There were 350 press releases posted in the last 24 hours and 150,434 in the last 365 days.

A-Mark Precious Metals Reports Fiscal Second Quarter 2019 Results

EL SEGUNDO, Calif., Feb. 11, 2019 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading full-service provider of products and services to the global precious metals market, reported results for the fiscal second quarter ended December 31, 2018.

/EIN News/ -- Fiscal Q2 2019 Financial Highlights

  • Revenues for the three months ended December 31, 2018 decreased 35% to $1.10 billion from $1.68 billion for the three months ended December 31, 2017 and decreased 30% from $1.57 billion for the three months ended September 30, 2018
  • Gross profit for the three months ended December 31, 2018 decreased 7% to $8.3 million (0.8% of revenue) from $8.9 million (0.5% of revenue) for the three months ended December 31, 2017 and decreased 2% from $8.5 million (0.5% of revenue) for the three months ended September 30, 2018
  • Net income for the three months ended December 31, 2018 totaled $577,000 or $0.08 per diluted share, compared to net loss of $205,000 or $(0.03) per diluted share for the three months ended December 31, 2017 and net income of $1.5 million or $0.21 per diluted share for the three months ended September 30, 2018  
  • Gold ounces sold in the three months ended December 31, 2018 increased 17% to 440,000 ounces from 376,000 for the three months ended December 31, 2017 and decreased 18% from 535,000 for the three months ended September 30, 2018
  • Silver ounces sold in the three months ended December 31, 2018 increased 68% to 20.0 million ounces from 12.0 million ounces for the three months ended December 31, 2017 and increased 10% from 18.3 million from the three months ended September 30, 2018
  • As of December 31, 2018, the number of secured loans decreased 32% to 1,931 from 2,823 as of December 31, 2017 and increased 13% from 1,705 as of September 30, 2018

Fiscal Q2 2019 Financial Results
Revenues decreased 35% to $1.10 billion from $1.68 billion in the same year-ago quarter. The decrease in revenues was mainly due to lower forward sales and lower gold and silver prices, offset by an increase in the total amount of gold and silver ounces sold.

Gross profit decreased 7% to $8.3 million (0.8% of revenue) from $8.9 million (0.5% of revenue) in the same year-ago quarter. The decrease in gross profit was primarily due to lower trading profits of the Wholesale Trading & Ancillary Services segment and decreased gross profit from the company’s Direct Sales segment (i.e., Goldline).

Selling, general and administrative expenses decreased 13% to $8.1 million from $9.3 million in the same year-ago quarter. The decrease was primarily due to lower operating expenses incurred by the company’s Direct Sales segment of $1.5 million and a reduction of $0.5 million of legal expenses and investigatory acquisition costs. These reductions were partially offset by higher overall compensation costs of $0.6 million.

Interest income increased 42% to $4.7 million from $3.3 million in the same year-ago quarter. The increase was driven primarily by other finance product income, including finance fees earned related to repurchase arrangements with customers, which increased by $0.8 million compared to the same year-ago period and represented approximately 61% of the aggregate increase.

Interest expense increased 39% to $4.7 million from $3.4 million in the same year-ago quarter. The increase was primarily due to the newly issued notes payable related to the Secured Lending segment and an increase in liability on borrowed metals, partially offset by a reduction of liabilities for the Trading Credit Facility and product financing arrangements. 

Net income totaled $577,000 or $0.08 per diluted share, an improvement from net loss of $205,000 or $(0.03) per diluted share in the same year-ago quarter.

Fiscal Six Months 2019 Highlights

  • Revenues for the six months ended December 31, 2018 decreased ­­31% to $2.67 billion from $3.84 billion for the six months ended December 31, 2017
  • Gross profit for the six months ended December 31, 2018 increased 4% to $16.8 million (0.6% of revenue) from $16.2 million (0.4% of revenue) for the six months ended December 31, 2017
  • Net income for the six months ended December 31, 2018 totaled $2.1 million or $0.29 per diluted share, as compared to net income of $273,000 or $0.04 per diluted share for the six months ended December 31, 2017
  • Gold ounces sold in the six months ended December 31, 2018 increased 38% to 975,000 ounces from 708,000 for the six months ended December 31, 2017
  • Silver ounces sold in the six months ended December 31, 2018 increased 45% to 38.3 million ounces from 26.5 million for the six months ended December 31, 2017

Fiscal Six Months 2019 Financial Results
Revenues decreased 31% to $2.67 billion from $3.84 billion in the same year-ago period. The decrease was primarily due to lower forward sales and lower gold and silver prices, offset by an increase in the total amount of gold and silver ounces sold.

