Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Information

v3.19.1
Segment and Geographic Information
9 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
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 and the reporting package that is reviewed by the Chief Operating Decision Makers (“CODM”). The Company's operations are organized under three business segments — Wholesale Trading & Ancillary Services, Secured Lending, and Direct Sales.
Revenue
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2019
 
March 31, 2018
 
March 31, 2019
 
March 31, 2018
 
Revenue by segment (1)(2)
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services (3)
 
$
1,251,385

 
$
1,977,273

 
$
3,893,886

 
$
5,782,135

 
Direct Sales
 
15,601

(a) 
17,690

(b) 
39,102

(c) 
57,356

(d) 
Total revenue
 
$
1,266,986

 
$
1,994,963

 
$
3,932,988

 
$
5,839,491

 
 
 
 
 
 
 
 
 
 
 
_________________________________
 
 
 
 
 
 
 
 
 
(1) Intercompany 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 intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment.
 
(a) Includes $0.3 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
 
 
 
(b) Includes $4.3 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
 
 
 
 
 
 
 
 
 
 
 
(c) Includes $0.6 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
 
 
 
 
 
 
 
 
 
 
 
(d) Includes $21.9 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
 
 
 
 
 
 
 
 
 
 
 

in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2019
 
March 31, 2018
 
March 31, 2019
 
March 31, 2018
 
Revenue by geographic region
(as determined by the shipping address or where the services were performed):
 
United States
 
$
1,148,787

 
$
1,851,752

 
$
3,493,306

 
$
5,483,566

 
Europe
 
47,997

 
77,580

 
186,758

 
204,960

 
North America, excluding United States
 
67,637

 
64,463

 
246,306

 
146,237

 
Asia Pacific
 
2,295

 
684

 
5,252

 
2,410

 
Africa
 

 

 
1

 
1

 
Australia
 
270

 
484

 
1,365

 
2,317

 
Total revenue
 
$
1,266,986

 
$
1,994,963

 
$
3,932,988

 
$
5,839,491

 
 
 
 
 
 
 
 
 
 
 
Gross Profit and Gross Margin Percentage
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2019
 
March 31, 2018
 
March 31, 2019
 
March 31, 2018
 
Gross profit by segment(1)
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
6,934

 
$
6,748

 
$
21,150

 
$
19,561

 
Direct Sales
 
1,782

 
679

 
4,358

 
4,088

 
Total gross profit
 
$
8,716

 
$
7,427

 
$
25,508

 
$
23,649

 
Gross margin percentage by segment(1)
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
0.554
%
 
0.341
%
 
0.543
%
 
0.338
%
 
Direct Sales
 
11.422
%
 
3.838
%
 
11.145
%
 
7.127
%
 
Weighted average gross margin percentage
 
0.688
%
 
0.372
%
 
0.649
%
 
0.405
%
 
 
 
 
 
 
 
 
 
 
 
_________________________________
 
 
 
 
 
 
 
 
 
(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
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2019
 
March 31, 2018
 
March 31, 2019
 
March 31, 2018
 
Operating income and (expenses) by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
$
(5,618
)
 
$
(5,216
)
 
$
(16,525
)
 
$
(16,002
)
 
Interest income
 
$
2,052

 
$
1,564

 
$
6,458

 
$
3,620

 
Interest expense
 
$
(2,401
)
 
$
(1,983
)
 
$
(7,255
)
 
$
(5,375
)
 
Other income, net
 
$
337

 
$
67

 
$
1,382

 
$
817

 
Secured Lending
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
$
(394
)
 
$
(571
)
 
$
(1,083
)
 
$
(1,302
)
 
Interest income
 
$
2,755

 
$
2,523

 
$
7,552

 
$
6,896

 
Interest expense
 
$
(1,838
)
 
$
(1,433
)
 
$
(4,850
)
 
$
(3,854
)
 
Other income, net
 
$

 
$

 
$
24

 
$

 
Direct Sales
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
$
(2,246
)
 
$
(3,636
)
 
$
(6,472
)
 
$
(8,444
)
 
Interest expense
 
$

 
$
(226
)
 
$
(342
)
 
$
(505
)
 
Other expense, net
 

 

 
$
(157
)
 
$

 
Net (loss) income before provision for income taxes
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2019
 
March 31, 2018
 
March 31, 2019
 
March 31, 2018
 
Net (loss) income before provision for income taxes by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
1,304

 
$
1,180

 
$
5,210

 
$
2,621

 
Secured Lending
 
523

 
519

 
1,643

 
1,740

 
Direct Sales
 
(464
)
 
