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Exhibit 99.1

 

A-Mark Precious Metals Reports Fiscal Fourth Quarter and Full Year 2023 Results

 

FY 2023 Diluted Earnings Per Share of $6.34 up from $5.45 in FY 2022

$9.3 Billion of Revenues for Full Year 2023

 

Record FY 2023 Non-GAAP EBITDA of $225 Million

46% Year-over-Year Increase in Direct-to-Consumer New Customers

Company Declares Non-recurring Special Dividend of $1.00 per share

 

El Segundo, CA – August 31, 2023 – A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, reported results for the fiscal fourth quarter and full year ended June 30, 2023.

 

Management Commentary

 

“Fiscal year 2023 marked another year of strong financial and operational performance, underscoring the strength of our industry-leading fully integrated precious metals platform,” said A-Mark CEO Greg Roberts. “Our full year gross profit and net income before taxes grew 13% and 22% year-over-year, respectively, and we also generated a 29% return on equity for the year. Diluted earnings per share increased 16% compared with last fiscal year, and we also delivered record levels of EBITDA of $225 million. New customers in our Direct-to-Consumer segment increased 46%, highlighting the success of our strategic acquisitions.

“Our fourth quarter results contributed to a strong finish to the fiscal year with net income of $41.8 million and diluted earnings per share of $1.71. Our integrated capabilities and access to inventory provided us with a consistent source of supply to meet the elevated demand from the heightened market volatility experienced during the quarter.

“Reflecting on the full year, I am very proud of our many accomplishments and the execution of our growth strategy. During the year we added minority interests in UK-based Atkinsons Bullion & Coins and Texas Precious Metals to our investments portfolio and also closed the BGASC and BullionMax asset acquisitions, further expanding our Direct-to-Consumer customer base. We also bolstered our minting operations by investing in the expansion of our Silver Towne Mint facility, which now consistently produces over one million ounces of silver per week and achieved ISO 9000:2015 Certification during the year, reaffirming the company’s reputation as a leading manufacturer of quality bullion products. Additionally, we repurchased $9.8 million of our common stock creating additional value for our stockholders.

“Looking ahead to fiscal 2024, we continue to evaluate opportunities to further expand our geographic presence and market reach to create stockholder value. We also continue to invest in our minting and logistics operations to further increase capacity and enhance our fully integrated platform. We remain optimistic that our diversified and proven business model will allow us to sustain profitability and realize growth over the long term.”

 


 

 

Fiscal Fourth Quarter 2023 Operational Highlights

Gold ounces sold in the three months ended June 30, 2023 increased 27% to 814,000 ounces from 641,000 ounces for the three months ended June 30, 2022, and increased 24% from 659,000 ounces for the three months ended March 31, 2023
Silver ounces sold in the three months ended June 30, 2023 increased 20% to 45.3 million ounces from 37.6 million ounces for the three months ended June 30, 2022, and increased 23% from 36.9 million ounces for the three months ended March 31, 2023
As of June 30, 2023, the number of secured loans decreased 61% to 882 from 2,271 as of June 30, 2022, and decreased 8% from 963 as of March 31, 2023
Direct-to-Consumer new customers for the three months ended June 30, 2023 increased 85% to 90,400 from 48,800 for the three months ended June 30, 2022, and increased 40% from 64,700 for the three months ended March 31, 2023. For the three-month period ended June 30, 2023, approximately 32% of the new customers were attributable to the acquired customer list of BullionMax in June 2023
Direct-to-Consumer active customers for the three months ended June 30, 2023 increased 1% to 133,800 from 133,100 for the three months ended June 30, 2022, and decreased 9% from 147,400 for the three months ended March 31, 2023
Direct-to-Consumer average order value for the three months ended June 30, 2023 increased $546, or 20% to $3,288 from $2,742 for the three months ended June 30, 2022, and increased $836, or 34% from $2,452 for the three months ended March 31, 2023
JM Bullion’s average order value for the three months ended June 30, 2023 increased $458, or 18% to $2,955 from $2,497 for the three months ended June 30, 2022, and increased $703, or 31% from $2,252 for the three months ended March 31, 2023

 

 

 

