Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2015 | Feb. 08, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | A-Mark Precious Metals, Inc. | |
Entity Central Index Key | 1,591,588 | |
Trading Symbol | AMRK | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 6,973,549 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Current assets: | ||
Cash | $ 3,375 | $ 20,927 |
Receivables, net | 22,557 | 30,025 |
Derivative assets | 17,123 | 11,364 |
Secured loans receivables | 57,108 | 48,666 |
Inventories | 189,275 | 152,076 |
Restricted inventories | 50,504 | 39,425 |
Restricted and Nonrestricted Inventory, Net | 239,779 | 191,501 |
Income taxes receivable | 6,982 | 7,846 |
Income taxes receivable from Former Parent | 0 | 1,095 |
Prepaid expenses and other assets | 648 | 1,202 |
Total current assets | 347,572 | 312,626 |
Property and equipment, net | 3,009 | 2,850 |
Goodwill | 4,884 | 4,884 |
Intangibles, net | 2,178 | 2,369 |
Long-term secured loans receivables | 600 | 650 |
Long-term investments | 4,836 | 2,500 |
Deferred tax assets - non-current | 0 | 23 |
Total assets | 363,079 | 325,902 |
Current liabilities: | ||
Lines of credit | 162,500 | 147,000 |
Liability on borrowed metals | 4,234 | 9,500 |
Product financing arrangement | 50,504 | 39,425 |
Accounts payable | 56,059 | 50,639 |
Derivative liabilities | 19,930 | 17,897 |
Accrued liabilities | 5,593 | 5,330 |
Income taxes payable to Former Parent | 510 | 0 |
Deferred tax liability - current | 1,369 | 149 |
Total current liabilities | 300,699 | 269,940 |
Deferred tax liabilities - non-current | 312 | 0 |
Total liabilities | $ 301,011 | $ 269,940 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of December 31, 2015 and June 30, 2015 | $ 0 | $ 0 |
Common Stock, par value $0.01; 40,000,000 authorized; 6,973,549 and 6,973,549 issued and outstanding as of December 31, 2015 and June 30, 2015, respectively | 70 | 70 |
Additional paid-in capital | 22,577 | 22,470 |
Retaining earnings | 39,421 | 33,422 |
Total stockholders’ equity | 62,068 | 55,962 |
Total liabilities and stockholders’ equity | $ 363,079 | $ 325,902 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued, shares | 0 | 0 |
Preferred stock, outstanding, shares | 0 | 0 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 6,973,549 | 6,973,549 |
Common stock, shares outstanding | 6,973,549 | 6,973,549 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,529,143 | $ 1,538,871 | $ 3,536,079 | $ 2,992,337 |
Cost of sales | 1,523,467 | 1,531,678 | 3,515,979 | 2,979,414 |
Gross profit | 5,676 | 7,193 | 20,100 | 12,923 |
Selling, general and administrative expenses | (4,528) | (4,754) | (10,936) | (8,973) |
Interest income | 2,182 | 1,398 | 4,115 | 2,875 |
Interest expense | (1,322) | (969) | (2,556) | (2,032) |
Unrealized gains (losses) on foreign exchange | 150 | (75) | 111 | (84) |
Net income before provision for income taxes | 2,158 | 2,793 | 10,834 | 4,709 |
Provision for income taxes | (827) | (1,131) | (4,139) | (1,909) |
Net income | $ 1,331 | $ 1,662 | $ 6,695 | $ 2,800 |
Basic and diluted income per share: | ||||
Basic - net income (usd per share) | $ 0.19 | $ 0.24 | $ 0.96 | $ 0.40 |
Diluted - net income (usd per share) | $ 0.19 | $ 0.24 | $ 0.94 | $ 0.40 |
Weighted average shares outstanding: | ||||
Basic (shares) | 6,973,500 | 6,962,742 | 6,973,500 | 6,962,742 |
Diluted (shares) | 7,119,000 | 7,059,400 | 7,089,700 | 7,062,300 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Stockholders' Equity - 6 months ended Dec. 31, 2015 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Beginning balance, shares at Jun. 30, 2015 | 6,973,549 | 6,973,549 | ||
Beginning balance at Jun. 30, 2015 | $ 55,962 | $ 70 | $ 22,470 | $ 33,422 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 6,695 | |||
Share-based compensation | 107 | |||
Dividends declared | $ (696) | |||
Ending balance, shares at Dec. 31, 2015 | 6,973,549 | 6,973,549 | ||
Ending balance at Dec. 31, 2015 | $ 62,068 | $ 70 | $ 22,577 | $ 39,421 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net Income | $ 6,695 | $ 2,800 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 606 | 455 |
Deferred income taxes | 1,555 | (5,963) |
Interest added to principal of secured loans | (46) | (144) |
Share-based compensation | 107 | 122 |
Changes in assets and liabilities: | ||
Receivables | 7,468 | (25,951) |
Secured loans | 2,361 | (255) |
Secured loans to Former Parent | (881) | (2,739) |
Derivative assets | (5,759) | 4,072 |
Income tax receivable | 864 | (197) |
Inventories | (48,278) | (48,217) |
Prepaid expenses and other current assets | 554 | (45) |
Accounts payable | 5,420 | 934 |
Derivative liabilities | 2,033 | 2,407 |
Liabilities on borrowed metals | (5,266) | (3,025) |
Accrued liabilities | 263 | (2,654) |
Income tax receivable from/ income taxes payables to Former Parent | 1,605 | 0 |
Income taxes payable | 0 | (2,178) |
Net cash used in operating activities | (30,699) | (80,578) |
Cash flows from investing activities: | ||
Capital expenditures for property and equipment | (574) | (76) |
Purchase of cost method investment | (2,336) | (1,111) |
Secured loans, net | (9,826) | 1,835 |
Net cash (used in) provided by investing activities | (12,736) | 648 |
Cash flows from financing activities: | ||
Product financing arrangement, net | 11,079 | 56,050 |
Dividends paid | (696) | 0 |
Borrowings under lines of credit, net | 15,500 | 15,800 |
Net cash provided by financing activities | 25,883 | 71,850 |
Net decrease in cash and cash equivalents | (17,552) | (8,080) |
Cash and cash equivalents, beginning of period | 20,927 | 13,193 |
Cash and cash equivalents, end of period | 3,375 | 5,113 |
Cash paid during the period for: | ||
Interest expense | 2,393 | 1,719 |
Income taxes | 113 | 10,247 |
Non-cash investing and financing activities: | ||
Interest added to principal of secured loans | $ 46 | $ 144 |
Description of Business
Description of Business | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS A-Mark Precious Metals, Inc. and its subsidiaries (“A-Mark” or the “Company”) is a full-service precious metals trading company. Its products include gold, silver, platinum and palladium for storage and delivery primarily in the form of coins, bars, wafers and grain. The Company's trading-related services include financing, consignment, logistics, hedging and various customized financial programs. Through its wholly owned subsidiary, Collateral Finance Corporation (“CFC”), a licensed California Finance Lender, the Company offers loans on precious metals, rare coins and other collectibles collateral to coin dealers, collectors and investors. Through its wholly owned subsidiary, A-Mark Trading AG (“AMTAG”), the Company promotes A-Mark bullion products throughout the European continent. Transcontinental Depository Services (“TDS”), also a wholly owned subsidiary of the Company, offers worldwide storage solutions to institutions, dealers and consumers. The Company's wholly-owned subsidiary, A-M Global Logistics, LLC ("Logistics"), operates the Company's logistics fulfillment center based in Las Vegas, Nevada, which began operations in July 2015. Logistics provides our customers an array of complementary services, including storage, shipping, handling, receiving, processing, and inventorying of precious metals and custom coins on a secure basis. Spinoff from Spectrum Group International, Inc. On March 14, 2014, the Company's former parent, Spectrum Group International, Inc. ("SGI" or the "Former Parent"), effected a spinoff (the "spinoff" or the "Distribution") of the Company from SGI. As a result of the Distribution, the Company became a publicly traded company independent from SGI. On March 17, 2014, A-Mark’s shares of common stock commenced trading on the NASDAQ Global Select Market under the symbol "AMRK." |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements reflect the financial condition, results of operations, and cash flows of the Company, and were prepared using accounting principles generally accepted in the United States (“U.S. GAAP”). The Company operated in one segment for all periods presented. These condensed consolidated financial statements include the accounts of A-Mark, and its wholly owned subsidiaries, CFC, AMTAG, Logistics and TDS (collectively the “Company”). All significant inter-company accounts and transactions have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the condensed consolidated balance sheets, condensed consolidated statements of income, condensed consolidated statements of stockholders’ equity, and condensed consolidated statements of cash flows for the periods presented in accordance with U.S. GAAP. Operating results for the six months ended December 31, 2015 are not necessarily indicative of the results that may be expected for the year ending June 30, 2016 or for any other interim period during such fiscal year. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2015 (the “ 2015 Annual Report ”), as filed with the SEC. Amounts related to disclosure of June 30, 2015 balances within these interim condensed consolidated financial statements were derived from the aforementioned audited consolidated financial statements and notes thereto included in the 2015 Annual Report . Reclassifications Certain previously reported amounts have been reclassified to conform to the current fiscal quarter's condensed consolidated financial statement presentation. In the previous reported periods, account receivables included secured loans and derivative assets; these components are shown as separate lines items on the condensed consolidated balance sheets and cash flow statements. Similarly, accounts payables included derivative liabilities; these components are shown as separate lines items on the condensed consolidated balance sheets and cash flow statements. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. These estimates include, among others, determination of fair value, and allowances for doubtful accounts, impairment assessments of long-lived assets and intangible assets, valuation reserve determination on deferred tax assets, and revenue recognition judgments. Significant estimates also include the Company's fair value determination with respect to its financial instruments and precious metals materials. Actual results could materially differ from these estimates. Concentration of Credit Risk Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Assets that potentially subject the Company to concentrations of credit risk consist principally of receivables, loans of inventory to customers, and inventory hedging transactions. Concentration of credit risk with respect to receivables is limited due to the large number of customers composing the Company's customer base, the geographic dispersion of the customers, and the collateralization of substantially all receivable balances. Based on an assessment of credit risk, the Company typically grants collateralized credit to its customers. The Company enters into inventory hedging transactions, principally utilizing metals commodity futures contracts traded on national futures exchanges or forward contracts with credit worthy financial institutions. Credit risk with respect to loans of inventory to customers is minimal; substantially all inventories loaned under consignment arrangements are collateralized for the benefit of the Company. All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Substantially all of these transactions are secured by the underlying metals positions. Foreign Currency The functional currency of the Company is the United States dollar ("USD"). Also, the functional currency of the Company's wholly-owned foreign subsidiary, AMTAG, is USD, but it maintains its books of record in Euros. The Company remeasures the financial statements of AMTAG into USD. The remeasurement of local currency amounts into USD creates remeasurement gains and losses, which are included in the condensed consolidated statements of income. To manage the effect of foreign currency exchange fluctuations, the Company utilizes foreign currency forward contracts. These derivatives generate gains and losses when they are settled and/or when they are marked to market. The change in the value in the derivative instruments is shown on the face of the condensed consolidated statements of income as unrealized net gains (losses) on foreign exchange. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. Inventories Inventories principally include bullion and bullion coins and are acquired and initially recorded at fair market value. The fair market value of the bullion and bullion coins is comprised of two components: (1) published market values attributable to the costs of the raw precious metal, and (2) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form and the market value attributable solely to the premium may be readily determined, as it is published by multiple reputable sources. The Company’s inventories, except for certain lower of cost or market basis products (as discussed below), are subsequently recorded at their fair market values, that is, "marked-to-market". The daily changes in the fair market value of our inventory are offset by daily changes in the fair market value of hedging derivatives that are taken with respect to our inventory positions; both the change in the fair market value of the inventory and the change in the fair market value of these derivative instruments are recorded in cost of sales in the condensed consolidated statements of income. While the premium component included in inventories is marked-to-market, our commemorative coin inventory, including its premium component, is held at the lower of cost or market, because the value of commemorative coins is influenced more by supply and demand determinants than on the underlying spot price of the precious metal content of the commemorative coins. Unlike our bullion coins, the value of commemorative coins is not subject to the same level of volatility as bullion coins because our commemorative coins typically carry a substantially higher premium over the spot metal price than bullion coins. Neither the commemorative coin inventory nor the premium component of our inventory is hedged (see Note 6 .) Property and Equipment and Depreciation Property and equipment is stated at cost less accumulated depreciation. Depreciation is calculated using a straight line method based on the estimated useful lives of the related assets, ranging from three years to five years . Goodwill and Purchased Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill and other indefinite life intangibles are evaluated for impairment annually in the fourth quarter of the fiscal year (or more frequently if indicators of potential impairment exist) in accordance with the Intangibles - Goodwill and Other Topic 350 of the Accounting Standards Codification ("ASC".) Other purchased intangible assets continue to be amortized over their useful lives and are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be recoverable. The Company may first qualitatively assess whether relevant events and circumstances make it more likely than not that the fair value of the reporting unit's goodwill is less than its carrying value. If, based on this qualitative assessment, management determines that goodwill is more likely than not to be impaired, the two-step impairment test is performed. This first step in this test includes comparing the fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step in the test is performed, which is measurement of the impairment loss. The impairment loss is calculated by comparing the implied fair value of goodwill, as if the reporting unit has been acquired in a business combination, to its carrying amount. As of December 31, 2015 and June 30, 2015 , the Company had no impairments. If the Company determines it will quantitatively assess impairment, the Company utilizes the discounted cash flow method to determine the fair value of each of its reporting units. In calculating the implied fair value of the reporting unit's goodwill, the present value of the reporting unit's expected future cash flows is allocated to all of the other assets and liabilities of that unit based on their fair values. The excess of the present value of the reporting unit's expected future cash flows over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. In calculating the implied value of the Company's trade names, the Company uses the present value of the relief from royalty method. Amortizable intangible assets are being amortized on a straight-line basis which approximates economic use, over periods ranging from three years to fifteen years . The Company considers the useful life of the trademarks to be indefinite. The Company tests the value of the trademarks and trade name annually for impairment. Long-Lived Assets Long-lived assets, other than goodwill and purchased intangible assets with indefinite lives are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be recoverable. In evaluating impairment, the carrying value of the asset is compared to the undiscounted estimated future cash flows expected to result from the use of the asset and its eventual disposition. An impairment loss is recognized when estimated future cash flows are less than the carrying amount. Estimates of future cash flows may be internally developed or based on independent appraisals and significant judgment is applied to make the estimates. Changes in the Company's strategy, assumptions and/or market conditions could significantly impact these judgments and require adjustments to recorded amounts of long-lived assets. As of December 31, 2015 and June 30, 2015 , management concluded that an impairment was not required. Investments Investments into noncontrolled entities that do not have readily determinable fair values (i.e., non-marketable equity securities) under Cost Method Investments Topic 325-20 of the ASC are initially recorded at cost. Income is recorded for dividends received that are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred. The Company assesses all cost-method investments for impairment quarterly. Below is a summary of the Company's cost-method investments. The Company has two investments into non-controlled entities, both of which are online precious metals retailers and customers of the Company. As of December 31, 2015 and June 30, 2015, (i) the aggregate carrying balance of these investments was $4.8 million and $2.5 million , respectively, and (ii) the Company’s ownership percentage, based on the fully dilutive common shares outstanding, for one of the entities was 2.5% and 15.0% , respectively, and for the other entity, was 2.5% and 9.0% , respectively. Neither of the entities declared dividends or was impaired during the three and six month periods ending December 31, 2015 and 2014. On January 15, 2016, the Company increased its ownership interest in one of the entities from 15.0% to 20.0% (see Note 18 .) The Company has exclusive supplier agreements with each entity, whereby the customers are required purchase all bullion products required for their business exclusively from A-Mark, subject to certain limitations. The Company also provides fulfillment services to the customer in which it owned a 15% interest as of December 31, 2015. Fair Value Measurement The Fair Value Measurements and Disclosures Topic 820 of the ASC ("ASC 820"), creates a single definition of fair value for financial reporting. The rules associated with ASC 820 state that valuation techniques consistent with the market approach, income approach and/or cost approach should be used to estimate fair value. Selection of a valuation technique, or multiple valuation techniques, depends on the nature of the asset or liability being valued, as well as the availability of data (see Note 3 .) Revenue Recognition Revenues are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, no obligations remain and collection is probable. The Company records sales of precious metals, which occurs upon receipt by the customer. The Company records revenues from its metal assaying and melting services after the related services are completed and the effects of forward sales contracts are reflected in revenue at the date the related precious metals are delivered or the contracts expire. The Company records revenues from its storage and logistics services after the related services are completed. The Company accounts for its metals and sales contracts using settlement date accounting. Pursuant to such accounting, the Company recognizes the sale or purchase of the metals at settlement date. During the period between trade and settlement date, the Company has essentially entered into a forward contract that meets the definition of a derivative in accordance with the Derivatives and Hedging Topic 815 of the ASC. The Company records the derivative at the trade date with a corresponding unrealized gain (loss), which is reflected in the cost of sales in the condensed consolidated statements of income. The Company adjusts the derivatives to fair value on a daily basis until the transaction is physically settled. Sales which are physically settled are recognized at the gross amount in the condensed consolidated statements of income. Interest Income The Company uses the effective interest method to recognize interest income on its secured loans transactions. For these arrangements, the Company maintains a security interest in the precious metals and records interest income over the terms of the receivable. Recognition of interest income is suspended and the loan is placed on non-accrual status when management determines that collection of future interest income is not probable. The interest income accrual is resumed, and previously suspended interest income is recognized, when the loan becomes contractually current and/or collection doubts are removed. Cash receipts on impaired loans are recorded first against the receivable and then to any unrecognized interest income (see Note 5 .) Also, the Company enters into repurchases agreements, whereby the Company sells products at the prevailing spot price plus a premium, and then repurchases the products back from the customer at the prevailing spot price, thereby earning a fee (recorded as interest income) based on a calculated premium over the spot price, resulting in an open sales commitment to deliver products at the agreed upon date and price. Interest Expense The Company incurs interest expense and related fees as a result of usage under its lines of credit, product financing arrangements and liability on borrowed metals. The Company incurs interest expense based on usage under its Trading Credit Facility recording interest expense using the effective interest method. The Company incurs financing fees (classified as interest expense) as a result of its product financing arrangements for the transfer and subsequent re-acquisition of gold and silver at a fixed price to a third party finance company. During the term of this type of financing agreement, a third party finance company holds the Company's inventory as collateral, with the intent to return the inventory to the Company at an agreed-upon price based on the spot price on the finance arrangement termination date, pursuant to the guidance in Product Financing Arrangements Topic 470-40 of the ASC. The third party charges a monthly fee as a percentage of the market value of the outstanding obligation. In addition, the Company incurs a financing fee related to custodial storage facility charges related to the transferred collateral inventory; this collateral is classified as restricted inventory on our condensed consolidated balance sheets. Additionally, the Company incurs interest expense when we borrow precious metals from our suppliers under short-term arrangements, which bear interest at a designated rate. Amounts under these arrangements are due at maturity and require repayment either in the form of precious metals or cash. This liability is reflected in the condensed consolidated balance sheet as a liability on borrowed metals. Derivative Instruments The Company’s inventory, and purchase and sale commitments transactions consist of precious metals products. The value of our inventory and these commitments is intimately linked to the prevailing price of the underlying precious metal commodity. The Company seeks to minimize the effect of price changes of the underlying commodity and enters into inventory hedging transactions, principally utilizing metals commodity futures contracts traded on national futures exchanges or forward contracts with only major credit worthy financial institutions. All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Substantially all of these transactions are secured by the underlying metals positions. Notional balances of the Company's derivative instruments, consisting