EL SEGUNDO, Calif., Sept. 12, 2017 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ:
AMRK), a full-service precious metals trading company and an official distributor for all the major sovereign
mints, reported results for the fiscal fourth quarter and full year ended June 30, 2017.
Fiscal Q4 2017 Financial Highlights
- Revenues decreased 24% to $1.33 billion from $1.74 billion for the three months ended June 30, 2016 and decreased 23% from
$1.73 billion for the three months ended March 31, 2017
- Gross profit decreased 20% to $6.1 million from $7.6 million for the three months ended June 30, 2016 and decreased 17% from
$7.3 million for the three months ended March 31, 2017
- Net income was increased 14% to $1.2 million or $0.17 per diluted share from $1.1 million or $0.15 per diluted share for the
three months ended June 30, 2016 and decreased 5% from $1.2 million or $0.16 per diluted share for the three months ended March
31, 2017
- Gold ounces sold decreased 59% to 290,000 ounces from 711,000 for the three months ended June 30, 2016 and decreased 50% from
579,000 for the three months ended March 31, 2017
- Silver ounces sold decreased 45% to 14.1 million ounces from 25.8 million ounces for the three months ended June 30, 2016 and
decreased 32% from 20.9 million from the three months ended March 31, 2017
- Trading ticket volume increased 34% to 28,098 tickets from 20,964 for the three months ended June 30, 2016 and increased 2%
from 27,580 for the three months ended March 31, 2017
- As of June 30, 2017, the number of secured loans increased 103% to 2,375 from 1,173 as of June 30, 2016 and increased 11%
from 2,138 as of March 31, 2017
Fiscal Q4 2017 Financial Results
Revenues decreased 24% to $1.33 billion from $1.74 billion in the same year-ago quarter. The decrease in revenues was mainly due to
a decrease in the total amount of gold and silver ounces sold, primarily related to slower market conditions in the current period
compared to the prior year.
Gross profit decreased 20% to $6.1 million (0.46% of revenue) from $7.6 million (0.44% of revenue) in the same year-ago quarter.
The decrease in gross profit was primarily related to a decrease in the total volume of gold and silver ounces sold offset by
increased trading profits. The decrease in volume of gold and silver ounces sold was primarily related to slower market conditions
in the current period compared to the prior year.
Selling, general and administrative expenses decreased 6% to $5.6 million from $5.9 million in the same year-ago quarter. The
decrease was primarily due to lower overall compensation expense (particularly incentive compensation) offset by increased expenses
related to the development of a new enterprise resource system, selling, general and administrative expenses related to our
acquisition of SilverTowne Mint and a one-time disposal of fixed assets related to the move of the company’s
headquarters.
Interest income increased 42% to $3.5 million from $2.4 million in same year-ago quarter. The increase in interest income was
primarily due to an increase in the size of the company’s loan portfolio (which generated $2.2 million in interest income compared
to $1.4 million in the same year-ago quarter, an increase of 55%), as well as increased use of the company’s inventory finance
products by its customers.
Interest expense increased 30% to $2.7 million from $2.1 million in same year-ago quarter. The increase was primarily due to a
greater usage of the company’s lines of credit and other product financing arrangements. The increase was also due, in part, to
higher LIBOR interest rates which went in to effect subsequent to the Federal Reserve rate increases and increased amortization of
loan facility costs.
Net income increased 14% to $1.2 million or $0.17 per diluted share as compared to $1.1 million or $0.15 per diluted share in
the same year-ago quarter. This increase was due primarily to higher interest income and lower tax provision, offset by lower
gross profit and higher interest expense.
Full Year 2017 Financial Highlights
- Revenues increased 3% to $6.99 billion from $6.78 billion for the full year ended June 30, 2016
- Gross profit decreased 9% to $31.3 million (0.45% of revenue) from $34.5 million (0.51% of revenue) for the full year ended
June 30, 2016
- Net income decreased 24% to $7.1 million or $1.00 per diluted share from $9.3 million or $1.30 per diluted share for the full
year ended June 30, 2016
- Gold ounces sold decreased 27% to 2.2 million ounces from 3.0 million for the full year ended June 30, 2016
- Silver ounces sold decreased 37% to 79.6 million ounces from 126.3 million for the full year ended June 30, 2016
- Trading ticket volume increased 28% to 112,907 tickets from 88,486 for the full year ended June 30, 2016
- As of June 30, 2017, the number of secured loans increased 103% to 2,375 from 1,173 as of June 30, 2016
Full Year 2017 Financial Results
Revenues increased 3% to $6.99 billion from $6.78 billion in the same period last year. The increase in revenues was primarily due
to an increase in precious metal prices and higher forward sales, partially offset by a decrease in the total amount of gold ounces
and silver ounces sold.
