| Schedule of segment reporting information, by segment |
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
Revenue by segment (1)
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services (2)
|
|
$ |
1,088,188 |
|
|
$ |
1,651,442 |
|
|
$ |
2,642,501 |
|
|
$ |
3,804,862 |
|
|
Direct Sales |
|
12,724 |
|
(a) |
29,296 |
|
(b) |
23,501 |
|
(c) |
39,666 |
|
(d) |
Total revenue |
|
$ |
1,100,912 |
|
|
$ |
1,680,738 |
|
|
$ |
2,666,002 |
|
|
$ |
3,844,528 |
|
|
|
|
|
|
|
|
|
|
|
|
_________________________________ |
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|
(1) Intercompany purchases from and sales to the Direct Sales segment are transacted at Wholesale Trading & Ancillary Services segment's prices, which is consistent with arms-length transactions with third-parties. |
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|
|
(2) The elimination of intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment. |
|
(a) Includes $0.1 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. |
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|
(b) Includes $10.8 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. |
|
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|
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(c) Includes $0.3 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. |
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(d) Includes $17.7 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
|
Revenue by geographic region
(as determined by the shipping address or where the services were performed):
|
|
United States |
|
$ |
968,883 |
|
|
$ |
1,579,893 |
|
|
$ |
2,344,519 |
|
|
$ |
3,631,814 |
|
|
Europe |
|
48,609 |
|
|
73,022 |
|
|
138,761 |
|
|
127,380 |
|
|
North America, excluding United States |
|
82,285 |
|
|
26,896 |
|
|
178,669 |
|
|
81,774 |
|
|
Asia Pacific |
|
614 |
|
|
374 |
|
|
2,957 |
|
|
1,726 |
|
|
Africa |
|
— |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
Australia |
|
521 |
|
|
552 |
|
|
1,095 |
|
|
1,833 |
|
|
Total revenue |
|
$ |
1,100,912 |
|
|
$ |
1,680,738 |
|
|
$ |
2,666,002 |
|
|
$ |
3,844,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
Gross profit by segment |
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
6,804 |
|
|
$ |
7,168 |
|
|
$ |
14,216 |
|
|
$ |
12,813 |
|
|
Direct Sales |
|
1,513 |
|
|
1,748 |
|
|
2,576 |
|
|
3,409 |
|
|
Total gross profit |
|
$ |
8,317 |
|
|
$ |
8,916 |
|
|
$ |
16,792 |
|
|
$ |
16,222 |
|
|
Gross margin percentage by segment |
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
0.625 |
% |
|
0.434 |
% |
|
0.538 |
% |
|
0.337 |
% |
|
Direct Sales |
|
11.891 |
% |
|
5.967 |
% |
|
10.961 |
% |
|
8.594 |
% |
|
Weighted average gross margin percentage |
|
0.755 |
% |
|
0.530 |
% |
|
0.630 |
% |
|
0.422 |
% |
|
|
|
|
|
|
|
|
|
|
|
Operating income and (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
Operating income and (expenses) by segment |
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
$ |
(5,649 |
) |
|
$ |
(5,376 |
) |
|
$ |
(10,907 |
) |
|
$ |
(10,786 |
) |
|
Interest income |
|
$ |
2,354 |
|
|
$ |
998 |
|
|
$ |
4,406 |
|
|
$ |
2,056 |
|
|
Interest expense |
|
$ |
(2,974 |
) |
|
$ |
(1,873 |
) |
|
$ |
(4,854 |
) |
|
$ |
(3,392 |
) |
|
Other income, net |
|
$ |
867 |
|
|
$ |
790 |
|
|
$ |
1,045 |
|
|
$ |
750 |
|
|
Secured Lending |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
$ |
(344 |
) |
|
$ |
(348 |
) |
|
$ |
(689 |
) |
|
$ |
(731 |
) |
|
Interest income |
|
$ |
2,298 |
|
|
$ |
2,270 |
|
|
$ |
4,797 |
|
|
$ |
4,373 |
|
|
Interest expense |
|
$ |
(1,535 |
) |
|
$ |
(1,286 |
) |
|
$ |
(3,012 |
) |
|
$ |
(2,421 |
) |
|
Other income, net |
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
24 |
|
|
$ |
— |
|
|
Direct Sales |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
$ |
(2,110 |
) |
|
$ |
(3,625 |
) |
|
$ |
(4,226 |
) |
|
$ |
(4,808 |
) |
|
Interest expense |
|
$ |
(147 |
) |
|
$ |
(200 |
) |
|
$ |
(342 |
) |
|
$ |
(279 |
) |
|
Other expense, net |
|
(157 |
) |
|
— |
|
|
$ |
(157 |
) |
|
$ |
— |
|
|
Net (loss) income before provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
Net (loss) income before provision for income taxes by segment |
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
