Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Information

v3.8.0.1
Segment and Geographic Information
9 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment and Geographic Information
SEGMENTS AND GEOGRAPHIC INFORMATION
The Company evaluates segment reporting in accordance with FASB ASC 280, Segment Reporting, each reporting period, including evaluating the organizational structure the reporting package reviewed by the Chief Operation Decision Maker (“CODM”). The Company has concluded the Chief Executive Officer and the President collectively act as the CODM. The Company's operations are organized under two business segments — Wholesale Trading & Ancillary Services and Direct Sales.
Our Direct Sales segment was created on August 28, 2017 as a result of our recent acquisition (see Note 1), and thus comparative prior period data is not available ("N/A").
Revenue
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended September 30,
 
March 31, 2018
 
March 31, 2017
 
March 31, 2018
 
March 31, 2017
 
Revenue by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
1,977,273

 
$
1,730,845

 
$
5,782,135

 
$
5,662,859

 
Direct Sales
 
17,690

(1) 
N/A

 
57,356

(2) 
N/A

 
Total revenue
 
$
1,994,963

 
$
1,730,845

 
$
5,839,491

 
$
5,662,859

 
 
 
 
 
 
 
 
 
 
 
_________________________________
 
 
 
 
 
 
 
 
 
(1) Includes $4.3 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. The elimination of these intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment.
 
(2) Includes $21.9 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. The elimination of these intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment.
 
 
 
 
 
 
 
 
 
 
 

in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended September 30,
 
March 31, 2018
 
March 31, 2017
 
March 31, 2018
 
March 31, 2017
 
Revenue by geographic region
(as determined by the shipping address or where the services were performed):
 
United States
 
$
1,851,752

 
$
1,579,302

 
$
5,483,566

 
$
5,298,549

 
Europe
 
77,580

 
100,731

 
204,960

 
204,316

 
North America, excluding United States
 
64,463

 
49,154

 
146,237

 
149,204

 
Asia Pacific
 
684

 
596

 
2,410

 
7,170

 
Africa
 

 

 
1

 

 
Australia
 
484

 
1,062

 
2,317

 
3,620

 
Total revenue
 
$
1,994,963

 
$
1,730,845

 
$
5,839,491

 
$
5,662,859

 
 
 
 
 
 
 
 
 
 
 
Gross Profit and Gross Margin Percentage
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended September 30,
 
March 31, 2018
 
March 31, 2017
 
March 31, 2018
 
March 31, 2017
 
Gross profit by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
6,748

 
$
7,332

 
$
19,561

 
$
25,255

 
Direct Sales
 
679

 
N/A

 
4,088

 
N/A

 
Total gross profit
 
$
7,427

 
$
7,332

 
$
23,649

 
$
25,255

 
Gross margin percentage by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
0.341
%
 
0.424
%
 
0.338
%
 
0.446
%
 
Direct Sales
 
3.838
%
 
N/A

 
7.127
%
 
N/A

 
Weighted average gross margin percentage
 
0.372
%
 
0.424
%
 
0.405
%
 
0.446
%
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses and Income
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended September 30,
 
March 31, 2018
 
March 31, 2017
 
March 31, 2018
 
March 31, 2017
 
Operating income and expenses by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
(5,787
)
 
$
(5,989
)
 
$
(17,304
)
 
$
(17,784
)
 
Interest income
 
$
4,087

 
$
3,283

 
$
10,516

 
$
9,101

 
Interest expense
 
$
(3,416
)
 
$
(2,700
)
 
$
(9,229
)
 
$
(7,388
)
 
Other income, net
 
$
67

 
$
212

 
$
817

 
$
282

 
 
 
 
 
 
 
 
 
 
 
Direct Sales
 
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
(3,636
)
 
N/A

 
$
(8,444
)
 
N/A

 
Interest expense
 
$
(226
)
 
N/A

 
$
(505
)
 
N/A

 
Depreciation and Amortization
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended September 30,
 
March 31, 2018
 
March 31, 2017
 
March 31, 2018
 
March 31, 2017
 
Depreciation and amortization by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
(386
)
 
$
(413
)
 
$
(1,170
)
 
$
(1,120
)
 
Direct Sales
 
(296
)
 
N/A

 
(824
)
 
N/A

 
Total depreciation and amortization
 
$
(682
)
 
$
(413
)
 
$
(1,994
)
 
$
(1,120
)
 
Advertising expense
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended September 30,
 
March 31, 2018
 
March 31, 2017
 
March 31, 2018
 
March 31, 2017
 
Advertising expense by segment
 
 
 
 
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
(165
)
 
$
(176
)
 
$
(467
)
 
$
(542
)
 
Direct Sales
 
(796
)
 
N/A

 
(2,070
)
 
N/A

 
Total advertising expense
 
$
(961
)
 
$
(176
)
 
$
(2,537
)
 
$
(542
)
 
Inventory
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Inventories by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
490,789

 
$
284,659

 
Direct Sales
 
8,628

 
N/A

 
Total inventories
 
$
499,417

 
$
284,659

 
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Inventories by geographic region
 
 
 
 
 
United States
 
$
493,720

 
$
276,809

 
Europe
 
2,100

 
3,154

 
North America, excluding United States
 
3,402

 
4,310

 
Asia
 
195

 
386

 
Total inventories
 
$
499,417

 
$
284,659

 
Assets
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Assets by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
687,458

 
$
478,500

 
Direct Sales
 
19,360

 
N/A

 
Total assets
 
$
706,818

 
$
478,500

 
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Assets by geographic region
 
 
 
 
 
United States
 
$
696,161

 
$
469,114

 
Europe
 
7,060

 
4,690

 
North America, excluding United States
 
3,402

 
4,310

 
Asia
 
195

 
386

 
Total assets
 
$
706,818

 
$
478,500

 
Long-term Assets
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Long-term assets by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
31,499

 
$
31,479

 
Direct Sales
 
7,543

 
N/A

 
Total long-term assets
 
$
39,042

 
$
31,479

 
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Long-term assets by geographic region
 
 
 
 
 
United States
 
$
38,987

 
$
31,423

 
     Europe
 
55

 
56

 
Total long-term assets
 
$
39,042

 
$
31,479

 

Capital Expenditures for Property and Equipment
in thousands
 
 
 
 
 
Nine Months Ended
 
Three Months Ended September 30,
 
March 31, 2018
 
March 31, 2017
 
Capital expenditures on property and equipment by segment
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
673

 
$
1,932

 
Direct Sales
 
148

 
N/A

 
Total capital expenditures on property and equipment
 
$
821

 
$
1,932

 
Goodwill
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Goodwill by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
8,881

 
$
8,881

 
Direct Sales
 
1,450

 
N/A

 
Total goodwill
 
$
10,331

 
$
8,881