Annual report pursuant to Section 13 and 15(d)

Segments and Geographic Information

v3.22.2.2
Segments and Geographic Information
12 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segments and Geographic Information

19. SEGMENTS AND GEOGRAPHIC INFORMATION

The Company evaluates segment reporting in accordance with Segment Reporting Topic 280 of the ASC, 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, (ii) Direct-to-Consumer, 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

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

 

Revenue by segment(1)

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

$

7,647,950

 

 

 

$

7,520,111

 

 

Eliminations of inter-segment sales

 

 

 

(1,623,208

)

 

 

 

(781,404

)

 

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

 

 

 

6,024,742

 

 

 

 

6,738,707

 

 

Direct-to-Consumer

 

 

 

2,134,512

 

(a)

 

 

874,308

 

(b)

 

 

 

$

8,159,254

 

 

 

$

7,613,015

 

 

 

(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 $2.4 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(b)
Includes $8.5 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Revenue by geographic region

 

 

 

 

 

 

 

 

United States

 

 

$

5,215,858

 

 

 

 

4,668,324

 

Europe

 

 

 

1,998,105

 

 

 

 

1,486,323

 

North America, excluding United States

 

 

 

893,575

 

 

 

 

1,342,597

 

Asia Pacific

 

 

 

39,863

 

 

 

 

62,754

 

Africa

 

 

 

17

 

 

 

 

14

 

Australia

 

 

 

11,836

 

 

 

 

53,003

 

 

 

 

$

8,159,254

 

 

 

$

7,613,015

 

Gross Profit and Gross Margin Percentage

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Gross profit by segment(1)

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

$

113,316

 

 

 

$

143,540

 

Eliminations and adjustments

 

 

 

777

 

 

 

 

(4,727

)

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

 

114,093

 

 

 

 

138,813

 

Direct-to-Consumer, net of eliminations

 

 

 

147,672

 

 

 

 

71,385

 

 

 

 

$

261,765

 

 

 

$

210,198

 

Gross margin percentage by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

 

1.482

%

 

 

 

1.909

%

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

 

1.894

%

 

 

 

2.060

%

Direct-to-Consumer

 

 

 

6.918

%

 

 

 

8.165

%

Weighted average gross margin percentage

 

 

 

3.208

%

 

 

 

2.761

%

 

(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,
2022

 

 

 

June 30,
2021

 

Operating income (expense) by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

$

(34,004

)

 

 

$

6,679

 

Eliminations

 

 

 

(254

)

 

 

 

(175

)

Wholesale Sales & Ancillary Services, net of eliminations

 

 

$

(34,258

)

 

 

$

6,504

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services, net of eliminations

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

$

(40,844

)

 

 

$

(32,992

)

Depreciation and amortization expense

 

 

 

(891

)

 

 

 

(877

)

Interest income

 

 

 

10,706

 

 

 

 

10,315

 

Interest expense

 

 

 

(10,034

)

 

 

 

(11,666

)

Earnings from equity method investments

 

 

 

6,903

 

 

 

 

15,547

 

Remeasurement gain on pre-existing equity interest

 

 

 

 

 

 

 

26,306

 

Unrealized losses on foreign exchange

 

 

 

(98

)

 

 

 

(129

)

 

 

 

$

(34,258

)

 

 

$

6,504

 

Direct-to-Consumer

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

$

(34,152

)

 

 

$

(12,830

)

Depreciation and amortization expense

 

 

 

(26,057

)

 

 

 

(9,561

)

Interest expense

 

 

 

(2,958

)

 

 

 

(898

)

Other expense, net

 

 

 

(229

)

 

 

 

 

 

 

 

$

(63,396

)

 

 

$

(23,289

)

Secured Lending

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

$

(1,622

)

 

 

$

(2,198

)

Depreciation and amortization expense

 

 

 

(352

)

 

 

 

(351

)

Interest income

 

 

 

11,094

 

 

 

 

8,159

 

Interest expense

 

 

 

(9,000

)

 

 

 

(7,301

)

Earnings from equity method investments

 

 

 

4

 

 

 

 

 

Other income, net

 

 

 

2,182

 

 

 

 

1,079

 

 

 

 

$

2,306

 

 