2


 

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

 

2022

 

 

Selected Operating Metrics:

 

 

Gold ounces sold (1)

 

814,000

 

 

641,000

 

Silver ounces sold (2)

 

45,273,000

 

 

37,597,000

 

Number of secured loans at period end (3)

 

882

 

 

2,271

 

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

 

90,400

 

 

48,800

 

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

 

133,800

 

 

133,100

 

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

 

2,348,300

 

 

2,013,000

 

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

$

3,288

 

$

2,742

 

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

$

2,955

 

$

2,497

 

CyberMetals number of new customers (9)

 

5,200

 

 

5,200

 

CyberMetals number of active customers (10)

 

1,700

 

 

2,800

 

CyberMetals number of total customers (11)

 

22,400

 

 

5,900

 

CyberMetals customer assets under management (12)

$

6,500,000

 

$

3,700,000

 

 

 

 

 

(1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts.

(2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts.

(3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period.

(4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment.

(5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment.

(6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment.

(7) DTC AOV represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment.

(8) JMB AOV represents the average dollar value of product orders delivered to JMB's customers during the period.

(9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or have made a purchase for the first time during the period on the CyberMetals platform.

(10) CyberMetals number of active customers represents the number of customers that have made a purchase during any month during the period from the CyberMetals platform.

(11) CyberMetals number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past from the CyberMetals platform.

(12) CyberMetals customer assets under management represents the total value of assets managed by the Company on behalf of CyberMetals customers.

 

 

 

 

3


 

 

 

 

Three Months Ended

 

 

 

June 30, 2023

 

 

 

March 31, 2023

 

 

Selected Operating Metrics:

 

 

Gold ounces sold (1)

 

814,000

 

 

659,000

 

Silver ounces sold (2)

 

45,273,000

 

 

36,906,000

 

Number of secured loans at period end (3)

 

882

 

 

963

 

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

 

90,400

 

 

64,700

 

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

 

133,800

 

 

147,400

 

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

 

2,348,300

 

 

2,257,900

 

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

$

3,288

 

$

2,452

 

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

$

2,955

 

$

2,252

 

CyberMetals number of new customers (9)

 

5,200

 

 

4,800

 

CyberMetals number of active customers (10)

 

1,700

 

 

1,500

 

CyberMetals number of total customers (11)

 

22,400

 

 

17,200

 

CyberMetals customer assets under management (12)

$

6,500,000

 

$

6,500,000

 

 

 

 

 

(1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts.

(2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts.

(3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period.

(4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment.

(5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment.

(6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment.

(7) DTC AOV represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment.

(8) JMB AOV represents the average dollar value of product orders delivered to JMB's customers during the period.

(9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or have made a purchase for the first time during the period on the CyberMetals platform.

(10) CyberMetals number of active customers represents the number of customers that have made a purchase during any month during the period from the CyberMetals platform.

(11) CyberMetals number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past from the CyberMetals platform.

(12) CyberMetals customer assets under management represents the total value of assets managed by the Company on behalf of CyberMetals customers.

 

 

 

 

4


 

 

Full Year 2023 Operational Highlights

Gold ounces sold in the fiscal year ended June 30, 2023 remained relatively unchanged at 2,667,000 ounces compared to 2,668,000 in the fiscal year ended June 30, 2022
Silver ounces sold in the fiscal year ended June 30, 2023 increased 18% to 156.2 million ounces from 132.2 million ounces in the fiscal year ended June 30, 2022
Direct-to-Consumer new customers for the fiscal year ended June 30, 2023 increased 46% to 335,300 from 230,400 for the fiscal year ended June 30, 2022. Approximately 31% of the new customers in fiscal year 2023 were attributable to the acquired customer lists of BGASC and BullionMax in October 2022 and June 2023, respectively
Direct-to-Consumer active customers for the fiscal year ended June 30, 2023 decreased 24% to 476,300 from 623,700 for the fiscal year ended June 30, 2022
Direct-to-Consumer average order value for the fiscal year ended June 30, 2023 increased $86, or 3% to $2,606 from $2,520 for the fiscal year ended June 30, 2022
JM Bullion’s average order value for the fiscal year ended June 30, 2023 increased $62, or 3% to $2,390 from $2,328 for the fiscal year ended June 30, 2022

