| Segment and Geographic Information |
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 the reporting package reviewed by the Chief Operation Decision Maker (“CODM”). The Company has concluded the Chief Executive Officer and the President collectively act as the CODM. The Company's operations are organized under two business segments — Wholesale Trading & Ancillary Services and Direct Sales.
Our Direct Sales segment was created on August 28, 2017 as a result of our recent acquisition (see Note 1), and thus comparative prior period data is not available ("N/A").
Revenue
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in thousands |
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Three Months Ended |
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Six Months Ended |
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Three Months Ended September 30, |
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December 31, 2017 |
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December 31, 2016 |
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December 31, 2017 |
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December 31, 2016 |
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Revenue by segment |
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Wholesale Trading & Ancillary Services |
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$ |
1,651,442 |
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$ |
2,126,361 |
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$ |
3,804,862 |
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$ |
3,932,014 |
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Direct Sales |
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29,296 |
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(1) |
N/A |
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39,666 |
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(2) |
N/A |
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Total revenue |
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$ |
1,680,738 |
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$ |
2,126,361 |
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$ |
3,844,528 |
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$ |
3,932,014 |
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_________________________________ |
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(1) Includes $10.8 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. The elimination of these intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment. |
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(2) Includes $17.7 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. The elimination of these intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment. |
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in thousands |
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Three Months Ended |
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Six Months Ended |
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Three Months Ended September 30, |
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December 31, 2017 |
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December 31, 2016 |
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December 31, 2017 |
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December 31, 2016 |
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Revenue by geographic region
(as determined by the shipping address or where the services were performed):
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United States |
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$ |
1,579,893 |
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$ |
2,009,168 |
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$ |
3,631,814 |
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$ |
3,719,247 |
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Europe |
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73,022 |
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56,565 |
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127,380 |
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103,585 |
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North America, excluding United States |
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26,896 |
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55,247 |
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81,774 |
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100,050 |
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Asia Pacific |
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374 |
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4,039 |
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1,726 |
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6,574 |
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Africa |
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1 |
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— |
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1 |
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— |
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Australia |
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552 |
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1,342 |
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1,833 |
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2,558 |
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Total revenue |
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$ |
1,680,738 |
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$ |
2,126,361 |
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$ |
3,844,528 |
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$ |
3,932,014 |
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in thousands |
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Three Months Ended |
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Six Months Ended |
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Three Months Ended September 30, |
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December 31, 2017 |
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December 31, 2016 |
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December 31, 2017 |
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December 31, 2016 |
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Gross profit by segment |
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Wholesale Trading & Ancillary Services |
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$ |
7,168 |
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$ |
9,859 |
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$ |
12,813 |
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$ |
17,923 |
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Direct Sales |
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1,748 |
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N/A |
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3,409 |
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N/A |
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Total gross profit |
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$ |
8,916 |
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$ |
9,859 |
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$ |
16,222 |
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$ |
17,923 |
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Gross margin percentage by segment |
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Wholesale Trading & Ancillary Services |
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0.434 |
% |
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0.464 |
% |
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0.337 |
% |
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0.456 |
% |
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Direct Sales |
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5.967 |
% |
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N/A |
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8.594 |
% |
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N/A |
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Weighted average gross margin percentage |
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0.530 |
% |
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0.464 |
% |
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0.422 |
% |
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0.456 |
% |
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Operating Expenses and Income
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in thousands |
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Three Months Ended |
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Six Months Ended |
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Three Months Ended September 30, |
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December 31, 2017 |
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December 31, 2016 |
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December 31, 2017 |
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December 31, 2016 |
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Operating income and expenses by segment |
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Wholesale Trading & Ancillary Services |
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General and administrative expenses |
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$ |
(5,724 |
) |
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$ |
(6,131 |
) |
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$ |
(11,517 |
) |
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$ |
(11,795 |
) |
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Interest income |
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$ |
3,268 |
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$ |
2,959 |
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$ |
6,429 |
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$ |
5,818 |
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Interest expense |
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$ |
(3,159 |
) |
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$ |
(2,447 |
) |
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$ |
(5,813 |
) |
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$ |
(4,688 |
) |
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Other expense |
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$ |
790 |
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$ |
90 |
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$ |
750 |
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$ |
70 |
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Direct Sales |
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General and administrative expenses |
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$ |
(3,625 |
) |
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N/A |
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$ |
(4,808 |
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N/A |
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Interest expense |
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$ |
(200 |
) |
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N/A |
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$ |
(279 |
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N/A |
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Depreciation and Amortization
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in thousands |
