Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.23.1
Segments and Geographic Information
9 Months Ended
Mar. 31, 2023
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 March 31,

 

 

 

Nine Months Ended March 31,

 

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

Revenue by segment(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

2,204,422

 

 

 

$

1,966,897

 

 

 

$

5,819,421

 

 

 

$

5,732,207

 

 

Eliminations of inter-segment sales

 

 

(409,282

)

 

 

 

(447,857

)

 

 

 

(1,052,440

)

 

 

 

(1,306,411

)

 

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

 

 

1,795,140

 

 

 

 

1,519,040

 

 

 

 

4,766,981

 

 

 

 

4,425,796

 

 

Direct-to-Consumer

 

 

522,010

 

 (a)

 

 

590,075

 

 (b)

 

 

1,400,225

 

 (c)

 

 

1,643,654

 

 (d)

 

$

2,317,150

 

 

 

$

2,109,115

 

 

 

$

6,167,206

 

 

 

$

6,069,450

 

 

 

(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 $2.1 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(b)
Includes $0.4 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(c)
Includes $2.7 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(d)
Includes $2.0 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

Nine Months Ended March 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue by geographic region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,365,078

 

 

 

$

1,256,092

 

 

 

$

3,686,828

 

 

 

$

3,631,974

 

Europe

 

 

719,519

 

 

 

 

495,293

 

 

 

 

1,836,949

 

 

 

 

1,542,293

 

North America, excluding United States

 

 

218,810

 

 

 

 

342,392

 

 

 

 

613,454

 

 

 

 

850,681

 

Asia Pacific

 

 

13,065

 

 

 

 

9,592

 

 

 

 

22,846

 

 

 

 

34,586

 

Africa

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17

 

Australia

 

 

678

 

 

 

 

5,746

 

 

 

 

7,129

 

 

 

 

9,899

 

 

$

2,317,150

 

 

 

$

2,109,115

 

 

 

$

6,167,206

 

 

 

$

6,069,450

 

Gross Profit and Gross Margin Percentage

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

Nine Months Ended March 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Gross profit by segment(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

25,943

 

 

 

$

32,002

 

 

 

$

93,236

 

 

 

$

85,474

 

Eliminations and adjustments

 

 

6,343

 

 

 

 

(1,463

)

 

 

 

972

 

 

 

 

(445

)

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

32,286

 

 

 

 

30,539

 

 

 

 

94,208

 

 

 

 

85,029

 

Direct-to-Consumer, net of eliminations

 

 

43,212

 

 

 

 

41,544

 

 

 

 

121,851

 

 

 

 

108,986

 

 

$

75,498

 

 

 

$

72,083

 

 

 

$

216,059

 

 

 

$

194,015

 

Gross margin percentage by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

1.177

%

 

 

 

1.627

%

 

 

 

1.602

%

 

 

 

1.491

%

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

1.799

%

 

 

 

2.010

%

 

 

 

1.976

%

 

 

 

1.921

%

Direct-to-Consumer

 

 

8.278

%

 

 

 

7.040

%

 

 

 

8.702

%

 

 

 

6.631

%

Consolidated gross margin percentage

 

 

3.258

%

 

 

 

3.418

%

 

 

 

3.503

%

 

 

 

3.197

%

 

(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 March 31,

 

 

 

Nine Months Ended March 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Operating income (expense) by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(14,990

)

 

 

$

(9,963

)

 

 

$

(26,889

)

 

 

$

(24,485

)

Eliminations

 

 

(64

)

 

 

 

(60

)

 

 

 

(178

)

 

 

 

(191

)

Wholesale Sales & Ancillary Services, net of eliminations

 

$

(15,054

)

 

 

$

(10,023

)

 

 

$

(27,067

)

 

 

$

(24,676

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services, net of eliminations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(12,428

)

 

 

$

(11,203

)

 

 

$

(29,377

)

 

 

$

(28,748

)

Depreciation and amortization expense

 

 

(247

)

 

 

 

(214

)

 

 

 

(703

)

 

 

 

(673

)

Interest income

 

 

3,601

 

 

 

 

2,300

 

 

 

 

9,081

 

 

 

 

7,952

 

Interest expense

 

 

(5,979

)

 

 

 

(2,379

)

 

 

 

(13,696

)

 

 

 

(7,396

)

Earnings (losses) from equity method investments

 

 

(72

)

 

 

 

1,608

 

 

 

 

7,272

 

 

 

 

4,317

 

Other income, net

 

 

36

 

 

 

 

 

 

 

 

106

 

 

 

 

 

Unrealized gains (losses) on foreign exchange

 

 

35

 

 

 

 

(135

)

 

 

 

250

 

 

 

 

(128

)

 

$

(15,054

)

 

 

$

(10,023

)

 

 

$

(27,067

)

 

 

$

(24,676

)

Direct-to-Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(10,900

)

 

 

$

(8,912

)

 

 

$

(31,625

)

 

 

$

(25,906

)

Depreciation and amortization expense

 

 

(3,005

)

 

 

 

(7,246

)

 

 

 

(8,817

)

 

 

 

(23,140

)

Interest expense

 

 

(1,287

)

 

 

 

(703

)

 

 

 

(3,020

)

 

 

 

(2,062

)

Other expense, net

 

 

 

 

 

 

(50

)

 

 

 

(12

)

 

 

 

(50

)

 

$

(15,192

)

 

 

$

(16,911

)

 

 

$

(43,474

)

 

 

$

(51,158

)

Secured Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(513

)

 

 