of contractual metal quantities, are expressed at current spot prices of the underlying precious metal commodity. Commodity futures and forward contract transactions are recorded at fair value on the trade date. The difference between the original contract value and the market value of the open futures and forward contracts are reflected in derivative assets or derivative liabilities in the condensed consolidated balance sheet at fair value. The Company records the change between market value and trade value of the underlying open commodity contracts as a derivative asset or liability, and the Company correspondingly records the related unrealized gains or losses. The change in unrealized gain (loss) on open commodity contracts from one period to the next is reflected in net gain (loss) on derivative instruments. These unrealized gains and losses are included as a component of cost of sales on the condensed consolidated statements of income. Gains or losses resulting from the termination of commodity contracts are reported as realized gains or losses on commodity contracts, which is recorded as a component of cost of sales on the condensed consolidated statements of income. The Company enters into derivative transactions solely for the purpose of hedging our inventory holding risk, and not for speculative market purposes. The Company’s gains (losses) on derivative instruments are substantially offset by the changes in the fair market value of the underlying precious metals inventory, which is also recorded in cost of sales in the condensed consolidated statements of income (see Note 10 .) Advertising Advertising costs are expensed as incurred, and are included in selling, general and administrative expenses in the condensed consolidated statements of income. Advertising expense was $153,000 and $106,000 , respectively, for the three months ended December 31, 2015 and 2014 . Advertising expense was $326,000 and $250,000 , respectively, for the six months ended December 31, 2015 and 2014 . Shipping and Handling Costs Shipping and handling costs represent costs associated with shipping product to customers, and receiving product from vendors and are included in cost of sales in the condensed consolidated statements of income. Shipping and handling costs incurred totaled $1.8 million and $1.8 million , respectively, for the three months ended December 31, 2015 and 2014 . Shipping and handling costs incurred totaled $4.1 million and $3.2 million , respectively, for the six months ended December 31, 2015 and 2014 . Share-Based Compensation The Company accounts for equity awards under the provisions of the Compensation - Stock Compensation Topic 718 of the ASC ("ASC 718"), which establishes fair value-based accounting requirements for share-based compensation to employees. ASC 718 requires the Company to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees as expense over the service period in the Company's condensed consolidated financial statements. Income Taxes As part of the process of preparing its condensed consolidated financial statements, the Company is required to estimate its provision for income taxes in each of the tax jurisdictions in which it conducts business, in accordance with the Income Taxes Topic 740 of the ASC ("ASC 740"). The Company computes its annual tax rate based on the statutory tax rates and tax planning opportunities available to it in the various jurisdictions in which it earns income. Significant judgment is required in determining the Company's annual tax rate and in evaluating uncertainty in its tax positions. The Company recognizes a benefit for tax positions that it believes will more likely than not be sustained upon examination. The amount of benefit recognized is the largest amount of benefit that the Company believes has more than a 50% probability of being realized upon settlement. The Company regularly monitors its tax positions and adjusts the amount of recognized tax benefit based on its evaluation of information that has become available since the end of its last financial reporting period. The annual tax rate includes the impact of these changes in recognized tax benefits. When adjusting the amount of recognized tax benefits, the Company does not consider information that has become available after the balance sheet date, but does disclose the effects of new information whenever those effects would be material to the Company's condensed consolidated financial statements. The difference between the amount of benefit taken or expected to be taken in a tax return and the amount of benefit recognized for financial reporting represents unrecognized tax benefits. These unrecognized tax benefits are presented in the condensed consolidated balance sheet principally within accrued liabilities. The Company records valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. Significant judgment is applied when assessing the need for valuation allowances. Areas of estimation include the Company's consideration of future taxable income and ongoing prudent and feasible tax planning strategies. Should a change in circumstances lead to a change in judgment about the utilization of deferred tax assets in future years, the Company would adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. Changes in recognized tax benefits and changes in valuation allowances could be material to the Company's results of operations for any period, but is not expected to be material to the Company's condensed consolidated financial position. The Company accounts for uncertainty in income taxes under the provisions of ASC 740. These provisions clarify the accounting for uncertainty in income taxes recognized in an enterprise's financial statements, and prescribe a recognition threshold and measurement criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The provisions also provide guidance on de-recognition, classification, interest, and penalties, accounting in interim periods, disclosure, and transition. The potential interest and/or penalties associated with an uncertain tax position are recorded in provision for income taxes on the condensed consolidated statements of income. Please refer to Note 11 for further discussion regarding these provisions. Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The factors used to assess the likelihood of realization include the Company's forecast of the reversal of temporary differences, future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Failure to achieve forecasted taxable income in applicable tax jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company's effective tax rate on future earnings. Based on our assessment it appears more likely than not that most of the net deferred tax assets will be realized through future taxable income. Management has established a valuation allowance against the deferred taxes related to certain state net operating loss carryovers. Management believes the utilization of these losses may be limited. We will continue to assess the need for a valuation allowance for our remaining deferred tax assets in the future. The Company's condensed consolidated financial statements recognized the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods, as if the Company were a separate taxpayer prior to the date of the Distribution rather than a member of the consolidated income tax return group of its Former Parent, Spectrum Group International, Inc. Following its spin-off, the Company files federal and state income tax filings that are separate from the Former Parent's tax filings. The Company recognizes current and deferred income taxes as a separate taxpayer for periods ending after the date of Distribution. Income taxes payable to Former Parent reflects balances due to the Former Parent for the Company's share of the income tax assets of the group, net of amounts related to federal and state jurisdictions due to taxable income generated as if the Company were a separate taxpaying entity prior to the Distribution. Income taxes receivable from Former Parent reflects balance due from the Former Parent for the Company's share of the income tax assets of the group, net of amounts related to federal and state jurisdictions due to taxable income generated as if the Company were a separate taxpaying entity prior to the Distribution. Earnings per Share ("EPS") The Company computes and reports both basic EPS and diluted EPS. Basic EPS is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the sum of the weighted average number of common shares and dilutive common stock equivalents outstanding during the period. Diluted EPS reflects the total potential dilution that could occur from outstanding equity awards, including unexercised stock options, utilizing the treasury stock method. A reconciliation of shares used in calculating basic and diluted earnings per common shares follows. There is no dilutive effect of stock appreciation rights ("SARs"), as such obligations are not settled and were out of the money for the three months ended December 31, 2015 and 2014 . in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Basic weighted average shares outstanding (1) 6,974 6,963 6,974 6,963 Effect of common stock equivalents — stock issuable under outstanding equity awards 145 96 116 99 Diluted weighted average shares outstanding 7,119 7,059 7,090 7,062 _________________________________ (1) Basic weighted average shares outstanding include the effect of vested but unissued restricted stock grants. Recent Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as non-current on the balance sheet. This update is effective for fiscal years beginning after December 15, 2016. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. We have not early adopted ASU, and the adoption of this update is not expected to have a material impact on our results of operations, financial position or cash flows. We expect to adopt the provisions of this new guidance in fiscal year 2018 (or July 1, 2017). In February 2015, the FASB issued ASU No. 2015-2, Consolidation (Topic 820): Amendments to the Consolidation Analysis . ASU 2015-2 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to re-evaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015, which will be our fiscal year 2017 (or July 1, 2016). We are still evaluating what impact, if any, this ASU will have on the Company’s consolidated financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue fr |
Assets and Liabilities, at Fair
Assets and Liabilities, at Fair Value | 6 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities, at Fair Value | ASSETS AND LIABILITIES, AT FAIR VALUE Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2015 and June 30, 2015 . in thousands December 31, 2015 June 30, 2015 Carrying Amount Fair value Carrying Amount Fair value Financial assets: Cash $ 3,375 $ 3,375 $ 20,927 $ 20,927 Receivables and advances, net 22,557 22,557 30,025 30,025 Secured loans 57,708 57,708 49,316 49,316 Derivative assets - open sale and purchase commitments, net 2,779 2,779 1,722 1,722 Derivative assets - futures contracts 11,411 11,411 5,363 5,363 Derivative assets - forward contracts 2,933 2,933 4,279 4,279 Income taxes receivable from Former Parent — — 1,095 1,095 Financial liabilities: Lines of credit $ 162,500 $ 162,500 $ 147,000 $ 147,000 Liability on borrowed metals 4,234 4,234 9,500 9,500 Product financing arrangements 50,504 50,504 39,425 39,425 Derivative liabilities - liability on margin accounts 6,329 6,329 6,908 6,908 Derivative liabilities - open sale and purchase commitments, net 13,601 13,601 10,989 10,989 Accounts payable, advances and other payables 56,059 56,059 50,639 50,639 Accrued liabilities 5,593 5,593 5,330 5,330 Income taxes payable to Former Parent 510 510 — — The fair values of the financial instruments shown in the above table as of December 31, 2015 and June 30, 2015 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk‑adjusted discount rates, available observable and unobservable inputs. The carrying amounts of cash and cash equivalents, secured loans, accounts receivable, consignor advances, accounts payable and accrued liabilities approximated fair value due to their short-term nature. The carrying amounts of derivative assets and derivative liabilities are marked-to-market on a daily basis to fair value. The carrying amounts of lines of credit approximate fair value based on the borrowing rates currently available to the Company for bank loans with similar terms and average maturities. Valuation Hierarchy Topic 820 of the ASC established a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The significant assumptions used to determine the carrying value and the related fair value of the financial instruments are described below: Inventory . Inventories principally include bullion and bullion coins and are acquired and initially recorded at fair market value. The fair market value of the bullion and bullion coins is comprised of two components: 1) published market values attributable to the costs of the raw precious metal, and 2) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form and the market value attributable solely to the premium is readily determined, as it is published by multiple reputable sources. Except for commemorative coin inventory, which are included in inventory at the lower of cost or market, the Company’s inventories are subsequently recorded at their fair market values on a daily basis. The fair value for commodities inventory (i.e., inventory excluding commemorative coins) is determined using pricing and data derived from the markets on which the underlying commodities are traded. Precious metals commodities inventory are classified in Level 1 of the valuation hierarchy. Derivatives . Futures contracts, forward contracts and open sale and purchase commitments are valued at their fair values, based on the difference between the quoted market price and the contractual price (i.e., intrinsic value,) and are included within Level 1 of the valuation hierarchy. Margin and Borrowed Metals Liabilities . Margin and borrowed metals liabilities consist of the Company's commodity obligations to margin customers and suppliers, respectively. Margin liabilities and borrowed metals liabilities are carried at fair value, which is determined using quoted market pricing and data derived from the markets on which the underlying commodities are traded. Margin and borrowed metals liabilities are classified in Level 1 of the valuation hierarchy. Product Financing Arrangements . Product financing arrangements consist of financing agreements for the transfer and subsequent re-acquisition of the sale of gold and silver at a fixed price to a third party. Such transactions allow the Company to repurchase this inventory at an agreed-upon price based on the spot price on the repurchase date. The third party charges monthly interest as a percentage of the market value of the outstanding obligation, which is carried at fair value. The obligation is stated at the amount required to repurchase the outstanding inventory. Fair value is determined using quoted market pricing and data derived from the markets on which the underlying commodities are traded. Product financing arrangements are classified in Level 1 of the valuation hierarchy. The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and June 30, 2015 aggregated by the level in the fair value hierarchy within which the measurements fall: December 31, 2015 Quoted Price in Active Markets Significant Other Significant for Identical Observable Unobservable Instruments Inputs Inputs in thousands (Level 1) (Level 2) (Level 3) Total Assets: Inventory (1) $ 239,703 $ — $ — $ 239,703 Derivative assets — open sale and purchase commitments, net 2,779 — — 2,779 Derivative assets — futures contracts 11,411 — — 11,411 Derivative assets — forward contracts 2,933 — — 2,933 Total assets valued at fair value $ 256,826 $ — $ — $ 256,826 Liabilities: Liability on borrowed metals $ 4,234 $ — $ — $ 4,234 Product financing arrangement 50,504 — — 50,504 Derivative liabilities — liability on margin accounts 6,329 — — 6,329 Derivative liabilities — open sales and purchase commitments, net 13,601 — — 13,601 Total liabilities, valued at fair value $ 74,668 $ — $ — $ 74,668 ____________________ (1) Commemorative coin inventory totaling $0.1 million is held at lower of cost or market and is thus excluded from this table. June 30, 2015 Quoted Price in Active Markets Significant Other Significant for Identical Observable Unobservable Instruments Inputs Inputs in thousands (Level 1) (Level 2) (Level 3) Total Assets: Inventory (1) $ 189,983 $ — $ — $ 189,983 Derivative assets — open sale and purchase commitments, net 1,722 — — 1,722 Derivative assets — futures contracts 5,363 — — 5,363 Derivative assets — forward contracts 4,279 — — 4,279 Total assets, valued at fair value $ 201,347 $ — $ — $ 201,347 Liabilities: Liability on borrowed metals $ 9,500 $ — $ — $ 9,500 Product financing arrangement 39,425 — — 39,425 Derivative liabilities — liability on margin accounts 6,908 — — 6,908 Derivative liabilities — open sale and purchase commitments, net 10,989 — — 10,989 Total liabilities, valued at fair value $ 66,822 $ — $ — $ 66,822 ____________________ (1) Commemorative coin inventory totaling $1.5 million is held at lower of cost or market and is thus excluded from this table. There were no transfers in or out of Level 2 or 3 during the reported periods. Assets Measured at Fair Value on a Non-Recurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only under certain circumstances. These include cost method investments that are written down to fair value when their declines are determined to be other-than-temporary, and long-lived assets or goodwill that are written down to fair value when they are held for sale or determined to be impaired. The Company uses level-three inputs to measure the fair value of its cost method investments on a non-recurring basis. The Company's investments in ownership interests in noncontrolled entities do not have readily determinable fair values and were recorded at cost, $4.8 million , in aggregate, as of December 31, 2015 . Quoted prices of the investments are not available, and the cost of obtaining an independent valuation appears excessive considering the materiality of the instruments to the Company. There were no gains or losses recognized in earnings associated with the Company's ownership interests in these noncontrolled entities during the three and six months ended December 31, 2015 and 2014 . The Company uses level-three inputs to measure the fair value of goodwill and other intangibles on a non-recurring basis. These assets are measured at cost and are written down to fair value on the annual measurement dates or on the date of a triggering event, if impaired. As of December 31, 2015 , there were no indications present that the Company's goodwill or other purchased intangibles were impaired, and therefore were not measured at fair value. There were no gains or losses recognized in earnings associated with the above purchased intangibles during the three and six months ended December 31, 2015 and 2014 . |
Receivables
Receivables | 6 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Receivables | RECEIVABLES Receivables consist of the following as of December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Customer trade receivables $ 8,432 $ 11,835 Wholesale trade advances 10,988 12,164 Due from brokers 3,167 6,056 Subtotal 22,587 30,055 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 22,557 $ 30,025 Customer trade receivables. Customer trade receivables represent short-term, non-interest bearing amounts due from precious metal sales and are secured by the related precious metals stored with the Company, a letter of credit issued on behalf of the customer, or other secured interests in assets of the customer. Wholesale trade advances. Wholesale trade advances represent advances of various bullion products and cash advances to customers. Typically, these advances are: unsecured, short-term, and non-interest bearing, which are made to wholesale metals dealers and government mints. Due from brokers . Due from brokers principally consists of the margin requirements held at brokers related to open futures contracts (see Note 10 ). Allowance for Doubtful Accounts Allowances for doubtful accounts are recorded based on specifically identified receivables, which the Company has identified as potentially uncollectible. A summary of the activity in the allowance for doubtful accounts is as follows: in thousands Period ended: Beginning Balance Provision Charge-off Ending Balance Six Months Ended December 31, 2015 $ 30 $ — $ — $ 30 Year Ended June 30, 2015 $ 30 $ — $ — $ 30 |
Secured Loans Receivables
Secured Loans Receivables | 6 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Secured Loans Receivables | SECURED LOANS RECEIVABLES Below is a summary of the carrying-value of our secured loans as of December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Secured loans originated $ 37,748 $ 36,778 Secured loans originated - with a related party 881 — 38,629 36,778 Secured loans acquired 19,079 (1) 12,538 (2) Secured loans, total $ 57,708 $ 49,316 _________________________________ (1) Includes $94,000 of amortized loan premium as of December 31, 2015 . (2) Includes $99,000 of amortized loan premium as of June 30, 2015 . Secured loans - originated : Secured loans include short-term loans, which include a combination of on-demand lines and short term facilities, and long-term loans that are made to our customers (i.e., secured loans - originated). These loans are fully secured by the customers' assets that include bullion, numismatic and semi-numismatic material, which are typically held in safekeeping by the Company. (See Note 12 , for further information regarding our secured loans made to related parties.) Secured loans - acquired : Secured loans also include short-term loans, which include a combination of on-demand lines and short term facilities that are purchased from our customers (i.e., secured loans - acquired). The Company acquires a portfolio of their loan receivables at a price that approximates the aggregate carrying-value of the each loan in the portfolio, as determined on the effective transaction date. Each loan in the portfolio is fully secured by the borrowers' assets, which include bullion, numismatic and semi-numismatic material that are held in safekeeping by the Company. Typically, our customer retains the responsibility for the servicing and administration of the loans. As of December 31, 2015 and June 30, 2015 , our secured loans carried weighted-average effective interest rates of 8.3% and 8.5% , respectively, and mature in periods generally ranging from on-demand to two years. The secured loans that the Company generates with active customers of A-Mark are reflected as an operating activity on the condensed consolidated statements of cash flows. The secured loans that the Company generates with borrowers who are not active customers of A-Mark are reflected as an investing activity on the condensed consolidated statements of cash flows as secured loans, net. For the secured loans that are reflected as an investing activity and have terms that allow the borrower to increase their loan balance (at the discretion of the Company) based on the excess value of their collateral compared to their aggregate principal balance of loan and are repayable on demand or in the short-term, the borrowings and repayments are netted on the condensed consolidated statements of cash flows. In contrast, for the secured loans that are reflected as an investing activity and do not contain a revolving credit-line feature or have long-term maturities, the borrowed funds are shown at gross as other originated secured loans, segregated from the repayments of the principal, which are shown as principal collections on other originated secured loans on the condensed consolidated statements of cash flows. Credit Quality of Secured Loans Receivables and Allowance for Credit Losses The Company applies a systematic methodology to determine the allowance for credit losses for secured loan receivables. The secured loan receivables portfolio is comprised solely of secured loans with similar risk profiles. This similarity allows the Company to apply a standard methodology to determine the credit quality for each loan. The credit quality of each loan is generally determined by the secured material, the initial and ongoing collateral value determination and the assessment of loan to value determination. Typically, the Company's secured loan receivables within its portfolio have similar credit risk profiles and methods for assessing and monitoring credit risk. The Company evaluates its loan portfolio in one of three classes of