-to-Consumer average order value ("AOV") (7) $2,333 $     2,742 
    JM Bullion ("JMB") average order value (8) $2,151 $     2,497 
    CyberMetals number of new customers (9)  2,300  5,200 
    CyberMetals number of active customers (10)  2,000  2,800 
    CyberMetals number of total customers (11)  8,200  5,900 
    CyberMetals customer assets under management (12) $4,600,000 $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 First Quarter 2023 Financial Highlights

    • Revenues for the three months ended September 30, 2022 decreased 6% to $1.90 billion from $2.01 billion for the three months ended September 30, 2021 and decreased 9% from $2.09 billion for the three months ended June 30, 2022
    • Gross profit for the three months ended September 30, 2022 increased 37% to $76.6 million from $56.0 million for the three months ended September 30, 2021 and increased 13% from $67.8 million for the three months ended June 30, 2022
    • Gross profit margin for the three months ended September 30, 2022 increased to 4.03% of revenue, from 2.78% of revenue for the three months ended September 30, 2021, and improved from 3.24% of revenue in the three months ended June 30, 2022
    • Net income attributable to the Company for the three months ended September 30, 2022 increased 73% to $45.1 million from $26.0 million for the three months ended September 30, 2021, and increased 21% from $37.3 million for the three months ended June 30, 2022
    • Diluted earnings per share totaled $1.83 for the three months ended September 30, 2022, a 69% increase compared to $1.08 for the three months ended September 30, 2021, adjusted for the effect of the two-for-one stock split that occurred in June 2022, and increased 20% from $1.52 for the three months ended June 30, 2022, adjusted for the effect of the two-for-one stock split that occurred in June 2022
    • 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 measure, for the three months ended September 30, 2022 increased 49% to $61.3 million from $41.1 million for the three months ended September 30, 2021, and increased 21% from $50.6 million for the three months ended June 30, 2022
    • Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP liquidity measure, for the three months ended September 30, 2022 increased 52% to $62.2 million from $41.0 million for the three months ended September 30, 2021, and increased 24% from $50.3 million for the three months ended June 31, 2022
      Three Months Ended September 30,
       2022 2021
      (in thousands, except Earnings per Share and Weighted Average Shares Outstanding)
    Selected Key Financial Statement Metrics:     
    Revenues $1,900,351  $2,013,971  
    Gross profit $76,592  $56,009  
    Depreciation and amortization expense $(3,184) $(8,271) 
    Net income attributable to the Company $45,125  $26,024  
          
    Earnings per Share (1):     
    Basic $1.93  $1.16  
    Diluted $1.83  $1.08  
    Weighted Average Shares Outstanding (1):     
    Basic  23,396,400   22,525,200  
    Diluted  24,685,200   24,018,600  
          
    Non-GAAP Financial Measures:     
    Adjusted net income before provision for income taxes $61,274  $41,108  
    EBITDA $62,226  $41,006  
          
          
       (1) Q1 FY 2022 is retroactively adjusted for the effect of the June 2022 two-for-one stock split in the form of a stock dividend.
          


      Three Months Ended
      September 30, 2022June 30, 2022
      (in thousands, except Earnings per Share and Weighted Average Shares Outstanding)
    Selected Key Financial Statement Metrics:     
    Revenues $1,900,351  $2,089,804  
    Gross profit $76,592  $67,750  
    Depreciation and amortization expense $(3,184) $(3,223) 
    Net income attributable to the Company $45,125  $37,336  
          
    Earnings per Share:     
    Basic $1.93  $1.62  
    Diluted $1.83  $1.52  
    Weighted Average Shares Outstanding:     
    Basic  23,396,400   23,085,500  
    Diluted  24,685,200   24,494,100  
          
    Non-GAAP Financial Measures:     
    Adjusted net income before provision for income taxes $61,274  $50,628  
    EBITDA $62,226  $50,254  
          
          

    Fiscal First Quarter 2022 Financial Summary

    Revenues decreased 6% to $1.90 billion from $2.01 billion in the same year-ago quarter due to a decrease in gold ounces sold and lower average selling prices of gold and silver, partially offset by an increase in silver ounces sold.

