A-Mark Precious Metals Reports Fiscal First Quarter 2025 Results
Diluted Earnings per Share of $0.37
Company Reaffirms Regular Quarterly Cash Dividend of $0.20 per share
$422.5MM Credit Facility Extended to September 2026
EL SEGUNDO, Calif., Nov. 06, 2024 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, reported results for the fiscal first quarter ended September 30, 2024.
Management Commentary
"Our first quarter results reflect the continued strength of our fully-integrated platform,” said A-Mark CEO Greg Roberts. "Despite slower market conditions marked by elevated precious metals prices and subdued demand, we delivered $0.37 per diluted share and generated $17.8 million in non-GAAP EBITDA.
"We also took significant steps this quarter to continue to position the business for long-term success. We amended our $422.5 million Trading Credit Facility, extending its maturity date to September 30, 2026, providing the company with stable, long term access to capital for the business. We also made significant progress on our A-Mark Global Logistics (AMGL) facility expansion and logistics automation initiatives. The expected completion in the coming months is anticipated to increase operational capacity and produce efficiencies and long term cost savings. We are also advancing our reach in Asia and have made substantial progress towards establishing a trading office and DTC presence in Singapore and broadening our reach into the surrounding region.
"As noted in our recent press release, during October, Silver Towne Mint acquired all of the assets of Regency Mint Manufacturing, LLC, including its minting equipment and its customer list, further enhancing our minting capacity and expanding our customer base. We are pleased with our recent accomplishments and remain optimistic that our proven integrated business model will allow us to sustain profitability. We remain committed to exploring opportunities that enhance our market reach and deliver value to our shareholders over the long term.”
| Three Months Ended September 30, | |||||||||
| 2024 | 2023
| ||||||||
| (in thousands, except Earnings per Share) | |||||||||
| Selected Key Financial Statement Metrics: | |||||||||
| Revenues | $ | 2,715,096 | $ | 2,484,618 | |||||
| Gross profit | $ | 43,443 | $ | 49,405 | |||||
| Depreciation and amortization expense | $ | (4,709 | ) | $ | (2,792 | ) | |||
| Net income attributable to the Company | $ | 8,984 | $ | 18,827 | |||||
| Earnings per Share: | |||||||||
| Basic | $ | 0.39 | $ | 0.81 | |||||
| Diluted | $ | 0.37 | $ | 0.77 | |||||
| Non-GAAP Measures (1): | |||||||||
| Adjusted net income before provision for income taxes | $ | 14,784 | $ | 26,779 | |||||
| EBITDA | $ | 17,782 | $ | 30,448 | |||||
| (1) See Reconciliation of U.S. GAAP to Non-GAAP Measures below and on pages 17-18 | |||||||||
| A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the three months ended September 30, 2024 and 2023 follows (in thousands): | |||||||||
| Three Months Ended September 30, | |||||||||
| 2024 | 2023 | ||||||||
| Net income before provision for income taxes | $ | 10,173 | $ | 23,935 | |||||
| Adjustments: | |||||||||
| Contingent consideration fair value adjustments | (150 | ) | - | ||||||
| Acquisition costs | 52 | 52 | |||||||
| Amortization of acquired intangibles | 3,864 | 2,165 | |||||||
| Depreciation expense | 845 | 627 | |||||||
| Adjusted net income before provision for income taxes (non-GAAP) | $ | 14,784 | $ | 26,779 | |||||
| Three Months Ended | |||||||||
| September 30, 2024 | June 30, 2024 | ||||||||
| (in thousands, except Earnings per Share) | |||||||||
| Selected Key Financial Statement Metrics: | |||||||||
| Revenues | $ | 2,715,096 | $ | 2,524,955 | |||||
| Gross profit | $ | 43,443 | $ | 42,971 | |||||
| Depreciation and amortization expense | $ | (4,709 | ) | $ | (2,845 | ) | |||
| Net income attributable to the Company | $ | 8,984 | $ | 30,940 | |||||
| Earnings per Share: | |||||||||
| Basic | $ | 0.39 | $ | 1.35 | |||||
| Diluted | $ | 0.37 | $ | 1.29 | |||||
| Non-GAAP Measures (1): | |||||||||
| Adjusted net income before provision for income taxes | $ | 14,784 | $ | 20,144 | |||||
| EBITDA | $ | 17,782 | $ | 38,380 | |||||
| (1) See Reconciliation of U.S. GAAP to Non-GAAP Measures below and on pages 17-18 | |||||||||
| A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the three months ended September 30, 2024 and June 30, 2024 follows (in thousands): | |||||||||
| Three Months Ended | |||||||||
| September 30, 2024 | June 30,
| ||||||||
| Net income before provision for income taxes | $ | 10,173 | $ | 33,975 | |||||
| Adjustments: | |||||||||
| Remeasurement gain on pre-existing equity interest | - | (16,669 | ) | ||||||
| Contingent consideration fair value adjustments | (150 | ) | (370 | ) | |||||
| Acquisition costs | 52 | 363 | |||||||
| Amortization of acquired intangibles | 3,864 | 2,066 | |||||||
| Depreciation expense | 845 | 779 | |||||||
| Adjusted net income before provision for income taxes (non-GAAP) | $ | 14,784 | $ | 20,144 | |||||
