Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Sep. 10, 2018 | Dec. 31, 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-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 7,031,450 | ||
Entity Public Float | $ 62,423,372 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash | $ 6,291 | $ 13,059 |
Receivables, net | 35,856 | 39,295 |
Derivative assets | 7,395 | 17,587 |
Secured loans receivable | 110,424 | 91,238 |
Precious metals held under financing arrangements | 262,566 | 0 |
Inventories: | ||
Inventories | 166,176 | 149,316 |
Restricted inventories | 113,940 | 135,343 |
Restricted and nonrestricted inventory, net | 280,116 | 284,659 |
Income taxes receivable | 1,553 | 0 |
Prepaid expenses and other assets | 2,782 | 1,183 |
Total current assets | 706,983 | 447,021 |
Plant, property and equipment, net | 8,018 | 6,607 |
Goodwill | 8,881 | 8,881 |
Intangibles, net | 6,861 | 4,065 |
Long-term investments | 8,388 | 7,967 |
Deferred tax assets - non-current | 3,870 | 3,959 |
Total assets | 743,001 | 478,500 |
Current liabilities: | ||
Lines of credit | 200,000 | 180,000 |
Liability on borrowed metals | 280,346 | 5,625 |
Product financing arrangements | 113,940 | 135,343 |
Accounts payable | 45,997 | 41,947 |
Derivative liabilities | 20,457 | 34,582 |
Note payable (related party) | 0 | 500 |
Accrued liabilities | 5,129 | 4,945 |
Income taxes payable | 0 | 1,418 |
Total current liabilities | 665,869 | 404,360 |
Debt obligation (related party) | 7,226 | 0 |
Other long-term liabilities (related party) | 798 | 1,117 |
Total liabilities | 673,893 | 405,477 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of June 30, 2018 and 2017 | 0 | 0 |
Common stock, par value $0.01; 40,000,000 shares authorized; 7,031,450 shares issued and outstanding as of June 30, 2018 and 2017 | 71 | 71 |
Additional paid-in capital | 24,717 | 23,526 |
Retained earnings | 40,910 | 45,994 |
Total A-Mark Precious Metals, Inc. stockholders’ equity | 65,698 | 69,591 |
Non-controlling interest | 3,410 | 3,432 |
Total stockholders’ equity | 69,108 | 73,023 |
Total liabilities, non-controlling interest and stockholders’ equity | $ 743,001 | $ 478,500 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
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 | 7,031,450 |
Common stock, shares outstanding | 7,031,450 | 7,031,450 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 7,606,248 | $ 6,989,624 |
Cost of sales | 7,576,805 | 6,958,290 |
Gross profit | 29,443 | 31,334 |
Selling, general and administrative expenses | (33,398) | (23,343) |
Goodwill and intangible asset impairment | (2,654) | 0 |
Interest income | 16,105 | 12,553 |
Interest expense | (13,891) | (10,117) |
Other income | 954 | 298 |
Unrealized gain on foreign exchange | 30 | 60 |
Net (loss) income before provision for income taxes | (3,411) | 10,785 |
Income tax expense | (8) | (3,721) |
Net (loss) income | (3,419) | 7,064 |
Net loss attributable to non-controlling interest | (22) | (22) |
Net (loss) income attributable to the Company | $ (3,397) | $ 7,086 |
Basic and diluted net (loss) income per share attributable to A-Mark Precious Metals, Inc.: | ||
Basic (usd per share) | $ (0.48) | $ 1.01 |
Diluted (usd per share) | (0.48) | 1 |
Dividends per share (usd per share) | $ 0.24 | $ 0.30 |
Weighted average shares outstanding: | ||
Basic (shares) | 7,031,400 | 7,029,400 |
Diluted (shares) | 7,031,400 | 7,121,500 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Total A-Mark Precious Metals, Inc. Stockholders' Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Non-Controlling Interest |
Beginning balance (shares) at Jun. 30, 2016 | 7,021,450 | |||||
Beginning balance at Jun. 30, 2016 | $ 63,309 | $ 63,309 | $ 71 | $ 22,220 | $ 41,018 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 7,064 | 7,086 | 7,086 | (22) | ||
Share-based compensation | 996 | 996 | 996 | |||
Excess tax benefit of share-based award | 138 | 138 | 138 | |||
Minority interest contribution | 3,454 | 3,454 | ||||
Stock award grant (shares) | 10,000 | |||||
Stock award grant | 172 | 172 | 172 | |||
Dividends declared | $ (2,110) | (2,110) | (2,110) | |||
Ending balance (shares) at Jun. 30, 2017 | 7,031,450 | 7,031,450 | ||||
Ending balance at Jun. 30, 2017 | $ 73,023 | 69,591 | $ 71 | 23,526 | 45,994 | 3,432 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (3,419) | (3,397) | (3,397) | (22) | ||
Share-based compensation | 1,191 | 1,191 | 1,191 | |||
Dividends declared | $ (1,687) | (1,687) | (1,687) | |||
Ending balance (shares) at Jun. 30, 2018 | 7,031,450 | 7,031,450 | ||||
Ending balance at Jun. 30, 2018 | $ 69,108 | $ 65,698 | $ 71 | $ 24,717 | $ 40,910 | $ 3,410 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (3,419) | $ 7,064 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,626 | 1,521 |
Impairment of intangible assets | 2,654 | 0 |
Amortization of loan cost | 1,463 | 892 |
Deferred income taxes | 89 | (10,780) |
Interest added to principal of secured loans | (48) | (68) |
Change in accrued earn-out (non-cash) | (529) | (198) |
Share-based compensation | 1,191 | 996 |
Earnings from equity method investment | (421) | (94) |
Loss on disposal of fixed assets | 0 | 178 |
Changes in assets and liabilities: | ||
Receivables | 4,044 | 4,007 |
Secured loans | 385 | 8,765 |
Secured loans to Former Parent | (12,523) | 1,370 |
Derivative assets | 11,017 | 16,145 |
Income tax receivable | (1,553) | 7,318 |
Precious metals held under financing arrangements | (262,566) | 0 |
Inventories | 16,946 | (39,602) |
Prepaid expenses and other assets | (1,779) | (572) |
Accounts payable | 2,221 | (4,822) |
Derivative liabilities | (14,125) | (1,872) |
Liabilities on borrowed metals | 265,772 | 1,273 |
Accrued liabilities | (2,381) | (2,923) |
Receivable from/payables to Former Parent | 0 | 203 |
Income taxes payable | (1,418) | 1,418 |
Net cash provided by (used in) operating activities | 7,646 | (9,781) |
Cash flows from investing activities: | ||
Capital expenditures for property and equipment | (1,317) | (2,265) |
Secured loans, net | (7,000) | (30,801) |
Acquisition of subsidiary, net of cash | (9,515) | (3,421) |
Net cash used in investing activities | (17,832) | (36,487) |
Cash flows from financing activities: | ||
Product financing arrangements, net | (21,403) | 75,985 |
Dividends | (1,687) | (2,110) |
Borrowings under lines of credit, net | 20,000 | (32,000) |
Proceeds from issuance of debt obligation payable to related party | 7,500 | 0 |
Repayments on notes payable to related party | (500) | 0 |
Stock award grant | 0 | 172 |
Debt funding fees | (492) | 0 |
Excess tax benefit of share-based award | 0 | 138 |
Net cash provided by financing activities | 3,418 | 42,185 |
Net decrease in cash, cash equivalents, and restricted cash | (6,768) | (4,083) |
Cash, cash equivalents, and restricted cash, beginning of period | 13,059 | 17,142 |
Cash, cash equivalents, and restricted cash, end of period | 6,291 | 13,059 |
Supplemental disclosures of cash flow information: | ||
Interest expense | 12,251 | 9,448 |
Income taxes | 3,038 | 11,874 |
Non-cash investing and financing activities: | ||
Interest added to principal of secured loans | 48 | 68 |
Debt funding fee | 534 | 0 |
Contribution of assets from minority interest | 0 | 3,454 |
Payable to minority interest partner for acquired business | 0 | 500 |
Earn out obligation payable to minority interest partner | $ 0 | $ 1,523 |
Description of Business
Description of Business | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Basis of Presentation The consolidated financial statements include the accounts of A-Mark Precious Metals, Inc. and its wholly- and majority-owned subsidiaries ("A-Mark" or the "Company"). Intercompany accounts and transactions have been eliminated. Business Segments The Company conducts its operations in three reportable segments: (1) Wholesale Trading & Ancillary Services, (2) Secured Lending and (3) Direct Sales. Each of these reportable segments represents an aggregation of operating segments that meets the aggregation criteria set forth in the Segment Reporting Topic 280 of the FASB Accounting Standards Codification (“ASC”) (See Note 18 ). Wholesale Trading & Ancillary Services The Wholesale Trading & Ancillary Services segment operates as a full-service precious metals trading company. The products that this segment sells include gold, silver, platinum and palladium for storage and delivery primarily in the form of coins, bars, wafers and grain. Also, this segment's trading-related services include financing, consignment, logistics, hedging and various customized financial programs. 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 customers an array of complementary services, including packaging, shipping, handling, receiving, processing, and inventorying of precious metals and custom coins on a secure basis. In August 2016, the Company formed AM&ST Associates, LLC ("AMST"), a joint venture with SilverTowne, L.P., referred to as SilverTowne, an Indiana-based producer of minted silver. The Company and SilverTowne, L.P. own 55% and 45% , respectively, of AMST. AMST acquired the entire minting operations (referred to as SilverTowne Mint) of SilverTowne, L.P., with the goal of providing greater product selection to our customers and greater pricing stability within the supply chain, as well as to gain increased access to silver during volatile market environments. Secured Lending The Company operates its Secured Lending segment through its wholly-owned subsidiary, CFC. CFC has been in operation since 2005. CFC is a California licensed finance lender that originates and acquires commercial loans secured by bullion and numismatic coins. CFC's customers include coin and precious metal dealers, investors and collectors. In the fourth quarter of fiscal 2018, the Company announced its intention to engage in securitization financing, whereby it would issue privately placed notes secured by the loans that it owns and the bullion and numismatics collateralizing the loans. As a result of this action, as well as certain changes to CFC's management structure, the Company determined that the operations of CFC, which had previously been included in the Wholesale Trading and & Ancillary Services segment, constituted a separate reportable operating segment. Direct Sales The Company's wholly-owned subsidiary, Goldline, Inc. ("Goldline"), is a direct retailer of precious metals to the investor community. Goldline markets its precious metal products primarily on radio, the internet and television. Goldline sells gold and silver bullion in the form of coins, and bars, as well as numismatic coins. The Company entered into the Direct Sales segment through its acquisition of substantially all of the assets of Goldline, LLC ("Goldline, LLC" or the "Seller"), pursuant to the terms of an Asset Purchase Agreement (the “Purchase Agreement”), dated August 14, 2017, between Goldline (then known as Goldline Acquisition Corp.) and the Seller. The transaction closed on August 28, 2017 (the "Closing Date"). On the Closing Date, the estimated purchase price for the net assets was approximately $10.0 million (the “Initial Provisional Purchase Price”), which was based on the Seller’s preliminary balance sheet dated as of July 31, 2017. The net assets acquired consisted of both intangible assets, which the parties agreed had an aggregate fair value of $6.4 million , and specified net tangible assets of the Seller, which the parties initially agreed had an estimated aggregate fair value of $3.6 million , subject to post-closing adjustment as described below. In connection with the closing, Goldline paid to the Seller an amount equal to the Initial Provisional Purchase Price less $1.5 million (the "Holdback Amount"), which amount was held back and deposited into escrow to serve as security for the Seller’s indemnification obligations under the Purchase Agreement. As of June 30, 2018 , none of the Holdback Amount had been released. From the Closing Date and through June 30, 2018 , the Company conducted net tangible asset value adjustment procedures pursuant to the terms of the Purchase Agreement. As a result of these procedures, the Company has adjusted the estimated total purchase price for the net assets from $10.0 million to $9.5 million (the “Revised Provisional Purchase Price”). The fair value of the acquired net tangible assets as of the Closing Date is still being reviewed by the Company and the Seller and therefore the total purchase price is subject to further adjustment. Under the terms of the Purchase Agreement, any amounts due back to the Company from the Seller as a result of the final determination of the fair value of the acquired net tangible assets is to be paid within three business days following such determination. Acquisition costs of $0.8 million were expensed as incurred as selling, general and administrative expenses, of which $0.1 million was recorded by the Company during the year ended June 30, 2017 . Purchase Price Allocation The Revised Provisional Purchase Price of $9.5 million has been allocated to the acquired net assets purchased based on their fair values as follows (shown in thousands, and liability balances shown as negative amounts): Working capital net assets: Receivables, net $ 605 Derivative assets 825 Inventory 12,403 Prepaid expenses and other assets 856 Accounts payable and accrued liabilities (2,111 ) Liability on borrowed metals (8,949 ) Deferred income (2,284 ) Subtotal $ 1,345 Property and equipment 1,806 Intangible assets (identifiable): Trade names $ 2,200 Existing customer relationships 1,300 Customer lead list 1,100 Other 400 Subtotal 5,000 Goodwill: Excess of cost over fair value of assets acquired 1,364 (1) $ 9,515 _________________________________ (1) During the fourth quarter of fiscal 2018, the Company adjusted its estimate of Revised Provisional Purchase Price, which included $86 decrease in the gross carrying amount of the acquired goodwill from $1,450 to $1,364. The estimates of both the fair value and the allocation of the tangible and identifiable intangible assets requires extensive use of accounting estimates and management judgment. These estimates could be material. The fair values assigned to the assets acquired are based on estimates and assumption from data currently available. The fair value of the acquired net tangible assets as of the Closing Date is still being reviewed by the Company and the Seller and therefore the total purchase price and the allocation of the purchase price is subject to further adjustment. Since there has been a lapse of more than one year from the date of acquisition (i.e., August 28, 2018), the measurement period as defined by generally accepted accounting principles has expired. Any further adjustments to the purchase price occurring after the conclusion of the measurement period will be recorded to income or expense in subsequent periods. Pro-Forma Information The following unaudited pro-forma information for the years ended June 30, 2018 and 2017 assumes the acquisition of the net assets of Goldline, LLC occurred on July 1, 2016, that is, the first day of fiscal year 2017: in thousands, except for EPS (Unaudited) Years Ended June 30, June 30, 2018 June 30, 2017 Pro-forma revenue $ 7,607,405 $ 7,090,784 Pro-forma net (loss) income $ (3,341 ) $ 6,917 Pro-forma basic (loss) earnings per share $ (0.48 ) $ 0.98 Pro-forma dilutive (loss) earnings per share $ (0.48 ) $ 0.97 The above pro-forma supplemental information does not purport to be indicative of what the Company's operations would have been had these transactions occurred on July 1, 2016 and should not be considered indicative of future operating results. The Company believes the assumptions used provide a reasonable basis for reflecting the significant pro-forma effects directly attributable to the acquisition of Goldline. The unaudited pro-forma information accounts for amortization of acquired intangible assets (based on the preliminary purchase price allocation and an estimate of their useful lives), incremental financing costs resulting from the acquisition, elimination of prior sales and purchases between the entities, elimination of acquisition costs and an application of the Company's tax rate. For the years ended June 30, 2018 and 2017 the Company used the tax rate of 31.0% and 37.5% , respectively, as an approximation of our blended statutory tax rate, which excludes the effects of any tax impacts related a revaluation of net deferred asset pursuant to the recently enacted Tax Cuts and Jobs Act legislation (see Note 12 ). The unaudited pro-forma results do not include any anticipated cost savings or other effects of the planned integration of Goldline. Related Agreements In connection with the closing of the acquisition, Goldline entered into a privately placed credit facility in the amount of $7.5 million (the “Goldline Credit Facility”) with various lenders (the "Goldline Lenders"), which include some directors from the Company's Board, effective August 28, 2017 (see Note 14 ). Borrowings under the Goldline Credit Facility were used to finance a portion of the consideration payable under the Purchase Agreement. On the Closing Date, the Seller and Goldline entered into a transition services agreement, pursuant to which Goldline will provide reasonable assistance to the Seller at no cost to the Seller (including access to records and services of transferring employees) for a period of two years following the closing date in connection with assisting the Seller with its continuing obligations for its retained liabilities that were not assumed by Goldline. Also on the Closing Date, the Seller and the former CEO of the Seller also agreed that, for the period commencing on the closing date until the third anniversary thereof, neither they nor any of their affiliates will, directly or indirectly own, manage, operate, join, control, participate in, invest in or otherwise provide assistance to, in any manner, any “competing business” (as defined in the Purchase Agreement). Spinoff from Spectrum Group International, Inc. On March 14, 2014, the Company's former parent, Spectrum Group International, Inc. (including its subsidiaries, "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 | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements reflect the financial condition, results of operations, statement of stockholder equity and cash flows of the Company, and were prepared using accounting principles generally accepted in the United States (“U.S. GAAP”). These consolidated financial statements include the accounts of A-Mark, and its wholly owned subsidiaries, CFC, AMTAG, TDS, Logistics, Goldline and its majority owned affiliate AMST (collectively the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. For the years ended June 30, 2018 and 2017 , net income (loss) equaled comprehensive income (loss) as there were no items of comprehensive income (loss). Use of Estimates The preparation of 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 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 plant, property and equipment and intangible assets, valuation allowance determination on deferred tax assets, contingent earn-out liabilities, contingent interest liabilities, 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. Reclassifications Certain previously reported amounts have been reclassified for consistency to the current fiscal year's consolidated financial statement presentation. These reclassifications had no effect on the reported results of operations. In the third quarter of fiscal 2018, precious metals held under financing arrangements was included as a component of inventory on the consolidated balance sheets and statements of cash flows. In the fourth quarter of fiscal 2018, precious metals held under financing arrangements is shown as a separate line item on the face of the consolidated balance sheets statements and cash flows. 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. 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 consolidated statements of operations. 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. Business Combinations The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations . The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. 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 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 the 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 consolidated statements of cash flow. Cash and 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 June 30, 2018 and June 30, 2017 . As of June 30, 2018 and June 30, 2017 , the Company has $0.4 million and $0.0 million , respectively, in a bank account that is restricted and serves as collateral against a standby letter of credit issued by the bank in favor of the landlord for our office space in Los Angeles, California (see Note 15 ). Precious Metals held under Financing Arrangements The Company enters into arrangements with certain customers under which A-Mark purchases precious metals from the customers which are subject to repurchase by the customer at the spot value of the product on the repurchase date. The terms of these transactions are such that the Company has classified this material as precious metals held under financing arrangements, rather than as inventory - repurchase arrangements with customers (Note 6). In these repurchase arrangements, the Company holds legal title to the material and earns financing income for the duration of the agreement. These arrangements are typically terminable by either party upon 14 days' notice. Upon termination, the customer’s right to repurchase any remaining precious metal is forfeited, and the related precious metals are reclassified as inventory held for sale. As of June 30, 2018 and June 30, 2017, precious metals held under financing arrangements totaled $262.6 million and $0.0 million respectively. The Company’s precious metals held under financing arrangements are "marked-to-market". 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 consolidated statements of operations. 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 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 . Depreciation commences when the related assets are placed into service. Internal-use software development costs are capitalized during the application development stage. Internal-use software costs incurred during the preliminary project stage are expensed as incurred. Land is recorded at historical cost, and is not depreciated. Repair and maintenance costs are expensed as incurred. We have no major planned maintenance activities related to our plant assets associated with our minting operations. The Company reviews the carrying value of these assets for impairment whenever events and circumstances indicate that the carrying value of the asset may not be recoverable. In evaluating for impairment, the carrying value of each asset or group of assets is compared to the undiscounted estimated future cash flows expected to result from its use and eventual disposition. An impairment loss is recognized for the difference when the carrying value exceeds the discounted estimated future cash flows. The factors considered by the Company in performing this assessment include current and projected operating results, trends and prospects, the manner in which these assets are used, and the effects of obsolescence, demand and competition, as well as other economic factors. Finite-lived Intangible Assets Finite-lived intangible assets consist primarily of customer relationships, non-compete agreements and employment contracts which are amortized on a straight-line basis over their economic useful lives ranging from three years to fifteen years . We review our finite-lived intangible assets for impairment under the same policy described above for plant, property, and equipment; that is, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill and Indefinite-lived 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-lived intangibles (such as trade names) are not subject to amortization, but are evaluated for impairment at least annually. However, for tax purposes, goodwill acquired in connection with a taxable asset acquisition is generally deductible. The Company evaluates its goodwill and other indefinite-lived intangibles for impairment 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. Goodwill is reviewed for impairment at a reporting unit level, which in our case, corresponds to the Company’s reportable operating segments. Evaluation of goodwill for impairment The Company has the option to 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. A qualitative assessment includes analyzing current economic indicators associated with a particular reporting unit such as changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If, based on this qualitative assessment, management concludes that goodwill is more likely than not to be impaired, or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis to determine the fair value of the business, and compare the calculated fair value of the reporting unit with its carrying amount, including goodwill. If through this quantitative analysis the Company determines the fair value of a reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not to be impaired. If the Company concludes that the fair value of the reporting unit is less than its carrying value, a goodwill impairment loss will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value (see Note 8 ). Evaluation of indefinite-lived intangible assets for impairment The Company evaluates its indefinite-lived intangible assets (i.e., trademarks and trade-names) for impairment. In assessing its indefinite-lived intangible assets for impairment, the Company has the option to first perform a qualitative assessment to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, the Company is not required to perform any additional tests in assessing the asset for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis to determine if the fair value of an indefinite-lived intangible asset is less than its carrying value. If through this quantitative analysis the Company determines the fair value of an indefinite-lived intangible asset exceeds its carrying amount, the indefinite-lived intangible asset is considered not to be impaired. If the Company concludes that the fair value of an indefinite-lived intangible asset is less than its carrying value, an impairment loss will be recognized for the amount by which the carrying amount exceeds the indefinite-lived intangible asset’s fair value. The methods used to estimate the fair value measurements of the Company’s reporting units and indefinite-lived intangible assets include those based on the income approach (including the discounted cash flow, and relief-from-royalty methods) and those based on the market approach (primarily the guideline transaction and guideline public company methods) (see Note 8 ). 