 

 

 

Year Ended June 30,

 

 

 

2023

 

 

 

2022

 

 

Selected Operating Metrics:

 

 

Gold ounces sold (1)

 

2,667,000

 

 

2,668,000

 

Silver ounces sold (2)

 

156,233,000

 

 

132,209,000

 

Number of secured loans at period end (3)

 

882

 

 

2,271

 

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

 

335,300

 

 

230,400

 

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

 

476,300

 

 

623,700

 

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

 

2,348,300

 

 

2,013,000

 

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

$

2,606

 

$

2,520

 

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

$

2,390

 

$

2,328

 

CyberMetals number of new customers (9)

 

16,500

 

 

5,900

 

CyberMetals number of active customers (10)

 

4,800

 

 

3,000

 

CyberMetals number of total customers (11)

 

22,400

 

 

5,900

 

CyberMetals customer assets under management (12)

$

6,500,000

 

$

3,700,000

 

 

 

 

 

(1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts.

(2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts.

(3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period.

(4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment.

(5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment.

(6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment.

(7) DTC AOV represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment.

(8) JMB AOV represents the average dollar value of product orders delivered to JMB's customers during the period.

(9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or have made a purchase for the first time during the period on the CyberMetals platform.

(10) CyberMetals number of active customers represents the number of customers that have made a purchase during any month during the period from the CyberMetals platform.

(11) CyberMetals number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past from the CyberMetals platform.

(12) CyberMetals customer assets under management represents the total value of assets managed by the Company on behalf of CyberMetals customers.

 

 

 

5


 

 

Fiscal Fourth Quarter 2023 Financial Highlights

Revenues for the three months ended June 30, 2023 increased 51% to $3.16 billion from $2.09 billion for the three months ended June 30, 2022 and increased 36% from $2.32 billion for the three months ended March 31, 2023
Gross profit for the three months ended June 30, 2023 increased 16% to $78.6 million from $67.8 million for the three months ended June 30, 2022 and increased 4% from $75.5 million for the three months ended March 31, 2023
Gross profit margin for the three months ended June 30, 2023 decreased to 2.49% of revenue from 3.24% of revenue for the three months ended June 30, 2022, and decreased from 3.26% of revenue in the three months ended March 31, 2023
Net income attributable to the Company for the three months ended June 30, 2023 increased 12% to $41.8 million from $37.3 million for the three months ended June 30, 2022, and increased 16% from $35.9 million for the three months ended March 31, 2023
Diluted earnings per share totaled $1.71 for the three months ended June 30, 2023, a 12% increase compared to $1.52 for the three months ended June 30, 2022, and increased 17% from $1.46 for the three months ended March 31, 2023
Adjusted net income before provision for income taxes, depreciation, amortization, and acquisition costs (“Adjusted net income before provision for income taxes” or “Adjusted net income”), a non-GAAP financial performance measure, for the three months ended June 30, 2023 increased 17% to $59.1 million from $50.6 million for the three months ended June 30, 2022, and increased 20% from $49.2 million for the three months ended March 31, 2023
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP liquidity measure, for the three months ended June 30, 2023 increased 23% to $61.8 million from $50.3 million for the three months ended June 30, 2022, and increased 18% from $52.3 million for the three months ended March 31, 2023

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

 

2022

 

 

 

 

(in thousands, except Earnings per Share)

 

 

 

 

 

 

 

 

 

 

 

Selected Key Financial Statement Metrics:

 

 

 

 

 

 

 

 

Revenues

 

$

3,155,201

 

$

2,089,804

 

 

Gross profit

 

$

78,610

 

$

67,750

 

 

Depreciation and amortization expense

 

$

(2,741

)

$

(3,223

)

 

Net income attributable to the Company

 

$

41,834

 

$

37,336

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share:

 

 

 

 

 

 

 

 

Basic

 

$

1.80

 

 

 

$

1.62

 

 

Diluted

 

$

1.71

 

 

 

$

1.52

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures (1):