Gross profit increased 4% to $16.8 million (0.6% of revenue) from $16.2 million (0.4% of revenue) in the same year-ago period. The increase in gross profit was primarily due to higher gross profits from the company’s Wholesale Trading & Ancillary Services segment, offset by lower trading profits and gross profit from the Direct Sales segment (i.e., Goldline).

Selling, general and administrative expenses decreased 3% to $15.8 million from $16.3 million in the same year-ago period. The decrease was primarily due to lower operating expenses incurred by the Direct Sales segment of $0.6 million and a reduction of $0.9 million of legal and investigatory acquisition costs. The reductions were partially offset by increased overall compensation costs of $1.2 million.

Interest income increased 43% to $9.2 million from $6.4 million in the same year-ago period. This increase was driven primarily by other finance product income, including finance fees earned related to repurchase arrangements with customers, which increased by $1.7 million compared to the same year-ago period. The increase was also driven by higher interest rates and an increase in the weighted-average value of the company’s secured loan portfolio. Interest income earned from the secured loan portfolio increased by $0.4 million compared to the same year-ago period.

Interest expense increased 35% to $8.2 million from $6.1 million in the same year-ago period. The increase was primarily due to newly issued notes payable related to the Secured Lending segment and an increase in liability on borrowed metals, which was partially offset by a reduction in liabilities for the Trading Credit Facility and product financing arrangements. In comparison to the same year-ago period, interest expense increased $1.7 million related to the newly issued notes payable, $0.7 million related to the liability on borrowed metals and $0.1 million related to the Goldline Credit Facility. This was partially offset by $(0.1) million related to the Trading Credit Facility (including debt amortization costs) and $(0.2) million related to product financing arrangements. The Goldline Credit Facility was paid off in full during the period.

Net income totaled $2.1 million or $0.29 per diluted share, an improvement from $273,000 or $0.04 per diluted share in the same year-ago period.

Management Commentary 
“The second quarter was a continuation of the momentum we experienced in Q1,” said A-Mark CEO, Greg Roberts. “This achievement was driven, in part, by the favorable conditions in the precious metals market, where we saw continued price volatility, which in turn produced sustained higher demand and supply constraints.

“A-Mark’s vertically-integrated structure, and especially our minting capabilities through SilverTowne Mint, gives us a key competitive advantage by enabling us to meet surges in demand during more volatile market environments. Our financial success in the first half of the fiscal year was primarily due to higher sales volumes on both gold and silver products at our Wholesale Trading & Ancillary Services segment and sustained reductions of selling, general and administrative expenses at our Direct Sales segment over the prior year period. Additionally, we further strengthened our balance sheet by paying off the credit facility which we had used to finance our acquisition of Goldline, and which had been our highest interest rate debt instrument.

“Looking forward to the second half of the fiscal year, we have seen a 3% increase in both gold and silver prices since the end of December and have continued to experience increased volatility in the market and robust demand for A-Mark’s physical products. Moreover, the price of gold exceeded $1,300 per ounce in January for the first time in over six months. We remain cautiously optimistic about our prospects, especially given the macro backdrop and geopolitical environment, and will continue to act opportunistically to capitalize on attractive near-term trading opportunities while strategically scaling our business for long-term success.”

Conference Call
A-Mark will hold a conference call today (February 11, 2019) to discuss these financial results. The company's CEO Greg Roberts, President Thor Gjerdrum and CFO Cary Dickson will host the call at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). A question and answer session will follow management's presentation.

To participate, please dial the appropriate number at least five minutes prior to the start time and ask for the A-Mark Precious Metals conference call.

U.S. dial-in number: 1-877-407-0789
International number: 1-201-689-8562
Conference ID: 13687174

The conference call will be broadcast simultaneously and available for replay via the Investor Relations section of A-Mark’s website at www.amark.com. If you have any difficulty connecting with the conference call or webcast, please contact A-Mark’s investor relations team at 1-949-574-3860.