    The Direct-to-Consumer segment contributed 23% and 26% of the consolidated revenue in the fiscal first quarters of 2023 and 2022, respectively. JMB’s revenue represented 20% of the consolidated revenues for the fiscal first quarter of 2023 compared with 23% for the prior year fiscal first quarter.

    Gross profit increased 37% to $76.6 million (4.03% of revenue) from $56.0 million (2.78% of revenue) in the same year-ago quarter. The increase in gross profit was due to higher gross profits earned from the Wholesale Sales & Ancillary Services and Direct-to-Consumer segments. The Direct-to-Consumer segment contributed 55% and 54% of the consolidated gross profit in the fiscal first quarters of 2023 and 2022, respectively. Gross profit contributed by JMB represented 48% of the consolidated gross profit in the fiscal first quarter of 2023 and 44% of the consolidated gross profit for the prior year fiscal first quarter.

    Selling, general and administrative expenses increased 7% to $17.8 million from $16.7 million in the same year-ago quarter. The change was primarily due to an increase in compensation expense (including performance-based accruals) of $1.0 million, higher advertising cost of $0.7 million, an increase in computer-related expenses of $0.2 million, partially offset by lower consulting and professional fees of $0.5 million and lower insurance costs of $0.5 million.

    Depreciation and amortization expense decreased 62% to $3.2 million from $8.3 million in the same year-ago quarter. The decrease was primarily due to $5.1 million of JMB’s intangible asset amortization expense.

    Interest income decreased 8% to $5.1 million from $5.5 million in the same year-ago quarter. The aggregate decrease in interest income was primarily due to lower interest income earned by our Secured Lending segment and lower other finance product income.

    Interest expense increased 12% to $6.1 million from $5.5 million in the same year-ago quarter. The increase in interest expense was primarily driven by $0.5 million associated with the Company’s Trading Credit Facility and the AMCF Notes (including amortization of debt issuance costs), $0.2 million related to product financing arrangements, $0.1 million in interest associated with liabilities on borrowed metals, offset by a decrease of $0.2 million of loan servicing fees.

    Earnings from equity method investments increased 80% to $2.7 million from $1.5 million in the same year-ago quarter. The net increase of $1.2 million was primarily due to increased earnings from equity method investments.

    Net income attributable to the Company totaled $45.1 million or $1.83 per diluted share, compared to net income of $26.0 million or $1.08 per diluted share in the same year-ago quarter, adjusted for the effect of the two-for-one stock split that occurred in June 2022.

    Adjusted net income for the three months ended September 30, 2022 totaled $61.3 million, an increase of $20.2 million or 49% compared to $41.1 million in the same year-ago quarter. The increase is principally due to $25.2 million of higher net income before provision for income taxes and $0.1 million of higher depreciation expense, offset by $5.2 million of lower amortization of acquired intangibles.

    EBITDA for the three months ended September 30, 2022 totaled $62.2 million, an increase of $21.1 million or 52% compared to $41.0 million in the same year-ago quarter. The increase was principally due to higher net income of $19.1 million. See the reconciliation of net income to EBITDA for further details.

    Management Commentary  

    “Our first quarter results continue to demonstrate the strength of our fully integrated precious metals platform and diversified business model,” said A-Mark CEO Greg Roberts. “We delivered robust growth across our key financial metrics, including a 13% sequential increase in gross profit, a 79 basis point increase in our gross margin percentage, a 24% increase in EBITDA, and a 9% quarterly return on equity. Our business is fundamentally strengthened and more diverse as a result of our growth strategy, which has broadened our customer base and further enhanced our fully integrated capabilities.

    “As we announced last month, JMB closed the asset acquisition of BGASC, one of the largest coin and bullion e-commerce dealers in the United States with over 120,000 customers. We have integrated BGASC as a standalone brand in our DTC segment, and look forward to BGASC’s contribution to the segment’s performance in the second quarter of fiscal 2023.

