Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.23.3
Segments and Geographic Information
3 Months Ended
Sep. 30, 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 September 30,

 

 

2023

 

2022

Revenue by segment (1)

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

2,387,324

 

 

 

$

1,808,759

 

 

Eliminations of inter-segment sales

 

 

(228,252

)

 

 

 

(336,444

)

 

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

 

 

2,159,072

 

 

 

 

1,472,315

 

 

Direct-to-Consumer

 

 

325,546

 

 (a)

 

 

428,036

 

 (b)

 

$

2,484,618

 

 

 

$

1,900,351

 

 

 

(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 $1.6 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.

 

in thousands

 

Three Months Ended September 30,

 

 

2023

 

2022

Revenue by geographic region

 

 

 

 

 

 

 

 

United States

 

$

1,251,799

 

 

 

$

1,226,308

 

 

Europe

 

 

1,086,706

 

 

 

 

484,209

 

 

North America, excluding United States

 

 

136,366

 

 

 

 

186,164

 

 

Asia Pacific

 

 

8,504

 

 

 

 

2,446

 

 

Australia

 

 

1,243

 

 

 

 

1,224

 

 

 

$

2,484,618

 

 

 

$

1,900,351

 

 

Gross Profit and Gross Margin Percentage

in thousands

 

Three Months Ended September 30,

 

 

2023

 

2022

Gross profit by segment(1)

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

26,082

 

 

 

$

36,025

 

 

Eliminations and adjustments

 

 

2,265

 

 

 

 

(1,519

)

 

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

28,347

 

 

 

 

34,506

 

 

Direct-to-Consumer, net of eliminations

 

 

21,058

 

 

 

 

42,086

 

 

 

$

49,405

 

 

 

$

76,592

 

 

Gross margin percentage by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

 

1.093

%

 

 

 

1.992

%

 

Wholesale Sales & Ancillary Services, net of eliminations and adjustments

 

 

1.313

%

 

 

 

2.344

%

 

Direct-to-Consumer

 

 

6.469

%

 

 

 

9.832

%

 

Consolidated gross margin percentage

 

 

1.988

%

 

 

 

4.030

%

 

 

(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,

 

 

2023

 

2022

Operating income (expenses) by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(11,537

)

 

 

$

(5,290

)

 

Eliminations

 

 

(45

)

 

 

 

(58

)

 

Wholesale Sales & Ancillary Services, net of eliminations

 

$

(11,582

)

 

 

$

(5,348

)

 

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services, net of eliminations

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(10,587

)

 

 

$

(7,378

)

 

Depreciation and amortization expense

 

 

(297

)

 

 

 

(218

)

 

Interest income

 

 

3,408

 

 

 

 

2,666

 

 

Interest expense

 

 

(6,763

)

 

 

 

(3,307

)

 

Earnings from equity method investments

 

 

2,715

 

 

 

 

2,675

 

 

Other income, net

 

 

36

 

 

 

 

 

 

Unrealized (losses) gains on foreign exchange

 

 

(94

)

 

 

 

214

 

 

 

$

(11,582

)

 

 

$

(5,348

)

 

Direct-to-Consumer

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(10,866

)

 

 

$

(10,001

)

 

Depreciation and amortization expense

 

 

(2,407

)

 

 

 

(2,878

)

 

Interest expense

 

 

(1,102

)

 

 

 

(767

)

 

 

$

(14,375

)

 

 

$

(13,646

)

 

Secured Lending

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

(392

)

 

 

$

(405

)

 

Depreciation and amortization expense

 

 

(88

)

 

 

 

(88

)

 

Interest income

 

 

2,694

 

 

 

 

2,430

 

 

Interest expense

 

 

(1,958

)

 

 

 

(2,056

)

 

Earnings (losses) from equity method investments

 

 

(6

)

 

 

 

2

 

 

Other income, net

 

 

237

 

 

 

 

527

 

 

 

$

487

 

 

 

$

410

 

 

 

Net Income Before Provision for Income Taxes

in thousands

 

Three Months Ended September 30,

 

 

2023

 

2022

Net income before provision for income taxes by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

16,765

 

 

 

$

29,158

 

 

Direct-to-Consumer

 

 

6,683

 