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 June 30, 2018 and June 30, 2017 , 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 obligation to SilverTowne LP related to the SilverTowne Mint acquisition. 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 June 30, 2018 and June 30, 2017 the balance of contingent liability was $588,000 and $1,325,000 respectively, and the non-current portion of this liability is shown as a component in other long-term liabilities. Below is a reconciliation of the contingent earn out liability for the year ended June 30, 2018 . in thousands Contingent Liabilities at fair value, based on Level 3 inputs: Consideration Balance at June 30, 2017 $ 1,325 Revaluation adjustment (529 ) Amount paid to SilverTowne (208 ) Balance at June 30, 2018 $ 588 Revenue Recognition Settlement Date Accounting Substantially all of the Company’s sales of precious metals are conducted using sales contracts that meet the definition of derivative instruments in accordance with the Derivatives and Hedging Topic 815 of the ASC ("ASC 815"). The contract underlying A-Mark’s commitment to deliver precious metals is referred to as a “fixed-price forward commodity contract” because the price of the commodity is fixed at the time the order is placed. Revenue is recognized on the settlement date, which is defined as the date on which: (1) the quantity, price and specific items being purchased have been established, (2) metals have been delivered to the customer, and (3) payment has been received or is covered by the customer’s established credit limit with the Company. All derivative instruments are marked to market during the interval between the trade date and the settlement date, with the changes in the fair value charged to cost of sales. The Company’s hedging strategy to mitigate the market risk associated with its sales commitments is described separately below under the caption “Hedging Activities.” Trades Types of Products that are Physically Delivered The Company’s contracts to sell precious metals to customers are usually settled with the physical delivery of metals to the customer, although net settlement (i.e., settlement at an amount equal to the difference between the contract value and the market price of the metal on the settlement date) is permitted. Below is a summary of the Company’s major trade order types and the key factors that determine when settlement occurs and when revenue is recognized for each type: • Traditional physical trade orders — The quantity, specific product, and price are determined on the trade date. Payment or sufficient credit is verified prior to delivery of the metals on the settlement date. • Consignment trade orders — The Company delivers the items requested by the customer prior to establishing a firm trade order with a price. Settlement occurs and revenue is recognized once the customer confirms its order (quantity, specific product and price) and remits full payment for the sale. • Provisional trade orders — The quantity and type of metal is established at the trade date, but the price is not set. The customer commits to purchasing the metals within a specified time period, usually within one year, at the then-current market price. The Company delivers the metal to the customer after receiving the customer’s deposit, which is typically based on 110% of the prevailing current spot price. The unpriced metal is subject to a margin call if the deposit falls below 105% of the value of the unpriced metal. The purchase price is established and revenue is recognized at the time the customer notifies the Company that it desires to purchase the metal. • Margin trade orders — The quantity, specific product and price are determined at trade date; however, the customer is allowed to finance the transaction through the Company and to defer delivery by committing to remit a partial payment (approximately 20%) of the total order price. With the remittance of the partial payment, the customer locks in the purchase price for a specified time period (usually up to two years from the trade date). Revenue on margin trade orders is recognized when the order is paid in full and delivered to the customer. • Borrowed precious metals trade orders for unallocated positions — Customers may purchase unallocated metal positions in the Company's inventory. The quantity and type of metal is established at the trade date, but the specific product is not yet determined . Revenue is not recognized until the customer selects the specific precious metal product it wishes to purchase, full payment is received, and the product is delivered to the customer. Hedging Activities The value of our inventory and our purchase and sale 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 credit worthy financial institutions. The Company hedges by each commodity type (gold, silver, platinum, and palladium). All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Commodity forward, futures and option contracts entered into for hedging purposes are recorded at fair value on the trade date and are marked to market each period. The difference between the original contract values and the market values of these contracts are reflected as derivative assets or derivative liabilities in the consolidated balance sheets at fair value, with the corresponding unrealized gain or losses included as a component of cost of sales. When these contracts are net settled, the unrealized gains and losses are reversed and the realized gains and losses for forward contracts are recorded in revenue and cost of sales and the net realized gains and losses for futures and option contracts are recorded in cost of sales. The Company enters into futures, forward and option contracts solely for the purpose of hedging our inventory holding risk and our liability on price protection programs, 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 consolidated statements of operations (see Note 11 .) Other Sources of Revenue In accordance with the Revenue Recognition Topic 605 of the ASC ("ASC 605") storage and logistics services 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. Interest Income In accordance with the Interest Topic 835 of the ASC ("ASC 835") following are interest income generating activities of the Company: • Secured Loans -- The Company uses the effective interest method to recognize interest income on its secured loans transactions. 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 resolved. Cash receipts on impaired loans are recorded first against the principal and then to any unrecognized interest income (see Note 5 .) • Margin accounts -- The Company earns a fee (interest income) under financing arrangements related to margin trade orders over the period during which customers have opted to defer making full payment on the purchase of metals. • Repurchase agreements -- Repurchase agreements represent a form of secured financing whereby the Company sets aside specific metals for a customer and charges a fee on the outstanding value of these metals. The customer is granted the option (but not the obligation) to repurchase these metals at any time during the open reacquisition period. This fee is earned over the duration of the open reacquisition period and is classified as interest income. • Spot deferred trade orders -- Spot deferred trade orders are a special type of forward delivery trade that enable customers to purchase or sell certain precious metals from/to the Company at an agreed upon price but, are allowed to delay remitting or taking delivery up to a maximum of two years from the date of trade. Even though the contact allows for physical delivery, it rarely occurs for this type of trade. As a result, revenue is not recorded from these transactions, because no product is delivered to the customer. Spot deferred trades are considered a type of financing transaction, where the Company earns a fee (interest income) under spot deferred arrangements over the period in which the trade is open. Interest Expense The Company accounts for interest expense on the following arrangements in accordance with Interest Topic 835 of the ASC ("ASC 835"): • Borrowings -- The Company incurs interest expense from its lines of credit and its debt obligations using the effective interest method (see Note 14 .) Additionally, the Company amortizes capitalized loan costs to interest expense over the period of the loan agreement. • Loan servicing fees -- When the Company purchases loan portfolios, the Company may have the seller service the loans that were purchased. The Company incurs a fee based on total interest charged to borrowers over the period the loans are outstanding. The servicing fee incurred by the Company is charged to interest expense. • Product financing arrangements -- The Company incurs financing fees (classified as interest expense) from its product financing arrangements (also referred to as reverse-repurchase arrangements) with third party finance companies for the transfer and subsequent option to reacquire its precious metal inventory at a later date. These arrangements are accounted for as secured borrowings. During the term of this type of agreement, the third party charges a monthly fee as a percentage of the market value of the designated inventory, which the Company intends to reacquire in the future. No revenue is generated from these trades. The Company enters this type of transaction for additional liquidity. • Borrowed metals fees -- The Company may incur financing costs from its liabilities on borrowed metal arrangements. The Company borrows precious metals (usually in the form of pool metals) from its suppliers and customers under short-term arrangements using other precious metals from its inventory as collateral. Typically, during the term of these arrangements, the third party charges a monthly fee as a percentage of the market value of the collateral (determined at the spot price) plus certain processing and other fees. The Company enters this type of transaction as an additional source of liquidity, and usually monetizes the metals received under such arrangements. Repayment is usually required in the same form as the metals advanced, or in cash. Other Income The Company's other income is derived from the Company's proportional interest in the reported net income or net loss in an investee accounted for under the equity method of accounting and the gains or losses associated with revaluation adjustments to the contingent earn-out liability associated with its AMST investment. The Company's proportional interest in the investee's reported net income (loss) from its equity method investment was $421,000 and $94,000 for the years ended June 30, 2018 and 2017 , respectively. The net gains associated with revaluation adjustments to the contingent earn-out liability was $529,000 and $198,000 for the years ended June 30, 2018 and 2017 , respectively. Advertising Advertising expense was $3,234,000 and $673,000 , respectively, for the years ended June 30, 2018 and 2017 . The increase in advertising expense primarily relates to our acquisition of Goldline. See Note 18 for bifurcation of expenses by segment. 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 consolidated statements of operations. Shipping and handling costs incurred totaled $4,643,000 and $4,527,000 , respectively, for the years ended June 30, 2018 and 2017 . 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 consolidated financial statements. The expense is adjusted for actual forfeitures of unvested awards as they occur. Income Taxes As part of the process of preparing its 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 new information that has become available after the balance sheet date, but does disclose the effects of new information whenever those effects would |
Assets and Liabilities, at Fair
Assets and Liabilities, at Fair Value | 12 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and June 30, 2017 . in thousands June 30, 2018 June 30, 2017 Carrying Amount Fair value Carrying Amount Fair value Financial assets: Cash $ 6,291 $ 6,291 $ 13,059 $ 13,059 Receivables, net 35,856 35,856 39,295 39,295 Secured loans receivable 110,424 110,424 91,238 91,238 Derivative asset on open sale and purchase commitments, net 2,274 2,274 931 931 Derivative asset on option contracts 390 390 — — Derivative asset on futures contracts 238 238 1,273 1,273 Derivative asset on forward contracts 4,493 4,493 15,383 15,383 Income taxes receivable 1,553 1,553 — — Financial liabilities: Lines of credit $ 200,000 $ 200,000 $ 180,000 $ 180,000 Debt obligation (related party) 7,226 7,226 — — Liability on borrowed metals 280,346 280,346 5,625 5,625 Product financing arrangements 113,940 113,940 135,343 135,343 Derivative liability on margin accounts 3,804 3,804 4,797 4,797 Derivative liability on price protection programs 168 168 — — Derivative liability on open sale and purchase commitments, net 16,485 16,485 29,785 29,785 Accounts payable 45,997 45,997 41,947 41,947 Accrued liabilities 5,129 5,129 4,945 4,945 Other long-term liabilities (related party) (1) 798 798 1,117 1,117 Income taxes payable — — 1,418 1,418 Note payable - related party — — 500 500 (1) Includes estimated contingent amounts due to SilverTowne and to Goldline Lenders. The fair values of the financial instruments shown in the above table as of June 30, 2018 and June 30, 2017 represent the amounts that would be received upon the sale of 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, receivables, income taxes receivable, accounts payable, income taxes payable, note payable, and accrued liabilities approximate fair value due to their short-term nature. The carrying amounts of derivative assets and 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 and debt obligation 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 contingent earn-out liabilities that are 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, are acquired and initially recorded at fair market value. The fair market value of the bullion and bullion coins are 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, option 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 an agreed-upon price based on the spot price with a third party. Such transactions allow the Company to repurchase this inventory on the termination (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. Liability on Price Protection Programs . The Company records an estimate of the fair value of the liability on price protection programs based on the difference between the contractual price at trade date and the retail price at the remeasurement date (i.e., quarter-end) based on the expected redemption rate of each program. As of June 30, 2018 , the Company used the quoted market price based on the current spot rate and used an expected redemption rate of 100% for the price shield program, the most significant of the price protection programs. The use of a throughput rate of each program ignores the future price volatility that would affect the timing and rate of redemption under these programs, and, as a result, the liability on price protection programs is classified in Level 3 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 obligation to SilverTowne LP related to the SilverTowne Mint transaction. On a quarterly basis, the liability is remeasured and increases or decreases in the fair value are recorded as an adjustment to other income on the consolidated statements of operations. 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 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. Contingent earn-out liability is classified in Level 3 of the valuation hierarchy. The Company values the contingent obligation by determining the likelihood that the company has achieved the following targeted amount of performance thresholds for each annual earn-out period. Such thresholds include (1) Producing a targeted amount of silver ounces, (2) Earning a targeted amount of operating income, and (3) Generating an operating cost per ounce that is less than a targeted level. Each category triggers a different annual payout obligation if achieved over a 3 year period, and as of June 30, 2018 , the remaining two annual contingent payout obligations, if achieved, would become due on August 31, 2019 and on October 30, 2019. The company re-assesses this contingent obligation each quarter based on the most current facts and market conditions. The obligation continues to remain as a liability at its original recorded value unless, based on each quarterly evaluation, it becomes evident the Company will not achieve all or part of the threshold performance targets. In such case, the obligation is adjusted to its more current estimated value. The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and June 30, 2017 , aggregated by the level in the fair value hierarchy within which the measurements fall: June 30, 2018 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) $ 280,017 $ — $ — $ 280,017 Precious metals held under financing arrangements 262,566 262,566 Derivative assets — open sale and purchase commitments, net 2,274 — — 2,274 Derivative assets — option contracts 390 — — 390 Derivative assets — futures contracts 238 — — 238 Derivative assets — forward contracts 4,493 — — 4,493 Total assets, valued at fair value $ 549,978 $ — $ — $ 549,978 Liabilities: Liability on borrowed metals $ 280,346 $ — $ — $ 280,346 Product financing arrangements 113,940 — — 113,940 Derivative liabilities — price protection programs — — 168 168 Derivative liabilities — liability on margin accounts 3,804 — — 3,804 Derivative liabilities — open sale and purchase commitments, net 16,485 — — 16,485 Contingent earn-out liability $ — $ — $ 588 $ 588 Total liabilities, valued at fair value $ 414,575 $ — $ 756 $ 415,331 ____________________ (1) Commemorative coin inventory totaling $99,000 is held at lower of cost or market and is thus excluded from this table. June 30, 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) $ 284,619 $ — $ — $ 284,619 Derivative assets — open sale and purchase commitments, net 931 — — 931 Derivative assets — futures contracts 1,273 — — 1,273 Derivative assets — forward contracts 15,383 — — 15,383 Total assets, valued at fair value $ 302,206 $ — $ — $ 302,206 Liabilities: Liability on borrowed metals $ 5,625 $ — $ — $ 5,625 Product financing arrangements 135,343 — — 135,343 Derivative liabilities — liability on margin accounts 4,797 — — 4,797 Derivative liabilities — open sale and purchase commitments, net 29,785 — — 29,785 Contingent earn-out liability — — 1,325 1,325 Total liabilities, valued at fair value $ 175,550 $ — $ 1,325 $ 176,875 ____________________ (1) Commemorative coin inventory totaling $40,000 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 from other levels within the fair value hierarchy during the reported periods. Assets Measured at Fair Value on a Non-Recurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only under certain circumstances. These include: cost method 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 plant, property and equipment, intangibles or goodwill, which are written down to fair value when they are held for sale or determined to be impaired. The resulting fair value measurements of the assets are considered to be Level 3 measurements. Determining fair value requires the exercise of significant judgments, including judgments about appropriate discount rates, long-term growth rates, relevant comparable company earnings multiples and the amount and timing of expected future cash flows. The cash flows employed in the analyses are based on the Company’s estimated outlook and various growth rates. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. In assessing the reasonableness of its determined fair values, the Company evaluates its results against other value indicators, such as comparable transactions and comparable public company trading values. The Company evaluates its goodwill and other indefinite-lived intangibles for impairment on non-recurring basis in the fourth quarter of the fiscal year, or more frequently if indicators of potential impairment exist. As of June 30, 2017 , the carrying value of the Company's indefinite-lived intangible and goodwill assets totaled $2.3 million and $8.9 million , respectively. During the year ended June 30, 2018 , the Company recorded $2.2 million of indefinite-lived assets and $1.4 million of goodwill related to our asset acquisition of Goldline (see Note 1 ). Then, in the fourth quarter of fiscal 2018, the Company recorded an impairment loss of $1.3 million and $1.4 million to indefinite-lived intangible and goodwill assets, respectively, based on our quantitative assessment of the fair value of the Direct Sales segment (i.e., Goldline). As of June 30, 2018 , the carrying value of the Company's indefinite-lived intangible and goodwill assets totaled $3.2 million and $8.9 million , respectively (see Note 8 ). 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. Based on the Company's assessment of the carrying value of these assets, during the years ended June 30, 2018 and 2017 the Company did not record any impairments related to these investments. As of June 30, 2018 and June 30, 2017 , the carrying value of the Company's investments totaled $8.4 million and $8.0 million , respectively. |
Receivables
Receivables | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Receivables | RECEIVABLES Receivables consist of the following as of June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Customer trade receivables $ 22,813 $ 31,949 Wholesale trade advances 10,722 2,457 Due from brokers 2,351 4,919 Subtotal 35,886 39,325 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 35,856 $ 39,295 Customer Trade Receivables. Customer trade receivables represent short-term, non-interest bearing amounts due from precious metal sales, advances related to financing products, and 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, and 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 An allowance for doubtful accounts is 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 Year Ended June 30, 2018 $ 30 $ — $ — $ 30 Year Ended June 30, 2017 $ 30 $ — $ — $ 30 |
Secured Loans Receivable
Secured Loans Receivable | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Secured Loans Receivable | SECURED LOANS RECEIVABLE Below is a summary of the carrying value of our secured loans as of June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Secured loans originated $ 23,300 $ 30,864 Secured loans originated - with a related party 12,523 — 35,823 30,864 Secured loans acquired 74,601 (1) 60,374 (2) Secured loans (current and long-term) $ 110,424 $ 91,238 _________________________________ (1) Includes $54,000 of loan premium as of June 30, 2018 . (2) Includes $72,000 of loan premium as of June 30, 2017 . 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 customers. 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 June 30, 2018 and June 30, 2017 , our secured loans carried weighted-average effective interest rates of 9.6% and 9.2% , respectively, and mature in periods generally ranging typically from on-demand to one year. The secured loans that the Company generates with active customers of A-Mark are reflected as an operating activity on the 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 consolidated statements of cash flows as secured loans, net. For the secured loans that (i) are reflected as an investing activity and have terms that allow the borrowers 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 (ii) are repayable on demand or in the short-term, the borrowings and repayments are netted on the 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 two classes of secured loan receivables: those loans secured by: 1) bullion items, and 2) numismatic and semi-numismatic coins. The Company's secured loans by portfolio class, which align with management reporting, are as follows: in thousands June 30, 2018 June 30, 2017 Bullion $ 72,128 65.3 % $ 61,767 67.7 % Numismatic and semi-numismatic 38,296 34.7 29,471 32.3 $ 110,424 100.0 % $ 91,238 100.0 % Each of the two classes of secured loans 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, for which 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 desegregates its secured loans that are collateralized by precious metal products, as follows: in thousands June 30, 2018 June 30, 2017 Loan-to-value of 75% or more $ 69,629 63.1 % $ 60,432 66.2 % Loan-to-value of less than 75% 40,795 36.9 30,806 33.8 Secured loans collateralized by precious metal products $ 110,424 100.0 % $ 91,238 100.0 % The Company had no loans with a loan-to-value ratio in excess of 100% at June 30, 2018 or June 30, 2017 . 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 calls. 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 collateral material is highly liquid and can easily be sold by the Company to pay off the loan. Such circumstances, this 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 years ended June 30, 2018 and 2017 , the Company incurred no loan impairment costs. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Inventory held for sale $ 32,605 $ 43,787 Repurchase arrangements with customers 104,907 92,496 Consignment arrangements with customers 10,785 7,368 Commemorative coins, held at lower of cost or market 99 40 Borrowed precious metals 17,780 5,625 Product financing arrangements, restricted 113,940 135,343 $ 280,116 $ 284,659 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 June 30, 2018 and June 30, 2017 , the inventory held for sale totaled $32.6 million and $43.8 million , respectively. Repurchase Arrangements with Customers. The Company enters into arrangements with certain customers under which A-Mark purchases precious metals from the customers which are subject to repurchase by the customer at the fair value of the product on the repurchase date. Under these arrangements, the Company, which holds legal title to the metals, earns financing income until the time the arrangement is terminated or the material is repurchased by the customer/sold to the customer. These arrangements are typically terminable by either party upon 14 days' notice. Upon termination, the customer’s rights to repurchase any remaining inventory is forfeited. As of June 30, 2018 and June 30, 2017 , included within inventory is $104.9 million and $92.5 million , respectively, of precious metals products subject to repurchase arrangements with customers. Consignment Arrangements with Customers. The Company periodically loans metals to customers on a short-term consignment basis. Inventories loaned under consignment arrangements to customers as of June 30, 2018 and June 30, 2017 totaled $10.8 million and $7.4 million , respectively. Such transactions are recorded as sales and are removed from the Company's inventory at the time the customer elects to price and purchase the precious metals. 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, and are included in inventory at the lower of cost or market and totaled $99,000 and $40,000 as of June 30, 2018 and June 30, 2017 , respectively. Borrowed Precious Metals. Borrowed precious metals inventories include: (1) metals held by suppliers as collateral on advanced pool metals, (2) amounts due to suppliers for the use of consigned inventory, (3) unallocated metal positions held by customers in the Company’s inventory, and (4) shortages in unallocated metal positions held by the Company in the supplier’s inventory. 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 due under these arrangements require delivery either in the form of precious metals, or cash. The Company's inventories included borrowed precious metals with market values totaling $17.8 million and $5.6 million as of June 30, 2018 and June 30, 2017 , respectively, with a corresponding offsetting obligation reflected as liabilities on borrowed metals on the consolidated balance sheets. Product Financing Arrangements. In substance, these inventories represent amounts held as security by lenders 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 an agreed-upon price based on the spot 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, paid to the third party finance company. During the term of the financing, the third party finance company holds the inventory as collateral, and both parties intend for the inventory to be returned to the Company at an agreed-upon price based on the spot price on the finance arrangement termination date. These transactions do not qualify as sales and have been accounted for as financing arrangements in accordance with ASC 470-40 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 consolidated statements of operations. Such obligations totaled $113.9 million and $135.3 million as of June 30, 2018 and June 30, 2017 , respectively. The Company mitigates market risk of its physical inventories and open commitments through commodity hedge transactions (see Note 11 .) As of June 30, 2018 and June 30, 2017 , the unrealized gains (losses) resulting from the difference between market value and cost of physical inventories were $(5.4) million and $(4.5) 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 consolidated statements of operations. The premium component, at market value, included in the inventories as of June 30, 2018 and June 30, 2017 totaled $3.5 million and $4.1 million , respectively. |