    “Our minting business also remains a key driver for our performance with production levels remaining near record levels. We continue to invest in our minting operations, including the recent acquisition of our largest tooling supplier, Marksmen Tool and Die, and investments in other capital to further expand both our minting facility and production capacity.

    “Favorable market conditions, continued supply constraints and elevated demand in both the retail and wholesale segments have continued to positively impact our business in fiscal 2023 resulting in one of the strongest quarters in A-Mark’s history. Our performance is attributable to our industry-leading fully integrated precious metals platform and business model, which we hope to continue to expand through synergistic acquisitions and strategic investments. We remain optimistic that our proven business model will allow us to realize growth and profitability over the long term.”

    Quarterly Cash Dividend Policy

    A-Mark’s Board of Directors has re-affirmed its previously announced regular quarterly cash dividend policy of $0.20 per common share ($0.80 per share on an annual basis). The initial quarterly cash dividend under the policy was paid on October 24, 2022 to stockholders of record as of October 10, 2022.  It is expected that the next quarterly dividend will be paid in January 2023. The declaration of regular cash dividends in the future is subject to the determination each quarter by the Board of Directors, based on a number of factors, including the Company’s financial performance, available cash resources, cash requirements and alternative uses of cash and applicable bank covenants.

    Conference Call

    A-Mark will hold a conference call today (November 8, 2022) to discuss these financial results. A-Mark management will host the call at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) followed by a question-and-answer period.

    To participate, please call the conference telephone number 10 minutes before the start time and ask for the A-Mark Precious Metals conference call.

    Webcast: https://www.webcaster4.com/Webcast/Page/2867/46777

    U.S. dial-in number: 1-877-545-0320
    International number: 1-973-528-0002
    Access Code: 107872

    The conference call will be webcast simultaneously and available for replay via the Investor Relations section of A-Mark’s website at www.amark.com. If you have any difficulty connecting with the conference call or webcast, please contact A-Mark’s investor relations team at 1-949-574-3860.

    A replay of the call will be available after 7:30 p.m. Eastern time through November 22, 2022.

    Toll-free replay number: 1-877-481-4010
    International replay number: 1-919-882-2331
    Replay Passcode: 46777

    About A-Mark Precious Metals

    Founded in 1965, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) is a leading fully integrated precious metals platform that offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins, and related products to wholesale and retail customers via a portfolio of channels. The company conducts its operations through three complementary segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The company’s global customer base spans sovereign and private mints, manufacturers and fabricators, refiners, dealers, financial institutions, industrial users, investors, collectors, and e-commerce and other retail customers.

    A-Mark’s Wholesale Sales & Ancillary Services segment distributes and purchases precious metal products from sovereign and private mints. As a U.S. Mint-authorized purchaser of gold, silver, and platinum coins since 1986, A-Mark purchases bullion products directly from the U.S. Mint for sale to customers. A-Mark also has longstanding distributorships with other sovereign mints, including Australia, Austria, Canada, China, Mexico, South Africa, and the United Kingdom. The company sells more than 200 different products to e-commerce retailers, coin and bullion dealers, financial institutions, brokerages, and collectors. In addition, A-Mark sells precious metal products to industrial users, including metal refiners, manufacturers, and electronic fabricators.

    Through its A-M Global Logistics subsidiary, A-Mark provides its customers with a range of complementary services, including managed storage options for precious metals as well as receiving, handling, inventorying, processing, packaging, and shipping of precious metals and coins on a secure basis. A-Mark’s mint operations, which are conducted through its wholly owned subsidiary SilverTowne Mint, enable the company to offer customers a wide range of proprietary coin and bar offerings and, during periods of market volatility when the availability of silver bullion from sovereign mints is often product constrained, preferred product access.

