Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.22.4
Segments and Geographic Information
6 Months Ended
Dec. 31, 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 (“ASC 280”), 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

 

Revenue by segment(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,806,240

 

 

 

$

1,824,467

 

 

 

$

3,614,999

 

 

 

$

3,765,310

 

 

Eliminations of inter-segment sales

 

 

(306,714

)

 

 

 

(417,721

)

 

 

 

(643,158

)

 

 

 

(858,554

)

 

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

 

 

1,499,526

 

 

 

 

1,406,746

 

 

 

 

2,971,841

 

 

 

 

2,906,756

 

 

Direct-to-Consumer

 

 

450,179

 

(a)

 

 

539,618

 

(b)

 

 

878,215

 

(c)

 

 

1,053,579

 

(d)

 

 

$

1,949,705

 

 

 

$

1,946,364

 

 

 

$

3,850,056

 

 

 

$

3,960,335

 

 

 

(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 $0.2 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(b)
Includes $0.5 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(c)
Includes $0.6 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(d)
Includes $1.6 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

Revenue by geographic region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,095,442

 

 

 

$

1,202,758

 

 

 

$

2,321,750

 

 

 

 

2,375,882

 

Europe

 

 

633,221

 

 

 

 

552,848

 

 

 

 

1,117,430

 

 

 

 

1,047,000

 

North America, excluding United States

 

 

208,480

 

 

 

 

178,604

 

 

 

 

394,644

 

 

 

 

508,289

 

Asia Pacific

 

 

7,335

 

 

 

 

10,750

 

 

 

 

9,781

 

 

 

 

24,994

 

Africa

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17

 

Australia

 

 

5,227

 

 

 

 

1,404

 

 

 

 

6,451

 

 

 

 

4,153

 

 

 

$

1,949,705

 

 

 

$

1,946,364

 

 

 

$

3,850,056

 

 

 

$

3,960,335

 

Gross Profit and Gross Margin Percentage

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

Gross profit by segment(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

31,268

 

 

 

$

24,939

 

 

 

$

67,293

 

 

 

$

53,472

 

Eliminations and adjustments

 

 

(3,852

)

 

 

 

4,002

 

 

 

 

(5,371

)

 

 

 

1,018

 

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

27,416

 

 

 

 

28,941

 

 

 

 

61,922

 

 

 

 

54,490

 

Direct-to-Consumer, net of eliminations

 

 

36,553

 

 

 

 

36,982

 

 

 

 

78,639

 

 

 

 

67,442

 

 

 

$

63,969

 

 

 

$

65,923

 

 

 

$

140,561

 

 

 

$

121,932

 

Gross margin percentage by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

1.731

%

 

 

 

1.367

%

 

 

 

1.861

%

 

 

 

1.420

%

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

1.828

%

 

 

 

2.057

%

 

 

 

2.084

%

 

 

 

1.875

%

Direct-to-Consumer

 

 

8.120

%

 

 

 

6.853

%

 

 

 

8.954

%

 

 

 

6.401

%

Weighted average gross margin percentage

 

 

3.281

%

 

 

 

3.387

%

 

 

 

3.651

%

 

 

 

3.079

%

 

(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

 

 

 

Six Months Ended

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

Operating income (expense) by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(6,609

)

 

 

$

(7,504

)

 

 

$

(11,899

)

 

 

$

(14,522

)

Eliminations

 

 

(56

)

 

 

 

(71

)

 

 

 

(114

)

 

 

 

(131

)

Wholesale Sales & Ancillary Services, net of eliminations

 

$

(6,665

)

 

 

$

(7,575

)

 

 

$

(12,013

)

 

 

$

(14,653

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services, net of eliminations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(9,571

)

 

 

$

(8,863

)

 

 

$

(16,949

)

 

 

$

(17,545

)

Depreciation and amortization expense

 

 

(238

)

 

 

 

(227

)

 

 

 

(456

)

 

 

 

(459

)

Interest income

 

 

2,814

 

 

 

 

2,643

 

 

 

 

5,480

 

 

 

 

5,652

 

Interest expense

 

 

(4,410

)

 

 

 

(2,579

)

 

 

 

(7,717

)

 

 

 

(5,017

)

Earnings from equity method investments

 

 

4,669

 

 

 

 

1,220

 

 

 

 

7,344

 

 

 

 

2,709

 

Other income, net

 

 

70

 

 

 

 

 

 

 

 

70

 

 

 

 

 

Unrealized gains on foreign exchange

 

 

1

 

 

 

 

231

 

 

 

 

215

 

 

 

 

7

 

 

 

$

(6,665

)

 

 

$

(7,575

)

 

 

$

(12,013

)

 

 

$

(14,653

)

Direct-to-Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(10,724

)

 

 

$

(9,455

)

 

 

$

(20,725

)

 

 

$

(16,994

)

Depreciation and amortization expense

 

 

(2,934

)

 

 

 

(7,943

)

 

 

 

(5,812

)

 

 

 

(15,894

)

Interest expense

 

 

(966

)

 

 

 

(536

)

 

 

 

(1,733

)

 

 

 

(1,359

)

Other expense, net

 

 

(12

)

 

 

 

 

 

 

 

(12

)

 

 

 

 

 

 

$

(14,636

)

 

 

$

(17,934

)

 

 

$

(28,282

)

 

 

$

(34,247

)

Secured Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(518

)

 

 

$

(395

)

 

 

$

(923

)

 

 

$

(851

)