 

 

 

 

 

 

 

 

Adjusted net income before provision for income taxes

 

$

59,084

 

 

 

$

50,628

 

 

EBITDA

 

$

61,844

 

 

 

$

50,254

 

 

 

 

 

 

 

 

 

 

 

(1) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages 21-23

 

 

 

 

 

 

6


 

 

 

 

Three Months Ended

 

 

 

June 30, 2023

 

 

 

March 31, 2023

 

 

 

 

(in thousands, except Earnings per Share)

 

 

 

 

 

 

 

 

 

 

 

Selected Key Financial Statement Metrics:

 

 

 

 

 

 

 

 

Revenues

 

$

3,155,201

 

$

2,317,150

 

 

Gross profit

 

$

78,610

 

$

75,498

 

 

Depreciation and amortization expense

 

$

(2,741

)

$

(3,340

)

 

Net income attributable to the Company

 

$

41,834

 

$

35,920

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share:

 

 

 

 

 

 

 

 

Basic

 

$

1.80

 

 

 

$

1.53

 

 

Diluted

 

$

1.71

 

 

 

$

1.46

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures (1):

 

 

 

 

 

 

 

 

Adjusted net income before provision for income taxes

 

$

59,084

 

 

 

$

49,151

 

 

EBITDA

 

$

61,844

 

 

 

$

52,263

 

 

 

 

 

 

 

 

 

 

 

(1) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages 21-23

 

 

 

 

 

 

7


 

 

 

Full Year 2023 Financial Highlights

Revenues for the fiscal year ended June 30, 2023 increased 14% to $9.32 billion from $8.16 billion for the fiscal year ended June 30, 2022
Gross profit for the fiscal year ended June 30, 2023 increased 13% to $294.7 million from $261.8 million for the fiscal year ended June 30, 2022
Gross profit margin for the fiscal year ended June 30, 2023 decreased to 3.16% of revenue from 3.21% of revenue for the fiscal year ended June 30, 2022
Net income attributable to the Company for the fiscal year ended June 30, 2023 increased 18% to $156.4 million from $132.5 million for the fiscal year ended June 30, 2022
Diluted earnings per share totaled $6.34 for the fiscal year ended June 30, 2023, a 16% increase compared to $5.45 for the fiscal year ended June 30, 2022
Adjusted net income for the fiscal year ended June 30, 2023 increased 11% to $216.0 million from $195.0 million for the fiscal year ended June 30, 2022
EBITDA for the fiscal year ended June 30, 2023 increased 16% to $225.0 million from $193.9 million for the fiscal year ended June 30, 2022

 

 

 

Year Ended June 30,

 

 

 

2023

 

 

 

2022

 

 

 

 

(in thousands, except Earnings per Share)

 

 

 

 

 

 

 

 

 

 

 

Selected Key Financial Statement Metrics:

 

 

 

 

 

 

 

 

Revenues

 

$

9,322,407

 

$

8,159,254

 

 

Gross profit

 

$

294,669

 

$

261,765

 

 

Depreciation and amortization expense

 

$

(12,525

)

$

(27,300

)

 

Net income attributable to the Company

 

$

156,360

 

$

132,536

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share:

 

 

 

 

 

 

 

 

Basic

 

$

6.68

 

$

5.81

 

 

Diluted

 

$

6.34

 

$

5.45

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures (1):

 

 

 

 

 

 

 

 

Adjusted net income before provision for income taxes

 

$

215,980

 

 

 

$

195,000

 

 

EBITDA

 

$

224,992

 

 

 

$

193,909

 

 

 

 

 

 

 

 

 

 

 

(1) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages 21-23

 

 

 

 

 

Fiscal Fourth Quarter 2023 Financial Summary

Revenues increased 51% to $3.16 billion from $2.09 billion in the same year-ago quarter due to increases in gold and silver ounces sold and higher average selling prices of gold and silver.

The Direct-to-Consumer segment contributed 19% and 23% of the consolidated revenue in the fiscal fourth quarters of 2023 and 2022, respectively. JMB’s revenue represented 17% of the consolidated revenues for the fiscal fourth quarter of 2023 compared with 21% for the prior year fiscal fourth quarter.