 

 

 

28,440

 

 

Secured Lending

 

 

487

 

 

 

 

410

 

 

 

$

23,935

 

 

 

$

58,008

 

 

Advertising Expense

in thousands

 

Three Months Ended September 30,

 

 

2023

 

2022

Advertising expense by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

(611

)

 

 

$

(211

)

 

Direct-to-Consumer

 

 

(3,290

)

 

 

 

(3,265

)

 

Secured Lending

 

 

(52

)

 

 

 

(69

)

 

 

$

(3,953

)

 

 

$

(3,545

)

 

Capital Expenditures for Property, Plant, and Equipment

in thousands

 

Three Months Ended September 30,

 

 

2023

 

2022

Capital expenditures for property, plant, and equipment by segment

 

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,516

 

 

 

$

239

 

 

Direct-to-Consumer

 

 

370

 

 

 

 

688

 

 

 

$

1,886

 

 

 

$

927

 

 

Precious Metals Held Under Financing Arrangements

in thousands

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

June 30, 2023

 

Precious metals held under financing arrangements by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

6,542

 

 

 

$

10,580

 

Secured Lending

 

 

12,737

 

 

 

 

14,950

 

 

 

$

19,279

 

 

 

$

25,530

 

Inventories

in thousands

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

June 30, 2023

 

Inventories by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

833,652

 

 

 

$

815,576

 

Direct-to-Consumer

 

 

104,595

 

 

 

 

109,226

 

Secured Lending

 

 

62,562

 

 

 

 

56,841

 

 

$

1,000,809

 

 

 

$

981,643

 

in thousands

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

June 30, 2023

 

Inventories by geographic region

 

 

 

 

 

 

 

United States

 

$

951,444

 

 

 

$

938,177

 

North America, excluding United States

 

 

25,073

 

 

 

 

20,787

 

Europe

 

 

14,836

 

 

 

 

18,454

 

Asia

 

 

8,804

 

 

 

 

4,139

 

Australia

 

 

652

 

 

 

 

86

 

 

 

$

1,000,809

 

 

 

$

981,643

 

Total Assets

in thousands

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

June 30, 2023

 

Total assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

1,140,545

 

 

 

$

1,110,615

 

Eliminations

 

 

(227,797

)

 

 

 

(214,009

)

Wholesale Sales & Ancillary Services, net of eliminations

 

 

912,748

 

 

 

 

896,606

 

Direct-to-Consumer

 

 

486,860

 

 

 

 

471,796

 

Secured Lending

 

 

179,629

 

 

 

 

177,169

 

 

$

1,579,237

 

 

 

$

1,545,571

 

 

 

in thousands

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

June 30, 2023

 

Total assets by geographic region

 

 

 

 

 

 

 

United States

 

$

1,526,418

 

 

 

$

1,500,555

 

North America, excluding United States

 

 

25,073

 

 

 

 

20,787

 

Europe

 

 

18,290

 

 

 

 

20,004

 

Asia

 

 

8,804

 

 

 

 

4,139

 

Australia

 

 

652

 

 

 

 

86

 

 

$

1,579,237

 

 

 

$

1,545,571

 

Long-term Assets

in thousands

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

June 30, 2023

 

Long-term assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

124,402

 

 

 

$

116,189

 

Direct-to-Consumer

 

 

157,732

 

 

 

 

159,918

 

Secured Lending

 

 

2,180

 

 

 

 

2,273

 

 

$

284,314

 

 

 

$

278,380

 

 

in thousands

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

June 30, 2023

 

Long-term assets by geographic region

 

 

 

 

 

 

 

United States

 

$

284,312

 

 

 

$

278,378

 

Europe

 

 

2

 

 

 

 

2

 

 

$

284,314

 

 

 

$

278,380

 

Goodwill

in thousands

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

June 30, 2023

 

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, 2023

 

 

 

June 30, 2023

 

Intangible assets by segment

 

 

 

 

 

 

 

Wholesale Sales & Ancillary Services

 

$

2,668

 

 

 

$

2,687

 

Direct-to-Consumer(1)

 

 

57,797

 

 

 

 

59,943

 

 

 

$

60,465

 

 

 

$

62,630

 

 

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