 

$

(612

)

 

Net income (loss) before provision for income taxes

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Net income before provision for income taxes by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

$

79,835

 

 

 

$

145,317

 

Direct-to-Consumer

 

 

 

84,276

 

 

 

 

48,096

 

Secured Lending

 

 

 

2,306

 

 

 

 

(612

)

 

 

 

$

166,417

 

 

 

$

192,801

 

Advertising expense

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Advertising expense by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

$

(627

)

 

 

$

(343

)

Direct-to-Consumer

 

 

 

(11,353

)

 

 

 

(4,493

)

Secured Lending

 

 

 

(198

)

 

 

 

(192

)

 

 

 

$

(12,178

)

 

 

$

(5,028

)

 

Capital Expenditures for Property, Plant, and Equipment

in thousands

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Capital expenditures on property, plant, and equipment by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

$

1,048

 

 

 

$

1,952

 

Direct-to-Consumer

 

 

 

1,831

 

 

 

 

157

 

Secured Lending

 

 

 

 

 

 

 

4

 

 

 

 

$

2,879

 

 

 

$

2,113

 

Precious metals held under financing arrangements

in thousands

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Precious metals held under financing arrangements by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

66,242

 

 

 

$

130,766

 

Secured Lending

 

 

13,524

 

 

 

 

23,976

 

 

 

$

79,766

 

 

 

$

154,742

 

Inventories

in thousands

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Inventories by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

648,279

 

 

 

$

402,418

 

Direct-to-Consumer

 

 

87,987

 

 

 

 

53,069

 

Secured Lending

 

 

4,752

 

 

 

 

2,532

 

 

 

$

741,018

 

 

 

$

458,019

 

 

in thousands

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Inventories by geographic region

 

 

 

 

 

 

 

United States

 

$

691,212

 

 

 

$

431,732

 

North America, excluding United States

 

 

30,534

 

 

 

 

16,633

 

Europe

 

 

19,105

 

 

 

 

9,451

 

Asia

 

 

22

 

 

 

 

203

 

Australia

 

 

145

 

 

 

 

 

 

 

$

741,018

 

 

 

$

458,019

 

 

Total Assets

in thousands

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,049,011

 

 

 

$

874,152

 

Eliminations

 

 

(125,737

)

 

 

 

(163,850

)

Wholesale Sales & Ancillary Services, net of eliminations

 

 

923,274

 

 

 

 

710,302

 

Direct-to-Consumer

 

 

368,696

 

 

 

 

335,829

 

Secured Lending

 

 

150,689

 

 

 

 

145,450

 

 

 

$

1,442,659

 

 

 

$

1,191,581

 

 

in thousands

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Assets by geographic region

 

 

 

 

 

 

 

United States

 

$

1,390,982

 

 

 

$

1,162,195

 

North America, excluding United States

 

 

30,534

 

 

 

 

16,633

 

Europe

 

 

20,976

 

 

 

 

12,550

 

Asia

 

 

22

 

 

 

 

203

 

Australia

 

 

145

 

 

 

 

 

 

 

$

1,442,659

 

 

 

$

1,191,581

 

 

Long-term Assets

 

in thousands

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Long-term assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

93,441

 

 

 

$

36,174

 

Direct-to-Consumer

 

 

165,469

 

 

 

 

188,208

 

Secured Lending

 

 

2,624

 

 

 

 

2,972

 

 

 

$

261,534

 

 

 

$

227,354

 

 

in thousands

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Long-term assets by geographic region

 

 

 

 

 

 

 

United States

 

$

261,532

 

 

 

$

227,352

 

Europe

 

 

2

 

 

 

 

2

 

 

 

$

261,534

 

 

 

$

227,354

 

 

Goodwill and Intangible Assets

 

in thousands

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

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

 

 

 

 

 

 

 

 

 

June 30,
2022

 

 

 

June 30,
2021

 

Intangibles by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

2,755

 

 

 

$

2,831

 

Direct-to-Consumer(1)

 

 

65,210

 

 

 

 

90,802

 

 

 

$

67,965

 

 

 

$

93,633

 

 

(1)
Direct-to-Consumer segment’s intangibles balance is net of $1.3 million accumulated impairment losses.