secured loan receivables: those loans secured by: 1) bullion 2) numismatic items and 3) customers' pledged assets, which may include bullion and numismatic items. The Company's secured loans by portfolio class, which align with management reporting, are as follows: in thousands December 31, 2015 June 30, 2015 Bullion $ 21,794 37.8 % $ 16,250 33.0 % Numismatic and semi numismatic 35,114 60.8 32,216 65.3 Subtotal 56,908 98.6 48,466 98.3 Other pledged assets (1) 800 1.4 850 1.7 Total secured loans $ 57,708 100.0 % $ 49,316 100.0 % _________________________________ (1 ) Includes secured loans that are collateralized by borrower's assets, which are not exclusively precious metal products. Each of the three classes of receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. The methodology of assessing the credit quality of the secured loans acquired by the Company is similar to the secured loans originated by the Company; they are administered using the same internal reporting system, collateralized by precious metals or other pledged assets, for which a loan to value determination procedures are applied. Credit Quality of Loans and Non Performing Status Generally, interest is due and payable within 30 days . A loan is considered past due if interest is not paid in 30 days or collateral calls are not met timely. Typically, loans do not achieve the threshold of non performing status due to the fact that customers are generally put into default for any interest past due over 30 days and for unsatisfied collateral calls. When this occurs the loan collateral is typically liquidated within 90 days . For certain secured loans, interest is billed monthly and, if not paid, is added to the outstanding loan balance. These secured loans are considered past due if their current loan-to-value ratio fails to meet established minimum equity levels, and the borrower fails to meet the collateral call required to reestablish the appropriate loan to value ratio. Non-performing loans have the highest probability for credit loss. The allowance for credit losses attributable to non-performing loans is based on the most probable source of repayment, which is normally the liquidation of collateral. In determining collateral value, the Company estimates the current market value of the collateral and considers credit enhancements such as additional collateral and third-party guarantees. Due to the accelerated liquidation terms of the Company's loan portfolio, all past due loans are generally liquidated within 90 days of default. Further information about the Company's credit quality indicators includes differentiating by categories of current loan-to-value ratios. The Company disaggregates its secured loans that are collateralized by precious metal products, as follows: in thousands December 31, 2015 June 30, 2015 Loan-to-value of 75% or more (1) $ 34,010 59.8 % $ 17,153 35.4 % Loan-to-value of less than 75% (1) 22,898 40.2 31,313 64.6 Secured loans collateralized by precious metal products (1) $ 56,908 100.0 % $ 48,466 100.0 % _________________________________ (1 ) Excludes secured loans that are collateralized by borrower's assets, which are not exclusively precious metal products. The Company had no loans with a loan-to-value ratio in excess of 100% at December 31, 2015 . At June 30, 2015 , the Company had one loan with a loan-to-value ratio in excess of 100% , the aggregate balance of this loan totaled $175,600 or 0.4% of the overall secured loan balance. The primary reason for the increase in the loan-to-value ratio of 75% or more from June 30, 2015 to December 31, 2015 was the decline in the value of the underlying precious metal products. For the Company's secured loans where the loan-to-value ratio is not a valid indicator (because the loans are collateralized by other assets of the borrower in addition to their precious metal inventory) the Company uses other indicators to measure the quality of this type of loan. For this type of loan, the Company uses the following credit quality indicators: accounts receivable-to-loan ratios and inventory-to-loan ratios and delinquency status of the loan. Impaired loans A loan is considered impaired if it is probable, based on current information and events, that the Company will be unable to collect all amounts due according to the contractual terms of the loan. Customer loans are reviewed for impairment and include loans that are past due, non-performing or in bankruptcy. Recognition of interest income is suspended and the loan is placed on non-accrual status when management determines that collection of future interest income is not probable. Accrual is resumed, and previously suspended interest income is recognized, when the loan becomes contractually current and/or collection doubts are removed. Cash receipts on impaired loans are recorded first against the receivable and then to any unrecognized interest income. All loans are contractually subject to margin call. As a result, loans typically do not become impaired due to the fact the Company has the ability to require margin calls which are due upon receipt. Per the terms of the loan agreement, the Company has the right to rapidly liquidate the loan collateral in the event of a default. The material is highly liquid and easily sold to pay off the loan. Such circumstances would result in a short term impairment that would typically result in full repayment of the loan and fees due to the Company. For the three and six months ended December 31, 2015 and 2014 , the Company incurred no loan impairment costs. |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Our inventory consists of the precious metals that the Company has physically received, and inventory held by third-parties, which, at the Company's option, may or may not receive. Below, our inventory is summarized by classification at December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Inventory held for sale $ 107,777 $ 86,353 Repurchase arrangements with customers 73,045 49,117 Consignment arrangements with customers 4,143 5,588 Commemorative coins, held at lower of cost or market 76 1,518 Borrowed precious metals from suppliers 4,234 9,500 Product financing arrangements, restricted 50,504 39,425 $ 239,779 $ 191,501 Inventory held for sale. Inventory held for sale represents precious metals, excluding commemorative coin inventory, that have been received by the Company that is not subject to repurchase or consignment arrangements with third parties. As of December 31, 2015 and June 30, 2015 , the inventory held for sale totaled $107.8 million and 86.4 million , respectively. Repurchase Arrangements with Customers. The Company enters into arrangements with certain customers under which A-Mark purchases precious metals products that are subject to repurchase by the customer at the fair value of the product on the repurchase date. The Company or the counterparty may typically terminate any such arrangement with 14 days' notice. Upon termination the customer’s rights to repurchase any remaining inventory is forfeited. As of December 31, 2015 and June 30, 2015 , included within inventory is $73.0 million and $49.1 million , respectively, of precious metals products subject to repurchase. Consignment Arrangements with Customers. The Company periodically loans metals to customers on a short-term consignment basis, charging interest fees based on the value of the metal loaned. Inventories loaned under consignment arrangements to customers as of December 31, 2015 and June 30, 2015 totaled $4.1 million and $5.6 million , respectively. Such inventories are removed at the time the customer elects to price and purchase the precious metals, and the Company records a corresponding sale and receivable. Substantially all inventories loaned under consignment arrangements are collateralized for the benefit of the Company. Commemorative Coins. Our commemorative coin inventory, including its premium component, is held at the lower of cost or market, because the value of commemorative coins is influenced more by supply and demand determinants than on the underlying spot price of the precious metal content of the commemorative coins. Unlike our bullion coins, the value of commemorative coins is not subject to the same level of volatility as bullion coins because our commemorative coins typically carry a substantially higher premium over the spot metal price than bullion coins. Our commemorative coins are not hedged, are included in inventory at the lower of cost or market and totaled $0.1 million and $1.5 million as of December 31, 2015 and June 30, 2015 , respectively. Borrowed Precious Metals from Suppliers. Inventories include amounts borrowed from suppliers under arrangements to purchase precious metals on an unallocated basis that are held by the supplier. Unallocated or pool metal represents an unsegregated inventory position that is due on demand, in a specified physical form, based on the total ounces of metal held in the position. Amounts under these arrangements require delivery either in the form of precious metals or cash. Corresponding obligations related to liabilities on borrowed metals are reflected on the condensed consolidated balance sheets and totaled $4.2 million and $9.5 million as of December 31, 2015 and June 30, 2015 , respectively. Product Financing Arrangements. Inventories include amounts for obligations under product financing arrangements. The Company enters into a product financing agreement for the transfer and subsequent re-acquisition of gold and silver at a fixed price to a third party finance company. This inventory is restricted and is held at a custodial storage facility in exchange for a financing fee, by the third party finance company. During the term of the financing, the third party finance company holds the inventory as collateral, and both parties intend to return the inventory to the Company at an agreed-upon price based on the spot price on the finance arrangement termination date. The third party charges a monthly fee as percentage of the market value of the outstanding obligation; such monthly charge is classified in interest expense. Pursuant to the guidance in ASC 470-40 Product Financing Arrangements, these transactions do not qualify as sales and therefore have been accounted for as financing arrangements and reflected in the condensed consolidated balance sheet within product financing arrangement. The obligation is stated at the amount required to repurchase the outstanding inventory. Both the product financing and the underlying inventory are carried at fair value, with changes in fair value included in cost of sales in the condensed consolidated statements of income. Such obligation totaled $50.5 million and $39.4 million as of December 31, 2015 and June 30, 2015 , respectively. The Company mitigates market risk of its physical inventories and open commitments through commodity hedge transactions (see Note 10 .) Premium component of inventory The Company's inventories primarily include bullion and bullion coins and are acquired and initially recorded at fair market value. The fair market value of the bullion and bullion coins is comprised of two components: (1) published market values attributable to the cost of the raw precious metal, and (2) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form and the market value attributable solely to the premium is readily determined, as it is published by multiple reputable sources. The premium is included in the cost of the inventory, paid at acquisition, and is a component of the total fair market value of the inventory. The precious metal component of the inventory may be hedged through the use of precious metal commodity positions, while the premium component of our inventory is not a commodity that may be hedged. The Company’s inventories are subsequently recorded at their fair market values, that is, "marked-to-market", except for our commemorative coin inventory. The daily changes in the fair market value of our inventory are offset by daily changes in fair market value of hedging derivatives that are taken with respects to our inventory positions; both the change in the fair market value of the inventory and the change in the fair market value of these derivative instruments are recorded in cost of sales in the condensed consolidated statements of income. The premium component, at market value, included in the inventories as of December 31, 2015 and June 30, 2015 totaled $4.5 million and $3.3 million , respectively. As of December 31, 2015 and June 30, 2015 , the unrealized losses resulting from the difference between market value and cost of physical inventories were $4.7 million and $3.9 million , respectively. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consists of the following at December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Office furniture, fixtures and equipment $ 979 $ 616 Computer equipment 368 368 Computer software 2,626 2,376 Leasehold improvements 1,661 1,700 Subtotal 5,634 5,060 Less: accumulated depreciation (2,625 ) (2,210 ) Property and equipment, net $ 3,009 $ 2,850 Depreciation expense for the three months ended December 31, 2015 and 2014 was $209,000 and $131,000 , respectively. Depreciation expense for the six months ended December 31, 2015 and 2014 was $415,000 and $263,000 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS On July 1, 2005, all of the outstanding common stock of A-Mark was acquired by Spectrum PMI, Inc. Spectrum PMI was a holding company whose outstanding common stock was owned 80% by SGI, and 20% by Auctentia, S.L. In September 2012, SGI purchased from Auctentia its 20% interest in Spectrum PMI. On September 30, 2013, Spectrum PMI was merged with and into SGI, as a result of which all of the outstanding shares of A‑Mark were then owned directly by SGI. In connection with the acquisition of A-Mark by Spectrum PMI on July 1, 2005, the accounts of the Company were adjusted using the push down basis of accounting to recognize the allocation of the consideration paid to the respective net assets acquired. In accordance with the push down basis of accounting, the Company's net assets were adjusted to their fair values as of the date of the acquisition based upon an independent appraisal, which resulted in goodwill of $4.9 million and identifiable purchased intangible assets of $8.4 million . Goodwill represents the excess of the purchase price and related costs over the value assigned to intangible assets of businesses acquired and accounted for under the purchase method. The carrying value of other purchased intangibles as of December 31, 2015 and June 30, 2015 is as described below: dollar amounts in thousands December 31, 2015 June 30, 2015 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Existing customer relationships 5 - 15 5,747 (4,023 ) 1,724 5,747 (3,832 ) 1,915 Non-compete and other 4 2,000 (2,000 ) — 2,000 (2,000 ) — Employment agreement 3 195 (195 ) — 195 (195 ) — Purchased intangibles subject to amortization 7,942 (6,218 ) 1,724 7,942 (6,027 ) 1,915 Trade-name Indefinite $ 454 $ — $ 454 $ 454 $ — $ 454 $ 8,396 $ (6,218 ) $ 2,178 $ 8,396 $ (6,027 ) $ 2,369 The Company's other purchased intangible assets are subject to amortization except for trade-names, which have an indefinite life. Intangible assets subject to amortization are amortized using the straight-line method over their useful lives, which are estimated to be three to fifteen years. Amortization expense related to the Company's intangible assets for the three months ended December 31, 2015 and 2014 was $95,000 and $96,000 , respectively. Amortization expense related to the Company's intangible assets for the six months ended December 31, 2015 and 2014 was $191,000 and $192,000 , respectively. Estimated amortization expense on an annual basis for the succeeding five years is as follows (in thousands): Fiscal year ending June 30, Amount Fiscal 2016 (6 months remaining) $ 194 2017 385 2018 385 2019 385 2020 375 Thereafter — Total $ 1,724 |
Accounts Payable
Accounts Payable | 6 Months Ended |
Dec. 31, 2015 | |
Accounts Payable, Current [Abstract] | |
Accounts Payable | ACCOUNTS PAYABLE Accounts payable consist of the following: in thousands December 31, 2015 June 30, 2015 Trade payable to customers $ 9,048 $ 128 Advances from customers 34,158 38,039 Liability on deferred revenue 8,194 11,039 Due to brokers 2,632 — Other accounts payable 2,027 1,433 $ 56,059 $ 50,639 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company files a consolidated federal income tax return based on a June 30 th tax year end. The provision for income taxes for the three and six months ended December 31, 2015 and 2014 consists of the following: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Federal $ 759 $ 992 $ 3,811 $ 1,672 State and local 68 139 328 237 Provision for income taxes $ 827 $ 1,131 $ 4,139 $ 1,909 The effective tax rate for the three and six months ended December 31, 2015 and 2014 is as follows: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Effective tax rate 38.3 % 40.5 % 38.2 % 40.5 % The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate varies from the federal statutory rate due to permanent adjustments for nondeductible items and state taxes. Transition of Tax Filing Obligation Due to the Spinoff The Company files income tax returns in the U.S., various states and Austria. Prior to the Distribution, the Company was included in the consolidated federal and state tax filings of the Former Parent. In connection with the spinoff, the Company entered into a tax separation agreement with the Former Parent (the "Tax Separation Agreement"). The Tax Separation Agreement governs the respective rights, responsibilities and obligations of the Former Parent and the Company with respect to, among other things, liabilities for U.S. federal, state, local and other taxes. In addition to the allocation of tax liabilities, the Tax Separation Agreement addresses the preparation and filing of tax returns for such taxes and disputes with taxing authorities regarding such taxes. Pursuant to the Tax Separation Agreement, A-Mark may be responsible for any tax amount related to A-Mark that is incurred as the result of adjustments made during the Internal Revenue Service examination or other tax jurisdictions' examinations of the Former Parent. Under the terms of the Tax Separation Agreement, the Former Parent has the responsibility to prepare and file tax returns for tax periods ending prior to the Distribution date and for tax periods which include the Distribution date but end after the Distribution date, which includes A-Mark and its subsidiaries. The Company's condensed consolidated financial statements recognized the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods, as if the Company were a separate taxpayer during the period prior to the Distribution rather than a member of the Former Parent's consolidated income tax return group. Current income tax payable due to the Former Parent reflects balances due to the Former Parent for taxable income generated as if the Company were a separate taxpaying entity prior to the Distribution, net of amounts related to balances due from the Former Parent for its share of income tax assets of the group. Current income tax receivable due from the Former Parent reflects balances due to A-Mark for its share of the income tax assets of the group. As of December 31, 2015 and June 30, 2015 , the amount payable under the Company's income tax sharing obligation due from Former Parent totaled $0.5 million , and $0 million , respectively, and is shown on the face of the condensed consolidated balance sheets as income taxes payable to Former Parent. As of December 31, 2015 and June 30, 2015 , the amount receivable under the Company's income tax sharing obligation due from Former Parent totaled $0.0 million , and $1.1 million , respectively, and is shown on the face of the condensed consolidated balance sheets as income taxes receivable from Former Parent. Tax Balances and Activity The tax returns filed by the Company since the spinoff have been prepared on a basis consistent with past practices. Income taxes receivable represents amounts paid to federal and state jurisdictions in excess of amounts due to taxing authorities based upon taxable income generated following the close of the transaction. Our deferred tax assets and liabilities represent tax effected balances that were assumed in the spinoff and generated since the spinoff. As of December 31, 2015 and June 30, 2015 , the income tax receivable totaled $7.0 million and $7.8 million , respectively. As of December 31, 2015 and June 30, 2015 , the deferred tax assets (non-current) totaled $0 and $23,000 , respectively, the deferred tax liabilities (current) totaled $1.4 million and $0.1 million , respectively, and the deferred tax liabilities (non-current) totaled $0.3 million and $0 . In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized by evaluating both positive and negative evidence. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. As of December 31, 2015 and June 30, 2015 , management concluded that with the exception of certain state net operating losses, it was more likely than not that the Company would be able to realize the benefit of the U.S. federal and state deferred tax assets. We based this conclusion on historical and projected operating performance, as well as our expectation that our operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets. As of December 31, 2015 and June 30, 2015 , the Company has state and city net operating loss carryforwards of approximately $13.7 million and $17.6 million , respectively, which expire beginning with the year ending June 30, 2030 . These state and city net operating loss carryforwards were allocated pursuant to the terms of the Tax Separation Agreement. As of December 31, 2015 and June 30, 2015 , the tax effect of the state and city net operating loss carryforwards included in the Company's deferred tax assets is $0.4 million and $0.9 million , respectively. As of December 31, 2015 and June 30, 2015 , the Company had $114,000 and $114,000 , respectively, of valuation allowance for certain state and city net operating loss carryforwards, based on the Company's quarterly assessment of the realizability of its deferred tax assets. As of December 31, 2015 , the Company has recorded $243,000 of tax expense related to unrecognized tax positions. In addition, the Company had associated balances of $109,000 of accrued interest expense and $72,000 of accrued penalties related to uncertain tax positions. Of the total unrecognized tax benefits, $424,000 would reduce the Company's effective tax rate, if recognized. For the three months ended December 31, 2015 and 2014 , the Company recognized approximately $5,000 and $10,000 of interest expense, respectively, and $0 and $0 of penalties related to uncertain tax positions, respectively. For the six months ended December 31, 2015 and 2014 , the Company recognized approximately $9,000 and $19,000 of interest expense $0 and $0 of penalties related to uncertain tax positions, respectively. Tax Examinations Prior to the Distribution, the Company was included in the consolidated federal and state tax filings of the Former Parent. The Former Parent has been under examination by the IRS for the years ended June 30, 2004 through 2013; however, during the year ended June 30, 2015, the Former Parent was notified that it had successfully resolved the June 30, 2004 through June 30, 2007 tax years. As a result of the IRS exam, the Former Parent amended the state tax filings for the applicable periods. The amended state tax filings resulted in a tax benefit of approximately $0.6 million related to state net operating loss apportioned to the Company under intrastate apportionment rules for the year ended June 30, 2013. The Former Parent remains in appeals with the IRS for the years ended June 30, 2008 through 2013 and in examination with other taxing jurisdictions on certain tax matters, including challenges to certain positions the Former Parent has taken. The Former Parent is unable to determine the outcome of these audits at this time. With few exceptions, either prior federal, state or local examinations have been completed by the tax authorities or the statute of limitations have expired for U.S. federal, state and local income tax returns filed by the Former Parent for the years through 2006. