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)

9 Months Ended

Mar. 31, 2015

Schedules of concentration of risk, by risk factor

Customers providing 10 percent or more of the Company's revenues for the three and nine months ended March 31, 2015 and 2014 are listed below:



in thousands
	Three Months Ended								Nine Months Ended
	March 31, 2015				March 31, 2014				March 31, 2015				March 31, 2014
	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
Total revenue	$	1,624,495	100.0	%	$	1,581,590	100.0	%	$	4,616,832	100.0	%	$	4,566,306	100.0	%
Customer concentrations
HSBC Bank USA	$	481,036	29.6	%	$	454,899	28.8	%	$	1,464,027	31.7	%	$	1,160,592	25.4	%
Total	$	481,036	29.6	%	$	454,899	28.8	%	$	1,464,027	31.7	%	$	1,160,592	25.4	%

Customers providing 10 percent or more of the Company's accounts receivable, excluding $46.3 million and $41.3 million of secured loans and derivative assets of $6.4 million and $22.2 million, as of March 31, 2015 and June 30, 2014, respectively, are listed below:



in thousands
	March 31, 2015				June 30, 2014

	Amount		Percent		Amount		Percent
Total accounts receivable, net (excluding secured loans and derivative assets)	$	55,862	100.0	%	$	39,409	100.0	%
Customer concentrations
Veris Gold	$	7,516	13.5	%	$	—	—	%
Ocean Partners	23,174		41.5		—		—
Royal Canadian Mint	8,123		14.5		2,244		5.7
Total	$	38,813	69.5	%	$	2,244	5.7	%

Customers providing 10 percent or more of the Company's secured loans as of March 31, 2015 and June 30, 2014, respectively, are listed below:



in thousands
	March 31, 2015				June 30, 2014

	Amount		Percent		Amount		Percent
Total secured loans	$	46,259	100.0	%	$	41,261	100.0	%
Customer concentrations
Customer A	$	4,900	10.6	%	$	4,200	10.3	%
Customer B	5,045		10.9		4,103		9.9
Customer C	5,000		10.8		—		—
Customer D	5,622		12.2		3,771		9.1
Total	$	20,567	44.5	%	$	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 March 31, 2015 and June 30, 2014.



in thousands
	March 31, 2015				June 30, 2014
	Carrying Amount		Fair value		Carrying Amount		Fair value

Financial assets:
Cash	$	16,201	$	16,201	$	13,193	$	13,193
Receivables, advances receivables and secured loans	102,091		102,091		80,640		80,640
Derivative assets - open sale and purchase commitments, net, included in receivable	4,380		4,380		22,170		22,170
Derivative assets - futures contracts included in receivable	2,010		2,010		—		—
Derivative assets - forward contracts included in receivable	—		—		14		14
Income taxes receivable from Former Parent	4,017		4,017		3,139		3,139
Financial liabilities:
Lines of credit	$	132,800	$	132,800	$	135,200	$	135,200
Liability for borrowed metals	6,495		6,495		8,709		8,709
Product financing obligation	48,114		48,114		24,610		24,610
Derivative liabilities - open sale and purchase commitments, net, included in payables	560		560		848		848
Derivative liabilities - futures contracts included in payables	—		—		8,078		8,078
Derivative liabilities - forward contracts included in payables	4,951		4,951		14,873		14,873
Accounts payable, margin accounts, advances and other payables	81,820		81,820		53,627		53,627
Accrued liabilities	4,475		4,475		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 March 31, 2015 and June 30, 2014 aggregated by the level in the fair value hierarchy within which the measurements fall:



	March 31, 2015
	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⁾	$	186,507	$	—	$	—	$	186,507
Derivative assets — open sale and purchase commitments, net	4,380		—		—		4,380
Derivative assets — futures contracts	2,010		—		—		2,010
Derivative assets — forward contracts	—		—		—		—
Total assets valued at fair value	$	192,897	$	—	$	—	$	192,897
Liabilities:
Liability on borrowed metals	$	6,495	$	—	$	—	$	6,495
Product financing arrangement	48,114		—		—		48,114
Liability on margin accounts	6,994		—		—		6,994
Derivative liabilities — open sales and purchase commitments, net	560		—		—		560
Derivative liabilities — future contracts	—		—		—		—
Derivative liabilities — forward contracts	4,951		—		—		4,951
Total liabilities, valued at fair value	$	67,114	$	—	$	—	$	67,114

____________________

⁽¹⁾ Commemorative coin inventory totaling $0.1 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 ⁽¹⁾	$	172,990	$	—	$	—	$	172,990
Derivative assets — open sale and purchase commitments, net	22,170		—		—		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 and nine months ended March 31, 2015 and 2014.



in thousands
	Three Months Ended						Nine Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Gain (loss) on derivative instruments:
Unrealized loss on open future commodity and forward contracts and open sale and purchase commitments, net	$	(12,866	)	$	(19,373	)	$	(2,582	)	$	(21,212	)
Realized gain (loss) on future commodity contracts, net	2,557			(1,749		)	(42,249		)	(9,932		)
Total	$	(10,309	)	$	(21,122	)	$	(44,831	)	$	(31,144	)

Schedule of earnings per share



in thousands
	Three Months Ended			Nine Months Ended
	March 31, 2015	March 31, 2014		March 31, 2015	March 31, 2014
Basic weighted average shares outstanding ⁽¹⁾	6,963	7,449	⁽²⁾	6,963	7,703	⁽²⁾
Effect of common stock equivalents — stock issuable under outstanding equity awards	99	66		99	46
Diluted weighted average shares outstanding	7,062	7,515	⁽²⁾	7,062	7,749	⁽²⁾



_________________________________
(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