Annual report pursuant to Section 13 and 15(d)

Segments and Geographic Information

v3.21.2
Segments and Geographic Information
12 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
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 —(i) Wholesale Sales & Ancillary Services (formerly known as Wholesale Trading & Ancillary Services), (ii) Secured Lending and (iii) Direct-to-Consumer (formerly known as Direct Sales). The Wholesale Sales & Ancillary Services segment includes the consolidating eliminations of inter-segment transactions and unallocated segment adjustments. (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,

2021

 

 

 

June 30,

2020

 

 

Revenue by segment(1)(2)

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

7,520,111

 

 

 

$

5,485,645

 

 

Eliminations of inter-segment sales

 

 

(781,404

)

 

 

 

(124,746

)

 

Wholesale Sales & Ancillary Services, net of eliminations ⁽³⁾

 

 

6,738,707

 

 

 

 

5,360,899

 

 

Direct-to-Consumer

 

 

874,308

 

(a)

 

 

100,195

 

(b)

 

 

$

7,613,015

 

 

 

$

5,461,094

 

 

 

(1)

Inter-segment purchases from and sales to the Direct-to-Consumer segment are transacted at Wholesale Sales & 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 eliminations of inter-segment sales are reflected in the Wholesale Sales & Ancillary Services segment.

(a)

Includes $8.5 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.

(b)

Includes $26.4 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Revenue by geographic region(1)

 

 

 

 

 

 

 

 

 

United States

 

$

4,668,324

 

 

 

$

3,051,322

 

Europe

 

 

1,486,323

 

 

 

 

1,474,048

 

North America, excluding United States

 

 

1,342,597

 

 

 

 

874,547

 

Asia Pacific

 

 

62,754

 

 

 

 

44,837

 

Africa

 

 

14

 

 

 

 

31

 

Australia

 

 

53,003

 

 

 

 

16,309

 

 

 

$

7,613,015

 

 

 

$

5,461,094

 

 

(1)

Presentation of amounts realigned based on current accounting policy that defines geographic area based on the delivery or settlement location.   The presentation change had no impact on the segments' operations or the Company's consolidated results.

Gross Profit and Gross Margin Percentage

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Gross profit by segment(1)

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

143,540

 

 

 

$

56,938

 

Eliminations and adjustments

 

 

(4,727

)

 

 

 

(30

)

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

138,813

 

 

 

 

56,908

 

Direct-to-Consumer

 

 

71,385

 

 

 

 

10,065

 

Total gross profit

 

$

210,198

 

 

 

$

66,973

 

Gross margin percentage by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

1.909

%

 

 

 

1.038

%

Eliminations and adjustments

 

N/M

 

 

 

N/M

 

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

2.060

%

 

 

 

1.062

%

Direct-to-Consumer

 

 

8.165

%

 

 

 

10.045

%

Weighted average gross margin percentage

 

 

2.761

%

 

 

 

1.226

%

 

NM

Not meaningful.

(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,

2021

 

 

 

June 30,

2020

 

Operating income (expense) by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

6,679

 

 

 

$

(23,878

)

Eliminations

 

 

(175

)

 

 

 

(150

)

Wholesale Sales & Ancillary Services, net of eliminations

 

$

6,504

 

 

 

$

(23,728

)

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services, net of eliminations

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(33,869

)

 

 

$

(27,150

)

Interest income

 

 

10,315

 

 

 

 

9,024

 

Interest expense

 

 

(11,666

)

 

 

 

(10,527

)

Earnings from equity method investments

 

 

15,547

 

 

 

 

4,878

 

Other income, net

 

 

-

 

 

 

 

(10

)

Remeasurement gain on pre-existing equity interest

 

 

26,306

 

 

 

 

-

 

Unrealized (losses) gains on foreign exchange

 

 

(129

)

 

 

 

57

 

 

 

$

6,504

 

 

 

$

(23,728

)

Direct-to-Consumer

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(22,391

)

 

 

$

(7,713

)

Interest expense

 

 

(898

)

 

 

 

-

 

Other expense, net

 

 

-

 

 

 

 

(219

)

 

 

$

(23,289

)

 

 

$

(7,932

)

Secured Lending

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(2,549

)

 

 

$

(1,893

)

Interest income

 

 

8,159

 

 

 

 

12,213

 

Interest expense

 

 

(7,301

)

 

 

 

(8,332

)

Other income, net

 

 

1,079

 

 

 

 

577

 

 

 

$

(612

)

 

 

$

2,565

 

 

 

