A-Mark Precious Metals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2014

Schedules of concentration of risk, by risk factor

Customers providing 10 percent or more of the Company's revenues for the three and six months ended December 31, 2014 and 2013 are listed below:



in thousands
	Three Months Ended								Six Months Ended
	December 31, 2014				December 31, 2013				December 31, 2014				December 31, 2013
	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
Total revenue	$	1,538,871	100.0	%	$	1,488,691	100.0	%	$	2,992,337	100.0	%	$	2,984,716	100.0	%
Customer concentrations
HSBC Bank USA	$	448,453	29.1	%	$	393,148	26.4	%	$	982,991	32.9	%	$	705,693	23.6	%
Total	$	448,453	29.1	%	$	393,148	26.4	%	$	982,991	32.9	%	$	705,693	23.6	%

Customers providing 10 percent or more of the Company's accounts receivable, excluding $42.6 million and $41.3 million of secured loans and derivative assets of $18.1 million and $22.2 million, as of December 31, 2014 and June 30, 2014, respectively, are listed below:



in thousands
	December 31, 2014				June 30, 2014

	Amount		Percent		Amount		Percent
Total accounts receivable, net (excluding secured loans and derivative assets)	$	65,360	100.0	%	$	39,409	100.0	%
Customer concentrations
United States Mint	$	18,839	28.8	%	$	—	—	%
Sunshine Mint	9,680		14.8		—		—
Total	$	28,519	43.6	%	$	—	—	%

Customers providing 10 percent or more of the Company's secured loans as of December 31, 2014 and June 30, 2014, respectively, are listed below:



in thousands
	December 31, 2014				June 30, 2014

	Amount		Percent		Amount		Percent
Total secured loans	$	42,564	100.0	%	$	41,261	100.0	%
Customer concentrations
Customer A	$	5,273	12.4	%	$	2,562	6.2	%
Customer B	4,900		11.5		4,200		10.2
Customer C	4,391		10.3		4,103		9.9
Total	$	14,564	34.2	%	$	10,865	26.3	%

Schedule of financial instruments not required to be carried at fair value

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2014 and June 30, 2014.



in thousands
	December 31, 2014				June 30, 2014
	Carrying Amount		Fair value		Carrying Amount		Fair value

Financial assets:
Cash	$	5,113	$	5,113	$	13,193	$	13,193
Receivables, advances receivables and secured loans	107,894		107,894		80,640		80,640
Derivative assets - open sale and purchase commitments, net, included in receivable	2,428		2,428		22,170		22,170
Derivative assets - futures contracts included in receivable	6,174		6,174		—		—
Derivative assets - forward contracts included in receivable	9,510		9,510		14		14
Income taxes receivable from Former Parent	3,139		3,139		3,139		3,139
Financial liabilities:
Lines of credit	$	151,000	$	151,000	$	135,200	$	135,200
Liability for borrowed metals	5,684		5,684		8,709		8,709
Product financing obligation	80,660		80,660		24,610		24,610
Derivative liabilities - open sale and purchase commitments, net, included in payables	30,020		30,020		848		848
Derivative liabilities - futures contracts included in payables	—		—		8,078		8,078
Derivative liabilities - forward contracts included in payables	46		46		14,873		14,873
Accounts payable, margin accounts, advances and other payables	50,701		50,701		53,627		53,627
Accrued liabilities	3,416		3,416		6,070		6,070

Schedule of fair value, assets and liabilities measured on recurring basis

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and June 30, 2014 aggregated by the level in the fair value hierarchy within which the measurements fall:



	December 31, 2014
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
in thousands	(Level 1)		(Level 2)		(Level 3)		Total Balance
Assets:
Inventory ⁽¹⁾	$	223,377	$	—	$	—	$	223,377
Derivative assets — open sale and purchase commitments, net	2,428		—		—		2,428
Derivative assets — futures contracts	6,174		—		—		6,174
Derivative assets — forward contracts	9,510		—		—		9,510
Total assets valued at fair value	$	241,489	$	—	$	—	$	241,489
Liabilities:
Liability on borrowed metals	$	5,684	$	—	$	—	$	5,684
Product financing arrangement	80,660		—		—		80,660
Liability on margin accounts	5,123		—		—		5,123
Derivative liabilities — open sales and purchase commitments, net	30,020		—		—		30,020
Derivative liabilities — forward contracts	46		—		—		46
Total liabilities, valued at fair value	$	121,533	$	—	$	—	$	121,533

____________________

⁽¹⁾ Commemorative coin inventory totaling $0.4 million is held at lower of cost or market and is thus excluded from this table.



	June 30, 2014
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
in thousands	(Level 1)		(Level 2)		(Level 3)		Total Balance
Assets:
Inventory ⁽¹⁾	$	172,990	$	—	$	—	$	172,990
Derivative assets — open sale and purchase commitments, net	22,170		—		—		22,170
Derivative assets — forward contracts	14		—		—		14
Total assets, valued at fair value	$	195,174	$	—	$	—	$	195,174
Liabilities:
Liability on borrowed metals	$	8,709	$	—	$	—	$	8,709
Product financing arrangement	24,610		—		—		24,610
Liability on margin accounts	8,983		—		—		8,983
Derivative liabilities — open sale and purchase commitments, net	848		—		—		848
Derivative liabilities — futures contracts	8,078		—		—		8,078
Derivative liabilities — forward contracts	14,873		—		—		14,873
Total liabilities valued at fair value	$	66,101	$	—	$	—	$	66,101

____________________

⁽¹⁾ Commemorative coin inventory totaling $2.6 million is held at lower of cost or market and is thus excluded from this table.

Summary of net gains (losses) on derivative instruments

Below, is a summary of the net gains (losses) on derivative instruments for the three and six months ended December 31, 2014 and 2013.



in thousands
	Three Months Ended						Six Months Ended
	December 31, 2014			December 31, 2013			December 31, 2014			December 31, 2013
Gain (loss) on derivative instruments:
Unrealized gain (loss) on open future commodity and forward contracts and open sale and purchase commitments, net	$	9,006		$	14,047		$	10,284		$	(1,839	)
Realized loss on future commodity contracts, net	(37,172		)	(6,480		)	(44,806		)	(8,183		)
Total	$	(28,166	)	$	7,567		$	(34,522	)	$	(10,022	)

Schedule of earnings per share



in thousands
	Three Months Ended		Six Months Ended
	December 31, 2014	December 31, 2013	December 31, 2014	December 31, 2013
Basic weighted average shares outstanding ⁽¹⁾⁽²⁾	6,963	7,729	6,963	7,729
Effect of common stock equivalents — stock issuable under outstanding equity awards	96	157	99	157
Diluted weighted average shares outstanding ⁽²⁾	7,059	7,886	7,062	7,886



_________________________________
(1)		Basic weighted average shares outstanding include the effect of vested but unissued restricted stock grants.
(2)		Basic and diluted income per share was based on historical SGI basic and fully diluted share figures through March 14, 2014, the distribution date. Amounts shown were retroactively adjusted to give effect for the share distribution in connection with the spinoff, on the basis of one share of A-Mark stock issued for every four shares of SGI stock held through the distribution date. Thereafter, basic and diluted income per share was based on the Company's basic and fully diluted share figures.

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References + Details

- Definition

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

+ References + Details