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Sales and Purchases Made to Affiliated Companies During the three and six months ended December 31, 2015 and 2014 , the Company made sales and purchases to various companies that had been under common control with A-Mark through the date of Distribution, and which have been deemed to be related parties. in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Sales Purchases Sales Purchases Sales Purchases Sales Purchases Related Party Company Calzona Ventures, LLC $ — $ — $ — $ — $ — $ — $ 157 $ — Stack's Bowers Numismatics, LLC 8,418 3,564 1,530 3,617 18,900 30,568 2,925 6,538 Related party, total $ 8,418 $ 3,564 $ 1,530 $ 3,617 $ 18,900 $ 30,568 $ 3,082 $ 6,538 As of December 31, 2015 and June 30, 2015 , the Company's had related party receivables and payables balance as set forth below: in thousands December 31, 2015 June 30, 2015 Receivables Payable Receivables Payable Related Party Company Stack's Bowers Numismatics, LLC $ 927 $ — $ 2 $ 10 SGI (Former Parent) 75 510 1,095 — Related party, total $ 1,002 $ 510 $ 1,097 $ 10 Secured Loans Made to Affiliated Companies On June 18, 2014, CFC assumed the rights to a secured portfolio of short-term loan receivables totaling $2.6 million from Stack's Bowers Numismatics, LLC (Stack's Bowers), a related party. The Company reflects this transaction as a financing arrangement with the related party, secured by the portfolio of short-term loan receivables collateralized by numismatic and semi numismatic products, and bearing interest at 5.5% per annum. This secured loan was paid off in full, plus accrued interest, on August 19, 2014. As of December 31, 2015 , the aggregate carrying value of this loan was $0.0 million . On October 9, 2014, CFC entered into a loan agreement with Stack’s Bowers providing for a secured line of credit in the maximum principal amount of up to $16.0 million , bearing interest at a competitive rate per annum. Advances under the line of credit were secured by numismatic and semi-numismatic products. This secured loan was paid off in full, plus accrued interest, on April 15, 2015. As of December 31, 2015 , the aggregate carrying value of this loan was $0.0 million . On July 23, 2015, CFC entered into a loan agreement with Stack's Bowers providing a secured line of credit in the maximum principal amount of up to $2.5 million , bearing interest at a competitive rate per annum. The loan is secured by numismatic and semi-numismatic products. As of December 31, 2015 , the aggregate carrying value of this loan was $0.9 million . Interest Income Earned from Affiliated Companies During the three and six months ended December 31, 2015 and 2014 , the Company earned interest income related to loans that we made to Stack's Bowers and financing products sold to Stack's Bower, as set forth below: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Related Party Company Stack's Bowers Numismatics, LLC Interest income from loan receivables $ 12 $ 100 $ 32 $ 123 Interest income from finance products 160 3 316 7 Total $ 172 $ 103 $ 348 $ 130 Secondment Agreement Fees and Reimbursements In connection with the Distribution, SGI and the Company entered into a secondment agreement (the "Secondment Agreement"). Under the terms of the Secondment Agreement, A-Mark has agreed to make Gregory N. Roberts, our Chief Executive Officer, and Carol Meltzer, our Executive Vice President, General Counsel and Secretary, available to SGI for the performance of specified management and professional services following the spinoff in exchange for an annual secondment fee of $150,000 and reimbursement of certain bonus payments. Neither Mr. Roberts nor Ms. Meltzer will devote more than 20% of their professional working time on a monthly basis to SGI and in no event will the performance of services for SGI interfere with the performance of the duties and responsibilities of Mr. Roberts and Ms. Meltzer to A-Mark. In addition, to the services to be provided under the Secondment Agreement, both Mr. Roberts and Ms. Meltzer continue to serve as officers and directors of SGI. The Secondment Agreement will terminate on June 30, 2016 and is subject to earlier termination under certain circumstances. Under the Secondment Agreement, SGI will be obligated to reimburse A-Mark for the portion of the performance bonus payable under Mr. Roberts’ employment agreement with A-Mark attributable to pre-tax profits of SGI. The Company records the accrual of secondment fees as a reduction to selling, general and administration expense. During the three months ended December 31, 2015 and 2014 the Company recognized approximately $75,000 and $75,000 , respectively, of secondment fees. During the six months ended December 31, 2015 and 2014 , the Company recognized approximately $75,000 and $75,000 , respectively, of secondment fees. As of December 31, 2015 and June 30, 2015 the outstanding balance of secondment fees due from SGI was $75,000 and $0 , respectively. Income Tax Sharing Obligations The amount payable under the Company's income tax sharing obligation due from SGI totaled $0.5 million , and $0 million as of December 31, 2015 and June 30, 2015 , respectively, and is shown on the face of the condensed consolidated balance sheets as income taxes payable to Former Parent. The amount receivable under the Company's income tax sharing obligation due from SGI, totaled $0.0 million , and $1.1 million as of December 31, 2015 and June 30, 2015 , respectively, and is shown on the face of the condensed consolidated balance sheets as income taxes receivable from Former Parent (see Note 11 .) Transaction with Affiliate of Board Member In February 2015, A-M Global Logistics, LLC ("Logistics"), a wholly owned subsidiary of the Company that was formed to operate the Company's logistics fulfillment center in Las Vegas, Nevada, entered into various agreements with W. A. Richardson Builders, LLC ("WAR"), for the buildout of and improvements to the Las Vegas premises. The spouse of the Chairman of the Company's Audit Committee, Ellis Landau, is an owner and a managing member of WAR. The agreements were amended in January 2016. The amounts involved under the WAR contract, as amended, are approximately $1.5 million . WAR is entitled to a fee equal to 5.0% of the contract work. Royalties to Former Owner As part of the sales agreement dated July 1, 2005, a former owner of the Company receives a portion of the finance income earned with a specific customer through July 2015. The Company incurred $0 and $47,000 in selling, general and administrative expenses (royalty expense) during the three months ended December 31, 2015 and 2014 , respectively. The Company incurred $21,000 and $120,000 in selling, general and administrative expenses (royalty expense) during the six months ended December 31, 2015 and 2014 , respectively. The total amount due to the former owner of $275,000 and $254,000 are included in accrued liabilities as of December 31, 2015 and June 30, 2015 , respectively. |
Financing Agreements
Financing Agreements | 6 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Financing Agreements | FINANCING AGREEMENTS Lines of Credit The Company has a borrowing facility (“Trading Credit Facility”) with a group of financial institutions under an inter-creditor agreement, which provides for lines of credit up to the maximum of the credit facility. All lenders have a perfected, first security interest in all assets of the Company presented as collateral. Loan advances will be available against a borrowing base report of eligible assets in accordance with the inter-creditor agreement currently in place. Pledged collateral comprises assigned and confirmed inventory, trade receivables, trade advances, derivatives, equity and pledged non bullion and bullion loans. As of December 31, 2015 , the maximum of the Trading Credit Facility was $205.0 million . The Company routinely uses the Trading Credit Facility to purchase precious metals from suppliers and for operating cash flow purposes. Amounts under the Trading Credit Facility bear interest based on London Interbank Offered Rate (“LIBOR”) plus a margin. The one-month LIBOR rate was approximately 0.43% and 0.19% as of December 31, 2015 and June 30, 2015 , respectively. Borrowings are due on demand and totaled $162.5 million and $147.0 million at December 31, 2015 and at June 30, 2015 , respectively. The amounts available under the Trading Credit Facility are determined at the end of each week following a specified borrowing base formula. The Company is able to access additional credit as needed to finance operations, subject to the overall limits of the Trading Credit Facility and lender approval of the revised borrowing base calculation. The amounts available under the Trading Credit Facility after taking into consideration current borrowings, based upon the latest approved borrowing bases in effect, totaled $32.2 million and $20.9 million at December 31, 2015 and June 30, 2015 , respectively. The Trading Credit Facility has certain restrictive financial covenants, which require the Company to maintain a minimum tangible net worth. As of December 31, 2015 the minimum tangible net worth financial covenant under the Trading Credit Facility was $35.0 million . The Company is in compliance with all restrictive financial covenants as of December 31, 2015 . The Company's ability to pay dividends, if it were to elect to do so, could be limited as a result of these restrictions. Each lender has the right to cancel its credit line upon written notice. Interest expense related to the Company’s borrowing arrangements totaled $1.1 million and $0.8 million , which represents 86.9% and 87.5% of the total interest expense recognized, for the three months ended December 31, 2015 and 2014 , respectively. Interest expense related to the Company’s borrowing arrangements totaled $2.3 million and $1.8 million , which represents 89.4% and 87.6% of the total interest expense recognized, for the six months ended December 31, 2015 and 2014 , respectively. Our borrowing arrangements carried a daily weighted average effective interest rate of 2.72% and 2.94% , respectively, for the three months ended December 31, 2015 and 2014 . Our borrowing arrangements carried a daily weighted average effective interest rate of 2.77% and 3.00% , respectively, for the six months ended December 31, 2015 and 2014 . Liability on Borrowed Metals The Company borrows precious metals from its suppliers under short-term agreements, which bear interest at a designated rate. Amounts under these agreements are due at maturity and require repayment either in the form of precious metals or cash. The Company's inventories included borrowed metals with market values totaling $4.2 million and $9.5 million as of December 31, 2015 and June 30, 2015 , respectively. Product Financing Arrangement The Company has an agreement with a financial institution (a third party) that allows the Company to transfer its gold and silver inventory at a fixed price to this third party. Such agreement allows the Company to repurchase this inventory at an agreed-upon price based on the spot price on the repurchase date. The third party charges a monthly fee as percentage of the market value of the outstanding obligation; such monthly charges are classified in interest expense. These transactions do not qualify as sales, and therefore have been accounted for as financing arrangements and reflected in the condensed consolidated balance sheet within product financing obligation. The obligation is stated at the amount required to repurchase the outstanding inventory. Both the product financing obligation and the underlying inventory (which is entirely restricted) are carried at fair value, with changes in fair value recorded as a component of cost of sales in the condensed consolidated statements of income. Such obligation totaled $50.5 million and $39.4 million as of December 31, 2015 and June 30, 2015 , respectively. |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Transactions | 6 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instrument and Hedging Transactions | DERIVATIVE INSTRUMENTS AND HEDGING TRANSACTIONS The Company is exposed to market risk, such as change in commodity prices, and foreign exchange rates. To manage the volatility relating to these exposures, the Company enters into various derivative products, such as forwards and futures contracts. By policy, the Company historically has entered into derivative financial instruments for the purpose of hedging substantially all of Company's market exposure to precious metals prices, and not for speculation reasons. Commodity Price Management The Company manages the value of certain specific assets and liabilities of its trading business, including trading inventories, by employing a variety of hedging strategies. These strategies include the management of exposure to changes in the market values of the Company's trading inventories through the purchase and sale of a variety of derivative instruments, such as, forwards and futures contracts. The Company's trading inventories and purchase and sale transactions consist primarily of precious metal products. The value of these assets and liabilities are marked-to-market daily to the prevailing closing price of the underlying precious metals. The Company's precious metals inventories are subject to market value changes, created by changes in the underlying commodity market prices. Inventories purchased or borrowed by the Company are subject to price changes. Inventories borrowed are considered natural hedges, since changes in value of the metal held are offset by the obligation to return the metal to the supplier. Open sale and purchase commitments are subject to changes in value between the date the purchase or sale price is fixed (the trade date) and the date the metal is received or delivered (the settlement date). The Company seeks to minimize the effect of price changes of the underlying commodity through the use of forward and futures contracts. The Company's policy is to substantially hedge its inventory position, net of open sale and purchase commitments that is subject to price risk. The Company regularly enters into precious metals commodity forward and futures contracts with major financial institutions to hedge price changes that would cause changes in the value of its physical metals positions and purchase commitments and sale commitments. The Company has access to all of the precious metals markets, allowing it to place hedges. However, the Company also maintains relationships with major market makers in every major precious metals dealing center. The Company enters into these derivative transactions solely for the purpose of hedging its inventory subject to price risk, and not for speculative market purposes. Due to the nature of the Company's global hedging strategy, the Company is not using hedge accounting as defined under Topic 815 of the ASC, whereby the gains or losses would be deferred and included as a component of other comprehensive income . Instead, gains or losses resulting from the Company's futures and forward contracts and open sale and purchase commitments are reported as unrealized gains or losses on commodity contracts (a component of cost of sales) with the related unrealized amounts due from or to counterparties reflected as a derivative asset or liability. Derivative Assets and Liabilities The Company's derivative assets and liabilities represent the net fair value of the difference (or intrinsic value) between market values and trade values at the trade date for open precious metals sale and purchase contracts, as adjusted on a daily basis for changes in market values of the underlying metals, until settled. The Company's derivative assets and liabilities represent the net fair value of open precious metals forwards and futures contracts. The precious metals forwards and futures contracts are settled at the contract settlement date. All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions (i.e., offsetting derivative instruments). Substantially all of these transactions are secured by the underlying metals positions. As such, the Company's derivative contracts with the same counterparty, the receivables and payables have been netted on the condensed consolidated balance sheets. Such derivative contracts include open sale and purchase commitments, futures, forwards and margin accounts. In the table below, the aggregate gross and net derivative receivables and payables balances are presented by contract type and type of hedge, as of December 31, 2015 and June 30, 2015 . December 31, 2015 June 30, 2015 in thousands Gross Derivative Amounts Netted Cash Collateral Pledge Net Derivative Gross Derivative Amounts Netted Cash Collateral Pledge Net Derivative Nettable derivative assets: Open sale and purchase commitments $ 3,736 $ (957 ) $ — $ 2,779 $ 2,815 $ (1,093 ) $ — $ 1,722 Future contracts 11,411 — — 11,411 11,159 (5,796 ) — 5,363 Forward contracts 2,933 — — 2,933 4,279 — — 4,279 $ 18,080 $ (957 ) $ — $ 17,123 $ 18,253 $ (6,889 ) $ — $ 11,364 Nettable derivative liabilities: Open sale and purchase commitments $ 15,515 $ (1,914 ) $ — $ 13,601 $ 11,723 $ (734 ) $ — $ 10,989 Margin accounts 12,456 — (6,127 ) 6,329 12,430 — (5,522 ) 6,908 $ 27,971 $ (1,914 ) $ (6,127 ) $ 19,930 $ 24,153 $ (734 ) $ (5,522 ) $ 17,897 The Company’s management sets credit and position risk limits. These limits include gross position limits for counterparties engaged in sales and purchase transactions with the Company. They also include collateral limits for different types of sale and purchase transactions that counterparties may engage in from time to time. Gain or Loss on Derivative Instruments The Company records the derivative at the trade date with a corresponding unrealized gain (loss), which is reflected in the cost of sales in the condensed consolidated statements of income. The Company adjusts the derivatives to fair value on a daily basis until the transaction is physically settled. Sales which are physically settled are recognized at the gross amount in the consolidated statements of income. Below, is a summary of the net losses on derivative instruments for the three and six months ended December 31, 2015 and 2014 . in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Gain (loss) on derivative instruments: Unrealized gain (loss) on open future commodity and forward contracts and open sale and purchase commitments, net $ 596 $ 9,006 $ (3,220 ) $ 10,284 Realized loss on future commodity contracts, net (3,197 ) (37,172 ) (13,788 ) (44,806 ) Total $ (2,601 ) $ (28,166 ) $ (17,008 ) $ (34,522 ) The Company’s open sale and purchase commitments typically settle within 2 business days, and for those commitments that do not have stated settlement dates, the Company has the right to settle the positions upon demand. Futures and forwards contracts open at quarter-end typically settle within 30 days. Summary of Hedging Activity In a hedging relationship, the change in the value of the derivative financial instrument is offset to a great extent by the change in the value of the underlying hedged item. The following table summarizes the results of our hedging activities, which shows the precious metal commodity inventory position, net of open sale and purchase commitments, that is subject to price risk as of December 31, 2015 and at June 30, 2015 . in thousands December 31, 2015 June 30, 2015 Inventory $ 239,779 $ 191,501 Less unhedgable inventory: Commemorative coin inventory, held at lower of cost or market (76 ) (1,518 ) Premium on metals position (4,451 ) (3,255 ) Inventory value not hedged (4,527 ) (4,773 ) Subtotal 235,252 186,728 Commitments at market: Open inventory purchase commitments 353,421 444,023 Open inventory sales commitments (226,942 ) (249,081 ) Margin sale commitments (12,456 ) (12,430 ) In-transit inventory no longer subject to market risk (8,885 ) (13,807 ) Unhedgable premiums on open commitment positions 2,192 528 Inventory borrowed from suppliers (4,234 ) (9,500 ) Product financing obligation (50,504 ) (39,425 ) Advances on industrial metals 3,235 3,340 Inventory subject to price risk 291,079 310,376 Inventory subject to derivative financial instruments: Precious metals forward contracts at market values 124,497 202,323 Precious metals futures contracts at market values 166,330 107,993 Total market value of derivative financial instruments 290,827 310,316 Net inventory subject to commodity price risk $ 252 $ 60 Notional Balances of Derivatives The notional balances of the Company's derivative instruments, consisting of contractual metal quantities, are expressed at current spot prices of the underlying precious metal commodity. As of December 31, 2015 and June 30, 2015 , the Company had the following outstanding commitments and open forward and future contracts: in thousands December 31, 2015 June 30, 2015 Purchase commitments $ 353,421 $ 444,023 Sales commitments (226,942 ) (249,081 ) Margin sales commitments (12,456 ) (12,430 ) Open forward contracts 124,497 202,323 Open futures contracts 166,330 107,993 The contract amounts (i.e., notional balances) of the Company's forward and futures contracts and the open sales and purchase orders are properly not reflected in the accompanying condensed consolidated balance sheet, the Company records the difference between the market price of the underlying metal or contract and the trade amount at fair value. The Company is exposed to the risk of failure of the counterparties to its derivative contracts. Significant judgment is applied by the Company when evaluating the fair value implications. The Company regularly reviews the creditworthiness of its major counterparties and monitors its exposure to concentrations. At December 31, 2015 , the Company believes its risk of counterparty default is mitigated as a result of such evaluation and the short-term duration of these arrangements. Foreign Currency Exchange Rate Management The Company utilizes foreign currency forward contracts to manage the effect of foreign currency exchange fluctuations of its sale and purchase transactions. These contracts generally have maturities of less than one week. The accounting treatment of our foreign currency exchange derivative instruments is similar to the accounting treatment of our commodity derivative instruments, that is, the change in the value in the financial instrument is immediately recognized as a component of cost of sales. Unrealized net gains (losses) on foreign exchange derivative instruments shown on the face of the condensed consolidated statements of income totaled $150,000 and $(75,000) for the three months ended December 31, 2015 and 2014 , respectively. Unrealized net gains (losses) on foreign exchange derivative instruments shown on the face of the condensed consolidated statements of income totaled $111,000 and $(84,000) for the six months ended December 31, 2015 and 2014 , respectively. The market values (fair values) of the Company’s foreign exchange forward contracts and the net open sale and purchase commitment transactions, denominated in foreign currencies, outstanding at December 31, 2015 was $0.6 million and $3.1 million , respectively. The market values (fair values) of the Company’s foreign exchange forward contracts and the net open sale and purchase commitment transactions, denominated in foreign currencies, outstanding at June 30, 2015 was $6.2 million and $9.9 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Refer to Note 13 of the Notes to Consolidated Financial Statements in the 2015 Annual Report for information relating to minimum rental payments under operating and capital leases, consulting and employment contracts, and other commitments. Other than the following item, there has been no material changes to those scheduled commitments as of the filing of that report. On October 25, 2015, the Company received notification from the City of Santa Monica that the City was challenging the Company's classification as an "agent/broker" for purposes of computing the business license fee due to the City. Historically, A-Mark has paid its business license fee on net receipts, consistent with the "agent/broker" classification. The City of Santa Monica has asserted that the Company should have instead paid the fee based on gross receipts and has made a preliminary assessment against the Company seeking a material amount of what it believes to be underreported fees, together with a material amount of penalties and interest. We strongly disagree with and intend to challenge the position taken by City of Santa Monica with respect to this matter. Neither the outcome of this administrative matter nor the amount or range of a potential impact to the Company in the event of an unfavorable outcome can be determined at this time. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Payment of Dividends In fiscal 2015, the Board of Directors of the Company initiated a cash dividend policy that calls for the payment of quarterly dividends. The table below summarizes the quarterly dividends declared pursuant to this policy: Dividend Record Date (at close of Business) Type of Dividend Basis of Payment Payment Date February 6, 2015 March 12, 2015 Cash $ 0.05 per common share March 20, 2015 May 1, 2015 May 14, 2015 Cash $ 0.05 per common share May 25, 2015 September 11, 2015 September 24, 2015 Cash $ 0.05 per common share October 5, 2015 October 30, 2015 November 13, 2015 Cash $ 0.05 per common share November 25, 2015 On February 2, 2016, the Board of Directors of the Company declared a quarterly cash dividend of $0.07 per common share to stockholders of record at the close of business on February 15, 2016, which is scheduled to be paid on or about February 29, 2016. 2014 Stock Award and Incentive Plan Prior to the Distribution, the Company’s Board of Directors ("Board") adopted and the Company's then sole stockholder approved the 2014 Stock Award and Incentive Plan ("2014 Plan"). Under the 2014 Plan, the Company may grant options and other equity awards as a means of attracting and retaining officers, employees, non-employee directors and consultants, to provide incentives to such persons, and to align the interests of such persons with the interests of stockholders by providing compensation based on the value of the Company's stock. Awards under the 2014 Plan may be granted in the form of incentive or non-qualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units, dividend equivalent rights and other stock-based awards (which may include outright grants of shares). The 2014 Plan also authorizes grants of performance-based cash incentive awards. The 2014 Plan is administered by the Compensation Committee of the Board of Directors, which, in its discretion, may select officers and other employees, directors (including non-employee directors) and consultants to the Company and its subsidiaries to receive grants of awards. The Board of Directors itself may perform any of the functions of the Compensation Committee under the 2014 Plan. Under the 2014 Plan, the exercise price of options and base price of SARs may be set at the discretion of the Committee, but generally may not be less than the fair market value of the shares on the date of grant, and the maximum term of stock options and SARs is 10 years . The 2014 Plan limits the number of share-denominated awards that may be granted to any one eligible person to 250,000 shares in any fiscal year. Also, in the case of non-employee directors, the 2014 Plan limits the maximum grant-date fair value at $300,000 of stock-denominated awards granted to a director in a given fiscal year, except for a non-employee Chairman of the Board whose grant-date fair value maximum is $600,000 per fiscal year. The 2014 Plan will terminate when no shares remain available for issuance and no awards remain outstanding; however, the authority to grant new awards will terminate on December 13, 2022. As of December 31, 2015 , 622,000 shares were available for grant under the 2014 Plan. Valuation and Significant Assumptions of Equity Awards Issued The Company uses the Black-Scholes option pricing model, which has various inputs such as the estimated common share price, the risk-free interest rate, volatility, expected life and dividend yield, all of which are estimates. The Company also records share-based compensation expense net of expected forfeitures. Valuation models and significant assumptions for share-based compensation are as follows: • Determining Fair Values. For all equity grants granted, the primary factor in the valuation of equity awards was the fair value of the underlying common stock at the time of grant. • Expected Volatility. The Company has limited data regarding company-specific historical or implied volatility of its share price. Consequently, the Company estimates its volatility based on the average of the historical volatilities of peer group companies from publicly available data for sequential periods approximately equal to the expected terms of its option grants. Management considers factors such as stage of life cycle, competitors, size, market capitalization and financial leverage in the selection of similar entities. • Expected Term. The expected term represents the period of time in which the options granted are expected to be outstanding. The Company estimates the expected term of options granted based on the midpoint between the vesting date and the end of the contractual term under the “short-cut” or simplified method permitted by the SEC implementation guidance for “plain vanilla” options. The Company will continue to use the short-cut method, as permitted, until we have developed sufficient historical data for employee exercise and post-vesting employment termination behavior after our common stock has been publicly traded for a reasonable period of time. • Forfeitures . The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual experience differs from those estimates. For the current fiscal year, the Company estimated an average overall forfeiture rate of 0%, based on the historical forfeitures rates of executives of our Former Parent prior to the spinoff transaction. Share-based compensation is recorded net of expected forfeitures. The Company will periodically assess the forfeiture rate and the amount of expense recognized based on estimated historical forfeitures as compared to actual forfeitures. Changes in estimates are recorded in the period they are identified. • Risk-Free Rate. The risk-free interest rate is selected based upon the implied yields in effect at the time of the option grant on U.S. Treasury zero-coupon issues with a term approximately equal to the expected life of the option being valued. • Dividends. The Company anticipates on paying quarterly cash dividends 5% of outstanding shares of common stock in the foreseeable future. The Company did not grant any share-based awards during the three months ended December 31, 2015 and 2014 . There are no awards with performance conditions nor awards with market conditions. Stock Options During the three months ended December 31, 2015 and 2014 , the Company incurred $38,670 and $37,644 of compensation expense related to stock options, respectively. During the six months ended December 31, 2015 and 2014 , the Company incurred $77,341 and $77,220 of compensation expense related to stock options, respectively. As of December 31, 2015 , there was total remaining compensation expense of $0.3 million related to employee stock options, which will be recorded over a weighted average period of approximately 1.8 years . The following table summarizes the stock option activity for the six months ended December 31, 2015 . Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (in thousands) Weighted Average Grant Date Fair Value Per Award (1) Outstanding at June 30, 2015 233,127 $ 9.89 $ 283 $ 5.96 Granted through stock option plan — — Exercised — — Cancellations, expirations and forfeitures — — Outstanding at December 31, 2015 233,127 9.89 $ 2,088 $ 5.96 Shares exercisable at December 31, 2015 182,184 10.30 $ 1,558 $ 5.92 _________________________________ (1) For awards held by A-Mark employees, the fair value of the awards assumed in Distribution was based on the awards' fair value at grant date, which were determined by SGI prior to the Distribution. Since the Company does not recognize compensation costs for the awards assumed in the Distribution held by employees of SGI, the calculation of the weighted average fair value per share price at grant date was solely based on the awards' fair value at grant date that were awarded to employees of A-Mark. Following is a summary of the status of stock options outstanding at December 31, 2015 : Options Outstanding Options Exercisable Exercise Price Ranges Number of Shares Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price From To $ — $ 10.00 134,239 6.85 $ 8.39 86,296 6.84 $ 8.41 10.01 15.00 98,888 6.78 11.94 95,888 6.71 12.00 233,127 6.82 9.89 182,184 6.78 10.30 Restricted Stock Units During the three months ended December 31, 2015 and 2014 , the Company incurred $14,804 and $22,561 of compensation expense related to RSUs, respectively. During the six months ended December 31, 2015 and 2014 , the Company incurred $29,608 and $45,121 of compensation expense related to RSUs, respectively. The remaining compensation expense that will be recorded under restricted stock grants totals $31,752 , which will be recorded over a weighted average period of approximately 0.5 years . The following table summarizes the RSU activity for the six months ended December 31, 2015 : Shares Weighted Average Share Price at Grant Date (1) Outstanding at June 30, 2015 86,298 $ 2.34 Shares granted — — Shares released — — Shares surrendered to cover employee minimum withholding taxes — — Shares forfeited — — Outstanding at December 31, 2015 86,298 $ 2.34 Vested but unissued at December 31, 2015 35,957 $ — _________________________________ (1) For awards held by A-Mark employees, the fair value of the awards assumed in Distribution was based on the awards' fair value at grant date, which were determined by SGI prior to the Distribution. Since, the Company does not recognize compensation costs for the awards assumed in the Distribution held by employees of SGI, the calculation of the weighted average share price at grant date was solely based on the awards' fair value at grant date that were awarded to employees of A-Mark. No tax benefit was recognized in the condensed consolidated statements of income related to share-based compensation for the three and six months ended December 31, 2015 and 2014 . No share-based compensation was capitalized for the three and six months ended December 31, 2015 and 2014 . Stock Appreciation Rights The Company, from time to time, may grant SARs to certain key employees and executive officers. The number of shares to be received under these awards ultimately depends on the appreciation in the Company’s common stock over a specified period of time, generally 3.0 years . At the end of the stated appreciation period, the number of shares of common stock issued will be equal in value to the appreciation in the shares of the Company’s common stock, as measured from the stock's closing price on the date of grant to the average price in the last month of the third year of vesting. As of December 31, 2015 and June 30, 2015 , the Company had zero and 8,990 SARs issued and outstanding, respectively. The Company did not recognize any compensation expense related to these awards during the three months ended December 31, 2015 and 2014 . Certain Anti-Takeover Provisions The Company’s Certificate of Incorporation and by-laws contain certain anti-takeover provisions that could have the effect of making it more difficult for a third party to acquire, or of discouraging a third party from attempting to acquire, control of the Company without negotiating with its Board. Such provisions could limit the price that certain investors might be willing to pay in the future for the Company’s securities. Certain of such provisions provide for a Board with staggered terms, allow the Company to issue preferred stock with rights senior to those of the common stock, or impose various procedural and other requirements which could make it more difficult for stockholders to effect certain corporate actions. |
Customer and Supplier Concentra
Customer and Supplier Concentration | 6 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Customer and Supplier Concentration | CUSTOMER AND SUPPLIER CONCENTRATION Customer Concentration Customers providing 10 percent or more of the Company's revenues for the three and six months ended December 31, 2015 and 2014 are listed below: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Amount Percent Amount Percent Amount Percent Amount Percent Total revenue $ 1,529,143 100.0 % $ 1,538,871 100.0 % $ 3,536,079 100.0 % $ 2,992,337 100.0 % Customer concentrations HSBC Bank USA $ 281,473 18.4 % $ 448,453 29.1 % $ 615,026 17.4 % $ 982,991 32.9 % JM Bullion 157,087 10.3 116,082 7.5 403,956 11.4 182,647 6.1 Total $ 438,560 28.7 % $ 564,535 36.6 % $ 1,018,982 28.8 % $ 1,165,638 39.0 % Customers providing 10 percent or more of the Company's accounts receivable as of December 31, 2015 and June 30, 2015 , respectively, are listed below: in thousands December 31, 2015 June 30, 2015 Amount Percent Amount Percent Total accounts receivable, net $ 22,557 100.0 % $ 30,025 100.0 % Customer concentrations United Overseas Bank Limited $ 2,458 10.9 % $ — — % United States Mint 7,367 32.7 9,781 32.6 Jerrit Canyon 3,042 13.5 1,435 4.8 Total $ 12,867 57.1 % $ 11,216 37.4 % The loss of any of the above listed customers could have a material adverse effect on the operations of the Company. Supplier Concentration The Company buys precious metals from a variety of sources, including through brokers and dealers, from sovereign and private mints, from refiners and directly from customers. The Company believes that no one or small group of suppliers is critical to its business, since other sources of supply are available that provide similar products on comparable terms. |
Geographic Information
Geographic Information | 6 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Geographic Information | GEOGRAPHIC INFORMATION Revenue are attributed to geographic location based on customer location. The Company's geographic operations are as follows: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Revenue by geographic region: United States $ 1,402,860 $ 1,345,428 $ 3,256,132 $ 2,658,914 Europe 42,616 64,460 94,748 119,410 North America, excluding United States 73,860 110,057 160,645 181,836 Asia Pacific 8,999 18,732 22,265 30,044 Africa 18 25 63 25 Australia 790 167 2,194 2,106 South America — 2 32 2 Total revenue $ 1,529,143 $ 1,538,871 $ 3,536,079 $ 2,992,337 in thousands December 31, 2015 June 30, 2015 Inventories by geographic region: United States $ 218,211 $ 173,939 Europe 6,484 4,374 North America, excluding United States 14,160 12,287 Asia 924 901 Total inventories $ 239,779 $ 191,501 in thousands December 31, 2015 June 30, 2015 Assets by geographic region: United States $ 340,482 $ 302,046 Europe 7,513 10,668 North America, excluding United States 14,160 12,287 Asia 924 901 Total assets $ 363,079 $ 325,902 in thousands December 31, 2015 June 30, 2015 Long term assets by geographic region: United States $ 15,440 $ 13,204 Europe 67 72 Total long-term assets $ 15,507 $ 13,276 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Additional Investment in a Noncontrolled Entity On January 15, 2016, the Company consummated the purchase of an additional 5.8% of the issued and outstanding common stock of one of its customers, an online retailer of generic gold and silver coins and bullion, pursuant to an amended and restated agreement with the retailer dated as of October 26, 2015. The purchase price for the acquisition was $2.3 million . As result of this transaction, the Company now owns 20% of the retailer's outstanding common stock on a fully diluted basis. Dividend Declaration On February 2, 2016, the Board of Directors of the Company declared a quarterly cash dividend of $0.07 per common share to stockholders of record at the close of business on February 15, 2016, which is scheduled to be paid on or about February 29, 2016. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements reflect the financial condition, results of operations, and cash flows of the Company, and were prepared using accounting principles generally accepted in the United States (“U.S. GAAP”). The Company operated in one segment for all periods presented. These condensed consolidated financial statements include the accounts of A-Mark, and its wholly owned subsidiaries, CFC, AMTAG, Logistics and TDS (collectively the “Company”). All significant inter-company accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. These estimates include, among others, determination of fair value, and allowances for doubtful accounts, impairment assessments of long-lived assets and intangible assets, valuation reserve determination on deferred tax assets, and revenue recognition judgments. Significant estimates also include the Company's fair value determination with respect to its financial instruments and precious metals materials. Actual results could materially differ from these estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Assets that potentially subject the Company to concentrations of credit risk consist principally of receivables, loans of inventory to customers, and inventory hedging transactions. Concentration of credit risk with respect to receivables is limited due to the large number of customers composing the Company's customer base, the geographic dispersion of the customers, and the collateralization of substantially all receivable balances. Based on an assessment of credit risk, the Company typically grants collateralized credit to its customers. The Company enters into inventory hedging transactions, principally utilizing metals commodity futures contracts traded on national futures exchanges or forward contracts with credit worthy financial institutions. Credit risk with respect to loans of inventory to customers is minimal; substantially all inventories loaned under consignment arrangements are collateralized for the benefit of the Company. All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Substantially all of these transactions are secured by the underlying metals positions. |
Foreign Currency | Foreign Currency The functional currency of the Company is the United States dollar ("USD"). Also, the functional currency of the Company's wholly-owned foreign subsidiary, AMTAG, is USD, but it maintains its books of record in Euros. The Company remeasures the financial statements of AMTAG into USD. The remeasurement of local currency amounts into USD creates remeasurement gains and losses, which are included in the condensed consolidated statements of income. To manage the effect of foreign currency exchange fluctuations, the Company utilizes foreign currency forward contracts. These derivatives generate gains and losses when they are settled and/or when they are marked to market. The change in the value in the derivative instruments is shown on the face of the condensed consolidated statements of income as unrealized net gains (losses) on foreign exchange. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. |
Inventories | Inventories Inventories principally include bullion and bullion coins and are acquired and initially recorded at fair market value. The fair market value of the bullion and bullion coins is comprised of two components: (1) published market values attributable to the costs of the raw precious metal, and (2) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form and the market value attributable solely to the premium may be readily determined, as it is published by multiple reputable sources. The Company’s inventories, except for certain lower of cost or market basis products (as discussed below), are subsequently recorded at their fair market values, that is, "marked-to-market". The daily changes in the fair market value of our inventory are offset by daily changes in the fair market value of hedging derivatives that are taken with respect to our inventory positions; both the change in the fair market value of the inventory and the change in the fair market value of these derivative instruments are recorded in cost of sales in the condensed consolidated statements of income. While the premium component included in inventories is marked-to-market, our commemorative coin inventory, including its premium component, is held at the lower of cost or market, because the value of commemorative coins is influenced more by supply and demand determinants than on the underlying spot price of the precious metal content of the commemorative coins. Unlike our bullion coins, the value of commemorative coins is not subject to the same level of volatility as bullion coins because our commemorative coins typically carry a substantially higher premium over the spot metal price than bullion coins. Neither the commemorative coin inventory nor the premium component of our inventory is hedged (see Note 6 .) |
Property and Equipment and Depreciation | Property and Equipment and Depreciation Property and equipment is stated at cost less accumulated depreciation. Depreciation is calculated using a straight line method based on the estimated useful lives of the related assets, ranging from three years to five years . |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill and other indefinite life intangibles are evaluated for impairment annually in the fourth quarter of the fiscal year (or more frequently if indicators of potential impairment exist) in accordance with the Intangibles - Goodwill and Other Topic 350 of the Accounting Standards Codification ("ASC".) Other purchased intangible assets continue to be amortized over their useful lives and are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be recoverable. The Company may first qualitatively assess whether relevant events and circumstances make it more likely than not that the fair value of the reporting unit's goodwill is less than its carrying value. If, based on this qualitative assessment, management determines that goodwill is more likely than not to be impaired, the two-step impairment test is performed. This first step in this test includes comparing the fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step in the test is performed, which is measurement of the impairment loss. The impairment loss is calculated by comparing the implied fair value of goodwill, as if the reporting unit has been acquired in a business combination, to its carrying amount. As of December 31, 2015 and June 30, 2015 , the Company had no impairments. If the Company determines it will quantitatively assess impairment, the Company utilizes the discounted cash flow method to determine the fair value of each of its reporting units. In calculating the implied fair value of the reporting unit's goodwill, the present value of the reporting unit's expected future cash flows is allocated to all of the other assets and liabilities of that unit based on their fair values. The excess of the present value of the reporting unit's expected future cash flows over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. In calculating the implied value of the Company's trade names, the Company uses the present value of the relief from royalty method. Amortizable intangible assets are being amortized on a straight-line basis which approximates economic use, over periods ranging from three years to fifteen years . The Company considers the useful life of the trademarks to be indefinite. The Company tests the value of the trademarks and trade name annually for impairment. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, other than goodwill and purchased intangible assets with indefinite lives are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be recoverable. In evaluating impairment, the carrying value of the asset is compared to the undiscounted estimated future cash flows expected to result from the use of the asset and its eventual disposition. An impairment loss is recognized when estimated future cash flows are less than the carrying amount. Estimates of future cash flows may be internally developed or based on independent appraisals and significant judgment is applied to make the estimates. Changes in the Company's strategy, assumptions and/or market conditions could significantly impact these judgments and require adjustments to recorded amounts of long-lived assets. As of December 31, 2015 and June 30, 2015 , management concluded that an impairment was not required. |
Investments | Investments Investments into noncontrolled entities that do not have readily determinable fair values (i.e., non-marketable equity securities) under Cost Method Investments Topic 325-20 of the ASC are initially recorded at cost. Income is recorded for dividends received that are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred. The Company assesses all cost-method investments for impairment quarterly. Below is a summary of the Company's cost-method investments. The Company has two investments into non-controlled entities, both of which are online precious metals retailers and customers of the Company. As of December 31, 2015 and June 30, 2015, (i) the aggregate carrying balance of these investments was $4.8 million and $2.5 million , respectively, and (ii) the Company’s ownership percentage, based on the fully dilutive common shares outstanding, for one of the entities was 2.5% and 15.0% , respectively, and for the other entity, was 2.5% and 9.0% , respectively. Neither of the entities declared dividends or was impaired during the three and six month periods ending December 31, 2015 and 2014. On January 15, 2016, the Company increased its ownership interest in one of the entities from 15.0% to 20.0% (see Note 18 .) The Company has exclusive supplier agreements with each entity, whereby the customers are required purchase all bullion products required for their business exclusively from A-Mark, subject to certain limitations. The Company also provides fulfillment services to the customer in which it owned a 15% interest as of December 31, 2015. |
