UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value AMRK NASDAQ Global Select Market Securities registered under Section 12 (g) of the Exchange Act: None FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Start Time: 16:30 End Time: 17:20 March 1, 0000 ET Q4 2020 Earnings Conference Call September 10, 2020, 16:30 PM ET Company Participants Gregory Roberts - CEO Kathleen Simpson-Taylor - CFO Thor Gjerdrum - President Conference Call Participants Andrew Scutt - ROTH Capital Chris Sakai - Singular Research Richard Greulich - REG Capital Advisors Richard Fearon - Accretive Capital Partners Operator Good afternoon, and welcome to A-Mark Precious Metals Conference Call for the Fiscal Fourth Quarter and Full Year e ...

A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q3 2020 Earnings Conference Call May 7, 2020 4:30 PM ET Company Participants Gregory Roberts - Chief Executive Officer Kathleen Simpson-Taylor - Chief Financial Officer Thor Gjerdrum - President Conference Call Participants Joichi Sakai - Singular Research, LLC Jayme Wiggins - Palm Valley Capital Management LLC Mitchell Almy - Wedbush Securities Inc. Operator Good afternoon, and welcome to A-Mark Precious Metals Conference Call for the Fiscal Third Quarter ended Ma ...

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) Presents the company's condensed consolidated financial statements and management's analysis of financial condition and results of operations [Item 1. Condensed Consolidated Financial Statements](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company's condensed consolidated financial statements for the period ended March 31, 2020, reveal a significant increase in net income and total assets, with details on operating segments and accounting policies [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the company's financial position, including assets, liabilities, and equity, as of specific reporting dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2020 | June 30, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$940,957** | **$705,362** | | Cash | $95,503 | $8,320 | | Receivables, net | $96,753 | $26,895 | | Inventories | $413,129 | $292,861 | | **Total Liabilities** | **$854,590** | **$632,796** | | Lines of credit | $175,000 | $167,000 | | Accounts payable and other current liabilities | $231,920 | $62,180 | | **Total Stockholders' Equity** | **$86,367** | **$72,566** | - The company consolidates a variable interest entity (VIE), AM Capital Funding, LLC (AMCF), which holds total assets of **$107.1 million** as of March 31, 2020, primarily consisting of cash, secured loans, and inventories[8](index=8&type=chunk)[10](index=10&type=chunk) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Reports the company's revenues, expenses, and net income over specific periods Key Income Statement Data (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2020 | Three Months Ended Mar 31, 2019 | Nine Months Ended Mar 31, 2020 | Nine Months Ended Mar 31, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$1,258,722** | **$1,266,986** | **$3,795,326** | **$3,932,988** | | **Gross Profit** | **$22,475** | **$8,716** | **$38,946** | **$25,508** | | **Net Income** | **$11,608** | **$961** | **$13,166** | **$3,097** | | Net Income Attributable to Company | $11,321 | $990 | $12,683 | $3,048 | | **Diluted EPS** | **$1.61** | **$0.14** | **$1.80** | **$0.43** | - Gross profit for the third quarter of fiscal 2020 increased significantly to **$22.5 million** from **$8.7 million** in the prior-year quarter, driving a substantial increase in net income and EPS despite slightly lower revenues[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes the cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary for Nine Months Ended March 31 (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(13,775) | $20,359 | | Net cash provided by (used in) investing activities | $66,034 | $(5,656) | | Net cash provided by (used in) financing activities | $34,924 | $(16,245) | | **Net increase (decrease) in cash** | **$87,183** | **$(1,542)** | - For the nine months ended March 31, 2020, the company experienced a net cash outflow from operations of **$13.8 million**, a significant shift from a **$20.4 million** inflow in the prior year, primarily due to changes in working capital items like receivables and inventories[17](index=17&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the condensed consolidated financial statements - The company operates in three reportable segments: Wholesale Trading & Ancillary Services, Secured Lending, and Direct Sales[19](index=19&type=chunk) - Effective July 1, 2019, the company adopted the new lease accounting standard (ASU 2016-02, Topic 842), resulting in the recognition of right-of-use assets of approximately **$5.3 million** and lease liabilities of approximately **$6.3 million**[97](index=97&type=chunk) - The company utilizes derivative instruments, such as futures and forward contracts, to hedge its inventory and mitigate market risk associated with precious