| Segments and Geographic Information |
|
18.
|
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 and the reporting package that is reviewed by the chief operating decision makers. The Company's operations are organized under three business segments — Wholesale Trading & Ancillary Services, Secured Lending, and Direct Sales. (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,
2020
|
|
|
|
September 30,
2019
|
|
|
|
Revenue by segment(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services(3)
|
|
$
|
1,813,708
|
|
|
|
$
|
1,460,933
|
|
|
|
Direct Sales
|
|
|
52,408
|
|
(a)
|
|
|
20,081
|
|
(b)
|
|
|
|
$
|
1,866,116
|
|
|
|
$
|
1,481,014
|
|
|
|
(1)
|
Inter-segment 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.
|
|
(2)
|
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.
|
|
(3)
|
The elimination of inter-segment sales is reflected in the Wholesale Trading & Ancillary Services segment.
|
|
(a)
|
Includes $4.7 million of inter-segment sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
|
|
(b)
|
Includes $8.6 million of inter-segment sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
2020
|
|
|
|
September 30,
2019
|
|
|
Revenue by geographic region (as determined by the shipping or billing address or where the services were performed):
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
1,459,010
|
|
|
|
$
|
1,105,621
|
|
|
Europe
|
|
|
119,908
|
|
|
|
|
62,102
|
|
|
North America, excluding United States
|
|
|
257,245
|
|
|
|
|
300,397
|
|
|
Asia Pacific
|
|
|
15,132
|
|
|
|
|
6,113
|
|
|
Africa
|
|
|
—
|
|
|
|
|
31
|
|
|
Australia
|
|
|
14,821
|
|
|
|
|
6,750
|
|
|
|
|
$
|
1,866,116
|
|
|
|
$
|
1,481,014
|
|
Gross Profit and Gross Margin Percentage
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
2020
|
|
|
|
September 30,
2019
|
|
|
Gross profit by segment(1)
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
30,622
|
|
|
|
$
|
6,760
|
|
|
Direct Sales
|
|
|
5,523
|
|
|
|
|
1,580
|
|
|
Total gross profit
|
|
$
|
36,145
|
|
|
|
$
|
8,340
|
|
|
Gross margin percentage by segment(1)
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
|
1.688
|
%
|
|
|
|
0.463
|
%
|
|
Direct Sales
|
|
|
10.538
|
%
|
|
|
|
7.868
|
%
|
|
Weighted average gross margin percentage
|
|
|
1.937
|
%
|
|
|
|
0.563
|
%
|
|
(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,
2020
|
|
|
|
September 30,
2019
|
|
|
Operating income (expense) by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
$
|
(7,607
|
)
|
|
|
$
|
(5,802
|
)
|
|
Interest income
|
|
$
|
2,438
|
|
|
|
$
|
2,262
|
|
|
Interest expense
|
|
$
|
(2,948
|
)
|
|
|
$
|
(2,826
|
)
|
|
Other income, net
|
|
$
|
4,126
|
|
|
|
$
|
12
|
|
|
Unrealized losses on foreign exchange
|
|
$
|
(97
|
)
|
|
|
$
|
(122
|
)
|
|
Secured Lending
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
$
|
(496
|
)
|
|
|
$
|
(348
|
)
|
|
Interest income
|
|
$
|
1,545
|
|
|
|
$
|
3,506
|
|
|
Interest expense
|
|
$
|
(1,345
|
)
|
|
|
$
|
(2,316
|
)
|
|
Other income, net
|
|
$
|
359
|
|
|
|
$
|
42
|
|
|
Direct Sales
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
$
|
(1,903
|
)
|
|
|
$
|
(2,120
|
)
|
|
Other expense, net
|
|
$
|
—
|
|
|
|
$
|
(220
|
)
|
Net income (loss) before provision for income taxes
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
2020
|
|
|
|
September 30,
2019
|
|
|
Net income (loss) before provision for income taxes by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
26,534
|
|
|
|
$
|
284
|
|
|
Secured Lending
|
|
|
63
|
|
|
|
|
884
|
|
|
Direct Sales
|
|
|
3,620
|
|
|
|
|
(760
|
)
|
|
|
|
$
|
30,217
|
|
|
|
$
|
408
|
|
Depreciation and Amortization
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
2020
|
|
|
|
September 30,
2019
|
|
|
Depreciation and amortization by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