Plant, Property and Equipment
Plant, Property and Equipment | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Plant, Property and Equipment | PLANT, PROPERTY AND EQUIPMENT Plant, property and equipment consists of the following at June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Office furniture, and fixtures $ 2,056 $ 1,638 Computer equipment 757 462 Computer software 3,471 2,386 Plant equipment 2,701 1,979 Building 315 315 Leasehold improvements 2,796 2,571 Total depreciable assets 12,096 9,351 Less: accumulated depreciation (5,597 ) (3,885 ) Property and equipment not placed in service 1,483 1,105 Land 36 36 Plant, property and equipment, net $ 8,018 $ 6,607 Depreciation expense for the years ended June 30, 2018 and 2017 was $1,712,000 and $1,099,000 , respectively. Pursuant to the Company's acquisition of Goldline (see Note 1 ) the Company recorded approximately $1.8 million of additional property and equipment, which represents the approximate fair value of these assets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS In connection with the acquisition of A-Mark by Former Parent 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, the Company recorded an additional $2.5 million and $4.3 million of identifiable intangible assets and goodwill, respectively; these values were based upon an independent appraisal. The Company’s investment in AMST has resulted in 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. Due to the Company's acquisition of Goldline (see Note 1 ), the Company recorded $5.0 million and $1.4 million of additional identifiable intangible assets and goodwill, respectively; these values were based upon an independent appraisal and represents their fair values at the acquisition date. The Company’s investment in Goldline created synergies between Goldline's direct marketing operation and the Company’s established distribution network, secured storage and lending operations that is expected to lead to increased product margin spreads, lower distribution and storage costs for Goldline, and a larger customer base for the Company's secured lending operations. The carrying value of goodwill and other purchased intangibles as of June 30, 2018 and June 30, 2017 is as described below: dollar amounts in thousands June 30, 2018 June 30, 2017 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Identifiable intangible Assets: Existing customer relationships 5 - 15 8,848 (5,467 ) — 3,381 6,447 (4,636 ) 1,811 Non-compete and other 3 - 5 2,300 (2,056 ) — 244 2,000 (2,000 ) — Employment agreement 3 295 (222 ) — 73 195 (195 ) — Intangibles subject to amortization 11,443 (7,745 ) — 3,698 8,642 (6,831 ) 1,811 Trade Name Indefinite $ 4,454 $ — $ (1,291 ) $ 3,163 $ 2,254 $ — $ 2,254 $ 15,897 $ (7,745 ) $ (1,291 ) $ 6,861 $ 10,896 $ (6,831 ) $ 4,065 Goodwill Indefinite $ 10,245 (1) $ — $ (1,364 ) $ 8,881 $ 8,881 $ — $ 8,881 _________________________________ (1) During the fourth quarter of fiscal 2018, the gross carrying amount decreased by $86 related to the Company's revised estimate of the purchase price of Goldline due to the Seller. (see Note 1). 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 years ended June 30, 2018 and 2017 was $914,000 and $422,000 , respectively. Annual Impairment Assessments In accordance with ASC 350, the Company’s goodwill and indefinite-lived intangible assets are tested annually in the fourth quarter for impairment or earlier if events occur or circumstances change that would more likely than not reduce the fair value below the carrying amount (see Note 2 ). Fiscal 2018 Based on the Company's qualitative assessment of current economic indicators associated with the Wholesale and Ancillary Services and Direct Sales reporting units, the Company concluded that the Direct Sales reporting unit more than likely incurred a significant decline in its fair value. Our Secured Lending segment has no recorded intangible assets and therefore was not part of this analysis. During fiscal 2018, the Company revised its future outlook with respect to its Direct Sales reporting unit which resulted in a reduction in expected future cash flows. As a result, the Company determined that the fair value of this reporting unit declined below its carrying value and recorded a $1.4 million impairment of goodwill and a $1.3 million impairment of indefinite-lived intangible assets in fiscal 2018. The Company used both the relief from royalty valuation method to determine the estimated fair value of this reporting unit's indefinite-lived intangibles (i.e., trade name). The key assumptions used in the royalty valuation method were long-term growth rate of 3.0% , pre-tax royalty rate of 0.5% , normalized tax rate 27.0% , and discount rate of 30.0% The Company used both the income valuation approach and the market transaction approach to determine the estimated fair value of this reporting unit's goodwill based on a 75% and 25% weighting, respectively. The key assumptions used in the income valuation approach were long-term growth rate of 3.0% , normalized tax rate 27.0% , normalized net working capital of 5.0% and discount rate of 30.0% . The key assumptions used in the market transaction approach were based on market multiples that were estimated per the Company's initial cash flow projections (first quarter of fiscal 2018) that were applied to the Company's lower fourth quarter fiscal 2018 cash flow projections of revenue of earnings before interest, taxes, depreciation and amortization ("EBITDA"). Revenue multiples ranged from 0.05 x to 0.10 x and EBITDA multiples ranged from 1.04 x to 2.52 x. Fiscal 2017 No impairments were recorded in fiscal 2017. Estimated amortization expense on an annual basis for the succeeding five years is as follows (in thousands): Fiscal Year Ending June 30, Amount 2019 $ 1,011 2020 1,011 2021 599 2022 571 2023 128 Thereafter 378 Total $ 3,698 |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Jun. 30, 2018 | |
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 these 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 June 30, 2018 June 30, 2017 Equity method investment $ 7,888 $ 7,467 Cost method investment 500 500 $ 8,388 $ 7,967 Equity Method Investment The Company applies the equity method of accounting for its investment in which it has aggregate ownership interest of 20.6% . Under the equity method of accounting, the carrying value of the investment is adjusted for the Company's proportional share of the investee's reported earnings or losses with the corresponding share of earnings or losses reported in other income (expense) on the consolidated statements of operations. The Company's proportionate share of the investee’s net income totaled $421,000 and $94,000 for the years ended June 30, 2018 and 2017 , respectively. Cost Method Investment The Company applies the cost method to its investment in which its ownership percentage, based on the number of fully dilutive common shares outstanding, was 2.5% as of June 30, 2018 and June 30, 2017 . As of June 30, 2018 and June 30, 2017 , the aggregate carrying balance of this investment was $0.5 million . |
Accounts Payable
Accounts Payable | 12 Months Ended |
Jun. 30, 2018 | |
Accounts Payable, Current [Abstract] | |
Accounts Payable | ACCOUNTS PAYABLE Accounts payable consists of the following: in thousands June 30, 2018 June 30, 2017 Trade payables to customers $ 175 $ 277 Advances from customers 42,615 36,382 Deferred revenue 2,107 3,777 Other accounts payable 1,100 1,511 $ 45,997 $ 41,947 |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Transactions | 12 Months Ended |
Jun. 30, 2018 | |
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 changes 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. 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, both of which are recorded in cost of sales in the consolidated statements of operations. Commodity Price Management The Company manages the value of certain 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 in the consolidated statement of operations 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 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). As such, for the Company's derivative contracts with the same counterparty, the receivables and payables have been netted on the 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 June 30, 2018 and June 30, 2017 . June 30, 2018 June 30, 2017 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 $ 2,602 $ (328 ) $ — $ 2,274 $ 1,625 $ (694 ) $ — $ 931 Option contracts 390 — — 390 — — — — Future contracts 238 — — 238 1,273 — — 1,273 Forward contracts 4,577 (84 ) — 4,493 15,754 (371 ) — 15,383 $ 7,807 $ (412 ) $ — $ 7,395 $ 18,652 $ (1,065 ) $ — $ 17,587 Nettable derivative liabilities: Open sale and purchase commitments $ 17,132 $ (647 ) $ — $ 16,485 $ 31,568 $ (1,783 ) $ — $ 29,785 Margin accounts 5,988 — (2,184 ) 3,804 7,936 — (3,139 ) 4,797 Liability of price protection programs 168 — — 168 — — — — $ 23,288 $ (647 ) $ (2,184 ) $ 20,457 $ 39,504 $ (1,783 ) $ (3,139 ) $ 34,582 Gains or Losses on Derivative Instruments The Company records the derivative at the trade date with a corresponding unrealized gain (loss), shown as a component of cost of sales in the consolidated statements of operations. The Company adjusts the derivatives to fair value on a daily basis until the transactions are settled. When these contracts are net settled, the unrealized gains and losses are reversed and the realized gains and losses for forward contracts are recorded in revenue and cost of sales, and the net realized gains and losses for futures and option contacts are recorded in cost of sales. Below is a summary of the net gains (losses) on derivative instruments for the years ended June 30, 2018 and 2017 . in thousands Years Ended June 30, 2018 2017 Gains (losses) on derivative instruments: Unrealized gains (losses) on open future commodity and forward contracts and open sale and purchase commitments, net $ 2,351 $ (17,738 ) Realized gains on future commodity contracts, net 13,271 27,392 $ 15,622 $ 9,654 The Company’s net gains on derivative instruments, as shown in the table above, were substantially offset by the changes in fair market value of the underlying precious metals inventory and open sale and purchase commitments, which were also recorded in cost of sales in the consolidated statements of operations. Summary of Hedging Positions 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 June 30, 2018 and at June 30, 2017 . in thousands June 30, 2018 June 30, 2017 Inventory $ 280,116 $ 284,659 Precious metals held under financing arrangements 262,566 — 542,682 284,659 Less unhedgeable inventory: Commemorative coin inventory, held at lower of cost or market (99 ) (40 ) Premium on metals position (3,530 ) (4,088 ) Precious metal value not hedged (3,629 ) (4,128 ) 539,053 280,531 Commitments at market: Open inventory purchase commitments 342,287 587,687 Open inventory sales commitments (138,022 ) (121,602 ) Margin sale commitments (5,988 ) (7,936 ) In-transit inventory no longer subject to market risk (1,060 ) (3,931 ) Unhedgeable premiums on open commitment positions 541 495 Borrowed precious metals (280,346 ) (5,625 ) Product financing arrangements (113,940 ) (135,343 ) Advances on industrial metals 6,044 1,580 (190,484 ) 315,325 Precious metal subject to price risk 348,569 595,856 Precious metal subject to derivative financial instruments: Precious metals forward contracts at market values 274,994 462,231 Precious metals futures contracts at market values 72,421 133,450 Total market value of derivative financial instruments 347,415 595,681 Net precious metals subject to commodity price risk $ 1,154 $ 175 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 June 30, 2018 and June 30, 2017 , the Company had the following outstanding commitments and open forward and future contracts: in thousands June 30, 2018 June 30, 2017 Purchase commitments $ 342,287 $ 587,687 Sales commitments $ (138,022 ) $ (121,602 ) Margin sales commitments $ (5,988 ) $ (7,936 ) Open forward contracts $ 274,994 $ 462,231 Open futures contracts $ 72,421 $ 133,450 The contract amounts (i.e., notional balances) of the Company's forward and futures contracts and the open sales and purchase commitments are not reflected in the accompanying 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 June 30, 2018 , 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 on 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 gains (losses) on foreign exchange derivative instruments shown on the face of the consolidated statements of operations totaled $30,000 and $60,000 for the years ended June 30, 2018 and 2017 , 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 are as follows: in thousands June 30, 2018 June 30, 2017 Foreign exchange forward contracts $ 4,130 $ 2,213 Open sale and purchase commitment transactions, net $ 3,026 $ 2,235 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income (loss) from operations before provision for income taxes is shown below: in thousands Year Ended Years Ended June 30, 2018 2017 U.S. $ (3,446 ) $ 10,745 Foreign 35 40 Net (loss) income before provision for income taxes $ (3,411 ) $ 10,785 The Company files a consolidated federal income tax return based on a June 30 tax year end. The (benefit) expense from provision for income taxes for the years ended June 30, 2018 and 2017 consists of the following: in thousands Year Ended Years Ended June 30, 2018 2017 Current: Federal 42 13,642 State and local (96 ) 879 Foreign (27 ) (20 ) (81 ) 14,501 Deferred: Federal 361 (10,117 ) State and local (272 ) (663 ) 89 (10,780 ) Provision for income taxes $ 8 $ 3,721 A reconciliation of the income tax provisions to the amounts computed by applying the statutory federal income tax rate ( 28.06% for 2018 , and 35% for 2017 ) to income before income tax provisions for the years ended June 30, 2018 and 2017 , are set forth below: in thousands Years Ended June 30, 2018 2017 Federal income tax $ (957 ) $ 3,775 State tax, net of federal benefit (98 ) 210 Uncertain tax positions (50 ) (147 ) Change in valuation allowance (56 ) 12 Tax Act 1,244 — Other (75 ) (129 ) Provision for income taxes $ 8 $ 3,721 The schedule of deferred taxes presented below summarizes the components of deferred taxes that have been classified as deferred tax assets and deferred tax liabilities related to taxable temporary differences as of June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Accrued compensation $ 86 $ 121 Deferred rent 236 367 Unrealized loss on open purchase and sale commitments 2,351 5,026 Stock-based compensation 635 582 State tax accrual 37 112 Net operating loss carry forwards 1,657 705 Other 141 132 Deferred tax assets 5,143 7,045 Less: valuation allowances — (56 ) Deferred tax assets after valuation allowances 5,143 6,989 Intangible assets (206 ) (1,347 ) Unrealized gain on futures and forward contracts (146 ) (474 ) Fixed assets (5 ) (298 ) Inventories (319 ) (454 ) Earnings from equity method investment (283 ) (296 ) Investment in Partnership (287 ) (161 ) Other (27 ) — Deferred tax liabilities (1,273 ) (3,030 ) Net deferred tax asset $ 3,870 $ 3,959 The effective tax rate decreased to a provision of 0.2% for the year ended June 30, 2018, compared to a provision of 34.5% for the year ended June 30, 2017. The decrease in tax expense of $3.7 million was primarily due to a s shift to an operating loss in June 30, 2018 from operating income in the same year ago period and the impact of the Tax Cuts and Job Act (see below). For the year ending June 30, 2018 , the Company recorded a tax benefit of $1.0 million related to our pre-tax operating loss, offset by the impact of a one-time revaluation tax charge of $1.2 million related to the Tax Cuts and Job Act (see below). The remainder of the difference was due to normal course movements and non-material items. Tax Cuts and Jobs Act On December 22, 2017, the comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act makes broad and complex changes to the U.S. tax code. The Tax Act reduces the corporate tax rate from 35.0% to 21.0% for tax years beginning after December 31, 2017. For fiscal year taxpayers, a blended tax rate is required to compute the current tax liability. This is the result of using the income tax rate of 35.0% for the first and second quarters of fiscal year 2018 and the reduced income tax rate of 21.0% for the third and fourth quarters of fiscal year 2018. With respect to deferred tax assets (net of deferred tax liabilities) that are in existence as of the enactment date (i.e., valued using a 35.0 % federal tax rate), the Company has been negatively impacted by the (1) new corporate tax rates, and (2) the effective date of the new provision to preclude taxpayers from carrying net operating losses (NOLs) back to prior taxable years. As such, the realization of such deferred taxes post enactment have been realized at a lower 28.06% blended tax rate, or a 21.0% tax rate to the extent realized after fiscal 2018 . We continue to analyze the impact of the Tax Act primarily related to our state income taxes. Our accounting for the estimated tax effects of the Tax Act will be completed during the measurement period, which should not extend beyond one year from the enactment date. Tax Balances and Activity Income Taxes Receivable and Payable As of June 30, 2018 and June 30, 2017 , income taxes receivable totaled $1.6 million and $0.0 million , respectively. As of June 30, 2018 and June 30, 2017 , income taxes payable totaled $0.0 million and $1.4 million , respectively. Deferred Tax Assets and Liabilities In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized by evaluating both positive and negative evidence. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. As of June 30, 2018 and June 30, 2017 , management concluded that with the exception of certain state net operating losses, it was more likely than not that the Company would be able to realize the benefit of the U.S. federal and state deferred tax assets. We based this conclusion on historical and projected operating performance, as well as our expectation that our operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets. As of June 30, 2018 , the consolidated balance sheet reflects the deferred tax items for each tax-paying component (i.e., federal and state), resulting in a state deferred tax asset of $1.7 million and a federal deferred tax asset of $2.2 million . As of June 30, 2017 , the consolidated balance sheet reflects the deferred tax items for each tax-paying component (i.e., federal and state), resulting in a state deferred tax asset of $1.4 million and a federal deferred tax asset of $2.5 million . Net Operating Loss Carryforwards and Valuation Allowances As of June 30, 2018 and June 30, 2017 , the Company has approximately $2.9 million and $0.0 million of federal net operating loss carryforwards and approximately $15.5 million and $12.5 million , state and city net operating loss carryforwards, respectively. The Company's combined federal, state and city tax-effected net operating loss carryforwards totaled, as of June 30, 2018 and June 30, 2017 , $1.7 million and $0.7 million , respectively. These net operating loss carryforwards start to expire in the year ending June 30, 2022 . The change in state net operating loss is a result of a change in the estimated use of net operating losses at June 30, 2017 versus the actual amount used when completed tax returns were filed. As of June 30, 2018 and June 30, 2017 , the Company had $0 and $56,000 , 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. The change in the valuation allowance is a result of the settlement of a state tax audit and the expiration of statute of limitation. Unrecognized Tax Benefits The Company has taken or expects to take certain tax benefits on its income tax return filings that it has not recognized a tax benefit (i.e., an unrecognized tax benefit) on its consolidated statements of operations. The Company's measurement of its uncertain tax positions is based on management's assessment of all relevant information, including, but not limited to prior audit experience, audit settlement, or lapse of the applicable statute of limitations. Below is a reconciliation of the net unrecognized tax benefits for the years ended June 30, 2018 and June 30, 2017 : in thousands Years Ended June 30, 2018 2017 Beginning balance $ 197 $ 280 Reductions due to lapse of statute of limitations (2 ) (97 ) Additions as a result of tax positions taken during current period — 14 Reductions as a result of tax positions of prior years (48 ) — Ending balance $ 147 $ 197 In addition to the $147,000 of accrued tax expense related to unrecognized tax positions, as shown in the table above, the Company accrued $48,000 of interest and $40,000 of penalties related to its uncertain tax positions. As of June 30, 2018 , the amount of this accrued liability (inclusive of the uncertain tax deductions and the associated interest and penalty accrual) totaled $235,000 , and, if recognized, would reduce the Company's effective tax rate. For the years ended June 30, 2018 and 2017 , the Company recognized reductions of interest expense of $50,000 and $26,000 , respectively, as well as, reductions of penalties of $13,000 and $39,000 , respectively, related to our uncertain tax positions. Tax Examinations With exception of the items noted below, either prior federal, state or local examinations have been completed by the tax authorities or the statute of limitations have expired for U.S. federal, state and local income tax returns filed for the years through June 30, 2012. Internal Revenue Service — June 30, 2008 through June 30, 2013 During the year ended June 30, 2018 , the Former Parent settled its IRS appeal for the tax years ended June 30, 2008 through 2013. As a result, the Former Parent amended its states filings that resulted in a state tax benefit of approximately $0.3 million to the Company. Generally, the state statute for examining the specific items that were included in the amendment is two years from the date of filing. Internal Revenue Service — June 30, 2015 In a prior fiscal year, the Internal Revenue Service notified the Company of an examination for the year ended June 30, 2015. The Company settled this examination during the year ended June 30, 2018, which was closed subsequent to to June 30, 2018. The impact of the IRS examination is immaterial to the financial statements. Utah State — June 30, 2011 through June 30, 2013 The Former Parent remains under exam with the state of Utah for the years ended June 30, 2011 through 2013. The Former Parent and the Company, as a subsidiary in a consolidated tax filing, are unable to determine the outcome of this exam at this time. Utah State — June 30, 2014 through June 30, 2017 During the year ended June 30, 2018, the Company was notified by the state of Utah that the tax returns for the period ended June 30, 2014 through 2017 were selected for exam. The Company is unable to determine the outcome at this time. New York — March 14, 2014 through June 30, 2014 (Former Parent) In a prior fiscal year, the Former Parent was notified by the New York Department of Taxation and Finance that its tax return was under examination for the period ended June 30, 2014, which included the Company’s short period tax return through March 14, 2014. The former parent closed this exam during the year ended June 30, 2018. There was no change to the tax returns filed as a result of this examination. New York — June 30, 2014 through June 30, 2016 (A-Mark Precious Metals Inc.) In a prior fiscal year, the Company was notified by the New York Department of Taxation and Finance that its tax returns for the periods ended June 30, 2014, June 30, 2015 and June 30, 2016 were selected for audit. The Company is unable to determine the outcome of the audit at this time. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Former Parent and its Subsidiaries In addition to transactions with other affiliates as indicated below, the Company engages with Stack’s Bowers Numismatics LLC ("Stack's Bowers"), a wholly owned subsidiary of the Former Parent, in (i) sales and purchase transactions, and (ii) transactions in which the Company assists Stack’s Bowers in financing the purchase of rare coins and precious metals products, both through precious metal repurchase arrangements in which the Company receives a fee based upon the commodity value of the coins, and through loans to Stack’s Bowers from CFC secured by the coins or precious metal. The effect of these transactions is included in the following tables. Balances with Affiliated Companies or Persons As of June 30, 2018 and June 30, 2017 , the Company had related party receivables and payables balances as set forth below: in thousands June 30, 2018 June 30, 2017 Receivables Payables Receivables Payables Former Parent/Stack's Bowers $ 13,240 (1) $ — $ — $ 27 Equity method investee — 920 (2) — 558 SilverTowne — 242 (3) — 1,768 Goldline Lenders — 7,710 (4) — — $ 13,240 $ 8,872 — $ 2,353 _________________________________ (1) Balance principally includes two secured lines of credit with a balance of $3.0 million and $9.5 million (shown as a component of secured loans receivables). See "Secured Lines of Credit with Stack's Bowers", below. (2) Balance represents mostly open trade payables. (3) Balance (net) includes (a) a trade receivables of $0.3 million (shown as a component of receivables), and (b) a contingent earn-out liability of $0.6 million (shown as a component of other long-term liabilities). (4) Balance includes the face value of the Goldline Credit Facility of $7.5 million, and the associated estimated debt funding fees payable of $0.2 million (shown as debt obligation - related party). The Goldline Credit facility and the debt funding fee are payable in August 2020. Secured Lines of Credit with Stack's Bowers On September 19, 2017, CFC entered into a loan agreement with Stack's Bowers providing a secured line of credit, bearing interest at a competitive rate per annum, with a maximum borrowing line of $5.3 million . The loan is secured by precious metals and numismatic products. As of June 30, 2018 and June 30, 2017 , the aggregate carrying value of this loan was $3.0 million and $0.0 million , respectively. On March 1, 2018, CFC entered into a loan agreement with Stack's-Bowers providing a secured line of credit on the wholesale value (i.e., the excess over the spot value of the metal), of numismatic products bearing interest at a competitive rate per annum, with a maximum borrowing line of $10.0 million . In addition to the annual rate of interest, the Company is entitled to receive a participation interest equal to 10% of the net profits realized by Stack's Bowers on the ultimate sale of the products. As of June 30, 2018 and June 30, 2017 , the aggregate carrying value of this loan was $9.5 million and $0.0 million , respectively. Note payable to SilverTowne On August 31, 2016, the Company signed a $500,000 promissory note with SilverTowne that was payable in one year related to our acquisition of AMST. This note was paid in full in August 2017. Long Term Debt Obligation with Goldline Lenders As of June 30, 2018 , the carrying value of the long term debt obligation payable to Goldline Lenders totaled $7.2 million , and is shown in the consolidated balance sheets as debt obligation (related party). The face value of this debt obligation is $7.5 million and the related unamortized loan funding fee, a contra-liability, totaled $274,000 as of June 30, 2018 (see Note 14 ). The estimated loan funding fee payable to Goldline Lenders as of June 30, 2018 totaled $210,000 and is shown on the consolidated balance sheets as component of other long-term liabilities. Activity with Affiliated Companies or Persons Sales and Purchases Made to Affiliated Companies During the years ended June 30, 2018 and 2017 , the Company made sales and purchases to various companies, which have been deemed to be related parties, as follows: in thousands Years Ended June 30, 2018 2017 Sales Purchases Sales Purchases Former Parent/Stack's Bowers $ 50,512 $ 344,348 $ 47,384 $ 47,979 Equity method investee 359,872 5,959 477,477 2,979 SilverTowne 14,921 7,696 27,834 4,648 $ 425,305 $ 358,003 $ 552,695 $ 55,606 Interest Income Earned from Affiliated Companies During the years ended June 30, 2018 and 2017 , the Company earned interest income related to loans made to Stack's Bowers and related to financing arrangements (including repurchase agreements) with affiliated companies, as set forth below: in thousands Years Ended June 30, 2018 2017 Interest income from secured loans receivables $ 290 $ 171 Interest income from finance products and repurchase arrangements 3,926 2,787 $ 4,216 $ 2,958 Interest Expense Incurred Related to Notes Payable and Long-Term Debt Obligation During the years ended June 30, 2018 and 2017 , the Company incurred interest expense (including debt amortization costs) related to the debt payable to SilverTowne and the Goldline Lenders, as set forth below: in thousands Years Ended June 30, 2018 2017 Interest expense incurred related to notes payable $ — $ 3 Interest expense incurred related to long-term debt obligation $ 648 $ — $ 648 $ 3 Other Income Earned from Equity Method Investee During the years ended June 30, 2018 and 2017 , the Company recorded its proportional share of its equity method investee's net income as other income that total $421,000 and $94,000 , respectively. As of June 30, 2018 and June 30, 2017 , the carrying balance of the equity method investment was $7.9 million and $7.5 million , respectively. |
Financing Agreements
Financing Agreements | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Financing Agreements | FINANCING AGREEMENTS Lines of Credit The Company has an uncommitted demand revolving credit facility ("Trading Credit Facility”) provided to the Company by a syndicate of financial institutions, with Coöperatieve Rabobank U.A. ("Rabobank") acting as lead lender and administrative agent and Natixis, New York Branch acting as syndication agent. The Trading Credit Facility is secured by substantially all of the Company’s assets on a first priority basis. As of June 30, 2018 , the Trading Credit Facility provided the Company with access up to $260.0 million , featuring a $210.0 million base, with a $50.0 million accordion option. The Trading Credit Facility is scheduled to mature on March 29, 2019 . As of June 30, 2018 , the Company incurred $2.6 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 June 30, 2018 and June 30, 2017 , the remaining unamortized balance was approximately $0.5 million and $0.1 million , respectively. The Company routinely uses the Trading Credit Facility to purchase and finance precious metals 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 2.09% and 1.17% as of June 30, 2018 and June 30, 2017 , respectively. Borrowings are due on demand and totaled $200.0 million and $180.0 million at June 30, 2018 and at June 30, 2017 , 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 $22.1 million and $45.6 million as determined on the Friday before June 30, 2018 and on Friday, June 30, 2017 , respectively. The Trading Credit Facility has certain restrictive financial covenants, including one requiring the Company to maintain a minimum tangible net worth. As of June 30, 2018 the minimum tangible net worth financial covenant under the Trading Credit Facility was $47.5 million . The Company is in compliance with all restrictive financial covenants as of June 30, 2018 . Interest expense related to the Company’s lines of credit totaled $7.9 million and $6.4 million , which represents 57.0% and 63.6% of the total interest expense recognized, for the years ended June 30, 2018 and 2017 , respectively. Our lines of credit carried a daily weighted average effective interest rate of 3.96% and 3.18% , respectively, for the years ended June 30, 2018 and 2017 . Debt Obligation On August 28, 2017, in connection with the closing of the Goldline acquisition (see Note 1 ), Goldline, then known as Goldline Acquisition Corp., entered into a privately placed credit facility in the amount of $7.5 million (the “Goldline Credit Facility”) with various lenders (the "Goldline Lenders"). Borrowings under the Goldline Credit Facility were used to finance a portion of the consideration payable pursuant to the Goldline acquisition. The Goldline Credit Facility is secured by a first priority lien on substantially all of the assets of Goldline , and is guaranteed by the Company. Interest on the Goldline Credit Facility is payable quarterly in arrears at the rate of 8.5% per annum, and the Goldline Lenders under the Goldline Credit Facility are entitled to an additional funding fee payment at maturity equal to the greater of 3.0% of the principal amount of the Goldline Credit Facility and 10.0% of cumulative EBITDA (for the periods ending June 30, 2018, 2019 and 2020) of Goldline in excess of $10.0 million , on a pro rata basis. The Goldline Credit Facility has a three -year maturity, and all outstanding principal and unpaid interest is due upon maturity (August 28, 2020). As of June 30, 2018 , the carrying balance of the Goldline Credit facility was $7.2 million , and the remaining unamortized loan cost balance was approximately $0.3 million , which is amortized ratably through the maturity date. As of June 30, 2018 , the balance of the loan fee payable was $0.2 million . Interest expense related to the Goldline Credit Facility (including debt loan amortization costs) totaled $648,000 which represents 4.7% of the total interest expense recognized, for the year ended June 30, 2018 . The Goldline Credit Facility's weighted average effective interest rate was 9.25% for the year ended June 30, 2018 . The obligations of Goldline and the Company under the Goldline Credit Facility are subordinated to the Company’s obligations under the Trading Credit Facility (see Lines of Credit, above in Note 14 ). Under the subordination agreements, the Goldline Lenders are permitted to collect quarterly interest-only payments and a balloon payment of principal and accrued interest at the end of the loan term, provided that no event of default is continuing under the Trading Credit Facility and the Company is in pro-forma compliance with the financial covenants under the Trading Credit Facility. Goldline Lenders The following table shows the directors, executive officer and principal stockholder that participated in the Goldline Credit Facility transaction, and provides related information: Goldline Lenders Position/Relationship Amount of Company Indebtedness Acquired (1) Gregory N. Roberts Chief Executive Officer, Director and principal stockholder (2) $ 587,500 (2) William D. Richardson Principal stockholder (3) 587,500 (3) Jeffrey D. Benjamin Chairman of the Board and Director 1,000,000 Ellis Landau Director 375,000 William Montgomery Director 1,500,000 Jess Ravich Director 500,000 (4) 4,550,000 7 other persons Non-affiliated members 2,950,000 $ 7,500,000 _________________________________ (1) The amount shown is expected to remain outstanding throughout the term of the Goldline Credit Facility, with repayment due in August 2020. (2) Silver Bow Ventures LLC (“Silver Bow”) is the Lender. Mr. Roberts holds 50% of the ownership interests in and controls Silver Bow. Accordingly, the amount of indebtedness shown, and the interest amounts potentially payable on such indebtedness shown, represent 50% of the aggregate amounts of indebtedness held by and potential interest payable to Silver Bow. (3) Silver Bow is the Lender. Mr. Richardson holds 50% of the ownership interests in and controls Silver Bow. Accordingly, the amount of indebtedness shown, and the interest amounts potentially payable on such indebtedness shown, represent 50% of the aggregate amounts of indebtedness held by and potential interest payable to Silver Bow. (4) Libra Securities Holdings, LLC is the Lender. Mr. Ravich and a trust for his family members holds 100% of the ownership interests and controls Libra Securities Holdings, LLC. Liability on Borrowed Metals The Company recorded liabilities on borrowed precious metals with market values totaling $280.3 million and $5.6 million as of June 30, 2018 and June 30, 2017 , respectively, with the corresponding inventory reflected on the consolidated balance sheets. Advanced pool metals The Company borrows precious metals (usually in the form of pool metals) from its suppliers and customers under short-term agreements using other precious metals from its inventory as collateral. Amounts under these arrangements require repayment either in the same form of the metals borrowed or in cash. The Company has the ability to sell the metals and to repurchase similar metals as needed, under the terms of the arrangement, in order to repay the obligation. Once the obligation is repaid, the metals held as collateral are released back to the Company. Liability on borrowed metals — Other Liabilities may also arise from: (1) unallocated metal positions held by customers in the Company’s inventory, (2) amounts due to suppliers for the use of consigned inventory, and (3) shortages in unallocated metal positions held by the Company in the supplier’s inventory. Unallocated or pool metal represent an unsegregated inventory position that is due on demand, is a specified physical form, based on the total ounces of metal held in the position. Amounts due under these arrangements require delivery either in the form of precious metals, or in cash. Product Financing Arrangements The Company has agreements with financial institutions (third parties) that allows the Company to transfer its gold and silver inventory at an agreed-upon price based on the spot price with 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 a 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 are reflected in the 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 consolidated statements of operations. Such obligation totaled $113.9 million and $135.3 million as of June 30, 2018 and June 30, 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases The Company leases approximately 9,000 square feet of office space in El Segundo, California at a cost of $3.71 per square foot per month. The term of this lease expires on March 31, 2026 and contains annual base rent increases in cost of 3% . The Company leases approximately 17,600 square feet of warehouse space in Las Vegas, Nevada at a cost of approximately $1.59 per square foot per month. The term of this lease expires on April 30, 2025 and contains annual base rent increases of 3% . The Company leases approximately 21,500 square feet of office space in Los Angeles, California at a cost of $2.68 per square foot per month. The term of this lease expires on February 28, 2022 with annual base rent increases of 3% and the Company has the option to renew the lease term for an additional five years at the then current market rate. The lease requires the payment of related property taxes, insurance, maintenance and other cost related to the leased property. In addition, the Company provided the landlord of the office space in Los Angeles, California a standby letter of credit for $400,000 in value in lieu of a security deposit. This letter of credit is renewed annually and reduces each lease anniversary date as provided in the lease agreement. Expenses related to operating leases (including lease expense for the common space rental) were $1.3 million , and $0.8 million , respectively, for the years ended June 30, 2018 and 2017 . Future minimum lease payments under the Company's lease arrangements with noncancellable lease terms in excess of one year as of June 30, 2018 are as follows: (in thousands) Years ending June 30, Operating Capital 2019 $ 1,448 $ 10 2020 1,491 10 2021 1,528 10 2022 1,250 5 2023 834 — Thereafter 2,044 — $ 8,595 35 Less amounts representing interest (2 ) $ 33 Employment and Non-Compete Agreements The Company has entered into employment agreements and non-compete and/or non-solicitation agreements with Greg Roberts, its CEO, and Thor Gjerdrum, its President, which expire in June 30, 2020 and June 30, 2019, respectively. The employment agreements provide for minimum salary levels, incentive compensation and severance benefits, among other items. Employee Benefit Plan The Company maintains an employee savings plan for United States employees under the Internal Revenue Code section 401(k). Employees are eligible to participate in the plan after three complete calendar months of service and all contributions are immediately vested. Employees' contributions are discretionary to a maximum of 90% of compensation. For all plan members, the Company contributes 30% of the eligible employees' contributions on the first 60% of the participants' compensation to the IRS maximum annual contribution. The Company's matching 401(k) contributions totaled $180,000 and $81,000 for the years ended June 30, 2018 and 2017 , respectively. Litigation, Claims and Contingencies In the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon information currently available to us, any resulting liability, would not have a material adverse effect on the Company's financial position, cash flows, or operations. SGI IRS and State Tax Audits The Company and its Former Parent are under examination with other tax jurisdictions on certain tax matters the Company or its Former Parent have taken. The Company is unable to determine the outcome of these audits at this time. Please see Note 12 for further detail. In general, the majority of state and local examinations have been completed by the tax authorities for the respective jurisdictions through the years ended June 30, 2013 . Further, some jurisdictions’ statute of limitations have expired for U.S. federal, state, and local income tax returns filed by the Former Parent for the years ended through June 30, 2013 . Operational Contingencies In connection with the closing of 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 which, among other things, set weekly minimum order quantities by A-Mark. The agreement has a three -year term, with two automatic two -year renewals (unless terminated prior thereto.) The Company was initially 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; that amount was reduced in April 2017 to 235,000 ounces and was further reduced in subsequent periods. The price paid per ounce is mutually determined by both parties, and is subject to adjustments every six months during the term. Additionally, in connection with the SilverTowne transaction (see Note 1 ), AMST entered into an exclusive supplier agreement, dated August 31, 2016 , with Asahi, whereby Asahi agreed to supply all of AMST's requirements for refined silver used for producing the silver products as to which A-Mark has the exclusive right to distribute. The term of the agreement was initially for three years, with two automatic two -year term renewals (unless terminated prior thereto.) Pricing under the agreement is subject to adjustments every six months. A-Mark has also guaranteed AMST's obligations under its agreement with Asahi to lease 100,000 ounces of refined silver. The lease term is for one year with an automatic one year renewal (unless terminated prior thereto), and the lease fees are subject to adjustments every six months. The Company has guaranteed all of the obligations of Goldline under the Goldline Credit Facility (this guarantee is unconditional and constitutes a guarantee of payment and not merely of collection) (see Note 14 ). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2018 | |
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 most recent quarterly dividends declared pursuant to this policy: Dividend Record Date (at close of Business) Type of Dividend Basis of Payment Payment Date 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 May 2, 2017 May 15, 2017 Cash $ 0.08 per common share May 25, 2017 August 30, 2017 September 18, 2017 Cash $ 0.08 per common share September 27, 2017 November 13, 2017 November 24, 2017 Cash $ 0.08 per common share December 13, 2017 January 30, 2018 February 13, 2018 Cash $ 0.08 per common share February 27, 2018 The Board of Directors determined to suspend the Company's quarterly dividend for both the third and fourth fiscal quarters ended March 31, 2018 and June 30, 2018 in order to increase its financial flexibility and strengthen its balance sheet. Going forward, the Board of Directors will re-assess its capital resources and may or may not determine to reinstate the dividend based on that assessment. 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, which was approved by the Company's stockholders in February 2015. On November 2, 2017, the Company's stockholders approved the amended and restated 2014 Stock Award and Incentive Plan (the "2014 Plan"), to (i) increase the available shares authorized for issuance under the plan by 525,000 shares, (ii) extend the term of the 2014 Plan until 2027, an additional five years, and (iii) eliminate provisions that add back to the share reserve shares surrendered or withheld to pay the exercise price of an option or withheld to cover tax withholding obligations for any type of award, and shares as to which a stock appreciation right is exercised that exceed the number of shares actually delivered. 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, as set by the Compensation Committee, 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 June 30, 2018 , 523,445 shares were available for grant under the 2014 Plan. Valuation and Significant Assumptions of Equity Awards Issued The Company uses the Black-Scholes option pricing model, which uses 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. Stock Options During the years ended June 30, 2018 and 2017 , the Company incurred $1,191,106 and $966,190 of compensation expense related to stock options, respectively. As of June 30, 2018 , there was total remaining compensation expense of $1.5 million related to employee stock options, which will be recorded over a weighted average period of approximately 1.9 years . The following table summarizes the stock option activity for the year ended June 30, 2018 . Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (in thousands) Weighted Average Grant Date Fair Value Per Award Outstanding at June 30, 2017 741,327 $ 17.89 $ 1,514 $ 6.19 Granted 166,605 $ 16.19 Cancellations, expirations and forfeitures (65,417 ) $ 17.50 Outstanding at June 30, 2018 842,515 $ 17.59 $ 821 $ 5.99 Exercisable at June 30, 2018 554,281 $ 16.37 $ 821 $ 6.20 Following is a summary of the status of stock options outstanding at June 30, 2018 : 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 4.35 $ 8.39 134,239 4.35 $ 8.39 $ 10.01 $ 15.00 148,888 6.14 $ 12.55 98,888 4.28 $ 11.94 $ 15.01 $ 25.00 459,388 8.10 $ 20.19 271,154 8.03 $ 20.26 $ 25.01 $ 60.00 100,000 7.65 $ 25.50 50,000 7.65 $ 25.50 842,515 7.11 $ 17.59 554,281 6.44 $ 16.37 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 | 12 Months Ended |
Jun. 30, 2018 | |
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 year ended June 30, 2018 are presented on a comparative basis in the table below: in thousands Years Ended June 30, 2018 2017 Amount Percent Amount Percent Total revenue $ 7,606,248 100.0 % $ 6,989,624 100.0 % Customer concentrations HSBC Bank USA (1) $ 2,039,134 26.8 % $ 1,492,926 21.4 % Mitsubishi Intl. Corp. (1) 1,712,779 22.5 1,171,532 16.8 $ 3,751,913 49.3 % $ 2,664,458 38.2 % ________________________________ (1) Sales with this trading partner is primarily comprised of sales on forward contracts that entered into for hedging purposes rather than sales characterized with the physical delivery of precious metal product. Customers providing 10 percent or more of the Company's accounts receivable as of June 30, 2018 are presented on a comparative basis in the table below: in thousands Years Ended June 30, 2018 2017 Amount Percent Amount Percent Total accounts receivable, net $ 35,856 100.0 % $ 39,295 100.0 % Customer concentrations Customer A $ 14,967 41.7 % $ 27,072 68.9 % Customer B 7,468 20.8 817 2.1 $ 22,435 62.5 % $ 27,889 71.0 % 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. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENTS AND GEOGRAPHIC INFORMATION The Company evaluates segment reporting in accordance with FASB ASC 280, Segment Reporting , each reporting period, including evaluating the organizational structure and the reporting package that is reviewed by the Chief Operating Decision Makers (“CODM”). The Company's operations are organized under three business segments — Wholesale Trading & Ancillary Services, Secured Lending, and Direct Sales. Our Direct Sales segment was created on August 28, 2017 as a result of our recent acquisition (see Note 1 ), and thus comparative prior period data is not applicable ("N/A"). Revenue in thousands Year Ended Three Months Ended September 30, June 30, 2018 June 30, 2017 Revenue by segment Wholesale Trading & Ancillary Services $ 7,538,856 $ 6,989,624 Direct Sales 67,392 (1) N/A Total revenue $ 7,606,248 $ 6,989,624 _________________________________ (1) Includes $22.5 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. The elimination of these intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment. in thousands Year Ended Three Months Ended September 30, June 30, 2018 June 30, 2017 Revenue by geographic region (as determined by the shipping address or where the services were performed) : United States $ 7,081,161 $ 6,537,863 Europe 303,514 260,489 North America, excluding United States 214,895 177,734 Asia Pacific 3,554 7,706 Africa 1 — Australia 3,123 5,832 Total revenue $ 7,606,248 $ 6,989,624 Gross Profit and Gross Margin Percentage in thousands Year Ended Three Months Ended September 30, June 30, 2018 June 30, 2017 Gross profit by segment Wholesale Trading & Ancillary Services $ 24,109 $ 31,334 Direct Sales 5,334 N/A Total gross profit $ 29,443 $ 31,334 Gross margin percentage by segment Wholesale Trading & Ancillary Services 0.320 % 0.448 % Direct Sales 7.915 % N/A Weighted average gross margin percentage 0.387 % 0.448 % Operating Income and Expenses in thousands Years Ended June 30, 2018 2017 Operating income and expenses by segment Wholesale Trading & Ancillary Services Selling, general and administrative expenses $ (21,096 ) $ (21,529 ) Interest income $ 6,473 $ 4,814 Interest expense $ (7,778 ) $ (6,176 ) Other income, net $ 984 $ 358 Secured Lending Selling, general and administrative expenses $ (1,689 ) $ (1,814 ) Interest income $ 9,632 $ 7,739 Interest expense $ (5,465 ) $ (3,941 ) Direct Sales Selling, general and administrative expenses $ (10,613 ) N/A Goodwill and intangible asset impairment $ (2,654 ) N/A Interest expense $ (648 ) N/A Net (loss) income before provision for income taxes in thousands Years Ended June 30, 2018 2017 Net (loss) income before provision for income taxes by segment Wholesale Trading & Ancillary Services $ 2,692 $ 8,801 Secured Lending 2,478 1,984 Direct Sales (8,581 ) N/A Total n et (loss) income before provision for income taxes $ (3,411 ) $ 10,785 Depreciation and Amortization in thousands Years Ended June 30, 2018 2017 Depreciation and amortization by segment Wholesale Trading & Ancillary Services $ (1,560 ) $ (1,511 ) Secured Lending (3 ) (10 ) Direct Sales (1,063 ) N/A Total depreciation and amortization $ (2,626 ) $ (1,521 ) Advertising expense in thousands Years Ended June 30, 2018 2017 Advertising expense by segment Wholesale Trading & Ancillary Services $ (553 ) $ (646 ) Secured Lending (28 ) (27 ) Direct Sales (2,653 ) N/A Total advertising expense $ (3,234 ) $ (673 ) Precious metals held under financing arrangements in thousands June 30, 2018 June 30, 2017 Precious metals held under financing arrangements by segment Wholesale Trading & Ancillary Services $ 262,566 $ — Total precious metals held under financing arrangements $ 262,566 $ — Inventory in thousands June 30, 2018 June 30, 2017 Inventories by segment Wholesale Trading & Ancillary Services $ 272,034 $ 284,659 Direct Sales 8,082 N/A Total inventories $ 280,116 $ 284,659 in thousands June 30, 2018 June 30, 2017 Inventories by geographic region United States $ 273,008 $ 276,809 Europe 1,965 3,154 North America, excluding United States 4,976 4,310 Asia 167 386 Total inventories $ 280,116 $ 284,659 Assets in thousands June 30, 2018 June 30, 2017 Assets by segment Wholesale Trading & Ancillary Services $ 616,522 $ 478,500 Secured Lending 111,304 — Direct Sales 15,175 N/A Total assets $ 743,001 $ 478,500 in thousands June 30, 2018 June 30, 2017 Assets by geographic region United States $ 733,131 $ 469,114 Europe 4,727 4,690 North America, excluding United States 4,976 4,310 Asia 167 386 Total assets $ 743,001 $ 478,500 Long-term Assets in thousands June 30, 2018 June 30, 2017 Long-term assets by segment Wholesale Trading & Ancillary Services $ 31,328 $ 31,479 Secured Lending 102 — Direct Sales 4,588 N/A Total long-term assets $ 36,018 $ 31,479 in thousands June 30, 2018 June 30, 2017 Long-term assets by geographic region United States $ 35,965 $ 31,423 Europe 53 56 Total long-term assets $ 36,018 $ 31,479 Capital Expenditures for Property and Equipment in thousands Years Ended June 30, 2018 2017 Capital expenditures on plant, property and equipment by segment Wholesale Trading & Ancillary Services $ 1,104 $ 2,265 (2) Secured Lending 102 — Direct Sales 111 (1) N/A Total capital expenditures on property and equipment $ 1,317 $ 2,265 _________________________________ (1) Excludes $1.8 million of plant, property and equipment that was part of the net assets acquired from Goldline LLC. (2) Excludes $2.1 million of plant, property and equipment that were part of the net assets acquired from SilverTowne LP. Goodwill and Intangible Assets in thousands June 30, 2018 June 30, 2017 Goodwill and Intangibles by segment Wholesale Trading & Ancillary Services $ 12,516 $ 12,946 Direct Sales 3,226 N/A Total goodwill and intangible assets $ 15,742 $ 12,946 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Suspension of Dividend for Quarter Ended June 30, 2018 The Company's Board of Directors recently determined to suspend the Company's quarterly dividend for the fourth fiscal quarter ended June 30, 2018 in order to increase its financial flexibility and strengthen its balance sheet. Going forward, the Board of Directors will re-assess its capital resources and may or may not determine to reinstate the dividend based on that assessment. Entry into Material Definitive Agreement On September 14, 2018 (the “ABS Closing Date”), AM Capital Funding, LLC (the “Issuer”), an indirect subsidiary of the Company, completed an issuance of Secured Senior Term Notes, Series 2018-1, Class A (the “Class A Notes”) in the aggregate principal amount of $72,000,000 and Secured Subordinated Term Notes, Series 2018-1, Class B (the “Class B Notes” and together with the Class A Notes, the “Notes”) in the aggregate principal amount of $28,000,000 . The Class A Notes bear interest at a rate of 4.98% and the Class B Notes bear interest at a rate of 5.98% . The Notes have a maturity date of December 15, 2023. The Notes were issued under a Master Indenture and the Series 2018 1 Supplement thereto, each dated as of the ABS Closing Date, between the Issuer and Citibank, N.A., as trustee. The Notes will be primarily payable from, and secured by, precious metals (gold, silver, platinum or palladium) and a portfolio of loans collateralized by precious metals (gold, silver, platinum or palladium). Such loans were originated by either CFC or acquired by CFC from Worth Group, Inc. and conveyed by CFC to the Issuer on the ABS Closing Date. The Notes are not insured or guaranteed by A-Mark or CFC. The Notes may only be acquired by persons who are qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended. Reference is made to the Company’s Report on Form 8-K, filed with the Securities and Exchange Commission on September 17, 2018, for additional information regarding the terms of the Notes. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Principles of Consolidation The consolidated financial statements reflect the financial condition, results of operations, statement of stockholder equity and cash flows of the Company, and were prepared using accounting principles generally accepted in the United States (“U.S. GAAP”). These consolidated financial statements include the accounts of A-Mark, and its wholly owned subsidiaries, CFC, AMTAG, TDS, Logistics, Goldline and its majority owned affiliate AMST (collectively the “Company”). All intercompany accounts and transactions have been eliminated in consolidation |
Use of Estimates | Use of Estimates The preparation of 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 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 plant, property and equipment and intangible assets, valuation allowance determination on deferred tax assets, contingent earn-out liabilities, contingent interest liabilities, 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. |
Reclassifications | Reclassifications Certain previously reported amounts have been reclassified for consistency to the current fiscal year's consolidated financial statement presentation. These reclassifications had no effect on the reported results of operations. In the third quarter of fiscal 2018, precious metals held under financing arrangements was included as a component of inventory on the consolidated balance sheets and statements of cash flows. In the fourth quarter of fiscal 2018, precious metals held under financing arrangements is shown as a separate line item on the face of the consolidated balance sheets statements and cash flows. |
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. 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 consolidated statements of operations. 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. |
Business Combinations | Business Combinations The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations . The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. 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 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 the 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 consolidated statements of cash flow. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. |
Precious Metals held under Financing Arrangements | Precious Metals held under Financing Arrangements The Company enters into arrangements with certain customers under which A-Mark purchases precious metals from the customers which are subject to repurchase by the customer at the spot value of the product on the repurchase date. The terms of these transactions are such that the Company has classified this material as precious metals held under financing arrangements, rather than as inventory - repurchase arrangements with customers (Note 6). In these repurchase arrangements, the Company holds legal title to the material and earns financing income for the duration of the agreement. These arrangements are typically terminable by either party upon 14 days' notice. Upon termination, the customer’s right to repurchase any remaining precious metal is forfeited, and the related precious metals are reclassified as inventory held for sale. As of June 30, 2018 and June 30, 2017, precious metals held under financing arrangements totaled $262.6 million and $0.0 million respectively. The Company’s precious metals held under financing arrangements are "marked-to-market". |
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 consolidated statements of operations. 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 | Plant, Property and Equipment 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 . Depreciation commences when the related assets are placed into service. Internal-use software development costs are capitalized during the application development stage. Internal-use software costs incurred during the preliminary project stage are expensed as incurred. Land is recorded at historical cost, and is not depreciated. Repair and maintenance costs are expensed as incurred. We have no major planned maintenance activities related to our plant assets associated with our minting operations. The Company reviews the carrying value of these assets for impairment whenever events and circumstances indicate that the carrying value of the asset may not be recoverable. In evaluating for impairment, the carrying value of each asset or group of assets is compared to the undiscounted estimated future cash flows expected to result from its use and eventual disposition. An impairment loss is recognized for the difference when the carrying value exceeds the discounted estimated future cash flows. The factors considered by the Company in performing this assessment include current and projected operating results, trends and prospects, the manner in which these assets are used, and the effects of obsolescence, demand and competition, as well as other economic factors. |
Finite-lived Intangible Assets | Finite-lived Intangible Assets Finite-lived intangible assets consist primarily of customer relationships, non-compete agreements and employment contracts which are amortized on a straight-line basis over their economic useful lives ranging from three years to fifteen years . We review our finite-lived intangible assets for impairment under the same policy described above for plant, property, and equipment; that is, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived 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-lived intangibles (such as trade names) are not subject to amortization, but are evaluated for impairment at least annually. However, for tax purposes, goodwill acquired in connection with a taxable asset acquisition is generally deductible. The Company evaluates its goodwill and other indefinite-lived intangibles for impairment 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. Goodwill is reviewed for impairment at a reporting unit level, which in our case, corresponds to the Company’s reportable operating segments. Evaluation of goodwill for impairment The Company has the option to 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. A qualitative assessment includes analyzing current economic indicators associated with a particular reporting unit such as changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If, based on this qualitative assessment, management concludes that goodwill is more likely than not to be impaired, or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis to determine the fair value of the business, and compare the calculated fair value of the reporting unit with its carrying amount, including goodwill. If through this quantitative analysis the Company determines the fair value of a reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not to be impaired. If the Company concludes that the fair value of the reporting unit is less than its carrying value, a goodwill impairment loss will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value (see Note 8 ). Evaluation of indefinite-lived intangible assets for impairment The Company evaluates its indefinite-lived intangible assets (i.e., trademarks and trade-names) for impairment. In assessing its indefinite-lived intangible assets for impairment, the Company has the option to first perform a qualitative assessment to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, the Company is not required to perform any additional tests in assessing the asset for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis to determine if the fair value of an indefinite-lived intangible asset is less than its carrying value. If through this quantitative analysis the Company determines the fair value of an indefinite-lived intangible asset exceeds its carrying amount, the indefinite-lived intangible asset is considered not to be impaired. If the Company concludes that the fair value of an indefinite-lived intangible asset is less than its carrying value, an impairment loss will be recognized for the amount by which the carrying amount exceeds the indefinite-lived intangible asset’s fair value. The methods used to estimate the fair value measurements of the Company’s reporting units and indefinite-lived intangible assets include those based on the income approach (including the discounted cash flow, and relief-from-royalty methods) and those based on the market approach (primarily the guideline transaction and guideline public company methods) (see Note 8 ). |
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 We record an estimate of the fair value of contingent consideration related to the earn-out obligation to SilverTowne LP related to the SilverTowne Mint acquisition. 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 Settlement Date Accounting Substantially all of the Company’s sales of precious metals are conducted using sales contracts that meet the definition of derivative instruments in accordance with the Derivatives and Hedging Topic 815 of the ASC ("ASC 815"). The contract underlying A-Mark’s commitment to deliver precious metals is referred to as a “fixed-price forward commodity contract” because the price of the commodity is fixed at the time the order is placed. Revenue is recognized on the settlement date, which is defined as the date on which: (1) the quantity, price and specific items being purchased have been established, (2) metals have been delivered to the customer, and (3) payment has been received or is covered by the customer’s established credit limit with the Company. All derivative instruments are marked to market during the interval between the trade date and the settlement date, with the changes in the fair value charged to cost of sales. The Company’s hedging strategy to mitigate the market risk associated with its sales commitments is described separately below under the caption “Hedging Activities.” Trades Types of Products that are Physically Delivered The Company’s contracts to sell precious metals to customers are usually settled with the physical delivery of metals to the customer, although net settlement (i.e., settlement at an amount equal to the difference between the contract value and the market price of the metal on the settlement date) is permitted. Below is a summary of the Company’s major trade order types and the key factors that determine when settlement occurs and when revenue is recognized for each type: • Traditional physical trade orders — The quantity, specific product, and price are determined on the trade date. Payment or sufficient credit is verified prior to delivery of the metals on the settlement date. • Consignment trade orders — The Company delivers the items requested by the customer prior to establishing a firm trade order with a price. Settlement occurs and revenue is recognized once the customer confirms its order (quantity, specific product and price) and remits full payment for the sale. • Provisional trade orders — The quantity and type of metal is established at the trade date, but the price is not set. The customer commits to purchasing the metals within a specified time period, usually within one year, at the then-current market price. The Company delivers the metal to the customer after receiving the customer’s deposit, which is typically based on 110% of the prevailing current spot price. The unpriced metal is subject to a margin call if the deposit falls below 105% of the value of the unpriced metal. The purchase price is established and revenue is recognized at the time the customer notifies the Company that it desires to purchase the metal. • Margin trade orders — The quantity, specific product and price are determined at trade date; however, the customer is allowed to finance the transaction through the Company and to defer delivery by committing to remit a partial payment (approximately 20%) of the total order price. With the remittance of the partial payment, the customer locks in the purchase price for a specified time period (usually up to two years from the trade date). Revenue on margin trade orders is recognized when the order is paid in full and delivered to the customer. • Borrowed precious metals trade orders for unallocated positions — Customers may purchase unallocated metal positions in the Company's inventory. The quantity and type of metal is established at the trade date, but the specific product is not yet determined . Revenue is not recognized until the customer selects the specific precious metal product it wishes to purchase, full payment is received, and the product is delivered to the customer. |
Hedging Activities | Hedging Activities The value of our inventory and our purchase and sale 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 credit worthy financial institutions. The Company hedges by each commodity type (gold, silver, platinum, and palladium). All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Commodity forward, futures and option contracts entered into for hedging purposes are recorded at fair value on the trade date and are marked to market each period. The difference between the original contract values and the market values of these contracts are reflected as derivative assets or derivative liabilities in the consolidated balance sheets at fair value, with the corresponding unrealized gain or losses included as a component of cost of sales. When these contracts are net settled, the unrealized gains and losses are reversed and the realized gains and losses for forward contracts are recorded in revenue and cost of sales and the net realized gains and losses for futures and option contracts are recorded in cost of sales. The Company enters into futures, forward and option contracts solely for the purpose of hedging our inventory holding risk and our liability on price protection programs, 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 consolidated statements of operations (see Note 11 .) |
Interest Income | Interest Income In accordance with the Interest Topic 835 of the ASC ("ASC 835") following are interest income generating activities of the Company: • Secured Loans -- The Company uses the effective interest method to recognize interest income on its secured loans transactions. 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 resolved. Cash receipts on impaired loans are recorded first against the principal and then to any unrecognized interest income (see Note 5 .) • Margin accounts -- The Company earns a fee (interest income) under financing arrangements related to margin trade orders over the period during which customers have opted to defer making full payment on the purchase of metals. • Repurchase agreements -- Repurchase agreements represent a form of secured financing whereby the Company sets aside specific metals for a customer and charges a fee on the outstanding value of these metals. The customer is granted the option (but not the obligation) to repurchase these metals at any time during the open reacquisition period. This fee is earned over the duration of the open reacquisition period and is classified as interest income. • Spot deferred trade orders -- Spot deferred trade orders are a special type of forward delivery trade that enable customers to purchase or sell certain precious metals from/to the Company at an agreed upon price but, are allowed to delay remitting or taking delivery up to a maximum of two years from the date of trade. Even though the contact allows for physical delivery, it rarely occurs for this type of trade. As a result, revenue is not recorded from these transactions, because no product is delivered to the customer. Spot deferred trades are considered a type of financing transaction, where the Company earns a fee (interest income) under spot deferred arrangements over the period in which the trade is open. |
Interest Expense | Interest Expense The Company accounts for interest expense on the following arrangements in accordance with Interest Topic 835 of the ASC ("ASC 835"): • Borrowings -- The Company incurs interest expense from its lines of credit and its debt obligations using the effective interest method (see Note 14 .) Additionally, the Company amortizes capitalized loan costs to interest expense over the period of the loan agreement. • Loan servicing fees -- When the Company purchases loan portfolios, the Company may have the seller service the loans that were purchased. The Company incurs a fee based on total interest charged to borrowers over the period the loans are outstanding. The servicing fee incurred by the Company is charged to interest expense. • Product financing arrangements -- The Company incurs financing fees (classified as interest expense) from its product financing arrangements (also referred to as reverse-repurchase arrangements) with third party finance companies for the transfer and subsequent option to reacquire its precious metal inventory at a later date. These arrangements are accounted for as secured borrowings. During the term of this type of agreement, the third party charges a monthly fee as a percentage of the market value of the designated inventory, which the Company intends to reacquire in the future. No revenue is generated from these trades. The Company enters this type of transaction for additional liquidity. • Borrowed metals fees -- The Company may incur financing costs from its liabilities on borrowed metal arrangements. The Company borrows precious metals (usually in the form of pool metals) from its suppliers and customers under short-term arrangements using other precious metals from its inventory as collateral. Typically, during the term of these arrangements, the third party charges a monthly fee as a percentage of the market value of the collateral (determined at the spot price) plus certain processing and other fees. The Company enters this type of transaction as an additional source of liquidity, and usually monetizes the metals received under such arrangements. Repayment is usually required in the same form as the metals advanced, or in cash. |
Other Income | Other Income The Company's other income is derived from the Company's proportional interest in the reported net income or net loss in an investee accounted for under the equity method of accounting and the gains or losses associated with revaluation adjustments to the contingent earn-out liability associated with its AMST investment. |
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 consolidated statements of operations. |
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 consolidated financial statements. The expense is adjusted for actual forfeitures of unvested awards as they occur. |
Income Taxes | Income Taxes As part of the process of preparing its 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 new 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 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 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 consolidated statements of operations. 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 consolidated financial position. Based on our assessment it appears more likely than not that all of the net deferred tax assets will be realized through future taxable income. The Company's 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 of the company when it was 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. |
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 (losses) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings (losses) 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 Not Yet Adopted | Recently Adopted Accounting Pronouncements From time to time, the Financial Accounting Standards Board ("FASB") or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). The Company has elected to early adopt ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment, effective with the annual review performed in the fourth quarter of 2018. On a prospective basis, the adoption of this ASU eliminates requirements to measure the fair value of each asset and liability to quantify the amount of impairment. Instead, goodwill impairment is simply measured by the excess of the carrying value of the reporting unit over its fair value (limited to the total amount of goodwill allocated to that reporting unit). 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. In March 2018, the FASB issued ASU No. 2018-05, “ Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ”, to add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118 (“SAB 118”), to ASC 740 “Income Taxes”. SAB 118 was issued by the SEC in December 2017 to provide immediate guidance for accounting implications of U.S. tax reform under the “Tax Cuts and Jobs Act” (the “Tax Act”). SAB No. 118 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Reform Act. SAB No. 118 provides guidance where: (i) the accounting for the income tax effect of the Tax Reform Act is complete and reported in the Tax Reform Act’s enactment period, (ii) the accounting for the income tax effect of the Tax Reform Act is incomplete and reported as provisional amounts based on reasonable estimates (to the extent determinable) subject to adjustments during a limited measurement period until complete, and (iii) accounting for the income tax effect of the Tax Reform Act is not reasonably estimable (no related provisional amounts are reported in the enactment period) and entities would continue to apply accounting based on tax law provisions in effect prior to the Tax Reform Act enactment until provisional amounts are reasonably estimable. SAB No. 118 requires disclosure of the reasons for incomplete accounting additional information or analysis needed, among other relevant information. The Company has evaluated the potential impacts of SAB 118 and has applied this guidance to its consolidated financial statements and related disclosures beginning in the second quarter of its fiscal year 2018. For additional information on SAB 118 and the impacts of the Tax Act on the Company’s consolidated financial statements and related disclosures see Note 12 . Recent Accounting Pronouncements Not Yet Adopted 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 (for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years). ASU 2017-01 should be applied prospectively and we do not believe that its adoption will have a material impact on our consolidated financial position, results of operations or cash flows and related disclosures. 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. We will adopt the requirements of the new standard in the first quarter of fiscal 2019 and do not currently expect adoption to have a material impact on our financial statements. In February 2016, FASB issued ASU No. 2016-02, (“ASU 2016-02”), Leases (Topic 842) . 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 new guidelines, but believe that adoption will not have a material impact on our consolidated financial position, results of operations or cash flows and related disclosures, 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("ASU 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 ("ASC 606"), the effective date for the Company is July 1, 2018 (for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years). Either the retrospective or cumulative effect transition method is permitted. The Company has evaluated the impact of this new pronouncement and does not believe the implementation of ASC 606 will have a significant effect on the financial results of the Company for fiscal years beginning on and after July 1, 2018. This is because the major portion of the Company's revenues fall under the authoritative guidance of ASC 815, which are outside the scope of ASC 606. |