A replay of the call will be available after 7:30 p.m. Eastern time through February 25, 2019.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Conference ID: 13687174

About A-Mark Precious Metals
Founded in 1965, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) is a leading full-service precious metals trading company and wholesaler of gold, silver, platinum and palladium bullion and related products. The company’s global customer base includes sovereign and private mints, manufacturers and fabricators, refiners, dealers and online retailers, financial institutions, industrial users, investors, collectors and retail customers. The company conducts its operations through three complementary segments: Wholesale Trading & Ancillary Services, Secured Lending and Direct Sales.

A-Mark operates several business units in its Wholesale Trading & Ancillary Services segment, including Industrial, Coin and Bar, Trading and Finance, Transcontinental Depository Services (TDS), Logistics and Mint. Its Industrial unit services manufacturers and fabricators of products utilizing precious metals, while its Coin and Bar unit deals in over 200 different products for distribution to dealers and other qualified purchasers. As a U.S. Mint-authorized purchaser of gold, silver and platinum coins, A-Mark purchases bullion products directly from the U.S. Mint for sale to customers. A-Mark also has distributorships with other sovereign mints, including in Australia, Austria, Canada, China, Mexico, South Africa and the United Kingdom. Through its TDS subsidiary, A-Mark provides customers with storage and management solutions for precious metals worldwide. Through its A-M Global Logistics subsidiary, A-Mark provides customers an array of complementary services, including storage, shipping, and delivery of precious metals and custom coins on a secure basis. A-Mark also holds a majority stake in a joint venture that owns the minting operations known as SilverTowne Mint, which enables A-Mark to mint proprietary products as well as provides greater access to fabricated silver products.

The company operates its Secured Lending segment through its wholly-owned subsidiary, CFC. Founded in 2005, CFC is a California licensed finance lender that originates and acquires loans secured by bullion and numismatic coins. Its customers include coin and precious metal dealers, investors and collectors.

A-Mark operates its Direct Sales segment through its wholly-owned subsidiary Goldline Inc., a direct retailer of precious metals to the investor community. Goldline markets A-Mark’s precious metal products through various channels, including radio, television and the Internet.

A-Mark is headquartered in El Segundo, California and with offices and facilities in Vienna, Austria and Las Vegas, Nevada. For more information, visit www.amark.com.

Important Cautions Regarding Forward-Looking Statements
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: the failure to execute our growth strategy as planned; greater than anticipated costs incurred to execute this strategy; changes in the current international political climate which has favorably contributed to demand and volatility in the precious metals markets; increased competition for our higher margin services, which could depress pricing; the failure of our business model to respond to changes in the market environment as anticipated; general risks of doing business in the commodity markets; and other business, economic, financial and governmental risks as described in in the company’s public filings with the Securities and Exchange Commission.

The words "should," "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Additionally, any statements related to future improved performance and estimates of revenues and earnings per share are forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Company Contact:
Thor Gjerdrum, President
A-Mark Precious Metals, Inc.
310-587-1414
thor@amark.com

Investor Relations Contact:
Matt Glover
Liolios
949-574-3860
AMRK@liolios.com
                                        


A-MARK PRECIOUS METALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except for share data)

  December 31,
 2018
  June 30,
 2018
ASSETS      
Current assets:      
Cash $ 11,830     $ 6,291  
Receivables, net 23,275     35,856  
Derivative assets 1,601     7,395  
Secured loans receivable 104,757     110,424  
Precious metals held under financing arrangements 226,905     262,566  
Inventories:      
Inventories 193,872     166,176  
Restricted inventories 82,413     113,940  
  276,285     280,116  
       
Income taxes receivable 1,527     1,553  
Prepaid expenses and other assets 1,754     2,782  
Total current assets 647,934     706,983  
       
Plant, property and equipment, net 7,261     8,018  
Goodwill 8,881     8,881  
Intangibles, net 6,357     6,861  
Long-term investments 10,447     8,388  
Deferred tax assets - non-current 3,211     3,870  
Total assets $ 684,091     $ 743,001  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Lines of credit $ 139,000     $ 200,000  
Liability on borrowed metals 227,317     280,346  
Product financing arrangements 82,413     113,940  
Accounts payable 46,740     45,997  
Derivative liabilities 25,304     20,457  
Accrued liabilities 4,951     5,129  
Total current liabilities 525,725     665,869  
Debt obligation (related party)     7,226  
Notes payable (1) 86,569      
Other long-term liabilities (related party)     798  
Total liabilities 612,294     673,893  
       
