Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | May 08, 2017 | |
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 | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 7,031,450 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash | $ 6,440 | $ 17,142 |
Receivables, net | 42,863 | 43,302 |
Derivative assets | 4,638 | 33,732 |
Secured loans receivable | 92,676 | 70,004 |
Inventories: | ||
Inventories | 189,081 | 185,699 |
Restricted inventories | 156,450 | 59,358 |
Restricted and Nonrestricted Inventory, Net | 345,531 | 245,057 |
Income taxes receivable | 1,247 | 7,318 |
Income taxes receivable from Former Parent | 0 | 203 |
Prepaid expenses and other assets | 1,348 | 1,503 |
Total current assets | 494,743 | 418,261 |
Plant, property and equipment, net | 6,746 | 3,482 |
Goodwill | 8,881 | 4,620 |
Intangibles, net | 4,172 | 1,987 |
Long-term secured loans receivable | 0 | 500 |
Long-term investments | 7,946 | 7,873 |
Deferred tax assets | 517 | 424 |
Total assets | 523,005 | 437,147 |
Current liabilities: | ||
Lines of credit | 213,000 | 212,000 |
Liability on borrowed metals | 6,437 | 4,352 |
Product financing arrangements | 156,450 | 59,358 |
Accounts payable | 44,151 | 46,769 |
Derivative liabilities | 15,845 | 36,454 |
Note payable - related party | 500 | 0 |
Accrued liabilities | 5,602 | 7,660 |
Income taxes payable | 6,038 | 0 |
Total current liabilities | 448,023 | 366,593 |
Deferred tax liabilities | 1,679 | 7,245 |
Other long-term liabilities | 1,117 | 0 |
Total liabilities | 450,819 | 373,838 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of March 31, 2017 and June 30, 2016 | 0 | 0 |
Common Stock, par value $0.01; 40,000,000 shares authorized; 7,031,450 and 7,021,450 shares issued and outstanding as of March 31, 2017 and June 30, 2016, respectively | 71 | 71 |
Additional paid-in capital | 23,205 | 22,220 |
Retained earnings | 45,338 | 41,018 |
Total A-Mark Precious Metals, Inc. stockholders’ equity | 68,614 | 63,309 |
Non-controlling interest | 3,572 | 0 |
Total stockholders’ equity | 72,186 | 63,309 |
Total liabilities, non-controlling interest and stockholders’ equity | $ 523,005 | $ 437,147 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 7,031,450 | 7,021,450 |
Common stock, shares outstanding | 7,031,450 | 7,021,450 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,730,845 | $ 1,512,750 | $ 5,662,859 | $ 5,048,829 |
Cost of sales | 1,723,513 | 1,505,892 | 5,637,604 | 5,021,871 |
Gross profit | 7,332 | 6,858 | 25,255 | 26,958 |
Selling, general and administrative expenses | (5,989) | (5,366) | (17,784) | (16,302) |
Interest income | 3,283 | 2,250 | 9,101 | 6,365 |
Interest expense | (2,700) | (1,658) | (7,388) | (4,214) |
Other income | 191 | 107 | 270 | 613 |
Unrealized (loss) gain on foreign exchange | 21 | (102) | 12 | 9 |
Net income before provision for income taxes | 2,138 | 2,089 | 9,466 | 13,429 |
Provision for income taxes | (833) | (894) | (3,482) | (5,226) |
Net income | 1,305 | 1,195 | 5,984 | 8,203 |
Less: Net income attributable to non-controlling interest | 139 | 0 | 118 | 0 |
Net income attributable to the Company | $ 1,166 | $ 1,195 | $ 5,866 | $ 8,203 |
Basic and diluted income per share attributable to A-Mark Precious Metals, Inc.: | ||||
Basic (usd per share) | $ 0.17 | $ 0.17 | $ 0.83 | $ 1.18 |
Diluted (usd per share) | $ 0.16 | $ 0.17 | $ 0.82 | $ 1.15 |
Weighted average shares outstanding: | ||||
Basic (shares) | 7,023,300 | 6,983,400 | 7,028,700 | 6,976,800 |
Diluted (shares) | 7,129,500 | 7,146,100 | 7,121,500 | 7,111,900 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity - 9 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Total A-Mark Precious Metals, Inc. Stockholders' Equity | Non-Controlling Interest |
Beginning balance, shares at Jun. 30, 2016 | 7,021,450 | 7,021,450 | ||||
Beginning balance at Jun. 30, 2016 | $ 63,309 | $ 71 | $ 22,220 | $ 41,018 | $ 63,309 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,984 | 5,866 | 5,866 | 118 | ||
Share-based compensation | 675 | 675 | 675 | |||
Increase of excess tax benefit of share-based awards | 138 | 138 | 138 | |||
Non-controlling interest contribution related to acquisition | 3,454 | 3,454 | ||||
Stock award grant, shares | 10,000 | |||||
Stock award grant | 172 | 172 | 172 | |||
Dividends declared | $ (1,546) | (1,546) | (1,546) | |||
Ending balance, shares at Mar. 31, 2017 | 7,031,450 | 7,031,450 | ||||
Ending balance at Mar. 31, 2017 | $ 72,186 | $ 71 | $ 23,205 | $ 45,338 | $ 68,614 | $ 3,572 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 5,984 | $ 8,203 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 1,120 | 911 |
Amortization of loan cost | 583 | 0 |
Deferred income taxes | (5,659) | 4,540 |
Interest added to principal of secured loans | (50) | (65) |
Accrued earn-out | (198) | 0 |
Share-based compensation | 675 | 224 |
Earnings from equity method investment | (73) | (613) |
Changes in assets and liabilities: | ||
Receivables | 439 | 4,097 |
Secured loans | (18,163) | 2,404 |
Secured loans to Former Parent | (6,595) | (1,363) |
Derivative assets | 29,094 | 278 |
Income tax receivable | 6,071 | (999) |
Inventories | (100,474) | (82,472) |
Prepaid expenses and other current assets | (428) | (460) |
Accounts payable | (2,618) | (7,801) |
Derivative liabilities | (20,609) | (6,824) |
Liabilities on borrowed metals | 2,085 | (3,927) |
Accrued liabilities | (2,266) | 1,270 |
Receivable from/payables to Former Parent | 203 | 1,605 |
Income taxes payable | 6,038 | 0 |
Net cash used in operating activities | (104,841) | (80,992) |
Cash flows from investing activities: | ||
Capital expenditures for property and equipment | (1,932) | (1,112) |
Purchase of long-term investments | 0 | (4,672) |
Secured loans, net | 2,636 | (16,487) |
Acquisition of majority-owned subsidiary, net of cash | (3,421) | 0 |
Net cash used in investing activities | (2,717) | (22,271) |
Cash flows from financing activities: | ||
Product financing arrangements, net | 97,092 | 53,743 |
Dividends | (1,546) | (1,185) |
Borrowings under lines of credit, net | 1,000 | 43,000 |
Stock award grant | 172 | 0 |
Repurchase and retirement of restricted stock for payroll taxes | 0 | 250 |
Excess tax benefit of share-based awards | 138 | 0 |
Net cash provided by financing activities | 96,856 | 95,308 |
Net decrease in cash and cash equivalents | (10,702) | (7,955) |
Cash and cash equivalents, beginning of period | 17,142 | 20,927 |
Cash and cash equivalents, end of period | 6,440 | 12,972 |
Cash paid during the period for: | ||
Interest expense | 6,333 | 3,997 |
Income taxes | 2,953 | 151 |
Non-cash investing and financing activities: | ||
Interest added to principal of secured loans | 50 | 65 |
Contribution of assets from minority interest | 3,454 | 0 |
Payable to minority interest partner for acquired business | 500 | 0 |
Earn out obligation payable to minority interest partner | $ 1,523 | $ 0 |
Description of Business
Description of Business | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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 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. Logistics provides our customers an array of complementary services, including: packaging, shipping, handling, receiving, processing, and inventorying of precious metals and custom coins on a secure basis. The Company’s majority-owned affiliate, AM&ST Associates, LLC (“AMST”), operates the Company's minting operations in Winchester, Indiana (see Silvertowne Mint Transaction below). Silvertowne Mint Transaction On August 31, 2016, the Company formed a joint venture AMST with Silvertowne, L.P. (“Silvertowne”), an Indiana-based producer of minted silver products. The purpose of the joint venture was to acquire the entire minting operations of Silvertowne and continue to manage and grow that business using the expanded resources of the joint venture. In exchange for their respective membership interests in AMST, (i) Silvertowne contributed a 48.47% interest in Silvertowne's assets to AMST, valued at $3,453,750 , and (ii) A-Mark contributed $3,721,250 in cash to AMST and agreed to contribute an additional $500,000 in cash in August 2017, resulting in Silvertowne and the Company owning 45% and 55% of AMST, respectively. Of the cash contributions made at closing, $3,171,250 was used to purchase the interest in the remaining interest in Silvertowne' contributed assets (see following paragraph), $250,000 was used to purchase the land and building where AMST's minting operations is located, and $300,000 was provided for working capital. Simultaneously with the formation of AMST, under the Asset Purchase Agreement dated August 31, 2016, AMST purchased the remaining 51.53% interest in Silvertowne's assets for an aggregate purchase price of $3,671,250 , of which $3,171,250 was paid at closing and the balance of $500,000 was represented by a promissory note, which is due and payable one year following the closing. The real estate was acquired separately from the Asset Purchase agreement. As additional consideration for the acquired assets (the tangible plant assets and identifiable intangible assets), AMST agreed to pay Silvertowne earn-out payments over three years up to $1.0 million each year based on the achievement of specified performance and production thresholds. The total fair value of the assets contributed (by Silvertowne and A-Mark) and acquired by AMST was $7,675,000 before contingent future earn-out payments. The purchase price (consisting of: $3,453,750 of assets contributed by Silvertowne, $3,721,250 of cash and agreement to contribute an additional $500,000 in cash on August 2017 by the Company, and $1,523,000 contingent earn-out obligation of AMST) has been allocated to the total assets purchased based on their fair value on the date of acquisition as follows: Cash $ 300 Plant, property and equipment (tangible assets): Plant equipment 1,802 Building 299 Land 36 Intangibles assets (identifiable): Trade name 1,800 Existing customer relationships 700 Goodwill: Excess of cost over fair value of assets acquired 2,738 7,675 Goodwill: Contingent earn-out consideration 1,523 $ 9,198 The estimates of the fair value of the contingent consideration, and the allocation of the tangible and identifiable intangible assets requires extensive use of accounting estimates and management judgment. The fair values assigned to the assets acquired are based on estimates and assumptions from data currently available. The Company initially measured the fair value of the contingent future earn-out payments based on the weighted average probability of anticipated outcomes, and estimated the potential consideration to be $1,523,000 . As of March 31, 2017 the balance of contingent earn-out liability was adjusted to $1,325,000 (see Note 2 ). At the closing, AMST entered into (a) an exclusive distribution agreement with A-Mark with respect to the silver products produced by the AMST that sets weekly minimum order quantities by A-Mark and (b) a supply agreement with Asahi Refining USA, Inc. ("Asahi") to provide all refined silver products needed by AMST in the conduct of its business, and grant Asahi the option to purchase a 10% membership interest in AMST through 2019. 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 | 9 Months Ended |
Mar. 31, 2017 | |
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 reportable segment for all periods presented. These condensed consolidated financial statements include the accounts of A-Mark, and its wholly owned subsidiaries, CFC, AMTAG,TDS, Logistics and its majority owned affiliate AMST (collectively the “Company”). All 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 statement of stockholders’ equity, and condensed consolidated statements of cash flows for the periods presented in accordance with U.S. GAAP. Operating results for the nine months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending June 30, 2017 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, 2016 (the “2016 Annual Report”), as filed with the SEC. Amounts related to disclosure of June 30, 2016 balances within these interim condensed consolidated financial statements were derived from the aforementioned audited consolidated financial statements and notes thereto included in the 2016 Annual Report. Reclassifications Certain previously reported amounts have been reclassified to conform to the current fiscal year's condensed consolidated financial statement presentation. In the previous reported periods, deferred tax assets and liabilities were classified as current and non-current on the consolidated balance sheets; these items are shown as non-current tax assets and liabilities. As a result of required change in accounting treatment from the cost method to the equity method related to the Company's increased ownership interest in our investment, the earnings from our equity method investment was retrospectively applied to the previous period, as shown in other income and provision for income taxes in the condensed consolidated statements of income. 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, allowances for doubtful accounts, impairment assessments of long-lived assets and intangible assets, valuation allowance 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 inventory. 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 not 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. Business Combinations The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations . Transaction costs related to the acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities. Contingent consideration is classified as a liability or equity, as applicable. Contingent consideration in connection with the acquisition of a business is measured at fair value on acquisition date, and unless classified as equity, is remeasured at fair value each reporting period thereafter until the consideration is settled, with changes in fair value included in net income. Net cash paid to acquire a business is classified as investing activities on the accompanying condensed consolidated statements of cash flow. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. The Company does not have any cash equivalents as of March 31, 2017 and June 30, 2016 . Inventories Inventories principally include bullion and bullion coins that 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 .) Plant, Property and Equipment and Depreciation Plant, 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 twenty-five years . Property and equipment not placed in service, which includes capitalized software and leasehold improvement costs, are not depreciated until the related assets are placed in service. Land is recorded at historical cost, and is not depreciated. 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 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 March 31, 2017 and June 30, 2016 , the Company has not identified any 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. 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 March 31, 2017 and June 30, 2016 , management concluded that no impairment adjustments were required. 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-Term Investments Investments in privately-held entities that are at least 20% but less than 50% owned by the Company are accounted for using the equity method. Under the equity method the carrying value of the investment is adjusted for the Company’s proportionate share of the investee’s earnings or losses, with the corresponding share of earnings or losses reported in other income (expense). The carrying value of the investment is reduced by the amount of the dividends received from the equity-method investee, as they are considered a return of capital. Investments in privately-held entities that are less than 20% owned by the Company are accounted for using the cost method, unless the Company can exercise significant influence or the investee is economically dependent upon the Company, in which case the equity method is used. Under the cost method, investments are carried at cost and other income is recorded when dividends are received from the cost-method investee. We evaluate our long-term investments for impairment quarterly or whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. As of March 31, 2017 and June 30, 2016 , the Company did not identify any impairments. 