| Segments and Geographic Information |
18. SEGMENTS AND GEOGRAPHIC INFORMATION
The Company evaluates segment reporting in accordance with FASB ASC 280, Segment Reporting, each reporting period, including evaluating the organizational structure and the reporting package that is reviewed by the chief operating decision makers. The Company's operations are organized under three business segments — Wholesale Trading & Ancillary Services, Secured Lending, and Direct Sales. (See Note 1 for a description of the types of products and services from which each reportable segment derives its revenues.)
Revenue
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
|
June 30,
2020
|
|
|
|
June 30,
2019
|
|
|
|
Revenue by segment(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services(3)
|
|
$
|
5,360,899
|
|
|
|
$
|
4,733,800
|
|
|
|
Direct Sales
|
|
|
100,195
|
|
(a)
|
|
|
49,357
|
|
(b)
|
|
|
|
$
|
5,461,094
|
|
|
|
$
|
4,783,157
|
|
|
|
(1)
|
Inter-segment purchases from and sales to the Direct Sales segment are transacted at Wholesale Trading & Ancillary Services segment's prices, which is consistent with arms-length transactions with third-parties.
|
|
(2)
|
The Secured Lending segment earns interest income from its lending activity and earns no revenue from the sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table.
|
|
(3)
|
The elimination of inter-segment sales are reflected in the Wholesale Trading & Ancillary Services segment.
|
|
(a)
|
Includes $26.4 million of inter-segment sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
|
|
(b)
|
Includes $0.9 million of inter-segment sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
June 30,
2020
|
|
|
|
June 30,
2019
|
|
|
Revenue by geographic region (as determined by the shipping or billing
address or where the services were performed):
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
4,261,113
|
|
|
|
$
|
4,234,921
|
|
|
Europe
|
|
|
463,313
|
|
|
|
|
224,894
|
|
|
North America, excluding United States
|
|
|
679,976
|
|
|
|
|
314,592
|
|
|
Asia Pacific
|
|
|
40,352
|
|
|
|
|
6,116
|
|
|
Africa
|
|
|
31
|
|
|
|
|
10
|
|
|
Australia
|
|
|
16,309
|
|
|
|
|
2,624
|
|
|
|
|
$
|
5,461,094
|
|
|
|
$
|
4,783,157
|
|
Gross Profit and Gross Margin Percentage
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
June 30,
2020
|
|
|
|
June 30,
2019
|
|
|
Gross profit by segment(1)
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
56,908
|
|
|
|
$
|
26,270
|
|
|
Direct Sales
|
|
|
10,065
|
|
|
|
|
5,688
|
|
|
Total gross profit
|
|
$
|
66,973
|
|
|
|
$
|
31,958
|
|
|
Gross margin percentage by segment(1)
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
|
1.062
|
%
|
|
|
|
0.555
|
%
|
|
Direct Sales
|
|
|
10.045
|
%
|
|
|
|
11.524
|
%
|
|
Weighted average gross margin percentage
|
|
|
1.226
|
%
|
|
|
|
0.668
|
%
|
|
(1)
|
The Secured Lending segment earns interest income from its lending activity and earns no gross profit from the sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table.
|
Operating income and (expenses)
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
June 30,
2020
|
|
|
|
June 30,
2019
|
|
|
Operating income (expense) by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
$
|
(27,150
|
)
|
|
|
$
|
(22,274
|
)
|
|
Interest income
|
|
$
|
9,024
|
|
|
|
$
|
8,601
|
|
|
Interest expense
|
|
$
|
(10,527
|
)
|
|
|
$
|
(9,626
|
)
|
|
Other income, net
|
|
$
|
4,868
|
|
|
|
$
|
1,749
|
|
|
Unrealized gains on foreign exchange
|
|
$
|
57
|
|
|
|
$
|
—
|
|
|
Secured Lending
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
$
|
(1,893
|
)
|
|
|
$
|
(1,456
|
)
|
|
Interest income
|
|
$
|
12,213
|
|
|
|
$
|
10,657
|
|
|
Interest expense
|
|
$
|
(8,332
|
)
|
|
|
$
|
(7,178
|
)
|
|
Other income, net
|
|
$
|
577
|
|
|
|
$
|
105
|
|
|
Direct Sales
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
$
|
(7,713
|
)
|
|
|
$
|
(8,772
|
)
|
|
Interest expense
|
|
$
|
—
|
|
|
|
$
|
(342
|
)
|
|
Other expense, net
|
|
$
|
(219
|
)
|
|
|
$
|
(157
|
)
|
Net income (loss) before provision for income taxes
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
June 30,
2020
|
|
|
|
June 30,