metals price changes. Gains and losses on these instruments are substantially offset by changes in the fair market value of the underlying inventory[159](index=159&type=chunk)[161](index=161&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant increase in Q3 FY2020 profitability to COVID-19-driven market volatility, detailing segment performance, liquidity, and critical accounting policies [Executive Overview](index=47&type=section&id=Executive%20Overview) Introduces the company's business segments, strategic focus, and the impact of significant events like the COVID-19 pandemic on operations - The company's business is organized into three reportable segments: Wholesale Trading & Ancillary Services, Secured Lending, and Direct Sales[279](index=279&type=chunk) - The company's strategy focuses on growth by leveraging its integrated operations, including customer relationships, access to suppliers, trading systems, and logistics capabilities[292](index=292&type=chunk) - The COVID-19 pandemic has positively affected trading revenues and gross profit due to increased volatility and demand for precious metals, but has also negatively impacted the secured lending portfolio as customers paid off loans during a temporary price drop[315](index=315&type=chunk)[316](index=316&type=chunk)[317](index=317&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, highlighting revenue, gross profit, and net income changes, and the impact of operational expenses and tax rates Q3 FY2020 vs Q3 FY2019 Performance (in thousands) | Metric | Q3 2020 | Q3 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $1,258,722 | $1,266,986 | (0.7)% | | Gross Profit | $22,475 | $8,716 | 157.9% | | Net Income | $11,608 | $961 | 1107.9% | - The increase in gross profit for Q3 2020 was driven by higher sales volumes of gold and silver (up **7.2%** and **53.6%** in ounces sold, respectively) and significantly wider trading spreads resulting from market volatility and supply constraints[329](index=329&type=chunk)[330](index=330&type=chunk)[337](index=337&type=chunk) - Selling, general, and administrative expenses increased by **25.8%** in Q3 2020 compared to the prior year, primarily due to a **$2.3 million** increase in performance-based compensation accruals[342](index=342&type=chunk) - The effective tax rate for Q3 2020 was **13.5%**, down from **29.5%** in Q3 2019, largely due to the income tax rate benefit from carrying back NOLs under the newly enacted CARES Act[360](index=360&type=chunk) [Segment Results of Operations](index=60&type=section&id=Segment%20Results%20of%20Operations) Provides a detailed breakdown of financial performance across the Wholesale Trading & Ancillary Services, Secured Lending, and Direct Sales segments Net Income (Loss) Before Tax by Segment - Q3 (in thousands) | Segment | Q3 2020 | Q3 2019 | | :--- | :--- | :--- | | Wholesale Trading & Ancillary Services | $11,439 | $1,304 | | Secured Lending | $1,006 | $523 | | Direct Sales | $977 | $(464) | - The Wholesale Trading & Ancillary Services segment's gross profit surged by **184.8%** to **$19.7 million** in Q3 2020, driven by a **57.2%** increase in trading ticket volume and wider spreads[365](index=365&type=chunk)[376](index=376&type=chunk) - The Secured Lending segment's interest income grew **30.3%** to **$3.6 million** in Q3 2020 due to higher average loan balances, despite an **83.3%** decrease in the number of loans outstanding at period-end caused by liquidations during a price decline[391](index=391&type=chunk)[395](index=395&type=chunk) - The Direct Sales segment's gross profit increased **53.0%** to **$2.7 million** in Q3 2020, driven by a **140%** increase in gold ounces sold and higher premiums, while SG&A expenses decreased by **22.1%** due to cost reduction efforts[403](index=403&type=chunk)[417](index=417&type=chunk) [Liquidity and Financial Condition](index=73&type=section&id=Liquidity%20and%20Financial%20Condition) Assesses the company's ability to meet its short-term and long-term financial obligations, detailing sources of liquidity and cash flow activities - The company's primary sources of liquidity are cash from operations, its Trading Credit Facility, notes payable, liabilities on borrowed metals, and product financing arrangements[422](index=422&type=chunk)[426](index=426&type=chunk) - As of March 31, 2020, the company had access to up to **$270.0 million** under its renewed Trading Credit Facility, with **$175.0 million** drawn[426](index=426&type=chunk) - For the nine months ended March 31, 2020, cash from financing activities was a source of **$34.9 million**, while operating activities used **$13.8 million**, a reversal from the prior year, mainly due to working capital changes[435](index=435&type=chunk)[436](index=436&type=chunk)[438](index=438&type=chunk) [Item 4. Controls and Procedures](index=82&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2020, with no material changes to internal control over financial reporting or impact from the COVID-19 pandemic - The company's Certifying Officers concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[474](index=474&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[476](index=476&type=chunk) [PART II - OTHER INFORMATION](index=83&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) Provides additional disclosures including risk factors, unregistered sales of equity securities, and a list of exhibits [Item 1A. Risk Factors](index=83&type=section&id=Item%201A.