 

8


 

 

Gross profit increased 16% to $78.6 million (2.49% of revenue) from $67.8 million (3.24% of revenue) in the same year-ago quarter. The increase in gross profit was due to higher gross profits earned from the Wholesale Sales & Ancillary Services Segment and Direct-to-Consumer segments. The Direct-to-Consumer segment contributed 60% and 57% of the consolidated gross profit in the fiscal fourth quarters of 2023 and 2022, respectively. Gross profit contributed by JMB represented 49% of the consolidated gross profit in the fiscal fourth quarter of 2023 and 46% of the consolidated gross profit for the prior year fiscal fourth quarter.

Selling, general, and administrative expenses increased 10% to $22.8 million from $20.7 million in the same year-ago quarter. The increase was primarily due to an increase in compensation expense (including performance-based accruals) of $1.3 million, higher advertising costs of $1.1 million, higher information technology costs of $0.9 million, and higher consulting and professional fees of $0.4 million, partially offset by lower insurance costs of $2.1 million.

Depreciation and amortization expense decreased 15% to $2.7 million from $3.2 million in the same year-ago quarter. The decrease in depreciation and amortization expense was primarily due to a decrease in amortization of acquired intangibles related to JMB.

Interest income increased 7% to $6.1 million from $5.7 million in the same year-ago quarter. The increase in interest income was primarily due to higher finance product income from our Wholesale Sales & Ancillary Services segment partially offset by a decrease in interest income earned by our Secured Lending segment.

Interest expense increased 57% to $8.9 million from $5.7 million in the same year-ago quarter. The increase in interest expense was primarily driven by a $2.4 million increase associated with our Trading Credit Facility (primarily due to an increase in interest rates) and Notes Payable (including amortization of debt issuance costs), and a $0.8 million increase related to product financing arrangements.

Earnings from equity method investments increased 105% to $5.3 million from $2.6 million in the same year-ago quarter. The increase reflects our new investments made during the year as well as the higher percentage ownership in our existing equity method investments in comparison to the prior year.

Net income attributable to the Company totaled $41.8 million or $1.71 per diluted share, compared to net income of $37.3 million or $1.52 per diluted share in the same year-ago quarter.

Adjusted net income for the three months ended June 30, 2023 totaled $59.1 million, compared to $50.6 million in the same year-ago quarter. The increase was principally due to higher net income before provision for income taxes of $9.2 million, partially offset by $0.6 million of lower amortization of acquired intangibles and $0.3 million of lower acquisition costs.

EBITDA for the three months ended June 30, 2023 totaled $61.8 million, compared to $50.3 million in the same year-ago quarter. The increase was principally due to an increase in income tax expense of $4.8 million, an increase in net income of $4.5 million, an increase in interest expense of $3.2 million, partially offset by a decrease in amortization of acquired intangibles of $0.6 million, and an increase in interest income of $0.4 million.

Full Year 2023 Financial Summary

Revenues increased 14% to $9.32 billion from $8.16 billion in the prior fiscal year. Excluding a $1.2 billion increase in forward sales, revenues increased by $2.6 million, driven primarily by an increase in silver ounces sold and higher average selling prices of gold, partially offset by a decrease in gold ounces sold and lower average selling prices of silver.

 

9


 

 

The Direct-to-Consumer segment contributed 21% and 26% of the consolidated revenue in the fiscal year ended June 30, 2023 and 2022, respectively. JMB's revenue represented 19% and 24% of the Company's consolidated revenue for the fiscal years ended June 30, 2023 and 2022, respectively.

Gross profit increased 13% to $294.7 million (3.16% of revenue) in fiscal year 2023 from $261.8 million (3.21% of revenue) in the prior year. Excluding a $1.2 billion increase in forward sales which have a negligible impact to gross profit, the gross profit percentage increased to 4.27% from 3.79% in the prior fiscal year. The increase in gross profit was due to higher gross profits earned from both 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 fiscal year 2023 and 2022, respectively. Gross profit contributed by JMB represented 49% and 46% of the consolidated gross profit during the fiscal year ended June 30, 2023 and 2022, respectively.