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 .) Contingent Earn-out Liability We record an estimate of the fair value of contingent consideration, related to the earn-out obligations to Silvertowne LP related to Silvertowne Mint transaction (see Note 1 ). On a quarterly basis, we revalue the liability and record increases or decreases in the fair value as an adjustment to earnings. Changes to the contingent consideration liability can result from adjustments to the discount rate, or from changes to the estimates of future throughput activity of AMST, which are considered Level 3 inputs (see Note 3 ). Consequentially, the assumptions used in estimating fair value require significant judgment. The use of different assumptions and judgments could result in a materially different estimate of fair value. As of March 31, 2017 and June 30, 2016 the balance of contingent liability was $1.3 million and $0.0 million respectively. During the quarter ended March 31, 2017 , the Company recognized $0.2 million of Other Income related to revaluation adjustments to the balance of the contingent liability, which is shown in the condensed statements of income. Following is a reconciliation of the beginning and ending amounts of the contingent consideration obligation related to the Silvertowne Mint transaction, which is recorded as a component of accrued liabilities and other long-term liabilities: in thousands Contingent Liabilities at fair value, based on Level 3 inputs: Consideration Balance at June 30, 2016 $ — Initial valuation 1,523 Revaluation adjustments (198 ) Balance at March 31, 2017 $ 1,325 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 generally 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 secured loan 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 principal and then to any unrecognized interest income (see Note 5 .) Also, the Company enters into financing agreements, whereby the Company agrees to deliver products at the prevailing spot price plus a premium, and then acquires 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 based on usage under its lines of credit 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 with a third party finance company. During the term of this type of financing agreement, a third party company finances the designated inventory, 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. 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 for custodial storage facility charges related to the transferred collateral inventory; this collateral is classified as restricted inventory on our condensed consolidated balance sheets. 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. Other Income The Company's other income is derived from the Company's proportional interest in the investee's reported net income or net loss and the gains or losses associated with the contingent earn-out liability. Derivative Instruments The Company’s inventory, and purchase and sale commitment transactions consist of precious metals products. The value of our inventory and these commitments are 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 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 sheets at fair value. The Company records the change between fair 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 11 .) Advertising Advertising expense was $176,000 and $137,000 , respectively, for the three months ended March 31, 2017 and 2016 . Advertising expense was $542,000 and $463,000 , respectively, for the nine months ended March 31, 2017 and 2016 . 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 $1.1 million and $1.5 million , respectively, for the three months ended March 31, 2017 and 2016 . Shipping and handling costs incurred totaled $3.3 million and $5.6 million , respectively, for the nine months ended March 31, 2017 and 2016 . The decrease in shipping and handling cost is primarily due to fewer ounces of precious metals shipped in the current period compared to prior year period. 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 sheets principally within accrued liabilities. 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 12 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. 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. 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 receivable from Former Parent reflects the balance due from the Former Parent pursuant to a tax sharing agreement between the parties. 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 for the three and nine months ended March 31, 2017 and 2016 . in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Basic weighted average shares outstanding 7,0 |
Assets and Liabilities, at Fair
Assets and Liabilities, at Fair Value | 9 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and June 30, 2016 . in thousands March 31, 2017 June 30, 2016 Carrying Amount Fair value Carrying Amount Fair value Financial assets: Cash $ 6,440 $ 6,440 $ 17,142 $ 17,142 Receivables, net 42,863 42,863 43,302 43,302 Secured loans receivable 92,676 92,676 70,504 70,504 Derivative assets - open sale and purchase commitments, net 4,637 4,637 32,347 32,347 Derivative assets - forward contracts 1 1 1,385 1,385 Income taxes receivables 1,247 1,247 7,318 7,318 Income taxes receivable from Former Parent — — 203 203 Financial liabilities: Lines of credit $ 213,000 $ 213,000 $ 212,000 $ 212,000 Liability on borrowed metals 6,437 6,437 4,352 4,352 Product financing arrangements 156,450 156,450 59,358 59,358 Derivative liabilities - liability on margin accounts 5,475 5,475 8,182 8,182 Derivative liabilities - open sale and purchase commitments, net 262 262 1,919 1,919 Derivative liabilities - futures contracts 4,532 4,532 13,914 13,914 Derivative liabilities - forward contracts 5,576 5,576 12,439 12,439 Accounts payable 44,151 44,151 46,769 46,769 Accrued liabilities 5,602 5,602 7,660 7,660 Other long-term liabilities 1,117 1,117 — — Income taxes payable 6,038 6,038 — — Note payable - related party 500 500 — — The fair values of the financial instruments shown in the above table as of March 31, 2017 and June 30, 2016 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, and available observable and unobservable inputs. The carrying amounts of cash, secured loans receivable, accounts receivable, income taxes receivable, accounts payable, income tax payable, note payable, and accrued liabilities approximated fair value due to their short-term nature. The carrying amounts of derivative assets, derivative liabilities, liability on borrowed metals and product financing arrangements 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. The carrying value of other long-term liabilities represents the long-term portion of our contingent earn-out liability that is remeasured on a quarterly basis. 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 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 with 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. Contingent earn-out liability . The Company records an estimate of the fair value of contingent consideration, related to the earn-out obligations to Silvertowne LP related to Silvertowne Mint transaction (see Note 1 ). On a quarterly basis, the liability is remeasured and increases or decreases in the fair value is recorded as an adjustment to other income on the condensed consolidated statements of income. Changes to the contingent consideration liability can result from adjustments to the discount rate, or from changes to the estimates of future throughput activity of AMST. The assumptions used in estimating fair value require significant judgment. The use of different assumptions and judgments could result in a materially different estimate of fair value. The key inputs in determining fair value of our contingent consideration obligations of $1.3 million and $0.0 million as of March 31, 2017 and June 30, 2016 , respectively, include the changes in the assumed timing and amounts of future throughputs (i.e., operating income, operating cost per unit, and production volume) which affects the timing and amount of future earn-out payments. The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and June 30, 2016 aggregated by the level in the fair value hierarchy within which the measurements fall: March 31, 2017 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) $ 345,490 $ — $ — $ 345,490 Derivative assets — open sale and purchase commitments, net 4,637 — — 4,637 Derivative assets — forward contracts 1 — — 1 Total assets, valued at fair value $ 350,128 $ — $ — $ 350,128 Liabilities: Liability on borrowed metals 6,437 — — 6,437 Product financing arrangements 156,450 — — 156,450 Derivative liabilities — liability on margin accounts 5,475 — — 5,475 Derivative liabilities — open sale and purchase commitments, net 262 — — 262 Derivative liabilities — future contracts 4,532 — — 4,532 Derivative liabilities — forward contracts 5,576 — — 5,576 Contingent earn-out liability — — 1,325 1,325 Total liabilities, valued at fair value $ 178,732 $ — $ 1,325 $ 180,057 ____________________ (1) Commemorative coin inventory totaling $41,000 is held at lower of cost or market and is thus excluded from this table. June 30, 2016 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) $ 245,041 $ — $ — $ 245,041 Derivative assets — open sale and purchase commitments, net 32,347 — — 32,347 Derivative assets — forward contracts 1,385 — — 1,385 Total assets, valued at fair value $ 278,773 $ — $ — $ 278,773 Liabilities: Liability on borrowed metals $ 4,352 $ — $ — $ 4,352 Product financing arrangements 59,358 — — 59,358 Derivative liabilities — liability on margin accounts 8,182 — — 8,182 Derivative liabilities — open sale and purchase commitments, net 1,919 — — 1,919 Derivative liabilities — futures contracts 13,914 — — 13,914 Derivative liabilities — forward contracts 12,439 — — 12,439 Total liabilities, valued at fair value $ 100,164 $ — $ — $ 100,164 ____________________ (1) Commemorative coin inventory totaling $16,000 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. Refer to Note 2 for a reconciliation of the opening balance to the closing balance of contingent earn-out liability showing the attributes that comprise change. 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 and equity method investments that are written down to fair value when a decline in the fair value is 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 investments on a non-recurring basis. The Company's two investments in noncontrolled entities do not have readily determinable fair values. Quoted prices of the investments are not available, and the cost of obtaining an independent valuation appears excessive considering the carrying value of the instruments to the Company. As of March 31, 2017 and June 30, 2016 , the carrying value of the Company's investments totaled $7.9 million and $7.9 million , respectively. During the three and nine months ended March 31, 2017 , the Company did not record any impairments related to these investments. 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 March 31, 2017 , 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 nine months ended March 31, 2017 . |
Receivables
Receivables | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Receivables | RECEIVABLES Receivables consist of the following as of March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Customer trade receivables $ 7,073 $ 4,001 Wholesale trade advances 17,501 11,860 Due from brokers 18,319 27,471 Subtotal 42,893 43,332 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 42,863 $ 43,302 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, or other secured interests in assets of the customer. Wholesale Trade Advances. Wholesale trade advances represent advances of various bullion products and cash advances for purchase commitments of precious metal inventory. 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 11 ). 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 Nine Months Ended March 31, 2017 $ 30 $ — $ — $ 30 Year Ended June 30, 2016 $ 30 $ — $ — $ 30 |
Secured Loans Receivable
Secured Loans Receivable | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Secured Loans Receivable | SECURED LOANS RECEIVABLE Below is a summary of the carrying-value of our secured loans as of March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Secured loans originated $ 26,394 $ 36,280 Secured loans originated - with a related party 7,964 1,370 34,358 37,650 Secured loans acquired 58,318 (1) 32,854 (2) Secured loans (current and long-term) $ 92,676 $ 70,504 _________________________________ (1) Includes $72,000 of amortized loan premium as of March 31, 2017 . (2) Includes $86,000 of amortized loan premium as of June 30, 2016 . 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. 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 13 , 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 customer. The Company acquires a portfolio of their loan receivables at a price that approximates the aggregate carrying-value of 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, the seller of the loan portfolio retains the responsibility for the servicing and administration of the loans. As of March 31, 2017 and June 30, 2016 , our secured loans carried weighted-average effective interest rates of 9.1% and 8.7% , 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. 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 March 31, 2017 June 30, 2016 Bullion $ 59,802 64.5 % $ 35,168 49.9 % Numismatic and semi numismatic 32,874 35.5 34,636 49.1 Subtotal 92,676 100.0 69,804 99.0 Other pledged assets (1) — — 700 1.0 Total secured loans $ 92,676 100.0 % $ 70,504 100.0 % _________________________________ (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 March 31, 2017 June 30, 2016 Loan-to-value of 75% or more (1) $ 23,571 25.4 % $ 10,231 14.7 % Loan-to-value of less than 75% (1) 69,105 74.6 59,573 85.3 Secured loans collateralized by precious metal products (1) $ 92,676 100.0 % $ 69,804 100.0 % _________________________________ (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 March 31, 2017 . At June 30, 2016 , the Company had no loans with a loan-to-value ratio in excess of 100% . 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 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 nine months ended March 31, 2017 , the Company incurred no loan impairment costs. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2017 | |
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, it may or may not receive. Below, our inventory is summarized by classification at March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Inventory held for sale $ 49,715 $ 81,006 Repurchase arrangements with customers 126,057 92,283 Consignment arrangements with customers 6,831 8,042 Commemorative coins, held at lower of cost or market 41 16 Borrowed precious metals from suppliers 6,437 4,352 Product financing arrangement, restricted 156,450 59,358 $ 345,531 $ 245,057 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 March 31, 2017 and June 30, 2016 , the inventory held for sale totaled $49.7 million and $81.0 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, whereby the Company retains legal title to the metals. 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 March 31, 2017 and June 30, 2016 , included within inventory is $126.1 million and $92.3 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 March 31, 2017 and June 30, 2016 totaled $6.8 million and $8.0 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. 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 $41,000 and $16,000 as of March 31, 2017 and June 30, 2016 , 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, whereby the supplier retains legal title to the metals. 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 $6.4 million and $4.4 million as of March 31, 2017 and June 30, 2016 , 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 with 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 finances the inventory as collateral, and both parties intend for the inventory to be returned 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 sheets within product financing arrangements. 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 $156.5 million and $59.4 million as of March 31, 2017 and June 30, 2016 , respectively. The Company mitigates market risk of its physical inventories and open commitments through commodity hedge transactions (see Note 11 .) As of March 31, 2017 and June 30, 2016 , the unrealized gains (losses) resulting from the difference between market value and cost of physical inventories were $6.7 million and $12.7 million , respectively. 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 March 31, 2017 and June 30, 2016 totaled $4.7 million and $4.6 million , respectively. |