%20Risk%20Factors) The company identifies key risks including dependence on its Trading Credit Facility, potential losses from financing, customer concentration, supply chain disruptions, commodity price volatility, and cybersecurity threats - The business is heavily dependent on its uncommitted demand Trading Credit Facility, which matures in March 2021. Lenders can decline to make loans at any time, and a failure to renew or replace the facility could severely limit operations[483](index=483&type=chunk)[484](index=484&type=chunk)[486](index=486&type=chunk) - The COVID-19 pandemic poses significant risks, including potential facility closures due to infection, disruption of third-party transportation, counterparty financial distress, and supply chain interruptions from mints and refineries[504](index=504&type=chunk) - The company faces significant customer concentration risk, with three customers accounting for **34.7%** of revenues for the nine months ended March 31, 2020[497](index=497&type=chunk) - The business is exposed to commodity price risks. While the company maintains a policy to be substantially hedged, there is a risk of default by hedging counterparties, which could have a material adverse effect[544](index=544&type=chunk)[545](index=545&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=93&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's authorized 500,000-share repurchase program, approved in April 2018, had no shares repurchased as of March 31, 2020 - As of March 31, 2020, no shares have been repurchased under the company's authorized **500,000-share** repurchase program[557](index=557&type=chunk) [Item 6. Exhibits](index=94&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including Sarbanes-Oxley Act certifications and XBRL data files, incorporating previously filed documents by reference - Key exhibits filed with this report include Sarbanes-Oxley Act certifications (302 and 906) and XBRL data files[560](index=560&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2019 OR For the transition period from ________ to ________ o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 0 ...

A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q1 2020 Earnings Conference Call November 7, 2019 4:30 PM ET Company Participants Gregory Roberts - Chief Executive Officer Kathleen Simpson-Taylor - Executive Vice President, Controller and Assistant Secretary Thor Gjerdrum - President Conference Call Participants Chris Sakai - Singular Research. Mitch Almy - Wedbush Securities Richard Fearon - Accretive Capital Partners, LLC Operator Good afternoon, and welcome to A-Mark Precious Metals Conference Call for the Fi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: ...

Part I [Item 1. Description of Business](index=4&type=section&id=Item%201.%20Description%20of%20Business) A-Mark is a full-service precious metals trading company operating in wholesale, lending, and direct sales [Overview and History](index=4&type=section&id=Overview%20and%20History) A-Mark, founded in 1965, expanded its precious metals services to include financing, storage, and direct sales - A-Mark is a full-service precious metals trading company, acting as a wholesaler of gold, silver, platinum, and palladium bullion and related products[5](index=5&type=chunk) - The company's customer base includes mints, manufacturers, refiners, dealers, financial institutions, industrial users, investors, and retail customers across five continents[6](index=6&type=chunk) - Key historical developments include becoming an authorized purchaser for the U.S. Mint in 1986, launching financing subsidiary CFC in 2005, acquiring the Goldline retail business in 2017, and forming the AMCF financing vehicle in 2018[9](index=9&type=chunk)[10](index=10&type=chunk)[15](index=15&type=chunk) [Business Segments](index=7&type=section&id=Business%20Segments) The company operates three segments: Wholesale Trading, Secured Lending, and Direct Sales - The **Wholesale Trading & Ancillary Services** segment is the core business, dealing in over 200 different products and serving industrial users, coin dealers, and financial institutions. It is an authorized distributor for all major sovereign mints[18](index=18&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk) - The **Secured Lending** segment, operated by subsidiary CFC, provides commercial loans collateralized by bullion and numismatic coins. As of June 30, 2019, it had an aggregate loan balance of approximately **$125.3 million**[31](index=31&type=chunk) - The **Direct Sales** segment, operated by subsidiary Goldline, markets precious metals directly to