Net income (loss) before provision for income taxes

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Net income (loss) before provision for income taxes by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

145,317

 

 

 

$

33,180

 

Direct-to-Consumer

 

 

48,096

 

 

 

 

2,133

 

Secured Lending

 

 

(612

)

 

 

 

2,565

 

 

 

$

192,801

 

 

 

$

37,878

 

 

Depreciation and Amortization

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Depreciation and amortization by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(876

)

 

 

$

(1,554

)

Direct-to-Consumer

 

 

(9,561

)

 

 

 

(943

)

Secured Lending

 

 

(351

)

 

 

 

(403

)

 

 

$

(10,788

)

 

 

$

(2,900

)

 

Advertising expense

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Advertising expense by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(343

)

 

 

$

(435

)

Direct-to-Consumer

 

 

(4,493

)

 

 

 

(1,745

)

Secured Lending

 

 

(192

)

 

 

 

(25

)

 

 

$

(5,028

)

 

 

$

(2,205

)

 

Precious metals held under financing arrangements

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Precious metals held under financing arrangements by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

130,766

 

 

 

$

157,609

 

Secured Lending

 

 

23,976

 

 

 

 

20,968

 

 

 

$

154,742

 

 

 

$

178,577

 

 

Inventories

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Inventories by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

402,418

 

 

 

$

289,069

 

Direct-to-Consumer

 

 

53,069

 

 

 

 

8,155

 

Secured Lending

 

 

2,532

 

 

 

 

24,057

 

 

 

$

458,019

 

 

 

$

321,281

 

 

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Inventories by geographic region

 

 

 

 

 

 

 

 

 

United States

 

$

431,732

 

 

 

$

287,960

 

Europe

 

 

9,451

 

 

 

 

19,531

 

North America, excluding United States

 

 

16,633

 

 

 

 

13,735

 

Asia

 

 

203

 

 

 

 

55

 

 

 

$

458,019

 

 

 

$

321,281

 

 

Total Assets

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Assets by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

874,152

 

 

 

$

600,135

 

Eliminations

 

 

(163,850

)

 

 

 

(1,103

)

Wholesale Sales & Ancillary Services, net of eliminations

 

 

710,302

 

 

 

 

599,032

 

Direct-to-Consumer

 

 

335,829

 

 

 

 

18,381

 

Secured Lending

 

 

145,450

 

 

 

 

140,622

 

 

 

$

1,191,581

 

 

 

$

758,035

 

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Assets by geographic region

 

 

 

 

 

 

 

 

 

United States

 

$

1,162,195

 

 

 

$

723,252

 

Europe

 

 

12,550

 

 

 

 

20,993

 

North America, excluding United States

 

 

16,633

 

 

 

 

13,735

 

Asia

 

 

203

 

 

 

 

55

 

 

 

$

1,191,581

 

 

 

$

758,035

 

 

Long-term Assets

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Long-term assets by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

36,174

 

 

 

$

39,090

 

Direct-to-Consumer

 

 

188,208

 

 

 

 

3,607

 

Secured Lending

 

 

2,972

 

 

 

 

1,319

 

 

 

$

227,354

 

 

 

$

44,016

 

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Long-term assets by geographic region

 

 

 

 

 

 

 

 

 

United States

 

$

227,352

 

 

 

$

43,963

 

Europe

 

 

2

 

 

 

 

53

 

 

 

$

227,354

 

 

 

$

44,016

 

 

 

Capital Expenditures for Property, Plant, and Equipment

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Capital expenditures on property, plant, and equipment by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,952

 

 

 

$

747

 

Direct-to-Consumer

 

 

157

 

 

 

 

13

 

Secured Lending

 

 

4

 

 

 

 

76

 

 

 

$

2,113

 

 

 

$

836

 

 

Goodwill and Intangible Assets

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Goodwill by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

8,881

 

 

 

$

8,881

 

Direct-to-Consumer(1)

 

 

92,062

 

 

 

 

 

 

 

$

100,943

 

 

 

$

8,881

 

 

(1)

Direct-to-Consumer segment’s goodwill balance is net of $1.4 million accumulated impairment losses.

 

Intangible assets

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

June 30,

2021

 

 

 

June 30,

2020

 

Intangibles by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

2,831

 

 

 

$

2,907

 

Direct-to-Consumer(1)

 

 

90,802

 

 

 

 

2,067

 

 

 

$

93,633

 

 

 

$

4,974

 

 

 

(1)

Direct-to-Consumer segment’s intangibles balance is net of $1.3 million accumulated impairment losses.