Plant, Property and Equipment
Plant, Property and Equipment | 9 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Plant, Property and Equipment | PLANT, PROPERTY AND EQUIPMENT Plant, property and equipment consists of the following at March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Office furniture, and fixtures $ 1,824 $ 1,107 Computer equipment 435 407 Computer software 2,386 2,386 Plant equipment 1,935 — Building 315 — Leasehold improvements 2,801 1,661 Total depreciable assets 9,696 5,561 Less: accumulated depreciation (3,848 ) (3,043 ) Property and equipment not placed in service 862 964 Land 36 — Plant, property and equipment, net $ 6,746 $ 3,482 Depreciation expense for the three months ended March 31, 2017 and 2016 was $305,000 and $209,000 , respectively. Depreciation expense for the nine months ended March 31, 2017 and 2016 was $805,000 and $624,000 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Mar. 31, 2017 | |
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. In September 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. Due to the Company's business combination with AMST that closed on August 31, 2016 (see Note 1 ) the Company recorded an additional $2.5 million and $4.3 million of identifiable intangible assets and goodwill, respectively. The Company’s investment in AMST is expected to create synergies between the acquired minting operation and the Company’s established distribution network by providing a more steady and reliable fabricated source of silver during times of market volatility. The Company considers that much of the acquired goodwill relates to the “ready state” of AMST's established minting operation with existing quality processes, procedures and ability to scale production to meet market needs. The carrying value of goodwill and other purchased intangibles as of March 31, 2017 and June 30, 2016 is as described below: dollar amounts in thousands March 31, 2017 June 30, 2016 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Identifiable intangible Assets: Existing customer relationships 5 - 15 $ 6,447 $ (4,529 ) $ 1,918 $ 5,747 $ (4,214 ) $ 1,533 Non-compete and other 4 2,000 (2,000 ) — 2,000 (2,000 ) — Employment agreement 3 195 (195 ) — 195 (195 ) — Intangibles subject to amortization 8,642 (6,724 ) 1,918 7,942 (6,409 ) 1,533 Trade Name Indefinite 2,254 — 2,254 454 — 454 $ 10,896 $ (6,724 ) $ 4,172 $ 8,396 $ (6,409 ) $ 1,987 Goodwill Indefinite $ 8,881 $ — $ 8,881 $ 4,620 $ — $ 4,620 The Company's 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 March 31, 2017 and 2016 was $108,000 and $96,000 , respectively. Amortization expense related to the Company's intangible assets for the nine months ended March 31, 2017 and 2016 was $315,000 and $287,000 , respectively. Estimated amortization expense on an annual basis for the succeeding five years is as follows (in thousands): Fiscal year ending June 30, Amount 2017 (three months remaining) $ 118 2018 455 2019 455 2020 448 2021 70 Thereafter 372 Total $ 1,918 |
Long-Term Investments
Long-Term Investments | 9 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Cost Method Investments [Abstract] | |
Long-Term Investments | LONG-TERM INVESTMENTS The Company has two investments in privately-held entities, both of which are online precious metals retailers and customers of the Company. The Company has exclusive supplier agreements with each entity, for which theses customers have agreed to purchase all bullion products required for their businesses exclusively from A-Mark, subject to certain limitations. The Company also provides fulfillment services to both of these customers. The following table shows the carrying value of the Company's investments in the privately held companies, categorized by type of investment: in thousands March 31, 2017 June 30, 2016 Equity method investment $ 7,446 $ 7,373 Cost method investment 500 500 $ 7,946 $ 7,873 Equity Method Investment The Company applies the equity method of accounting for its investment in which it has aggregate ownership interest of 20.2% . Under the equity method of accounting, the Company is required to record its proportional interest in the investee's reported net income or loss for each reporting period, and is required to present its prior period financial results to reflect the equity method of accounting from the date of its initial investment in the investee. The Company's proportionate share of the investee’s net income totaled $(6,000) and $107,000 for the three months ended March 31, 2017 and 2016 , respectively. The Company proportionate share of the investee’s net income totaled $73,000 and $613,000 for the nine months ended March 31, 2017 and 2016 , respectively. The Company's share of these earnings is shown as "other income" on the condensed consolidated statements of income. Cost Method Investment As of March 31, 2017 and June 30, 2016 , the Company’s ownership percentage, based on the number of fully dilutive common shares outstanding, was 2.5% , and the aggregate carrying balance of this investment was $0.5 million . |
Accounts Payable
Accounts Payable | 9 Months Ended |
Mar. 31, 2017 | |
Accounts Payable, Current [Abstract] | |
Accounts Payable | ACCOUNTS PAYABLE Accounts payable consists of the following: in thousands March 31, 2017 June 30, 2016 Trade payable to customers $ 692 $ 603 Advances from customers 39,014 36,369 Liability on deferred revenue 2,661 6,546 Due to brokers — 1,250 Other accounts payable 1,784 2,001 $ 44,151 $ 46,769 |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Transactions | 9 Months Ended |
Mar. 31, 2017 | |
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 speculative purposes. 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 enters into 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 on the condensed consolidated balance sheets. 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. 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 end of any period typically settle within 30 days. 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 are subject to price risk. The Company regularly enters into precious metals commodity forward and futures contracts with 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. The Company also maintains relationships with major market makers in every major precious metals dealing center. 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. 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 March 31, 2017 and June 30, 2016 . March 31, 2017 June 30, 2016 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 $ 19,353 $ (14,716 ) $ — $ 4,637 $ 37,378 $ (5,031 ) $ — $ 32,347 Forward contracts 1 — — 1 1,385 — — 1,385 $ 19,354 $ (14,716 ) $ — $ 4,638 $ 38,763 $ (5,031 ) $ — $ 33,732 Nettable derivative liabilities: Open sale and purchase commitments $ 758 $ (496 ) $ — $ 262 $ 2,938 $ (1,019 ) $ — $ 1,919 Margin accounts 9,084 — (3,609 ) 5,475 12,439 — (4,257 ) 8,182 Future contracts 4,532 — — 4,532 13,914 — — 13,914 Forward contracts 5,985 (409 ) — 5,576 14,579 (2,140 ) — 12,439 $ 20,359 $ (905 ) $ (3,609 ) $ 15,845 $ 43,870 $ (3,159 ) $ (4,257 ) $ 36,454 Gains or Losses 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 gains (losses) on derivative instruments for the three and nine months ended March 31, 2017 and 2016 . in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Gains (losses) on derivative instruments: Unrealized (losses) gains on open future commodity and forward contracts and open sale and purchase commitments, net $ 23,592 $ (5,262 ) $ (11,241 ) $ (8,482 ) Realized gains (losses) on future commodity contracts, net (193 ) 7,992 15,631 (5,796 ) $ 23,399 $ 2,730 $ 4,390 $ (14,278 ) 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 March 31, 2017 and at June 30, 2016 . in thousands March 31, 2017 June 30, 2016 Inventory $ 345,531 $ 245,057 Less unhedgable inventory: Commemorative coin inventory, held at lower of cost or market (41 ) (16 ) Premium on metals position (4,747 ) (4,627 ) Inventory value not hedged (4,788 ) (4,643 ) Subtotal 340,743 240,414 Commitments at market: Open inventory purchase commitments 629,212 550,810 Open inventory sales commitments (158,554 ) (237,325 ) Margin sale commitments (9,084 ) (12,439 ) In-transit inventory no longer subject to market risk (2,819 ) (7,363 ) Unhedgable premiums on open commitment positions 203 400 Inventory borrowed from suppliers (6,437 ) (4,352 ) Product financing arrangements (156,450 ) (59,358 ) Advances on industrial metals 2,231 4,521 Inventory subject to price risk 639,045 475,308 Inventory subject to derivative financial instruments: Precious metals forward contracts at market values 391,967 188,530 Precious metals futures contracts at market values 245,406 286,449 Total market value of derivative financial instruments 637,373 474,979 Net inventory subject to commodity price risk $ 1,672 $ 329 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 March 31, 2017 and June 30, 2016 , the Company had the following outstanding commitments and open forward and future contracts: in thousands March 31, 2017 June 30, 2016 Purchase commitments $ 629,212 $ 550,810 Sales commitments (158,554 ) (237,325 ) Margin sales commitments (9,084 ) (12,439 ) Open forward contracts 391,967 188,530 Open futures contracts 245,406 286,449 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 March 31, 2017 , 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 (losses) gains on foreign exchange derivative instruments shown on the face of the condensed consolidated statements of income totaled $21,000 and $(102,000) for the three months ended March 31, 2017 and 2016 , respectively. Unrealized (losses) gains on foreign exchange derivative instruments shown on the face of the condensed consolidated statements of income totaled $12,000 and $9,000 for the nine months ended March 31, 2017 and 2016 , 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 March 31, 2017 was $1.7 million and $3.6 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, 2016 was $2.0 million and $4.4 million , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2017 | |
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 nine months ended March 31, 2017 and 2016 consists of the following: in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Provision for income taxes $ 833 $ 894 $ 3,482 $ 5,226 The effective tax rate for the three and nine months ended March 31, 2017 and 2016 is as follows: in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Effective tax rate 39.0 % 42.8 % 36.8 % 38.9 % 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 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 March 31, 2017 and June 30, 2016 , the amount receivable under the Company's income tax sharing obligation due from Former Parent totaled $0.0 million , and $0.2 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. As of March 31, 2017 and June 30, 2016 , the income tax receivable totaled $1.2 million and $7.3 million , respectively. As of March 31, 2017 and June 30, 2016 , the income tax payable total of $6.0 million and $0.0 million , respectively; the change was primarily due to the movement of the Company's taxable temporary differences. As of March 31, 2017 and June 30, 2016 , the deferred tax assets (non-current) totaled $0.5 million and $0.4 million , respectively, and the deferred tax liabilities (non-current) totaled $1.7 million and $7.2 million , respectively. Net Operating Loss Carryforwards and Valuation Allowances As of March 31, 2017 and June 30, 2016 , the Company's state net operating loss carryforwards totaled approximately $11.3 million and $16.6 million , respectively. The Company's tax-effected state and city net operating loss carryforwards totaled, as of March 31, 2017 and June 30, 2016 , $0.6 million and $0.9 million , respectively. These net operating loss carryforwards start to expire in the year ending June 30, 2030 . As of March 31, 2017 and June 30, 2016 , the Company had $44,000 and $44,000 , respectively, of valuation allowance for certain state and city net operating loss carryforwards, based on the Company's annual assessment of the realizability of its deferred tax assets. Unrecognized Tax Benefits For nine months ended March 31, 2017 there was no material movement in the Company’s unrecognized tax benefits, including interest and penalties. Additionally, the Company does not expect a material change to its unrecognized tax benefits in the next 12 months. Tax Examinations On August 22, 2016, the Internal Revenue Service notified the Company that it has commenced an examination of the Company's tax return for the year ended June 30, 2015. The Company is unable to determine the outcome of the exam at this time. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Sales and Purchases Made to Affiliated Companies During the three and nine months ended March 31, 2017 and 2016 , the Company made sales and purchases to various companies, which have been deemed to be related parties. in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Sales Purchases Sales Purchases Sales Purchases Sales Purchases Former Parent $ 16,410 $ 15,105 $ 6,695 $ 1,242 $ 38,077 $ 38,441 $ 25,595 $ 31,810 Equity method investee 126,354 — 154,848 1,170 392,890 812 558,804 5,595 Silvertowne L.P. 5,156 1,210 167 1,712 23,975 3,952 3,858 26,284 $ 147,920 $ 16,315 $ 161,710 $ 4,124 $ 454,942 $ 43,205 $ 588,257 $ 63,689 Balances with Affiliated Companies As of March 31, 2017 and June 30, 2016 , the Company had related party receivables and payables balances as set forth below: in thousands March 31, 2017 June 30, 2016 Receivables Payable Receivables Payable Former Parent $ 7,853 $ — $ 1,913 $ 138 Equity method investee 1,469 — 2,396 — Silvertowne L.P. — (1,872 ) (1) — 282 $ 9,322 $ (1,872 ) $ 4,309 $ 420 _________________________________ 1) Includes a short-term earn-out liability of $0.2 million (recorded in accrued liabilities) and a payable of $0.5 million (recorded as short-term notes payable), and a long-term earn-out liability $1.1 million (recorded in other long-term liabilities). Secured Loans Made to Affiliated Companies On July 23, 2015, CFC entered into a loan agreement with Former Parent providing a secured line of credit, bearing interest at a competitive rate per annum. The loan is secured by numismatic and semi-numismatic products. As of March 31, 2017 and June 30, 2016 , the aggregate carrying value of this loan was $8.0 million and $1.4 million , respectively, and is shown on the condensed consolidated balance sheets as a component "secured loans receivable" (see Note 5 ). Interest Income Earned from Affiliated Companies During the three and nine months ended March 31, 2017 and 2016 , the Company earned interest income related to loans made to Former Parent and related to financing products sold to affiliated companies, as set forth below: in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Interest income from loan receivables $ 118 $ 16 $ 150 $ 48 Interest income from finance products 777 577 2,132 1,725 $ 895 $ 593 $ 2,282 $ 1,773 Other Income Earned from Equity Method Investee During the three months ended March 31, 2017 and 2016 , the Company recorded its proportional share of its equity method investee's net income as other income that total $(6,000) and $107,000 , respectively. During the nine months ended March 31, 2017 and 2016 , the Company recorded its proportional share of its equity method investee's net income as other income that total $73,000 and $613,000 , respectively. As of March 31, 2017 and June 30, 2016 , the carrying balance of the equity method investment was $7.4 million and $7.4 million , respectively. Income Tax Sharing Obligations The amount receivable under the Company's income tax sharing obligation due from our Former Parent totaled $0.0 million , and $0.2 million as of March 31, 2017 and June 30, 2016 respectively, and is shown on the face of the condensed consolidated balance sheets as "income taxes receivable from Former Parent" (see Note 12 .) 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, were approximately $1.5 million . WAR is entitled to a fee equal to 5.0% of the contract work. |
Financing Agreements
