| 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
|
%
|
|
(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.
|
|