Description of Business (Tables
Description of Business (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of purchase price allocation | The Revised Provisional Purchase Price of $9.5 million has been allocated to the acquired net assets purchased based on their fair values as follows (shown in thousands, and liability balances shown as negative amounts): Working capital net assets: Receivables, net $ 605 Derivative assets 825 Inventory 12,403 Prepaid expenses and other assets 856 Accounts payable and accrued liabilities (2,111 ) Liability on borrowed metals (8,949 ) Deferred income (2,284 ) Subtotal $ 1,345 Property and equipment 1,806 Intangible assets (identifiable): Trade names $ 2,200 Existing customer relationships 1,300 Customer lead list 1,100 Other 400 Subtotal 5,000 Goodwill: Excess of cost over fair value of assets acquired 1,364 (1) $ 9,515 _________________________________ (1) During the fourth quarter of fiscal 2018, the Company adjusted its estimate of Revised Provisional Purchase Price, which included $86 decrease in the gross carrying amount of the acquired goodwill from $1,450 to $1,364. |
Unaudited pro-forma information | The following unaudited pro-forma information for the years ended June 30, 2018 and 2017 assumes the acquisition of the net assets of Goldline, LLC occurred on July 1, 2016, that is, the first day of fiscal year 2017: in thousands, except for EPS (Unaudited) Years Ended June 30, June 30, 2018 June 30, 2017 Pro-forma revenue $ 7,607,405 $ 7,090,784 Pro-forma net (loss) income $ (3,341 ) $ 6,917 Pro-forma basic (loss) earnings per share $ (0.48 ) $ 0.98 Pro-forma dilutive (loss) earnings per share $ (0.48 ) $ 0.97 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of contingent earn out liability | Below is a reconciliation of the contingent earn out liability for the year ended June 30, 2018 . in thousands Contingent Liabilities at fair value, based on Level 3 inputs: Consideration Balance at June 30, 2017 $ 1,325 Revaluation adjustment (529 ) Amount paid to SilverTowne (208 ) Balance at June 30, 2018 $ 588 |
Schedule of earnings per share | A reconciliation of shares used in calculating basic and diluted earnings per common shares for the years ended June 30, 2018 and 2017 , is presented below. in thousands Years Ended June 30, 2018 2017 Basic weighted average shares outstanding 7,031 7,029 Effect of common stock equivalents — stock issuable under outstanding equity awards — 93 Diluted weighted average shares outstanding 7,031 7,122 |
Assets and Liabilities, at Fa29
Assets and Liabilities, at Fair Value (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and June 30, 2017 . in thousands June 30, 2018 June 30, 2017 Carrying Amount Fair value Carrying Amount Fair value Financial assets: Cash $ 6,291 $ 6,291 $ 13,059 $ 13,059 Receivables, net 35,856 35,856 39,295 39,295 Secured loans receivable 110,424 110,424 91,238 91,238 Derivative asset on open sale and purchase commitments, net 2,274 2,274 931 931 Derivative asset on option contracts 390 390 — — Derivative asset on futures contracts 238 238 1,273 1,273 Derivative asset on forward contracts 4,493 4,493 15,383 15,383 Income taxes receivable 1,553 1,553 — — Financial liabilities: Lines of credit $ 200,000 $ 200,000 $ 180,000 $ 180,000 Debt obligation (related party) 7,226 7,226 — — Liability on borrowed metals 280,346 280,346 5,625 5,625 Product financing arrangements 113,940 113,940 135,343 135,343 Derivative liability on margin accounts 3,804 3,804 4,797 4,797 Derivative liability on price protection programs 168 168 — — Derivative liability on open sale and purchase commitments, net 16,485 16,485 29,785 29,785 Accounts payable 45,997 45,997 41,947 41,947 Accrued liabilities 5,129 5,129 4,945 4,945 Other long-term liabilities (related party) (1) 798 798 1,117 1,117 Income taxes payable — — 1,418 1,418 Note payable - related party — — 500 500 (1) Includes estimated contingent amounts due to SilverTowne and to Goldline Lenders. |
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 June 30, 2018 and June 30, 2017 , aggregated by the level in the fair value hierarchy within which the measurements fall: June 30, 2018 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) $ 280,017 $ — $ — $ 280,017 Precious metals held under financing arrangements 262,566 262,566 Derivative assets — open sale and purchase commitments, net 2,274 — — 2,274 Derivative assets — option contracts 390 — — 390 Derivative assets — futures contracts 238 — — 238 Derivative assets — forward contracts 4,493 — — 4,493 Total assets, valued at fair value $ 549,978 $ — $ — $ 549,978 Liabilities: Liability on borrowed metals $ 280,346 $ — $ — $ 280,346 Product financing arrangements 113,940 — — 113,940 Derivative liabilities — price protection programs — — 168 168 Derivative liabilities — liability on margin accounts 3,804 — — 3,804 Derivative liabilities — open sale and purchase commitments, net 16,485 — — 16,485 Contingent earn-out liability $ — $ — $ 588 $ 588 Total liabilities, valued at fair value $ 414,575 $ — $ 756 $ 415,331 ____________________ (1) Commemorative coin inventory totaling $99,000 is held at lower of cost or market and is thus excluded from this table. June 30, 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) $ 284,619 $ — $ — $ 284,619 Derivative assets — open sale and purchase commitments, net 931 — — 931 Derivative assets — futures contracts 1,273 — — 1,273 Derivative assets — forward contracts 15,383 — — 15,383 Total assets, valued at fair value $ 302,206 $ — $ — $ 302,206 Liabilities: Liability on borrowed metals $ 5,625 $ — $ — $ 5,625 Product financing arrangements 135,343 — — 135,343 Derivative liabilities — liability on margin accounts 4,797 — — 4,797 Derivative liabilities — open sale and purchase commitments, net 29,785 — — 29,785 Contingent earn-out liability — — 1,325 1,325 Total liabilities, valued at fair value $ 175,550 $ — $ 1,325 $ 176,875 ____________________ (1) Commemorative coin inventory totaling $40,000 is held at lower of cost or market and is thus excluded from this table. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of receivables and secured loans | Receivables consist of the following as of June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Customer trade receivables $ 22,813 $ 31,949 Wholesale trade advances 10,722 2,457 Due from brokers 2,351 4,919 Subtotal 35,886 39,325 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 35,856 $ 39,295 |
Schedule of allowance for doubtful accounts | An allowance for doubtful accounts is 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 Year Ended June 30, 2018 $ 30 $ — $ — $ 30 Year Ended June 30, 2017 $ 30 $ — $ — $ 30 |
Secured Loans Receivable (Table
Secured Loans Receivable (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of receivables and secured loans | Receivables consist of the following as of June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Customer trade receivables $ 22,813 $ 31,949 Wholesale trade advances 10,722 2,457 Due from brokers 2,351 4,919 Subtotal 35,886 39,325 Less: allowance for doubtful accounts (30 ) (30 ) Receivables, net $ 35,856 $ 39,295 |
Schedule of classes for financing receivables | The Company's secured loans by portfolio class, which align with management reporting, are as follows: in thousands June 30, 2018 June 30, 2017 Bullion $ 72,128 65.3 % $ 61,767 67.7 % Numismatic and semi-numismatic 38,296 34.7 29,471 32.3 $ 110,424 100.0 % $ 91,238 100.0 % |
Financing receivable credit quality indicators | The Company desegregates its secured loans that are collateralized by precious metal products, as follows: in thousands June 30, 2018 June 30, 2017 Loan-to-value of 75% or more $ 69,629 63.1 % $ 60,432 66.2 % Loan-to-value of less than 75% 40,795 36.9 30,806 33.8 Secured loans collateralized by precious metal products $ 110,424 100.0 % $ 91,238 100.0 % |
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 June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Secured loans originated $ 23,300 $ 30,864 Secured loans originated - with a related party 12,523 — 35,823 30,864 Secured loans acquired 74,601 (1) 60,374 (2) Secured loans (current and long-term) $ 110,424 $ 91,238 _________________________________ (1) Includes $54,000 of loan premium as of June 30, 2018 . (2) Includes $72,000 of loan premium as of June 30, 2017 . |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Inventory held for sale $ 32,605 $ 43,787 Repurchase arrangements with customers 104,907 92,496 Consignment arrangements with customers 10,785 7,368 Commemorative coins, held at lower of cost or market 99 40 Borrowed precious metals 17,780 5,625 Product financing arrangements, restricted 113,940 135,343 $ 280,116 $ 284,659 |
Plant, Property and Equipment (
Plant, Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of plant, property and equipment | Plant, property and equipment consists of the following at June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Office furniture, and fixtures $ 2,056 $ 1,638 Computer equipment 757 462 Computer software 3,471 2,386 Plant equipment 2,701 1,979 Building 315 315 Leasehold improvements 2,796 2,571 Total depreciable assets 12,096 9,351 Less: accumulated depreciation (5,597 ) (3,885 ) Property and equipment not placed in service 1,483 1,105 Land 36 36 Plant, property and equipment, net $ 8,018 $ 6,607 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other purchased intangible assets | The carrying value of goodwill and other purchased intangibles as of June 30, 2018 and June 30, 2017 is as described below: dollar amounts in thousands June 30, 2018 June 30, 2017 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Identifiable intangible Assets: Existing customer relationships 5 - 15 8,848 (5,467 ) — 3,381 6,447 (4,636 ) 1,811 Non-compete and other 3 - 5 2,300 (2,056 ) — 244 2,000 (2,000 ) — Employment agreement 3 295 (222 ) — 73 195 (195 ) — Intangibles subject to amortization 11,443 (7,745 ) — 3,698 8,642 (6,831 ) 1,811 Trade Name Indefinite $ 4,454 $ — $ (1,291 ) $ 3,163 $ 2,254 $ — $ 2,254 $ 15,897 $ (7,745 ) $ (1,291 ) $ 6,861 $ 10,896 $ (6,831 ) $ 4,065 Goodwill Indefinite $ 10,245 (1) $ — $ (1,364 ) $ 8,881 $ 8,881 $ — $ 8,881 _________________________________ (1) During the fourth quarter of fiscal 2018, the gross carrying amount decreased by $86 related to the Company's revised estimate of the purchase price of Goldline due to the Seller. (see Note 1). |
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 2019 $ 1,011 2020 1,011 2021 599 2022 571 2023 128 Thereafter 378 Total $ 3,698 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 June 30, 2017 Equity method investment $ 7,888 $ 7,467 Cost method investment 500 500 $ 8,388 $ 7,967 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounts Payable, Current [Abstract] | |
Accounts payable | Accounts payable consists of the following: in thousands June 30, 2018 June 30, 2017 Trade payables to customers $ 175 $ 277 Advances from customers 42,615 36,382 Deferred revenue 2,107 3,777 Other accounts payable 1,100 1,511 $ 45,997 $ 41,947 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Transactions (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and June 30, 2017 . June 30, 2018 June 30, 2017 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 $ 2,602 $ (328 ) $ — $ 2,274 $ 1,625 $ (694 ) $ — $ 931 Option contracts 390 — — 390 — — — — Future contracts 238 — — 238 1,273 — — 1,273 Forward contracts 4,577 (84 ) — 4,493 15,754 (371 ) — 15,383 $ 7,807 $ (412 ) $ — $ 7,395 $ 18,652 $ (1,065 ) $ — $ 17,587 Nettable derivative liabilities: Open sale and purchase commitments $ 17,132 $ (647 ) $ — $ 16,485 $ 31,568 $ (1,783 ) $ — $ 29,785 Margin accounts 5,988 — (2,184 ) 3,804 7,936 — (3,139 ) 4,797 Liability of price protection programs 168 — — 168 — — — — $ 23,288 $ (647 ) $ (2,184 ) $ 20,457 $ 39,504 $ (1,783 ) $ (3,139 ) $ 34,582 |
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 June 30, 2018 and June 30, 2017 . June 30, 2018 June 30, 2017 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 $ 2,602 $ (328 ) $ — $ 2,274 $ 1,625 $ (694 ) $ — $ 931 Option contracts 390 — — 390 — — — — Future contracts 238 — — 238 1,273 — — 1,273 Forward contracts 4,577 (84 ) — 4,493 15,754 (371 ) — 15,383 $ 7,807 $ (412 ) $ — $ 7,395 $ 18,652 $ (1,065 ) $ — $ 17,587 Nettable derivative liabilities: Open sale and purchase commitments $ 17,132 $ (647 ) $ — $ 16,485 $ 31,568 $ (1,783 ) $ — $ 29,785 Margin accounts 5,988 — (2,184 ) 3,804 7,936 — (3,139 ) 4,797 Liability of price protection programs 168 — — 168 — — — — $ 23,288 $ (647 ) $ (2,184 ) $ 20,457 $ 39,504 $ (1,783 ) $ (3,139 ) $ 34,582 |
Summary of net gains (losses) on derivative instruments | . Below is a summary of the net gains (losses) on derivative instruments for the years ended June 30, 2018 and 2017 . in thousands Years Ended June 30, 2018 2017 Gains (losses) on derivative instruments: Unrealized gains (losses) on open future commodity and forward contracts and open sale and purchase commitments, net $ 2,351 $ (17,738 ) Realized gains on future commodity contracts, net 13,271 27,392 $ 15,622 $ 9,654 |
Schedule of market values of derivative instruments | 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 are as follows: in thousands June 30, 2018 June 30, 2017 Foreign exchange forward contracts $ 4,130 $ 2,213 Open sale and purchase commitment transactions, net $ 3,026 $ 2,235 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 June 30, 2018 and at June 30, 2017 . in thousands June 30, 2018 June 30, 2017 Inventory $ 280,116 $ 284,659 Precious metals held under financing arrangements 262,566 — 542,682 284,659 Less unhedgeable inventory: Commemorative coin inventory, held at lower of cost or market (99 ) (40 ) Premium on metals position (3,530 ) (4,088 ) Precious metal value not hedged (3,629 ) (4,128 ) 539,053 280,531 Commitments at market: Open inventory purchase commitments 342,287 587,687 Open inventory sales commitments (138,022 ) (121,602 ) Margin sale commitments (5,988 ) (7,936 ) In-transit inventory no longer subject to market risk (1,060 ) (3,931 ) Unhedgeable premiums on open commitment positions 541 495 Borrowed precious metals (280,346 ) (5,625 ) Product financing arrangements (113,940 ) (135,343 ) Advances on industrial metals 6,044 1,580 (190,484 ) 315,325 Precious metal subject to price risk 348,569 595,856 Precious metal subject to derivative financial instruments: Precious metals forward contracts at market values 274,994 462,231 Precious metals futures contracts at market values 72,421 133,450 Total market value of derivative financial instruments 347,415 595,681 Net precious metals subject to commodity price risk $ 1,154 $ 175 |
Schedule of outstanding commitments | As of June 30, 2018 and June 30, 2017 , the Company had the following outstanding commitments and open forward and future contracts: in thousands June 30, 2018 June 30, 2017 Purchase commitments $ 342,287 $ 587,687 Sales commitments $ (138,022 ) $ (121,602 ) Margin sales commitments $ (5,988 ) $ (7,936 ) Open forward contracts $ 274,994 $ 462,231 Open futures contracts $ 72,421 $ 133,450 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 tax year end. The (benefit) expense from provision for income taxes for the years ended June 30, 2018 and 2017 consists of the following: in thousands Year Ended Years Ended June 30, 2018 2017 Current: Federal 42 13,642 State and local (96 ) 879 Foreign (27 ) (20 ) (81 ) 14,501 Deferred: Federal 361 (10,117 ) State and local (272 ) (663 ) 89 (10,780 ) Provision for income taxes $ 8 $ 3,721 Income (loss) from operations before provision for income taxes is shown below: in thousands Year Ended Years Ended June 30, 2018 2017 U.S. $ (3,446 ) $ 10,745 Foreign 35 40 Net (loss) income before provision for income taxes $ (3,411 ) $ 10,785 |
Schedule of effective income tax rate | A reconciliation of the income tax provisions to the amounts computed by applying the statutory federal income tax rate ( 28.06% for 2018 , and 35% for 2017 ) to income before income tax provisions for the years ended June 30, 2018 and 2017 , are set forth below: in thousands Years Ended June 30, 2018 2017 Federal income tax $ (957 ) $ 3,775 State tax, net of federal benefit (98 ) 210 Uncertain tax positions (50 ) (147 ) Change in valuation allowance (56 ) 12 Tax Act 1,244 — Other (75 ) (129 ) Provision for income taxes $ 8 $ 3,721 |
Schedule of deferred taxes presented below summarizes the components of deferred taxes | The schedule of deferred taxes presented below summarizes the components of deferred taxes that have been classified as deferred tax assets and deferred tax liabilities related to taxable temporary differences as of June 30, 2018 and June 30, 2017 : in thousands June 30, 2018 June 30, 2017 Accrued compensation $ 86 $ 121 Deferred rent 236 367 Unrealized loss on open purchase and sale commitments 2,351 5,026 Stock-based compensation 635 582 State tax accrual 37 112 Net operating loss carry forwards 1,657 705 Other 141 132 Deferred tax assets 5,143 7,045 Less: valuation allowances — (56 ) Deferred tax assets after valuation allowances 5,143 6,989 Intangible assets (206 ) (1,347 ) Unrealized gain on futures and forward contracts (146 ) (474 ) Fixed assets (5 ) (298 ) Inventories (319 ) (454 ) Earnings from equity method investment (283 ) (296 ) Investment in Partnership (287 ) (161 ) Other (27 ) — Deferred tax liabilities (1,273 ) (3,030 ) Net deferred tax asset $ 3,870 $ 3,959 |
Schedule of reconciliation of the net unrecognized tax benefits | Below is a reconciliation of the net unrecognized tax benefits for the years ended June 30, 2018 and June 30, 2017 : in thousands Years Ended June 30, 2018 2017 Beginning balance $ 197 $ 280 Reductions due to lapse of statute of limitations (2 ) (97 ) Additions as a result of tax positions taken during current period — 14 Reductions as a result of tax positions of prior years (48 ) — Ending balance $ 147 $ 197 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | During the years ended June 30, 2018 and 2017 , the Company made sales and purchases to various companies, which have been deemed to be related parties, as follows: in thousands Years Ended June 30, 2018 2017 Sales Purchases Sales Purchases Former Parent/Stack's Bowers $ 50,512 $ 344,348 $ 47,384 $ 47,979 Equity method investee 359,872 5,959 477,477 2,979 SilverTowne 14,921 7,696 27,834 4,648 $ 425,305 $ 358,003 $ 552,695 $ 55,606 During the years ended June 30, 2018 and 2017 , the Company earned interest income related to loans made to Stack's Bowers and related to financing arrangements (including repurchase agreements) with affiliated companies, as set forth below: in thousands Years Ended June 30, 2018 2017 Interest income from secured loans receivables $ 290 $ 171 Interest income from finance products and repurchase arrangements 3,926 2,787 $ 4,216 $ 2,958 As of June 30, 2018 and June 30, 2017 , the Company had related party receivables and payables balances as set forth below: in thousands June 30, 2018 June 30, 2017 Receivables Payables Receivables Payables Former Parent/Stack's Bowers $ 13,240 (1) $ — $ — $ 27 Equity method investee — 920 (2) — 558 SilverTowne — 242 (3) — 1,768 Goldline Lenders — 7,710 (4) — — $ 13,240 $ 8,872 — $ 2,353 _________________________________ (1) Balance principally includes two secured lines of credit with a balance of $3.0 million and $9.5 million (shown as a component of secured loans receivables). See "Secured Lines of Credit with Stack's Bowers", below. (2) Balance represents mostly open trade payables. (3) Balance (net) includes (a) a trade receivables of $0.3 million (shown as a component of receivables), and (b) a contingent earn-out liability of $0.6 million (shown as a component of other long-term liabilities). (4) Balance includes the face value of the Goldline Credit Facility of $7.5 million, and the associated estimated debt funding fees payable of $0.2 million (shown as debt obligation - related party). The Goldline Credit facility and the debt funding fee are payable in August 2020. During the years ended June 30, 2018 and 2017 , the Company incurred interest expense (including debt amortization costs) related to the debt payable to SilverTowne and the Goldline Lenders, as set forth below: in thousands Years Ended June 30, 2018 2017 Interest expense incurred related to notes payable $ — $ 3 Interest expense incurred related to long-term debt obligation $ 648 $ — $ 648 $ 3 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of participants in credit facility | The following table shows the directors, executive officer and principal stockholder that participated in the Goldline Credit Facility transaction, and provides related information: Goldline Lenders Position/Relationship Amount of Company Indebtedness Acquired (1) Gregory N. Roberts Chief Executive Officer, Director and principal stockholder (2) $ 587,500 (2) William D. Richardson Principal stockholder (3) 587,500 (3) Jeffrey D. Benjamin Chairman of the Board and Director 1,000,000 Ellis Landau Director 375,000 William Montgomery Director 1,500,000 Jess Ravich Director 500,000 (4) 4,550,000 7 other persons Non-affiliated members 2,950,000 $ 7,500,000 _________________________________ (1) The amount shown is expected to remain outstanding throughout the term of the Goldline Credit Facility, with repayment due in August 2020. (2) Silver Bow Ventures LLC (“Silver Bow”) is the Lender. Mr. Roberts holds 50% of the ownership interests in and controls Silver Bow. Accordingly, the amount of indebtedness shown, and the interest amounts potentially payable on such indebtedness shown, represent 50% of the aggregate amounts of indebtedness held by and potential interest payable to Silver Bow. (3) Silver Bow is the Lender. Mr. Richardson holds 50% of the ownership interests in and controls Silver Bow. Accordingly, the amount of indebtedness shown, and the interest amounts potentially payable on such indebtedness shown, represent 50% of the aggregate amounts of indebtedness held by and potential interest payable to Silver Bow. (4) Libra Securities Holdings, LLC is the Lender. Mr. Ravich and a trust for his family members holds 100% of the ownership interests and controls Libra Securities Holdings, LLC. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future minimum lease payments under the Company's lease arrangements, operating lease | Future minimum lease payments under the Company's lease arrangements with noncancellable lease terms in excess of one year as of June 30, 2018 are as follows: (in thousands) Years ending June 30, Operating Capital 2019 $ 1,448 $ 10 2020 1,491 10 2021 1,528 10 2022 1,250 5 2023 834 — Thereafter 2,044 — $ 8,595 35 Less amounts representing interest (2 ) $ 33 |
Schedule of Future minimum lease payments under the Company's lease arrangements, capital lease | Future minimum lease payments under the Company's lease arrangements with noncancellable lease terms in excess of one year as of June 30, 2018 are as follows: (in thousands) Years ending June 30, Operating Capital 2019 $ 1,448 $ 10 2020 1,491 10 2021 1,528 10 2022 1,250 5 2023 834 — Thereafter 2,044 — $ 8,595 35 Less amounts representing interest (2 ) $ 33 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Dividends declared | The table below summarizes the eight most recent quarterly dividends declared pursuant to this policy: Dividend Record Date (at close of Business) Type of Dividend Basis of Payment Payment Date 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 May 2, 2017 May 15, 2017 Cash $ 0.08 per common share May 25, 2017 August 30, 2017 September 18, 2017 Cash $ 0.08 per common share September 27, 2017 November 13, 2017 November 24, 2017 Cash $ 0.08 per common share December 13, 2017 January 30, 2018 February 13, 2018 Cash $ 0.08 per common share February 27, 2018 |
Schedule of share-based compensation, stock option activity | The following table summarizes the stock option activity for the year ended June 30, 2018 . Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (in thousands) Weighted Average Grant Date Fair Value Per Award Outstanding at June 30, 2017 741,327 $ 17.89 $ 1,514 $ 6.19 Granted 166,605 $ 16.19 Cancellations, expirations and forfeitures (65,417 ) $ 17.50 Outstanding at June 30, 2018 842,515 $ 17.59 $ 821 $ 5.99 Exercisable at June 30, 2018 554,281 $ 16.37 $ 821 $ 6.20 |
Schedule of share-based compensation, status of stock option outstanding | Following is a summary of the status of stock options outstanding at June 30, 2018 : 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 4.35 $ 8.39 134,239 4.35 $ 8.39 $ 10.01 $ 15.00 148,888 6.14 $ 12.55 98,888 4.28 $ 11.94 $ 15.01 $ 25.00 459,388 8.10 $ 20.19 271,154 8.03 $ 20.26 $ 25.01 $ 60.00 100,000 7.65 $ 25.50 50,000 7.65 $ 25.50 842,515 7.11 $ 17.59 554,281 6.44 $ 16.37 |
Customer and Supplier Concent43