Financing Agreements | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Financing Agreements | FINANCING AGREEMENTS Lines of Credit T he Company has a borrowing facility ("Trading Credit Facility") with a syndicate of banks, with Coöperatieve Rabobank U.A. ("Rabobank") acting as lead lender and administrative agent for the syndicate and has a security agreement with the banks securing the Trading Credit Facility with substantially all of the Company’s assets on a first priority basis. The Trading Credit Facility has a maturity that extends to May 31, 2017. Currently, the Trading Credit Facility provides the Company with access up to $275.0 million , featuring a $225.0 million base with a $50.0 million accordion option. As of March 31, 2017 , the Company incurred $0.9 million of loan costs in connection with the Trading Credit Facility, which was capitalized and is being amortized over the term of the Trading Credit Facility. As of March 31, 2017 and June 30, 2016 , the balance of accumulated amortized loan cost was approximately $0.1 million and $0.6 million , respectively. The Company expects that the Trading Credit Facility will be extended to March 31, 2018 on substantially the same terms. 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 2.50% margin for revolving credit line loans and a 4.50% margin for bridge loans (that is, for loans that exceed the available revolving credit line). The one-month LIBOR rate was approximately 0.98% and 0.47% as of March 31, 2017 and June 30, 2016 , respectively. Borrowings are due on demand and totaled $213.0 million and $212.0 million at March 31, 2017 and at June 30, 2016 , respectively. The amounts available under the respective borrowing facilities 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 borrowing facilities and lender approval of the revised borrowing base calculation. Based on the latest approved borrowing bases in effect, the amounts available under the Trading Credit Facility after taking into account current borrowings, totaled $23.1 million and $17.8 million as determined on Friday March 31, 2017 and on the Friday before June 30, 2016 , respectively. The Trading Credit Facility has certain restrictive financial covenants, including one which requires the Company to maintain a minimum tangible net worth and one that has restrictions on dividend payments. As of March 31, 2017 the minimum tangible net worth financial covenant under the Trading Credit Facility was $38.9 million . The Company is in compliance with all restrictive financial covenants as of March 31, 2017 . Interest expense related to the Company’s lines of credit totaled $1.7 million and $1.3 million , which represents 64.5% and 76.7% of the total interest expense recognized, for the three months ended March 31, 2017 and 2016 , respectively. Our lines of credit carried a daily weighted average effective interest rate of 3.22% and 2.82% , respectively, for the three months ended March 31, 2017 and 2016 . Interest expense related to the Company’s lines of credit totaled $4.8 million and $3.6 million , which represents 64.3% and 84.4% of the total interest expense recognized, for the nine months ended March 31, 2017 and 2016 , respectively. Our lines of credit carried a daily weighted average effective interest rate of 3.08% and 2.79% , respectively, for the nine months ended March 31, 2017 and 2016 . 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 $6.4 million and $4.4 million as of March 31, 2017 and June 30, 2016 , respectively. Product Financing Arrangements The Company has agreements with financial institutions (third parties) that allows the Company to transfer its gold and silver inventory at a fixed price to these third parties. Such agreements 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 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 as product financing arrangements. 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 $156.5 million and $59.4 million as of March 31, 2017 and June 30, 2016 , respectively. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | COMMITMENTS, CONTINGENCIES AND GUARANTEES Refer to Note 15 of the Notes to Consolidated Financial Statements in the 2016 Annual Report for information relating to minimum rental payments under operating and capital leases, consulting and employment contracts, and other commitments. Other that the following items, the Company is not aware of any material changes to commitments or contingencies, as summarized in the 2016 Annual Report. • Pursuant to the Silvertowne transaction (see Note 1 ), AMST entered into an exclusive distribution agreement with the Company with respect to the silver products produced by AMST that sets weekly minimum order quantities by A-Mark. For the term of the agreement ( 3 years initially with two -year term renewals), the Company is required to order no less than 300,000 ounces of silver products per week on average during any consecutive four week period during the term of the agreement. The price paid per ounce is mutually determined by both parties, and is subject to adjustments every six months during the term. • Pursuant to the Silvertowne transaction (see Note 1 ), AMST entered into an exclusive supplier agreement with Asahi for refined silver, where A-Mark agreed to pay Asahi for the refined silver delivered to AMST (as AMST may acquire to produce the finished product) and pay AMST a premium for such services. The term of the agreement is initially for three years with a two -year term renewal, and the pricing terms are subject to adjustments every six months. After the close of Silvertowne transaction, AMST entered into an agreement to lease 100,000 ounces of refined silver from Asahi, where A-Mark provided a guarantee to Asahi for AMST's obligation related to value of refined silver leased from Asahi. The lease term is for one year with an automatic one year renew term, and the lease fees are subject to adjustments every six months. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2017 | |
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 eight of the most recent quarterly dividends declared pursuant to this policy: Dividend Record Date (at close of Business) Type of Dividend Basis of Payment Payment Date 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 February 2, 2016 February 15, 2016 Cash $ 0.07 per common share February 29, 2016 April 29, 2016 May 13, 2016 Cash $ 0.07 per common share May 27, 2016 September 7, 2016 September 19, 2016 Cash $ 0.07 per common share October 7, 2016 November 1, 2016 November 14, 2016 Cash $ 0.07 per common share December 1, 2016 January 26, 2017 February 8, 2017 Cash $ 0.08 per common share February 24, 2017 On May 2, 2017 , the Board of Directors of the Company declared a quarterly cash dividend of $0.08 per common share to stockholders of record at the close of business on May 15, 2017 , which is scheduled to be paid on or about May 25, 2017 . 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 Compensation 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 March 31, 2017 , 103,300 shares were available for grant under the 2014 Plan. Valuation and Significant Assumptions of Equity Awards Issued The Company uses 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. Stock Options During the three months ended March 31, 2017 and 2016 , the Company incurred $254,747 and $102,705 of compensation expense related to stock options, respectively. During the nine months ended March 31, 2017 and 2016 , the Company incurred $675,180 and $180,046 of compensation expense related to stock options, respectively. As of March 31, 2017 , there was total remaining compensation expense of $2.5 million related to employee stock options, which will be recorded over a weighted average period of approximately 2.6 years . The following table summarizes the stock option activity for the nine months ended March 31, 2017 . 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, 2016 581,527 $ 17.55 $ 1,466 $ 6.32 Granted 168,000 $ 19.17 Cancellations, expirations and forfeitures (7,700 ) $ 19.94 Outstanding at March 31, 2017 741,827 $ 17.90 $ 1,675 $ 6.19 Exercisable at March 31, 2017 208,155 $ 10.07 $ 1,459 $ 5.94 Following is a summary of the status of stock options outstanding at March 31, 2017 : 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 5.60 $ 8.39 110,267 5.61 $ 8.40 10.01 15.00 98,888 5.53 $ 11.94 97,888 5.51 $ 11.96 15.01 25.00 408,700 9.20 $ 20.60 — 0.00 — 25.01 60.00 100,000 8.90 $ 25.50 — 0.00 — 741,827 8.02 $ 17.90 208,155 5.56 $ 10.07 Restricted Stock Units During the three months ended March 31, 2017 and 2016 , the Company incurred $0 and $14,804 of compensation expense related to Restricted Stock Units ("RSUs"), respectively. During the nine months ended March 31, 2017 and 2016 , the Company incurred $0 and $44,412 of compensation expense related to Restricted Stock Units ("RSUs"), respectively. There was no RSU activity during the nine months ended March 31, 2017 , and there are no RSU outstanding as March 31, 2017 . 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 Concentrations | 9 Months Ended |
Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Customer and Supplier Concentrations | CUSTOMER AND SUPPLIER CONCENTRATIONS Customer Concentration Customers providing 10 percent or more of the Company's revenues for the three and nine months ended March 31, 2017 are presented on a comparative basis in the table below: in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Amount Percent Amount Percent Amount Percent Amount Percent Total revenue $ 1,730,845 100.0 % $ 1,512,750 100.0 % $ 5,662,859 100.0 % $ 5,048,829 100.0 % Customer concentrations HSBC Bank USA $ 293,686 17.0 % $ 245,022 16.2 % $ 1,268,160 22.4 % $ 860,048 17.0 % Mitsubishi Intl. Corp. 322,842 18.6 140,624 9.3 827,583 14.6 358,599 7.1 $ 616,528 35.6 % $ 385,646 25.5 % $ 2,095,743 37.0 % $ 1,218,647 24.1 % Customers providing 10 percent or more of the Company's accounts receivable as of March 31, 2017 are presented on a comparative basis in the table below: in thousands March 31, 2017 June 30, 2016 Amount Percent Amount Percent Total accounts receivable, net $ 42,863 100.0 % $ 43,302 100.0 % Customer concentrations Customer A $ 7,660 17.9 % $ 1,336 3.1 % Customer B 6,170 14.4 5,256 12.1 $ 13,830 32.3 % $ 6,592 15.2 % 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 | 9 Months Ended |
Mar. 31, 2017 | |
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 Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Revenue by geographic region: United States $ 1,579,302 $ 1,367,127 $ 5,298,549 $ 4,623,259 Europe 100,731 62,623 204,316 157,371 North America, excluding United States 49,154 72,092 149,204 232,737 Asia Pacific 596 10,020 7,170 32,285 Africa — — — 63 Australia 1,062 888 3,620 3,082 South America — — — 32 Total revenue $ 1,730,845 $ 1,512,750 $ 5,662,859 $ 5,048,829 in thousands March 31, 2017 June 30, 2016 Inventories by geographic region: United States $ 329,824 $ 224,617 Europe 7,688 5,258 North America, excluding United States 7,689 12,691 Asia 330 2,491 Total inventories $ 345,531 $ 245,057 in thousands March 31, 2017 June 30, 2016 Assets by geographic region: United States $ 504,956 $ 413,621 Europe 10,030 8,344 North America, excluding United States 7,689 12,691 Asia 330 2,491 Total assets $ 523,005 $ 437,147 in thousands March 31, 2017 June 30, 2016 Long-term assets by geographic region: United States $ 28,205 $ 18,824 Europe 57 62 Total long-term assets $ 28,262 $ 18,886 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Dividend Declaration On May 2, 2017 , the Board of Directors of the Company declared a quarterly cash dividend of $0.08 per common share to stockholders of record at the close of business on May 15, 2017 , which is scheduled to be paid on or about May 25, 2017 . |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
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 reportable segment for all periods presented. These condensed consolidated financial statements include the accounts of A-Mark, and its wholly owned subsidiaries, CFC, AMTAG,TDS, Logistics and its majority owned affiliate AMST (collectively the “Company”). All inter-company accounts and transactions have been eliminated in consolidation |
Reclassifications | Reclassifications Certain previously reported amounts have been reclassified to conform to the current fiscal year's condensed consolidated financial statement presentation. In the previous reported periods, deferred tax assets and liabilities were classified as current and non-current on the consolidated balance sheets; these items are shown as non-current tax assets and liabilities. As a result of required change in accounting treatment from the cost method to the equity method related to the Company's increased ownership interest in our investment, the earnings from our equity method investment was retrospectively applied to the previous period, as shown in other income and provision for income taxes in the condensed consolidated statements of income. |
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, allowances for doubtful accounts, impairment assessments of long-lived assets and intangible assets, valuation allowance 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 inventory. 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 not 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. |
Business Combinations | Business Combinations The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations . Transaction costs related to the acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities. Contingent consideration is classified as a liability or equity, as applicable. Contingent consideration in connection with the acquisition of a business is measured at fair value on acquisition date, and unless classified as equity, is remeasured at fair value each reporting period thereafter until the consideration is settled, with changes in fair value included in net income. Net cash paid to acquire a business is classified as investing activities on the accompanying condensed consolidated statements of cash flow. |
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 that 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 .) |
Plant, Property and Equipment and Depreciation | Plant, Property and Equipment and Depreciation Plant, 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 twenty-five years . Property and equipment not placed in service, which includes capitalized software and leasehold improvement costs, are not depreciated until the related assets are placed in service. Land is recorded at historical cost, and is not depreciated. |
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 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 March 31, 2017 and June 30, 2016 , the Company has not identified any 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. |
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 March 31, 2017 and June 30, 2016 , management concluded that no impairment adjustments were required. |
Long-Term Investments | Long-Term Investments Investments in privately-held entities that are at least 20% but less than 50% owned by the Company are accounted for using the equity method. Under the equity method the carrying value of the investment is adjusted for the Company’s proportionate share of the investee’s earnings or losses, with the corresponding share of earnings or losses reported in other income (expense). The carrying value of the investment is reduced by the amount of the dividends received from the equity-method investee, as they are considered a return of capital. Investments in privately-held entities that are less than 20% owned by the Company are accounted for using the cost method, unless the Company can exercise significant influence or the investee is economically dependent upon the Company, in which case the equity method is used. Under the cost method, investments are carried at cost and other income is recorded when dividends are received from the cost-method investee. We evaluate our long-term investments for impairment quarterly or whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. |
Fair Value Measurement | 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 .) |
