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A-Mark Precious Metals(AMRK) - 2025 Q2 - Quarterly Results
AMRKA-Mark Precious Metals(AMRK)2025-02-07 18:55

Financial Performance - Q2 FY 2025 revenues increased 32% to 2.742billionfrom2.742 billion from 2.079 billion in Q2 FY 2024[10] - Q2 FY 2025 net income attributable to the company decreased 52% to 6.6millionfrom6.6 million from 13.8 million in Q2 FY 2024[10] - Q2 FY 2025 diluted earnings per share totaled 0.27,a530.27, a 53% decrease compared to 0.57 in Q2 FY 2024[10] - Adjusted net income before provision for income taxes for Q2 FY 2025 decreased 38% to 13.4millionfrom13.4 million from 21.7 million in Q2 FY 2024[10] - EBITDA for Q2 FY 2025 decreased 35% to 16.2millionfrom16.2 million from 25.1 million in Q2 FY 2024[10] - Revenues increased 32% to 2.742billionfrom2.742 billion from 2.079 billion in the same year-ago quarter[44] - Net income attributable to the Company totaled 6.6millionor6.6 million or 0.27 per diluted share, compared to net income of 13.8millionor13.8 million or 0.57 per diluted share in the same year-ago quarter[50] - Adjusted net income before provision for income taxes for the three months ended December 31, 2024 totaled 13.4million,adecreaseof13.4 million, a decrease of 8.4 million or 38% compared to 21.7millioninthesameyear−agoquarter[51]−EBITDAforthethreemonthsendedDecember31,2024totaled21.7 million in the same year-ago quarter[51] - EBITDA for the three months ended December 31, 2024 totaled 16.2 million, a decrease of 8.9millionor358.9 million or 35% compared to 25.1 million in the same year-ago quarter[52] - Revenues for the three months ended December 31, 2024, were 2,742,345,anincreaseof322,742,345, an increase of 32% compared to 2,078,815 for the same period in 2023[82] - Net income attributable to the Company for the three months ended December 31, 2024, was 6,558,adecreaseof52.36,558, a decrease of 52.3% from 13,766 in 2023[82] - Net income for the six months ended December 31, 2024 was 14,392,000,down56.314,392,000, down 56.3% from 32,944,000 in the same period of 2023[91] Revenue and Sales Metrics - Gold ounces sold for the three months ended December 31, 2024 increased 4% to 466,000 ounces from 450,000 ounces for the same period in 2023[33] - Silver ounces sold for the three months ended December 31, 2024 decreased 18% to 21.8 million ounces from 26.6 million ounces for the same period in 2023[33] - Direct-to-Consumer new customers for the three months ended December 31, 2024 increased 25% to 65,400 from 52,500 for the same period in 2023[33] - Direct-to-Consumer average order value for the three months ended December 31, 2024 increased 960,or43960, or 43% to 3,178 from 2,218forthesameperiodin2023[33]−Direct−to−Consumersegmentcontributed212,218 for the same period in 2023[33] - Direct-to-Consumer segment contributed 21% of the consolidated revenue in the fiscal second quarter of 2025[44] - Direct-to-Consumer active customers for the six months ended December 31, 2024 increased 11% to 270,000 from 242,800 for the same period in 2023[47] Expenses and Costs - Selling, general and administrative expenses increased 15% to 25.8 million from 22.4millioninthesameyear−agoquarter[46]−Selling,generalandadministrativeexpensesincreased1822.4 million in the same year-ago quarter[46] - Selling, general and administrative expenses increased 18% to 52.4 million from 44.2millioninthesameyear−agoperiod[55]−Depreciationandamortizationexpenseincreased6744.2 million in the same year-ago period[55] - Depreciation and amortization expense increased 67% to 9.3 million from 5.6millioninthesameyear−agoperiod[56]−Acquisitioncostsincreasedby40.75.6 million in the same year-ago period[56] - Acquisition costs increased by 40.7% to 688,000 in Q4 2024 from 489,000inQ42023[89]−Amortizationofacquiredintangiblesroseby75.1489,000 in Q4 2023[89] - Amortization of acquired intangibles rose by 75.1% to 3,790,000 in Q4 2024 compared to 2,165,000inQ42023[89]CashFlowandAssets−Cashandcashequivalentsdecreasedto2,165,000 