    A-Mark’s Direct-to-Consumer segment operates as an omni-channel retailer of precious metals, providing access to a multitude of products through its wholly owned subsidiaries, JM Bullion and Goldline. JM Bullion is a leading e-commerce retailer of precious metals and operates six separately branded, company-owned websites targeting specific niches within the precious metals market: JMBullion.com, ProvidentMetals.com, Silver.com, GoldPrice.org, SilverPrice.org and BGASC.com. JMB also owns CyberMetals.com, an online platform where customers can purchase and sell fractional shares of digital gold, silver, platinum and palladium bars in a range of denominations. Goldline markets precious metals directly to the investor community through various channels, including television, radio, and telephonic sales efforts. A-Mark also holds minority ownership interests in two additional direct-to-consumer brands.

    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 El Segundo, CA and has additional offices and facilities in the neighboring Los Angeles area as well as in Dallas, TX, Las Vegas, NV, Winchester, IN, and Vienna, Austria. For more information, visit www.amark.com.

    Important Cautions Regarding Forward-Looking Statements
    Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. 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, 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 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 Securities and Exchange Commission.

    The words "should," "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Additionally, any statements related to future improved performance and estimates of revenues and earnings per share are forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

    Use and Reconciliation of Non-GAAP Financial and Liquidity Measures
    In addition to presenting the Company’s financial results determined in accordance with U.S. GAAP, management believes the following non-GAAP measures are useful in evaluating the Company’s operating performance: “adjusted net income before provision for income taxes” and “earnings before interest, taxes, depreciation and amortization” (“EBITDA”). Management believes the “adjusted net income before provision for income taxes” non-GAAP financial measure assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that management does not believe are indicative of the Company’s core operating performance. The items excluded from this financial measure may have a material impact on the Company’s financial results. Certain of those items are non-recurring, while others are non-cash in nature. Management believes the EBITDA non-GAAP liquidity measure assists investors and analysts by facilitating comparison with other publicly traded companies. Non-GAAP measures do not have standardized definitions and should be considered in addition to, and not as a substitute for or superior to, the comparable measures prepared in accordance with U.S. GAAP, and should be read in conjunction with the financial statements included in the Company’s Quarterly Report on Form 10-Q to be filed with the SEC. Management encourages investors and others to review the Company’s financial information in its entirety and not to rely on any single financial or liquidity measure.

    In the Company’s reconciliation from its reported U.S. GAAP “net income before provision for income taxes” to its non-GAAP “adjusted net income before provision for income taxes”, the Company eliminates the impact of the following three amounts: (i) acquisition expenses; (ii) amortization expenses related to intangible assets acquired; and (iii) depreciation expense.   The Company’s reconciliations from its reported U.S. GAAP “net cash provided by (used in) operating activities” to its non-GAAP “EBITDA” are provided below and are also included in the Company’s Quarterly Report on Form 10-Q to be filed with the SEC for the quarterly period ended September 30, 2022.

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

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

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

      September 30,
    2022    		   June 30,
    2022    		 
    ASSETS         
    Current assets:         
    Cash $64,635   $37,783 
    Receivables, net  110,848    97,040 
    Derivative assets  32,507    91,743 
    Secured loans receivable  87,313    126,217 
    Precious metals held under financing arrangements  49,327    79,766 
    Inventories:         
    Inventories  458,487    458,347 
    Restricted inventories  167,009    282,671 
       625,496    741,018 
    Prepaid expenses and other assets  9,134    7,558 
    Total current assets  979,260    1,181,125 
    Operating lease right of use assets  5,981    6,482 
    Property, plant, and equipment, net  10,477    9,845 
    Goodwill  100,943    100,943 
    Intangibles, net  65,253    67,965 
    Long-term investments  73,022    70,828 
    Other long-term assets  5,471    5,471 
    Total assets $1,240,407   $1,442,659 
    LIABILITIES AND STOCKHOLDERS’ EQUITY         
    Current liabilities:         
    Lines of credit $63,000   $215,000 
    Liabilities on borrowed metals  55,909    59,417 
    Product financing arrangements  167,009    282,671 
    Accounts payable and other payables  28,574    6,127 
    Deferred revenue and other advances  183,183    175,545 
    Derivative liabilities  89,899    75,780 
    Accrued liabilities  17,663    21,813 
    Income tax payable  10,227    382 
    Total current liabilities  615,464    836,735 
    Notes payable  98,182    94,073 
    Deferred tax liabilities  15,388    15,408 
    Other liabilities  5,483    5,972 
    Total liabilities  734,517    952,188 
    Commitments and contingencies         
    Stockholders’ equity:         
    Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued
    and outstanding: none as of September 30, 2022 and June 30, 2022    		  —    — 
    Common stock, par value $0.01; 40,000,000 shares authorized; 23,453,339
    and 23,379,888 shares issued and outstanding as of September 30, 2022
    and June 30, 2022, respectively    		  235    234 
    Additional paid-in capital  165,814    166,526 
    Accumulated other comprehensive income  52    — 
    Retained earnings  338,816    321,849 
    Total A-Mark Precious Metals, Inc. stockholders’ equity  504,917    488,609 
    Noncontrolling interest  973    1,862 
    Total stockholders’ equity  505,890    490,471 
    Total liabilities, noncontrolling interest and stockholders’ equity $1,240,407   $1,442,659 