$

(379

)

 

 

$

(1,436

)

 

 

$

(1,230

)

Depreciation and amortization expense

 

 

(88

)

 

 

 

(88

)

 

 

 

(264

)

 

 

 

(264

)

Interest income

 

 

2,486

 

 

 

 

3,043

 

 

 

 

7,086

 

 

 

 

8,173

 

Interest expense

 

 

(1,971

)

 

 

 

(2,347

)

 

 

 

(5,887

)

 

 

 

(6,839

)

Earnings from equity method investments

 

 

2

 

 

 

 

 

 

 

 

4

 

 

 

 

 

Other income, net

 

 

605

 

 

 

 

543

 

 

 

 

1,907

 

 

 

 

1,385

 

 

$

521

 

 

 

$

772

 

 

 

$

1,410

 

 

 

$

1,225

 

Net Income Before Provision for Income Taxes

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

Nine Months Ended March 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income before provision for income taxes by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

17,232

 

 

 

$

20,516

 

 

 

$

67,141

 

 

 

$

60,353

 

Direct-to-Consumer

 

 

28,020

 

 

 

 

24,633

 

 

 

 

78,377

 

 

 

 

57,828

 

Secured Lending

 

 

521

 

 

 

 

772

 

 

 

 

1,410

 

 

 

 

1,225

 

 

$

45,773

 

 

 

$

45,921

 

 

 

$

146,928

 

 

 

$

119,406

 

Advertising Expense

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

Nine Months Ended March 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Advertising expense by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

384

 

 

 

$

190

 

 

 

$

975

 

 

 

$

433

 

Direct-to-Consumer

 

 

3,424

 

 

 

 

3,077

 

 

 

 

10,455

 

 

 

 

8,493

 

Secured Lending

 

 

56

 

 

 

 

52

 

 

 

 

184

 

 

 

 

154

 

 

$

3,864

 

 

 

$

3,319

 

 

 

$

11,614

 

 

 

$

9,080

 

Capital Expenditures for Property, Plant, and Equipment

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

Nine Months Ended March 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Capital expenditures for property, plant, and equipment by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

313

 

 

 

$

183

 

 

 

$

1,827

 

 

 

$

812

 

Direct-to-Consumer

 

 

252

 

 

 

 

296

 

 

 

 

1,400

 

 

 

 

1,294

 

 

$

565

 

 

 

$

479

 

 

 

$

3,227

 

 

 

$

2,106

 

 

Precious Metals Held Under Financing Arrangements

in thousands

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

June 30, 2022

 

Precious metals held under financing arrangements by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

6,149

 

 

 

$

66,242

 

Secured Lending

 

 

17,865

 

 

 

 

13,524

 

 

 

$

24,014

 

 

 

$

79,766

 

Inventories

in thousands

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

June 30, 2022

 

Inventories by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

799,071

 

 

 

$

648,279

 

Direct-to-Consumer

 

 

118,341

 

 

 

 

87,987

 

Secured Lending

 

 

50,106

 

 

 

 

4,752

 

 

$

967,518

 

 

 

$

741,018

 

in thousands

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

June 30, 2022

 

Inventories by geographic region

 

 

 

 

 

 

 

United States

 

$

914,709

 

 

 

$

691,212

 

North America, excluding United States

 

 

25,624

 

 

 

 

30,534

 

Europe

 

 

21,265

 

 

 

 

19,105

 

Asia

 

 

5,831

 

 

 

 

22

 

Australia

 

 

89

 

 

 

 

145

 

 

 

$

967,518

 

 

 

$

741,018

 

Total Assets

in thousands

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

June 30, 2022

 

Total assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,163,754

 

 

 

$

1,049,011

 

Eliminations

 

 

(237,501

)

 

 

 

(125,737

)

Wholesale Sales & Ancillary Services, net of eliminations

 

 

926,253

 

 

 

 

923,274

 

Direct-to-Consumer

 

 

496,965

 

 

 

 

368,696

 

Secured Lending

 

 

169,685

 

 

 

 

150,689

 

 

$

1,592,903

 

 

 

$

1,442,659

 

 

in thousands

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

June 30, 2022

 

Total assets by geographic region

 

 

 

 

 

 

 

United States

 

$

1,535,791

 

 

 

$

1,390,982

 

North America, excluding United States

 

 

25,624

 

 

 

 

30,534

 

Europe

 

 

25,568

 

 

 

 

20,976

 

Asia

 

 

5,831

 

 

 

 

22

 

Australia

 

 

89

 

 

 

 

145

 

 

$

1,592,903

 

 

 

$

1,442,659

 

Long-term Assets

in thousands

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

June 30, 2022

 

Long-term assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

104,339

 

 

 

$

93,441

 

Direct-to-Consumer

 

 

161,858

 

 

 

 

165,469

 

Secured Lending

 

 

2,364

 

 

 

 

2,624

 

 

$

268,561

 

 

 

$

261,534

 

 

in thousands

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

June 30, 2022

 

Long-term assets by geographic region

 

 

 

 

 

 

 

United States

 

$

268,559

 

 

 

$

261,532

 

Europe

 

 

2

 

 

 

 

2

 

 

$

268,561

 

 

 

$

261,534

 

 

Goodwill

in thousands

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

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

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

June 30, 2022

 

Intangible assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

2,707

 

 

 

$

2,755

 

Direct-to-Consumer(1)

 

 

61,574

 

 

 

 

65,210

 

 

 

$

64,281

 

 

 

$

67,965

 

 

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