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Exhibit 99.1

 

A-Mark Precious Metals Reports Fiscal Second Quarter 2023 Results

 

Q2 FY 2023 Diluted Earnings Per Share of $1.35 up from $1.30 in Q2 FY 2022

 

230% YoY Increase in New Direct-to-Consumer (DTC) Customers, including customers acquired from BGASC

 

 

El Segundo, CA – February 6, 2023 – A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, reported results for the fiscal second quarter ended December 31, 2022.

 

Management Commentary

 

“Our second quarter results continue to demonstrate the strength of our fully integrated precious metals platform,” said A-Mark CEO Greg Roberts. “Despite the subdued market conditions we experienced during the latter half of the quarter, our diversified business model enabled us to deliver positive financial results, including a 6% quarterly return on equity and EBITDA of nearly $49 million. Our DTC segment contributed significantly to our overall results, representing 57% of the consolidated gross profit for the quarter and reporting a 130 basis point increase in our DTC gross margin percentage year-over-year.

 

“We have remained active in seeking investment opportunities to strategically enhance our business. As we announced last month, we purchased a 12% minority interest in Texas Precious Metals, LLC, a leading e-commerce precious metals retailer with a strong geographic presence in Texas. Last week, we entered into a definitive agreement to acquire a 25% minority interest in Atkinsons Bullion & Coins, a leading United Kingdom-based online retailer of precious metals, bullion and coins. This investment transaction, which is expected to close in the first quarter of calendar 2023 (subject to customary closing conditions), expands our international footprint outside of North America. Additionally, as we announced previously, JM Bullion closed the asset acquisition of BGASC during the second quarter. We are encouraged by the performance of the now fully integrated BGASC brand and the customer base we acquired. Our overall DTC business continues to grow and remains a key contributor to our overall business.

 

“Our minting business has remained a consistent driver for our performance with production levels continuing at near record levels. Some sovereign mints continue to face challenges to meet demand due to supply chain constraints, elevating the value and importance of A-Mark as a reliable and low-cost producer.

 

“Looking ahead, we remain confident in the stability of our fully integrated precious metals platform, which has historically generated positive results even in more modest market conditions, with the opportunity for outsized returns in periods of elevated volatility. We continue to explore additional strategic investment and acquisition opportunities to further enhance our platform and business model.”

 

 

 

1


 

 

Fiscal Second Quarter 2023 Operational Highlights

 

Gold ounces sold in the three months ended December 31, 2022 decreased 10% to 565,000 ounces from 631,000 ounces for the three months ended December 31, 2021, and decreased 10% from 629,000 ounces for the three months ended September 30, 2022
Silver ounces sold in the three months ended December 31, 2022 increased 19% to 38.1 million ounces from 32.0 million ounces for the three months ended December 31, 2021, and increased 6% from 35.9 million ounces for the three months ended September 30, 2022
As of December 31, 2022, the number of secured loans decreased 56% to 1,049 from 2,393 as of December 31, 2021, and decreased 3% from 1,082 as of September 30, 2022
Direct-to-Consumer new customers for the three months ended December 31, 2022 increased 230% to 131,200 from 39,800 for the three months ended December 31, 2021, and increased 168% from 49,000 for the three months ended September 30, 2022. For the three month period ended December 31, 2022, approximately 55% of the new customers were attributable to the acquired customer list of BGASC in October 2022
Direct-to-Consumer active customers for the three months ended December 31, 2022 increased 30% to 116,400 from 89,500 for the three months ended December 31, 2021, and decreased 17% from 139,900 for the three months ended September 30, 2022
Direct-to-Consumer average order value for the three months ended December 31, 2022 increased $16, or 1% to $2,389 from $2,373 for the three months ended December 31, 2021, and increased $56, or 2% from $2,333 for the three months ended September 30, 2022
JM Bullion’s average order value for the three months ended December 31, 2022 increased $61, or 3% to $2,238 from $2,177 for the three months ended December 31, 2021, and increased $87, or 4% from $2,151 for the three months ended September 30, 2022

 

 

2


 

 

 

 

Three Months Ended December 31,

 

 

2022

2021

Selected Operating Metrics:

 

 

 

 

 

 

 

 

 

Gold ounces sold (1)

 

 

565,000

 

 

 

631,000

 

 

Silver ounces sold (2)

 

 

38,137,000

 

 

 

31,987,000

 

 

Number of secured loans at period end (3)

 

 

1,049

 

 

 

2,393

 

 

Direct-to-Consumer ("DTC") number of new customers (4)

 

 

131,200

 

 

 

39,800

 

 

Direct-to-Consumer number of active customers (5)

 

 

116,400

 

 

 

89,500

 

 

Direct-to-Consumer number of total customers (6)

 

 

2,193,200

 

 

 

1,902,900

 

 

Direct-to-Consumer average order value ("AOV") (7)

 

$

2,389

 

 

$

2,373

 

 

JM Bullion ("JMB") average order value (8)

 

$

2,238

 

 

$

2,177

 

 

CyberMetals number of new customers (9)

 

 

4,300

 

 

 

-

 

 

CyberMetals number of active customers (10)

 

 

1,300

 

 

 

-

 

 

CyberMetals number of total customers (11)

 

 

12,500

 

 

 

-

 

 

CyberMetals customer assets under management (12)

 

$

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 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 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.

 

 

3


 

 

 

 

Three Months Ended

 

 

December 31, 2022

September 30, 2022

Selected Operating Metrics:

 

 

 

 

 

 

 

 

 

Gold ounces sold (1)

 

 

565,000

 

 

 

629,000

 

 

Silver ounces sold (2)

 

 

38,137,000

 

 

 

35,917,000

 

 

Number of secured loans at period end (3)

 

 

1,049

 

 

 

1,082

 

 

Direct-to-Consumer ("DTC") number of new customers (4)

 

 

131,200

 

 

 

49,000

 

 

Direct-to-Consumer number of active customers (5)

 

 

116,400

 

 

 

139,900

 

 

Direct-to-Consumer number of total customers (6)

 

 

2,193,200

 

 

 

2,062,000

 

 

Direct-to-Consumer average order value ("AOV") (7)

 

$

2,389

 

 

$

2,333

 

 

JM Bullion ("JMB") average order value (8)

 

$

2,238

 

 

$

2,151

 

 

CyberMetals number of new customers (9)

 

 

4,300

 

 

 

2,300

 

 

CyberMetals number of active customers (10)

 

 

1,300

 

 

 

2,000

 

 

CyberMetals number of total customers (11)

 

 

12,500

 

 

 

8,200

 

 

CyberMetals customer assets under management (12)

 

$

5,600,000

 

 

$

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.

(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 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.