- Revenues for the three months ended September 30, 2024 increased 9% to $2.72 billion from $2.48 billion for the three months ended September 30, 2023 and increased 8% from $2.52 billion for the three months ended June 30, 2024. Excluding an increase of $217.4 million of forward sales, our revenues increased $13.1 million, or 0.9%, compared to the prior year fiscal first quarter. Excluding an increase of $335.0 million of forward sales, our revenues decreased $144.8 million, or 9.0%, compared to the prior quarter
- Gross profit for the three months ended September 30, 2024 decreased 12% to $43.4 million from $49.4 million for the three months ended September 30, 2023 and increased 1% from $43.0 million for the three months ended June 30, 2024
- Gross profit margin for the three months ended September 30, 2024 decreased to 1.60% of revenue, from 1.99% of revenue for the three months ended September 30, 2023, and declined from 1.70% of revenue in the three months ended June 30, 2024
- Net income attributable to the Company for the three months ended September 30, 2024 decreased 52% to $9.0 million from $18.8 million for the three months ended September 30, 2023, and decreased 71% from $30.9 million for the three months ended June 30, 2024
- Diluted earnings per share totaled $0.37 for the three months ended September 30, 2024, a 52% decrease compared to $0.77 for the three months ended September 30, 2023, and decreased 71% from $1.29 for the three months ended June 30, 2024. Excluding the impact of the $16.7 million one-time remeasurement gain recorded during the three months ended June 30, 2024 related to the Silver Gold Bull incremental investment, diluted earnings per share decreased 37% from $0.59 for the three months ended June 30, 2024
- Adjusted net income before provision for income taxes, depreciation, amortization, acquisition costs, remeasurement gains or losses, and contingent consideration fair value adjustments ("Adjusted net income before provision for income taxes” or "Adjusted net income”), a non-GAAP financial performance measure, for the three months ended September 30, 2024 decreased 45% to $14.8 million from $26.8 million for the three months ended September 30, 2023, and decreased 27% from $20.1 million for the three months ended June 30, 2024
- Earnings before interest, taxes, depreciation and amortization ("EBITDA”), a non-GAAP liquidity measure, for the three months ended September 30, 2024 decreased 42% to $17.8 million from $30.4 million for the three months ended September 30, 2023, and decreased 54% from $38.4 million for the three months ended June 30, 2024
| Three Months Ended September 30, | |||||||||
| 2024 | 2023 | ||||||||
| Selected Operating and Financial Metrics: | |||||||||
| Gold ounces sold (1) | 398,000 | 495,000 | |||||||
| Silver ounces sold (2) | 20,449,000 | 30,378,000 | |||||||
| Number of secured loans at period end (3) | 562 | 803 | |||||||
| Secured loans receivable at period end | $ | 101,887,000 | $ | 99,167,000 | |||||
| Direct-to-Consumer ("DTC") number of new customers (4) | 55,300 | 39,100 | |||||||
| Direct-to-Consumer number of active customers (5) | 129,900 | 106,400 | |||||||
| Direct-to-Consumer number of total customers (6) | 3,122,100 | 2,387,400 | |||||||
| Direct-to-Consumer average order value ("AOV") (7) | $ | 2,967 | $ | 2,440 | |||||
| JM Bullion ("JMB") average order value (8) | $ | 2,198 | $ | 2,239 | |||||
| CyberMetals number of new customers (9) | 1,500 | 2,400 | |||||||
| CyberMetals number of active customers (10) | 1,700 | 2,500 | |||||||
| CyberMetals number of total customers (11) | 31,100 | 24,800 | |||||||
| CyberMetals customer assets under management at period end (12) | $ | 8,300,000 | $ | 6,000,000 | |||||
| (1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. | |||||||||
| (2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. | |||||||||
| (3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period. | |||||||||
| (4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. | |||||||||
| (5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. | |||||||||
| (6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. | |||||||||
| (7) DTC AOV represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. | |||||||||
| (8) JMB AOV represents the average dollar value of product orders delivered to JMB's customers during the period. | |||||||||
| (9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or have made a purchase for the first time during the period on the CyberMetals platform. | |||||||||
| (10) CyberMetals number of active customers represents the number of customers that have made a purchase during any month during the period from the CyberMetals platform. | |||||||||
| (11) CyberMetals number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past from the CyberMetals platform. | |||||||||
| (12) CyberMetals customer assets under management represents the total value of assets managed by the Company on behalf of CyberMetals customers. | |||||||||
| Three Months Ended | |||||||||
| September 30,
2024 | June 30,2024 | ||||||||
| Selected Operating and Financial Metrics: | |||||||||
| Gold ounces sold (1) | 398,000 | 448,000 | |||||||
| Silver ounces sold (2) |
| ||||||||