retail investors via radio, internet, and telephonic sales, enhancing the company's distribution capabilities[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) [Business Operations and Strategy](index=6&type=section&id=Business%20Operations%20and%20Strategy) A-Mark's strategy leverages integrated operations and hedging to grow globally, facing competition and customer concentration - The business strategy focuses on leveraging integrated operations, an extensive customer base, secured financing capabilities, and access to primary suppliers to expand globally[16](index=16&type=chunk) - The company depends on its ability to obtain financing, primarily through an uncommitted line of credit of up to **$260.0 million** and **$100.0 million** in fixed-rate notes issued in September 2018[43](index=43&type=chunk) - A-Mark's policy is to remain substantially hedged against its inventory position and commitments to minimize the effect of commodity price changes, using financial derivatives like forward and futures contracts[46](index=46&type=chunk) - For the year ended June 30, 2019, one customer, HSBC Bank USA, comprised **26.0%** of revenues, primarily from forward contract sales activity used for hedging[53](index=53&type=chunk)[73](index=73&type=chunk) [Item 1A. Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from credit facility dependence, customer concentration, commodity volatility, and stock characteristics [Risks Relating to Our Business Generally](index=13&type=section&id=Risks%20Relating%20to%20Our%20Business%20Generally) Key business risks include reliance on an uncommitted credit facility, financing losses, customer concentration, and regulatory compliance - The business is heavily dependent on its Trading Credit Facility, which is an uncommitted demand facility that lenders may decline to fund at any time in their sole discretion[60](index=60&type=chunk)[61](index=61&type=chunk) - One customer represented **26.0%** of revenues for the year ended June 30, 2019, creating a significant customer concentration risk[73](index=73&type=chunk) - The business is subject to the risk of loss, damage, or theft of its significant quantities of high-value precious metals held on-site, at third-party depositories, and in transit[76](index=76&type=chunk) - Compliance with new data protection regulations like the EU's GDPR and California's CCPA could increase costs and expose the company to significant penalties for violations[104](index=104&type=chunk)[106](index=106&type=chunk) [Risks Relating to Commodities](index=19&type=section&id=Risks%20Relating%20to%20Commodities) Profitability is sensitive to commodity price volatility, with risks from hedging counterparty defaults and inventory capacity - A primary driver of profitability is volatility in commodities prices; stagnant prices would likely reduce trading activity and demand for the company's services[114](index=114&type=chunk) - Although the company's policy is to remain substantially hedged, there is a risk of default by counterparties to the hedge, which could have a material adverse effect[116](index=116&type=chunk)[117](index=117&type=chunk) [Risks Relating to Our Common Stock](index=20&type=section&id=Risks%20Relating%20to%20Our%20Common%20Stock) Common stock risks include dividend suspension, anti-takeover provisions, and significant ownership concentration - The company has not paid a dividend since January 2018, and there is no assurance that it will resume paying dividends in the future[122](index=122&type=chunk)[123](index=123&type=chunk) - Board members and management beneficially own approximately **40%** of the outstanding common stock, giving them substantial influence over matters requiring a shareholder vote[127](index=127&type=chunk) [Item 2. Properties](index=21&type=section&id=Item%202.%20Properties) The company operates from five owned or leased properties, including its headquarters and minting facility | Location | General Use of Facility | Square Footage | Ownership | Lease Term/Expiration | | :--- | :--- | :--- | :--- | :--- | | El Segundo, California | Corporate headquarters, trading desk, secured lending, marketing, and back-office operations | 9,000 | Leased | March 2026 | | Los Angeles, California | Direct Sales operations | 21,500 | Leased | February 2022 | | Las Vegas, Nevada | Storage and fulfillment logistics operations | 17,600 | Leased | April 2025 | | Winchester, Indiana | Minting operations | 11,400 | Owned | — | | Vienna, Austria | International marketing support operations | 248 | Leased | every three months | [Item 3. Legal Proceedings](index=22&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in incidental legal proceedings, but management does not expect a material adverse financial impact - The company does not expect that current legal proceedings or claims will have any material adverse impact on its future consolidated financial position, results of operations, or cash flows[132](index=132&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures are reported - None[132](index=132&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ, with no dividends paid since 2018 and no shares repurchased | Quarter | 2019 High | 2019 Low | 2018 High | 2018 Low | | :--- | :--- | :--- | :--- | :--- | | First | $13.80 | $12.05 | $18.82 | $14.76 | | Second | $13.89 | $10.99 | $16.96 | $12.56 | | Third | $13.35 | $11.43 | $14.65 | $10.78 | | Fourth | $13.60 | $10.90 | $14.06 | $12.00 | - A stock repurchase program for up to **500,000 shares** was authorized in April 2018, but as of September 6, 2019, no shares have been repurchased under this program[137](index=137&type=chunk)[138](index=138&type=chunk) - The company has not made a dividend payment since January 2018, as the Board of Directors assesses capital resources quarterly to determine if a dividend is appropriate[141](index=141&type=chunk)[142](index=142&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes FY2019 financial performance, noting decreased revenues but increased gross profit and net income [Consolidated Results of Operations](index=30&type=section&id=Consolidated%20Results%20of%20Operations) FY2019 revenues decreased to $4.78 billion, but gross profit increased, resulting in $2.2 million net income | Metric | FY 2019 | FY 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $4,783.2M | $7,606.2M | (37.1)% | | Gross Profit | $32.0M | $29.4M | 8.5% | | Net Income (Loss) Attributable to Company | $2.2M | ($3.4M) | 165.5% | | Diluted EPS | $0.31 | ($0.48) | 164.6% | - The **$2.82 billion** decrease in revenue was primarily due to lower forward sales (approx. **$2.8 billion**), which are used for hedging and have a negligible impact on gross margins[173](index=173&type=chunk)[174](index=174&type=chunk) - Gold ounces sold decreased by **5.9%** to **1.80 million ounces**, while silver ounces sold increased by **45.5%** to **67.62 million ounces**[168](index=168&type=chunk)[173](index=173&type=chunk) - Interest income increased **19.7%** to **$19.3 million**, driven by higher interest rates and a larger secured loan portfolio, while interest expense rose **23.4%** to **$17.1 million** due to higher average debt levels and rates[177](index=177&type=chunk)[178](index=178&type=chunk) [Segment Results of Operations](index=35&type=section&id=Segment%20Results%20of%20Operations) Wholesale revenue decreased, but gross profit improved across segments, with Secured Lending income growing | Segment | Metric | FY 2019 | FY 2018 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Wholesale Trading** | Revenue | $4,733.8M | $7,538.9M | (37.2)% | | | Gross Profit | $26.3M | $24.1M | 9.0% | | **Secured Lending** | Interest Income | $10.7M | $9.6M | 10.6% | | | Net Income Before Tax | $2.1M | $2.5M | (14.1)% | | **Direct Sales** | Revenue | $49.4M | $67.4M | (26.8)% | | | Gross Profit | $5.7M | $5.3M | 6.6% | [Liquidity and Financial Condition](index=43&type=section&id=Liquidity%20and%20Financial%20Condition) Liquidity is supported by operations and financing, including a $260 million credit facility and securitization notes - A substantial portion of assets (**94%**) are liquid, consisting of cash, receivables, derivatives, secured loans, and inventory measured at fair value[215](index=215&type=chunk) - The company renewed its uncommitted Trading Credit Facility, providing access up to **$260.0 million**, scheduled to mature on March 27, 2020[216](index=216&type=chunk) - In September 2018, the company completed a securitization, issuing **$100.0 million** in notes with a maturity date of December 15, 2023, providing an additional source of funding[219](index=219&type=chunk) [Item 8. Consolidated Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for FY2019 and FY2018, with detailed notes [Consolidated Financial Statements](index=52&type=section&id=Consolidated%20Financial%20Statements) The audited financial statements show FY2019 assets of $705.4 million, liabilities of $632.8 million, and $2.23 million net income | Balance Sheet (in thousands) | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | | Total Current Assets | $668,850 | $706,983 | | **Total Assets** | **$705,362** | **$743,001** | | Total Current Liabilities | $540,937 | $665,869 | | **Total Liabilities** | **$632,796** | **$673,893** | | **Total Stockholders' Equity** | **$72,566** | **$69,108** | | Statement of Operations (in thousands) | Year Ended June 30, 2019 | Year Ended June 30, 2018 | | :--- | :--- | :--- | | Revenues | $4,783,157 | $7,606,248 | | Gross Profit | $31,958 | $29,443 | | Net Income (Loss) Attributable to Company | $2,225 | ($3,397) | [Notes to Consolidated Financial Statements](index=61&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segments, and financial components, including fair value, loans, hedging, and financing - Note 11 details the company's hedging strategy, which uses derivative instruments like forwards and futures to manage commodity price risk. Net losses on derivative instruments were **$(1.1) million** in FY2019, compared to gains of **$15.6 million** in FY2018, which were substantially offset by changes