 

 

 

4


 

 

Fiscal Six Months 2023 Operational Highlights

 

Gold ounces sold in the six months ended December 31, 2022 decreased 8% to 1,194,000 ounces from 1,300,000 ounces for the six months ended December 31, 2021
Silver ounces sold in the six months ended December 31, 2022 increased 23% to 74.1 million ounces from 60.1 million ounces for the six months ended December 31, 2021
Direct-to-Consumer new customers for the six months ended December 31, 2022 increased 145% to 180,200 from 73,600 for the six months ended December 31, 2021. For the six month period ended December 31, 2022, approximately 40% of the new customers were attributable to the acquired customer list of BGASC in October 2022
Direct-to-Consumer active customers for the six months ended December 31, 2022 decreased 9% to 188,500 from 207,200 for the six months ended December 31, 2021
Direct-to-Consumer average order value for the six months ended December 31, 2022 increased $29, or 1% to $2,361 from $2,332 for the six months ended December 31, 2021
JM Bullion’s average order value for the six months ended December 31, 2022 increased $41, or 2% to $2,195 from $2,154 for the six months ended December 31, 2021

 

 

Six Months Ended December 31,

 

 

2022

2021

Selected Operating Metrics:

 

 

 

 

 

 

 

 

 

Gold ounces sold (1)

 

 

1,194,000

 

 

 

1,300,000

 

 

Silver ounces sold (2)

 

 

74,054,000

 

 

 

60,114,000

 

 

Number of secured loans at period end (3)

 

 

1,049

 

 

 

2,393

 

 

Direct-to-Consumer ("DTC") number of new customers (4)

 

 

180,200

 

 

 

73,600

 

 

Direct-to-Consumer number of active customers (5)

 

 

188,500

 

 

 

207,200

 

 

Direct-to-Consumer number of total customers (6)

 

 

2,193,200

 

 

 

1,902,900

 

 

Direct-to-Consumer average order value ("AOV") (7)

 

$

2,361

 

 

$

2,332

 

 

JM Bullion ("JMB") average order value (8)

 

$

2,195

 

 

$

2,154

 

 

CyberMetals number of new customers (9)

 

 

6,600

 

 

 

-

 

 

CyberMetals number of active customers (10)

 

 

1,600

 

 

 

-

 

 

CyberMetals number of total customers (11)

 

 

12,500

 

 

 

-

 

 

CyberMetals customer assets under management (12)

 

$

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 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 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.

 

 

5


 

 

 

Fiscal Second Quarter 2023 Financial Highlights

 

Revenues for the three months ended December 31, 2022 increased 0.2% to $1.950 billion from $1.946 billion for the three months ended December 31, 2021 and increased 3% from $1.900 billion for the three months ended September 30, 2022
Gross profit for the three months ended December 31, 2022 decreased 3% to $64.0 million from $65.9 million for the three months ended December 31, 2021 and decreased 16% from $76.6 million for the three months ended September 30, 2022
Gross profit margin for the three months ended December 31, 2022 decreased to 3.28% of revenue, from 3.39% of revenue for the three months ended December 31, 2021, and declined from 4.03% of revenue in the three months ended September 30, 2022
Net income attributable to the Company for the three months ended December 31, 2022 increased 5% to $33.5 million from $31.8 million for the three months ended December 31, 2021, and decreased 26% from $45.1 million for the three months ended September 30, 2022
Diluted earnings per share totaled $1.35 for the three months ended December 31, 2022, a 4% increase compared to $1.30 for the three months ended December 31, 2021, adjusted for the effect of the two-for-one stock split that occurred in June 2022, and decreased 26% from $1.83 for the three months ended September 30, 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 December 31, 2022 decreased 5% to $46.5 million from $49.0 million for the three months ended December 31, 2021, and decreased 24% from $61.3 million for the three months ended September 30, 2022
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP liquidity measure, for the three months ended December 31, 2022 decreased 1% to $48.7 million from $49.1 million for the three months ended December 31, 2021, and decreased 22% from $62.2 million for the three months ended September 30, 2022

 

 

6


 

 

 

 

Three Months Ended December 31,

 

 

2022

2021

 

 

(in thousands, except Earnings per Share and Weighted Average Shares Outstanding)

Selected Key Financial Statement Metrics:

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,949,705

 

 

$

1,946,364

 

 

Gross profit

 

$

63,969

 

 

$

65,923

 

 

Depreciation and amortization expense

 

$

(3,260

)

 

$

(8,258

)

 

Net income attributable to the Company

 

$

33,481

 

 

$

31,794

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share (1):

 

 

 

 

 

 

 

 

 

Basic

 

$

1.43

 

 

$

1.40

 

 

Diluted

 

$

1.35

 

 

$

1.30

 

 

Weighted Average Shares Outstanding (1):

 

 

 

 

 

 

 

 

 

Basic

 

 

23,489,000

 

 

 

22,756,800

 

 

Diluted

 

 

24,731,600

 

 

 

24,384,200

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures:

 

 

 

 

 

 

 

 

 

Adjusted net income before provision for income taxes

 

$

46,471

 

 

$

48,959

 

 

EBITDA

 

$

48,659

 

 

$

49,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Q2 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

 

 

December 31, 2022

September 30, 2022

 

 

(in thousands, except Earnings per Share and Weighted Average Shares Outstanding)

Selected Key Financial Statement Metrics:

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,949,705

 

 

$

1,900,351

 

 

Gross profit

 

$

63,969

 

 

$

76,592

 

 

Depreciation and amortization expense

 

$

(3,260

)

 

$

(3,184

)

 

Net income attributable to the Company

 

$

33,481

 

 

$

45,125

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share:

 

 

 

 

 

 

 

 

 

Basic

 

$

1.43

 

 

$

1.93

 

 

Diluted

 

$

1.35

 

 

$

1.83

 

 

Weighted Average Shares Outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

23,489,000

 

 

 

23,396,400

 

 

Diluted

 

 

24,731,600

 

 

 

24,685,200

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures:

 

 

 

 

 

 

 

 

 

Adjusted net income before provision for income taxes

 

$

46,471

 

 

$

61,274

 

 

EBITDA

 

$

48,659

 

 

$

62,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7


 

 

Fiscal Six Months 2023 Financial Highlights

Revenues for the six months ended December 31, 2022 decreased 3% to $3.850 billion from $3.960 billion for the six months ended December 31, 2021
Gross profit for the six months ended December 31, 2022 increased 15% to $140.6 million from $121.9 million for the six months ended December 31, 2021
Gross profit margin for the six months ended December 31, 2022 increased to 3.65% of revenue, from 3.08% of revenue for the six months ended December 31, 2021
Net income attributable to the Company for the six months ended December 31, 2022 increased 36% to $78.6 million from $57.8 million for the six months ended December 31, 2021
Diluted earnings per share totaled $3.18 for the six months ended December 31, 2022, a 33% increase compared to $2.39 for the six months ended December 31, 2021, adjusted for the effect of the two-for-one stock split that occurred in June 2022
Adjusted net income for the six months ended December 31, 2022 increased 20% to $107.7 million from $90.1 million for the six months ended December 31, 2021
EBITDA for the six months ended December 31, 2022 increased 23% to $110.9 million from $90.1 million for the six months ended December 31, 2021