Contingent Earn-out Liability | Contingent Earn-out Liability We record an estimate of the fair value of contingent consideration, related to the earn-out obligations to Silvertowne LP related to Silvertowne Mint transaction (see Note 1 ). On a quarterly basis, we revalue the liability and record increases or decreases in the fair value as an adjustment to earnings. Changes to the contingent consideration liability can result from adjustments to the discount rate, or from changes to the estimates of future throughput activity of AMST, which are considered Level 3 inputs (see Note 3 ). Consequentially, the assumptions used in estimating fair value require significant judgment. The use of different assumptions and judgments could result in a materially different estimate of fair value. |
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 generally 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 secured loan 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 principal and then to any unrecognized interest income (see Note 5 .) Also, the Company enters into financing agreements, whereby the Company agrees to deliver products at the prevailing spot price plus a premium, and then acquires 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 | Interest Expense The Company incurs interest expense based on usage under its lines of credit 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 with a third party finance company. During the term of this type of financing agreement, a third party company finances the designated inventory, 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. 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 for custodial storage facility charges related to the transferred collateral inventory; this collateral is classified as restricted inventory on our condensed consolidated balance sheets. 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. |
Other Income | Other Income The Company's other income is derived from the Company's proportional interest in the investee's reported net income or net loss and the gains or losses associated with the contingent earn-out liability. |
Derivative Instruments | Derivative Instruments The Company’s inventory, and purchase and sale commitment transactions consist of precious metals products. The value of our inventory and these commitments are 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 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 sheets at fair value. The Company records the change between fair 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 11 .) |
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 sheets principally within accrued liabilities. 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 12 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. 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. 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 receivable from Former Parent reflects the balance due from the Former Parent pursuant to a tax sharing agreement between the parties. |
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 January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , (“ASU 2017-04”). The amendments of this ASU eliminate step 2 from the goodwill impairment test. The annual, or interim test is performed by comparing the fair value of a reporting unit with its carrying amount. The amendments of this ASU also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and if it fails that qualitative test, to perform step 2 of the goodwill impairment test. This update is effective for the Company, on July 1, 2020 (for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years). Early adoption is permitted for interim or annual goodwill impairment test performed on testing dates after January 1, 2017. The Company is currently evaluating the potential impact of adoption of ASU 2017-04 guidance on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , (“ASU 2017-01”). The objective of ASU 2017-01 is to clarify the definition of a business in order to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. ASU 2017-01 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company is currently evaluating the impact ASU 2017-01 will have on its consolidated financial statements. In August 2016 the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”) . This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective for the Company, on July 1, 2018 (for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years). The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. Early adoption is permitted. The Company does not expect that adopting the provisions of ASU No. 2016-15 in the future will have a material impact on our consolidated financial statements. In March 2016, FASB issued ASU No. 2016-09 C ompensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) . The amendments in this update simplify several aspects of the accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This update is effective for the Company, on July 1, 2017 (for fiscal years beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2018). Early adoption is permitted. The Company is evaluating the guidelines of ASU 2016-09 to see if they will have a significant impact on our consolidated financial statements. In February 2016, FASB issued ASU 2016-02 Leases (Topic 842) (“ASU 2016-02”). The amendments in this update require lessees to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases at the commencement date. This update is effective for the Company, on July 1, 2019 (for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years), and is to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are evaluating the guidelines of ASU 2016-02, but we believe that its adoption will not have a material impact on our consolidated financial statements, as the Company has minimal lease commitments. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ( ASU 2014-09), 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 March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). The amendments in ASU 2016-08 clarify the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”). The amendments in ASU 2016-10 clarify aspects relating to the identification of performance obligations and improve the operability and understandability of the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in ASU 2016-12 address certain issues identified on assessing collectability, presentation of sales taxes, non-cash consideration, and completed contracts and contract modifications at transition. For all of the ASUs noted above, the effective date for Company is July 1, 2018 (for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years) for annual and interim reporting periods. Either the retrospective or cumulative effect transition method is permitted. In our process of adopting the guidelines of ASU 2014-09, we are categorizing our various contract revenue streams in order to assess those that will be significantly impacted, and we have begun estimating the potential impact of the new guidelines. Once we have quantified the impact of these new guidelines, we will identify the necessary control and process changes. |
Description of Business (Tables
Description of Business (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price (consisting of: $3,453,750 of assets contributed by Silvertowne, $3,721,250 of cash and agreement to contribute an additional $500,000 in cash on August 2017 by the Company, and $1,523,000 contingent earn-out obligation of AMST) has been allocated to the total assets purchased based on their fair value on the date of acquisition as follows: Cash $ 300 Plant, property and equipment (tangible assets): Plant equipment 1,802 Building 299 Land 36 Intangibles assets (identifiable): Trade name 1,800 Existing customer relationships 700 Goodwill: Excess of cost over fair value of assets acquired 2,738 7,675 Goodwill: Contingent earn-out consideration 1,523 $ 9,198 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Contingent Consideration | Following is a reconciliation of the beginning and ending amounts of the contingent consideration obligation related to the Silvertowne Mint transaction, which is recorded as a component of accrued liabilities and other long-term liabilities: in thousands Contingent Liabilities at fair value, based on Level 3 inputs: Consideration Balance at June 30, 2016 $ — Initial valuation 1,523 Revaluation adjustments (198 ) Balance at March 31, 2017 $ 1,325 |
Schedule of earnings per share | A reconciliation of shares used in calculating basic and diluted earnings per common shares for the three and nine months ended March 31, 2017 and 2016 . in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Basic weighted average shares outstanding 7,023 6,983 7,029 6,977 Effect of common stock equivalents — stock issuable under outstanding equity awards 107 163 93 135 Diluted weighted average shares outstanding 7,130 7,146 7,122 7,112 |
Assets and Liabilities, at Fa29
Assets and Liabilities, at Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and June 30, 2016 . in thousands March 31, 2017 June 30, 2016 Carrying Amount Fair value Carrying Amount Fair value Financial assets: Cash $ 6,440 $ 6,440 $ 17,142 $ 17,142 Receivables, net 42,863 42,863 43,302 43,302 Secured loans receivable 92,676 92,676 70,504 70,504 Derivative assets - open sale and purchase commitments, net 4,637 4,637 32,347 32,347 Derivative assets - forward contracts 1 1 1,385 1,385 Income taxes receivables 1,247 1,247 7,318 7,318 Income taxes receivable from Former Parent — — 203 203 Financial liabilities: Lines of credit $ 213,000 $ 213,000 $ 212,000 $ 212,000 Liability on borrowed metals 6,437 6,437 4,352 4,352 Product financing arrangements 156,450 156,450 59,358 59,358 Derivative liabilities - liability on margin accounts 5,475 5,475 8,182 8,182 Derivative liabilities - open sale and purchase commitments, net 262 262 1,919 1,919 Derivative liabilities - futures contracts 4,532 4,532 13,914 13,914 Derivative liabilities - forward contracts 5,576 5,576 12,439 12,439 Accounts payable 44,151 44,151 46,769 46,769 Accrued liabilities 5,602 5,602 7,660 7,660 Other long-term liabilities 1,117 1,117 — — Income taxes payable 6,038 6,038 — — Note payable - related party 500 500 — — |
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 March 31, 2017 and June 30, 2016 aggregated by the level in the fair value hierarchy within which the measurements fall: March 31, 2017 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) $ 345,490 $ — $ — $ 345,490 Derivative assets — open sale and purchase commitments, net 4,637 — — 4,637 Derivative assets — forward contracts 1 — — 1 Total assets, valued at fair value $ 350,128 $ — $ — $ 350,128 Liabilities: Liability on borrowed metals 6,437 — — 6,437 Product financing arrangements 156,450 — — 156,450 Derivative liabilities — liability on margin accounts 5,475 — — 5,475 Derivative liabilities — open sale and purchase commitments, net 262 — — 262 Derivative liabilities — future contracts 4,532 — — 4,532 Derivative liabilities — forward contracts 5,576 — — 5,576 Contingent earn-out liability — — 1,325 1,325 Total liabilities, valued at fair value $ 178,732 $ — $ 1,325 $ 180,057 ____________________ (1) Commemorative coin inventory totaling $41,000 is held at lower of cost or market and is thus excluded from this table. June 30, 2016 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) $ 245,041 $ — $ — $ 245,041 Derivative assets — open sale and purchase commitments, net 32,347 — — 32,347 Derivative assets — forward contracts 1,385 — — 1,385 Total assets, valued at fair value $ 278,773 $ — $ — $ 278,773 Liabilities: Liability on borrowed metals $ 4,352 $ — $ — $ 4,352 Product financing arrangements 59,358 — — 59,358 Derivative liabilities — liability on margin accounts 8,182 — — 8,182 Derivative liabilities — open sale and purchase commitments, net 1,919 — — 1,919 Derivative liabilities — futures contracts 13,914 — — 13,914 Derivative liabilities — forward contracts 12,439 — — 12,439 Total liabilities, valued at fair value $ 100,164 $ — $ — $ 100,164 ____________________ (1) Commemorative coin inventory totaling $16,000 is held at lower of cost or market and is thus excluded from this table. |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of receivables and secured loans | Receivables consist of the following as of March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Customer trade receivables $ 7,073 $ 4,001 Wholesale trade advances 17,501 11,860 Due from brokers 18,319 27,471 Subtotal 42,893 43,332 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 42,863 $ 43,302 |
Schedule of 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 Nine Months Ended March 31, 2017 $ 30 $ — $ — $ 30 Year Ended June 30, 2016 $ 30 $ — $ — $ 30 |
Secured Loans Receivable (Table
Secured Loans Receivable (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of receivables and secured loans | Receivables consist of the following as of March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Customer trade receivables $ 7,073 $ 4,001 Wholesale trade advances 17,501 11,860 Due from brokers 18,319 27,471 Subtotal 42,893 43,332 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 42,863 $ 43,302 |
Schedule of classes for financing receivables | The Company's secured loans by portfolio class, which align with management reporting, are as follows: in thousands March 31, 2017 June 30, 2016 Bullion $ 59,802 64.5 % $ 35,168 49.9 % Numismatic and semi numismatic 32,874 35.5 34,636 49.1 Subtotal 92,676 100.0 69,804 99.0 Other pledged assets (1) — — 700 1.0 Total secured loans $ 92,676 100.0 % $ 70,504 100.0 % _________________________________ (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 March 31, 2017 June 30, 2016 Loan-to-value of 75% or more (1) $ 23,571 25.4 % $ 10,231 14.7 % Loan-to-value of less than 75% (1) 69,105 74.6 59,573 85.3 Secured loans collateralized by precious metal products (1) $ 92,676 100.0 % $ 69,804 100.0 % _________________________________ (1 ) Excludes secured loans that are collateralized by borrower's assets, which are not exclusively precious metal products. |
Financing Receivable | |
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 March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Secured loans originated $ 26,394 $ 36,280 Secured loans originated - with a related party 7,964 1,370 34,358 37,650 Secured loans acquired 58,318 (1) 32,854 (2) Secured loans (current and long-term) $ 92,676 $ 70,504 _________________________________ (1) Includes $72,000 of amortized loan premium as of March 31, 2017 . (2) Includes $86,000 of amortized loan premium as of June 30, 2016 . |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
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, it may or may not receive. Below, our inventory is summarized by classification at March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Inventory held for sale $ 49,715 $ 81,006 Repurchase arrangements with customers 126,057 92,283 Consignment arrangements with customers 6,831 8,042 Commemorative coins, held at lower of cost or market 41 16 Borrowed precious metals from suppliers 6,437 4,352 Product financing arrangement, restricted 156,450 59,358 $ 345,531 $ 245,057 |
Plant, Property and Equipment (
Plant, Property and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Plant, Property and Equipment | Plant, property and equipment consists of the following at March 31, 2017 and June 30, 2016 : in thousands March 31, 2017 June 30, 2016 Office furniture, and fixtures $ 1,824 $ 1,107 Computer equipment 435 407 Computer software 2,386 2,386 Plant equipment 1,935 — Building 315 — Leasehold improvements 2,801 1,661 Total depreciable assets 9,696 5,561 Less: accumulated depreciation (3,848 ) (3,043 ) Property and equipment not placed in service 862 964 Land 36 — Plant, property and equipment, net $ 6,746 $ 3,482 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other purchased intangible assets | The carrying value of goodwill and other purchased intangibles as of March 31, 2017 and June 30, 2016 is as described below: dollar amounts in thousands March 31, 2017 June 30, 2016 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Identifiable intangible Assets: Existing customer relationships 5 - 15 $ 6,447 $ (4,529 ) $ 1,918 $ 5,747 $ (4,214 ) $ 1,533 Non-compete and other 4 2,000 (2,000 ) — 2,000 (2,000 ) — Employment agreement 3 195 (195 ) — 195 (195 ) — Intangibles subject to amortization 8,642 (6,724 ) 1,918 7,942 (6,409 ) 1,533 Trade Name Indefinite 2,254 — 2,254 454 — 454 $ 10,896 $ (6,724 ) $ 4,172 $ 8,396 $ (6,409 ) $ 1,987 Goodwill Indefinite $ 8,881 $ — $ 8,881 $ 4,620 $ — $ 4,620 |