Selling, general and administrative expenses increased 11% to $85.3 million from $76.6 million in the prior fiscal year. The increase was primarily due to an increase in compensation expense (including performance-based accruals) of $6.4 million, higher advertising costs of $3.5 million, an increase in information technology costs of $1.7 million, partially offset by a decrease in insurance costs of $1.7 million and lower consulting and professional fees of $2.0 million.

Depreciation and amortization expense decreased 54% to $12.5 million from $27.3 million in fiscal 2022. The decrease was primarily due to $14.9 million of lower amortization of acquired intangibles related to JMB.

Interest income increased 2% to $22.2 million from $21.8 million in the prior fiscal year. The increase was primarily due to $1.8 million of higher other finance product income, partially offset by $1.4 million of lower interest income earned by our Secured Lending segment.

Interest expense increased 43% to $31.5 million from $22.0 million in fiscal year 2022. The increase in interest expense was primarily driven by $7.2 million associated with the Company’s Trading Credit Facility (primarily due to an increase in interest rates) and Notes Payable (including amortization of debt issuance costs), $2.6 million related to product financing arrangements, and $0.6 million in interest associated with liabilities on borrowed metals, partially offset by a decrease of $0.9 million of loan servicing fees.

Earnings from equity method investments increased 82% to $12.6 million from $6.9 million in the prior fiscal year. The increase of $5.7 million was primarily due to the additional 40% ownership interest in Silver Gold Bull, Inc., which was acquired in June 2022, as well as earnings from other equity method investments.

Net income attributable to the Company totaled $156.4 million or $6.34 per diluted share, compared to net income attributable to the Company of $132.5 million or $5.45 per diluted share in the prior fiscal year.

Adjusted net income for the fiscal year ended June 30, 2023 totaled $216.0 million, an increase of approximately $21.0 million or 11% compared to $195.0 million in the prior fiscal year. The increase was principally due to higher net income before provision for income taxes of $36.8 million, partially offset by a decrease in amortization of acquired intangibles of $15.3 million.

EBITDA for fiscal year 2023 totaled $225.0 million, an increase of $31.1 million or 16% compared to $193.9 million in the prior fiscal year. The increase was principally due to higher net income of $23.7 million, higher income tax expense of $13.1 million, and higher interest expense of $9.5 million, partially offset by lower amortization of acquired intangibles of $15.3 million.

 

10


 

 

Dividends

Special Dividend

A-Mark’s Board of Directors has declared a non-recurring special cash dividend of $1.00 per common share. The special dividend will be paid on September 26, 2023 to stockholders of record as of September 12, 2023.

Regular Quarterly Cash Dividend

A-Mark’s Board of Directors has declared a quarterly cash dividend of $0.20 per common share, maintaining the Company's current dividend program. The dividend is payable on October 24, 2023 to stockholders of record as of October 10, 2023.

Conference Call

A-Mark will hold a conference call today (August 31, 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/2867/48656

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

International number: 1-973-528-0011

Access Code: 250722

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 on the same day through September 14, 2023.

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

International replay number: 1-919-882-2331

Replay Passcode: 48656


About A-Mark Precious Metals

Founded in 1965, A-Mark Precious Metals, Inc. 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, e-commerce customers, and other retail customers.

 

11


 

 

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 Silver Towne 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 seven separately branded, company-owned websites targeting specific niches within the precious metals market: JMBullion.com, ProvidentMetals.com, Silver.com, GoldPrice.org, SilverPrice.org, BGASC.com and BullionMax.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 four 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.

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.

A-Mark periodically provides information for investors on its corporate website, www.amark.com,and its investor relations website, ir.amark.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and investor presentations.