Gross profit decreased 9% to $31.3 million (0.45% of revenue) from $34.5 million (0.51% of revenue) in the same year-ago period.
The decrease in gross margin was primarily due to subdued market conditions during the second half of 2017, which constrained both
volume and premiums spreads, partially offset by increased trading profits during 2017. Furthermore, the decrease in gross profit
was due to higher premium spreads on the company’s primary products in the first fiscal quarter of 2016, when the company
experienced atypical volatility and supply constraints.
Selling, general and administrative expenses increased 5% to $23.3 million from $22.2 million in the same year-ago period. The
increase was due to various acquisition costs, increased selling, general and administrative expenses related to SilverTowne
Minting operations, increased consulting costs related to the development of a new enterprise resource system and a one-time
disposal of fixed assets related to the relocation of the company’s headquarters. The increase was offset by a decrease in overall
compensation costs, primarily related to discretionary incentive compensation.
Interest income increased 43% to $12.6 million from $8.8 million in the same year-ago period. The increase in interest income
was primarily due to an increase in the size of the company’s loan portfolio (which generated $7.7 million in interest income
compared to $4.8 million in the same year-ago period, an increase of 62%) as well as increased use of the company’s inventory
finance products by its customers.
Interest expense increased 60% to $10.1 million from $6.3 million in the same year-ago period. The increase was primarily due to
a greater usage of the company’s lines of credit and other product financing arrangements, which resulted in $8.0 million of
interest compared to $5.7 million in fiscal 2016, an increase of 39%. The increase was also due, in part, to higher LIBOR interest
rates which went in to effect subsequent to the Federal Reserve rate increases.
Net income decreased 24% to $7.1 million or $1.00 per diluted share from $9.3 million or $1.30 per diluted share in the same
period last year. The decrease was primarily due to lower gross profit and higher interest expense, offset by higher interest
income.
Management Commentary
“Our results for Q4 were consistent with our expectations, given the continued subdued market activity that persisted during the
quarter,” said A-Mark CEO Greg Roberts. “Most notably, we achieved our 14th consecutive quarter of profitability since
becoming public, which is a testament to our continued execution of and ability to capitalize on our business plan. With
historically low sales levels at the U.S. mint reinforced by the sustained strength of the U.S. equities market as a whole, we
continued to face headwinds which impacted demand for precious metals. Nevertheless, we were able to take advantage of trading
opportunities in the period and experienced continued growth in our finance product offerings, further establishing our finance
book as a meaningful source of income and predictability to our business model. In fact, net interest income in Q4 increased 42%
year-over-year and 43% for the full fiscal year.
“Our results for the fourth quarter were also reflective of fiscal 2017 as whole, showcasing the viability of our increasingly
diversified business and its effectiveness in mitigating the effects of current market conditions. Operationally, fiscal 2017
marked another fundamental year in our company’s development, laying the foundation for future growth and increased profitability
when market conditions create greater volatility and demand. In the meantime, we have been focused on expanding our trading
capacity, adding new value-added services and also making strategic acquisitions to more vertically align our operations, as we did
with SilverTowne Mint in August 2016. This joint venture has now been operational for 12 months and, in that time, has
significantly expanded our capacity to meet unforeseen surges in demand during volatile market environments. Over the course of the
year, our initiatives with SilverTowne have been to drive growth through new marketing efforts and consignment offerings as well as
through the development of a variety of unique product offerings including customer branded silver products and legal tender
coins.
