Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.21.2
Segments and Geographic Information
3 Months Ended
Sep. 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) Direct-to-Consumer (formerly known as Direct Sales), and (iii) Secured Lending. 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

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

September 30,

2021

 

 

 

September 30,

2020

 

 

Revenue by segment(1)

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,940,843

 

 

 

$

1,834,229

 

 

Eliminations of inter-segment sales

 

 

(440,833

)

 

 

 

(20,521

)

 

Wholesale Sales & Ancillary Services, net of eliminations (2)

 

 

1,500,010

 

 

 

 

1,813,708

 

 

Direct-to-Consumer

 

 

513,961

 

(a)

 

 

52,408

 

(b)

 

 

$

2,013,971

 

 

 

$

1,866,116

 

 

 

(1)

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.

(2)

The eliminations of inter-segment sales are reflected in the Wholesale Sales & Ancillary Services segment.

(a)

Includes $1.1 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.

(b)

Includes $4.7 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30,

2021

 

 

 

September 30,

2020

 

Revenue by geographic region(1)

 

 

 

 

 

 

 

 

 

United States

 

$

1,173,124

 

 

 

$

1,164,691

 

Europe

 

 

494,152

 

 

 

 

404,691

 

North America, excluding United States

 

 

329,685

 

 

 

 

266,748

 

Asia Pacific

 

 

14,244

 

 

 

 

15,165

 

Africa

 

 

17

 

 

 

 

-

 

Australia

 

 

2,749

 

 

 

 

14,821

 

 

 

$

2,013,971

 

 

 

$

1,866,116

 

 

(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 condensed consolidated results.

Gross Profit and Gross Margin Percentage

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30,

2021

 

 

 

September 30,

2020

 

Gross profit by segment(1)

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

28,533

 

 

 

$

30,581

 

Eliminations and adjustments

 

 

(2,984

)

 

 

 

41

 

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

25,549

 

 

 

 

30,622

 

Direct-to-Consumer, net of eliminations

 

 

30,460

 

 

 

 

5,523

 

 

 

$

56,009

 

 

 

$

36,145

 

Gross margin percentage by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

1.470

%

 

 

 

1.667

%

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

1.703

%

 

 

 

1.688

%

Direct-to-Consumer

 

 

5.927

%

 

 

 

10.538

%

Weighted average gross margin percentage

 

 

2.781

%

 

 

 

1.937

%

 

 

(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

 

 

 

September 30,

2021

 

 

 

September 30,

2020

 

Operating income (expense) by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(7,018

)

 

 

$

(4,047

)

Eliminations

 

 

(60

)

 

 

 

(41

)

Wholesale Sales & Ancillary Services, net of eliminations

 

$

(7,078

)

 

 

$

(4,088

)

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services, net of eliminations

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(8,682

)

 

 

$

(7,402

)

Depreciation and amortization expense

 

 

(232

)

 

 

 

(205

)

Interest income

 

 

3,009

 

 

 

 

2,438

 

Interest expense

 

 

(2,438

)

 

 

 

(2,948

)

Earnings from equity method investments

 

 

1,489

 

 

 

 

4,126

 

Unrealized (losses) gains on foreign exchange

 

 

(224

)

 

 

 

(97

)

 

 

$

(7,078

)

 

 

$

(4,088

)

Direct-to-Consumer

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(7,539

)

 

 

$

(1,695

)

Depreciation and amortization expense

 

 

(7,951

)

 

 

 

(208

)

Interest expense

 

 

(823

)

 

 

 

-

 

 

 

$

(16,313

)

 

 

$

(1,903

)

Secured Lending

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(456

)

 

 

$

(408

)

Depreciation and amortization expense

 

 

(88

)

 

 

 

(88

)

Interest income

 

 

2,522

 

 

 

 

1,545

 

Interest expense

 

 

(2,212

)

 

 

 

(1,345

)

Other income, net

 

 

409

 

 

 

 

359

 

 

 

$

175

 

 

 

$

63

 

 

Net income (loss) before provision for income taxes

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30,

2021

 

 