 

 

Six Months Ended December 31,

 

 

2022

2021

 

 

(in thousands, except Earnings per Share and Weighted Average Shares Outstanding)

Selected Key Financial Statement Metrics:

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,850,056

 

 

$

3,960,335

 

 

Gross profit

 

$

140,561

 

 

$

121,932

 

 

Depreciation and amortization expense

 

$

(6,444

)

 

$

(16,529

)

 

Net income attributable to the Company

 

$

78,606

 

 

$

57,818

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share (1):

 

 

 

 

 

 

 

 

 

Basic

 

$

3.35

 

 

$

2.55

 

 

Diluted

 

$

3.18

 

 

$

2.39

 

 

Weighted Average Shares Outstanding (1):

 

 

 

 

 

 

 

 

 

Basic

 

 

23,442,700

 

 

 

22,641,000

 

 

Diluted

 

 

24,708,400

 

 

 

24,201,400

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures:

 

 

 

 

 

 

 

 

 

Adjusted net income before provision for income taxes

 

$

107,745

 

 

$

90,067

 

 

EBITDA

 

$

110,885

 

 

$

90,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Q2 FY 2022 is retroactively adjusted for the effect of the June 2022 two-for-one stock split in the form of a stock dividend.

 

 

 

 

 

 

 

 

 

 

 

 

 

8


 

 

Fiscal Second Quarter 2023 Financial Summary

 

Revenues increased 0.2% to $1.950 billion from $1.946 billion in the same year-ago quarter due to an increase in silver ounces sold, partially offset by a decrease in gold ounces sold and lower average selling prices of gold and silver.

 

The Direct-to-Consumer segment contributed 23% and 28% of the consolidated revenue in the fiscal second quarters of 2023 and 2022, respectively. JMB’s revenue represented 21% of the consolidated revenues for the fiscal second quarter of 2023 compared with 25% for the prior year fiscal second quarter.

 

Gross profit decreased 3% to $64.0 million (3.28% of revenue) from $65.9 million (3.39% of revenue) in the same year-ago quarter. The decrease in gross profit was due to lower gross profits earned from the Wholesale Sales & Ancillary Services and Direct-to-Consumer segments. The Direct-to-Consumer segment contributed 57% and 56% of the consolidated gross profit in the fiscal second quarters of 2023 and 2022, respectively. Gross profit contributed by JMB represented 51% of the consolidated gross profit in the fiscal second quarter of 2023 and 45% of the consolidated gross profit for the prior year fiscal second quarter.

 

Selling, general and administrative expenses increased 11% to $20.8 million from $18.7 million in the same year-ago quarter. The change was primarily due to an increase in compensation expense (including performance-based accruals) of $1.5 million, higher advertising costs of $1.2 million, an increase in insurance costs of $0.8 million, an increase in computer-related expenses of $0.3 million, partially offset by lower consulting and professional fees of $1.7 million.

 

Depreciation and amortization expense decreased 61% to $3.3 million from $8.3 million in the same year-ago quarter. The change was primarily due to a $5.0 million decrease in JMB’s intangible asset amortization expense.

 

Interest income decreased 5% to $5.0 million from $5.3 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, offset by higher other finance product income.

 

Interest expense increased 34% to $7.2 million from $5.4 million in the same year-ago quarter. The increase in interest expense was primarily driven by $1.2 million associated with the Company’s Trading Credit Facility and the AMCF Notes (including amortization of debt issuance costs), $0.7 million related to product financing arrangements, $0.2 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 283% to $4.7 million from $1.2 million in the same year-ago quarter. The net increase was primarily due to our additional 40% ownership interest in Silver Gold Bull, Inc. acquired in June 2022.

 

Net income attributable to the Company totaled $33.5 million or $1.35 per diluted share, compared to net income of $31.8 million or $1.30 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 before provision for income taxes for the three months ended December 31, 2022 totaled $46.5 million, a decrease of $2.5 million or 5% compared to $49.0 million in the same year-ago quarter. The decrease is principally due to a lower adjustment for amortization of acquired intangibles of $5.1 million, partly offset by $2.5 million of higher net income before provision for income taxes.

 

EBITDA for the three months ended December 31, 2022 totaled $48.7 million, a decrease of $0.4 million or 1% compared to $49.1 million in the same year-ago quarter. The decrease was principally due to lower amortization of acquired intangibles of $5.1 million, partially offset by higher net income of $1.7 million, higher interest expense of $1.8 million, and higher income tax expense of $0.8 million.

 

 

 

9


 

 

Fiscal Six Months 2023 Financial Summary

 

Revenues decreased 3% to $3.850 billion from $3.960 billion in the same year-ago period 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 27% of the consolidated revenue for the six months ended December 31, 2022 and 2021, respectively. JMB’s revenue represented 21% of the consolidated revenues for the six months ended December 31, 2022 compared with 24% for the for the six months ended December 31, 2021.

 

Gross profit increased 15% to $140.6 million (3.65% of revenue) from $121.9 million (3.08% of revenue) in the same year-ago period. 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 56% and 55% of the consolidated gross profit in the six months ended December 31, 2022 and 2021, respectively. Gross profit contributed by JMB represented 49% and 45% of the consolidated gross profit for the six months ended December 31, 2022 and 2021, respectively.

 

Selling, general and administrative expenses increased 9% to $38.6 million from $35.4 million in the same year-ago period. The change was primarily due to an increase in compensation expense (including performance-based accruals) of $2.5 million, higher advertising costs of $1.9 million, an increase in computer-related expenses of $0.4 million, an increase in insurance costs of $0.2 million, partially offset by lower consulting and professional fees of $2.3 million.

 

Depreciation and amortization expense decreased 61% to $6.4 million from $16.5 million in the same year-ago period. The change was primarily due to a $10.1 million decrease in JMB’s intangible asset amortization expense.

 

Interest income decreased 7% to $10.1 million from $10.8 million in the same year-ago period. 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 23% to $13.4 million from $10.9 million in the same year-ago period. The increase in interest expense was primarily driven by $1.8 million associated with our Trading Credit Facility and the AMCF Notes (including amortization of debt issuance costs), $0.8 million related to product financing arrangements, $0.3 million in interest associated with liabilities on borrowed metals, offset by a decrease of $0.4 million of loan servicing fees.

 

Earnings from equity method investments increased 171% to $7.3 million from $2.7 million in the same year-ago period. The net increase was primarily due to our additional 40% ownership interest in Silver Gold Bull, Inc. acquired in June 2022.

 

Net income attributable to the Company totaled $78.6 million or $3.18 per diluted share, compared to net income of $57.8 million or $2.39 per diluted share in the same year-ago period, adjusted for the effect of the two-for-one stock split that occurred in June 2022.

 

Adjusted net income before provision for income taxes for the six months ended December 31, 2022 totaled $107.7 million, an increase of $17.7 million or 20% compared to $90.1 million in the same year-ago period. The increase is principally due to $27.7 million of higher net income before provision for income taxes, partially offset by a lower adjustment for amortization of acquired intangibles of $10.3 million.