Fair Value Measurements | Fair Value Measurement The Fair Value Measurements and Disclosures Topic 820 of the ASC ("ASC 820"), creates a single definition of fair value for financial reporting. The rules associated with ASC 820 state that valuation techniques consistent with the market approach, income approach and/or cost approach should be used to estimate fair value. Selection of a valuation technique, or multiple valuation techniques, depends on the nature of the asset or liability being valued, as well as the availability of data (see Note 3 .) |
Revenue Recognition | Revenue Recognition Revenues are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, no obligations remain and collection is probable. The Company records sales of precious metals, which occurs upon receipt by the customer. The Company records revenues from its metal assaying and melting services after the related services are completed and the effects of forward sales contracts are reflected in revenue at the date the related precious metals are delivered or the contracts expire. The Company records revenues from its storage and logistics services after the related services are completed. The Company accounts for its metals and sales contracts using settlement date accounting. Pursuant to such accounting, the Company recognizes the sale or purchase of the metals at settlement date. During the period between trade and settlement date, the Company has essentially entered into a forward contract that meets the definition of a derivative in accordance with the Derivatives and Hedging Topic 815 of the ASC. The Company records the derivative at the trade date with a corresponding unrealized gain (loss), which is reflected in the cost of sales in the condensed consolidated statements of income. The Company adjusts the derivatives to fair value on a daily basis until the transaction is physically settled. Sales which are physically settled are recognized at the gross amount in the condensed consolidated statements of income. |
Interest Income | Interest Income The Company uses the effective interest method to recognize interest income on its secured loans transactions. For these arrangements, the Company maintains a security interest in the precious metals and records interest income over the terms of the receivable. Recognition of interest income is suspended and the loan is placed on non-accrual status when management determines that collection of future interest income is not probable. The interest income accrual is resumed, and previously suspended interest income is recognized, when the loan becomes contractually current and/or collection doubts are removed. Cash receipts on impaired loans are recorded first against the receivable and then to any unrecognized interest income (see Note 5 .) |
Interest Expense | Interest Expense The Company incurs interest expense and related fees as a result of usage under its lines of credit, product financing arrangements and liability on borrowed metals. The Company incurs interest expense based on usage under its Trading Credit Facility recording interest expense using the effective interest method. The Company incurs financing fees (classified as interest expense) as a result of its product financing arrangements for the transfer and subsequent re-acquisition of gold and silver at a fixed price to a third party finance company. During the term of this type of financing agreement, a third party finance company holds the Company's inventory as collateral, with the intent to return the inventory to the Company at an agreed-upon price based on the spot price on the finance arrangement termination date, pursuant to the guidance in Product Financing Arrangements Topic 470-40 of the ASC. The third party charges a monthly fee as a percentage of the market value of the outstanding obligation. In addition, the Company incurs a financing fee related to custodial storage facility charges related to the transferred collateral inventory; this collateral is classified as restricted inventory on our condensed consolidated balance sheets. Additionally, the Company incurs interest expense when we borrow precious metals from our suppliers under short-term arrangements, which bear interest at a designated rate. Amounts under these arrangements are due at maturity and require repayment either in the form of precious metals or cash. This liability is reflected in the condensed consolidated balance sheet as a liability on borrowed metals. |
Derivative Instruments | Derivative Instruments The Company’s inventory, and purchase and sale commitments transactions consist of precious metals products. The value of our inventory and these commitments is intimately linked to the prevailing price of the underlying precious metal commodity. The Company seeks to minimize the effect of price changes of the underlying commodity and enters into inventory hedging transactions, principally utilizing metals commodity futures contracts traded on national futures exchanges or forward contracts with only major credit worthy financial institutions. All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Substantially all of these transactions are secured by the underlying metals positions. Notional balances of the Company's derivative instruments, consisting of contractual metal quantities, are expressed at current spot prices of the underlying precious metal commodity. Commodity futures and forward contract transactions are recorded at fair value on the trade date. The difference between the original contract value and the market value of the open futures and forward contracts are reflected in derivative assets or derivative liabilities in the condensed consolidated balance sheet at fair value. The Company records the change between market value and trade value of the underlying open commodity contracts as a derivative asset or liability, and the Company correspondingly records the related unrealized gains or losses. The change in unrealized gain (loss) on open commodity contracts from one period to the next is reflected in net gain (loss) on derivative instruments. These unrealized gains and losses are included as a component of cost of sales on the condensed consolidated statements of income. Gains or losses resulting from the termination of commodity contracts are reported as realized gains or losses on commodity contracts, which is recorded as a component of cost of sales on the condensed consolidated statements of income. The Company enters into derivative transactions solely for the purpose of hedging our inventory holding risk, and not for speculative market purposes. The Company’s gains (losses) on derivative instruments are substantially offset by the changes in the fair market value of the underlying precious metals inventory, which is also recorded in cost of sales in the condensed consolidated statements of income (see Note 10 .) |
Advertising | Advertising Advertising costs are expensed as incurred, and are included in selling, general and administrative expenses in the condensed consolidated statements of income. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs represent costs associated with shipping product to customers, and receiving product from vendors and are included in cost of sales in the condensed consolidated statements of income. |
Share-Based Compensation | Share-Based Compensation The Company accounts for equity awards under the provisions of the Compensation - Stock Compensation Topic 718 of the ASC ("ASC 718"), which establishes fair value-based accounting requirements for share-based compensation to employees. ASC 718 requires the Company to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees as expense over the service period in the Company's condensed consolidated financial statements. |
Income Taxes | Income Taxes As part of the process of preparing its condensed consolidated financial statements, the Company is required to estimate its provision for income taxes in each of the tax jurisdictions in which it conducts business, in accordance with the Income Taxes Topic 740 of the ASC ("ASC 740"). The Company computes its annual tax rate based on the statutory tax rates and tax planning opportunities available to it in the various jurisdictions in which it earns income. Significant judgment is required in determining the Company's annual tax rate and in evaluating uncertainty in its tax positions. The Company recognizes a benefit for tax positions that it believes will more likely than not be sustained upon examination. The amount of benefit recognized is the largest amount of benefit that the Company believes has more than a 50% probability of being realized upon settlement. The Company regularly monitors its tax positions and adjusts the amount of recognized tax benefit based on its evaluation of information that has become available since the end of its last financial reporting period. The annual tax rate includes the impact of these changes in recognized tax benefits. When adjusting the amount of recognized tax benefits, the Company does not consider information that has become available after the balance sheet date, but does disclose the effects of new information whenever those effects would be material to the Company's condensed consolidated financial statements. The difference between the amount of benefit taken or expected to be taken in a tax return and the amount of benefit recognized for financial reporting represents unrecognized tax benefits. These unrecognized tax benefits are presented in the condensed consolidated balance sheet principally within accrued liabilities. The Company records valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. Significant judgment is applied when assessing the need for valuation allowances. Areas of estimation include the Company's consideration of future taxable income and ongoing prudent and feasible tax planning strategies. Should a change in circumstances lead to a change in judgment about the utilization of deferred tax assets in future years, the Company would adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. Changes in recognized tax benefits and changes in valuation allowances could be material to the Company's results of operations for any period, but is not expected to be material to the Company's condensed consolidated financial position. The Company accounts for uncertainty in income taxes under the provisions of ASC 740. These provisions clarify the accounting for uncertainty in income taxes recognized in an enterprise's financial statements, and prescribe a recognition threshold and measurement criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The provisions also provide guidance on de-recognition, classification, interest, and penalties, accounting in interim periods, disclosure, and transition. The potential interest and/or penalties associated with an uncertain tax position are recorded in provision for income taxes on the condensed consolidated statements of income. Please refer to Note 11 for further discussion regarding these provisions. Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The factors used to assess the likelihood of realization include the Company's forecast of the reversal of temporary differences, future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Failure to achieve forecasted taxable income in applicable tax jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company's effective tax rate on future earnings. Based on our assessment it appears more likely than not that most of the net deferred tax assets will be realized through future taxable income. Management has established a valuation allowance against the deferred taxes related to certain state net operating loss carryovers. Management believes the utilization of these losses may be limited. We will continue to assess the need for a valuation allowance for our remaining deferred tax assets in the future. The Company's condensed consolidated financial statements recognized the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods, as if the Company were a separate taxpayer prior to the date of the Distribution rather than a member of the consolidated income tax return group of its Former Parent, Spectrum Group International, Inc. Following its spin-off, the Company files federal and state income tax filings that are separate from the Former Parent's tax filings. The Company recognizes current and deferred income taxes as a separate taxpayer for periods ending after the date of Distribution. Income taxes payable to Former Parent reflects balances due to the Former Parent for the Company's share of the income tax assets of the group, net of amounts related to federal and state jurisdictions due to taxable income generated as if the Company were a separate taxpaying entity prior to the Distribution. |
Earnings per Share (EPS) | Earnings per Share ("EPS") The Company computes and reports both basic EPS and diluted EPS. Basic EPS is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the sum of the weighted average number of common shares and dilutive common stock equivalents outstanding during the period. Diluted EPS reflects the total potential dilution that could occur from outstanding equity awards, including unexercised stock options, utilizing the treasury stock method. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as non-current on the balance sheet. This update is effective for fiscal years beginning after December 15, 2016. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. We have not early adopted ASU, and the adoption of this update is not expected to have a material impact on our results of operations, financial position or cash flows. We expect to adopt the provisions of this new guidance in fiscal year 2018 (or July 1, 2017). In February 2015, the FASB issued ASU No. 2015-2, Consolidation (Topic 820): Amendments to the Consolidation Analysis . ASU 2015-2 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to re-evaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015, which will be our fiscal year 2017 (or July 1, 2016). We are still evaluating what impact, if any, this ASU will have on the Company’s consolidated financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU No. 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU No. 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date of ASU 2014-09 for one year. With the deferral, the new standard is effective for the Company, on July 1, 2018, with early adoption permitted one year prior. The standard permits the use of either the retrospective or cumulative effect transition method. We are still evaluating what impact this standard will have on the Company’s consolidated financial position, results of operations or cash flows and related disclosures. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of earnings per share | in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Basic weighted average shares outstanding (1) 6,974 6,963 6,974 6,963 Effect of common stock equivalents — stock issuable under outstanding equity awards 145 96 116 99 Diluted weighted average shares outstanding 7,119 7,059 7,090 7,062 _________________________________ (1) Basic weighted average shares outstanding include the effect of vested but unissued restricted stock grants. |
Assets and Liabilities, at Fa27
Assets and Liabilities, at Fair Value (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments not required to be carried at fair value | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2015 and June 30, 2015 . in thousands December 31, 2015 June 30, 2015 Carrying Amount Fair value Carrying Amount Fair value Financial assets: Cash $ 3,375 $ 3,375 $ 20,927 $ 20,927 Receivables and advances, net 22,557 22,557 30,025 30,025 Secured loans 57,708 57,708 49,316 49,316 Derivative assets - open sale and purchase commitments, net 2,779 2,779 1,722 1,722 Derivative assets - futures contracts 11,411 11,411 5,363 5,363 Derivative assets - forward contracts 2,933 2,933 4,279 4,279 Income taxes receivable from Former Parent — — 1,095 1,095 Financial liabilities: Lines of credit $ 162,500 $ 162,500 $ 147,000 $ 147,000 Liability on borrowed metals 4,234 4,234 9,500 9,500 Product financing arrangements 50,504 50,504 39,425 39,425 Derivative liabilities - liability on margin accounts 6,329 6,329 6,908 6,908 Derivative liabilities - open sale and purchase commitments, net 13,601 13,601 10,989 10,989 Accounts payable, advances and other payables 56,059 56,059 50,639 50,639 Accrued liabilities 5,593 5,593 5,330 5,330 Income taxes payable to Former Parent 510 510 — — |
Schedule of fair value, assets and liabilities measured on recurring basis | The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and June 30, 2015 aggregated by the level in the fair value hierarchy within which the measurements fall: December 31, 2015 Quoted Price in Active Markets Significant Other Significant for Identical Observable Unobservable Instruments Inputs Inputs in thousands (Level 1) (Level 2) (Level 3) Total Assets: Inventory (1) $ 239,703 $ — $ — $ 239,703 Derivative assets — open sale and purchase commitments, net 2,779 — — 2,779 Derivative assets — futures contracts 11,411 — — 11,411 Derivative assets — forward contracts 2,933 — — 2,933 Total assets valued at fair value $ 256,826 $ — $ — $ 256,826 Liabilities: Liability on borrowed metals $ 4,234 $ — $ — $ 4,234 Product financing arrangement 50,504 — — 50,504 Derivative liabilities — liability on margin accounts 6,329 — — 6,329 Derivative liabilities — open sales and purchase commitments, net 13,601 — — 13,601 Total liabilities, valued at fair value $ 74,668 $ — $ — $ 74,668 ____________________ (1) Commemorative coin inventory totaling $0.1 million is held at lower of cost or market and is thus excluded from this table. June 30, 2015 Quoted Price in Active Markets Significant Other Significant for Identical Observable Unobservable Instruments Inputs Inputs in thousands (Level 1) (Level 2) (Level 3) Total Assets: Inventory (1) $ 189,983 $ — $ — $ 189,983 Derivative assets — open sale and purchase commitments, net 1,722 — — 1,722 Derivative assets — futures contracts 5,363 — — 5,363 Derivative assets — forward contracts 4,279 — — 4,279 Total assets, valued at fair value $ 201,347 $ — $ — $ 201,347 Liabilities: Liability on borrowed metals $ 9,500 $ — $ — $ 9,500 Product financing arrangement 39,425 — — 39,425 Derivative liabilities — liability on margin accounts 6,908 — — 6,908 Derivative liabilities — open sale and purchase commitments, net 10,989 — — 10,989 Total liabilities, valued at fair value $ 66,822 $ — $ — $ 66,822 ____________________ (1) Commemorative coin inventory totaling $1.5 million is held at lower of cost or market and is thus excluded from this table. |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of receivables and secured loans | Receivables consist of the following as of December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Customer trade receivables $ 8,432 $ 11,835 Wholesale trade advances 10,988 12,164 Due from brokers 3,167 6,056 Subtotal 22,587 30,055 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 22,557 $ 30,025 Allowance for Doubtful Accounts Allowances for doubtful accounts are recorded based on specifically identified receivables, which the Company has identified as potentially uncollectible. A summary of the activity in the allowance for doubtful accounts is as follows: in thousands Period ended: Beginning Balance Provision Charge-off Ending Balance Six Months Ended December 31, 2015 $ 30 $ — $ — $ 30 Year Ended June 30, 2015 $ 30 $ — $ — $ 30 |
Secured Loans Receivables (Tabl
Secured Loans Receivables (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of receivables and secured loans | Receivables consist of the following as of December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Customer trade receivables $ 8,432 $ 11,835 Wholesale trade advances 10,988 12,164 Due from brokers 3,167 6,056 Subtotal 22,587 30,055 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 22,557 $ 30,025 Allowance for Doubtful Accounts Allowances for doubtful accounts are recorded based on specifically identified receivables, which the Company has identified as potentially uncollectible. A summary of the activity in the allowance for doubtful accounts is as follows: in thousands Period ended: Beginning Balance Provision Charge-off Ending Balance Six Months Ended December 31, 2015 $ 30 $ — $ — $ 30 Year Ended June 30, 2015 $ 30 $ — $ — $ 30 |
Schedule of classes for financing receivables | The Company's secured loans by portfolio class, which align with management reporting, are as follows: in thousands December 31, 2015 June 30, 2015 Bullion $ 21,794 37.8 % $ 16,250 33.0 % Numismatic and semi numismatic 35,114 60.8 32,216 65.3 Subtotal 56,908 98.6 48,466 98.3 Other pledged assets (1) 800 1.4 850 1.7 Total secured loans $ 57,708 100.0 % $ 49,316 100.0 % _________________________________ (1 ) Includes secured loans that are collateralized by borrower's assets, which are not exclusively precious metal products. |
Financing receivable credit quality indicators | The Company disaggregates its secured loans that are collateralized by precious metal products, as follows: in thousands December 31, 2015 June 30, 2015 Loan-to-value of 75% or more (1) $ 34,010 59.8 % $ 17,153 35.4 % Loan-to-value of less than 75% (1) 22,898 40.2 31,313 64.6 Secured loans collateralized by precious metal products (1) $ 56,908 100.0 % $ 48,466 100.0 % _________________________________ (1 ) Excludes secured loans that are collateralized by borrower's assets, which are not exclusively precious metal products. |
Financing Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of receivables and secured loans | Below is a summary of the carrying-value of our secured loans as of December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Secured loans originated $ 37,748 $ 36,778 Secured loans originated - with a related party 881 — 38,629 36,778 Secured loans acquired 19,079 (1) 12,538 (2) Secured loans, total $ 57,708 $ 49,316 _________________________________ (1) Includes $94,000 of amortized loan premium as of December 31, 2015 . (2) Includes $99,000 of amortized loan premium as of June 30, 2015 . |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Our inventory consists of the precious metals that the Company has physically received, and inventory held by third-parties, which, at the Company's option, may or may not receive. Below, our inventory is summarized by classification at December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Inventory held for sale $ 107,777 $ 86,353 Repurchase arrangements with customers 73,045 49,117 Consignment arrangements with customers 4,143 5,588 Commemorative coins, held at lower of cost or market 76 1,518 Borrowed precious metals from suppliers 4,234 9,500 Product financing arrangements, restricted 50,504 39,425 $ 239,779 $ 191,501 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following at December 31, 2015 and June 30, 2015 : in thousands December 31, 2015 June 30, 2015 Office furniture, fixtures and equipment $ 979 $ 616 Computer equipment 368 368 Computer software 2,626 2,376 Leasehold improvements 1,661 1,700 Subtotal 5,634 5,060 Less: accumulated depreciation (2,625 ) (2,210 ) Property and equipment, net $ 3,009 $ 2,850 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other purchased intangible assets | The carrying value of other purchased intangibles as of December 31, 2015 and June 30, 2015 is as described below: dollar amounts in thousands December 31, 2015 June 30, 2015 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Existing customer relationships 5 - 15 5,747 (4,023 ) 1,724 5,747 (3,832 ) 1,915 Non-compete and other 4 2,000 (2,000 ) — 2,000 (2,000 ) — Employment agreement 3 195 (195 ) — 195 (195 ) — Purchased intangibles subject to amortization 7,942 (6,218 ) 1,724 7,942 (6,027 ) 1,915 Trade-name Indefinite $ 454 $ — $ 454 $ 454 $ — $ 454 $ 8,396 $ (6,218 ) $ 2,178 $ 8,396 $ (6,027 ) $ 2,369 |
Schedule of future amortization expense | Estimated amortization expense on an annual basis for the succeeding five years is as follows (in thousands): Fiscal year ending June 30, Amount Fiscal 2016 (6 months remaining) $ 194 2017 385 2018 385 2019 385 2020 375 Thereafter — Total $ 1,724 |
Accounts Payables (Tables)
Accounts Payables (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Accounts Payable, Current [Abstract] | |
