| 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
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|
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in thousands |
|
|
|
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|
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|
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|
|
|
|
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|
Three Months Ended |
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September 30,
2022 |
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|
|
September 30,
2021 |
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|
Revenue by segment(1) |
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|
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|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
$ |
1,808,759 |
|
|
|
$ |
1,940,843 |
|
|
Eliminations of inter-segment sales |
|
|
|
(336,444 |
) |
|
|
|
(440,833 |
) |
|
Wholesale Sales & Ancillary Services, net of eliminations (2) |
|
|
|
1,472,315 |
|
|
|
|
1,500,010 |
|
|
Direct-to-Consumer |
|
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|
428,036 |
|
(a) |
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|
513,961 |
|
(b) |
|
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|
$ |
1,900,351 |
|
|
|
$ |
2,013,971 |
|
|
(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 $0.4 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services and Secured Lending segments.
(b)
Includes $1.1 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services and Secured Lending segments
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in thousands |
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Three Months Ended |
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September 30,
2022 |
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|
September 30,
2021 |
|
Revenue by geographic region |
|
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|
United States |
|
|
$ |
1,226,308 |
|
|
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|
1,173,124 |
|
Europe |
|
|
|
484,209 |
|
|
|
|
494,152 |
|
North America, excluding United States |
|
|
|
186,164 |
|
|
|
|
329,685 |
|
Asia Pacific |
|
|
|
2,446 |
|
|
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|
14,244 |
|
Africa |
|
|
|
- |
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|
|
17 |
|
Australia |
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|
1,224 |
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|
|
|
2,749 |
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|
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|
$ |
1,900,351 |
|
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|
$ |
2,013,971 |
|
Gross Profit and Gross Margin Percentage
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in thousands |
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Three Months Ended |
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September 30,
2022 |
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September 30,
2021 |
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Gross profit by segment(1) |
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Wholesale Sales & Ancillary Services |
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$ |
36,025 |
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|
$ |
28,533 |
|
Eliminations and adjustments |
|
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|
(1,519 |
) |
|
|
|
(2,984 |
) |
Wholesale Sales & Ancillary Services, net of eliminations and adjustments |
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|
34,506 |
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|
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|
25,549 |
|
Direct-to-Consumer, net of eliminations |
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|
42,086 |
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|
30,460 |
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$ |
76,592 |
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$ |
56,009 |
|
Gross margin percentage by segment |
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|
Wholesale Sales & Ancillary Services |
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|
1.992 |
% |
|
|
|
1.470 |
% |
Wholesale Sales & Ancillary Services, net of eliminations and adjustments |
|
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|
2.344 |
% |
|
|
|
1.703 |
% |
Direct-to-Consumer |
|
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|
9.832 |
% |
|
|
|
5.927 |
% |
Weighted average gross margin percentage |
|
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|
4.030 |
% |
|
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|
2.781 |
% |
(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)
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in thousands |
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Three Months Ended |
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September 30,
2022 |
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September 30,
2021 |
|
Operating income (expense) by segment |
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Wholesale Sales & Ancillary Services |
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|
$ |
(5,290 |
) |
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|
$ |
(7,018 |
) |
Eliminations |
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|
(58 |
) |
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|
(60 |
) |
Wholesale Sales & Ancillary Services, net of eliminations |
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|
$ |
(5,348 |
) |
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|
$ |
(7,078 |
) |
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|
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Wholesale Sales & Ancillary Services, net of eliminations |
|
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Selling, general and administrative expenses |
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|
$ |
(7,378 |
) |
|
|
$ |
(8,682 |
) |
Depreciation and amortization expense |
|
|
|
(218 |
) |
|
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|
(232 |
) |
Interest income |
|
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|
2,666 |
|
|
|
|
3,009 |
|
Interest expense |
|
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|
(3,307 |
) |
|
|
|
(2,438 |
) |
Earnings from equity method investments |
|
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|
2,675 |
|
|
|
|
1,489 |
|
Unrealized gains (losses) on foreign exchange |
|
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|
214 |
|
|
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|
(224 |
) |
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|
$ |
(5,348 |
) |
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|
$ |
(7,078 |
) |
Direct-to-Consumer |
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|
Selling, general and administrative expenses |
|
|
$ |
(10,001 |
) |
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|
$ |
(7,539 |
) |
Depreciation and amortization expense |
|
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|
(2,878 |
) |
|
|
|
(7,951 |
) |
Interest expense |
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|
(767 |
) |
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|
(823 |
) |
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|
$ |
(13,646 |
) |
|
|
$ |
(16,313 |
) |
Secured Lending |
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|
|
|
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|
Selling, general and administrative expenses |
|
|
$ |
(405 |
) |
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|
$ |
(456 |
) |
Depreciation and amortization expense |
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|
(88 |
) |
|
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|
(88 |
) |
Interest income |