 

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 with respect to the dividend declarations, the amount or timing of any future dividends, future macroeconomic conditions and demand for precious metal products, and the Company’s ability to effectively respond to changing economic conditions. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results or circumstances to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: the failure to execute the Company’s growth strategy, including the inability to identify suitable or available acquisition or investment opportunities; greater than anticipated costs incurred to execute this strategy; changes in the current international political climate, which has favorably contributed to demand and volatility in the precious metals markets; potential adverse effects of the current problems in the national and global supply chains; increased competition for the Company’s higher margin services, which could depress pricing; the failure of the Company’s business model to respond to changes in the market environment as anticipated; changes in consumer demand and preferences for precious metal products generally; potential negative effects that inflationary pressure may have on our business; the inability of the Company to expand capacity at Silver Towne Mint, the failure of our investee companies to maintain, or address the preferences of, their customer bases; general risks of doing business in the commodity markets; and the strategic, business, economic, financial, political and governmental risks and other Risk Factors described in in the Company’s public filings with the Securities and Exchange Commission.

The Company undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Use and Reconciliation of Non-GAAP Measures

In addition to presenting the Company’s financial results determined in accordance with 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 performance 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 of our business operations before investing activities, interest, and income taxes 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 Annual Report on Form 10-K 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.

 

13


 

 

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 income before provision for income taxes" to its non-GAAP "adjusted net income before provision for income taxes", and “net income” and “net cash provided by (used in) operating activities” to its non-GAAP “EBITDA” are provided below and are also included in the Company’s Annual Report on Form 10-K to be filed with the SEC for the fiscal year ended June 30, 2023.

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 and Matthew Hausch

Gateway Group, Inc.

1-949-574-3860

AMRK@gateway-grp.com



 


 

 

14


 

 

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except for share data)

 

 

 

June 30, 2023

 

 

June 30, 2022

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$

39,318

 

 

$

37,783

 

Receivables, net

 

 

35,243

 

 

 

97,040

 

Derivative assets

 

 

77,881

 

 

 

91,743

 

Secured loans receivable

 

 

100,620

 

 

 

126,217

 

Precious metals held under financing arrangements

 

 

25,530

 

 

 

79,766

 

Inventories:

 

 

 

 

 

 

Inventories

 

 

645,812

 

 

 

458,347

 

Restricted inventories

 

 

335,831

 

 

 

282,671

 

 

 

981,643

 

 

 

741,018

 

Prepaid expenses and other assets

 

 

6,956

 

 

 

7,558

 

Total current assets

 

 

1,267,191

 

 

 

1,181,125

 

Operating lease right of use assets

 

 

5,119

 

 

 

6,482

 

Property, plant, and equipment, net

 

 

12,513

 

 

 

9,845

 

Goodwill

 

 

100,943

 

 

 

100,943

 

Intangibles, net

 

 

62,630

 

 

 

67,965

 

Long-term investments

 

 

88,535

 

 

 

70,828

 

Other long-term assets

 

 

8,640

 

 

 

5,471

 

Total assets

 

$

1,545,571

 

 

$

1,442,659

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Lines of credit

 

$

235,000

 

 

$

215,000

 

Liabilities on borrowed metals

 

 

21,642

 

 

 

59,417

 

Product financing arrangements

 

 

335,831

 

 

 

282,671

 

Accounts payable and other payables

 

 

25,465

 

 

 

6,127

 

Deferred revenue and other advances

 

 

181,363

 

 

 

175,545

 

Derivative liabilities

 

 

8,076

 

 

 

75,780

 

Accrued liabilities

 

 

20,418

 

 

 

21,813

 

Income tax payable

 

 

958

 

 

 

382

 

Notes payable

 

 

95,308

 

 

 

 

Total current liabilities

 

 

924,061

 

 

 

836,735

 

Notes payable

 

 

 

 

 

94,073

 

Deferred tax liabilities

 

 

16,677

 

 

 

15,408

 

Other liabilities

 

 

4,440

 

 

 

5,972

 

Total liabilities

 

 

945,178

 

 

 

952,188

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of June 30, 2023 or June 30, 2022

 

 

 

 

 

 

Common stock, par value $0.01; 40,000,000 shares authorized; 23,672,122 and 23,379,888 shares issued and 23,336,387 and 23,379,888 shares outstanding as of June 30, 2023 and June 30, 2022, respectively

 

 

237

 

 

 

234

 

Treasury stock, 335,735 and 0 shares at cost as of June 30, 2023 and June 30, 2022, respectively

 

 

(9,762

)

 

 

 

Additional paid-in capital

 

 

169,034

 

 

 