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 2017 (three months remaining) $ 118 2018 455 2019 455 2020 448 2021 70 Thereafter 372 Total $ 1,918 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Cost Method Investments [Abstract] | |
Schedule of Equity Method and Cost Method Investments | The following table shows the carrying value of the Company's investments in the privately held companies, categorized by type of investment: in thousands March 31, 2017 June 30, 2016 Equity method investment $ 7,446 $ 7,373 Cost method investment 500 500 $ 7,946 $ 7,873 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Accounts Payable, Current [Abstract] | |
Accounts payable | Accounts payable consists of the following: in thousands March 31, 2017 June 30, 2016 Trade payable to customers $ 692 $ 603 Advances from customers 39,014 36,369 Liability on deferred revenue 2,661 6,546 Due to brokers — 1,250 Other accounts payable 1,784 2,001 $ 44,151 $ 46,769 |
Derivative Instrument and Hed37
Derivative Instrument and Hedging Transactions (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Assets | 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 March 31, 2017 and June 30, 2016 . March 31, 2017 June 30, 2016 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 $ 19,353 $ (14,716 ) $ — $ 4,637 $ 37,378 $ (5,031 ) $ — $ 32,347 Forward contracts 1 — — 1 1,385 — — 1,385 $ 19,354 $ (14,716 ) $ — $ 4,638 $ 38,763 $ (5,031 ) $ — $ 33,732 Nettable derivative liabilities: Open sale and purchase commitments $ 758 $ (496 ) $ — $ 262 $ 2,938 $ (1,019 ) $ — $ 1,919 Margin accounts 9,084 — (3,609 ) 5,475 12,439 — (4,257 ) 8,182 Future contracts 4,532 — — 4,532 13,914 — — 13,914 Forward contracts 5,985 (409 ) — 5,576 14,579 (2,140 ) — 12,439 $ 20,359 $ (905 ) $ (3,609 ) $ 15,845 $ 43,870 $ (3,159 ) $ (4,257 ) $ 36,454 |
Offsetting 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 March 31, 2017 and June 30, 2016 . March 31, 2017 June 30, 2016 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 $ 19,353 $ (14,716 ) $ — $ 4,637 $ 37,378 $ (5,031 ) $ — $ 32,347 Forward contracts 1 — — 1 1,385 — — 1,385 $ 19,354 $ (14,716 ) $ — $ 4,638 $ 38,763 $ (5,031 ) $ — $ 33,732 Nettable derivative liabilities: Open sale and purchase commitments $ 758 $ (496 ) $ — $ 262 $ 2,938 $ (1,019 ) $ — $ 1,919 Margin accounts 9,084 — (3,609 ) 5,475 12,439 — (4,257 ) 8,182 Future contracts 4,532 — — 4,532 13,914 — — 13,914 Forward contracts 5,985 (409 ) — 5,576 14,579 (2,140 ) — 12,439 $ 20,359 $ (905 ) $ (3,609 ) $ 15,845 $ 43,870 $ (3,159 ) $ (4,257 ) $ 36,454 |
Summary of net gains (losses) on derivative instruments | Below, is a summary of the net gains (losses) on derivative instruments for the three and nine months ended March 31, 2017 and 2016 . in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Gains (losses) on derivative instruments: Unrealized (losses) gains on open future commodity and forward contracts and open sale and purchase commitments, net $ 23,592 $ (5,262 ) $ (11,241 ) $ (8,482 ) Realized gains (losses) on future commodity contracts, net (193 ) 7,992 15,631 (5,796 ) $ 23,399 $ 2,730 $ 4,390 $ (14,278 ) |
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 March 31, 2017 and at June 30, 2016 . in thousands March 31, 2017 June 30, 2016 Inventory $ 345,531 $ 245,057 Less unhedgable inventory: Commemorative coin inventory, held at lower of cost or market (41 ) (16 ) Premium on metals position (4,747 ) (4,627 ) Inventory value not hedged (4,788 ) (4,643 ) Subtotal 340,743 240,414 Commitments at market: Open inventory purchase commitments 629,212 550,810 Open inventory sales commitments (158,554 ) (237,325 ) Margin sale commitments (9,084 ) (12,439 ) In-transit inventory no longer subject to market risk (2,819 ) (7,363 ) Unhedgable premiums on open commitment positions 203 400 Inventory borrowed from suppliers (6,437 ) (4,352 ) Product financing arrangements (156,450 ) (59,358 ) Advances on industrial metals 2,231 4,521 Inventory subject to price risk 639,045 475,308 Inventory subject to derivative financial instruments: Precious metals forward contracts at market values 391,967 188,530 Precious metals futures contracts at market values 245,406 286,449 Total market value of derivative financial instruments 637,373 474,979 Net inventory subject to commodity price risk $ 1,672 $ 329 |
Schedule of outstanding commitments | As of March 31, 2017 and June 30, 2016 , the Company had the following outstanding commitments and open forward and future contracts: in thousands March 31, 2017 June 30, 2016 Purchase commitments $ 629,212 $ 550,810 Sales commitments (158,554 ) (237,325 ) Margin sales commitments (9,084 ) (12,439 ) Open forward contracts 391,967 188,530 Open futures contracts 245,406 286,449 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | 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 nine months ended March 31, 2017 and 2016 consists of the following: in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Provision for income taxes $ 833 $ 894 $ 3,482 $ 5,226 |
Schedule of effective income tax rate | The effective tax rate for the three and nine months ended March 31, 2017 and 2016 is as follows: in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Effective tax rate 39.0 % 42.8 % 36.8 % 38.9 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | During the three and nine months ended March 31, 2017 and 2016 , the Company made sales and purchases to various companies, which have been deemed to be related parties. in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Sales Purchases Sales Purchases Sales Purchases Sales Purchases Former Parent $ 16,410 $ 15,105 $ 6,695 $ 1,242 $ 38,077 $ 38,441 $ 25,595 $ 31,810 Equity method investee 126,354 — 154,848 1,170 392,890 812 558,804 5,595 Silvertowne L.P. 5,156 1,210 167 1,712 23,975 3,952 3,858 26,284 $ 147,920 $ 16,315 $ 161,710 $ 4,124 $ 454,942 $ 43,205 $ 588,257 $ 63,689 Balances with Affiliated Companies As of March 31, 2017 and June 30, 2016 , the Company had related party receivables and payables balances as set forth below: in thousands March 31, 2017 June 30, 2016 Receivables Payable Receivables Payable Former Parent $ 7,853 $ — $ 1,913 $ 138 Equity method investee 1,469 — 2,396 — Silvertowne L.P. — (1,872 ) (1) — 282 $ 9,322 $ (1,872 ) $ 4,309 $ 420 _________________________________ 1) Includes a short-term earn-out liability of $0.2 million (recorded in accrued liabilities) and a payable of $0.5 million (recorded as short-term notes payable), and a long-term earn-out liability $1.1 million (recorded in other long-term liabilities). During the three and nine months ended March 31, 2017 and 2016 , the Company earned interest income related to loans made to Former Parent and related to financing products sold to affiliated companies, as set forth below: in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Interest income from loan receivables $ 118 $ 16 $ 150 $ 48 Interest income from finance products 777 577 2,132 1,725 $ 895 $ 593 $ 2,282 $ 1,773 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Dividends Declared | The table below summarizes the eight of the most recent quarterly dividends declared pursuant to this policy: Dividend Record Date (at close of Business) Type of Dividend Basis of Payment Payment Date 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 February 2, 2016 February 15, 2016 Cash $ 0.07 per common share February 29, 2016 April 29, 2016 May 13, 2016 Cash $ 0.07 per common share May 27, 2016 September 7, 2016 September 19, 2016 Cash $ 0.07 per common share October 7, 2016 November 1, 2016 November 14, 2016 Cash $ 0.07 per common share December 1, 2016 January 26, 2017 February 8, 2017 Cash $ 0.08 per common share February 24, 2017 |
Schedule of share-based compensation, stock option activity | The following table summarizes the stock option activity for the nine months ended March 31, 2017 . 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, 2016 581,527 $ 17.55 $ 1,466 $ 6.32 Granted 168,000 $ 19.17 Cancellations, expirations and forfeitures (7,700 ) $ 19.94 Outstanding at March 31, 2017 741,827 $ 17.90 $ 1,675 $ 6.19 Exercisable at March 31, 2017 208,155 $ 10.07 $ 1,459 $ 5.94 |
Schedule of share-based compensation, status of stock option outstanding | Following is a summary of the status of stock options outstanding at March 31, 2017 : 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 5.60 $ 8.39 110,267 5.61 $ 8.40 10.01 15.00 98,888 5.53 $ 11.94 97,888 5.51 $ 11.96 15.01 25.00 408,700 9.20 $ 20.60 — 0.00 — 25.01 60.00 100,000 8.90 $ 25.50 — 0.00 — 741,827 8.02 $ 17.90 208,155 5.56 $ 10.07 |
Customer and Supplier Concent41
Customer and Supplier Concentrations (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
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 nine months ended March 31, 2017 are presented on a comparative basis in the table below: in thousands Three Months Ended Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Amount Percent Amount Percent Amount Percent Amount Percent Total revenue $ 1,730,845 100.0 % $ 1,512,750 100.0 % $ 5,662,859 100.0 % $ 5,048,829 100.0 % Customer concentrations HSBC Bank USA $ 293,686 17.0 % $ 245,022 16.2 % $ 1,268,160 22.4 % $ 860,048 17.0 % Mitsubishi Intl. Corp. 322,842 18.6 140,624 9.3 827,583 14.6 358,599 7.1 $ 616,528 35.6 % $ 385,646 25.5 % $ 2,095,743 37.0 % $ 1,218,647 24.1 % Customers providing 10 percent or more of the Company's accounts receivable as of March 31, 2017 are presented on a comparative basis in the table below: in thousands March 31, 2017 June 30, 2016 Amount Percent Amount Percent Total accounts receivable, net $ 42,863 100.0 % $ 43,302 100.0 % Customer concentrations Customer A $ 7,660 17.9 % $ 1,336 3.1 % Customer B 6,170 14.4 5,256 12.1 $ 13,830 32.3 % $ 6,592 15.2 % |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
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 Nine Months Ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Revenue by geographic region: United States $ 1,579,302 $ 1,367,127 $ 5,298,549 $ 4,623,259 Europe 100,731 62,623 204,316 157,371 North America, excluding United States 49,154 72,092 149,204 232,737 Asia Pacific 596 10,020 7,170 32,285 Africa — — — 63 Australia 1,062 888 3,620 3,082 South America — — — 32 Total revenue $ 1,730,845 $ 1,512,750 $ 5,662,859 $ 5,048,829 in thousands March 31, 2017 June 30, 2016 Inventories by geographic region: United States $ 329,824 $ 224,617 Europe 7,688 5,258 North America, excluding United States 7,689 12,691 Asia 330 2,491 Total inventories $ 345,531 $ 245,057 in thousands March 31, 2017 June 30, 2016 Assets by geographic region: United States $ 504,956 $ 413,621 Europe 10,030 8,344 North America, excluding United States 7,689 12,691 Asia 330 2,491 Total assets $ 523,005 $ 437,147 in thousands March 31, 2017 June 30, 2016 Long-term assets by geographic region: United States $ 28,205 $ 18,824 Europe 57 62 Total long-term assets $ 28,262 $ 18,886 |
Description of Business - Joint
Description of Business - Joint Venture and Acquisition (Details) - USD ($) | Aug. 31, 2016 | Aug. 31, 2017 | Mar. 31, 2017 | Jun. 30, 2016 |
Contingent Consideration Liability | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration, adjusted balance | $ 1,325,000 | $ 0 | ||
Silvertowne L.P. | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire interest in JV | $ 3,453,750 | |||
A-MARK PRECIOUS METALS, INC | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire interest in JV | 3,721,250 | |||
Scenario, Forecast | Silvertowne L.P. | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage (percentage) | 45.00% | |||
Scenario, Forecast | A-MARK PRECIOUS METALS, INC | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire interest in JV | $ 500,000 | |||
Ownership percentage (percentage) | 55.00% | |||
SilverTowne Mint | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire assets | 3,171,250 | |||
Working capital acquired | 300,000 | |||
Purchase price | 3,671,250 | |||
Payment towards the acquisition | $ 3,171,250 | |||
Earn-out Period (years) | 3 years | |||
Contingent liability | $ 1,000,000 | |||
Fair value of the assets acquired | 7,675,000 | |||
Contingent earn-out consideration | $ 1,523,000 | |||
SilverTowne Mint | AM&ST Associates, LLC | ||||
Business Acquisition [Line Items] | ||||
Asset contributed (percentage) | 48.47% | |||
Remaining assets purchased (percentage) | 51.53% | |||
Land and Building | SilverTowne Mint | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire assets | $ 250,000 | |||
Asahi Refining USA, Inc | ||||
Business Acquisition [Line Items] | ||||
Option to purchase investment | 10.00% | |||
Commercial Paper | SilverTowne Mint | ||||
Business Acquisition [Line Items] | ||||
Liabilities incurred for the acquisition | $ 500,000 | |||
Debt instrument, term (years) | 1 year |
Description of Business - Purch
Description of Business - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 |
Intangibles assets (identifiable): | |||
Excess of cost over fair value of assets acquired | $ 8,881 | $ 4,620 | |
SilverTowne Mint | |||
Business Acquisition [Line Items] | |||
Cash | $ 300 | ||
Plant equipment | 1,802 | ||
Building | 299 | ||
Land | 36 | ||
Intangibles assets (identifiable): | |||
Trade name | 1,800 | ||
Existing customer relationships | 700 | ||
Excess of cost over fair value of assets acquired | 2,738 | ||
Subtotal | 7,675 | ||
Contingent earn-out consideration | 1,523 | ||
Total Consideration | $ 9,198 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)Segment | Mar. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Advertising expense | $ 176 | $ 137 | $ 542 | $ 463 |
Shipping, handling costs | $ 1,100 | $ 1,500 | $ 3,300 | $ 5,600 |
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 | 25 years | |||
Estimated useful lives of intangibles | 15 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Earnings per Share) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Accounting Policies [Abstract] | ||||
Basic weighted average shares outstanding (shares) | 7,023,300 | 6,983,400 | 7,028,700 | 6,976,800 |
Effect of common stock equivalents — stock issuable under outstanding equity awards (shares) | 107,000 | 163,000 | 93,000 | 135,000 |
Diluted weighted average shares outstanding (shares) | 7,129,500 | 7,146,100 | 7,121,500 | 7,111,900 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Contingent Consideration) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Revaluation adjustments | $ 198 | $ 0 |
Contingent Consideration Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at June 30, 2016 | 0 | |
Initial valuation | 1,523 | |
Revaluation adjustments | (198) | |
Balance at March 31, 2017 | $ 1,325 |
Assets and Liabilities, at Fa48
Assets and Liabilities, at Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Financial assets: | ||
Derivative assets | $ 4,638 | $ 33,732 |
Financial liabilities: | ||
Liability on borrowed metals | 6,437 | 4,352 |
Product financing arrangements | 156,450 | 59,358 |
Derivative liabilities | 15,845 | 36,454 |
Accrued liabilities | 5,602 | 7,660 |
Other long-term liabilities | 1,117 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash | 6,440 | 17,142 |
Receivables, net | 42,863 | 43,302 |
Secured loans receivable | 92,676 | 70,504 |
Income tax receivables | 1,247 | 7,318 |
Financial liabilities: | ||
Lines of credit | 213,000 | 212,000 |
Liability on borrowed metals | 6,437 | 4,352 |
Product financing arrangements | 156,450 | 59,358 |
Accounts payable | 44,151 | 46,769 |
Accrued liabilities | 5,602 | 7,660 |
Income taxes payable | 6,038 | 0 |
Fair value | ||
Financial assets: | ||
Cash | 6,440 | 17,142 |
Receivables, net | 42,863 | 43,302 |
Secured loans receivable | 92,676 | 70,504 |
Income tax receivables | 1,247 | 7,318 |
Financial liabilities: | ||
Lines of credit | 213,000 | 212,000 |
Liability on borrowed metals | 6,437 | 4,352 |
Product financing arrangements | 156,450 | 59,358 |
Accounts payable | 44,151 | 46,769 |
Accrued liabilities | 5,602 | 7,660 |
Other long-term liabilities | 1,117 | 0 |
Income taxes payable | 6,038 | 0 |
Liability on margin accounts | Carrying Amount | ||
Financial liabilities: | ||
Derivative liabilities | 5,475 | 8,182 |
Liability on margin accounts | Fair value | ||
Financial liabilities: | ||
Derivative liabilities | 5,475 | 8,182 |
Open sale and purchase commitments | Carrying Amount | ||