(3,183
)
 
(2,613
)
 
(4,861
)
 
Total net income (loss) before provision for income taxes
 
$
1,363

 
$
(1,484
)
 
$
4,240

 
$
(500
)
 
Depreciation and Amortization
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2019
 
March 31, 2018
 
March 31, 2019
 
March 31, 2018
 
Depreciation and amortization by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
(386
)
 
$
(386
)
 
$
(1,177
)
 
$
(1,170
)
 
Direct Sales
 
(304
)
 
(296
)
 
(911
)
 
(824
)
 
Total depreciation and amortization
 
$
(690
)
 
$
(682
)
 
$
(2,088
)
 
$
(1,994
)
 
Advertising expense
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2019
 
March 31, 2018
 
March 31, 2019
 
March 31, 2018
 
Advertising expense by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
(115
)
 
$
(157
)
 
$
(383
)
 
$
(441
)
 
Secured Lending
 
(5
)
 
(7
)
 
(9
)
 
(26
)
 
Direct Sales
 
(499
)
 
(797
)
 
(1,465
)
 
(2,070
)
 
Total advertising expense
 
$
(619
)
 
$
(961
)
 
$
(1,857
)
 
$
(2,537
)
 
Precious metals held under financing arrangements
in thousands
 
 
 
 
 
 
 
March 31, 2019
 
June 30, 2018
 
Precious metals held under financing arrangements by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
212,622

 
$
262,566

 
Total precious metals held under financing arrangements
 
$
212,622

 
$
262,566

 
 
 
 
 
 
 
Inventory
in thousands
 
 
 
 
 
 
 
March 31, 2019
 
June 30, 2018
 
Inventories by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
258,937

 
$
272,034

 
Direct Sales
 
7,482

 
8,082

 
Total inventories
 
$
266,419

 
$
280,116

 
in thousands
 
 
 
 
 
 
 
March 31, 2019
 
June 30, 2018
 
Inventories by geographic region
 
 
 
 
 
United States
 
$
253,074

 
$
273,008

 
Europe
 
3,797

 
1,965

 
North America, excluding United States
 
9,225

 
4,976

 
Asia
 
323

 
167

 
Total inventories
 
$
266,419

 
$
280,116

 
 
 
 
 
 
 
Assets
in thousands
 
 
 
 
 
 
 
March 31, 2019
 
June 30, 2018
 
Assets by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
528,277

 
$
616,522

 
Secured Lending
 
116,312

 
111,304

 
Direct Sales
 
13,183

 
15,175

 
Total assets
 
$
657,772

 
$
743,001

 
in thousands
 
 
 
 
 
 
 
March 31, 2019
 
June 30, 2018
 
Assets by geographic region
 
 
 
 
 
United States
 
$
643,043

 
$
733,131

 
Europe
 
5,181

 
4,727

 
North America, excluding United States
 
9,225

 
4,976

 
Asia
 
323

 
167

 
Total assets
 
$
657,772

 
$
743,001

 
Long-term Assets
in thousands
 
 
 
 
 
 
 
March 31, 2019
 
June 30, 2018
 
Long-term assets by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
32,597

 
$
31,328

 
Secured Lending
 
197

 
102

 
Direct Sales
 
3,685

 
4,588

 
Total long-term assets
 
$
36,479

 
$
36,018

 
in thousands
 
 
 
 
 
 
 
March 31, 2019
 
June 30, 2018
 
Long-term assets by geographic region
 
 
 
 
 
United States
 
$
36,426

 
$
35,965

 
     Europe
 
53

 
53

 
Total long-term assets
 
$
36,479

 
$
36,018

 

Capital Expenditures for Property and Equipment
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2019
 
March 31, 2018
 
March 31, 2019
 
March 31, 2018
 
Capital expenditures on plant, property and equipment by segment
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
26

 
$
404

 
$
164

 
$
673

 
Secured Lending
 
91

 

 
91

 

 
Direct Sales
 
35

 

 
35

 
148

 
Total capital expenditures on property and equipment
 
$
152

 
$
404

 
$
290

 
$
821

 
 
 
 
 
 
 
 
 
 
 
Goodwill and Intangible Assets
in thousands
 
 
 
 
 
 
 
March 31, 2019
 
June 30, 2018
 
Goodwill and Intangibles by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
12,196

 
$
12,516

 
Direct Sales
 
2,790

 
3,226

 
Total goodwill and intangible assets
 
$
14,986

 
$
15,742