A-Mark Precious Metals(AMRK) - 2025 Q2 - Quarterly Results

Financial Performance - Q2 FY 2025 revenues increased 32% to $2.742 billion from $2.079 billion in Q2 FY 2024[10] - Q2 FY 2025 net income attributable to the company decreased 52% to $6.6 million from $13.8 million in Q2 FY 2024[10] - Q2 FY 2025 diluted earnings per share totaled $0.27, 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 $13.4 million from $21.7 million in Q2 FY 2024[10] - EBITDA for Q2 FY 2025 decreased 35% to $16.2 million from $25.1 million in Q2 FY 2024[10] - Revenues increased 32% to $2.742 billion from $2.079 billion in the same year-ago quarter[44] - Net income attributable to the Company totaled $6.6 million or $0.27 per diluted share, compared to net income of $13.8 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 $13.4 million, a decrease of $8.4 million or 38% compared to $21.7 million in the same year-ago quarter[51] - EBITDA for the three months ended December 31, 2024 totaled $16.2 million, a decrease of $8.9 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, 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, 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, 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, or 43% to $3,178 from $2,218 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 $22.4 million in the same year-ago quarter[46] - Selling, general and administrative expenses increased 18% to $52.4 million from $44.2 million in the same year-ago period[55] - Depreciation and amortization expense increased 67% to $9.3 million from $5.6 million in the same year-ago period[56] - Acquisition costs increased by 40.7% to $688,000 in Q4 2024 from $489,000 in Q4 2023[89] - Amortization of acquired intangibles rose by 75.1% to $3,790,000 in Q4 2024 compared to $2,165,000 in Q4 2023[89] Cash Flow and Assets - Cash and cash equivalents decreased to $37,768 as of December 31, 2024, from $48,636 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 $101,667 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 $57,405,000 in Q4 2023[89] - Total assets as of December 31, 2024, were $1,869,302, an increase from $1,827,820 as of June 30, 2024[80] - Total liabilities increased to $1,203,511 as of December 31, 2024, compared to $1,165,964 as of June 30, 2024[80] - The Company’s inventories increased to $642,259 as of December 31, 2024, from $579,400 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 $422.5 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 $6.3 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 $12,413 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 $18,428 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 $21,728,000 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 $48,507,000 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 $55,544,000 in 2023[91] - Unrealized losses on foreign exchange for the three months ended December 31, 2024, were $840, compared to gains of $105 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]