| 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 (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 |
|
|
|
Six Months Ended |
|
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
|
Revenue by segment(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
1,824,467 |
|
|
|
$ |
1,496,602 |
|
|
|
$ |
3,765,310 |
|
|
|
$ |
3,330,831 |
|
|
Eliminations of inter-segment sales |
|
|
(417,721 |
) |
|
|
|
(19,113 |
) |
|
|
|
(858,554 |
) |
|
|
|
(39,634 |
) |
|
Wholesale Sales & Ancillary Services, net of eliminations (2) |
|
|
1,406,746 |
|
|
|
|
1,477,489 |
|
|
|
|
2,906,756 |
|
|
|
|
3,291,197 |
|
|
Direct-to-Consumer |
|
|
539,618 |
|
(a) |
|
|
41,255 |
|
(b) |
|
|
1,053,579 |
|
(c) |
|
|
93,663 |
|
(d) |
|
|
$ |
1,946,364 |
|
|
|
$ |
1,518,744 |
|
|
|
$ |
3,960,335 |
|
|
|
$ |
3,384,860 |
|
|
(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 $0.5 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(b)
Includes $2.1 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(c)
Includes $1.6 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(d)
Includes $6.9 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
Revenue by geographic region(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
$ |
1,202,758 |
|
|
|
$ |
922,664 |
|
|
|
$ |
2,375,882 |
|
|
|
$ |
2,087,355 |
|
Europe |
|
|
552,848 |
|
|
|
|
376,791 |
|
|
|
|
1,047,000 |
|
|
|
|
781,482 |
|
North America, excluding United States |
|
|
178,604 |
|
|
|
|
206,127 |
|
|
|
|
508,289 |
|
|
|
|
472,875 |
|
Asia Pacific |
|
|
10,750 |
|
|
|
|
10,970 |
|
|
|
|
24,994 |
|
|
|
|
26,135 |
|
Africa |
|
|
— |
|
|
|
|
— |
|
|
|
|
17 |
|
|
|
|
— |
|
Australia |
|
|
1,404 |
|
|
|
|
2,192 |
|
|
|
|
4,153 |
|
|
|
|
17,013 |
|
|
|
$ |
1,946,364 |
|
|
|
$ |
1,518,744 |
|
|
|
$ |
3,960,335 |
|
|
|
$ |
3,384,860 |
|
(1)Presentation of amounts realigned based on current accounting policy that defines geographic area based on the delivery or settlement location. The presentation change had no impact on the segments' operations or the Company's condensed consolidated results.
Gross Profit and Gross Margin Percentage
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
Gross profit by segment(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
24,939 |
|
|
|
$ |
13,217 |
|
|
|
$ |
53,472 |
|
|
|
$ |
43,798 |
|
Eliminations and adjustments |
|
|
4,002 |
|
|
|
|
28 |
|
|
|
|
1,018 |
|
|
|
|
69 |
|
Wholesale Sales & Ancillary Services, net of eliminations and adjustments |
|
|
28,941 |
|
|
|
|
13,245 |
|
|
|
|
54,490 |
|
|
|
|
43,867 |
|
Direct-to-Consumer, net of eliminations |
|
|
36,982 |
|
|
|
|
5,506 |
|
|
|
|
67,442 |
|
|
|
|
11,029 |
|
|
|
$ |
65,923 |
|
|
|
$ |
18,751 |
|
|
|
$ |
121,932 |
|
|
|
$ |
54,896 |
|
Gross margin percentage by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
|
1.367 |
% |
|
|
|
0.883 |
% |
|
|
|
1.420 |
% |
|
|
|
1.315 |
% |
Wholesale Sales & Ancillary Services, net of eliminations and adjustments |
|
|
2.057 |
% |
|
|
|
0.896 |
% |
|
|
|
1.875 |
% |
|
|
|
1.333 |
% |
Direct-to-Consumer |
|
|
6.853 |
% |
|
|
|
13.346 |
% |
|
|
|
6.401 |
% |
|
|
|
11.775 |
% |
Weighted average gross margin percentage |
|
|
3.387 |
% |
|
|
|
1.235 |
% |
|
|
|
3.079 |
% |
|
|
|
1.622 |
% |
(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 |
|
|
|