Commitments and contingencies      
       
Stockholders’ equity:      
Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of December 31, 2018 and June 30, 2018      
Common stock, par value $0.01; 40,000,000 shares authorized; 7,031,450 shares issued and outstanding as of December 31, 2018 and June 30, 2018 71     71  
Additional paid-in capital 25,909     24,717  
Retained earnings 42,968     40,910  
Total A-Mark Precious Metals, Inc. stockholders’ equity 68,948     65,698  
Non-controlling interest 2,849     3,410  
Total stockholders’ equity 71,797     69,108  
Total liabilities, non-controlling interest and stockholders’ equity $ 684,091     $ 743,001  


A-MARK PRECIOUS METALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for share and per share data)

      Three Months Ended   Six Months Ended  
      December 31, 2018   December 31, 2017   December 31, 2018   December 31, 2017  
Revenues   $ 1,100,912     $ 1,680,738     $ 2,666,002     $ 3,844,528    
Cost of sales   1,092,595     1,671,822     2,649,210     3,828,306    
Gross profit   8,317     8,916     16,792     16,222    
                     
Selling, general and administrative expenses   (8,103 )   (9,349 )   (15,822 )   (16,325 )  
Interest income   4,652     3,268     9,203     6,429    
Interest expense   (4,656 )   (3,359 )   (8,208 )   (6,092 )  
Other income   682     651     930     712    
Unrealized gain (loss) on foreign exchange   52     139     (18 )   38    
Net income before provision for income taxes   944     266     2,877     984    
Income tax expense   (242 )   (324 )   (741 )   (598 )  
Net income (loss)   702     (58 )   2,136     386    
  Net gain attributable to non-controlling interest   125     147     78     113    
Net income (loss) attributable to the Company   $ 577     $ (205 )   $ 2,058     $ 273    
                     
Basic and diluted net income (loss) per share attributable to A-Mark Precious Metals, Inc.:  
Basic   $ 0.08     $ (0.03 )   $ 0.29     $ 0.04    
Diluted   $ 0.08     $ (0.03 )   $ 0.29     $ 0.04    
                   
Dividends per share   $     $ 0.08     $     $ 0.16    
                   
Weighted average shares outstanding:                  
Basic   7,031,400     7,031,400     7,031,400     7,031,400    
Diluted   7,085,600     7,031,400     7,088,700     7,113,000    


A-MARK PRECIOUS METALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)

Six Months Ended December 31,   2018   2017  
Cash flows from operating activities:          
Net income   $ 2,136     $ 386    
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Provision for doubtful accounts   (30 )      
Depreciation and amortization   1,398     1,312    
Amortization of loan cost   542     595    
Deferred income taxes   659     (211 )  
Interest added to principal of secured loans   (10 )   (29 )  
Change in accrued earn-out (non-cash)   (504 )   (529 )  
Loss on debt extinguishment   6        
Share-based compensation   553     738    
Earnings from equity method investment   (558 )   (179 )  
Changes in assets and liabilities:          
Receivables   12,611     923    
Secured loans   (737 )   (289 )  
Secured loans to Former Parent   (4,458 )   (1,502 )  
Derivative assets   5,794     17,013    
Income tax receivable   26     (663 )  
Precious metals held under financing arrangements   35,661        
Inventories   3,831     (38,035 )  
Prepaid expenses and other assets   708     (714 )  
Accounts payable   743     15,511    
Derivative liabilities   4,847     (7,162 )  
Liabilities on borrowed metals   (53,029 )   4,952    
Accrued liabilities   (109 )   (2,376 )  
Income taxes payable       (1,418 )  
Net cash provided by (used in) operating activities   10,080     (11,677 )  
Cash flows from investing activities:          
Capital expenditures for property and equipment   (138 )   (417 )  
Purchase of long-term investments   (1,500 )      
Secured loans, net   10,872     (3,913 )  
Acquisition of subsidiary, net of cash       (9,548 )  
Net cash provided by (used in) investing activities   9,234     (13,878 )  
Cash flows from financing activities:          
Product financing arrangements, net   (31,527 )   (15,182 )  
Dividends       (1,124 )  
Borrowings and repayments under lines of credit, net   (61,000 )   34,000    
Repayments on notes payable to related party   (7,500 )   (500 )  
Proceeds from issuance of notes payable   90,000     7,500    
Debt funding issuance costs   (3,748 )   (187 )  
Net cash (used in) provided by financing activities   (13,775 )   24,507    
           