Depreciation and amortization expense

 

 

(88

)

 

 

 

(88

)

 

 

 

(176

)

 

 

 

(176

)

Interest income

 

 

2,170

 

 

 

 

2,608

 

 

 

 

4,600

 

 

 

 

5,130

 

Interest expense

 

 

(1,860

)

 

 

 

(2,280

)

 

 

 

(3,916

)

 

 

 

(4,492

)

Earnings from equity method investments

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

Other income, net

 

 

775

 

 

 

 

433

 

 

 

 

1,302

 

 

 

 

842

 

 

 

$

479

 

 

 

$

278

 

 

 

$

889

 

 

 

$

453

 

 

Net income (loss) before provision for income taxes

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

Net income before provision for income taxes by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

20,751

 

 

 

$

21,366

 

 

 

$

49,909

 

 

 

$

39,837

 

Direct-to-Consumer

 

 

21,917

 

 

 

 

19,048

 

 

 

 

50,357

 

 

 

 

33,195

 

Secured Lending

 

 

479

 

 

 

 

278

 

 

 

 

889

 

 

 

 

453

 

 

 

$

43,147

 

 

 

$

40,692

 

 

 

$

101,155

 

 

 

$

73,485

 

Advertising expense

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

Advertising expense by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(380

)

 

 

$

(140

)

 

 

$

(591

)

 

 

$

(243

)

Direct-to-Consumer

 

 

(3,766

)

 

 

 

(2,800

)

 

 

 

(7,031

)

 

 

 

(5,416

)

Secured Lending

 

 

(59

)

 

 

 

(48

)

 

 

 

(128

)

 

 

 

(102

)

 

 

$

(4,205

)

 

 

$

(2,988

)

 

 

$

(7,750

)

 

 

$

(5,761

)

 

Capital Expenditures for Property, Plant, and Equipment

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

 

 

December 31,
2022

 

 

 

December 31,
2021

 

Capital expenditures on property, plant, and equipment by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,275

 

 

 

$

292

 

 

 

$

1,514

 

 

 

$

629

 

Direct-to-Consumer

 

 

460

 

 

 

 

626

 

 

 

 

1,148

 

 

 

 

998

 

 

 

$

1,735

 

 

 

$

918

 

 

 

$

2,662

 

 

 

$

1,627

 

Precious metals held under financing arrangements

in thousands

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

June 30,
2022

 

Precious metals held under financing arrangements by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

27,537

 

 

 

$

66,242

 

Secured Lending

 

 

29,750

 

 

 

 

13,524

 

 

 

$

57,287

 

 

 

$

79,766

 

Inventories

in thousands

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

June 30,
2022

 

Inventories by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

808,036

 

 

 

$

648,279

 

Direct-to-Consumer

 

 

90,971

 

 

 

 

87,987

 

Secured Lending

 

 

23,545

 

 

 

 

4,752

 

 

 

$

922,552

 

 

 

$

741,018

 

 

in thousands

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

June 30,
2022

 

Inventories by geographic region

 

 

 

 

 

 

 

United States

 

$

868,571

 

 

 

$

691,212

 

North America, excluding United States

 

 

42,651

 

 

 

 

30,534

 

Europe

 

 

9,964

 

 

 

 

19,105

 

Asia

 

 

1,284

 

 

 

 

22

 

Australia

 

 

82

 

 

 

 

145

 

 

 

$

922,552

 

 

 

$

741,018

 

 

Total Assets

in thousands

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

June 30,
2022

 

Assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,199,311

 

 

 

$

1,049,011

 

Eliminations

 

 

(202,721

)

 

 

 

(125,737

)

Wholesale Sales & Ancillary Services, net of eliminations

 

 

996,590

 

 

 

 

923,274

 

Direct-to-Consumer

 

 

412,730

 

 

 

 

368,696

 

Secured Lending

 

 

173,058

 

 

 

 

150,689

 

 

 

$

1,582,378

 

 

 

$

1,442,659

 

 

 

in thousands

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

June 30,
2022

 

Assets by geographic region

 

 

 

 

 

 

 

United States

 

$

1,526,139

 

 

 

$

1,390,982

 

North America, excluding United States

 

 

42,651

 

 

 

 

30,534

 

Europe

 

 

12,222

 

 

 

 

20,976

 

Asia

 

 

1,284

 

 

 

 

22

 

Australia

 

 

82

 

 

 

 

145

 

 

 

$

1,582,378

 

 

 

$

1,442,659

 

Long-term Assets

 

in thousands

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

June 30,
2022

 

Long-term assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

99,639

 

 

 

$

93,441

 

Direct-to-Consumer

 

 

164,860

 

 

 

 

165,469

 

Secured Lending

 

 

2,449

 

 

 

 

2,624

 

 

 

$

266,948

 

 

 

$

261,534

 

 

in thousands

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

June 30,
2022

 

Long-term assets by geographic region

 

 

 

 

 

 

 

United States

 

$

266,946

 

 

 

$

261,532

 

Europe

 

 

2

 

 

 

 

2

 

 

 

$

266,948

 

 

 

$

261,534

 

 

Goodwill and Intangible Assets

 

in thousands

 

 

 

 

 

 

 

 

 

December 31,
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

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

 

June 30,
2022

 

Intangibles by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

2,726

 

 

 

$

2,755

 

Direct-to-Consumer(1)

 

 

64,274

 

 

 

 

65,210

 

 

 

$

67,000

 

 

 

$

67,965

 

 

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