 

EBITDA for the six months ended December 31, 2022 totaled $110.9 million, an increase of $20.8 million or 23% compared to $90.1 million in the same year-ago period. The increase was principally due to higher net income of $20.8 million, higher income tax expense of $6.9 million, and higher interest expense of $2.5 million, partially offset by lower amortization of acquired intangibles of $10.3 million.

 

10


 

 

 

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 Company paid a $0.20 quarterly cash dividend on January 27, 2023 to stockholders of record as of January 16, 2023. It is expected that the next quarterly dividend will be paid in April 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 (February 6, 2023) 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/2867/47391

U.S. dial-in number: 1-888-506-0062

International number: 1-973-528-0011

Access Code: 614308

 

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 February 20, 2023.

 

Toll-free replay number: 1-877-481-4010

International replay number: 1-919-882-2331

Replay Passcode: 47391

 

 

 

11


 

 

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 three 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.

 

 

12


 

 

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 regarding the dividend declaration, 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 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; the failure to satisfy the conditions to the closing of the investment in Atkinsons Bullion & Coins; 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 performance or future payment of dividends 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

 

13


 

 

“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 December 31, 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

 

 

14


 

 

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except for share data)

 

 

December 31,

2022

 

 

 

June 30,

2022

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash

 

$

72,499

 

 

 

$

37,783

 

Receivables, net

 

 

109,588

 

 

 

 

97,040

 

Derivative assets

 

 

41,788

 

 

 

 

91,743

 

Secured loans receivable

 

 

102,470

 

 

 

 

126,217

 

Precious metals held under financing arrangements

 

 

57,287

 

 

 

 

79,766

 

Inventories:

 

 

 

 

 

 

 

 

 

Inventories

 

 

575,292

 

 

 

 

458,347

 

Restricted inventories

 

 

347,260

 

 

 

 

282,671

 

 

 

 

922,552

 

 

 

 

741,018

 

Income tax receivable

 

 

2,525

 

 

 

 

 

Prepaid expenses and other assets

 

 

6,721

 

 

 

 

7,558

 

Total current assets

 

 

1,315,430

 

 

 

 

1,181,125

 

Operating lease right of use assets

 

 

5,697

 

 

 

 

6,482

 

Property, plant, and equipment, net

 

 

11,598

 

 

 

 

9,845

 

Goodwill

 

 

100,943

 

 

 

 

100,943

 

Intangibles, net

 

 

67,000

 

 

 

 

67,965

 

Long-term investments

 

 

76,251

 

 

 

 

70,828

 

Other long-term assets

 

 

5,459

 

 

 

 

5,471

 

Total assets

 

$

1,582,378

 

 

 

$

1,442,659

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Lines of credit

 

$

247,000

 

 

 

$

215,000

 

Liabilities on borrowed metals

 

 

31,109

 

 

 

 

59,417

 

Product financing arrangements

 

 

347,260

 

 

 

 

282,671

 

Accounts payable and other payables

 

 

9,321

 

 

 

 

6,127

 

Deferred revenue and other advances

 

 

174,204

 

 

 

 

175,545

 

Derivative liabilities

 

 

102,934

 

 

 

 

75,780

 

Accrued liabilities

 

 

14,036

 

 

 

 

21,813

 

Income tax payable

 

 

 

 

 

 

382

 

Notes payable

 

 

94,528

 

 

 

 

 

Total current liabilities

 

 

1,020,392

 

 

 

 

836,735

 

Notes payable

 

 

1,752

 

 

 

 

94,073

 

Deferred tax liabilities

 

 

15,501

 

 

 

 

15,408

 

Other liabilities

 

 

5,153

 

 

 

 

5,972

 

Total liabilities

 

 

1,042,798

 

 

 

 

952,188

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued

   and outstanding: none as of December 31, 2022 and June 30, 2022

 

 

 

 

 

 

 

Common stock, par value $0.01; 40,000,000 shares authorized; 23,529,971

   and 23,379,888 shares issued and outstanding as of December 31, 2022

   and June 30, 2022, respectively

 

 

236

 

 

 

 

234

 

Additional paid-in capital

 

 

167,009

 

 

 

 

166,526

 

Accumulated other comprehensive loss

 

 

(1,051

)

 

 

 

 

Retained earnings

 

 

372,297

 

 

 

 

321,849

 

Total A-Mark Precious Metals, Inc. stockholders’ equity

 

 

538,491

 

 

 

 

488,609

 

Noncontrolling interest

 

 

1,089

 

 

 

 

1,862

 

Total stockholders’ equity

 

 

539,580

 

 

 

 

490,471

 

Total liabilities, noncontrolling interest and stockholders’ equity

 

$

1,582,378

 

 

 

$

1,442,659

 

 

 

 

 

15


 

 

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except for share and per share data)

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

December 31,

2022

 

 

 

December 31,

2021

 

 

 

December 31,

2022

 

 

 

December 31,

2021

 

Revenues

 

$

1,949,705

 

 

 

$

1,946,364

 

 

 

$

3,850,056

 

 

 

$

3,960,335

 

Cost of sales

 

 

1,885,736

 

 

 

 

1,880,441

 

 

 

 

3,709,495

 

 

 

 

3,838,403

 

Gross profit

 

 

63,969

 

 

 

 

65,923

 

 

 

 

140,561

 

 

 

 

121,932

 

Selling, general, and administrative expenses

 

 

(20,813

)

 

 

 

(18,713

)

 

 

 

(38,597

)

 

 

 

(35,390

)

Depreciation and amortization expense

 

 

(3,260

)

 

 

 

(8,258

)

 

 

 

(6,444

)

 

 

 

(16,529

)

Interest income

 

 

4,984

 

 

 

 

5,251

 

 

 

 

10,080

 

 

 

 

10,782

 

Interest expense

 

 

(7,236

)

 

 

 

(5,395

)

 

 

 

(13,366

)

 

 

 

(10,868

)

Earnings from equity method investments

 

 

4,669

 

 

 

 

1,220

 

 

 

 

7,346

 

 

 

 

2,709

 

Other income, net

 

 

833

 

 

 

 

433

 

 

 

 

1,360

 

 

 

 

842

 

Unrealized gains on foreign exchange

 

 

1

 

 

 

 

231

 

 

 

 

215

 

 

 

 

7

 

Net income before provision for income taxes

 

 

43,147

 

 

 

 

40,692

 

 

 

 

101,155

 

 

 

 

73,485

 

Income tax expense

 

 

(9,550

)

 

 

 

(8,753

)

 

 

 

(22,321

)

 

 

 

(15,422

)

Net income

 

 

33,597

 

 

 

 

31,939

 

 

 

 

78,834

 

 

 

 

58,063

 

Net income attributable to noncontrolling interest

 

 

116

 

 

 

 

145

 