“A-Mark has also continued to benefit from the operational and cost efficiencies provided by our logistics facility in Las Vegas
and its wholesale operations consolidation. One of our key initiatives in fiscal 2017 was to further expand our suite of ancillary
services at the facility. In addition to securing new logistics customers, our marketing and sales efforts also remain focused on
attracting additional customers for our precious metals storage programs, including precious metal custody options for
self-directed IRA accounts. Along that line, in fiscal Q1 2018, we acquired substantially all of the operating assets of Goldline
International, a leading direct retailer of precious metals to the investor community. Historically, Goldline has sold more than
$600 million worth of precious metals for inclusion in self-directed IRAs; we are optimistic that many of these buyers will take
advantage of our secured storage facilities. The acquisition also provides us with a significant opportunity to leverage our
value-added services to Goldline’s 150,000 clients and 1.2 million prospective client leads. In all, Goldline marks the culmination
of our three-pronged vertical integration strategy―first with our Las Vegas logistics facility, followed by SilverTowne Mint, and
now with Goldline―to build a world-class, vertically integrated precious metals company.
“As we look ahead to our current quarter, we continue to experience the slower market activity that characterized the second
half of fiscal 2017. And although these tepid market trends are expected to persist in the near term, we remain increasingly
cognizant of the geopolitical climate and its ability to effect immediate change on the precious metals environment. We’ve made
significant progress along our strategic roadmap, positioning us effectively for the future. Moving forward, we aim to leverage
that progress, as well as our diversified business model, to further expand our margins and capitalize on a more favorable market
environment. We continue to believe A-Mark is in a strong position to grow, and we are focused on delivering this growth through
the competitive advantages we’ve established over the last several years. Collectively, our achievements have allowed us to deepen
our customer relationships, which we believe will drive more predictable growth and profitably in the quarters and years
ahead.”
Conference Call
A-Mark will hold a conference call today (September 12, 2017) to discuss these financial results. The company's CEO Greg Roberts,
President Thor Gjerdrum and CFO Cary Dickson will host the call at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). A question and
answer session will follow management's presentation.
To participate, please dial the appropriate number at least five minutes prior to the start time, and ask for the A-Mark
Precious Metals conference call.
U.S. dial-in number: 1-877-407-0789
International number: 1-201-689-8562
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 Liolios Group at 949-574-3860.
A replay of the call will be available after 7:30 p.m. Eastern time through September 26, 2017.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Conference ID: 13670031
About A-Mark Precious Metals
A-Mark Precious Metals, Inc. is a full-service precious metals trading company and an official distributor for many government
mints throughout the world. The company offers gold, silver, platinum and palladium in the form of bars, plates, powder, wafers,
grain, ingots and coins. Its Industrial unit services manufacturers and fabricators of products utilizing or incorporating precious
metals, while its Coin & Bar unit deals in over 200 coin and bar products in a variety of weights, shapes and sizes for
distribution to dealers and other qualified purchasers. The company operates trading centers in El Segundo, California, and Vienna,
Austria, for buying and selling precious metals.
In addition to wholesale and trading activity, A-Mark offers customers a variety of services, including financing, consignment
and various customized financial programs. As a U.S. Mint-authorized purchaser of gold, silver and platinum coins, A-Mark purchases
bullion products directly from the U.S. Mint for sale to customers. A-Mark also has distributorships with other sovereign mints,
including in Australia, Austria, Canada, China, Mexico and South Africa. Customers of A-Mark include mints, manufacturers and
fabricators, refiners, coin and metal dealers, banks and other financial institutions, jewelers, investors and collectors. For more
information about A-Mark Precious Metals, visit www.amark.com.
Through its subsidiary Collateral Finance Corporation, a licensed California Finance Lender, the company offers loans
collateralized by numismatic and semi-numismatic coins and bullion to coin and metal dealers, investors and collectors. Through its
Transcontinental Depository Services subsidiary, it offers a variety of managed storage options for precious metals products to
financial institutions, dealers, investors and collectors around the world. Through its A-M Global Logistics subsidiary, the
company provides its customers an array of complementary services, including storage, shipping, handling, receiving, processing,
and inventorying of precious metals and custom coins on a secure basis. A-Mark also holds a majority stake in a joint venture that
owns the minting operations known as SilverTowne Mint. SilverTowne Mint is a leading producer of fabricated silver bullion and
specialty products. For more information about SilverTowne Mint, please visit www.silvertownemint.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. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results 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 our 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 our higher margin services, which could depress pricing; the failure of our business
model to respond to changes in the market environment as anticipated; general risks of doing business in the commodity markets; and
other business, economic, financial and governmental risks as 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.