in the fair value of inventory[355](index=355&type=chunk)[364](index=364&type=chunk) - Note 13 discloses significant transactions with related parties, including Stack's Bowers Galleries and equity method investees. Sales to related parties totaled **$551.9 million** in FY2019[383](index=383&type=chunk)[388](index=388&type=chunk) - Note 14 describes the company's major financing agreements, including the **$260.0 million** Trading Credit Facility and the **$100.0 million** securitization (Notes Payable) completed in September 2018[393](index=393&type=chunk)[395](index=395&type=chunk) [Item 9A. Controls and Procedures](index=107&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal financial reporting controls were effective as of June 30, 2019 - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[447](index=447&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of June 30, 2019[449](index=449&type=chunk) - In Q4 2019, a new financial accounting system was implemented for the Secured Lending segment, which was a change in internal control over financial reporting[451](index=451&type=chunk) Part III [Items 10-14](index=108&type=section&id=Items%2010-14) Information for Items 10-14, covering governance, compensation, and related transactions, is incorporated by reference - The information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the Company's Proxy Statement[453](index=453&type=chunk)[454](index=454&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=108&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K, including financial statements and exhibits - This section lists the financial statements filed with the report and incorporates the Exhibit Index by reference[455](index=455&type=chunk)[456](index=456&type=chunk)

Financial Data and Key Metrics Changes - Revenues for fiscal Q4 2019 decreased 52% to $850 million from $1.77 billion in Q4 of the previous year, primarily due to lower forward sales and gold ounces sold [6][7] - For the full year, revenues decreased 37% to $4.78 billion from $7.61 billion, mainly due to lower forward sales and lower gold and silver prices [6][7] - Gross profit for Q4 2019 increased 11% to $6.5 million, while for the full year, gross profit increased 9% to $32 million [8][9] - Interest income for Q4 2019 decreased 6% to $5.3 million, but for the full year, it increased 20% to $19.3 million [10][11] - Net loss for Q4 2019 totaled $823,000, an improvement from a net loss of $3 million in Q4 of the previous year; full-year net income was $2.2 million compared to a net loss of $3.4 million in fiscal 2018 [12] Business Line Data and Key Metrics Changes - Gold ounces sold in Q4 decreased 26% from the prior quarter and 40% from Q4 of last year, totaling 350,000 ounces; for the full year, gold ounces sold decreased 6% to 1.8 million [14] - Silver ounces sold in Q4 decreased 25% from the prior quarter but increased 46% from Q4 of last year, totaling 12.5 million ounces; for the full year, silver ounces sold increased 46% to 67.6 million ounces [14] - Wholesale trading ticket volume decreased 22% to 24,300 tickets in Q4 but increased 5% to 120,300 tickets for the full year [14][15] Market Data and Key Metrics Changes - The inventory turnover ratio for Q4 was 3.0, down 35% from the prior quarter; for the full year, it was 16.6 compared to 26.8 in fiscal 2018 [15] - The number of secured loans at the end of Q4 totaled 2,806, down 20% from Q4 of last year, but the dollar value of the CFC loan portfolio increased 13% to $125.3 million [16] Company Strategy and Development Direction - The company aims to expand its platforms of products and services and increase market share in the global precious metals market [4] - A-Mark Global Logistics (AMGL) is central to the company's strategy, providing logistics services and aiming to improve performance metrics [17][18] - The secured lending segment saw significant growth, highlighted by a $100 million asset-based securitization [19] - The company plans to focus on new growth areas to enhance competitive positioning and expand its offerings [22][24] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical uncertainty and global economic concerns have led to strong upward movement in gold and silver prices [22] - There are signs of an uptick in demand and increased volatility, with cautious optimism about future prospects [23] - The company is positioned for financial and operational outperformance in 2020 compared to the previous year [24] Other Important Information - The CFO announced that this would be his last earnings call, with a succession plan in place for his role [25][26] Q&A Session Summary Question: Can you provide a breakdown of inventory levels between gold and silver? - The company does not generally break down inventory but noted that current inventory is significantly weighted towards gold due to market conditions [29] Question: How is the Goldline business performing? - The Goldline business is still not profitable but has seen improved sales recently due to market volatility [33][34]