2019
|
|
|
Net income (loss) before provision for income taxes by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
33,180
|
|
|
|
$
|
4,720
|
|
|
Secured Lending
|
|
|
2,565
|
|
|
|
|
2,128
|
|
|
Direct Sales
|
|
|
2,133
|
|
|
|
|
(3,571
|
)
|
|
|
|
$
|
37,878
|
|
|
|
$
|
3,277
|
|
Depreciation and Amortization
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
June 30,
2020
|
|
|
|
June 30,
2019
|
|
|
Depreciation and amortization by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
(1,554
|
)
|
|
|
$
|
(1,576
|
)
|
|
Secured Lending
|
|
|
(403
|
)
|
|
|
|
(18
|
)
|
|
Direct Sales
|
|
|
(943
|
)
|
|
|
|
(1,213
|
)
|
|
|
|
$
|
(2,900
|
)
|
|
|
$
|
(2,807
|
)
|
Advertising expense
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
June 30,
2020
|
|
|
|
June 30,
2019
|
|
|
Advertising expense by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
(435
|
)
|
|
|
$
|
(515
|
)
|
|
Secured Lending
|
|
|
(25
|
)
|
|
|
|
(13
|
)
|
|
Direct Sales
|
|
|
(1,745
|
)
|
|
|
|
(1,933
|
)
|
|
|
|
$
|
(2,205
|
)
|
|
|
$
|
(2,461
|
)
|
Precious metals held under financing arrangements
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Precious metals held under financing arrangements by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
157,609
|
|
|
$
|
208,792
|
|
|
Secured Lending
|
|
|
20,968
|
|
|
|
—
|
|
|
|
|
$
|
178,577
|
|
|
$
|
208,792
|
|
Inventories
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Inventories by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
289,069
|
|
|
$
|
268,383
|
|
|
Secured Lending
|
|
|
24,057
|
|
|
|
16,867
|
|
|
Direct Sales
|
|
|
8,155
|
|
|
|
7,611
|
|
|
|
|
$
|
321,281
|
|
|
$
|
292,861
|
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Inventories by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
287,960
|
|
|
$
|
280,924
|
|
|
Europe
|
|
|
19,531
|
|
|
|
3,944
|
|
|
North America, excluding United States
|
|
|
13,735
|
|
|
|
7,452
|
|
|
Asia
|
|
|
55
|
|
|
|
541
|
|
|
|
|
$
|
321,281
|
|
|
$
|
292,861
|
|
Total Assets
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Assets by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
599,032
|
|
|
$
|
561,902
|
|
|
Secured Lending
|
|
|
140,622
|
|
|
|
130,143
|
|
|
Direct Sales
|
|
|
18,381
|
|
|
|
13,317
|
|
|
|
|
$
|
758,035
|
|
|
$
|
705,362
|
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Assets by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
723,252
|
|
|
$
|
689,287
|
|
|
Europe
|
|
|
20,993
|
|
|
|
8,082
|
|
|
North America, excluding United States
|
|
|
13,735
|
|
|
|
7,452
|
|
|
Asia
|
|
|
55
|
|
|
|
541
|
|
|
|
|
$
|
758,035
|
|
|
$
|
705,362
|
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Long-term assets by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
39,090
|
|
|
$
|
32,816
|
|
|
Secured Lending
|
|
|
1,319
|
|
|
|
280
|
|
|
Direct Sales
|
|
|
3,607
|
|
|
|
3,416
|
|
|
|
|
$
|
44,016
|
|
|
$
|
36,512
|
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Long-term assets by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
43,963
|
|
|
$
|
36,459
|
|
|
Europe
|
|
|
53
|
|
|
|
53
|
|
|
|
|
$
|
44,016
|
|
|
$
|
36,512
|
|
Capital Expenditures for Property, Plant, and Equipment
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
June 30,
2020
|
|
|
|
June 30,
2019
|
|
|
Capital expenditures on property, plant, and equipment by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
747
|
|
|
|
$
|
258
|
|
|
Secured Lending
|
|
|
76
|
|
|
|
|
196
|
|
|
Direct Sales
|
|
|
13
|
|
|
|
|
36
|
|
|
|
|
$
|
836
|
|
|
|
$
|
490
|
|
Goodwill
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Goodwill by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
8,881
|
|
|
$
|
8,881
|
|
|
Direct Sales (1)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
$
|
8,881
|
|
|
$
|
8,881
|
|
|
(1)
|
Direct Sales goodwill balance is net of $1.4 million accumulated impairment losses.
|
Intangible assets
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
Intangibles by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
2,907
|
|
|
$
|
3,206
|
|
|
Direct Sales
|
|
|
2,067
|
|
|
|
2,646
|
|
|
|
|
$
|
4,974
|
|
|
$
|
5,852
|
|
|