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|
2,430 |
|
|
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|
2,522 |
|
Interest expense |
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(2,056 |
) |
|
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|
(2,212 |
) |
Earnings from equity method investments |
|
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|
2 |
|
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|
— |
|
Other income, net |
|
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|
527 |
|
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|
409 |
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$ |
410 |
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$ |
175 |
|
Net income (loss) before provision for income taxes
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in thousands |
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Three Months Ended |
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September 30,
2022 |
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September 30,
2021 |
|
Net income before provision for income taxes by segment |
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Wholesale Sales & Ancillary Services |
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|
$ |
29,158 |
|
|
|
$ |
18,471 |
|
Direct-to-Consumer |
|
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|
28,440 |
|
|
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|
14,147 |
|
Secured Lending |
|
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|
410 |
|
|
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|
175 |
|
|
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|
$ |
58,008 |
|
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|
$ |
32,793 |
|
Advertising expense
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in thousands |
|
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|
|
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|
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|
Three Months Ended |
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|
September 30,
2022 |
|
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|
September 30,
2021 |
|
Advertising expense by segment |
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|
Wholesale Sales & Ancillary Services |
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|
$ |
(211 |
) |
|
|
$ |
(103 |
) |
Direct-to-Consumer |
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|
(3,265 |
) |
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|
(2,616 |
) |
Secured Lending |
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|
(69 |
) |
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(54 |
) |
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$ |
(3,545 |
) |
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|
$ |
(2,773 |
) |
Capital Expenditures for Property, Plant, and Equipment
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in thousands |
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Three Months Ended |
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|
September 30,
2022 |
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|
September 30,
2021 |
|
Capital expenditures on property, plant, and equipment by segment |
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Wholesale Sales & Ancillary Services |
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|
$ |
239 |
|
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|
$ |
337 |
|
Direct-to-Consumer |
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|
688 |
|
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|
372 |
|
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|
$ |
927 |
|
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|
$ |
709 |
|
Precious metals held under financing arrangements
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in thousands |
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|
|
|
|
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|
September 30,
2022 |
|
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|
June 30,
2022 |
|
Precious metals held under financing arrangements by segment |
|
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|
Wholesale Sales & Ancillary Services |
|
$ |
31,071 |
|
|
|
$ |
66,242 |
|
Secured Lending |
|
|
18,256 |
|
|
|
|
13,524 |
|
|
|
$ |
49,327 |
|
|
|
$ |
79,766 |
|
Inventories
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in thousands |
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September 30,
2022 |
|
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June 30,
2022 |
|
Inventories by segment |
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|
Wholesale Sales & Ancillary Services |
|
$ |
499,619 |
|
|
|
$ |
648,279 |
|
Direct-to-Consumer |
|
|
103,584 |
|
|
|
|
87,987 |
|
Secured Lending |
|
|
22,293 |
|
|
|
|
4,752 |
|
|
|
$ |
625,496 |
|
|
|
$ |
741,018 |
|
|
|
|
|
|
|
|
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|
in thousands |
|
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|
|
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|
|
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|
September 30,
2022 |
|
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|
June 30,
2022 |
|
Inventories by geographic region |
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|
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|
United States |
|
$ |
586,850 |
|
|
|
$ |
691,212 |
|
North America, excluding United States |
|
|
20,278 |
|
|
|
|
30,534 |
|
Europe |
|
|
15,846 |
|
|
|
|
19,105 |
|
Asia |
|
|
2,447 |
|
|
|
|
22 |
|
Australia |
|
|
75 |
|
|
|
|
145 |
|
|
|
$ |
625,496 |
|
|
|
$ |
741,018 |
|
Total Assets
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|
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|
in thousands |
|
|
|
|
|
|
|
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|
September 30,
2022 |
|
|
|
June 30,
2022 |
|
Assets by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
904,637 |
|
|
|
$ |
1,049,011 |
|
Eliminations |
|
|
(251,343 |
) |
|
|
|
(125,737 |
) |
Wholesale Sales & Ancillary Services, net of eliminations |
|
|
653,294 |
|
|
|
|
923,274 |
|
Direct-to-Consumer |
|
|
431,629 |
|
|
|
|
368,696 |
|
Secured Lending |
|
|
155,484 |
|
|
|
|
150,689 |
|
|
|
$ |
1,240,407 |
|
|
|
$ |
1,442,659 |
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
September 30,
2022 |
|
|
|
June 30,
2022 |
|
Assets by geographic region |
|
|
|
|
|
|
|
United States |
|
$ |
1,195,490 |
|
|
|
$ |
1,390,982 |
|
North America, excluding United States |
|
|
20,278 |
|
|
|
|
30,534 |
|
Europe |
|
|
22,117 |
|
|
|
|
20,976 |
|
Asia |
|
|
2,447 |
|
|
|
|
22 |
|
Australia |
|
|
75 |
|
|
|
|
145 |
|
|
|
$ |
1,240,407 |
|
|
|
$ |
1,442,659 |
|
Long-term Assets
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
September 30,
2022 |
|
|
|
June 30,
2022 |
|
Long-term assets by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
95,514 |
|
|
|
$ |
93,441 |
|
Direct-to-Consumer |
|
|
163,094 |
|
|
|
|
165,469 |
|
Secured Lending |
|
|
2,539 |
|
|
|
|
2,624 |
|
|
|
$ |
261,147 |
|
|
|
$ |
261,534 |
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
September 30,
2022 |
|
|
|
June 30,
2022 |
|
Long-term assets by geographic region |
|
|
|
|
|
|
|
United States |
|
$ |
261,145 |
|
|
|
$ |
261,532 |
|
Europe |
|
|
2 |
|
|
|
|
2 |
|
|
|
$ |
261,147 |
|
|
|
$ |
261,534 |
|
Goodwill and Intangible Assets
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
September 30,
2022 |
|
|
|
June 30,
2022 |
|
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,
2022 |
|
|
|
June 30,
2022 |
|
Intangibles by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
2,735 |
|
|
|
$ |
2,755 |
|
Direct-to-Consumer(1) |
|
|
62,518 |
|
|
|
|
65,210 |
|
|
|
$ |
65,253 |
|
|
|
$ |
67,965 |
|
(1)
Direct-to-Consumer segment’s intangibles balance is net of $1.3 million accumulated impairment losses.
|