 

 

 

228

 

 

 

 

245

 

Net income attributable to the Company

 

$

33,481

 

 

 

$

31,794

 

 

 

$

78,606

 

 

 

$

57,818

 

Basic and diluted net income per share attributable

   to A-Mark Precious Metals, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.43

 

 

 

$

1.40

 

 

 

$

3.35

 

 

 

$

2.55

 

Diluted

 

$

1.35

 

 

 

$

1.30

 

 

 

$

3.18

 

 

 

$

2.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

23,489,000

 

 

 

 

22,756,800

 

 

 

 

23,442,700

 

 

 

 

22,641,000

 

Diluted

 

 

24,731,600

 

 

 

 

24,384,200

 

 

 

 

24,708,400

 

 

 

 

24,201,400

 

 

 

 

 

 

16


 

 

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

 

Six Months Ended December 31,

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

78,834

 

 

$

58,063

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,444

 

 

 

16,529

 

Amortization of loan cost

 

 

1,140

 

 

 

1,559

 

Deferred income taxes

 

 

415

 

 

 

(3,183

)

Interest added to principal of secured loans

 

 

(6

)

 

 

(9

)

Share-based compensation

 

 

1,069

 

 

 

1,055

 

Write-down of digital assets

 

 

12

 

 

 

 

Earnings from equity method investments

 

 

(7,346

)

 

 

(2,709

)

Dividends received from equity method investees

 

 

551

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Receivables

 

 

(12,548

)

 

 

4,006

 

Secured loans receivable

 

 

1,011

 

 

 

174

 

Secured loans made to affiliates

 

 

 

 

 

3,042

 

Derivative assets

 

 

49,955

 

 

 

19,808

 

Income tax receivable

 

 

(2,525

)

 

 

 

Precious metals held under financing arrangements

 

 

22,479

 

 

 

66,122

 

Inventories

 

 

(181,534

)

 

 

(100,325

)

Prepaid expenses and other assets

 

 

371

 

 

 

(788

)

Accounts payable and other payables

 

 

3,194

 

 

 

1,512

 

Deferred revenue and other advances

 

 

(1,341

)

 

 

(36,051

)

Derivative liabilities

 

 

27,154

 

 

 

40,212

 

Liabilities on borrowed metals

 

 

(28,308

)

 

 

(24,432

)

Accrued liabilities

 

 

(7,157

)

 

 

(2,381

)

Income tax payable

 

 

(382

)

 

 

(3,673

)

Net cash (used in) provided by operating activities

 

 

(48,518

)

 

 

38,531

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures for property, plant, and equipment

 

 

(2,662

)

 

 

(1,627

)

Purchase of long-term investments

 

 

(500

)

 

 

(6,750

)

Purchase of intangible assets

 

 

(4,500

)

 

 

 

Secured loans receivable, net

 

 

22,742

 

 

 

(16,542

)

Net cash provided by (used in) investing activities

 

 

15,080

 

 

 

(24,919

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Product financing arrangements, net

 

 

64,589

 

 

 

(45,249

)

Dividends paid

 

 

(28,088

)

 

 

(22,639

)

Distributions paid to noncontrolling interest

 

 

(1,001

)

 

 

 

Borrowings and repayments under lines of credit, net

 

 

32,000

 

 

 

(25,000

)

Repayments on notes payable to related party

 

 

(2,135

)

 

 

 

Proceeds from issuance of related party note

 

 

3,887

 

 

 

 

Debt funding issuance costs

 

 

(219

)

 

 

(4,166

)

Proceeds from the exercise of share-based awards

 

 

725

 

 

 

1,414

 

Payments for tax withholding related to net settlement of share-based awards

 

 

(1,604

)

 

 

(25

)

Net cash provided by (used in) financing activities

 

 

68,154

 

 

 

(95,665

)

Net increase (decrease) in cash

 

 

34,716

 

 

 

(82,053

)

Cash, beginning of period

 

 

37,783

 

 

 

101,405

 

Cash, end of period

 

$

72,499

 

 

$

19,352

 

 

 

 

17


 

 

Overview of Results of Operations for the Three Months Ended December 31, 2022 and 2021

Consolidated Results of Operations

The operating results for the three months ended December 31, 2022 and 2021 are as follows:

in thousands, except per share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

2022

 

 

 

2021

 

 

 

$

 

 

 

%

 

 

 

$

 

 

 

% of

revenue

 

 

 

$

 

 

 

% of

revenue

 

 

 

Increase/

(decrease)

 

 

 

Increase/

(decrease)

 

Revenues

 

$

1,949,705

 

 

 

 

100.000

%

 

 

$

1,946,364

 

 

 

 

100.000

%

 

 

$

3,341

 

 

 

 

0.2

%

Gross profit

 

 

63,969

 

 

 

 

3.281

%

 

 

 

65,923

 

 

 

 

3.387

%

 

 

$

(1,954

)

 

 

 

(3.0

%)

Selling, general, and administrative expenses

 

 

(20,813

)

 

 

 

(1.067

%)

 

 

 

(18,713

)

 

 

 

(0.961

%)

 

 

$

2,100

 

 

 

 

11.2

%

Depreciation and amortization expense

 

 

(3,260

)

 

 

 

(0.167

%)

 

 

 

(8,258

)

 

 

 

(0.424

%)

 

 

$

(4,998

)

 

 

 

(60.5

%)

Interest income

 

 

4,984

 

 

 

 

0.256

%

 

 

 

5,251

 

 

 

 

0.270

%

 

 

$

(267

)

 

 

 

(5.1

%)

Interest expense

 

 

(7,236

)

 

 

 

(0.371

%)

 

 

 

(5,395

)

 

 

 

(0.277

%)

 

 

$

1,841

 

 

 

 

34.1

%

Earnings from equity method investments

 

 

4,669

 

 

 

 

0.239

%

 

 

 

1,220

 

 

 

 

0.063

%

 

 

$

3,449

 

 

 

 

282.7

%

Other income, net

 

 

833

 

 

 

 

0.043

%

 

 

 

433

 

 

 

 

0.022

%

 

 

$

400

 

 

 

 

92.4

%

Unrealized gains on foreign exchange

 

 

1

 

 

 

 

0.000

%

 

 

 

231

 

 

 

 

0.012

%

 

 

$

(230

)

 

 

 

(99.6

%)

Net income before provision for income taxes

 

 

43,147

 

 

 

 

2.213

%

 

 

 

40,692

 

 

 

 

2.091

%

 

 

$

2,455

 

 

 

 

6.0

%

Income tax expense

 

 

(9,550

)

 

 

 

(0.490

%)

 

 

 

(8,753

)

 

 

 

(0.450

%)

 

 

$

797

 

 

 

 

9.1

%

Net income

 

 

33,597

 

 

 

 

1.723

%

 

 

 

31,939

 

 

 

 

1.641

%

 

 

$

1,658

 

 

 

 

5.2

%

Net income attributable to noncontrolling interest

 