| |
| A-MARK PRECIOUS METALS, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (amounts in thousands, except for
share data) |
| |
| |
June 30,
2017 |
|
June 30,
2016 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
| Cash |
$ |
13,059 |
|
|
$ |
17,142 |
|
| Receivables, net |
39,295 |
|
|
43,302 |
|
| Derivative assets |
17,587 |
|
|
33,732 |
|
| Secured loans receivable |
91,238 |
|
|
70,004 |
|
| |
|
|
|
| Inventories: |
|
|
|
| Inventories |
149,316 |
|
|
185,699 |
|
| Restricted inventories |
135,343 |
|
|
59,358 |
|
| |
284,659 |
|
|
245,057 |
|
| |
|
|
|
| Income taxes receivable |
— |
|
|
7,318 |
|
| Income taxes receivable from Former Parent |
— |
|
|
203 |
|
| Prepaid expenses and other assets |
1,183 |
|
|
1,503 |
|
| Total current assets |
447,021 |
|
|
418,261 |
|
| |
|
|
|
| Plant, property and equipment, net |
6,607 |
|
|
3,482 |
|
| Goodwill |
8,881 |
|
|
4,620 |
|
| Intangibles, net |
4,065 |
|
|
1,987 |
|
| Long-term secured loans receivable |
— |
|
|
500 |
|
| Long-term investments |
7,967 |
|
|
7,873 |
|
| Deferred tax assets - non-current |
3,959 |
|
|
424 |
|
| Total assets |
$ |
478,500 |
|
|
$ |
437,147 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| Current liabilities: |
|
|
|
| Lines of credit |
$ |
180,000 |
|
|
$ |
212,000 |
|
| Liability on borrowed metals |
5,625 |
|
|
4,352 |
|
| Product financing arrangements |
135,343 |
|
|
59,358 |
|
| Accounts payable |
41,947 |
|
|
46,769 |
|
| Derivative liabilities |
34,582 |
|
|
36,454 |
|
| Note payable - related party |
500 |
|
|
— |
|
| Accrued liabilities |
4,945 |
|
|
7,660 |
|
| Income taxes payable |
1,418 |
|
|
— |
|
| Total current liabilities |
404,360 |
|
|
366,593 |
|
| Deferred tax liabilities - non-current |
— |
|
|
7,245 |
|
| Other long-term liabilities |
1,117 |
|
|
— |
|
| Total liabilities |
405,477 |
|
|
373,838 |
|
| |
|
|
|
| Commitments and contingencies |
|
|
|
| |
|
|
|
| Stockholders’ equity: |
|
|
|
| Preferred stock, $0.01 par value, authorized 10,000,000 shares;
issued and outstanding: none as of June 30, 2017 and 2016 |
— |
|
|
— |
|
Common Stock, par value $0.01; 40,000,000 shares authorized;
7,031,450 and 7,021,450
shares issued and outstanding as of June 30, 2017 and June 30, 2016, respectively |
71 |
|
|
71 |
|
| Additional paid-in capital |
23,526 |
|
|
22,220 |
|
| Retained earnings |
45,994 |
|
|
41,018 |
|
| Total A-Mark Precious Metals, Inc. stockholders’
equity |
69,591 |
|
|
63,309 |
|
| Non-controlling interest |
3,432 |
|
|
— |
|
| Total stockholders’ equity |
73,023 |
|
|
63,309 |
|
| Total liabilities, non-controlling interest and stockholders’
equity |
$ |
478,500 |
|
|
$ |
437,147 |
|
| |
|
|
|
|
|
|
|
| A-MARK PRECIOUS METALS, INC. |
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
| (in thousands, except for share and
per share data) |
|
| |
|
| Years Ended June 30, |
|
2017 |
|
2016 |
|
| Revenues |
|
$ |
6,989,624 |
|
|
$ |
6,784,039 |
|
|
| Cost of sales |
|
6,958,290 |
|
|
6,749,518 |
|
|
| Gross profit |
|
31,334 |
|
|
34,521 |
|
|
| |
|
|
|
|
|
| Selling, general and administrative expenses |
|
(23,343 |
) |
|
(22,233 |
) |
|
| Interest income |
|
12,553 |
|
|
8,795 |
|
|
| Interest expense |
|
(10,117 |
) |
|
(6,319 |
) |
|
| Other income |
|
298 |
|
|
701 |
|
|
| Unrealized gain on foreign exchange |
|
60 |
|
|
99 |
|
|
| Net income before provision for income taxes |
|
10,785 |
|
|
15,564 |
|
|