Accounts payable | Accounts payable consist of the following: in thousands December 31, 2015 June 30, 2015 Trade payable to customers $ 9,048 $ 128 Advances from customers 34,158 38,039 Liability on deferred revenue 8,194 11,039 Due to brokers 2,632 — Other accounts payable 2,027 1,433 $ 56,059 $ 50,639 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The provision for income taxes for the three and six months ended December 31, 2015 and 2014 consists of the following: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Federal $ 759 $ 992 $ 3,811 $ 1,672 State and local 68 139 328 237 Provision for income taxes $ 827 $ 1,131 $ 4,139 $ 1,909 |
Schedule of effective income tax rate | The effective tax rate for the three and six months ended December 31, 2015 and 2014 is as follows: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Effective tax rate 38.3 % 40.5 % 38.2 % 40.5 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | During the three and six months ended December 31, 2015 and 2014 , the Company earned interest income related to loans that we made to Stack's Bowers and financing products sold to Stack's Bower, as set forth below: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Related Party Company Stack's Bowers Numismatics, LLC Interest income from loan receivables $ 12 $ 100 $ 32 $ 123 Interest income from finance products 160 3 316 7 Total $ 172 $ 103 $ 348 $ 130 in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Sales Purchases Sales Purchases Sales Purchases Sales Purchases Related Party Company Calzona Ventures, LLC $ — $ — $ — $ — $ — $ — $ 157 $ — Stack's Bowers Numismatics, LLC 8,418 3,564 1,530 3,617 18,900 30,568 2,925 6,538 Related party, total $ 8,418 $ 3,564 $ 1,530 $ 3,617 $ 18,900 $ 30,568 $ 3,082 $ 6,538 As of December 31, 2015 and June 30, 2015 , the Company's had related party receivables and payables balance as set forth below: in thousands December 31, 2015 June 30, 2015 Receivables Payable Receivables Payable Related Party Company Stack's Bowers Numismatics, LLC $ 927 $ — $ 2 $ 10 SGI (Former Parent) 75 510 1,095 — Related party, total $ 1,002 $ 510 $ 1,097 $ 10 |
Derivative Instrument and Hed36
Derivative Instrument and Hedging Transactions (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Assets and Liabilities | In the table below, the aggregate gross and net derivative receivables and payables balances are presented by contract type and type of hedge, as of December 31, 2015 and June 30, 2015 . December 31, 2015 June 30, 2015 in thousands Gross Derivative Amounts Netted Cash Collateral Pledge Net Derivative Gross Derivative Amounts Netted Cash Collateral Pledge Net Derivative Nettable derivative assets: Open sale and purchase commitments $ 3,736 $ (957 ) $ — $ 2,779 $ 2,815 $ (1,093 ) $ — $ 1,722 Future contracts 11,411 — — 11,411 11,159 (5,796 ) — 5,363 Forward contracts 2,933 — — 2,933 4,279 — — 4,279 $ 18,080 $ (957 ) $ — $ 17,123 $ 18,253 $ (6,889 ) $ — $ 11,364 Nettable derivative liabilities: Open sale and purchase commitments $ 15,515 $ (1,914 ) $ — $ 13,601 $ 11,723 $ (734 ) $ — $ 10,989 Margin accounts 12,456 — (6,127 ) 6,329 12,430 — (5,522 ) 6,908 $ 27,971 $ (1,914 ) $ (6,127 ) $ 19,930 $ 24,153 $ (734 ) $ (5,522 ) $ 17,897 |
Summary of net gains (losses) on derivative instruments | Below, is a summary of the net losses on derivative instruments for the three and six months ended December 31, 2015 and 2014 . in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Gain (loss) on derivative instruments: Unrealized gain (loss) on open future commodity and forward contracts and open sale and purchase commitments, net $ 596 $ 9,006 $ (3,220 ) $ 10,284 Realized loss on future commodity contracts, net (3,197 ) (37,172 ) (13,788 ) (44,806 ) Total $ (2,601 ) $ (28,166 ) $ (17,008 ) $ (34,522 ) |
Schedule of market values of derivative instruments | The following table summarizes the results of our hedging activities, which shows the precious metal commodity inventory position, net of open sale and purchase commitments, that is subject to price risk as of December 31, 2015 and at June 30, 2015 . in thousands December 31, 2015 June 30, 2015 Inventory $ 239,779 $ 191,501 Less unhedgable inventory: Commemorative coin inventory, held at lower of cost or market (76 ) (1,518 ) Premium on metals position (4,451 ) (3,255 ) Inventory value not hedged (4,527 ) (4,773 ) Subtotal 235,252 186,728 Commitments at market: Open inventory purchase commitments 353,421 444,023 Open inventory sales commitments (226,942 ) (249,081 ) Margin sale commitments (12,456 ) (12,430 ) In-transit inventory no longer subject to market risk (8,885 ) (13,807 ) Unhedgable premiums on open commitment positions 2,192 528 Inventory borrowed from suppliers (4,234 ) (9,500 ) Product financing obligation (50,504 ) (39,425 ) Advances on industrial metals 3,235 3,340 Inventory subject to price risk 291,079 310,376 Inventory subject to derivative financial instruments: Precious metals forward contracts at market values 124,497 202,323 Precious metals futures contracts at market values 166,330 107,993 Total market value of derivative financial instruments 290,827 310,316 Net inventory subject to commodity price risk $ 252 $ 60 |
Schedule of outstanding commitments | As of December 31, 2015 and June 30, 2015 , the Company had the following outstanding commitments and open forward and future contracts: in thousands December 31, 2015 June 30, 2015 Purchase commitments $ 353,421 $ 444,023 Sales commitments (226,942 ) (249,081 ) Margin sales commitments (12,456 ) (12,430 ) Open forward contracts 124,497 202,323 Open futures contracts 166,330 107,993 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | The table below summarizes the quarterly dividends declared pursuant to this policy: Dividend Record Date (at close of Business) Type of Dividend Basis of Payment Payment Date February 6, 2015 March 12, 2015 Cash $ 0.05 per common share March 20, 2015 May 1, 2015 May 14, 2015 Cash $ 0.05 per common share May 25, 2015 September 11, 2015 September 24, 2015 Cash $ 0.05 per common share October 5, 2015 October 30, 2015 November 13, 2015 Cash $ 0.05 per common share November 25, 2015 |
Schedule of share-based compensation, stock option activity | The following table summarizes the stock option activity for the six months ended December 31, 2015 . Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (in thousands) Weighted Average Grant Date Fair Value Per Award (1) Outstanding at June 30, 2015 233,127 $ 9.89 $ 283 $ 5.96 Granted through stock option plan — — Exercised — — Cancellations, expirations and forfeitures — — Outstanding at December 31, 2015 233,127 9.89 $ 2,088 $ 5.96 Shares exercisable at December 31, 2015 182,184 10.30 $ 1,558 $ 5.92 _________________________________ (1) For awards held by A-Mark employees, the fair value of the awards assumed in Distribution was based on the awards' fair value at grant date, which were determined by SGI prior to the Distribution. Since the Company does not recognize compensation costs for the awards assumed in the Distribution held by employees of SGI, the calculation of the weighted average fair value per share price at grant date was solely based on the awards' fair value at grant date that were awarded to employees of A-Mark. |
Schedule of share-based compensation, status of stock option outstanding | Following is a summary of the status of stock options outstanding at December 31, 2015 : Options Outstanding Options Exercisable Exercise Price Ranges Number of Shares Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price From To $ — $ 10.00 134,239 6.85 $ 8.39 86,296 6.84 $ 8.41 10.01 15.00 98,888 6.78 11.94 95,888 6.71 12.00 233,127 6.82 9.89 182,184 6.78 10.30 |
Schedule of restricted stock activity | The following table summarizes the RSU activity for the six months ended December 31, 2015 : Shares Weighted Average Share Price at Grant Date (1) Outstanding at June 30, 2015 86,298 $ 2.34 Shares granted — — Shares released — — Shares surrendered to cover employee minimum withholding taxes — — Shares forfeited — — Outstanding at December 31, 2015 86,298 $ 2.34 Vested but unissued at December 31, 2015 35,957 $ — _________________________________ (1) For awards held by A-Mark employees, the fair value of the awards assumed in Distribution was based on the awards' fair value at grant date, which were determined by SGI prior to the Distribution. Since, the Company does not recognize compensation costs for the awards assumed in the Distribution held by employees of SGI, the calculation of the weighted average share price at grant date was solely based on the awards' fair value at grant date that were awarded to employees of A-Mark. No |
Customer and Supplier Concent38
Customer and Supplier Concentration (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Schedules of concentration of risk, by risk factor | Customers providing 10 percent or more of the Company's revenues for the three and six months ended December 31, 2015 and 2014 are listed below: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Amount Percent Amount Percent Amount Percent Amount Percent Total revenue $ 1,529,143 100.0 % $ 1,538,871 100.0 % $ 3,536,079 100.0 % $ 2,992,337 100.0 % Customer concentrations HSBC Bank USA $ 281,473 18.4 % $ 448,453 29.1 % $ 615,026 17.4 % $ 982,991 32.9 % JM Bullion 157,087 10.3 116,082 7.5 403,956 11.4 182,647 6.1 Total $ 438,560 28.7 % $ 564,535 36.6 % $ 1,018,982 28.8 % $ 1,165,638 39.0 % Customers providing 10 percent or more of the Company's accounts receivable as of December 31, 2015 and June 30, 2015 , respectively, are listed below: in thousands December 31, 2015 June 30, 2015 Amount Percent Amount Percent Total accounts receivable, net $ 22,557 100.0 % $ 30,025 100.0 % Customer concentrations United Overseas Bank Limited $ 2,458 10.9 % $ — — % United States Mint 7,367 32.7 9,781 32.6 Jerrit Canyon 3,042 13.5 1,435 4.8 Total $ 12,867 57.1 % $ 11,216 37.4 % |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Revenue are attributed to geographic location based on customer location. The Company's geographic operations are as follows: in thousands Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Revenue by geographic region: United States $ 1,402,860 $ 1,345,428 $ 3,256,132 $ 2,658,914 Europe 42,616 64,460 94,748 119,410 North America, excluding United States 73,860 110,057 160,645 181,836 Asia Pacific 8,999 18,732 22,265 30,044 Africa 18 25 63 25 Australia 790 167 2,194 2,106 South America — 2 32 2 Total revenue $ 1,529,143 $ 1,538,871 $ 3,536,079 $ 2,992,337 in thousands December 31, 2015 June 30, 2015 Inventories by geographic region: United States $ 218,211 $ 173,939 Europe 6,484 4,374 North America, excluding United States 14,160 12,287 Asia 924 901 Total inventories $ 239,779 $ 191,501 in thousands December 31, 2015 June 30, 2015 Assets by geographic region: United States $ 340,482 $ 302,046 Europe 7,513 10,668 North America, excluding United States 14,160 12,287 Asia 924 901 Total assets $ 363,079 $ 325,902 in thousands December 31, 2015 June 30, 2015 Long term assets by geographic region: United States $ 15,440 $ 13,204 Europe 67 72 Total long-term assets $ 15,507 $ 13,276 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2015USD ($)investment | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)Segmentinvestment | Dec. 31, 2014USD ($) | Jan. 15, 2016 | Jun. 30, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Number of Investments | investment | 2 | 2 | ||||
Number of reportable segments | Segment | 1 | |||||
Long-term investments | $ 4,836 | $ 4,836 | $ 2,500 | |||
Ownership percentage, 1st investment ( in percentage) | 2.50% | 2.50% | 2.50% | |||
Ownership percentage, 2nd investment ( in percentage) | 15.00% | 15.00% | 9.00% | |||
Advertising expense | $ 200 | $ 100 | $ 300 | $ 300 | ||
Shipping, handling costs | $ 1,800 | $ 1,800 | $ 4,100 | $ 3,200 | ||
Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful lives of related assets | 3 years | |||||
Estimated useful lives of intangibles | 3 years | |||||
Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful lives of related assets | 5 years | |||||
Estimated useful lives of intangibles | 15 years | |||||
Subsequent Event [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Ownership percentage, 2nd investment ( in percentage) | 20.00% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Earnings per Share) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||||
Basic weighted average shares outstanding | 6,973,500 | 6,962,742 | 6,973,500 | 6,962,742 |
Effect of common stock equivalents - stock options and stock issuable under employee compensation plans (shares) | 145,000 | 96,000 | 116,000 | 99,000 |
Diluted weighted average shares outstanding | 7,119,000 | 7,059,400 | 7,089,700 | 7,062,300 |
Assets and Liabilities, at Fa42
Assets and Liabilities, at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - future and forward contracts | $ 18,080 | $ 18,253 |
Liability on borrowed metals | 4,234 | 9,500 |
Product financing arrangement | 50,504 | 39,425 |
Derivative liabilities - open sale and purchase commitments, net, included in payables | 19,930 | 17,897 |
Accrued liabilities | 5,593 | 5,330 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 3,375 | 20,927 |
Receivables and advances, net | 22,557 | 30,025 |
Lines of credit | 162,500 | 147,000 |
Liability on borrowed metals | 4,234 | 9,500 |
Product financing arrangement | 50,504 | 39,425 |
Accounts payable, advances and other payables | 56,059 | 50,639 |
Accrued liabilities | 5,593 | 5,330 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 3,375 | 20,927 |
Receivables and advances, net | 22,557 | 30,025 |
Lines of credit | 162,500 | 147,000 |
Liability on borrowed metals | 4,234 | 9,500 |
Product financing arrangement | 50,504 | 39,425 |
Accounts payable, advances and other payables | 56,059 | 50,639 |
Accrued liabilities | 5,593 | 5,330 |
Open sales and purchase commitments | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured loans | 57,708 | 49,316 |
Derivative assets - open sale and purchase commitments, net | 2,779 | 1,722 |
Open sales and purchase commitments | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured loans | 57,708 | 49,316 |
Derivative assets - open sale and purchase commitments, net | 2,779 | 1,722 |
Precious metals futures contracts at market values | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - future and forward contracts | 11,411 | 5,363 |
Precious metals futures contracts at market values | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - future and forward contracts | 11,411 | 5,363 |
Forward contracts | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - future and forward contracts | 2,933 | 4,279 |
Forward contracts | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets - future and forward contracts | 2,933 | 4,279 |
Derivative liability margin accounts | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities - open sale and purchase commitments, net, included in payables | 6,329 | 6,908 |
Derivative liability margin accounts | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities - open sale and purchase commitments, net, included in payables | 6,329 | 6,908 |
Open sales and purchase commitments | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities - open sale and purchase commitments, net, included in payables | 13,601 | 10,989 |
Open sales and purchase commitments | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities - open sale and purchase commitments, net, included in payables | 13,601 | 10,989 |
SGI (Former Parent) | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Income taxes receivable from Former Parent | 0 | 1,095 |
Income taxes payable to Former Parent | 510 | 0 |
SGI (Former Parent) | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Income taxes receivable from Former Parent | 0 | 1,095 |
Income taxes payable to Former Parent | $ 510 | $ 0 |
Assets and Liabilities, at Fa43
Assets and Liabilities, at Fair Value (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | $ 18,080 | $ 18,253 |
Derivative liabilities | 19,930 | 17,897 |
Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory | 239,703 | 189,983 |
Total assets valued at fair value | 256,826 | 201,347 |
Liability on borrowed metals | 4,234 | 9,500 |
Product financing arrangement | 50,504 | 39,425 |
Liability on margin accounts | 6,329 | 6,908 |
Total liabilities, valued at fair value | 74,668 | 66,822 |
Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory | 239,703 | 189,983 |
Total assets valued at fair value | 256,826 | 201,347 |
Liability on borrowed metals | 4,234 | 9,500 |
Product financing arrangement | 50,504 | 39,425 |
Liability on margin accounts | 6,329 | 6,908 |
Total liabilities, valued at fair value | 74,668 | 66,822 |
Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory | 0 | 0 |
Total assets valued at fair value | 0 | 0 |
Liability on borrowed metals | 0 | 0 |
Product financing arrangement | 0 | 0 |
Liability on margin accounts | 0 | 0 |
Total liabilities, valued at fair value | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory | 0 | 0 |
Total assets valued at fair value | 0 | 0 |
Liability on borrowed metals | 0 | 0 |
Product financing arrangement | 0 | 0 |
Liability on margin accounts | 0 | 0 |
Total liabilities, valued at fair value | 0 | 0 |
Derivative Asset Open Purchases And Sales Commitments | Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 2,779 | 5,363 |
Derivative Asset Open Purchases And Sales Commitments | Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 2,779 | 5,363 |
Derivative Asset Open Purchases And Sales Commitments | Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 0 | 0 |
Derivative Asset Open Purchases And Sales Commitments | Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 0 | 0 |
Precious metals futures contracts at market values | Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 11,411 | 4,279 |
Precious metals futures contracts at market values | Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 11,411 | 4,279 |
Precious metals futures contracts at market values | Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 0 | 0 |
Precious metals futures contracts at market values | Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 0 | 0 |
Forward contracts | Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 2,933 | 1,722 |
Forward contracts | Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 2,933 | 1,722 |
Forward contracts | Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 0 | 0 |
Forward contracts | Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | 0 | 0 |
Open sales and purchase commitments | Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 13,601 | 10,989 |
Open sales and purchase commitments | Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 13,601 | 10,989 |
Open sales and purchase commitments | Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Open sales and purchase commitments | Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
Assets and Liabilities, at Fa44
Assets and Liabilities, at Fair Value (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commemorative coins, held at lower of cost or market | $ 76,000 | $ 76,000 | $ 1,518,000 | ||
Realized gains on cost method investment | 0 | $ 0 | 0 | $ 0 | |
Fair Value, Measurements, Nonrecurring | Carrying Amount | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cost method investment | $ 4,800,000 | $ 4,800,000 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | $ 22,587 | $ 30,055 | ||
Less: allowance for doubtful accounts | $ (30) | $ (30) | (30) | (30) |
Receivables, net | 22,557 | 30,025 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Beginning Balance | 30 | 30 | ||
Provision | 0 | 0 | ||
Charge-off | 0 | 0 | ||
Ending Balance | $ 30 | $ 30 | ||
Customer trade receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | 8,432 | 11,835 | ||
Wholesale trade advances | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | 10,988 | 12,164 | ||
Due from brokers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | $ 3,167 | $ 6,056 |
Secured Loans Receivables (Deta
Secured Loans Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans, total | $ 57,708 | $ 49,316 |
Secured loans originated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans, total | 37,748 | 36,778 |
Secured loans originated - with a related party | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans, total | 881 | 0 |
Secured loans originated by company and with related party [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans, total | 38,629 | 36,778 |
Secured loans acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans, total | $ 19,079 | $ 12,538 |
Secured Loans Receivables (Loan
Secured Loans Receivables (Loans Receivable and Credit Quality Indicators) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015USD ($)class | Jun. 30, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Classes of receivables | class | 3 | |
Secured loan | $ 57,708 | $ 49,316 |
Secured loan, percentage | 100.00% | 100.00% |
Secured loans (current) | $ 57,108 | $ 48,666 |
Bullion and Numismatic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 56,908 | $ 48,466 |
Secured loan, percentage | 98.60% | 98.30% |
Secured loans (current) | $ 56,908 | $ 48,466 |
Secured loans (current), percentage | 100.00% | 100.00% |
Bullion and Numismatic | Loan-to-value of 75% or more | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current) | $ 34,010 | $ 17,153 |
Secured loans (current), percentage | 59.80% | 35.40% |
Bullion and Numismatic | Loan-to-value of less than 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current) | $ 22,898 | $ 31,313 |
Secured loans (current), percentage | 40.20% | 64.60% |
Bullion | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 21,794 | $ 16,250 |
Secured loan, percentage | 37.80% | 33.00% |
Numismatic and semi numismatic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 35,114 | $ 32,216 |
Secured loan, percentage | 60.80% | 65.30% |
Other pledged assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 800 | $ 850 |
Secured loan, percentage | 1.40% | 1.70% |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit quality indicator Loan-to-value threshold percentage | 75.00% | 75.00% |
Secured Loans Receivables (Narr
Secured Loans Receivables (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015USD ($)classloan | Jun. 30, 2015USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unamortized loan commitment and origination fees and unamortized discounts or premiums | $ 94,000 | $ 99,000 |
Number of loans | loan | 0 | 1 |
Classes of receivables | class | 3 | |
Loans receivable average effective rate of interest (percentage) | 8.30% | 8.50% |
Delinquent period | 30 days | |
Loan receivable liquidation period post default | 90 days | |
Loans receivable payment terms for interest | 30 days | |
Secured loans (current) | $ 57,108,000 | $ 48,666,000 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit quality indicator Loan-to-value threshold percentage | 75.00% | 75.00% |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans-to-value percentage | 100.00% | 100.00% |
Loan-to-value of More Than Hundred Percent [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current), percentage | 0.40% | |
Secured loans (current) | $ 175,600 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Inventory [Line Items] | ||
Inventories | $ 189,275 | $ 152,076 |
Restricted inventories | 50,504 | 39,425 |
Restricted and Nonrestricted Inventory, Net | 239,779 | 191,501 |
Inventory held for sale | ||
Inventory [Line Items] | ||
Inventories | 107,777 | 86,353 |
Repurchase arrangements with customers | ||
Inventory [Line Items] | ||
Inventories | 73,045 | 49,117 |
Consignment arrangements with customers | ||
Inventory [Line Items] | ||
Inventories | 4,143 | 5,588 |
Commemorative coins, held at lower of cost or market | ||
Inventory [Line Items] | ||
Inventories | 76 | 1,518 |
Borrowed precious metals from suppliers | ||
Inventory [Line Items] | ||
Inventories | 4,234 | 9,500 |
Product financing arrangements, restricted | ||
Inventory [Line Items] | ||
Restricted inventories | $ 50,504 | $ 39,425 |
Inventories (narrative) (Detail
Inventories (narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Inventory [Line Items] | ||
Inventory held for sale | $ 189,275 | $ 152,076 |
Repurchase arrangements with customers | 73,000 | 49,100 |
Consignment arrangements with customers | 4,100 | 5,600 |
Commemorative coins, held at lower of cost or market | 76 | 1,518 |
Borrowed precious metals from suppliers | 4,200 | 9,500 |
Product financing arrangements, restricted | 50,500 | 39,400 |
Premium on metals position | 4,451 | 3,255 |
Unrealized gains (losses) included in inventory balance | (4,700) | (3,900) |
Inventory held for sale | ||
Inventory [Line Items] | ||
Inventory held for sale | $ 107,777 | $ 86,353 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 5,634 | $ 5,634 | $ 5,060 | ||