(205
|
)
|
|
|
$
|
(397
|
)
|
|
Secured Lending
|
|
|
(88
|
)
|
|
|
|
(16
|
)
|
|
Direct Sales
|
|
|
(208
|
)
|
|
|
|
(255
|
)
|
|
|
|
$
|
(501
|
)
|
|
|
$
|
(668
|
)
|
Advertising expense
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
2020
|
|
|
|
September 30,
2019
|
|
|
Advertising expense by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
(65
|
)
|
|
|
$
|
(56
|
)
|
|
Secured Lending
|
|
|
(25
|
)
|
|
|
|
(3
|
)
|
|
Direct Sales
|
|
|
(610
|
)
|
|
|
|
(404
|
)
|
|
|
|
$
|
(700
|
)
|
|
|
$
|
(463
|
)
|
Precious metals held under financing arrangements
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Precious metals held under financing arrangements by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
138,797
|
|
|
$
|
157,609
|
|
|
Secured Lending
|
|
|
19,959
|
|
|
|
20,968
|
|
|
|
|
$
|
158,756
|
|
|
$
|
178,577
|
|
Inventories
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Inventories by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
379,884
|
|
|
$
|
289,069
|
|
|
Secured Lending
|
|
|
24,360
|
|
|
|
24,057
|
|
|
Direct Sales
|
|
|
8,937
|
|
|
|
8,155
|
|
|
|
|
$
|
413,181
|
|
|
$
|
321,281
|
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Inventories by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
383,034
|
|
|
$
|
287,960
|
|
|
Europe
|
|
|
16,386
|
|
|
|
19,531
|
|
|
North America, excluding United States
|
|
|
13,497
|
|
|
|
13,735
|
|
|
Asia
|
|
|
264
|
|
|
|
55
|
|
|
|
|
$
|
413,181
|
|
|
$
|
321,281
|
|
Total Assets
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Assets by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
757,234
|
|
|
$
|
599,032
|
|
|
Secured Lending
|
|
|
139,678
|
|
|
|
140,622
|
|
|
Direct Sales
|
|
|
23,838
|
|
|
|
18,381
|
|
|
|
|
$
|
920,750
|
|
|
$
|
758,035
|
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Assets by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
888,535
|
|
|
$
|
723,252
|
|
|
Europe
|
|
|
18,454
|
|
|
|
20,993
|
|
|
North America, excluding United States
|
|
|
13,497
|
|
|
|
13,735
|
|
|
Asia
|
|
|
264
|
|
|
|
55
|
|
|
|
|
$
|
920,750
|
|
|
$
|
758,035
|
|
Long-term Assets
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Long-term assets by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
43,357
|
|
|
$
|
39,090
|
|
|
Secured Lending
|
|
|
1,232
|
|
|
|
1,319
|
|
|
Direct Sales
|
|
|
3,235
|
|
|
|
3,607
|
|
|
|
|
$
|
47,824
|
|
|
$
|
44,016
|
|
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Long-term assets by geographic region
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
47,771
|
|
|
$
|
43,963
|
|
|
Europe
|
|
|
53
|
|
|
|
53
|
|
|
|
|
$
|
47,824
|
|
|
$
|
44,016
|
|
Capital Expenditures for Property, Plant, and Equipment
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
2020
|
|
|
|
September 30,
2019
|
|
|
Capital expenditures on property, plant, and equipment by segment
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
473
|
|
|
|
$
|
97
|
|
|
Secured Lending
|
|
|
—
|
|
|
|
|
37
|
|
|
Direct Sales
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
$
|
476
|
|
|
|
$
|
137
|
|
Goodwill
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Goodwill by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
8,881
|
|
|
$
|
8,881
|
|
|
Direct Sales (1)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
$
|
8,881
|
|
|
$
|
8,881
|
|
|
(1)
|
Direct Sales goodwill balance is net of $1.4 million accumulated impairment losses.
|
Intangible Assets
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
June 30,
2020
|
|
|
Intangibles by segment
|
|
|
|
|
|
|
|
|
|
Wholesale Trading & Ancillary Services
|
|
$
|
2,896
|
|
|
$
|
2,907
|
|
|
Direct Sales
|
|
|
1,924
|
|
|
|
2,067
|
|
|
|
|
$
|
4,820
|
|
|
$
|
4,974
|
|
|