| Provision for income taxes |
|
(3,721 |
) |
|
(6,293 |
) |
|
| Net income |
|
7,064 |
|
|
9,271 |
|
|
| Add: Net loss attributable to non-controlling interest |
|
(22 |
) |
|
— |
|
|
| Net income attributable to the Company |
|
$ |
7,086 |
|
|
$ |
9,271 |
|
|
| |
|
|
|
|
|
| Basic and diluted income per share attributable to A-Mark
Precious Metals, Inc.: |
|
| Basic |
|
$ |
1.01 |
|
|
$ |
1.33 |
|
|
| Diluted |
|
$ |
1.00 |
|
|
$ |
1.30 |
|
|
| Weighted average shares outstanding: |
|
|
|
|
|
| Basic |
|
7,029,400 |
|
|
6,981,900 |
|
|
| Diluted |
|
7,121,500 |
|
|
7,120,300 |
|
|
| |
|
|
|
|
|
|
|
| A-MARK PRECIOUS METALS, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
| (amounts in
thousands) |
| |
| Years Ended, |
|
June 30,
2017 |
|
June 30,
2016 |
| Cash flows from operating activities: |
|
|
|
|
| Net income |
|
$ |
7,064 |
|
|
$ |
9,271 |
|
| Adjustments to reconcile net income to net cash used in operating
activities: |
|
|
|
|
| Depreciation and amortization |
|
1,521 |
|
|
1,216 |
|
| Amortization of loan cost |
|
892 |
|
|
204 |
|
| Deferred income taxes |
|
(10,780 |
) |
|
6,695 |
|
| Interest added to principal of secured loans |
|
(68 |
) |
|
(83 |
) |
| Accrued earn-out |
|
(198 |
) |
|
— |
|
| Share-based compensation |
|
996 |
|
|
419 |
|
| Earnings from equity method investment |
|
(94 |
) |
|
(701 |
) |
| Loss on disposal of fixed assets |
|
178 |
|
|
— |
|
| Changes in assets and liabilities: |
|
|
|
|
| Receivables |
|
4,007 |
|
|
(13,277 |
) |
| Secured loans |
|
8,765 |
|
|
4,345 |
|
| Secured loans to Former Parent |
|
1,370 |
|
|
(1,369 |
) |
| Derivative assets |
|
16,145 |
|
|
(22,368 |
) |
| Income tax receivable |
|
7,318 |
|
|
528 |
|
| Inventories |
|
(39,602 |
) |
|
(53,556 |
) |
| Prepaid expenses and other current assets |
|
(572 |
) |
|
(505 |
) |
| Accounts payable |
|
(4,822 |
) |
|
(3,870 |
) |
| Derivative liabilities |
|
(1,872 |
) |
|
18,557 |
|
| Liabilities on borrowed metals |
|
1,273 |
|
|
(5,148 |
) |
| Accrued liabilities |
|
(2,923 |
) |
|
2,594 |
|
| Receivable from/payables to Former Parent |
|
203 |
|
|
892 |
|
| Income taxes payable |
|
1,418 |
|
|
— |
|
| Net cash used in operating activities |
|
(9,781 |
) |
|
(56,156 |
) |
| Cash flows from investing activities: |
|
|
|
|
| Capital expenditures for property and equipment |
|
(2,265 |
) |
|
(1,466 |
) |
| Purchase of long-term investments |
|
— |
|
|
(4,672 |
) |
| Secured loans, net |
|
(30,801 |
) |
|
(24,081 |
) |
| Acquisition of majority-owned subsidiary, net of cash |
|
(3,421 |
) |
|
— |
|
| Net cash used in investing activities |
|
(36,487 |
) |
|
(30,219 |
) |
| Cash flows from financing activities: |
|
|
|
|
| Product financing arrangements, net |
|
75,985 |
|
|
19,933 |
|
| Dividends |
|
(2,110 |
) |
|
(1,675 |
) |
| (Repayments) borrowings under lines of credit, net |
|
(32,000 |
) |
|
65,000 |
|
| Stock award grant |
|
172 |
|
|
1 |
|
| Excess tax benefit of share-based award |
|
138 |
|
|
— |
|
| Repurchase and retirement of restricted stock for payroll taxes |
|
— |
|
|
(669 |
) |
| Net cash provided by financing activities |
|
42,185 |
|
|
82,590 |
|
| |
|
|
|
|
| Net decrease in cash and cash equivalents |
|
(4,083 |
) |
|
(3,785 |
) |
| Cash and cash equivalents, beginning of period |
|
17,142 |
|
|
20,927 |
|
| Cash and cash equivalents, end of period |
|
$ |
13,059 |
|
|
$ |
17,142 |
|
| |
|
|
|
|
| |
A-MARK PRECIOUS METALS, INC.