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

      Three Months Ended 
      September 30,
    2022    		   September 30,
    2021    		 
    Revenues $1,900,351   $2,013,971 
    Cost of sales  1,823,759    1,957,962 
    Gross profit  76,592    56,009 
    Selling, general, and administrative expenses  (17,784)   (16,677)
    Depreciation and amortization expense  (3,184)   (8,271)
    Interest income  5,096    5,531 
    Interest expense  (6,130)   (5,473)
    Earnings from equity method investments  2,677    1,489 
    Other income, net  527    409 
    Unrealized gains (losses) on foreign exchange  214    (224)
    Net income before provision for income taxes  58,008    32,793 
    Income tax expense  (12,771)   (6,669)
    Net income  45,237    26,124 
    Net income attributable to noncontrolling interest  112    100 
    Net income attributable to the Company $45,125   $26,024 
    Basic and diluted net income per share attributable
    to A-Mark Precious Metals, Inc.:    		         
    Basic $1.93   $1.16 
    Diluted $1.83   $1.08 
              
    Weighted average shares outstanding:         
    Basic  23,396,400    22,525,200 
    Diluted  24,685,200    24,018,600 


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

    Three Months Ended September 30, 2022  2021 
    Cash flows from operating activities:        
    Net income $45,237  $26,124 
    Adjustments to reconcile net income to net cash provided by (used in) operating activities:        
    Depreciation and amortization  3,184   8,271 
    Amortization of loan cost  554   569 
    Deferred income taxes  (36)  (1,423)
    Interest added to principal of secured loans  (4)  (5)
    Share-based compensation  535   473 
    Earnings from equity method investments  (2,677)  (1,489)
    Dividends received from equity method investees  551   — 
    Changes in assets and liabilities:        
    Receivables  (13,808)  (15,522)
    Secured loans receivable  368   25 
    Secured loans made to affiliates  —   3,032 
    Derivative assets  59,236   (25,249)
    Precious metals held under financing arrangements  30,439   24,124 
    Inventories  115,522   (107,686)
    Prepaid expenses and other assets  (1,738)  (689)
    Accounts payable and other payables  22,447   22,691 
    Deferred revenue and other advances  7,638   (44,244)
    Derivative liabilities  14,119   62,809 
    Liabilities on borrowed metals  (3,508)  (17,248)
    Accrued liabilities  (8,282)  (6,420)
    Income tax payable  9,845   2,124 
    Net cash provided by (used in) operating activities  279,622   (69,733)
    Cash flows from investing activities:        
    Capital expenditures for property, plant, and equipment  (927)  (709)
    Purchase of long-term investments  (500)  (6,250)
    Secured loans receivable, net  38,540   (407)
    Net cash provided by (used in) investing activities  37,113   (7,366)
    Cash flows from financing activities:        
    Product financing arrangements, net  (115,662)  18,392 
    Dividends paid  (23,394)  (22,639)
    Distributions paid to noncontrolling interest  (1,001)  — 
    Borrowings and repayments under lines of credit, net  (152,000)  9,000 
    Proceeds from issuance of related party note  3,887   — 
    Debt funding issuance costs  (170)  (199)
    Proceeds from the exercise of share-based awards  63   762 
    Payments for tax withholding related to net settlement of share-based awards  (1,606)  (13)
    Net cash (used in) provided by financing activities  (289,883)  5,303 
    Net increase (decrease) in cash  26,852   (71,796)
    Cash, beginning of period  37,783   101,405 
    Cash, end of period $64,635  $29,609 