Financial liabilities: | ||
Derivative liabilities | 262 | 1,919 |
Open sale and purchase commitments | Fair value | ||
Financial liabilities: | ||
Derivative liabilities | 262 | 1,919 |
Future contracts | Carrying Amount | ||
Financial liabilities: | ||
Derivative liabilities | 4,532 | 13,914 |
Future contracts | Fair value | ||
Financial liabilities: | ||
Derivative liabilities | 4,532 | 13,914 |
Forward contracts | Carrying Amount | ||
Financial liabilities: | ||
Derivative liabilities | 5,576 | 12,439 |
Forward contracts | Fair value | ||
Financial liabilities: | ||
Derivative liabilities | 5,576 | 12,439 |
Open sale and purchase commitments | Carrying Amount | ||
Financial assets: | ||
Derivative assets | 4,637 | 32,347 |
Open sale and purchase commitments | Fair value | ||
Financial assets: | ||
Derivative assets | 4,637 | 32,347 |
Forward contracts | Carrying Amount | ||
Financial assets: | ||
Derivative assets | 1 | 1,385 |
Forward contracts | Fair value | ||
Financial assets: | ||
Derivative assets | 1 | 1,385 |
Former Parent | Carrying Amount | ||
Financial assets: | ||
Income tax receivables | 0 | 203 |
Former Parent | Fair value | ||
Financial assets: | ||
Income tax receivables | 0 | 203 |
Related Party, Notes Payable | Carrying Amount | ||
Financial liabilities: | ||
Note payable - related party | 500 | 0 |
Related Party, Notes Payable | Fair value | ||
Financial liabilities: | ||
Note payable - related party | $ 500 | $ 0 |
Assets and Liabilities, at Fa49
Assets and Liabilities, at Fair Value (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - future and forward contracts | $ 19,354 | $ 38,763 |
Derivative liabilities | 15,845 | 36,454 |
Commemorative coins, held at lower of cost or market | 41 | 16 |
Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory | 345,490 | 245,041 |
Total assets valued at fair value | 350,128 | 278,773 |
Liability on borrowed metals | 6,437 | 4,352 |
Product financing arrangement | 156,450 | 59,358 |
Contingent earn-out consideration | 1,325 | |
Total liabilities, valued at fair value | 180,057 | 100,164 |
Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory | 345,490 | 245,041 |
Total assets valued at fair value | 350,128 | 278,773 |
Liability on borrowed metals | 6,437 | 4,352 |
Product financing arrangement | 156,450 | 59,358 |
Contingent earn-out consideration | 0 | |
Total liabilities, valued at fair value | 178,732 | 100,164 |
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 |
Contingent earn-out consideration | 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 |
Contingent earn-out consideration | 1,325 | |
Total liabilities, valued at fair value | 1,325 | 0 |
Liability on margin accounts | Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 5,475 | 8,182 |
Liability on margin accounts | Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 5,475 | 8,182 |
Liability on margin accounts | 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 |
Liability on margin accounts | 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 |
Open sale and purchase commitments | Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 262 | 1,919 |
Open sale 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 | 262 | 1,919 |
Open sale 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 sale 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 |
Future contracts | Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 4,532 | 13,914 |
Future contracts | Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 4,532 | 13,914 |
Future contracts | 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 |
Future contracts | 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 |
Forward contracts | Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 5,576 | 12,439 |
Forward contracts | Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 5,576 | 12,439 |
Forward contracts | 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 |
Forward contracts | 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 |
Open sale and purchase 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 | 4,637 | 32,347 |
Open sale 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 assets - future and forward contracts | 4,637 | 32,347 |
Open sale 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 assets - future and forward contracts | 0 | 0 |
Open sale 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 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 | 1 | 1,385 |
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 | 1 | 1,385 |
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 |
Assets and Liabilities, at Fa50
Assets and Liabilities, at Fair Value (Narrative) (Details) $ in Thousands | Mar. 31, 2017USD ($)investment | Jun. 30, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of investments | investment | 2 | |
Equity and cost method investment | $ 7,946 | $ 7,873 |
Contingent Consideration Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, adjusted balance | $ 1,325 | $ 0 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | $ 42,893 | $ 43,332 | ||
Less: allowance for doubtful accounts | $ (30) | $ (30) | (30) | (30) |
Receivables, net | 42,863 | 43,302 | ||
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 | 7,073 | 4,001 | ||
Wholesale trade advances | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | 17,501 | 11,860 | ||
Due from brokers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | $ 18,319 | $ 27,471 |
Secured Loans Receivable (Summa
Secured Loans Receivable (Summary of Carrying-value of Secured Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | $ 92,676 | $ 70,504 |
Unamortized loan commitment and origination fees and unamortized discounts or premiums | 72 | 86 |
Secured loans originated by company and with related party [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | 34,358 | 37,650 |
Secured loans originated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | 26,394 | 36,280 |
Secured loans originated - with a related party | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | 7,964 | 1,370 |
Secured loans acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | $ 58,318 | $ 32,854 |
Secured Loans Receivable (Loans
Secured Loans Receivable (Loans Receivable and Credit Quality Indicators) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 92,676 | $ 70,504 |
Secured loan, percentage | 100.00% | 100.00% |
Secured loans (current) | $ 92,676 | $ 70,004 |
Credit quality indicator Loan-to-value threshold percentage | 75.00% | |
Bullion and Numismatic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 92,676 | $ 69,804 |
Secured loan, percentage | 100.00% | 99.00% |
Secured loans (current) | $ 92,676 | $ 69,804 |
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) | $ 23,571 | $ 10,231 |
Secured loans (current), percentage | 25.40% | 14.70% |
Bullion and Numismatic | Loan-to-value of less than 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current) | $ 69,105 | $ 59,573 |
Secured loans (current), percentage | 74.60% | 85.30% |
Bullion | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 59,802 | $ 35,168 |
Secured loan, percentage | 64.50% | 49.90% |
Numismatic and semi numismatic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 32,874 | $ 34,636 |
Secured loan, percentage | 35.50% | 49.10% |
Other pledged assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 0 | $ 700 |
Secured loan, percentage | 0.00% | 1.00% |
Secured Loans Receivable (Narra
Secured Loans Receivable (Narrative) (Details) | 9 Months Ended | ||
Mar. 31, 2017classloan | Mar. 31, 2016 | Jun. 30, 2016loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable average effective rate of interest (percentage) | 9.10% | 8.70% | |
Classes of receivables | class | 3 | ||
Loans receivable payment terms for interest | 30 days | ||
Delinquent period | 30 days | ||
Loan receivable liquidation period post default | 90 days | ||
Credit quality indicator Loan-to-value threshold percentage | 75.00% | ||
Number of loans | loan | 0 | 0 | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans-to-value percentage | 100.00% | 100.00% |
Inventories (Summary of Invento
Inventories (Summary of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Inventory [Line Items] | ||
Inventories | $ 189,081 | $ 185,699 |
Product financing arrangement, restricted | 156,450 | 59,358 |
Restricted and Nonrestricted Inventory, Net | 345,531 | 245,057 |
Inventory held for sale | ||
Inventory [Line Items] | ||
Inventories | 49,715 | 81,006 |
Repurchase arrangements with customers | ||
Inventory [Line Items] | ||
Inventories | 126,057 | 92,283 |
Consignment arrangements with customers | ||
Inventory [Line Items] | ||
Inventories | 6,831 | 8,042 |
Commemorative coins, held at lower of cost or market | ||
Inventory [Line Items] | ||
Inventories | 41 | 16 |
Borrowed precious metals from suppliers | ||
Inventory [Line Items] | ||
Inventories | 6,437 | 4,352 |
Product financing arrangement, restricted | ||
Inventory [Line Items] | ||
Product financing arrangement, restricted | $ 156,450 | $ 59,358 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2016 | |
Inventory [Line Items] | ||
Inventories | $ 189,081 | $ 185,699 |
Repurchase arrangements with customers | 126,100 | 92,300 |
Consignment arrangements with customers | 6,800 | 8,000 |
Commemorative coins, held at lower of cost or market | 41 | 16 |
Borrowed precious metals from suppliers | 6,400 | 4,400 |
Product financing arrangement, restricted | 156,500 | 59,400 |
Unrealized gains (losses) included in inventory balance | 6,700 | 12,700 |
Premium on metals position | 4,747 | 4,627 |
Inventory held for sale | ||
Inventory [Line Items] | ||
Inventories | $ 49,715 | $ 81,006 |
Plant, Property and Equipment57
Plant, Property and Equipment (Summary of PPE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation | $ 305 | $ 209 | $ 805 | $ 624 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 9,696 | 9,696 | $ 5,561 | ||
Less: accumulated depreciation | (3,848) | (3,848) | (3,043) | ||
Plant, property and equipment, net | 6,746 | 6,746 | 3,482 | ||
Office furniture, and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,824 | 1,824 | 1,107 | ||
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 435 | 435 | 407 | ||
Computer software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,386 | 2,386 | 2,386 | ||
Plant equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,935 | 1,935 | 0 | ||
Building | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 315 | 315 | 0 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,801 | 2,801 | 1,661 | ||
Property and equipment not placed in service | |||||
Property, Plant and Equipment [Line Items] | |||||
Plant, property and equipment, net | 862 | 862 | 964 | ||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Plant, property and equipment, net | $ 36 | $ 36 | $ 0 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross carrying amount - finite lived intangible | $ 10,896 | $ 8,396 |
Accumulated Amortization | (6,724) | (6,409) |
Net book value - finite lived intangible | 4,172 | 1,987 |
Goodwill | $ 8,881 | 4,620 |
Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years | |
Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | |
Existing customer relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross carrying amount - finite lived intangible | $ 6,447 | 5,747 |
Accumulated Amortization | (4,529) | (4,214) |
Net book value - finite lived intangible | $ 1,918 | 1,533 |
Existing customer relationships | Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 5 years | |
Existing customer relationships | Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | |
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 |
Accumulated Amortization | (2,000) | (2,000) |
Net book value - finite lived intangible | $ 0 | 0 |
Employment agreement | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years | |
Gross carrying amount - finite lived intangible | $ 195 | 195 |
Accumulated Amortization | (195) | (195) |
Net book value - finite lived intangible | 0 | 0 |
Intangibles subject to amortization | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross carrying amount - finite lived intangible | 8,642 | 7,942 |
Accumulated Amortization | (6,724) | (6,409) |
Net book value - finite lived intangible | 1,918 | 1,533 |
Trade Name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross carrying amount - indefinite lived intangible | $ 2,254 | $ 454 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2017 (three months remaining) | $ 118 |
2,018 | 455 |
2,019 | 455 |
2,020 | 448 |
2,021 | 70 |
Thereafter | 372 |
Total | $ 1,918 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2012 | Jul. 01, 2005 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization expense related to intangible assets | $ 108 | $ 96 | $ 315 | $ 287 | |||
SilverTowne Mint | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangibles acquired | $ 2,500 | ||||||
Goodwill acquired | $ 4,300 | ||||||
Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful lives of intangibles | 3 years | ||||||
Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful lives of intangibles | 15 years | ||||||
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% |
Long-Term Investments (Details)
Long-Term Investments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017USD ($)investment | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)investment | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |
Equity Method Investments and Cost Method Investments [Abstract] | |||||
Number of investments | investment | 2 | 2 | |||
Equity method investment | $ 7,446 | $ 7,446 | $ 7,373 | ||
Cost method investment | 500 | 500 | 500 | ||
Equity and cost method investment | $ 7,946 | $ 7,946 | $ 7,873 | ||
Ownership percentage, 2nd investment | 20.20% | 20.20% | |||
Income (loss) from equity method investment | $ (6) | $ 107 | $ 73 | $ 613 | |
Ownership percentage, 1st investment | 2.50% | 2.50% | 2.50% |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Accounts Payable, Current [Abstract] | ||
Trade payable to customers | $ 692 | $ 603 |
Advances from customers | 39,014 | 36,369 |
Liability on deferred revenue | 2,661 | 6,546 |
Due to brokers | 0 | 1,250 |
Other accounts payable | 1,784 | 2,001 |
Accounts payable | $ 44,151 | $ 46,769 |
Derivative Instrument and Hed63
Derivative Instrument and Hedging Transactions (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Nettable derivative assets: | ||
Gross derivative receivable | $ 19,354 | $ 38,763 |
Amounts Netted | (14,716) | (5,031) |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 4,638 | 33,732 |
Nettable derivative liabilities: | ||
Gross derivative payable | 20,359 | 43,870 |
Amounts Netted | (905) | (3,159) |
Cash Collateral Pledge | (3,609) | (4,257) |
Net derivative payables | 15,845 | 36,454 |
Open sale and purchase commitments | ||
Nettable derivative assets: | ||
Gross derivative receivable | 19,353 | 37,378 |
Amounts Netted | (14,716) | (5,031) |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 4,637 | 32,347 |
Nettable derivative liabilities: | ||
Gross derivative payable | 758 | 2,938 |
Amounts Netted | (496) | (1,019) |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | 262 | 1,919 |
Margin accounts | ||
Nettable derivative liabilities: | ||
Gross derivative payable | 9,084 | 12,439 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | (3,609) | (4,257) |
Net derivative payables | 5,475 | 8,182 |
Future contracts | ||
Nettable derivative liabilities: | ||
Gross derivative payable | 4,532 | 13,914 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | 4,532 | 13,914 |
Forward contracts | ||
Nettable derivative assets: | ||
Gross derivative receivable | 1 | 1,385 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 1 | 1,385 |
Nettable derivative liabilities: | ||
Gross derivative payable | 5,985 | 14,579 |
Amounts Netted | (409) | (2,140) |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | $ 5,576 | $ 12,439 |
Derivative Instrument and Hed64
Derivative Instrument and Hedging Transactions (Realized Gain (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Unrealized (losses) gains on open future commodity and forward contracts and open sale and purchase commitments, net | $ 23,592 | $ (5,262) | $ (11,241) | $ (8,482) |
Realized gains (losses) on future commodity contracts, net | (193) | 7,992 | 15,631 | (5,796) |
Gains (losses) on derivative instruments: | $ 23,399 | $ 2,730 | $ 4,390 | $ (14,278) |