 

116

 

 

 

 

0.006

%

 

 

 

145

 

 

 

 

0.007

%

 

 

$

(29

)

 

 

 

(20.0

%)

Net income attributable to the Company

 

$

33,481

 

 

 

 

1.717

%

 

 

$

31,794

 

 

 

 

1.634

%

 

 

$

1,687

 

 

 

 

5.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net income per share attributable to

A-Mark Precious Metals, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.43

 

 

 

 

 

 

 

 

$

1.40

 

 

 

 

 

 

 

 

$

0.03

 

 

 

 

2.1

%

Diluted

 

$

1.35

 

 

 

 

 

 

 

 

$

1.30

 

 

 

 

 

 

 

 

$

0.05

 

 

 

 

3.8

%

 

 

 

 

 

18


 

 

Overview of Results of Operations for the Three Months Ended December 31, 2022 and September 30, 2022

Consolidated Results of Operations

 

The operating results for the three months ended December 31, 2022 and September 30, 2022 are as follows:

 

in thousands, except per share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

September 30, 2022

 

 

$

 

 

%

 

 

 

$

 

 

% of

revenue

 

 

$

 

 

% of

revenue

 

 

Increase/

(decrease)

 

 

Increase/

(decrease)

 

Revenues

 

$

1,949,705

 

 

 

100.000

%

 

$

1,900,351

 

 

 

100.000

%

 

$

49,354

 

 

 

2.6

%

Gross profit

 

 

63,969

 

 

 

3.281

%

 

 

76,592

 

 

 

4.030

%

 

$

(12,623

)

 

 

(16.5

%)

Selling, general, and administrative expenses

 

 

(20,813

)

 

 

(1.067

)%

 

 

(17,784

)

 

 

(0.936

)%

 

$

3,029

 

 

 

17.0

%

Depreciation and amortization expense

 

 

(3,260

)

 

 

(0.167

)%

 

 

(3,184

)

 

 

(0.168

)%

 

$

76

 

 

 

2.4

%

Interest income

 

 

4,984

 

 

 

0.256

%

 

 

5,096

 

 

 

0.268

%

 

$

(112

)

 

 

(2.2

%)

Interest expense

 

 

(7,236

)

 

 

(0.371

)%

 

 

(6,130

)

 

 

(0.323

)%

 

$

1,106

 

 

 

18.0

%

Earnings from equity method investments

 

 

4,669

 

 

 

0.239

%

 

 

2,677

 

 

 

0.141

%

 

$

1,992

 

 

 

74.4

%

Other income, net

 

 

833

 

 

 

0.043

%

 

 

527

 

 

 

0.028

%

 

$

306

 

 

 

58.1

%

Unrealized gains on foreign exchange

 

 

1

 

 

 

0.000

%

 

 

214

 

 

 

0.011

%

 

$

(213

)

 

 

(99.5

%)

Net income before provision for income taxes

 

 

43,147

 

 

 

2.213

%

 

 

58,008

 

 

 

3.052

%

 

$

(14,861

)

 

 

(25.6

%)

Income tax expense

 

 

(9,550

)

 

 

(0.490

)%

 

 

(12,771

)

 

 

(0.672

)%

 

$

(3,221

)

 

 

(25.2

%)

Net income

 

 

33,597

 

 

 

1.723

%

 

 

45,237

 

 

 

2.380

%

 

$

(11,640

)

 

 

(25.7

%)

Net income attributable to non-controlling interests

 

 

116

 

 

 

0.006

%

 

 

112

 

 

 

0.006

%

 

$

4

 

 

 

3.6

%

Net income attributable to the Company

 

$

33,481

 

 

 

1.717

%

 

$

45,125

 

 

 

2.375

%

 

$

(11,644

)

 

 

(25.8

%)

Basic and diluted net income per share attributable to

   A-Mark Precious Metals, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.43

 

 

 

 

 

 

$

1.93

 

 

 

 

 

 

$

(0.50

)

 

 

(25.9

%)

Diluted

 

$

1.35

 

 

 

 

 

 

$

1.83

 

 

 

 

 

 

$

(0.48

)

 

 

(26.2

%)

 

 

 

 

 

 

19


 

 

Overview of Results of Operations for the Six Months Ended December 31, 2022 and 2021

Consolidated Results of Operations

The operating results for the six months ended December 31, 2022 and 2021 are as follows:

in thousands, except per share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31,

 

2022

 

 

 

2021

 

 

 

$

 

 

 

%

 

 

 

$

 

 

 

% of

revenue

 

 

 

$

 

 

 

% of

revenue

 

 

 

Increase/

(decrease)

 

 

 

Increase/

(decrease)

 

Revenues

 

$

3,850,056

 

 

 

 

100.000

%

 

 

$

3,960,335

 

 

 

 

100.000

%

 

 

$

(110,279

)

 

 

 

(2.8

%)

Gross profit

 

 

140,561

 

 

 

 

3.651

%

 

 

 

121,932

 

 

 

 

3.079

%

 

 

$

18,629

 

 

 

 

15.3

%

Selling, general, and administrative expenses

 

 

(38,597

)

 

 

 

(1.003

%)

 

 

 

(35,390

)

 

 

 

(0.894

%)

 

 

$

3,207

 

 

 

 

9.1

%

Depreciation and amortization expense

 

 

(6,444

)

 

 

 

(0.167

%)

 

 

 

(16,529

)

 

 

 

(0.417

%)

 

 

$

(10,085

)

 

 

 

(61.0

%)

Interest income

 

 

10,080

 

 

 

 

0.262

%

 

 

 

10,782

 

 

 

 

0.272

%

 

 

$

(702

)

 

 

 

(6.5

%)

Interest expense

 

 

(13,366

)

 

 

 

(0.347

%)

 

 

 

(10,868

)

 

 

 

(0.274

%)

 

 

$

2,498

 

 

 

 

23.0

%

Earnings from equity method investments

 

 

7,346

 

 

 

 

0.191

%

 

 

 

2,709

 

 

 

 

0.068

%

 

 

$

4,637

 

 

 

 

171.2

%

Other income, net

 

 

1,360

 

 

 

 

0.035

%

 

 

 

842

 

 

 

 

0.021

%

 

 

$

518

 

 

 

 

61.5

%

Unrealized gains on foreign exchange

 

 

215

 

 

 

 

0.006

%

 

 

 

7

 

 

 

 

0.000

%

 

 

$

208

 

 

 

 

2,971.4

%

Net income before provision for income taxes

 

 

101,155

 

 

 

 

2.627

%

 

 

 

73,485

 

 

 

 

1.856

%

 

 

$

27,670

 

 

 

 

37.7

%

Income tax expense

 

 

(22,321

)

 

 

 

(0.580

%)

 

 

 

(15,422

)

 

 

 

(0.389

%)

 

 

$

6,899

 

 

 

 

44.7

%

Net income

 

 

78,834

 

 

 

 

2.048

%

 

 

 

58,063

 