166,526

 

Accumulated other comprehensive loss

 

 

(1,025

)

 

 

 

Retained earnings

 

 

440,639

 

 

 

321,849

 

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

 

 

599,123

 

 

 

488,609

 

Noncontrolling interest

 

 

1,270

 

 

 

1,862

 

Total stockholders’ equity

 

 

600,393

 

 

 

490,471

 

Total liabilities, noncontrolling interest and stockholders’ equity

 

$

1,545,571

 

 

$

1,442,659

 

 

 

 

 

15


 

 

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

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

 

 

 

Year Ended June 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Revenues

 

$

9,322,407

 

 

$

8,159,254

 

 

$

7,613,015

 

Cost of sales

 

 

9,027,738

 

 

 

7,897,489

 

 

 

7,402,817

 

Gross profit

 

 

294,669

 

 

 

261,765

 

 

 

210,198

 

Selling, general, and administrative expenses

 

 

(85,282

)

 

 

(76,618

)

 

 

(48,020

)

Depreciation and amortization expense

 

 

(12,525

)

 

 

(27,300

)

 

 

(10,789

)

Interest income

 

 

22,231

 

 

 

21,800

 

 

 

18,474

 

Interest expense

 

 

(31,528

)

 

 

(21,992

)

 

 

(19,865

)

Earnings from equity method investments

 

 

12,576

 

 

 

6,907

 

 

 

15,547

 

Other income, net

 

 

2,663

 

 

 

1,953

 

 

 

1,079

 

Remeasurement gain on pre-existing equity interest

 

 

 

 

 

 

 

 

26,306

 

Unrealized gains (losses) on foreign exchange

 

 

366

 

 

 

(98

)

 

 

(129

)

Net income before provision for income taxes

 

 

203,170

 

 

 

166,417

 

 

 

192,801

 

Income tax expense

 

 

(46,401

)

 

 

(33,338

)

 

 

(31,877

)

Net income

 

 

156,769

 

 

 

133,079

 

 

 

160,924

 

Net income attributable to noncontrolling interest

 

 

409

 

 

 

543

 

 

 

1,287

 

Net income attributable to the Company

 

$

156,360

 

 

$

132,536

 

 

$

159,637

 

Basic and diluted net income per share attributable
   to A-Mark Precious Metals, Inc.:

 

 

 

 

 

 

 

 

 

Basic

 

$

6.68

 

 

$

5.81

 

 

$

9.57

 

Diluted

 

$

6.34

 

 

$

5.45

 

 

$

8.90

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

23,400,300

 

 

 

22,805,600

 

 

 

16,686,600

 

Diluted

 

 

24,648,600

 

 

 

24,329,500

 

 

 

17,944,600

 

 

 

 

 

 

 

 

16


 

 

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

 

 

 

Year Ended June 30,

 

 

 

2023

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

156,769

 

 

$

133,079

 

 

$

160,924

 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

12,525

 

 

 

27,300

 

 

 

10,789

 

Amortization of loan cost

 

 

2,113

 

 

 

2,651

 

 

 

2,162

 

Deferred income taxes

 

 

1,585

 

 

 

(4,106

)

 

 

(2,034

)

Share-based compensation

 

 

2,176

 

 

 

2,140

 

 

 

1,173

 

Remeasurement gain on pre-existing equity method investment

 

 

 

 

 

 

 

 

(26,306

)

Earnings from equity method investments

 

 

(12,576

)

 

 

(6,907

)

 

 

(15,547

)

Dividends and distributions received from equity method investees

 

 

978

 

 

 

1,678

 

 

 

343

 

Other

 

 

(155

)

 

 

215

 

 

 

(13

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

Receivables, net

 

 

61,797

 

 

 

(8,040

)

 

 

(20,880

)

Secured loans receivable

 

 

1,012

 

 

 

757

 

 

 

1,932

 

Secured loans made to affiliates

 

 

 

 

 

3,042

 

 

 

5,755

 

Derivative assets

 

 

13,862

 

 

 

(47,207

)

 

 

7,447

 

Precious metals held under financing arrangements

 

 

54,236

 

 

 

74,976

 

 

 

23,835