Customer and Supplier Concentrations (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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 year ended June 30, 2018 are presented on a comparative basis in the table below: in thousands Years Ended June 30, 2018 2017 Amount Percent Amount Percent Total revenue $ 7,606,248 100.0 % $ 6,989,624 100.0 % Customer concentrations HSBC Bank USA (1) $ 2,039,134 26.8 % $ 1,492,926 21.4 % Mitsubishi Intl. Corp. (1) 1,712,779 22.5 1,171,532 16.8 $ 3,751,913 49.3 % $ 2,664,458 38.2 % ________________________________ (1) Sales with this trading partner is primarily comprised of sales on forward contracts that entered into for hedging purposes rather than sales characterized with the physical delivery of precious metal product. Customers providing 10 percent or more of the Company's accounts receivable as of June 30, 2018 are presented on a comparative basis in the table below: in thousands Years Ended June 30, 2018 2017 Amount Percent Amount Percent Total accounts receivable, net $ 35,856 100.0 % $ 39,295 100.0 % Customer concentrations Customer A $ 14,967 41.7 % $ 27,072 68.9 % Customer B 7,468 20.8 817 2.1 $ 22,435 62.5 % $ 27,889 71.0 % |
Segment and Geographic Inform44
Segment and Geographic Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | in thousands Year Ended Three Months Ended September 30, June 30, 2018 June 30, 2017 Revenue by segment Wholesale Trading & Ancillary Services $ 7,538,856 $ 6,989,624 Direct Sales 67,392 (1) N/A Total revenue $ 7,606,248 $ 6,989,624 _________________________________ (1) Includes $22.5 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. The elimination of these intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment. in thousands Year Ended Three Months Ended September 30, June 30, 2018 June 30, 2017 Revenue by geographic region (as determined by the shipping address or where the services were performed) : United States $ 7,081,161 $ 6,537,863 Europe 303,514 260,489 North America, excluding United States 214,895 177,734 Asia Pacific 3,554 7,706 Africa 1 — Australia 3,123 5,832 Total revenue $ 7,606,248 $ 6,989,624 Gross Profit and Gross Margin Percentage in thousands Year Ended Three Months Ended September 30, June 30, 2018 June 30, 2017 Gross profit by segment Wholesale Trading & Ancillary Services $ 24,109 $ 31,334 Direct Sales 5,334 N/A Total gross profit $ 29,443 $ 31,334 Gross margin percentage by segment Wholesale Trading & Ancillary Services 0.320 % 0.448 % Direct Sales 7.915 % N/A Weighted average gross margin percentage 0.387 % 0.448 % Operating Income and Expenses in thousands Years Ended June 30, 2018 2017 Operating income and expenses by segment Wholesale Trading & Ancillary Services Selling, general and administrative expenses $ (21,096 ) $ (21,529 ) Interest income $ 6,473 $ 4,814 Interest expense $ (7,778 ) $ (6,176 ) Other income, net $ 984 $ 358 Secured Lending Selling, general and administrative expenses $ (1,689 ) $ (1,814 ) Interest income $ 9,632 $ 7,739 Interest expense $ (5,465 ) $ (3,941 ) Direct Sales Selling, general and administrative expenses $ (10,613 ) N/A Goodwill and intangible asset impairment $ (2,654 ) N/A Interest expense $ (648 ) N/A Net (loss) income before provision for income taxes in thousands Years Ended June 30, 2018 2017 Net (loss) income before provision for income taxes by segment Wholesale Trading & Ancillary Services $ 2,692 $ 8,801 Secured Lending 2,478 1,984 Direct Sales (8,581 ) N/A Total n et (loss) income before provision for income taxes $ (3,411 ) $ 10,785 Depreciation and Amortization in thousands Years Ended June 30, 2018 2017 Depreciation and amortization by segment Wholesale Trading & Ancillary Services $ (1,560 ) $ (1,511 ) Secured Lending (3 ) (10 ) Direct Sales (1,063 ) N/A Total depreciation and amortization $ (2,626 ) $ (1,521 ) Advertising expense in thousands Years Ended June 30, 2018 2017 Advertising expense by segment Wholesale Trading & Ancillary Services $ (553 ) $ (646 ) Secured Lending (28 ) (27 ) Direct Sales (2,653 ) N/A Total advertising expense $ (3,234 ) $ (673 ) Precious metals held under financing arrangements in thousands June 30, 2018 June 30, 2017 Precious metals held under financing arrangements by segment Wholesale Trading & Ancillary Services $ 262,566 $ — Total precious metals held under financing arrangements $ 262,566 $ — Inventory in thousands June 30, 2018 June 30, 2017 Inventories by segment Wholesale Trading & Ancillary Services $ 272,034 $ 284,659 Direct Sales 8,082 N/A Total inventories $ 280,116 $ 284,659 in thousands June 30, 2018 June 30, 2017 Inventories by geographic region United States $ 273,008 $ 276,809 Europe 1,965 3,154 North America, excluding United States 4,976 4,310 Asia 167 386 Total inventories $ 280,116 $ 284,659 Assets in thousands June 30, 2018 June 30, 2017 Assets by segment Wholesale Trading & Ancillary Services $ 616,522 $ 478,500 Secured Lending 111,304 — Direct Sales 15,175 N/A Total assets $ 743,001 $ 478,500 in thousands June 30, 2018 June 30, 2017 Assets by geographic region United States $ 733,131 $ 469,114 Europe 4,727 4,690 North America, excluding United States 4,976 4,310 Asia 167 386 Total assets $ 743,001 $ 478,500 Long-term Assets in thousands June 30, 2018 June 30, 2017 Long-term assets by segment Wholesale Trading & Ancillary Services $ 31,328 $ 31,479 Secured Lending 102 — Direct Sales 4,588 N/A Total long-term assets $ 36,018 $ 31,479 in thousands June 30, 2018 June 30, 2017 Long-term assets by geographic region United States $ 35,965 $ 31,423 Europe 53 56 Total long-term assets $ 36,018 $ 31,479 Capital Expenditures for Property and Equipment in thousands Years Ended June 30, 2018 2017 Capital expenditures on plant, property and equipment by segment Wholesale Trading & Ancillary Services $ 1,104 $ 2,265 (2) Secured Lending 102 — Direct Sales 111 (1) N/A Total capital expenditures on property and equipment $ 1,317 $ 2,265 _________________________________ (1) Excludes $1.8 million of plant, property and equipment that was part of the net assets acquired from Goldline LLC. (2) Excludes $2.1 million of plant, property and equipment that were part of the net assets acquired from SilverTowne LP. Goodwill and Intangible Assets in thousands June 30, 2018 June 30, 2017 Goodwill and Intangibles by segment Wholesale Trading & Ancillary Services $ 12,516 $ 12,946 Direct Sales 3,226 N/A Total goodwill and intangible assets $ 15,742 $ 12,946 |
Description of Business - Purch
Description of Business - Purchase Price Allocation (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Aug. 28, 2017 | Jun. 30, 2017 | |
Goodwill: | ||||
Excess of cost over fair value of assets acquired | $ 8,881 | $ 8,881 | ||
Goldline, LLC | ||||
Working capital net assets: | ||||
Receivables, net | 605 | |||
Derivative assets | 825 | |||
Inventory | 12,403 | |||
Prepaid expenses and other assets | 856 | |||
Accounts payable and accrued liabilities | (2,111) | |||
Liability on borrowed metals | (8,949) | |||
Deferred income | (2,284) | |||
Subtotal | 1,345 | |||
Property and equipment | 1,806 | $ 1,800 | ||
Intangible assets (identifiable): | ||||
Intangibles assets | 5,000 | |||
Goodwill: | ||||
Excess of cost over fair value of assets acquired | 1,364 | $ 1,450 | ||
Total | 9,515 | $ 10,000 | ||
Purchase accounting adjustments | 86 | |||
Trade names | Goldline, LLC | ||||
Intangible assets (identifiable): | ||||
Intangibles assets | 2,200 | |||
Existing customer relationships | Goldline, LLC | ||||
Intangible assets (identifiable): | ||||
Intangibles assets | 1,300 | |||
Customer lead list | Goldline, LLC | ||||
Intangible assets (identifiable): | ||||
Intangibles assets | 1,100 | |||
Other | Goldline, LLC | ||||
Intangible assets (identifiable): | ||||
Intangibles assets | $ 400 |
Description of Business - Acqui
Description of Business - Acquisitions (Details) | Aug. 28, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017 | Jun. 30, 2018USD ($)Segment$ / shares | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2018USD ($) | Aug. 31, 2016 |
Business Acquisition [Line Items] | |||||||
Number of reportable segments | Segment | 3 | ||||||
Tax rate assumption | 21.00% | 35.00% | 28.06% | 35.00% | |||
Goldline, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 10,000,000 | ||||||
Fair value of intangible assets acquired | 6,400,000 | ||||||
Fair value of tangible asset acquired | 3,600,000 | ||||||
Holdback amount | 1,500,000 | ||||||
Holdback amount released | $ 0 | ||||||
Net asset purchase price | 10,000,000 | $ 9,515,000 | 9,515,000 | $ 9,515,000 | |||
Acquisition related costs | $ 100,000 | $ 800,000 | |||||
Pro-forma revenue | 7,607,405,000 | 7,090,784,000 | |||||
Pro-forma net (loss) income | $ (3,341,000) | $ 6,917,000 | |||||
Pro from basic earnings per share (usd per share) | $ / shares | $ (0.48) | $ 0.98 | |||||
Pro from dilutive earnings per share (usd per share) | $ / shares | $ (0.48) | $ 0.97 | |||||
Liabilities incurred for the acquisition | $ 7,500,000 | ||||||
AMST | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interests acquired (in percentage) | 55.00% | ||||||
SilverTowne | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interests acquired (in percentage) | 45.00% | ||||||
Pro Forma | |||||||
Business Acquisition [Line Items] | |||||||
Tax rate assumption | 31.00% | 37.50% |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Restricted cash | $ 400 | $ 0 |
Precious metals held under financing arrangements | 262,566 | 0 |
Earnings from equity method investment | 421 | 94 |
Revaluation adjustment | 529 | 198 |
Advertising expense | 3,234 | 673 |
Shipping, handling costs | $ 4,643 | $ 4,527 |
Stock options outstanding, number of shares outstanding (shares) | 842,515 | 741,327 |
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 Accoun48
Summary of Significant Accounting Policies (Contingent Consideration) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Change in accrued earn-out (non-cash) | $ (529) | $ (198) |
Contingent Consideration Liability | ||
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 1,325 | |
Change in accrued earn-out (non-cash) | (529) | |
Amount paid to SilverTowne | (208) | |
Closing balance | $ 588 | $ 1,325 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Earnings per Share) (Details) - shares | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies [Abstract] | ||
Basic weighted average shares outstanding | 7,031,400 | 7,029,400 |
Effect of common stock equivalents — stock issuable under outstanding equity awards | 0 | 93,000 |
Diluted weighted average shares outstanding | 7,031,400 | 7,121,500 |
Assets and Liabilities, at Fa50
Assets and Liabilities, at Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financial assets: | ||
Derivative assets | $ 7,395 | $ 17,587 |
Financial liabilities: | ||
Liability on borrowed metals | 280,346 | 5,625 |
Product financing arrangements | 113,940 | 135,343 |
Derivative liabilities | 20,457 | 34,582 |
Accrued liabilities | 5,129 | 4,945 |
Carrying Amount | ||
Financial assets: | ||
Cash | 6,291 | 13,059 |
Receivables, net | 35,856 | 39,295 |
Secured loans receivable | 110,424 | 91,238 |
Income tax receivables | 1,553 | 0 |
Financial liabilities: | ||
Lines of credit | 200,000 | 180,000 |
Debt obligation (related party) | 7,226 | 0 |
Liability on borrowed metals | 280,346 | 5,625 |
Product financing arrangements | 113,940 | 135,343 |
Accounts payable | 45,997 | 41,947 |
Accrued liabilities | 5,129 | 4,945 |
Other long-term liabilities (related party) | 798 | 1,117 |
Income taxes payable | 0 | 1,418 |
Note payable - related party | 0 | 500 |
Carrying Amount | Liability on margin accounts | ||
Financial liabilities: | ||
Derivative liabilities | 3,804 | 4,797 |
Carrying Amount | Options Held | ||
Financial liabilities: | ||
Derivative liabilities | 168 | 0 |
Carrying Amount | Open sale and purchase commitments | ||
Financial liabilities: | ||
Derivative liabilities | 16,485 | 29,785 |
Carrying Amount | Open sale and purchase commitments | ||
Financial assets: | ||
Derivative assets | 2,274 | 931 |
Carrying Amount | Options Held | ||
Financial assets: | ||
Derivative assets | 390 | 0 |
Carrying Amount | Future contracts | ||
Financial assets: | ||
Derivative assets | 238 | 1,273 |
Carrying Amount | Forward contracts | ||
Financial assets: | ||
Derivative assets | 4,493 | 15,383 |
Fair value | ||
Financial assets: | ||
Cash | 6,291 | 13,059 |
Receivables, net | 35,856 | 39,295 |
Secured loans receivable | 110,424 | 91,238 |
Income tax receivables | 1,553 | 0 |
Financial liabilities: | ||
Lines of credit | 200,000 | 180,000 |
Debt obligation (related party) | 7,226 | 0 |
Liability on borrowed metals | 280,346 | 5,625 |
Product financing arrangements | 113,940 | 135,343 |
Accounts payable | 45,997 | 41,947 |
Accrued liabilities | 5,129 | 4,945 |
Other long-term liabilities (related party) | 798 | 1,117 |
Income taxes payable | 0 | 1,418 |
Note payable - related party | 0 | 500 |
Fair value | Liability on margin accounts | ||
Financial liabilities: | ||
Derivative liabilities | 3,804 | 4,797 |
Fair value | Options Held | ||
Financial liabilities: | ||
Derivative liabilities | 168 | 0 |
Fair value | Open sale and purchase commitments | ||
Financial liabilities: | ||
Derivative liabilities | 16,485 | 29,785 |
Fair value | Open sale and purchase commitments | ||
Financial assets: | ||
Derivative assets | 2,274 | 931 |
Fair value | Options Held | ||
Financial assets: | ||
Derivative assets | 390 | 0 |
Fair value | Future contracts | ||
Financial assets: | ||
Derivative assets | 238 | 1,273 |
Fair value | Forward contracts | ||
Financial assets: | ||
Derivative assets | $ 4,493 | $ 15,383 |
Assets and Liabilities, at Fa51
Assets and Liabilities, at Fair Value (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 7,395 | $ 17,587 |
Derivative liabilities | 20,457 | 34,582 |
Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory | 280,017 | 284,619 |
Precious metals held under financing arrangements | 262,566 | |
Total assets valued at fair value | 549,978 | 302,206 |
Liability on borrowed metals | 280,346 | 5,625 |
Product financing arrangements | 113,940 | 135,343 |
Contingent earn-out liability | 588 | 1,325 |
Total liabilities, valued at fair value | 415,331 | 176,875 |
Fair Value on a Recurring Basis | Liability of price protection programs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 168 | |
Fair Value on a Recurring Basis | Liability on margin accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 3,804 | 4,797 |
Fair Value on a Recurring Basis | Open sale and purchase commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 16,485 | 29,785 |
Fair Value on a Recurring Basis | Derivative assets — open sale and purchase commitments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,274 | 931 |
Fair Value on a Recurring Basis | Options Held | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 390 | |
Fair Value on a Recurring Basis | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4,493 | 15,383 |
Fair Value on a Recurring Basis | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 238 | 1,273 |
Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory | 280,017 | 284,619 |
Precious metals held under financing arrangements | 262,566 | |
Total assets valued at fair value | 549,978 | 302,206 |
Liability on borrowed metals | 280,346 | 5,625 |
Product financing arrangements | 113,940 | 135,343 |
Contingent earn-out liability | 0 | 0 |
Total liabilities, valued at fair value | 414,575 | 175,550 |
Fair Value on a Recurring Basis | Level 1 | Liability of price protection programs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value on a Recurring Basis | Level 1 | Liability on margin accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 3,804 | 4,797 |
Fair Value on a Recurring Basis | Level 1 | Open sale and purchase commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 16,485 | 29,785 |
Fair Value on a Recurring Basis | Level 1 | Derivative assets — open sale and purchase commitments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,274 | 931 |
Fair Value on a Recurring Basis | Level 1 | Options Held | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 390 | |
Fair Value on a Recurring Basis | Level 1 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4,493 | 15,383 |
Fair Value on a Recurring Basis | Level 1 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 238 | 1,273 |
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 arrangements | 0 | 0 |
Contingent earn-out liability | 0 | 0 |
Total liabilities, valued at fair value | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Liability of price protection programs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value on a Recurring Basis | Level 2 | Liability on margin accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Open sale and purchase commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Derivative assets — open sale and purchase commitments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Options Held | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Fair Value on a Recurring Basis | Level 2 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 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 arrangements | 0 | 0 |
Contingent earn-out liability | 588 | 1,325 |
Total liabilities, valued at fair value | 756 | 1,325 |
Fair Value on a Recurring Basis | Level 3 | Liability of price protection programs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 168 | |
Fair Value on a Recurring Basis | Level 3 | Liability on margin accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Open sale and purchase commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Derivative assets — open sale and purchase commitments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Options Held | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Fair Value on a Recurring Basis | Level 3 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
Assets and Liabilities, at Fa52
Assets and Liabilities, at Fair Value (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018USD ($)investment | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | |
Goodwill [Line Items] | |||
Commemorative coins, held at lower of cost or market | $ 99 | $ 40 | |
Goodwill | 8,881 | 8,881 | |
Impairment loss | $ 1,364 | ||
Number of investments | investment | 2 | ||
Equity and cost method investment | $ 8,388 | 7,967 | |
Goldline, LLC | |||
Goodwill [Line Items] | |||
Goodwill | 1,364 | $ 1,450 | |
Gross carrying amount - indefinite lived intangible | 2,200 | ||
Trade Name | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets, net of accumulated impairment | 3,163 | 2,254 | |
Gross carrying amount - indefinite lived intangible | 4,454 | $ 2,254 | |
Impairment loss | $ 1,291 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | $ 35,886 | $ 39,325 | ||
Less: allowance for doubtful accounts | $ (30) | $ (30) | (30) | (30) |
Receivables, net | 35,856 | 39,295 | ||
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 | 22,813 | 31,949 | ||
Wholesale trade advances | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | 10,722 | 2,457 | ||
Due from brokers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | $ 2,351 | $ 4,919 |
Secured Loans Receivable (Summa
Secured Loans Receivable (Summary of Carrying-value of Secured Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | $ 110,424 | $ 91,238 |
Secured loans originated by company and with related party | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | 35,823 | 30,864 |
Secured loans originated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | 23,300 | 30,864 |
Secured loans originated - with a related party | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | 12,523 | 0 |
Secured loans acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current and long-term) | $ 74,601 | $ 60,374 |
Secured Loans Receivable (Loans
Secured Loans Receivable (Loans Receivable and Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 110,424 | $ 91,238 |
Secured loan, percentage | 100.00% | 100.00% |
Secured loans (current) | $ 110,424 | $ 91,238 |
Bullion and Numismatic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current) | $ 110,424 | $ 91,238 |
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) | $ 69,629 | $ 60,432 |
Secured loans (current), percentage | 63.10% | 66.20% |
Bullion and Numismatic | Loan-to-value of less than 75% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans (current) | $ 40,795 | $ 30,806 |
Secured loans (current), percentage | 36.90% | 33.80% |
Bullion | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 72,128 | $ 61,767 |
Secured loan, percentage | 65.30% | 67.70% |
Numismatic and semi-numismatic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loan | $ 38,296 | $ 29,471 |
Secured loan, percentage | 34.70% | 32.30% |
Secured Loans Receivable (Narra
Secured Loans Receivable (Narrative) (Details) | 12 Months Ended | |
Jun. 30, 2018USD ($)classloan | Jun. 30, 2017USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unamortized loan commitment and origination fees and unamortized discounts or premiums | $ 54,000 | $ 72,000 |
Loans receivable average effective rate of interest (percentage) | 9.60% | 9.20% |
Number of classes of receivables | class | 2 | |
Loans receivable payment terms for interest | 30 days | |
Delinquent period | 30 days | |
Loan receivable liquidation period post default | 90 days | |
Number of loans | loan | 0 | 0 |
Loan impairment costs | $ 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 | Jun. 30, 2018 | Jun. 30, 2017 |
Inventory [Line Items] | ||
Inventories | $ 166,176 | $ 149,316 |
Restricted inventories | 113,940 | 135,343 |
Restricted and nonrestricted inventory, net | 280,116 | 284,659 |
Inventory held for sale | ||
Inventory [Line Items] | ||
Inventories | 32,605 | 43,787 |
Repurchase arrangements with customers | ||
Inventory [Line Items] | ||
Inventories | 104,907 | 92,496 |
Consignment arrangements with customers | ||
Inventory [Line Items] | ||
Inventories | 10,785 | 7,368 |
Commemorative coins, held at lower of cost or market | ||
Inventory [Line Items] | ||
Inventories | 99 | 40 |
Borrowed precious metals | ||
Inventory [Line Items] | ||
Inventories | 17,780 | 5,625 |
Product financing arrangements, restricted | ||
Inventory [Line Items] | ||
Restricted inventories | $ 113,940 | $ 135,343 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Inventory [Line Items] | ||
Inventory held for sale | $ 166,176 | $ 149,316 |
Precious metals inventory subject to repurchase arrangements | 104,900 | 92,500 |
Consignment arrangements with customers | 10,800 | 7,400 |
Commemorative coins, held at lower of cost or market | 99 | 40 |
Borrowed precious metals from suppliers | 17,800 | 5,600 |
Product financing arrangement, restricted | 113,900 | 135,300 |
Unrealized gains (losses) included in inventory balance | (5,400) | (4,500) |
Premium on metals position | 3,530 | 4,088 |
Inventory held for sale | ||
Inventory [Line Items] | ||
Inventory held for sale | $ 32,605 | $ 43,787 |
Plant, Property and Equipment59
Plant, Property and Equipment (Summary of PPE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Aug. 28, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 12,096 | $ 9,351 | |
Less: accumulated depreciation | (5,597) | (3,885) | |
Plant, property and equipment, net | 8,018 | 6,607 | |
Depreciation | 1,712 | 1,099 | |
Office furniture, and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,056 | 1,638 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 757 | 462 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,471 | 2,386 | |
Plant equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,701 | 1,979 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 315 | 315 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,796 | 2,571 | |
Property and equipment not placed in service | |||
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, net | 1,483 | 1,105 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, net | 36 | $ 36 | |
Goldline, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 1,806 | $ 1,800 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 8,881 | $ 8,881 | ||
Amortization expense related to intangible assets | 914 | $ 422 | ||
Impairment loss | 1,364 | |||
Impairment loss on intangibles | 1,300 | |||
Accumulated impairment | 1,291 | |||
SilverTowne Mint | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangibles acquired | $ 2,500 | |||
Goodwill acquired | $ 4,300 | |||
Goldline, LLC | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangibles assets | 5,000 | |||
Goodwill | $ 1,364 | $ 1,450 | ||
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 | |||
Growth rate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible asset, measurement input | 3.00% | |||
Pre-tax royalty rate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible asset, measurement input | 0.50% | |||
Normalized tax rate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible asset, measurement input | 27.00% | |||
Discount rate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible asset, measurement input | 30.00% | |||
Income Approach Valuation Technique | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Valuation approach allocation | 75.00% | |||
Income Approach Valuation Technique | Growth rate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, measurement input | 3.00% | |||
Income Approach Valuation Technique | Normalized tax rate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, measurement input | 27.00% | |||
Income Approach Valuation Technique | Net working capital | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, measurement input | 5.00% | |||
Income Approach Valuation Technique | Discount rate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, measurement input | 30.00% | |||
Market Approach Valuation Technique | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Valuation approach allocation | 25.00% | |||
Market Approach Valuation Technique | Revenue multiple | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, measurement input | 5.00% | |||
Market Approach Valuation Technique | Revenue multiple | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, measurement input | 10.00% | |||
Market Approach Valuation Technique | EBITDA multiple | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, measurement input | 104.00% | |||
Market Approach Valuation Technique | EBITDA multiple | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, measurement input | 252.00% |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 15,897 | $ 10,896 |
Accumulated Amortization | (7,745) | (6,831) |
Accumulated Impairment | (1,291) | |
Net Book Value | 6,861 | 4,065 |
Goodwill, Gross | 10,245 | 8,881 |
Goodwill | 8,881 | 8,881 |
Impairment loss | 1,364 | |
Existing customer relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,848 | 6,447 |
Accumulated Amortization | (5,467) | (4,636) |
Net Book Value | 3,381 | 1,811 |
Non-compete and other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,300 | 2,000 |
Accumulated Amortization | (2,056) | (2,000) |
Net Book Value | 244 | 0 |
Employment agreement | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 295 | 195 |
Accumulated Amortization | (222) | (195) |
Net Book Value | 73 | 0 |
Intangibles subject to amortization | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,443 | 8,642 |
