A-Mark Precious Metals(AMRK)2025-05-12 20:23Financial Performance - The Company reported revenues of $9.7 billion for the fiscal year 2024, indicating significant growth in its operations[329]. - Revenues for the three months ended March 31, 2025 increased by $398.5 million, or 15.3%, to $3.009 billion from $2.611 billion in 2024[365]. - Revenues for the nine months ended March 31, 2025 increased by $1.292 billion, or 18.0%, to $8.467 billion from $7.174 billion in 2024[368]. - Revenues for the Wholesale Sales & Ancillary Services segment for the three months ended March 31, 2025 were $2.4 billion, a 7.0% increase from $2.3 billion in 2024[399]. - Revenues for the nine months ended March 31, 2025 increased by $693.1 million, or 11.3%, to $6.835 billion from $6.142 billion in 2024[414]. - Revenues for the Direct-to-Consumer segment increased by 71.0% to $574.1 million in Q1 2025 from $335.7 million in Q1 2024[437]. - For the nine months ended March 31, 2025, revenues rose by 58.1% to $1.63 billion compared to $1.03 billion in the same period of 2024[447]. Sales and Volume Metrics - Gold ounces sold decreased by 14,000 ounces, or 3.1%, to 432,000 ounces in Q1 2025 from 446,000 ounces in Q1 2024[366]. - Silver ounces sold decreased by 10,020,000 ounces, or 39.0%, to 15,702,000 ounces in Q1 2025 from 25,722,000 ounces in Q1 2024[366]. - Gold ounces sold for the nine months ended March 31, 2025 decreased by 95,000 ounces, or 6.8%, to 1,296,000 ounces from 1,391,000 ounces in 2024[368]. - Silver ounces sold for the nine months ended March 31, 2025 decreased by 24,696,000 ounces, or 29.9%, to 57,979,000 ounces from 82,675,000 ounces in 2024[368]. - Gold ounces sold in Q1 2025 were 134,000, a 25.2% increase from 107,000 ounces sold in Q1 2024[437]. - Silver ounces sold increased by 18.7% to 3,771,000 in Q1 2025 from 3,177,000 in Q1 2024[439]. Customer Metrics - The Company has a diverse customer base, including financial institutions, bullion retailers, and e-commerce customers[330]. - The number of new customers surged by 1,489.4% to 899,600 in Q1 2025, up from 56,600 in Q1 2024[437]. - Total customers reached 4,087,100, a 63.7% increase from 2,496,500 in the previous year[447]. - The number of new customers for the nine months ended March 31, 2025 increased by 872,100, or 588.5%, to 1,020,300[469]. Profitability and Expenses - Net loss attributable to the Company for Q1 2025 was $8.546 million, compared to a net income of $5.013 million in Q1 2024, representing a change of $13.559 million or (270.5%) [365]. - Selling, general, and administrative expenses increased by $10.55 million, or 46.2%, in Q1 2025 compared to Q1 2024[365]. - Gross profit for the three months ended March 31, 2025 increased by $6.2 million, or 17.7%, to $41.0 million[371]. - Selling, general, and administrative expenses for the three months ended March 31, 2025 increased by $10.6 million, or 46.2%, to $33.4 million[377]. - Gross profit for the nine months ended March 31, 2025 decreased by $13.5 million, or 19.5%, to $55.6 million from $69.1 million in 2024[422]. - The profit margin percentage for the nine months ended March 31, 2025 decreased by 31.1 basis points to 0.813% from 1.124% in 2024[423]. Acquisitions and Growth - The Company acquired LPM in February 2024, enhancing its global reach in the precious metals market[312]. - In February 2025, the Company acquired Spectrum Group International, which includes Stack's Bowers Galleries, expanding its auction and retail capabilities[313]. - The increase in revenues was partially due to the acquisition of a controlling interest in SGB in June 2024 and the acquisitions of SGI and Pinehurst in February 2025[365]. Interest Income and Expenses - Interest income is generated from secured loans and financing structures with customers, secured by precious metals[340]. - Interest income for the nine months ended March 31, 2025 increased by $1.5 million, or 7.9%, to $20.6 million[383]. - Interest expense for the three months ended March 31, 2025 increased by $3.0 million, or 30.7%, to $13.0 million[385]. - Interest expense for the nine months ended March 31, 2025 decreased by $1.442 million, or 22.4%, to $4.992 million from $6.434 million in 2024[488]. Operational Efficiency - The Company’s inventory turnover ratio and customer metrics are key performance indicators for assessing operational efficiency[304]. - The inventory turnover ratio is a critical performance measure, reflecting how quickly inventory moves during periods of higher trading activity[348]. - Direct-to-Consumer segment ticket volume measures the number of product orders processed, which increases during periods of higher market volatility[347]. Market Conditions - The Company operates in a high volume/low margin industry, with revenues significantly impacted by product volume, market prices, and market volatility[338]. - The Company has seen increased trading revenues and gross profit due to macroeconomic volatility, which typically raises the spread between bid and ask prices[357].