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Three Months Ended |
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Six Months Ended |
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Three Months Ended September 30, |
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December 31, 2017 |
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December 31, 2016 |
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December 31, 2017 |
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December 31, 2016 |
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Depreciation and amortization by segment |
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Wholesale Trading & Ancillary Services |
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$ |
(428 |
) |
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$ |
(386 |
) |
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$ |
(760 |
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$ |
(707 |
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Direct Sales |
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(355 |
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N/A |
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(552 |
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N/A |
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Total depreciation and amortization |
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$ |
(783 |
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$ |
(386 |
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$ |
(1,312 |
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$ |
(707 |
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Advertising expense
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in thousands |
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Three Months Ended |
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Six Months Ended |
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Three Months Ended September 30, |
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December 31, 2017 |
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December 31, 2016 |
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December 31, 2017 |
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December 31, 2016 |
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Advertising expense by segment |
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Wholesale Trading & Ancillary Services |
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$ |
(190 |
) |
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$ |
(199 |
) |
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$ |
(302 |
) |
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$ |
(366 |
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Direct Sales |
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(869 |
) |
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N/A |
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(1,274 |
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N/A |
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Total advertising expense |
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$ |
(1,059 |
) |
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$ |
(199 |
) |
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$ |
(1,576 |
) |
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$ |
(366 |
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Inventory
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in thousands |
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December 31, 2017 |
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June 30, 2017 |
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Inventories by segment |
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Wholesale Trading & Ancillary Services |
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$ |
324,194 |
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$ |
284,659 |
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Direct Sales |
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11,041 |
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N/A |
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Total inventories |
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$ |
335,235 |
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$ |
284,659 |
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in thousands |
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December 31, 2017 |
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June 30, 2017 |
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Inventories by geographic region |
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United States |
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$ |
323,005 |
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$ |
276,809 |
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Europe |
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4,481 |
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3,154 |
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North America, excluding United States |
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7,240 |
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|
4,310 |
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Asia |
|
509 |
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|
386 |
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Total inventories |
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$ |
335,235 |
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$ |
284,659 |
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in thousands |
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December 31, 2017 |
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June 30, 2017 |
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Assets by segment |
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Wholesale Trading & Ancillary Services |
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$ |
498,020 |
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$ |
478,500 |
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Direct Sales |
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29,103 |
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N/A |
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Total assets |
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$ |
527,123 |
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$ |
478,500 |
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in thousands |
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December 31, 2017 |
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June 30, 2017 |
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Assets by geographic region |
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United States |
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$ |
510,504 |
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$ |
469,114 |
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Europe |
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8,870 |
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4,690 |
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North America, excluding United States |
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7,240 |
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4,310 |
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Asia |
|
509 |
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|
386 |
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Total assets |
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$ |
527,123 |
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$ |
478,500 |
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in thousands |
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December 31, 2017 |
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June 30, 2017 |
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Long-term assets by segment |
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Wholesale Trading & Ancillary Services |
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$ |
31,354 |
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$ |
31,479 |
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Direct Sales |
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7,839 |
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N/A |
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Total long-term assets |
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$ |
39,193 |
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$ |
31,479 |
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in thousands |
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December 31, 2017 |
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June 30, 2017 |
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Long-term assets by geographic region |
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United States |
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$ |
39,138 |
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$ |
31,423 |
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Europe |
|
55 |
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|
56 |
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Total long-term assets |
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$ |
39,193 |
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$ |
31,479 |
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Capital Expenditures for Property and Equipment
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in thousands |
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Six Months Ended |
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Three Months Ended September 30, |
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December 31, 2017 |
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December 31, 2016 |
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Capital expenditures on property and equipment by segment |
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Wholesale Trading & Ancillary Services |
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$ |
269 |
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$ |
944 |
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Direct Sales |
|
148 |
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N/A |
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Total capital expenditures on property and equipment |
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$ |
417 |
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$ |
944 |
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Goodwill
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in thousands |
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December 31, 2017 |
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June 30, 2017 |
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Goodwill by segment |
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Wholesale Trading & Ancillary Services |
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$ |
8,881 |
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$ |
8,881 |
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Direct Sales |
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1,450 |
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N/A |
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Total goodwill |
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$ |
10,331 |
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$ |
8,881 |
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