Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.19.3
Segments and Geographic Information
3 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segments 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 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,
 
2019
 
2018
 
Revenue by segment (1)(2)
 
 
 
 
 
Wholesale Trading & Ancillary Services (3)
 
$
1,460,933

 
$
1,554,313

 
Direct Sales
 
20,081

(a) 
10,777

(b) 
Total revenue
 
$
1,481,014

 
$
1,565,090

 
 
 
 
 
 
 
_________________________________
 
 
 
 
 
(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 are reflected in the Wholesale Trading & Ancillary Services segment.
 
 
 
 
 
 
 
(a) Includes $8.6 million of inter-segment sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
 
 
 
 
 
 
 
(b) Includes $0.8 million of inter-segment sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment.
 
 
 
 
 
 
 

in thousands
 
 
 
Three Months Ended September 30,
 
2019
 
2018
 
Revenue by geographic region
(as determined by the shipping address or where the services were performed):
 
United States
 
$
1,105,621

 
$
1,375,636

 
Europe
 
62,102

 
90,152

 
North America, excluding United States
 
300,397

 
96,384

 
Asia Pacific
 
6,113

 
2,343

 
Africa
 
31

 
1

 
Australia
 
6,750

 
574

 
Total revenue
 
$
1,481,014

 
$
1,565,090

 
 
 
 
 
 
 
Gross Profit and Gross Margin Percentage
in thousands
 
 
 
Three Months Ended September 30,
 
2019
 
2018
 
Gross profit by segment(1)
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
6,760

 
$
7,412

 
Direct Sales
 
1,580

 
1,063

 
Total gross profit
 
$
8,340

 
$
8,475

 
Gross margin percentage by segment(1)
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
0.463
%
 
0.477
%
 
Direct Sales
 
7.868
%
 
9.864
%
 
Weighted average gross margin percentage
 
0.563
%
 
0.542
%
 
 
 
 
 
 
 
_________________________________
 
 
 
 
 
(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,
 
2019
 
2018
 
Operating income and (expenses) by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
 
 
 
 
Selling, general and administrative expenses
 
$
(5,802
)
 
$
(5,258
)
 
Interest income
 
$
2,262

 
$
2,052

 
Interest expense
 
$
(2,826
)
 
$
(1,880
)
 
Other income, net
 
$
12

 
$
248

 
Unrealized loss on foreign exchange
 
$
(122
)
 
$
(70
)
 
Secured Lending
 
 
 
 
 
Selling, general and administrative expenses
 
$
(348
)
 
$
(345
)
 
Interest income
 
$
3,506

 
$
2,499

 
Interest expense
 
$
(2,316
)
 
$
(1,477
)
 
Other income, net
 
$
42

 
$

 
Direct Sales
 
 
 
 
 
Selling, general and administrative expenses
 
$
(2,120
)
 
$
(2,116
)
 
Interest expense
 
$

 
$
(195
)
 
Other expense, net
 
$
(220
)
 
$

 
Net (loss) income before provision for income taxes
in thousands
 
 
 
Three Months Ended September 30,
 
2019
 
2018
 
Net (loss) income before provision for income taxes by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
284

 
$
2,504

 
Secured Lending
 
884

 
677

 
Direct Sales
 
(760
)
 
(1,248
)
 
Total net income before provision for income taxes
 
$
408

 
$
1,933

 
Depreciation and Amortization
in thousands
 
 
 
Three Months Ended September 30,
 
2019
 
2018
 
Depreciation and amortization by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
(397
)
 
$
(396
)
 
Secured Lending
 
(16
)
 

 
Direct Sales
 
(255
)
 
(301
)
 
Total depreciation and amortization
 
$
(668
)
 
$
(697
)
 
Advertising expense
in thousands
 
 
 
Three Months Ended September 30,
 
2019
 
2018
 
Advertising expense by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
(56
)
 
$
(107
)
 
Secured Lending
 
(3
)
 
(3
)
 
Direct Sales
 
(404
)
 
(480
)
 
Total advertising expense
 
$
(463
)
 
$
(590
)
 
Precious metals held under financing arrangements
in thousands
 
 
 
 
 
 
 
September 30, 2019
 
June 30, 2019
 
Precious metals held under financing arrangements by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
200,809

 
$
208,792

 
Total precious metals held under financing arrangements
 
$
200,809

 
$
208,792

 
 
 
 
 
 
 
Inventory
in thousands
 
 
 
 
 
 
 
September 30, 2019
 
June 30, 2019
 
Inventories by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
364,206

 
$
285,250

 
Direct Sales
 
7,992

 
7,611

 
Total inventories
 
$
372,198

 
$
292,861

 
in thousands
 
 
 
 
 
 
 
September 30, 2019
 
June 30, 2019
 
Inventories by geographic region
 
 
 
 
 
United States
 
$
358,806

 
$
280,924

 
Europe
 
6,470

 
3,944

 
North America, excluding United States
 
6,913

 
7,452

 
Asia
 
9

 
541

 
Total inventories
 
$
372,198

 
$
292,861

 
 
 
 
 
 
 
Assets
in thousands
 
 
 
 
 
 
 
September 30, 2019
 
June 30, 2019
 
Assets by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
657,621

 
$
561,902

 
Secured Lending
 
153,715

 
130,143

 
Direct Sales
 
15,861

 
13,317

 
Total assets
 
$
827,197

 
$
705,362

 
in thousands
 
 
 
 
 
 
 
September 30, 2019
 
June 30, 2019
 
Assets by geographic region
 
 
 
 
 
United States
 
$
809,457

 
$
689,287

 
Europe
 
10,818

 
8,082

 
North America, excluding United States
 
6,913

 
7,452

 
Asia
 
9

 
541

 
Total assets
 
$
827,197

 
$
705,362

 
Long-term Assets
in thousands
 
 
 
 
 
 
 
September 30, 2019
 
June 30, 2019
 
Long-term assets by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
38,889

 
$
32,816

 
Secured Lending
 
301

 
280

 
Direct Sales
 
4,772

 
3,416

 
Total long-term assets
 
$
43,962

 
$
36,512

 
in thousands
 
 
 
 
 
 
 
September 30, 2019
 
June 30, 2019
 
Long-term assets by geographic region
 
 
 
 
 
United States
 
$
43,909

 
$
36,459

 
     Europe
 
53

 
53

 
Total long-term assets
 
$
43,962

 
$
36,512

 

Capital Expenditures for Property and Equipment
in thousands
 
 
 
Three Months Ended September 30,
 
2019
 
2018
 
Capital expenditures on plant, property and equipment by segment
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
97

 
$
122

 
Secured Lending
 
37

 

 
Direct Sales
 
3

 

 
Total capital expenditures on property and equipment
 
$
137

 
$
122

 
 
 
 
 
 
 
Goodwill and Intangible Assets
in thousands
 
 
 
 
 
 
 
September 30, 2019
 
June 30, 2019
 
Goodwill and Intangibles by segment
 
 
 
 
 
Wholesale Trading & Ancillary Services
 
$
11,978

 
$
12,087

 
Direct Sales
 
2,502

 
2,646

 
Total goodwill and intangible assets
 
$
14,480

 
$
14,733