    Overview of Results of Operations for the Three Months Ended September 30, 2022 and 2021

    Consolidated Results of Operations

            The operating results for the three months ended September 30, 2022 and 2021 are as follows:

    in thousands, except per share data                 
                  
    Three Months Ended September 30, 2022  2021   $  % 
      $  % of
    revenue    		  $  % of
    revenue    		   Increase/
    (decrease)    		  Increase/
    (decrease)    		 
    Revenues $1,900,351  100.000% $2,013,971  100.000%  $(113,620) (5.6%)
    Gross profit  76,592  4.030%  56,009  2.781%  $20,583  36.7%
    Selling, general, and administrative expenses  (17,784) (0.936%)  (16,677) (0.828%)  $1,107  6.6%
    Depreciation and amortization expense  (3,184) (0.168%)  (8,271) (0.411%)  $(5,087) (61.5%)
    Interest income  5,096  0.268%  5,531  0.275%  $(435) (7.9%)
    Interest expense  (6,130) (0.323%)  (5,473) (0.272%)  $657  12.0%
    Earnings from equity method investments  2,677  0.141%  1,489  0.074%  $1,188  79.8%
    Other income, net  527  0.028%  409  0.020%  $118  28.9%
    Unrealized gains (losses) on foreign exchange  214  0.011%  (224) (0.011%)  $438  195.5%
    Net income before provision for income taxes  58,008  3.052%  32,793  1.628%  $25,215  76.9%
    Income tax expense  (12,771) (0.672%)  (6,669) (0.331%)  $6,102  91.5%
    Net income  45,237  2.380%  26,124  1.297%  $19,113  73.2%
    Net income attributable to noncontrolling interest  112  0.006%  100  0.005%  $12  12.0%
    Net income attributable to the Company $45,125  2.375% $26,024  1.292%  $19,101  73.4%
                             
    Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:
                             
    Per Share Data:                      
    Basic $1.93     $1.16      $0.77  66.4%
    Diluted $1.83     $1.08      $0.75  69.4%

    Overview of Results of Operations for the Three Months Ended September 30, 2022 and June 30, 2022

    Consolidated Results of Operations

            The operating results for the three months ended September 30, 2022 and June 30, 2022 are as follows:

    in thousands, except per share data                
      Three Months Ended       
      September 30, 2022  June 30, 2022 $ % 
      $  % of
    revenue    		  $ % of
    revenue    		 Increase/
    (decrease)    		 Increase/
    (decrease)    		 
    Revenues $1,900,351  100.000% $2,089,804  100.000%  $(189,453)   (9.1%)
    Gross profit  76,592  4.030%  67,750  3.242%  $8,842   13.1%
    Selling, general, and administrative expenses  (17,784) (0.936)%  (20,734)  (0.992)%  $(2,950)   (14.2%)
    Depreciation and amortization expense  (3,184) (0.168)%  (3,223) (0.154)% $(39)  (1.2%)
    Interest income  5,096  0.268%  5,675  0.272%  $(579)   (10.2%)
    Interest expense  (6,130) (0.323)%  (5,695)  (0.273)%  $435   7.6%
    Earnings from equity method investments  2,677  0.141%  2,590  0.124%  $87   3.4%
    Other income, net  527  0.028%  618  0.030%  $(91)   (14.7%)
    Unrealized gains on foreign exchange  214  0.011%  30  0.001%  $184   613.3%
    Net income before provision for income taxes  58,008  3.052%  47,011  2.250%  $10,997   23.4%
            Income tax expense  (12,771) (0.672)%  (9,541)  (0.457)%  $3,230   33.9%
    Net income  45,237  2.380%  37,470  1.793%  $7,767   20.7%
    Net income attributable to non-controlling interests  112  0.006%  134  0.006%  $(22)   (16.4%)
    Net income attributable to the Company $45,125  2.375% $37,336  1.787%  $7,789   20.9%
                        