in Q4 2023[89] Cash Flow and Assets - Cash and cash equivalents decreased to 37,768 as of December 31, 2024, from 48,636asofJune30,2024[80]−TheCompanyreportedanetcashusedinoperatingactivitiesof48,636 as of June 30, 2024[80] - The Company reported a net cash used in operating activities of 17,458 for the six months ended December 31, 2024, compared to 101,667in2023[85]−Netcashprovidedbyoperatingactivitiesincreasedby291.7101,667 in 2023[85] - Net cash provided by operating activities increased by 291.7% to 110,071,000 in Q4 2024 from a cash outflow of 57,405,000inQ42023[89]−TotalassetsasofDecember31,2024,were57,405,000 in Q4 2023[89] - Total assets as of December 31, 2024, were 1,869,302, an increase from 1,827,820asofJune30,2024[80]−Totalliabilitiesincreasedto1,827,820 as of June 30, 2024[80] - Total liabilities increased to 1,203,511 as of December 31, 2024, compared to 1,165,964asofJune30,2024[80]−TheCompany’sinventoriesincreasedto1,165,964 as of June 30, 2024[80] - The Company’s inventories increased to 642,259 as of December 31, 2024, from 579,400asofJune30,2024[80]StrategicInitiatives−ThecompanyisnearingcompletionoftheA−MarkGlobalLogisticsfacilityexpansionandlogisticsinitiatives[3]−A−MarkenteredintoadefinitiveagreementtoacquireSpectrumGroupInternational,expandingitspresenceinthepremiumcollectiblemarkets[4]−ThecompanyamendeditsTradingCreditFacilitytoincreasetherevolvingcommitmentto579,400 as of June 30, 2024[80] Strategic Initiatives - The company is nearing completion of the A-Mark Global Logistics facility expansion and logistics initiatives[3] - A-Mark entered into a definitive agreement to acquire Spectrum Group International, expanding its presence in the premium collectible markets[4] - The company amended its Trading Credit Facility to increase the revolving commitment to 457 million from 422.5million[5]−TheCompanyplanstocontinuefocusingonproductfinancingarrangementsandmarketexpansionstrategiesintheupcomingquarters[79]OtherFinancialMetrics−Interestincomeincreased8422.5 million[5] - The Company plans to continue focusing on product financing arrangements and market expansion strategies in the upcoming quarters[79] Other Financial Metrics - Interest income increased 8% to 6.8 million from 6.3millioninthesameyear−agoquarter[48]−InterestincomeforthesixmonthsendedDecember31,2024,roseto6.3 million in the same year-ago quarter[48] - Interest income for the six months ended December 31, 2024, rose to 13,881, an 11.8% increase from 12,413in2023[88]−NetincomebeforeprovisionforincometaxesforthethreemonthsendedDecember31,2024,was12,413 in 2023[88] - Net income before provision for income taxes for the three months ended December 31, 2024, was 8,016, a decrease of 56.5% from 18,428in2023[86]−Adjustednetincomebeforeprovisionforincometaxes(non−GAAP)fellby38.518,428 in 2023[86] - Adjusted net income before provision for income taxes (non-GAAP) fell by 38.5% to 13,363,000 in Q4 2024 compared to 21,728,000inQ42023[89]−Adjustednetincomebeforeprovisionforincometaxes(non−GAAP)forthesixmonthsendedDecember31,2024decreasedby42.021,728,000 in Q4 2023[89] - Adjusted net income before provision for income taxes (non-GAAP) for the six months ended December 31, 2024 decreased by 42.0% to 28,147,000 compared to 48,507,000in2023[91]−Earningsbeforeinterest,taxes,depreciation,andamortization(non−GAAP)forthesixmonthsendedDecember31,2024was48,507,000 in 2023[91] - Earnings before interest, taxes, depreciation, and amortization (non-GAAP) for the six months ended December 31, 2024 was 34,006,000, a decline of 38.8% from 55,544,000in2023[91]−UnrealizedlossesonforeignexchangeforthethreemonthsendedDecember31,2024,were55,544,000 in 2023[91] - Unrealized losses on foreign exchange for the three months ended December 31, 2024, were 840, compared to gains of 105in2023,achangeof900.0105 in 2023, a change of 900.0%[86] - The Company reported a net loss from equity method investments of 2,410 for the three months ended December 31, 2024, compared to earnings of $777 in 2023, a decline of 410.2%[86]