|
| CONSOLIDATED STATEMENTS OF CASH
FLOWS |
| (amounts in thousands) |
| |
| ( - Continued from preceding page - ) |
|
|
|
|
| Years Ended, |
|
June 30,
2017 |
|
June 30,
2016 |
| Supplemental disclosures of cash flow information: |
|
|
|
|
| Cash paid during the period for: |
|
|
|
|
| Interest expense |
|
$ |
9,448 |
|
|
$ |
6,143 |
|
| Income taxes |
|
$ |
11,874 |
|
|
$ |
149 |
|
| |
|
|
|
|
| Non-cash investing and financing activities: |
|
|
|
|
| Interest added to principal of secured loans |
|
$ |
68 |
|
|
$ |
83 |
|
| Contribution of assets from minority interest |
|
$ |
3,454 |
|
|
$ |
— |
|
| Payable to minority interest partner for acquired business |
|
$ |
500 |
|
|
$ |
— |
|
| Earn out obligation payable to minority interest partner |
|
$ |
1,523 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
Consolidated Results of Operations
The operating results of our business for the years ended June 30, 2017 and 2016 are as follows:
| in thousands, except per share data |
|
|
| Years Ended June 30, |
2017 |
|
2016 |
|
$ |
|
% |
| |
$ |
|
%
of
revenue |
|
$ |
|
%
of
revenue |
|
Increase/
(decrease) |
|
Increase/
(decrease) |
| Revenues |
$ |
6,989,624 |
|
|
100.000 |
% |
|
$ |
6,784,039 |
|
|
100.000 |
% |
|
$ |
205,585 |
|
|
3.0 |
% |
| Gross profit |
31,334 |
|
|
0.448 |
% |
|
34,521 |
|
|
0.509 |
% |
|
$ |
(3,187 |
) |
|
(9.2 |
)% |
| Selling, general and administrative expenses |
(23,343 |
) |
|
(0.334 |
)% |
|
(22,233 |
) |
|
(0.328 |
)% |
|
$ |
1,110 |
|
|
5.0 |
% |
| Interest income |
12,553 |
|
|
0.180 |
% |
|
8,795 |
|
|
0.130 |
% |
|
$ |
3,758 |
|
|
42.7 |
% |
| Interest expense |
(10,117 |
) |
|
(0.145 |
)% |
|
(6,319 |
) |
|
(0.093 |
)% |
|
$ |
3,798 |
|
|
60.1 |
% |
| Other income |
298 |
|
|
0.004 |
% |
|
701 |
|
|
0.010 |
% |
|
$ |
(403 |
) |
|
(57.5 |
)% |
| Unrealized gain on foreign exchange |
60 |
|
|
0.001 |
% |
|
99 |
|
|
0.001 |
% |
|
$ |
(39 |
) |
|
NM |
|
| Net income before provision for income taxes |
10,785 |
|
|
0.154 |
% |
|
15,564 |
|
|
0.229 |
% |
|
$ |
(4,779 |
) |
|
(30.7 |
)% |
| Provision for income taxes |
(3,721 |
) |
|
(0.053 |
)% |
|
(6,293 |
) |
|
(0.093 |
)% |
|
$ |
(2,572 |
) |
|
(40.9 |
)% |
| Net income |
7,064 |
|
|
0.101 |
% |
|
9,271 |
|
|
0.137 |
% |
|
$ |
(2,207 |
) |
|
(23.8 |
)% |
| Add: |
Net loss attributable to non-controlling interest |
(22 |
) |
|
— |
% |
|
— |
|
|
— |
% |
|
$ |
22 |
|
|
NM |
|
| Net income attributable to the Company |
$ |
7,086 |
|
|
0.101 |
% |
|
$ |
9,271 |
|
|
0.137 |
% |
|
$ |
(2,185 |
) |
|