Six Months Ended |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
Operating income (expense) by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
(7,504 |
) |
|
|
$ |
(4,693 |
) |
|
|
$ |
(14,522 |
) |
|
|
$ |
(8,740 |
) |
Eliminations |
|
|
(71 |
) |
|
|
|
(28 |
) |
|
|
|
(131 |
) |
|
|
|
(69 |
) |
Wholesale Sales & Ancillary Services, net of eliminations |
|
$ |
(7,575 |
) |
|
|
$ |
(4,721 |
) |
|
|
$ |
(14,653 |
) |
|
|
$ |
(8,809 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services, net of eliminations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
$ |
(8,863 |
) |
|
|
$ |
(6,466 |
) |
|
|
$ |
(17,545 |
) |
|
|
$ |
(13,868 |
) |
Depreciation and amortization expense |
|
|
(227 |
) |
|
|
|
(219 |
) |
|
|
|
(459 |
) |
|
|
|
(424 |
) |
Interest income |
|
|
2,643 |
|
|
|
|
2,498 |
|
|
|
|
5,652 |
|
|
|
|
4,936 |
|
Interest expense |
|
|
(2,579 |
) |
|
|
|
(2,915 |
) |
|
|
|
(5,017 |
) |
|
|
|
(5,863 |
) |
Earnings from equity method investments |
|
|
1,220 |
|
|
|
|
2,362 |
|
|
|
|
2,709 |
|
|
|
|
6,488 |
|
Unrealized gains (losses) on foreign exchange |
|
|
231 |
|
|
|
|
19 |
|
|
|
|
7 |
|
|
|
|
(78 |
) |
|
|
$ |
(7,575 |
) |
|
|
$ |
(4,721 |
) |
|
|
$ |
(14,653 |
) |
|
|
$ |
(8,809 |
) |
Direct-to-Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
$ |
(9,455 |
) |
|
|
$ |
(1,643 |
) |
|
|
$ |
(16,994 |
) |
|
|
$ |
(3,338 |
) |
Depreciation and amortization expense |
|
|
(7,943 |
) |
|
|
|
(198 |
) |
|
|
|
(15,894 |
) |
|
|
|
(406 |
) |
Interest expense |
|
|
(536 |
) |
|
|
|
— |
|
|
|
|
(1,359 |
) |
|
|
|
— |
|
|
|
$ |
(17,934 |
) |
|
|
$ |
(1,841 |
) |
|
|
$ |
(34,247 |
) |
|
|
$ |
(3,744 |
) |
Secured Lending |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
$ |
(395 |
) |
|
|
$ |
(419 |
) |
|
|
$ |
(851 |
) |
|
|
$ |
(827 |
) |
Depreciation and amortization expense |
|
|
(88 |
) |
|
|
|
(88 |
) |
|
|
|
(176 |
) |
|
|
|
(176 |
) |
Interest income |
|
|
2,608 |
|
|
|
|
2,035 |
|
|
|
|
5,130 |
|
|
|
|
3,580 |
|
Interest expense |
|
|
(2,280 |
) |
|
|
|
(2,122 |
) |
|
|
|
(4,492 |
) |
|
|
|
(3,467 |
) |
Other income, net |
|
|
433 |
|
|
|
|
205 |
|
|
|
|
842 |
|
|
|
|
564 |
|
|
|
$ |
278 |
|
|
|
$ |
(389 |
) |
|
|
$ |
453 |
|
|
|
$ |
(326 |
) |
Net income (loss) before provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
Net income before provision for income taxes by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
21,366 |
|
|
|
$ |
8,524 |
|
|
|
$ |
39,837 |
|
|
|
$ |
35,058 |
|
Direct-to-Consumer |
|
|
19,048 |
|
|
|
|
3,665 |
|
|
|
|
33,195 |
|
|
|
|
7,285 |
|
Secured Lending |
|
|
278 |
|
|
|
|
(389 |
) |
|
|
|
453 |
|
|
|
|
(326 |
) |
|
|
$ |
40,692 |
|
|
|
$ |
11,800 |
|
|
|
$ |
73,485 |
|
|
|
$ |
42,017 |
|
Advertising expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
Advertising expense by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
(140 |
) |
|
|
$ |
(78 |
) |
|
|
$ |
(243 |
) |
|
|
$ |
(143 |
) |
Direct-to-Consumer |
|
|
(2,800 |
) |
|
|
|
(501 |
) |
|
|
|
(5,416 |
) |
|
|
|
(1,111 |
) |
Secured Lending |
|
|
(48 |
) |
|
|
|
(43 |
) |
|
|
|
(102 |
) |
|
|
|
(68 |
) |
|
|
$ |
(2,988 |
) |
|
|
$ |
(622 |
) |
|
|
$ |
(5,761 |
) |
|
|
$ |
(1,322 |
) |
Precious metals held under financing arrangements
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
