A-Mark Precious Metals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Sep. 30, 2014

Schedules of concentration of risk, by risk factor

Customers providing 10 percent or more of the Company's revenues for the three months ended September 30, 2014 and 2013 are listed below:



in thousands
	Three Months Ended
	September 30, 2014				September 30, 2013
	Amount		Percent		Amount		Percent
Total revenue	$	1,453,466	100.0	%	$	1,496,025	100.0	%
Customer concentrations
HSBC Bank USA	$	534,538	36.8	%	$	312,545	20.9	%
US Mint	109,223		7.5		168,680		11.3
Total	$	643,761	44.3	%	$	481,225	32.2	%

Customers providing 10 percent or more of the Company's accounts receivable, excluding $38.6 million and $41.3 million of secured loans and derivative assets of $46.2 million and $22.2 million, as of September 30, 2014 and June 30, 2014, respectively, are listed below:



in thousands
	September 30, 2014				June 30, 2014

	Amount		Percent		Amount		Percent
Total accounts receivable, net (excluding secured loans and derivative assets)	$	58,676	100.0	%	$	39,409	100.0	%
Customer concentrations
United States Mint	$	38,127	65.0	%	$	—	—	%
Veris Gold	7,103		12.1		—		—
Total	$	45,230	77.1	%	$	—	—	%

Customers providing 10 percent or more of the Company's secured loans as of September 30, 2014 and June 30, 2014, respectively, are listed below:



in thousands
	September 30, 2014				June 30, 2014

	Amount		Percent		Amount		Percent
Total secured loans	$	38,627	100.0	%	$	41,261	100.0	%
Customer concentrations
Customer A	$	5,640	14.6	%	$	3,771	9.1	%
Customer B	4,200		10.9		4,200		10.2
Customer C	4,075		10.5		4,103		10.0
Total	$	13,915	36.0	%	$	12,074	29.3	%

Schedule of financial instruments not required to be carried at fair value

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments as of September 30, 2014 and June 30, 2014.



in thousands
	September 30, 2014				June 30, 2014
	Carrying Amount		Fair value		Carrying Amount		Fair value

Financial assets:
Cash	$	4,657	$	4,657	$	13,193	$	13,193
Receivables, advances receivables and secured loans	97,273		97,273		80,640		80,640
Derivative assets - open sale and purchase commitments, net, included in receivable	2,628		2,628		22,170		22,170
Derivative assets - futures contracts included in receivable	27,071		27,071		—		—
Derivative assets - forward contracts included in receivable	16,510		16,510		14		14
Income taxes receivable from Former Parent	3,139		3,139		3,139		3,139
Financial liabilities:
Lines of credit	$	128,000	$	128,000	$	135,200	$	135,200
Liability for borrowed metals	11,998		11,998		8,709		8,709
Product financing obligation	20,613		20,613		24,610		24,610
Derivative liabilities - open sale and purchase commitments, net, included in payables	49,139		49,139		848		848
Derivative liabilities - futures contracts included in payables	—		—		8,078		8,078
Derivative liabilities - forward contracts included in payables	—		—		14,873		14,873
Accounts payable, margin accounts, advances and other payables	55,783		55,783		53,627		53,627
Accrued liabilities	3,935		3,935		6,070		6,070

Schedule of fair value, assets and liabilities measured on recurring basis

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and June 30, 2014 aggregated by the level in the fair value hierarchy within which the measurements fall:



	September 30, 2014
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
in thousands	(Level 1)		(Level 2)		(Level 3)		Total Balance
Assets:
Inventory ⁽¹⁾	$	158,424	$	—	$	—	$	158,424
Derivative assets — open sale and purchase commitments, net	2,628		—		—		2,628
Derivative assets — futures contracts	27,071		—		—		27,071
Derivative assets — forward contracts	16,510		—		—		16,510
Total assets valued at fair value	$	204,633	$	—	$	—	$	204,633
Liabilities:
Liability on borrowed metals	$	11,998	$	—	$	—	$	11,998
Product financing arrangement	20,613		—		—		20,613
Liability on margin accounts	5,333		—		—		5,333
Derivative liabilities — open sales and purchase commitments, net	49,139		—		—		49,139
Total liabilities, valued at fair value	$	87,083	$	—	$	—	$	87,083

____________________

⁽¹⁾ Commemorative coin inventory totaling $0.8 million is held at lower of cost or market and is thus excluded from this table.



	June 30, 2014
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
in thousands	(Level 1)		(Level 2)		(Level 3)		Total Balance
Assets:
Inventory	$	172,990	$	—	$	—	$	172,990
Derivative assets — open sale and purchase commitments, net	22,170		—		—		—
Derivative assets — forward contracts	14		—		—		14
Total assets, valued at fair value	$	195,174	$	—	$	—	$	195,174
Liabilities:
Liability on borrowed metals	$	8,709	$	—	$	—	$	8,709
Product financing arrangement	24,610		—		—		24,610
Liability on margin accounts	8,983		—		—		8,983
Derivative liabilities — open sale and purchase commitments, net	848		—		—		848
Derivative liabilities — futures contracts	8,078		—		—		8,078
Derivative liabilities — forward contracts	14,873		—		—		14,873
Total liabilities valued at fair value	$	66,101	$	—	$	—	$	66,101

____________________

⁽¹⁾ Commemorative coin inventory totaling $2.6 million is held at lower of cost or market and is thus excluded from this table.

Summary of net gains (losses) on derivative instruments

Below, is a summary of the net gains (losses) on derivative instruments for the three months ended September 30, 2014 and 2013.



in thousands
	Three Months Ended
	September 30, 2014			September 30, 2013
Gain (loss) on derivative instruments:
Unrealized gain (loss) on open future commodity and forward contracts and open sale and purchase commitments, net	$	1,278		$	(15,886	)
Realized loss on future commodity contracts, net	(7,634		)	(1,703		)
Total	$	(6,356	)	$	(17,589	)

Schedule of earnings per share



in thousands
	Three Months Ended
	September 30, 2014	September 30, 2013
Basic weighted average shares outstanding ⁽¹⁾⁽²⁾	6,963	7,730
Effect of common stock equivalents — stock issuable under outstanding equity awards	103	145
Diluted weighted average shares outstanding ⁽²⁾	7,066	7,875



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(1)		Basic weighted average shares outstanding include the effect of vested but unissued restricted stock grants.
(2)		Basic and diluted income per share was based on historical SGI basic and fully diluted share figures through March 14, 2014, the distribution date. Amounts shown were retroactively adjusted to give effect for the share distribution in connection with the spinoff, on the basis of one share of A-Mark stock issued for every four shares of SGI stock held through the distribution date. Thereafter, basic and diluted income per share was based on the Company's basic and fully diluted share figures.

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References + Details

- Definition

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

+ References + Details