Derivative Instrument and Hed65
Derivative Instrument and Hedging Transactions (Hedging of Precious Metals Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Derivatives, Fair Value [Line Items] | ||
Inventory | $ 345,531 | $ 245,057 |
Commemorative coin inventory, held at lower of cost or market | (41) | (16) |
Premium on metals position | (4,747) | (4,627) |
Inventory value not hedged | (4,788) | (4,643) |
Subtotal | 340,743 | 240,414 |
Commitments at market: | ||
Open inventory purchase commitments | 629,212 | 550,810 |
Open inventory sales commitments | (158,554) | (237,325) |
Margin sale commitments | (9,084) | (12,439) |
In-transit inventory no longer subject to market risk | (2,819) | (7,363) |
Unhedgable premiums on open commitment positions | 203 | 400 |
Inventory borrowed from suppliers | (6,437) | (4,352) |
Product financing arrangements | (156,450) | (59,358) |
Advances on industrial metals | 2,231 | 4,521 |
Inventory subject to price risk | 639,045 | 475,308 |
Inventory subject to derivative financial instruments: | ||
Market value of derivative financial instruments | 637,373 | 474,979 |
Net inventory subject to commodity price risk | 1,672 | 329 |
Precious metals forward contracts at market values | ||
Inventory subject to derivative financial instruments: | ||
Market value of derivative financial instruments | 391,967 | 188,530 |
Precious metals futures contracts at market values | ||
Inventory subject to derivative financial instruments: | ||
Market value of derivative financial instruments | $ 245,406 | $ 286,449 |
Derivative Instrument and Hed66
Derivative Instrument and Hedging Transactions (Outstanding Commitments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Derivative [Line Items] | ||
Purchase commitments | $ 629,212 | $ 550,810 |
Sales commitments | (158,554) | (237,325) |
Margin sales commitments | (9,084) | (12,439) |
Open derivative contracts | 637,373 | 474,979 |
Forward contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | 391,967 | 188,530 |
Future contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | $ 245,406 | $ 286,449 |
Derivative Instrument and Hed67
Derivative Instrument and Hedging Transactions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Derivative [Line Items] | |||||
Derivative open positions expected settlement period | 30 days | ||||
Unrealized (loss) gain on foreign exchange | $ 21 | $ (102) | $ 12 | $ 9 | |
Forward contracts | |||||
Derivative [Line Items] | |||||
Open inventory sale commitments | 1,700 | 1,700 | $ 2,000 | ||
Open sale and purchase commitments | |||||
Derivative [Line Items] | |||||
Open inventory sale commitments | $ 3,600 | $ 3,600 | $ 4,400 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 833 | $ 894 | $ 3,482 | $ 5,226 |
Effective tax rate (percentage) | 39.00% | 42.80% | 36.80% | 38.90% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Operating Loss Carryforwards [Line Items] | ||
Income taxes receivable from Former Parent | $ 0 | $ 203 |
Income taxes receivable | 1,247 | 7,318 |
Income taxes payable | 6,038 | 0 |
Deferred tax assets | 517 | 424 |
Deferred tax liabilities | 1,679 | 7,245 |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 11,300 | 16,600 |
Operating loss carryforward, tax effected | 600 | 900 |
Valuation allowance | $ (44) | $ (44) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | Feb. 28, 2015 | |
Related Party Transaction [Line Items] | ||||||
Sales | $ 147,920 | $ 161,710 | $ 454,942 | $ 588,257 | ||
Purchases | 16,315 | 4,124 | 43,205 | 63,689 | ||
Receivable | 9,322 | 9,322 | $ 4,309 | |||
Payables | 1,872 | 1,872 | 420 | |||
Income (loss) from equity method investment | (6) | 107 | 73 | 613 | ||
Equity method investment | 7,446 | 7,446 | 7,373 | |||
Income taxes receivable from Former Parent | 0 | 0 | 203 | |||
Former Parent | ||||||
Related Party Transaction [Line Items] | ||||||
Sales | 16,410 | 6,695 | 38,077 | 25,595 | ||
Purchases | 15,105 | 1,242 | 38,441 | 31,810 | ||
Receivable | 7,853 | 7,853 | 1,913 | |||
Payables | 0 | 0 | 138 | |||
Former Parent | July 23, 2015 Loan Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Short term loan receivable | 8,000 | 8,000 | 1,400 | |||
Equity method investee | ||||||
Related Party Transaction [Line Items] | ||||||
Sales | 126,354 | 154,848 | 392,890 | 558,804 | ||
Purchases | 0 | 1,170 | 812 | 5,595 | ||
Receivable | 1,469 | 1,469 | 2,396 | |||
Payables | 0 | 0 | 0 | |||
Silvertowne L.P. | ||||||
Related Party Transaction [Line Items] | ||||||
Sales | 5,156 | 167 | 23,975 | 3,858 | ||
Purchases | 1,210 | 1,712 | 3,952 | 26,284 | ||
Receivable | 0 | 0 | 0 | |||
Payables | 1,872 | 1,872 | $ 282 | |||
Short term earn out liability | 200 | 200 | ||||
Short term notes payable | 500 | 500 | ||||
Long term earn out liability | 1,100 | 1,100 | ||||
Affiliated entities | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income | 895 | 593 | 2,282 | 1,773 | ||
Affiliated entities | Interest Income from Loan Receivable | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income | 118 | 16 | 150 | 48 | ||
Affiliated entities | Interest Income from Finance Products | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income | $ 777 | $ 577 | $ 2,132 | $ 1,725 | ||
W.A.Richardson Builders, LLC (WAR) | ||||||
Related Party Transaction [Line Items] | ||||||
Contractual obligation | $ 1,500 | |||||
Fees payable, percentage | 5.00% |
Financing Agreements (Details)
Financing Agreements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Schedule Of Financing Arrangements [Line Items] | |||||
Liability on borrowed metals | $ 6,437,000 | $ 6,437,000 | $ 4,352,000 | ||
Product financing obligation | 156,450,000 | 156,450,000 | 59,358,000 | ||
Line of Credit | Trading credit facility | |||||
Schedule Of Financing Arrangements [Line Items] | |||||
Interest expense, notes payable | $ 1,700,000 | $ 1,300,000 | $ 4,800,000 | $ 3,600,000 | |
Percentage of total expense recognized | 64.50% | 76.70% | 64.30% | 84.40% | |
Effective rate of interest | 3.22% | 2.82% | 3.08% | 2.79% | |
Line of Credit | Trading credit facility | A-Mark | Trading credit facility | |||||
Schedule Of Financing Arrangements [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 275,000,000 | $ 275,000,000 | |||
Line of credit, current borrowing capacity | 225,000,000 | 225,000,000 | |||
Line of credit, accordion option | 50,000,000 | 50,000,000 | |||
Payments of financing costs | 900,000 | ||||
Accumulated amortization of loan cost | $ 100,000 | $ 100,000 | $ 600,000 | ||
Variable rate basis | one-month LIBOR | ||||
Credit facility, interest rate at period end | 0.98% | 0.98% | 0.47% | ||
Borrowings due on demand | $ 213,000,000 | $ 213,000,000 | $ 212,000,000 | ||
Credit facility, remaining borrowing capacity | $ 23,100,000 | 23,100,000 | $ 17,800,000 | ||
Credit facility, minimum required tangible net worth | $ 38,900,000 | ||||
LIBOR | Line of Credit | Revolving Credit Facility | |||||
Schedule Of Financing Arrangements [Line Items] | |||||
Variable rate | 2.50% | ||||
LIBOR | Line of Credit | Bridge Loan | |||||
Schedule Of Financing Arrangements [Line Items] | |||||
Variable rate | 4.50% |
Commitments, Contingencies an72
Commitments, Contingencies and Guarantees (Details) | 9 Months Ended |
Mar. 31, 2017ounce | |
Asahi Refining USA, Inc | |
Long-term Purchase Commitment [Line Items] | |
Operating leases, term of contract | 1 year |
Operating leases, renewal term | 1 year |
Lease fees, subject to adjustment | 6 months |
Supply Commitment | Asahi Refining USA, Inc | |
Long-term Purchase Commitment [Line Items] | |
Supply commitment, term | 3 years |
Supply commitment, renewal term | 2 years |
Price subject to adjustment, period | 6 months |
Silver Products | AM&ST Associates, LLC | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitment, period | 3 years |
Purchase commitment, renewal term | 2 years |
Minimum quantity required (in ounces) | 300,000 |
Price subject to adjustment, period | 6 months |
Guarantor Subsidiaries | Asahi Refining USA, Inc | |
Long-term Purchase Commitment [Line Items] | |
Agreement to lease (in ounces) | 100,000 |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends and Narrative) (Details) - USD ($) | May 02, 2017 | Feb. 24, 2017 | Dec. 01, 2016 | Oct. 07, 2016 | May 27, 2016 | Feb. 29, 2016 | Nov. 25, 2015 | Oct. 05, 2015 | May 25, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Dividends paid (usd per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.05 | $ 0.05 | $ 0.05 | ||||||
Dividend declared (usd per share) | $ 0.08 | ||||||||||||
Share-based compensation expense | $ 254,747 | $ 102,705 | $ 675,180 | $ 180,046 | |||||||||
Compensation expense not yet recognized | 2,500,000 | $ 2,500,000 | |||||||||||
Compensation expense not yet recognized, period for recognition | 2 years 7 months 7 days | ||||||||||||
Stock Appreciation Rights (SARs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Expiration period | 10 years | ||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share-based compensation expense | $ 0 | $ 14,804 | $ 0 | $ 44,412 | |||||||||
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 | 103,300 | 103,300 | |||||||||||
2014 Stock Award and Incentive Plan | Non Employee Director Except Chairman of the Board | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Maximum grant date fair value | $ 300,000 | ||||||||||||
2014 Stock Award and Incentive Plan | Chairman of the Board | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Maximum grant date fair value | $ 600,000 | ||||||||||||
Subsequent Event | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Dividend declared (usd per share) | $ 0.08 |
Stockholders' Equity (Option Ac
Stockholders' Equity (Option Activity Rollforward) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Options | ||
Options, beginning balance (shares) | 581,527 | |
Granted through stock option plan (shares) | 168,000 | |
Cancellations, expirations and forfeitures (shares) | (7,700) | |
Options, ending balance (shares) | 741,827 | |
Shares exercisable at end of the period | 208,155 | |
Weighted Average Exercise Price Per Share | ||
Beginning balance (in dollars per share) | $ 17.55 | |
Granted through stock option plan (in dollars per share) | 19.17 | |
Cancellations, expirations and forfeitures (usd per share) | 19.94 | |
Ending balance (in dollars per share) | 17.90 | |
Shares exercisable at end of period (in dollars per share) | $ 10.07 | |
Intrinsic value, balance | $ 1,675 | $ 1,466 |
Intrinsic Value, Shares exercisable at end of period | $ 1,459 | |
Outstanding, Weighted Average Grant Date Fair Value (in dollars per share) | $ 6.19 | $ 6.32 |
Shares exercisable at end of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 5.94 |
Stockholders' Equity (Options O
Stockholders' Equity (Options Outstanding, Range of Exercise Prices and Other Details) (Details) - $ / shares | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock options outstanding, Number of Shares Outstanding (shares) | 741,827 | 581,527 |
Stock options outstanding, Weighted Average Remaining Contractual Life | 8 years 7 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 17.90 | $ 17.55 |
Stock options exercisable, Number of Shares Exercisable (shares) | 208,155 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 5 years 6 months 22 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 10.07 | |
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 | 5 years 7 months 7 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.39 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 110,267 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 5 years 7 months 9 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.40 | |
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 | 5 years 6 months 12 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.94 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 97,888 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 5 years 6 months 3 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.96 | |
Price Range $15.01 - $25.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Ranges, lower range limit (in dollars per share) | 15.01 | |
Exercise Price Ranges, upper range limit (in dollars per share) | $ 25 | |
Stock options outstanding, Number of Shares Outstanding (shares) | 408,700 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 9 years 2 months 12 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 20.60 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 0 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 0 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 0 | |
Price Range $25.01 - 60.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Ranges, lower range limit (in dollars per share) | 25.01 | |
Exercise Price Ranges, upper range limit (in dollars per share) | $ 60 | |
Stock options outstanding, Number of Shares Outstanding (shares) | 100,000 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 8 years 10 months 23 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 25.50 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 0 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 0 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Customer and Supplier Concent76
Customer and Supplier Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Concentration Risk [Line Items] | |||||
Revenues | $ 1,730,845 | $ 1,512,750 | $ 5,662,859 | $ 5,048,829 | |
Receivables, net | $ 42,863 | $ 42,863 | $ 43,302 | ||
Revenue | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Account Receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 100.00% | 100.00% | |||
HSBC Bank USA | Revenue | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 293,686 | $ 245,022 | $ 1,268,160 | $ 860,048 | |
Concentration risk, percentage | 17.00% | 16.20% | 22.40% | 17.00% | |
Mitsubishi Intl. Corp. | Revenue | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 322,842 | $ 140,624 | $ 827,583 | $ 358,599 | |
Concentration risk, percentage | 18.60% | 9.30% | 14.60% | 7.10% | |
Customer A | Account Receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Receivables, net | $ 7,660 | $ 7,660 | $ 1,336 | ||
Concentration risk, percentage | 17.90% | 3.10% | |||
Customer B | Account Receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Receivables, net | 6,170 | $ 6,170 | $ 5,256 | ||
Concentration risk, percentage | 14.40% | 12.10% | |||
Major Customers | Revenue | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 616,528 | $ 385,646 | $ 2,095,743 | $ 1,218,647 | |
Concentration risk, percentage | 35.60% | 25.50% | 37.00% | 24.10% | |
Major Customers | Account Receivable | Customer concentrations | |||||
Concentration Risk [Line Items] | |||||
Receivables, net | $ 13,830 | $ 13,830 | $ 6,592 | ||
Concentration risk, percentage | 32.30% | 15.20% |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,730,845 | $ 1,512,750 | $ 5,662,859 | $ 5,048,829 | |
Total inventories | 345,531 | 345,531 | $ 245,057 | ||
Assets | 523,005 | 523,005 | 437,147 | ||
Long term assets | 28,262 | 28,262 | 18,886 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,579,302 | 1,367,127 | 5,298,549 | 4,623,259 | |
Total inventories | 329,824 | 329,824 | 224,617 | ||
Assets | 504,956 | 504,956 | 413,621 | ||
Long term assets | 28,205 | 28,205 | 18,824 | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 100,731 | 62,623 | 204,316 | 157,371 | |
Total inventories | 7,688 | 7,688 | 5,258 | ||
Assets | 10,030 | 10,030 | 8,344 | ||
Long term assets | 57 | 57 | 62 | ||
North America, excluding United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 49,154 | 72,092 | 149,204 | 232,737 | |
Total inventories | 7,689 | 7,689 | 12,691 | ||
Assets | 7,689 | 7,689 | 12,691 | ||
Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 596 | 10,020 | 7,170 | 32,285 | |
Africa | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 63 | |
Australia | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,062 | 888 | 3,620 | 3,082 | |
South America | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | $ 0 | 0 | $ 32 | |
Asia | |||||
Segment Reporting Information [Line Items] | |||||
Total inventories | 330 | 330 | 2,491 | ||
Assets | $ 330 | $ 330 | $ 2,491 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | May 02, 2017 | Feb. 24, 2017 |
Subsequent Event [Line Items] | ||
Dividend declared (usd per share) | $ 0.08 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividend declared (usd per share) | $ 0.08 |