Precious metals held under financing arrangements by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
75,755 |
|
|
|
$ |
130,766 |
|
Secured Lending |
|
|
12,865 |
|
|
|
|
23,976 |
|
|
|
$ |
88,620 |
|
|
|
$ |
154,742 |
|
Inventories
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
Inventories by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
458,803 |
|
|
|
$ |
402,418 |
|
Direct-to-Consumer |
|
|
99,541 |
|
|
|
|
53,069 |
|
Secured Lending |
|
|
- |
|
|
|
|
2,532 |
|
|
|
$ |
558,344 |
|
|
|
$ |
458,019 |
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
Inventories by geographic region |
|
|
|
|
|
|
|
United States |
|
$ |
520,332 |
|
|
|
$ |
431,732 |
|
North America, excluding United States |
|
|
28,705 |
|
|
|
|
16,633 |
|
Europe |
|
|
7,816 |
|
|
|
|
9,451 |
|
Asia |
|
|
1,144 |
|
|
|
|
203 |
|
Australia |
|
|
347 |
|
|
|
|
— |
|
|
|
$ |
558,344 |
|
|
|
$ |
458,019 |
|
Total Assets
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
Assets by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
739,238 |
|
|
|
$ |
874,152 |
|
Eliminations |
|
|
(71,996 |
) |
|
|
|
(163,850 |
) |
Wholesale Sales & Ancillary Services, net of eliminations |
|
|
667,242 |
|
|
|
|
710,302 |
|
Direct-to-Consumer |
|
|
323,180 |
|
|
|
|
335,829 |
|
Secured Lending |
|
|
145,510 |
|
|
|
|
145,450 |
|
|
|
$ |
1,135,932 |
|
|
|
$ |
1,191,581 |
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
Assets by geographic region |
|
|
|
|
|
|
|
United States |
|
$ |
1,095,581 |
|
|
|
$ |
1,162,195 |
|
North America, excluding United States |
|
|
28,705 |
|
|
|
|
16,633 |
|
Europe |
|
|
10,155 |
|
|
|
|
12,550 |
|
Asia |
|
|
1,144 |
|
|
|
|
203 |
|
Australia |
|
|
347 |
|
|
|
|
— |
|
|
|
$ |
1,135,932 |
|
|
|
$ |
1,191,581 |
|
Long-term Assets
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
Long-term assets by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
48,510 |
|
|
|
$ |
36,174 |
|
Direct-to-Consumer |
|
|
174,932 |
|
|
|
|
188,208 |
|
Secured Lending |
|
|
2,796 |
|
|
|
|
2,972 |
|
|
|
$ |
226,238 |
|
|
|
$ |
227,354 |
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
Long-term assets by geographic region |
|
|
|
|
|
|
|
United States |
|
$ |
226,236 |
|
|
|
$ |
227,352 |
|
Europe |
|
|
2 |
|
|
|
|
2 |
|
|
|
$ |
226,238 |
|
|
|
$ |
227,354 |
|
Capital Expenditures for Property, Plant, and Equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
|
|
December 31,
2021 |
|
|
|
December 31,
2020 |
|
Capital expenditures on property, plant, and equipment by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
292 |
|
|
|
$ |
451 |
|
|
|
$ |
629 |
|
|
|
$ |
924 |
|
Direct-to-Consumer |
|
|
626 |
|
|
|
|
6 |
|
|
|
|
998 |
|
|
|
|
9 |
|
Secured Lending |
|
|
— |
|
|
|
|
4 |
|
|
|
|
— |
|
|
|
|
4 |
|
|
|
$ |
918 |
|
|
|
$ |
461 |
|
|
|
$ |
1,627 |
|
|
|
$ |
937 |
|
Goodwill and Intangible Assets
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
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 |
|
|
|
|
|
|
|
|
|
December 31,
2021 |
|
|
|
June 30,
2021 |
|
Intangibles by segment |
|
|
|
|
|
|
|
Wholesale Sales & Ancillary Services |
|
$ |
2,793 |
|
|
|
$ |
2,831 |
|
Direct-to-Consumer(1) |
|
|
75,096 |
|
|
|
|
90,802 |
|
|
|
$ |
77,889 |
|
|
|
$ |
93,633 |
|
(1)
Direct-to-Consumer segment’s intangibles balance is net of $1.3 million accumulated impairment losses.
|