(23.6 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted income per share attributable to A-Mark
Precious Metals, Inc.: |
| Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
$ |
1.01 |
|
|
|
|
$ |
1.33 |
|
|
|
|
$ |
(0.32 |
) |
|
(24.1 |
)% |
| Diluted |
$ |
1.00 |
|
|
|
|
$ |
1.30 |
|
|
|
|
$ |
(0.30 |
) |
|
(23.1 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The operating results of our business for the three months ended June 30, 2017 and 2016 are as follows:
| in thousands, except per share data |
|
|
| Three Months Ended June 30, |
2017 |
|
2016 |
|
$ |
|
% |
| |
$ |
|
%
of
revenue |
|
$ |
|
%
of
revenue |
|
Increase/
(decrease) |
|
Increase/
(decrease) |
| Revenues |
$ |
1,326,765 |
|
|
100.000 |
% |
|
$ |
1,735,210 |
|
|
100.000 |
% |
|
$ |
(408,445 |
) |
|
(23.5 |
)% |
| Gross profit |
6,079 |
|
|
0.458 |
% |
|
7,563 |
|
|
0.436 |
% |
|
$ |
(1,484 |
) |
|
(19.6 |
)% |
| Selling, general and administrative expenses |
(5,559 |
) |
|
(0.419 |
)% |
|
(5,931 |
) |
|
(0.342 |
)% |
|
$ |
(372 |
) |
|
(6.3 |
)% |
| Interest income |
3,452 |
|
|
0.260 |
% |
|
2,430 |
|
|
0.140 |
% |
|
$ |
1,022 |
|
|
42.1 |
% |
| Interest expense |
(2,729 |
) |
|
(0.206 |
)% |
|
(2,105 |
) |
|
(0.121 |
)% |
|
$ |
624 |
|
|
29.6 |
% |
| Other income |
28 |
|
|
0.002 |
% |
|
88 |
|
|
0.005 |
% |
|
$ |
(60 |
) |
|
(68.2 |
)% |
| Unrealized (loss) gain on foreign exchange |
48 |
|
|
0.004 |
% |
|
90 |
|
|
0.005 |
% |
|
$ |
(42 |
) |
|
NM |
|
| Net income before provision for income taxes |
1,319 |
|
|
0.099 |
% |
|
2,135 |
|
|
0.123 |
% |
|
$ |
(816 |
) |
|
(38.2 |
)% |
| Provision for income taxes |
(239 |
) |
|
(0.018 |
)% |
|
(1,067 |
) |
|
(0.062 |
)% |
|
$ |
(828 |
) |
|
(77.6 |
)% |
| Net income |
1,080 |
|
|
0.081 |
% |
|
1,068 |
|
|
0.062 |
% |
|
$ |
12 |
|
|
1.1 |
% |
| Add: |
Net loss attributable to non-controlling interest |
(140 |
) |
|
(0.011 |
)% |
|
— |
|
|
— |
% |
|
$ |
140 |
|
|
NM |
|
| Net income attributable to the Company |
$ |
1,220 |
|
|
0.092 |
% |
|
$ |
1,068 |
|
|
0.062 |
% |
|
$ |
152 |
|
|
14.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted income per share attributable to A-Mark
Precious Metals, Inc.: |
| Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
$ |
0.17 |
|
|
|
|
$ |
0.15 |
|
|
|
|
$ |
0.02 |
|
|
13.3 |
% |
| Diluted |
$ |
0.17 |
|
|
|
|
$ |
0.15 |
|
|
|
|
$ |
0.02 |
|
|
13.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact: Thor Gjerdrum, President A-Mark Precious Metals, Inc. 310-587-1414 thor@amark.com Investor Relations Contact: Matt Glover Liolios Group, Inc. 949-574-3860 AMRK@liolios.com