1,402 |
|
|
$ |
1,707 |
|
|
$ |
3,906 |
|
|
$ |
1,441 |
|
|
Secured Lending |
|
443 |
|
|
636 |
|
|
1,120 |
|
|
1,221 |
|
|
Direct Sales |
|
(901 |
) |
|
(2,077 |
) |
|
(2,149 |
) |
|
(1,678 |
) |
|
Total net income before provision for income taxes
|
|
$ |
944 |
|
|
$ |
266 |
|
|
$ |
2,877 |
|
|
$ |
984 |
|
|
Depreciation and Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
Depreciation and amortization by segment |
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
(395 |
) |
|
$ |
(427 |
) |
|
$ |
(791 |
) |
|
$ |
(758 |
) |
|
Secured Lending |
|
— |
|
|
(1 |
) |
|
— |
|
|
(2 |
) |
|
Direct Sales |
|
(306 |
) |
|
(355 |
) |
|
(607 |
) |
|
(552 |
) |
|
Total depreciation and amortization |
|
$ |
(701 |
) |
|
$ |
(783 |
) |
|
$ |
(1,398 |
) |
|
$ |
(1,312 |
) |
|
Advertising expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
Advertising expense by segment |
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
(161 |
) |
|
$ |
(183 |
) |
|
$ |
(268 |
) |
|
$ |
(284 |
) |
|
Secured Lending |
|
(1 |
) |
|
(7 |
) |
|
(4 |
) |
|
(18 |
) |
|
Direct Sales |
|
(486 |
) |
|
(869 |
) |
|
(966 |
) |
|
(1,274 |
) |
|
Total advertising expense |
|
$ |
(648 |
) |
|
$ |
(1,059 |
) |
|
$ |
(1,238 |
) |
|
$ |
(1,576 |
) |
|
Precious metals held under financing arrangements
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2018 |
|
Precious metals held under financing arrangements by segment |
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
226,905 |
|
|
$ |
262,566 |
|
|
Total precious metals held under financing arrangements |
|
$ |
226,905 |
|
|
$ |
262,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2018 |
|
Inventories by segment |
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
268,527 |
|
|
$ |
272,034 |
|
|
Direct Sales |
|
7,758 |
|
|
8,082 |
|
|
Total inventories |
|
$ |
276,285 |
|
|
$ |
280,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2018 |
|
Inventories by geographic region |
|
|
|
|
|
United States |
|
$ |
265,214 |
|
|
$ |
273,008 |
|
|
Europe |
|
2,005 |
|
|
1,965 |
|
|
North America, excluding United States |
|
8,279 |
|
|
4,976 |
|
|
Asia |
|
787 |
|
|
167 |
|
|
Total inventories |
|
$ |
276,285 |
|
|
$ |
280,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2018 |
|
Assets by segment |
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
558,953 |
|
|
$ |
616,522 |
|
|
Secured Lending |
|
110,678 |
|
|
111,304 |
|
|
Direct Sales |
|
14,460 |
|
|
15,175 |
|
|
Total assets |
|
$ |
684,091 |
|
|
$ |
743,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2018 |
|
Assets by geographic region |
|
|
|
|
|
United States |
|
$ |
672,153 |
|
|
$ |
733,131 |
|
|
Europe |
|
2,872 |
|
|
4,727 |
|
|
North America, excluding United States |
|
8,279 |
|
|
4,976 |
|
|
Asia |
|
787 |
|
|
167 |
|
|
Total assets |
|
$ |
684,091 |
|
|
$ |
743,001 |
|
|
Long-term Assets
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2018 |
|
Long-term assets by segment |
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
32,097 |
|
|
$ |
31,328 |
|
|
Secured Lending |
|
103 |
|
|
102 |
|
|
Direct Sales |
|
3,957 |
|
|
4,588 |
|
|
Total long-term assets |
|
$ |
36,157 |
|
|
$ |
36,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2018 |
|
Long-term assets by geographic region |
|
|
|
|
|
United States |
|
$ |
36,104 |
|
|
$ |
35,965 |
|
|
Europe |
|
53 |
|
|
53 |
|
|
Total long-term assets |
|
$ |
36,157 |
|
|
$ |
36,018 |
|
|
Capital Expenditures for Property and Equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
Capital expenditures on plant, property and equipment by segment |
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
16 |
|
|
$ |
75 |
|
|
$ |
138 |
|
|
$ |
269 |
|
|
Direct Sales |
|
— |
|
|
24 |
|
|
— |
|
|
148 |
|
|
Total capital expenditures on property and equipment |
|
$ |
16 |
|
|
$ |
99 |
|
|
$ |
138 |
|
|
$ |
417 |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and Intangible Assets
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2018 |
|
June 30, 2018 |
|
Goodwill and Intangibles by segment |
|
|
|
|
|
Wholesale Trading & Ancillary Services |
|
$ |
12,302 |
|
|
$ |
12,516 |
|
|
Direct Sales |
|
2,936 |
|
|
3,226 |
|
|
Total goodwill and intangible assets |
|
$ |
15,238 |
|
|
$ |
15,742 |
|
|
|