 

 

 

1.466

%

 

 

$

20,771

 

 

 

 

35.8

%

Net income attributable to noncontrolling interest

 

 

228

 

 

 

 

0.006

%

 

 

 

245

 

 

 

 

0.006

%

 

 

$

(17

)

 

 

 

(6.9

%)

Net income attributable to the Company

 

$

78,606

 

 

 

 

2.042

%

 

 

$

57,818

 

 

 

 

1.460

%

 

 

$

20,788

 

 

 

 

36.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net income per share attributable to

 A-Mark Precious Metals, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

3.35

 

 

 

 

 

 

 

 

$

2.55

 

 

 

 

 

 

 

 

$

0.80

 

 

 

 

31.4

%

Diluted

 

$

3.18

 

 

 

 

 

 

 

 

$

2.39

 

 

 

 

 

 

 

 

$

0.79

 

 

 

 

33.1

%

 

 

 

20


 

 

Reconciliation of U.S. GAAP to Non-GAAP Financial and Liquidity Measures for the Three Months Ended December 31, 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 December 31, 2022 and 2021 follows:

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

2022

 

 

 

2021

 

 

 

$

 

 

 

%

 

 

 

$

 

 

 

$

 

 

 

Increase/

(decrease)

 

 

 

Increase/

(decrease)

 

Net income before provision for income taxes

 

$

43,147

 

 

 

$

40,692

 

 

 

$

2,455

 

 

 

 

6.0

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs

 

 

64

 

 

 

 

9

 

 

 

$

55

 

 

 

 

611.1

%

Amortization of acquired intangibles

 

 

2,763

 

 

 

 

7,872

 

 

 

$

(5,109

)

 

 

 

(64.9

%)

Depreciation expense

 

 

497

 

 

 

 

386

 

 

 

$

111

 

 

 

 

28.8

%

Adjusted net income before provision for income taxes (non-GAAP)

 

$

46,471

 

 

 

$

48,959

 

 

 

$

(2,488

)

 

 

 

(5.1

%)

 

 

A reconciliation of net income to EBITDA, and EBITDA to operating cash flows for the three months ended December 31, 2022 and 2021 follows:

 

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

2022

 

 

 

2021

 

 

 

$

 

 

 

%

 

 

 

$

 

 

 

$

 

 

 

Increase/

(decrease)

 

 

 

Increase/

(decrease)

 

Net income

 

$

33,597

 

 

 

$

31,939

 

 

 

$

1,658

 

 

 

 

5.2

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(4,984

)

 

 

 

(5,251

)

 

 

$

(267

)

 

 

 

(5.1

%)

Interest expense

 

 

7,236

 

 

 

 

5,395

 

 

 

$

1,841

 

 

 

 

34.1

%

Amortization of acquired intangibles

 

 

2,763

 

 

 

 

7,872

 

 

 

$

(5,109

)

 

 

 

(64.9

%)

Depreciation expense

 

 

497

 

 

 

 

386

 

 

 

$

111

 

 

 

 

28.8

%

Income tax expense

 

 

9,550

 

 

 

 

8,753

 

 

 

$

797

 

 

 

 

9.1

%

 

 

 

15,062

 

 

 

 

17,155

 

 

 

$

(2,093

)

 

 

 

(12.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest, taxes, depreciation, and amortization (non-GAAP)

 

$

48,659

 

 

 

$

49,094

 

 

 

$

(435

)

 

 

 

(0.9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of EBITDA to Operating Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest, taxes, depreciation, and amortization (non-GAAP)

 

$

48,659

 

 

 

$

49,094

 

 

 

$

(435

)

 

 

 

(0.9

%)

Amortization of loan cost

 

 

586

 

 

 

 

990

 

 

 

$

(404

)

 

 

 

(40.8

%)

Deferred income taxes

 

 

451

 

 

 

 

(1,760

)

 

 

$

2,211

 

 

 

 

125.6

%

Interest added to principal of secured loans

 

 

(2

)

 

 

 

(4

)

 

 

$

(2

)

 

 

 

(50.0

%)

Share-based compensation

 

 

534

 

 

 

 

582

 

 

 

$

(48

)

 

 

 

(8.2

%)

Write-down of digital assets

 

 

12

 

 

 

 

 

 

 

$

12

 

 

 

 

%

Earnings from equity method investments

 

 

(4,669

)

 

 

 

(1,220

)

 

 

$

3,449

 

 

 

 

282.7

%

Income tax expense

 

 

(9,550

)

 

 

 

(8,753

)

 

 

$

797

 

 

 

 

9.1

%

Interest income

 

 

4,984

 

 

 

 

5,251

 

 

 

$

(267

)

 

 

 

(5.1

%)

Interest expense

 

 

(7,236

)

 

 

 

(5,395

)

 

 

$

1,841

 

 

 

 

34.1

%

Changes in operating working capital

 

 

(361,909

)

 

 

 

69,479

 

 

 

$

431,388

 

 

 

 

620.9

%

Net cash (used in) provided by operating activities

 

$

(328,140

)

 

 

$

108,264

 

 

 

$

436,404

 

 

 

 

403.1

%

 

 

 

21


 

 

Reconciliation of U.S. GAAP to Non-GAAP Financial and Liquidity Measures for the Three Months Ended December 31, 2022 and Three Months Ended September 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 December 31, 2022 and September 30, 2022 follows:

 

 

in thousands, except for share and per share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

September 30, 2022

 

 

 

$

 

 

 

%

 

 

 

$

 

 

 

$

 

 

 

Increase/

(decrease)

 

 

 

Increase/

(decrease)

 

Net income before provision for income taxes

 

$

43,147

 

 

 

$

58,008

 

 

 

$

(14,861

)

 

 

 

(25.6

%)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs

 

 

64

 

 

 

 

82

 

 

 

$

(18

)

 

 

 

(22.0

%)

Amortization of acquired intangibles

 

 

2,763

 

 

 

 

2,711

 

 

 

$

52

 

 

 

 

1.9

%

Depreciation expense

 

 

497

 

 

 

 

473

 

 

 

$

24

 

 

 

 

5.1

%

Adjusted net income before provision for income taxes (non-GAAP)

 

$

46,471

 

 

 

$

61,274

 

 

 

$

(14,803

)

 

 

 

(24.2

%)

 

 

A reconciliation of net income to EBITDA, and EBITDA to operating cash flows for the three months ended December 31, 2022 and September 30, 2022 follows:

 

in thousands

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

September 30, 2022

 

 

 

$

 

 

 

%

 

 

 

$

 

 

 

$

 

 

 

Increase/

(decrease)

 

 

 

Increase/

(decrease)

 

Net income

 

$

33,597

 

 

 

$

45,237

 

 

 

$

(11,640

)

 

 

 

(25.7

%)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(4,984

)

 

 

 

(5,096

)

 

 

$

(112

)

 

 

 

(2.2

%)

Interest expense

 

 

7,236

 

 

 

 

6,130

 