Less: accumulated depreciation | (2,625) | (2,625) | (2,210) | ||
Property and equipment, net | 3,009 | 3,009 | 2,850 | ||
Depreciation | 209 | $ 131 | 415 | $ 263 | |
Office furniture, fixtures and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 979 | 979 | 616 | ||
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 368 | 368 | 368 | ||
Computer software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,626 | 2,626 | 2,376 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 1,661 | $ 1,661 | $ 1,700 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Gross carrying amount - finite lived intangible | $ 8,396 | $ 8,396 | $ 8,396 | ||
Accumulated amortization | (6,218) | (6,218) | (6,027) | ||
Net book value - finite lived intangible | 2,178 | 2,178 | 2,369 | ||
Amortization expense related to intangible assets | 95 | $ 96 | 191 | $ 192 | |
Existing customer relationships | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Gross carrying amount - finite lived intangible | 5,747 | 5,747 | 5,747 | ||
Accumulated amortization | (4,023) | (4,023) | (3,832) | ||
Net book value - finite lived intangible | 1,724 | $ 1,724 | 1,915 | ||
Non-compete and other | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 4 years | ||||
Gross carrying amount - finite lived intangible | 2,000 | $ 2,000 | 2,000 | ||
Accumulated amortization | (2,000) | (2,000) | (2,000) | ||
Net book value - finite lived intangible | 0 | $ 0 | 0 | ||
Employment agreement | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Gross carrying amount - finite lived intangible | 195 | $ 195 | 195 | ||
Accumulated amortization | (195) | (195) | (195) | ||
Net book value - finite lived intangible | 0 | 0 | 0 | ||
Purchased intangibles subject to amortization | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Gross carrying amount - finite lived intangible | 7,942 | 7,942 | 7,942 | ||
Accumulated amortization | (6,218) | (6,218) | (6,027) | ||
Net book value - finite lived intangible | 1,724 | 1,724 | 1,915 | ||
Trade-name | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 454 | 454 | 454 | ||
Accumulated amortization | 0 | 0 | 0 | ||
Net book value | $ 454 | $ 454 | $ 454 | ||
Minimum | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Minimum | Existing customer relationships | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 5 years | ||||
Maximum | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 15 years | ||||
Maximum | Existing customer relationships | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 15 years |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2016 (6 months remaining) | $ 194 |
2,017 | 385 |
2,018 | 385 |
2,019 | 385 |
2,020 | 375 |
Thereafter | 0 |
Total | $ 1,724 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2012 | Jul. 01, 2005 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 4,900 | $ 4,900 | |||||
Gross carrying amount - finite lived intangible | 8,396 | 8,396 | $ 8,396 | ||||
Amortization expense related to intangible assets | $ 95 | $ 96 | $ 191 | $ 192 | |||
Spectrum PMI | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Ownership percentage | 80.00% | ||||||
Spectrum PMI | Auctentia SL | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Noncontrolling interest percentage | 20.00% | 20.00% |
Accounts Payables (Details)
Accounts Payables (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Accounts Payable, Current [Abstract] | ||
Trade payable to customers | $ 9,048 | $ 128 |
Advances from customers | 34,158 | 38,039 |
Liability on deferred revenue | 8,194 | 11,039 |
Due to brokers | 2,632 | 0 |
Other accounts payable | 2,027 | 1,433 |
Accounts payable | $ 56,059 | $ 50,639 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Federal | $ 759 | $ 992 | $ 3,811 | $ 1,672 |
State and local | 68 | 139 | 328 | 237 |
Total provision for income taxes | $ 827 | $ 1,131 | $ 4,139 | $ 1,909 |
Income Taxes (Reconciliation) (
Income Taxes (Reconciliation) (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 38.30% | 40.50% | 38.20% | 40.50% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Income taxes payable to Former Parent | $ 510 | $ 510 | $ 0 | ||
Valuation allowance | (100) | (100) | |||
Unrecognized tax benefits | 243 | 243 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 109 | 109 | |||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 72 | 72 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 424 | 424 | |||
Unrecognized Tax Benefits, Income Tax Penalties Expense | 0 | $ 0 | 0 | $ 0 | |
Interest expense (benefit) recognized during the year for unrecognized tax positions | 5 | $ 10 | 9 | $ 19 | |
Reallocation of deferred state net operating loss from Former Parent related to tax settlement | 600 | ||||
Income taxes receivable from Former Parent | 0 | 0 | 1,095 | ||
Income taxes receivable | 6,982 | 6,982 | 7,846 | ||
Deferred tax assets - non-current | 0 | 0 | 23 | ||
Deferred tax liability - current | 1,369 | 1,369 | 149 | ||
Deferred tax liabilities - non-current | 312 | 312 | 0 | ||
State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss related to state and city deferred tax asset | 13,700 | 13,700 | 17,600 | ||
Deferred tax assets - non-current | $ 400 | $ 400 | $ 900 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 23, 2015 | Jun. 30, 2015 | Feb. 28, 2015 | Oct. 09, 2014 | Jun. 18, 2014 | |
Related Party Transaction [Line Items] | |||||||||
Sales | $ 8,418,000 | $ 1,530,000 | $ 18,900,000 | $ 3,082,000 | |||||
Purchases | 3,564,000 | 3,617,000 | 30,568,000 | 6,538,000 | |||||
Receivable | 1,002,000 | 1,002,000 | $ 1,097,000 | ||||||
Payables | 510,000 | 510,000 | 10,000 | ||||||
Income taxes payable to Former Parent | 510,000 | 510,000 | 0 | ||||||
Income taxes receivable from Former Parent | 0 | 0 | 1,095,000 | ||||||
Stack Bowers Galleries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Short term loan receivable | 0 | 0 | $ 2,600,000 | ||||||
Rate of interest (percentage) | 5.50% | ||||||||
Calzona | |||||||||
Related Party Transaction [Line Items] | |||||||||
Sales | 0 | 0 | 0 | 157,000 | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
SGI (Former Parent) | |||||||||
Related Party Transaction [Line Items] | |||||||||
Receivable | 75,000 | 75,000 | 1,095,000 | ||||||
Payables | 510,000 | 510,000 | 0 | ||||||
Secondment fees | 75,000 | 75,000 | 75,000 | 75,000 | |||||
Receivable from related party | 75,000 | 75,000 | 0 | ||||||
W.A.Richardson Builders, LLC (WAR) | |||||||||
Related Party Transaction [Line Items] | |||||||||
Contractual obligation | $ 1,500,000 | ||||||||
Fees payable, percentage | 5.00% | ||||||||
Former owner | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payment related to royalty agreement with former owner | 0 | 47,000 | 21,000 | 120,000 | |||||
Royalty expense | 275,000 | 275,000 | 254,000 | ||||||
Stack's Bowers Numismatics, LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Sales | 8,418,000 | 1,530,000 | 18,900,000 | 2,925,000 | |||||
Purchases | 3,564,000 | 3,617,000 | 30,568,000 | 6,538,000 | |||||
Receivable | 927,000 | 927,000 | 2,000 | ||||||
Payables | 0 | 0 | $ 10,000 | ||||||
Interest income | 172,000 | 103,000 | 348,000 | 130,000 | |||||
Former Parent SGI Plans | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other Commitment | $ 150,000 | $ 150,000 | |||||||
Percentage of professional working time, maximum | 20.00% | 20.00% | |||||||
July 23, 2015 Loan Agreement | Stack Bowers Galleries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Short term loan receivable | $ 900,000 | $ 900,000 | $ 2,500,000 | ||||||
October 9, 2014 Loan Agreement | Stack Bowers Galleries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Short term loan receivable | 0 | 0 | $ 16,000,000 | ||||||
Interest Income from Loan Receivable | Stack's Bowers Numismatics, LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest income | 12,000 | 100,000 | 32,000 | 123,000 | |||||
Interest Income from Finance Products | Stack's Bowers Numismatics, LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest income | $ 160,000 | $ 3,000 | $ 316,000 | $ 7,000 |
Financing Agreements (Narrative
Financing Agreements (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Schedule Of Financing Arrangements [Line Items] | |||||
Liability on borrowed metals | $ 4,234,000 | $ 4,234,000 | $ 9,500,000 | ||
Product financing obligation | 50,504,000 | 50,504,000 | $ 39,425,000 | ||
Line of Credit | Trading credit facility | |||||
Schedule Of Financing Arrangements [Line Items] | |||||
Interest expense, notes payable | $ 1,100,000 | $ 800,000 | $ 2,300,000 | $ 1,800,000 | |
Percentage of total expense recognized | 86.90% | 87.50% | 89.40% | 87.60% | |
Effective rate of interest (percentage) | 2.72% | 2.94% | 2.77% | 3.00% | |
Line of Credit | Trading credit facility | A-Mark | Trading credit facility | |||||
Schedule Of Financing Arrangements [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 205,000,000 | $ 205,000,000 | |||
Variable rate basis | one-month LIBOR | ||||
Credit facility, interest rate at period end (percentage) | 0.43% | 0.43% | 0.19% | ||
Borrowings due on demand | $ 162,500,000 | $ 162,500,000 | $ 147,000,000 | ||
Credit facility, remaining borrowing capacity | $ 32,200,000 | 32,200,000 | $ 20,900,000 | ||
Credit facility, minimum required tangible net worth | $ 35,000,000 |
Derivative Instrument and Hed61
Derivative Instrument and Hedging Transactions (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross derivative receivable | $ 18,080 | $ 18,253 |
Amounts netted | (957) | (6,889) |
Net derivative receivable | 17,123 | 11,364 |
Gross derivative payable | 27,971 | 24,153 |
Amounts netted | (1,914) | (734) |
Cash collateral pledge | (6,127) | (5,522) |
Net derivative payables | 19,930 | 17,897 |
Open sales and purchase commitments | ||
Offsetting Assets and Liabilities [Line Items] | ||
Gross derivative receivable | 3,736 | 2,815 |
Amounts netted | (957) | (1,093) |
Net derivative receivable | 2,779 | 1,722 |
Gross derivative payable | 15,515 | 11,723 |
Amounts netted | (1,914) | (734) |
Cash collateral pledge | 0 | 0 |
Net derivative payables | 13,601 | 10,989 |
Margin accounts | ||
Offsetting Assets and Liabilities [Line Items] | ||
Gross derivative payable | 12,456 | 12,430 |
Amounts netted | 0 | 0 |
Cash collateral pledge | (6,127) | (5,522) |
Net derivative payables | 6,329 | 6,908 |
Future contracts | ||
Offsetting Assets and Liabilities [Line Items] | ||
Gross derivative receivable | 11,411 | 11,159 |
Amounts netted | 0 | (5,796) |
Net derivative receivable | 11,411 | 5,363 |
Forward contracts | ||
Offsetting Assets and Liabilities [Line Items] | ||
Gross derivative receivable | 2,933 | 4,279 |
Amounts netted | 0 | 0 |
Net derivative receivable | $ 2,933 | $ 4,279 |
Derivative Instrument and Hed62
Derivative Instrument and Hedging Transactions (Realized gain (loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||||
Realized loss on future commodity contracts, net | $ (2,601) | $ (28,166) | $ (17,008) | $ (34,522) |
Futures Commodity And Forwards Contracts And Open Purchase And Sale Commitments [Member] | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) on open future commodity and forward contracts and open sale and purchase commitments, net | 596 | 9,006 | (3,220) | 10,284 |
Commodity Contract | ||||
Derivative [Line Items] | ||||
Realized loss on future commodity contracts, net | $ (3,197) | $ (37,172) | $ (13,788) | $ (44,806) |
Derivative Instrument and Hed63
Derivative Instrument and Hedging Transactions (Hedging of Precious Metals Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Derivatives, Fair Value [Line Items] | ||
Inventory | $ 239,779 | $ 191,501 |
Commemorative coin inventory, held at lower of cost or market | (76) | (1,518) |
Premium on metals position | (4,451) | (3,255) |
Inventory value not hedged | (4,527) | (4,773) |
Subtotal | 235,252 | 186,728 |
Commitments at market: | ||
Open inventory purchase commitments | 353,421 | 444,023 |
Open inventory sales commitments | (226,942) | (249,081) |
Margin sale commitments | (12,456) | (12,430) |
In-transit inventory no longer subject to market risk | (8,885) | (13,807) |
Unhedgable premiums on open commitment positions | 2,192 | 528 |
Inventory borrowed from suppliers | (4,234) | (9,500) |
Product financing obligation | (50,504) | (39,425) |
Advances on industrial metals | 3,235 | 3,340 |
Inventory subject to price risk | 291,079 | 310,376 |
Inventory subject to derivative financial instruments | ||
Market value of derivative financial instruments | 290,827 | 310,316 |
Net inventory subject to commodity price risk | 252 | 60 |
Precious metals forward contracts at market values | ||
Inventory subject to derivative financial instruments | ||
Market value of derivative financial instruments | 124,497 | 202,323 |
Precious metals futures contracts at market values | ||
Inventory subject to derivative financial instruments | ||
Market value of derivative financial instruments | $ 166,330 | $ 107,993 |
Derivative Instrument and Hed64
Derivative Instrument and Hedging Transactions (Outstanding Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Derivative [Line Items] | ||
Purchase commitments | $ 353,421 | $ 444,023 |
Sale commitments | (226,942) | (249,081) |
Margin sales commitments | (12,456) | (12,430) |
Open derivative contracts | 290,827 | 310,316 |
Precious metals forward contracts at market values | ||
Derivative [Line Items] | ||
Open derivative contracts | 124,497 | 202,323 |
Future contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | $ 166,330 | $ 107,993 |
Derivative Instrument and Hed65
Derivative Instrument and Hedging Transactions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Derivative [Line Items] | |||||
Derivative open positions expected settlement period | 30 days | ||||
Unrealized gains (losses) on foreign exchange | $ 150 | $ (75) | $ 111 | $ (84) | |
Foreign Exchange | |||||
Derivative [Line Items] | |||||
Open inventory sale commitments | 600 | 600 | $ 6,200 | ||
Forward contracts | |||||
Derivative [Line Items] | |||||
Open inventory sale commitments | $ 3,100 | $ 3,100 | $ 9,900 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | Feb. 02, 2016 | Nov. 25, 2015 | Oct. 05, 2015 | May. 25, 2015 | Mar. 20, 2015 | Dec. 31, 2015 | Jun. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends paid ( usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |||
Period for recognition of nonvested awards (in years) | 1 year 9 months 29 days | ||||||
Anticipated quarterly payment of dividend, percentage | 5.00% | ||||||
Intrinsic value, balance | $ 2,088,000 | $ 283,000 | |||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total compensation cost not yet recognized, other than options | $ 31,752 | ||||||
Period for recognition of nonvested awards (in years) | 5 months 29 days | ||||||
Shares outstanding | 86,298 | 86,298 | |||||
Stock Appreciation Rights (SARs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period (in years) | 10 years | ||||||
Award vesting period (in years) | 3 years | ||||||
Shares outstanding | 0 | 8,990 | |||||
2014 Stock Award and Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum amount of shares per employee | 250,000 | ||||||
Shares granted under the plan, shares | 622,000 | ||||||
Non Employee Director Except Chairman of the Board | 2014 Stock Award and Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum grant date fair value | $ 300,000 | ||||||
Chairman of the Board | 2014 Stock Award and Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum grant date fair value | $ 600,000 | ||||||
Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividend declared (usd per share) | $ 0.07 |
Stockholders' Equity (Option Ac
Stockholders' Equity (Option Activity Rollforward) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Equity [Abstract] | |||||
Share-based compensation expense | $ 38,670 | $ 37,644 | $ 77,341 | $ 77,220 | |
Total compensation cost not yet recognized | $ 300,000 | $ 300,000 | |||
Period for recognition of nonvested awards (in years) | 1 year 9 months 29 days | ||||
Options | |||||
Options, beginning balance (shares) | 233,127 | ||||
Granted through stock option plan (shares) | 0 | ||||
Exercised (shares) | 0 | ||||
Cancellations, expirations and forfeitures (shares) | 0 | ||||
Options, ending balance (shares) | 233,127 | 233,127 | |||
Shares exercisable at end of the period | 182,184 | 182,184 | |||
Weighted Average Exercise Price Per Share | |||||
Beginning balance (in dollars per share) | $ 9.89 | ||||
Granted through stock option plan (in dollars per share) | 0 | ||||
Exercised (in dollars per share) | 0 | ||||
Cancellations, expirations and forfeitures (in dollars per share) | 0 | ||||
Ending balance (in dollars per share) | $ 9.89 | 9.89 | |||
Shares exercisable at end of period (in dollars per share) | $ 10.30 | $ 10.30 | |||
Intrinsic value, balance | $ 2,088,000 | $ 2,088,000 | $ 283,000 | ||
Intrinsic Value, Shares exercisable at end of period | $ 1,558,000 | $ 1,558,000 | |||
Weighted Average per share Grant Date Fair Value, beginning balance (in dollars per share) | $ 5.96 | $ 5.96 | $ 5.96 | ||
Weighted Average per share Grant Date Fair Value, Shares exercisable at end of period (in dollars per share) | $ 5.92 | $ 5.92 |
Stockholders' Equity (Options O
Stockholders' Equity (Options Outstanding, Range of Exercise Prices and Other Details) (Details) - $ / shares | 6 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock options outstanding, Number of Shares Outstanding (shares) | 233,127 | 233,127 |
Stock options outstanding, Weighted Average Remaining Contractual Life (years) | 6 years 9 months 26 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.89 | $ 9.89 |
Stock options exercisable, Number of Shares Exercisable (shares) | 182,184 | |
Stock options exercisable, Weighted Average Remaining Contractual Life (years) | 6 years 9 months 12 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 10.30 | |
Price Range $0 - $10.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Ranges, lower range limit (in dollars per share) | 0 | |
Exercise Price Ranges, upper range limit (in dollars per share) | $ 10 | |
Stock options outstanding, Number of Shares Outstanding (shares) | 134,239 | |
Stock options outstanding, Weighted Average Remaining Contractual Life (years) | 6 years 10 months 7 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.39 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 86,296 | |
Stock options exercisable, Weighted Average Remaining Contractual Life (years) | 6 years 10 months 1 day | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.41 | |
Price Range $10.01 - $15.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Ranges, lower range limit (in dollars per share) | 10.01 | |
Exercise Price Ranges, upper range limit (in dollars per share) | $ 15 | |
Stock options outstanding, Number of Shares Outstanding (shares) | 98,888 | |
Stock options outstanding, Weighted Average Remaining Contractual Life (years) | 6 years 9 months 12 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.94 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 95,888 | |
Stock options exercisable, Weighted Average Remaining Contractual Life (years) | 6 years 8 months 14 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 12 |
Stockholders' Equity (Restricte
Stockholders' Equity (Restricted Stock Units Activity Rollforward) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 38,670 | $ 37,644 | $ 77,341 | $ 77,220 |
Period for recognition of nonvested awards (in years) | 1 year 9 months 29 days | |||
Restricted Stock, Shares Outstanding [Roll Forward] | ||||
Shares granted (in shares) | 0 | |||
Restricted Stock, Weighted Average Share Price at Grant Date [Roll Forward] | ||||
Shares surrendered to cover employee minimum withholding taxes (in dollars per share) | $ 0 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 14,804 | $ 22,561 | $ 29,608 | $ 45,121 |
Total compensation cost not yet recognized, other than options | $ 31,752 | $ 31,752 | ||
Period for recognition of nonvested awards (in years) | 5 months 29 days | |||
Restricted Stock, Shares Outstanding [Roll Forward] | ||||
Beginning balance, restricted stock units (shares) | 86,298 | |||
Shares granted (in shares) | 0 | |||
Shares released (in shares) | 0 | |||
Shares surrendered to cover employee minimum withholding taxes (in shares) | 0 | |||
Shares forfeited (in shares) | 0 | |||
Ending balance, restricted stock units (shares) | 86,298 | 86,298 | ||
Restricted Stock, Weighted Average Share Price at Grant Date [Roll Forward] | ||||
Beginning balance (in dollars per share) | $ 2.34 | |||
Shares released (in dollars per share) | 0 | |||
Shares forfeited (in dollars per share) | 0 | |||
Ending balance (in dollars per share) | $ 2.34 | $ 2.34 | ||
Vested but unissued at period end (shares) | 35,957 | 35,957 | ||
Vested but unissued, end of period, Weighted Average Share Price at Grant Date (in dollars per share) | $ 0 | $ 0 |
Customer and Supplier Concent70
Customer and Supplier Concentration (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Concentration Risk [Line Items] | |||||
Revenues | $ 1,529,143 | $ 1,538,871 | $ 3,536,079 | $ 2,992,337 | |
Revenue | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 1,529,143 | $ 1,538,871 | $ 3,536,079 | $ 2,992,337 | |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Accounts receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Total accounts receivable, net | $ 22,557 | $ 22,557 | $ 30,025 | ||
Concentration risk, percentage | 100.00% | 100.00% | |||
United Overseas Bank Limited | Accounts receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Total accounts receivable, net | 2,458 | $ 2,458 | $ 0 | ||
Concentration risk, percentage | 10.90% | 0.00% | |||
Jerrit Canyon | Accounts receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Total accounts receivable, net | 3,042 | $ 3,042 | $ 1,435 | ||
Concentration risk, percentage | 13.50% | 4.80% | |||
HSBC Bank USA | Revenue | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 281,473 | $ 448,453 | $ 615,026 | $ 982,991 | |
Concentration risk, percentage | 18.40% | 29.10% | 17.40% | 32.90% | |
United States Mint | Accounts receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Total accounts receivable, net | $ 7,367 | $ 7,367 | $ 9,781 | ||
Concentration risk, percentage | 32.70% | 32.60% | |||
JM Bullion | Revenue | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 157,087 | $ 116,082 | $ 403,956 | $ 182,647 | |
Concentration risk, percentage | 10.30% | 7.50% | 11.40% | 6.10% | |
Major Customers | Revenue | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 438,560 | $ 564,535 | $ 1,018,982 | $ 1,165,638 | |
Concentration risk, percentage | 28.70% | 36.60% | 28.80% | 39.00% | |
Major Customers | Accounts receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Total accounts receivable, net | $ 12,867 | $ 12,867 | $ 11,216 | ||
Concentration risk, percentage | 57.10% | 37.40% |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 1,529,143 | $ 1,538,871 | $ 3,536,079 | $ 2,992,337 | |
Total inventories | 239,779 | 239,779 | $ 191,501 | ||
Assets | 363,079 | 363,079 | 325,902 | ||
Long term assets | 15,507 | 15,507 | 13,276 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,402,860 | 1,345,428 | 3,256,132 | 2,658,914 | |
Total inventories | 218,211 | 218,211 | 173,939 | ||
Assets | 340,482 | 340,482 | 302,046 | ||
Long term assets | 15,440 | 15,440 | 13,204 | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 42,616 | 64,460 | 94,748 | 119,410 | |
Total inventories | 6,484 | 6,484 | 4,374 | ||
Assets | 7,513 | 7,513 | 10,668 | ||
Long term assets | 67 | 67 | 72 | ||
North America, excluding United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 73,860 | 110,057 | 160,645 | 181,836 | |
Total inventories | 14,160 | 14,160 | 12,287 | ||
Assets | 14,160 | 14,160 | 12,287 | ||
Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 8,999 | 18,732 | 22,265 | 30,044 | |
Africa | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 18 | 25 | 63 | 25 | |
Australia | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 790 | 167 | 2,194 | 2,106 | |
South America | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | $ 2 | 32 | $ 2 | |
Asia | |||||
Segment Reporting Information [Line Items] | |||||
Total inventories | 924 | 924 | 901 | ||
Assets | $ 924 | $ 924 | $ 901 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 02, 2016 | Jan. 15, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Subsequent Event [Line Items] | ||||
Ownership percentage ( in percentage) | 15.00% | 9.00% | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Purchase of common stock, second investment, percentage | 5.80% | |||
Payment towards acquisition | $ 2.3 | |||
Ownership percentage ( in percentage) | 20.00% | |||
Dividend declared (usd per share) | $ 0.07 |