 

September 30,

2020

 

Net income before provision for income taxes by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

18,471

 

 

 

$

26,534

 

Direct-to-Consumer

 

 

14,147

 

 

 

 

3,620

 

Secured Lending

 

 

175

 

 

 

 

63

 

 

 

$

32,793

 

 

 

$

30,217

 

Advertising expense

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30,

2021

 

 

 

September 30,

2020

 

Advertising expense by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(103

)

 

 

$

(65

)

Direct-to-Consumer

 

 

(2,616

)

 

 

 

(610

)

Secured Lending

 

 

(54

)

 

 

 

(25

)

 

 

$

(2,773

)

 

 

$

(700

)

 

 

Precious metals held under financing arrangements

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Precious metals held under financing arrangements by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

112,770

 

 

 

$

130,766

 

Secured Lending

 

 

17,848

 

 

 

 

23,976

 

 

 

$

130,618

 

 

 

$

154,742

 

 

Inventories

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Inventories by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

476,407

 

 

 

$

402,418

 

Direct-to-Consumer

 

 

86,623

 

 

 

 

53,069

 

Secured Lending

 

 

2,675

 

 

 

 

2,532

 

 

 

$

565,705

 

 

 

$

458,019

 

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Inventories by geographic region

 

 

 

 

 

 

 

 

 

United States

 

$

535,180

 

 

 

$

431,732

 

Europe

 

 

11,590

 

 

 

 

9,451

 

North America, excluding United States

 

 

18,645

 

 

 

 

16,633

 

Asia

 

 

290

 

 

 

 

203

 

 

 

$

565,705

 

 

 

$

458,019

 

 

Total Assets

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Assets by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

859,443

 

 

 

$

874,152

 

Eliminations

 

 

(84,882

)

 

 

 

(163,850

)

Wholesale Sales & Ancillary Services, net of eliminations

 

 

774,561

 

 

 

 

710,302

 

Direct-to-Consumer

 

 

332,569

 

 

 

 

335,829

 

Secured Lending

 

 

140,152

 

 

 

 

145,450

 

 

 

$

1,247,282

 

 

 

$

1,191,581

 

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Assets by geographic region

 

 

 

 

 

 

 

 

 

United States

 

$

1,215,277

 

 

 

$

1,162,195

 

Europe

 

 

13,070

 

 

 

 

12,550

 

North America, excluding United States

 

 

18,645

 

 

 

 

16,633

 

Asia

 

 

290

 

 

 

 

203

 

 

 

$

1,247,282

 

 

 

$

1,191,581

 

 

Long-term Assets

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Long-term assets by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

47,360

 

 

 

$

36,174

 

Direct-to-Consumer

 

 

182,402

 

 

 

 

188,208

 

Secured Lending

 

 

2,884

 

 

 

 

2,972

 

 

 

$

232,646

 

 

 

$

227,354

 

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Long-term assets by geographic region

 

 

 

 

 

 

 

 

 

United States

 

$

232,644

 

 

 

$

227,352

 

Europe

 

 

2

 

 

 

 

2

 

 

 

$

232,646

 

 

 

$

227,354

 

 

Capital Expenditures for Property, Plant, and Equipment

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30,

2021

 

 

 

September 30,

2020

 

Capital expenditures on property, plant, and equipment by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

337

 

 

 

$

473

 

Direct-to-Consumer

 

 

372

 

 

 

 

3

 

 

 

$

709

 

 

 

$

476

 

Goodwill and Intangible Assets

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Goodwill by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

8,881

 

 

 

$

8,881

 

Direct-to-Consumer(1)

 

 

92,062

 

 

 

 

92,062

 

 

 

$

100,943

 

 

 

$

100,943

 

 

(1)

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

 

Intangible assets

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

September 30,

2021

 

 

 

June 30,

2021

 

Intangibles by segment

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

2,812

 

 

 

$

2,831

 

Direct-to-Consumer(1)

 

 

82,949

 

 

 

 

90,802

 

 

 

$

85,761

 

 

 

$

93,633

 

 

(1)

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