 

 

$

1,106

 

 

 

 

18.0

%

Amortization of acquired intangibles

 

 

2,763

 

 

 

 

2,711

 

 

 

$

52

 

 

 

 

1.9

%

Depreciation expense

 

 

497

 

 

 

 

473

 

 

 

$

24

 

 

 

 

5.1

%

Income tax expense

 

 

9,550

 

 

 

 

12,771

 

 

 

$

(3,221

)

 

 

 

(25.2

%)

 

 

 

15,062

 

 

 

 

16,989

 

 

 

$

(1,927

)

 

 

 

(11.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest, taxes, depreciation, and amortization (non-GAAP)

 

$

48,659

 

 

 

$

62,226

 

 

 

$

(13,567

)

 

 

 

(21.8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of EBITDA to Operating Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest, taxes, depreciation, and amortization (non-GAAP)

 

$

48,659

 

 

 

$

62,226

 

 

 

$

(13,567

)

 

 

 

(21.8

%)

Amortization of loan cost

 

 

586

 

 

 

 

554

 

 

 

$

32

 

 

 

 

5.8

%

Deferred income taxes

 

 

451

 

 

 

 

(36

)

 

 

$

487

 

 

 

 

1,352.8

%

Interest added to principal of secured loans

 

 

(2

)

 

 

 

(4

)

 

 

$

(2

)

 

 

 

(50.0

%)

Share-based compensation

 

 

534

 

 

 

 

535

 

 

 

$

(1

)

 

 

 

(0.2

%)

Write-down of digital assets

 

 

12

 

 

 

 

 

 

 

$

12

 

 

 

 

%

Earnings from equity method investments

 

 

(4,669

)

 

 

 

(2,677

)

 

 

$

1,992

 

 

 

 

74.4

%

Dividends received from equity method investees

 

 

 

 

 

 

551

 

 

 

$

(551

)

 

 

 

(100.0

%)

Income tax expense

 

 

(9,550

)

 

 

 

(12,771

)

 

 

$

(3,221

)

 

 

 

(25.2

%)

Interest income

 

 

4,984

 

 

 

 

5,096

 

 

 

$

(112

)

 

 

 

(2.2

%)

Interest expense

 

 

(7,236

)

 

 

 

(6,130

)

 

 

$

1,106

 

 

 

 

18.0

%

Changes in operating working capital

 

 

(361,909

)

 

 

 

232,278

 

 

 

$

594,187

 

 

 

 

255.8

%

Net cash (used in) provided by operating activities

 

$

(328,140

)

 

 

$

279,622

 

 

 

$

607,762

 

 

 

 

217.4

%

 

 

 

22


 

 

Reconciliation of U.S. GAAP to Non-GAAP Financial and Liquidity Measures for the Six Months Ended December 31, 2022 and 2021

 

A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the six months ended December 31, 2022 and 2021 follows:

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31,

 

2022

 

 

 

2021

 

 

 

$

 

 

 

%

 

 

 

$

 

 

 

$

 

 

 

Increase/

(decrease)

 

 

 

Increase/

(decrease)

 

Net income before provision for income taxes

 

$

101,155

 

 

 

$

73,485

 

 

 

$

27,670

 

 

 

 

37.7

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs

 

 

146

 

 

 

 

53

 

 

 

$

93

 

 

 

 

175.5

%

Amortization of acquired intangibles

 

 

5,474

 

 

 

 

15,744

 

 

 

$

(10,270

)

 

 

 

(65.2

%)

Depreciation expense

 

 

970

 

 

 

 

785

 

 

 

$

185

 

 

 

 

23.6

%

Adjusted net income before provision for income taxes (non-GAAP)

 

$

107,745

 

 

 

$

90,067

 

 

 

$

17,678

 

 

 

 

19.6

%

 

A reconciliation of net income to EBITDA, and EBITDA to operating cash flows for the six months ended December 31, 2022 and 2021 follows:

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31,

 

2022

 

 

 

2021

 

 

 

$

 

 

 

%

 

 

 

$

 

 

 

$

 

 

 

Increase/

(decrease)

 

 

 

Increase/

(decrease)

 

Net income

 

$

78,834

 

 

 

$

58,063

 

 

 

$

20,771

 

 

 

 

35.8

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(10,080

)

 

 

 

(10,782

)

 

 

$

(702

)

 

 

 

(6.5

%)

Interest expense

 

 

13,366

 

 

 

 

10,868

 

 

 

$

2,498

 

 

 

 

23.0

%

Amortization of acquired intangibles

 

 

5,474

 

 

 

 

15,744

 

 

 

$

(10,270

)

 

 

 

(65.2

%)

Depreciation expense

 

 

970

 

 

 

 

785

 

 

 

$

185

 

 

 

 

23.6

%

Income tax expense

 

 

22,321

 

 

 

 

15,422

 

 

 

$

6,899

 

 

 

 

44.7

%

 

 

 

32,051

 

 

 

 

32,037

 

 

 

$

14

 

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest, taxes, depreciation, and amortization (EBITDA)

 

$

110,885

 

 

 

$

90,100

 

 

 

$

20,785

 

 

 

 

23.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of EBITDA to Operating Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest, taxes, depreciation, and amortization (EBITDA)

 

$

110,885

 

 

 

$

90,100

 

 

 

$

20,785

 

 

 

 

23.1

%

Amortization of loan cost

 

 

1,140

 

 

 

 

1,559

 

 

 

$

(419

)

 

 

 

(26.9

%)

Deferred income taxes

 

 

415

 

 

 

 

(3,183

)

 

 

$

3,598

 

 

 

 

113.0

%

Interest added to principal of secured loans

 

 

(6

)

 

 

 

(9

)

 

 

$

(3

)

 

 

 

(33.3

%)

Share-based compensation

 

 

1,069

 

 

 

 

1,055

 

 

 

$

14

 

 

 

 

1.3

%

Write-down of digital assets

 

 

12

 

 

 

 

 

 

 

$

12

 

 

 

 

%

Earnings from equity method investments

 

 

(7,346

)

 

 

 

(2,709

)

 

 

$

4,637

 

 

 

 

171.2

%

Dividends received from equity method investees

 

 

551

 

 

 

 

 

 

 

$

551

 

 

 

 

%

Income tax expense

 

 

(22,321

)

 

 

 

(15,422

)

 

 

$

6,899

 

 

 

 

44.7

%

Interest income

 

 

10,080

 

 

 

 

10,782

 

 

 

$

(702

)

 

 

 

(6.5

%)

Interest expense

 

 

(13,366

)

 

 

 

(10,868

)

 

 

$

2,498

 

 

 

 

23.0

%

Changes in operating working capital

 

 

(129,631

)

 

 

 

(32,774

)

 

 

$

96,857

 

 

 

 

295.5

%

Net cash (used in) provided by operating activities

 

$

(48,518

)

 

 

$

38,531

 

 

 

$

87,049

 

 

 

 

225.9

%

 

 

23