Net increase (decrease) in cash, cash equivalents, and restricted cash   5,539     (1,048 )  
Cash, cash equivalents, and restricted cash, beginning of period   6,291     13,059    
Cash, cash equivalents, and restricted cash, end of period   $ 11,830     $ 12,011    


Overview of Results of Operations for the Three Months Ended December 31, 2018 and 2017

Condensed Consolidated Results of Operations

The operating results of our business for the three months ended December 31, 2018 and 2017 are as follows:

in thousands, except per share data    
Three Months Ended December 31, 2018   2017   $   %
  $   % of revenue   $   % of revenue   Increase/
(decrease)
  Increase/
(decrease)
Revenues $ 1,100,912     100.000 %   $ 1,680,738     100.000 %   $ (579,826 )   (34.5 )%
Gross profit 8,317     0.755 %   8,916     0.530 %   $ (599 )   (6.7 )%
Selling, general and administrative expenses (8,103 )   (0.736 )%   (9,349 )   (0.556 )%   $ (1,246 )   (13.3 )%
Interest income 4,652     0.423 %   3,268     0.194 %   $ 1,384     42.4 %
Interest expense (4,656 )   (0.423 )%   (3,359 )   (0.200 )%   $ 1,297     38.6 %
Other income 682     0.062 %   651     0.039 %   $ 31     4.8 %
Unrealized gain on foreign exchange 52     0.005 %   139     0.008 %   $ (87 )   (62.6 )%
Net income before provision for income taxes 944     0.086 %   266     0.016 %   $ 678     254.9 %
Income tax expense (242 )   (0.022 )%   (324 )   (0.019 )%   $ (82 )   (25.3 )%
Net income (loss) 702     0.064 %   (58 )   (0.004 )%   $ 760     1,310.3 %
  Net income attributable to non-controlling interest 125     0.011 %   147     0.009 %   $ (22 )   (15.0 )%
Net income (loss) attributable to the Company $ 577     0.052 %   $ (205 )   (0.012 )%   $ 782     381.5 %
                       
Basic and diluted net (loss) income per share attributable to A-Mark Precious Metals, Inc.:
Per Share Data:                      
Basic $ 0.08         $ (0.03 )       $ 0.11     366.7 %
Diluted $ 0.08         $ (0.03 )       $ 0.11     366.7 %
                       



Overview of Results of Operations for the Six Months Ended December 31, 2018 and 2017

Condensed Consolidated Results of Operations

The operating results of our business for the six months ended December 31, 2018 and 2017 are as follows:

in thousands, except per share data    
Six Months Ended December 31, 2018   2017   $   %
  $   % of revenue   $   % of revenue   Increase/
(decrease)
  Increase/
(decrease)
Revenues $ 2,666,002     100.000 %   $ 3,844,528     100.000 %   $ (1,178,526 )   (30.7 )%
Gross profit 16,792     0.630 %   16,222     0.422 %   $ 570     3.5 %
Selling, general and administrative expenses (15,822 )   (0.593 )%   (16,325 )   (0.425 )%   $ (503 )   (3.1 )%
Interest income 9,203     0.345 %   6,429     0.167 %   $ 2,774     43.1 %
Interest expense (8,208 )   (0.308 )%   (6,092 )   (0.159 )%   $ 2,116     34.7 %
Other income 930     0.035 %   712     0.019 %   $ 218     30.6 %
Unrealized loss on foreign exchange (18 )   (0.001 )%   38     0.001 %   $ 56     147.4 %
Net income before provision for income taxes 2,877     0.108 %   984     0.026 %   $ 1,893     192.4 %
Income tax expense (741 )   (0.028 )%   (598 )   (0.016 )%   $ 143     23.9 %
Net income 2,136     0.080 %   386     0.010 %   $ 1,750     453.4 %
  Net income attributable to non-controlling interest 78     0.003 %   113     0.003 %   $ (35 )   (31.0 )%
Net income attributable to the Company $ 2,058     0.077 %   $ 273     0.007 %   $ 1,785     653.8 %
                       
Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:
Per Share Data:                      
Basic $ 0.29         $ 0.04         $ 0.25     625.0 %
Diluted $ 0.29         $ 0.04         $ 0.25     625.0 %
                       

 

amark.jpg


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.