    Basic and diluted net income per share attributable to
    A-Mark Precious Metals, Inc.:    		                   
                        
    Per Share Data:                   
    Basic $1.93     $1.62    $0.31   19.1%
    Diluted $1.83     $1.52    $0.31   20.4%

    Reconciliation of U.S. GAAP to Non-GAAP Financial and Liquidity Measures for the Three Months Ended September 30, 2022 and 2021

    A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the three months ended September 30, 2022 and 2021 follows:

    in thousands           
    Three Months Ended September 30, 2022 2021 $  % 
      $ $ Increase/
    (decrease)    		  Increase/
    (decrease)    		 
    Net income before provision for income taxes $58,008 $32,793 $25,215   76.9%
    Adjustments:              
    Acquisition costs  82  44 $38   86.4%
    Amortization of acquired intangibles  2,711  7,872 $(5,161)  (65.6%)
    Depreciation expense  473  399 $74   18.5%
    Adjusted net income before provision for income taxes (non-GAAP) $61,274 $41,108 $20,166   49.1%

    A reconciliation of net income to EBITDA for the three months ended September 30, 2022 and 2021 follows:

    in thousands            
    Three Months Ended September 30, 2022  2021  $  % 
      $  $  Increase/
    (decrease)    		  Increase/
    (decrease)    		 
    Net income $45,237  $26,124  $19,113  73.2%
    Adjustments:               
    Interest income  (5,096)  (5,531) $(435) (7.9%)
    Interest expense  6,130   5,473  $657  12.0%
    Amortization of acquired intangibles  2,711   7,872  $(5,161) (65.6%)
    Depreciation expense  473   399  $74  18.5%
    Income tax expense  12,771   6,669  $6,102  91.5%
       16,989   14,882  $2,107  14.2%
    Earnings before interest, taxes, depreciation, and amortization (non-GAAP) $62,226  $41,006  $21,220  51.7%
                    

    Reconciliation of U.S. GAAP to Non-GAAP Financial and Liquidity Measures for the Three Months Ended September 30, 2022 and June 30, 2022

    A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the three months ended September 30, 2022 and June 30, 2022 follows:

    in thousands             
      Three Months Ended       
      September 30, 2022 June 30, 2022 $  % 
      $ $ Increase/
    (decrease)    		  Increase/
    (decrease)    		 
    Net income before provision for income taxes $58,008 $47,011 $10,997  23.4%
    Adjustments:             
    Acquisition costs  82  394 $(312) (79.2%)
    Amortization of acquired intangibles  2,711  2,736 $(25) (0.9%)
    Depreciation expense  473  487 $(14) (2.9%)
    Adjusted net income before provision for income taxes (non-GAAP) $61,274 $50,628 $10,646  21.0%

    A reconciliation of net income to EBITDA for the three months ended September 30, 2022 and June 30, 2022 follows:

    in thousands Three Months Ended        
      September 30, 2022  June 30,
    2022    		  $  % 
      $  $  Increase/
    (decrease)    		  Increase/
    (decrease)    		 
    Net income $45,237  $37,470  $7,767  20.7%
    Adjustments:               
    Interest income  (5,096)  (5,675) $(579) (10.2%)
    Interest expense  6,130   5,695  $435  7.6%
    Amortization of acquired intangibles  2,711   2,736  $(25) (0.9%)
    Depreciation expense  473   487  $(14) (2.9%)
    Income tax expense  12,771   9,541  $3,230  33.9%
       16,989   12,784  $4,205  32.9%
    Earnings before interest, taxes, depreciation, and amortization (non-GAAP) $62,226  $50,254  $11,972  23.8%
                    


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