Accumulated Amortization | (7,745) | (6,831) |
Net Book Value | 3,698 | 1,811 |
Trade Name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, net of accumulated impairment | 3,163 | 2,254 |
Gross carrying amount - indefinite lived intangible | 4,454 | $ 2,254 |
Impairment loss | $ 1,291 | |
Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 3 years | |
Minimum | Existing customer relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 5 years | |
Minimum | Non-compete and other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 3 years | |
Minimum | Employment agreement | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 1 year | |
Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 15 years | |
Maximum | Existing customer relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 15 years | |
Maximum | Non-compete and other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 5 years | |
Maximum | Employment agreement | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 3 years |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 1,011 |
2,020 | 1,011 |
2,021 | 599 |
2,022 | 571 |
2,023 | 128 |
Thereafter | 378 |
Total | $ 3,698 |
Long-Term Investments (Details)
Long-Term Investments (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018USD ($)investment | Jun. 30, 2017USD ($) | |
Equity Method Investments and Cost Method Investments [Abstract] | ||
Number of investments | investment | 2 | |
Equity method investment | $ 7,888 | $ 7,467 |
Cost method investment | 500 | 500 |
Equity and cost method investment | $ 8,388 | 7,967 |
Ownership percentage, equity method investment | 20.60% | |
Income (loss) from equity method investment | $ 421 | $ 94 |
Ownership percentage, cost method investment | 2.50% | 2.50% |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Accounts Payable, Current [Abstract] | ||
Trade payables to customers | $ 175 | $ 277 |
Advances from customers | 42,615 | 36,382 |
Deferred revenue | 2,107 | 3,777 |
Other accounts payable | 1,100 | 1,511 |
Accounts payable | $ 45,997 | $ 41,947 |
Derivative Instruments and He65
Derivative Instruments and Hedging Transactions (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Nettable derivative assets: | ||
Gross derivative receivable | $ 7,807 | $ 18,652 |
Amounts Netted | (412) | (1,065) |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 7,395 | 17,587 |
Nettable derivative liabilities: | ||
Gross derivative payable | 23,288 | 39,504 |
Amounts Netted | (647) | (1,783) |
Cash Collateral Pledge | (2,184) | (3,139) |
Net derivative payables | 20,457 | 34,582 |
Open sale and purchase commitments | ||
Nettable derivative assets: | ||
Gross derivative receivable | 2,602 | 1,625 |
Amounts Netted | (328) | (694) |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 2,274 | 931 |
Nettable derivative liabilities: | ||
Gross derivative payable | 17,132 | 31,568 |
Amounts Netted | (647) | (1,783) |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | 16,485 | 29,785 |
Margin accounts | ||
Nettable derivative liabilities: | ||
Gross derivative payable | 5,988 | 7,936 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | (2,184) | (3,139) |
Net derivative payables | 3,804 | 4,797 |
Liability of price protection programs | ||
Nettable derivative liabilities: | ||
Gross derivative payable | 168 | 0 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | 168 | 0 |
Options Held | ||
Nettable derivative assets: | ||
Gross derivative receivable | 390 | 0 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 390 | 0 |
Future contracts | ||
Nettable derivative assets: | ||
Gross derivative receivable | 238 | 1,273 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 238 | 1,273 |
Forward contracts | ||
Nettable derivative assets: | ||
Gross derivative receivable | 4,577 | 15,754 |
Amounts Netted | (84) | (371) |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | $ 4,493 | $ 15,383 |
Derivative Instruments and He66
Derivative Instruments and Hedging Transactions (Realized Gain (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||
Gains (losses) on derivative instruments: | $ 15,622 | $ 9,654 |
Futures Commodity And Forwards Contracts And Open Purchase And Sale Commitments | ||
Derivative [Line Items] | ||
Unrealized gains (losses) on open future commodity and forward contracts and open sale and purchase commitments, net | 2,351 | (17,738) |
Commodity Contract | ||
Derivative [Line Items] | ||
Realized gains on future commodity contracts, net | $ 13,271 | $ 27,392 |
Derivative Instruments and He67
Derivative Instruments and Hedging Transactions (Hedging of Precious Metals Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Derivatives, Fair Value [Line Items] | ||
Inventory | $ 280,116 | $ 284,659 |
Precious metals held under financing arrangements | 262,566 | 0 |
Inventory and precious metals held under financing arrangements | 542,682 | 284,659 |
Commemorative coin inventory, held at lower of cost or market | (99) | (40) |
Premium on metals position | (3,530) | (4,088) |
Precious metal value not hedged | (3,629) | (4,128) |
Subtotal | 539,053 | 280,531 |
Commitments at market: | ||
Open inventory purchase commitments | 342,287 | 587,687 |
Open inventory sales commitments | (138,022) | (121,602) |
Margin sale commitments | (5,988) | (7,936) |
In-transit inventory no longer subject to market risk | (1,060) | (3,931) |
Unhedgeable premiums on open commitment positions | 541 | 495 |
Borrowed precious metals | (280,346) | (5,625) |
Product financing arrangements | (113,940) | (135,343) |
Advances on industrial metals | 6,044 | 1,580 |
Commitments at market | (190,484) | 315,325 |
Precious metal subject to price risk | 348,569 | 595,856 |
Precious metal subject to derivative financial instruments: | ||
Market value of derivative financial instruments | 347,415 | 595,681 |
Net precious metals subject to commodity price risk | 1,154 | 175 |
Precious metals forward contracts at market values | ||
Precious metal subject to derivative financial instruments: | ||
Market value of derivative financial instruments | 274,994 | 462,231 |
Precious metals futures contracts at market values | ||
Precious metal subject to derivative financial instruments: | ||
Market value of derivative financial instruments | $ 72,421 | $ 133,450 |
Derivative Instruments and He68
Derivative Instruments and Hedging Transactions (Outstanding Commitments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Derivative [Line Items] | ||
Purchase commitments | $ 342,287 | $ 587,687 |
Sales commitments | (138,022) | (121,602) |
Margin sales commitments | (5,988) | (7,936) |
Open derivative contracts | 347,415 | 595,681 |
Forward contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | 274,994 | 462,231 |
Future contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | $ 72,421 | $ 133,450 |
Derivative Instruments and He69
Derivative Instruments and Hedging Transactions (Exchange Rate Management) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||
Derivative open positions expected settlement period | 2 days | |
Unrealized gain on foreign exchange | $ 30 | $ 60 |
Foreign Exchange | ||
Derivative [Line Items] | ||
Open inventory sale commitments | 4,130 | 2,213 |
Forward contracts | ||
Derivative [Line Items] | ||
Open inventory sale commitments | $ 3,026 | $ 2,235 |
Futures and Forward Contract | ||
Derivative [Line Items] | ||
Derivative open positions expected settlement period | 30 days |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Net (loss) income before provision for income taxes | $ (3,411) | $ 10,785 |
U.S. | ||
Operating Loss Carryforwards [Line Items] | ||
Net (loss) income before provision for income taxes | (3,446) | 10,745 |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Net (loss) income before provision for income taxes | $ 35 | $ 40 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Current: | ||
Federal | $ 42 | $ 13,642 |
State and local | (96) | 879 |
Foreign | (27) | (20) |
Provision for income taxes | (81) | 14,501 |
Deferred: | ||
Federal | 361 | (10,117) |
State and local | (272) | (663) |
Deferred Income Tax Expense (Benefit) | 89 | (10,780) |
Provision for income taxes | $ 8 | $ 3,721 |
Income Taxes (Reconciliation) (
Income Taxes (Reconciliation) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Statutory tax rate | 21.00% | 35.00% | 28.06% | 35.00% |
Federal income tax | $ (957) | $ 3,775 | ||
State tax, net of federal benefit | (98) | 210 | ||
Uncertain tax positions | (50) | (147) | ||
Change in valuation allowance | (56) | 12 | ||
Tax Act | 1,244 | 0 | ||
Other | (75) | (129) | ||
Provision for income taxes | $ 8 | $ 3,721 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | |||||||
Effective tax rate | 0.20% | 34.50% | |||||
Net adjustment to deferred income tax | $ 200 | $ 3,700 | |||||
Tax benefit related to our pretax operating loss | 200 | 1,000 | |||||
Tax Act | $ 1,244 | $ 0 | |||||
Statutory tax rate | 21.00% | 35.00% | 28.06% | 35.00% | |||
Income taxes receivable | 1,553 | $ 1,553 | $ 1,553 | $ 0 | |||
Income taxes payable | 0 | 0 | 0 | 1,418 | |||
Deferred tax assets - non-current | 3,870 | 3,870 | 3,870 | 3,959 | |||
Valuation allowance | 0 | 0 | 0 | 56 | |||
Accrued tax expense | 147 | 147 | 147 | 197 | $ 280 | ||
Interest expense accrued | 48 | 48 | 48 | ||||
Penalties accrued | 40 | 40 | 40 | ||||
Accrued liabilities | 235 | 235 | 235 | ||||
Interest expense | (50) | (26) | |||||
Penalties expense | (13) | (39) | |||||
Reallocation of deferred state net operating loss from former parent, tax settlement | 300 | ||||||
State and Local Jurisdiction | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Deferred tax assets - non-current | 1,700 | 1,700 | 1,700 | 1,400 | |||
Operating loss carryforwards | 15,500 | 15,500 | 15,500 | 12,500 | |||
Tax effected | 1,700 | 1,700 | 1,700 | 700 | |||
U.S. | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Deferred tax assets - non-current | 2,200 | 2,200 | 2,200 | 2,500 | |||
Operating loss carryforwards | $ 2,900 | $ 2,900 | $ 2,900 | $ 0 | |||
Scenario, Forecast | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Statutory tax rate | 21.00% |
Income Taxes (Deferred Tax) (De
Income Taxes (Deferred Tax) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Accrued compensation | $ 86 | $ 121 |
Deferred rent | 236 | 367 |
Unrealized loss on open purchase and sale commitments | 2,351 | 5,026 |
Stock-based compensation | 635 | 582 |
State tax accrual | 37 | 112 |
Net operating loss carry forwards | 1,657 | 705 |
Other | 141 | 132 |
Deferred tax assets | 5,143 | 7,045 |
Less: valuation allowances | 0 | (56) |
Deferred tax assets after valuation allowances | 5,143 | 6,989 |
Intangible assets | (206) | (1,347) |
Unrealized gain on futures and forward contracts | (146) | (474) |
Fixed assets | (5) | (298) |
Inventories | (319) | (454) |
Earnings from equity method investment | (283) | (296) |
Investment in Partnership | (287) | (161) |
Other | (27) | 0 |
Deferred tax liabilities | (1,273) | (3,030) |
Net deferred tax asset | $ 3,870 | $ 3,959 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 197 | $ 280 |
Reductions due to lapse of statute of limitations | (2) | (97) |
Additions as a result of tax positions taken during current period | 0 | 14 |
Reductions as a result of tax positions of prior years | (48) | 0 |
Ending balance | $ 147 | $ 197 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Aug. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 01, 2018 | Sep. 19, 2017 | Aug. 31, 2016 |
Related Party Transaction [Line Items] | ||||||
Receivable | $ 13,240,000 | $ 0 | ||||
Payables | 8,872,000 | 2,353,000 | ||||
Note payable - related party | 0 | 500,000 | ||||
Sales | 425,305,000 | 552,695,000 | ||||
Purchases | 358,003,000 | 55,606,000 | ||||
Income (loss) from equity method investment | 421,000 | 94,000 | ||||
Equity method investment | 7,888,000 | 7,467,000 | ||||
March1, 2018 Loan Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Maximum borrowing capacity available | $ 10,000,000 | |||||
Participation interest, percentage of net profits realized on sale | 10.00% | |||||
Former Parent | ||||||
Related Party Transaction [Line Items] | ||||||
Receivable | 13,240,000 | 0 | ||||
Payables | 0 | 27,000 | ||||
Sales | 50,512,000 | 47,384,000 | ||||
Purchases | 344,348,000 | 47,979,000 | ||||
Former Parent | September 19, 2017 Loan Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Short term loan receivable | 3,000,000 | |||||
Maximum borrowing capacity available | $ 5,300,000 | |||||
Former Parent | March1, 2018 Loan Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Short term loan receivable | 9,500,000 | 0 | ||||
Equity method investee | ||||||
Related Party Transaction [Line Items] | ||||||
Receivable | 0 | 0 | ||||
Payables | 920,000 | 558,000 | ||||
Sales | 359,872,000 | 477,477,000 | ||||
Purchases | 5,959,000 | 2,979,000 | ||||
SilverTowne | ||||||
Related Party Transaction [Line Items] | ||||||
Receivable | 0 | 0 | ||||
Payables | 242,000 | 1,768,000 | ||||
Accounts receivable | 300,000 | |||||
Accrued liabilities | 600,000 | |||||
Sales | 14,921,000 | 27,834,000 | ||||
Purchases | 7,696,000 | 4,648,000 | ||||
Affiliated entities | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income | 4,216,000 | 2,958,000 | ||||
Interest expense | 648,000 | 3,000 | ||||
Affiliated entities | Interest Income from Secured Loans Receivable | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income | 290,000 | 171,000 | ||||
Affiliated entities | Interest Income from Finance Products | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income | 3,926,000 | 2,787,000 | ||||
Affiliated entities | Interest expense incurred related to long-term debt obligation | ||||||
Related Party Transaction [Line Items] | ||||||
Interest expense | 648,000 | 0 | ||||
Affiliated entities | Interest expense incurred related to notes payable | ||||||
Related Party Transaction [Line Items] | ||||||
Interest expense | 0 | 3,000 | ||||
SilverTowne Mint | ||||||
Related Party Transaction [Line Items] | ||||||
Note payable - related party | $ 500,000 | |||||
Goldline Lenders | ||||||
Related Party Transaction [Line Items] | ||||||
Receivable | 0 | 0 | ||||
Payables | 7,710,000 | $ 0 | ||||
Debt instrument, face amount | 7,500,000 | |||||
Other long-term liabilities (related party) | 200,000 | |||||
Goldline, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Borrowings due on demand | 7,200,000 | |||||
Liabilities incurred for the acquisition | $ 7,500,000 | |||||
Unamortized debt issuance expense | 274,000 | |||||
Debt issuance costs, net | $ 210,000 |
Financing Agreements (Details)
Financing Agreements (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2016 | |
Schedule Of Financing Arrangements [Line Items] | |||
Interest expense, notes payable | $ 648,000 | ||
Percentage of total expense recognized | 4.70% | ||
Effective rate of interest | 9.25% | ||
Liability on borrowed metals | $ 280,346,000 | $ 5,625,000 | |
Product financing obligation | 113,940,000 | 135,343,000 | |
Line of Credit | Trading credit facility | |||
Schedule Of Financing Arrangements [Line Items] | |||
Interest expense, notes payable | $ 7,900,000 | $ 6,400,000 | |
Percentage of total expense recognized | 57.00% | 63.60% | |
Effective rate of interest | 3.96% | 3.18% | |
Line of Credit | Trading credit facility | A-Mark | Trading credit facility | |||
Schedule Of Financing Arrangements [Line Items] | |||
Line of credit, current borrowing capacity | $ 260,000,000 | $ 210,000,000 | |
Line of credit, accordion option | $ 50,000,000 | ||
Payments of financing costs | 2,600,000 | ||
Accumulated amortization of loan cost | $ 500,000 | $ 100,000 | |
Variable rate basis | one-month LIBOR | ||
Credit facility, interest rate at period end | 2.09% | 1.17% | |
Borrowings due on demand | $ 200,000,000 | $ 180,000,000 | |
Borrowings available | 22,100,000 | $ 45,600,000 | |
Line of credit facility, tangible net worth financial covenant | $ 47,500,000 | ||
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% |
Financing Agreements (Subordina
Financing Agreements (Subordinate Debt Financing) (Details) - USD ($) | Aug. 28, 2017 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Interest expense, notes payable | $ 648,000 | |
Percentage of total expense recognized | 4.70% | |
Effective rate of interest | 9.25% | |
Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | $ 7,500,000 | |
Borrowings due on demand | $ 7,200,000 | |
Unamortized debt issuance expense | 274,000 | |
Debt issuance costs, net | $ 210,000 | |
Affiliates | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | 4,550,000 | |
Chief Executive Officer, Director and principal stockholder | Gregory N. Roberts | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | 587,500 | |
Principal stockholder | William D. Richardson | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | 587,500 | |
Chairman of the Board and Director | Jeffrey D. Benjamin | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | 1,000,000 | |
Director | Ellis Landau | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | 375,000 | |
Director | William Montgomery | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | 1,500,000 | |
Director | Jess Ravich | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | 500,000 | |
Non-affiliated members | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Liabilities incurred for the acquisition | $ 2,950,000 | |
Silver Bow Ventures, LLC | Gregory N. Roberts | ||
Debt Instrument [Line Items] | ||
Ownership percentage | 50.00% | |
Percentage of indebtedness (percentage) | 50.00% | |
Silver Bow Ventures, LLC | William D. Richardson | ||
Debt Instrument [Line Items] | ||
Ownership percentage | 50.00% | |
Percentage of indebtedness (percentage) | 50.00% | |
Libra Securities Holdings, LLC | Jess Ravich | ||
Debt Instrument [Line Items] | ||
Ownership percentage | 100.00% | |
Loans Payable | Goldline, LLC | ||
Debt Instrument [Line Items] | ||
Stated interest rate (in percentage) | 8.50% | |
Debt instrument, additional interest, percentage of total principal (in percentage) | 3.00% | |
Debt instrument, additional interest, percentage of cumulative three year EBITDA (in percentage) | 10.00% | |
Debt instrument, additional interest, percentage of cumulative three year EBITDA, amount | $ 10,000,000 | |
Debt instrument, term (years) | 3 years |
Commitments and Contingencies79
Commitments and Contingencies (Narrative) (Details) | 12 Months Ended | |
Jun. 30, 2018USD ($)ft²$ / ft² | Jun. 30, 2017USD ($) | |
Operating Leased Assets [Line Items] | ||
Term of lease (in years) | 5 years | |
Letters of credit outstanding | $ | $ 400,000 | |
Rent expense | $ | $ 1,300,000 | $ 800,000 |
Maximum annual contributions per employee, percent | 90.00% | |
Employer matching contribution, percent of match, percentage | 30.00% | |
Employer matching contribution, percent of employees' gross pay, percentage | 60.00% | |
Employer contribution | $ | $ 180,000 | $ 81,000 |
El Segundo, California | ||
Operating Leased Assets [Line Items] | ||
Area under lease (in sq feet) | ft² | 9,000 | |
Rent expense (usd per sqft) | $ / ft² | 3.71 | |
Annual increase, percentage | 3.00% | |
Las Vegas, Nevada | ||
Operating Leased Assets [Line Items] | ||
Area under lease (in sq feet) | ft² | 17,600 | |
Rent expense (usd per sqft) | $ / ft² | 1.59 | |
Annual increase, percentage | 3.00% | |
Los Angeles, California | ||
Operating Leased Assets [Line Items] | ||
Area under lease (in sq feet) | ft² | 21,500 | |
Rent expense (usd per sqft) | $ / ft² | 2.68 | |
Annual increase, percentage | 3.00% |
Commitments and Contingencies80
Commitments and Contingencies (Future Lease Expenses) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Operating | |
2,019 | $ 1,448 |
2,020 | 1,491 |
2,021 | 1,528 |
2,022 | 1,250 |
2,023 | 834 |
Thereafter | 2,044 |
Total | 8,595 |
Capital | |
2,019 | 10 |
2,020 | 10 |
2,021 | 10 |
2,022 | 5 |
2,023 | 0 |
Thereafter | 0 |
Total | 35 |
Less amounts representing interest | (2) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $ 33 |
Commitments and Contingencies C
Commitments and Contingencies Commitment and Contingencies (Operational Contengencies) (Details) - ounce | Aug. 31, 2016 | Apr. 30, 2017 | Jun. 30, 2018 |
Long-term Purchase Commitment [Line Items] | |||
Term of lease (in years) | 5 years | ||
Asahi Refining USA, Inc | |||
Long-term Purchase Commitment [Line Items] | |||
Term of lease (in years) | 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 | 235,000 | |
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 ($) | Feb. 27, 2018 | Dec. 13, 2017 | Nov. 02, 2017 | Sep. 27, 2017 | May 25, 2017 | Feb. 24, 2017 | Dec. 01, 2016 | Oct. 07, 2016 | May 27, 2016 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Dividends paid (usd per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.24 | $ 0.30 | |
Share-based compensation expense | $ 1,191,106 | $ 966,190 | |||||||||
Compensation expense not yet recognized | $ 1,500,000 | ||||||||||
Compensation expense not yet recognized, period for recognition | 1 year 10 months 29 days | ||||||||||
Stock Appreciation Rights (SARs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expiration period (in years) | 10 years | ||||||||||
2014 Stock Award and Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of additional shares authorized (shares) | 525,000 | ||||||||||
Maximum amount of shares per employee (shares) | 250,000 | ||||||||||
Shares granted under the plan (shares) | 523,445 | ||||||||||
Non Employee Director Except Chairman of the Board | 2014 Stock Award and Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum grant date fair value | $ 300,000 | ||||||||||
Chairman of the Board and Director | 2014 Stock Award and Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum grant date fair value | $ 600,000 |
Stockholders' Equity (Option Ac
Stockholders' Equity (Option Activity Rollforward) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Options | ||
Options, beginning balance (shares) | 741,327 | |
Granted through stock option plan (shares) | 166,605 | |
Cancellations, expirations and forfeitures (shares) | (65,417) | |
Options, ending balance (shares) | 842,515 | |
Shares exercisable at end of the period | 554,281 | |
Weighted Average Exercise Price Per Share | ||
Beginning balance (in dollars per share) | $ 17.89 | |
Granted through stock option plan (in dollars per share) | 16.19 | |
Cancellations, expirations and forfeitures (usd per share) | 17.50 | |
Ending balance (in dollars per share) | 17.59 | |
Shares exercisable at end of period (in dollars per share) | $ 16.37 | |
Intrinsic value, balance | $ 821 | $ 1,514 |
Intrinsic Value, Shares exercisable at end of period | $ 821 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 5.99 | $ 6.19 |
Exercisable, weighted average grant date fair value (in dollars per share) | $ 6.20 |
Stockholders' Equity (Options O
Stockholders' Equity (Options Outstanding, Range of Exercise Prices and Other Details) (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock options outstanding, Number of Shares Outstanding (shares) | 842,515 | 741,327 |
Stock options outstanding, Weighted Average Remaining Contractual Life | 7 years 1 month 8 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 17.59 | $ 17.89 |
Stock options exercisable, Number of Shares Exercisable (shares) | 554,281 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 6 years 5 months 7 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 16.37 | |
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 | 4 years 4 months 7 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.39 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 134,239 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 4 years 4 months 7 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.39 | |
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) | 148,888 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 6 years 1 month 21 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 12.55 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 98,888 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 4 years 3 months 12 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.94 | |
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) | 459,388 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 8 years 1 month 7 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 20.19 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 271,154 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 8 years 11 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 20.26 | |
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 | 7 years 7 months 23 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 25.50 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 50,000 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 7 years 7 months 23 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 25.50 |
Customer and Supplier Concent85
Customer and Supplier Concentrations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Concentration Risk [Line Items] | ||
Revenues | $ 7,606,248 | $ 6,989,624 |
Receivables, net | 35,856 | 39,295 |
Customer concentrations | ||
Concentration Risk [Line Items] | ||
Revenues | 7,606,248 | 6,989,624 |
Receivables, net | $ 35,856 | $ 39,295 |
Concentration risk, percentage | 100.00% | 100.00% |
Revenue | Customer concentrations | ||
Concentration Risk [Line Items] | ||
Revenues | $ 3,751,913 | $ 2,664,458 |
Concentration risk, percentage | 49.30% | 38.20% |
Accounts Receivable | Customer concentrations | ||
Concentration Risk [Line Items] | ||
Receivables, net | $ 22,435 | $ 27,889 |
Concentration risk, percentage | 62.50% | 71.00% |
HSBC Bank USA | Revenue | Customer concentrations | ||
Concentration Risk [Line Items] | ||
Revenues | $ 2,039,134 | $ 1,492,926 |
Concentration risk, percentage | 26.80% | 21.40% |
Mitsubishi Intl. Corp. | Revenue | Customer concentrations | ||
Concentration Risk [Line Items] | ||
Revenues | $ 1,712,779 | $ 1,171,532 |
Concentration risk, percentage | 22.50% | 16.80% |
Customer A | Accounts Receivable | Customer concentrations | ||
Concentration Risk [Line Items] | ||
Receivables, net | $ 14,967 | $ 27,072 |
Concentration risk, percentage | 41.70% | 68.90% |
Customer B | Accounts Receivable | Customer concentrations | ||
Concentration Risk [Line Items] | ||
Receivables, net | $ 7,468 | $ 817 |
Concentration risk, percentage | 20.80% | 2.10% |
Segment and Geographic Inform86
Segment and Geographic Information (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018USD ($)Segment | Jun. 30, 2017USD ($) | Aug. 28, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
Revenues | $ 7,606,248 | $ 6,989,624 | |
Gross profit | $ 29,443 | $ 31,334 | |
Gross margin percentage by segment | 0.387% | 0.448% | |
Selling, general and administrative expenses | $ 33,398 | $ 23,343 | |
Goodwill and intangible asset impairment | 2,654 | 0 | |
Interest income | 16,105 | 12,553 | |
Interest expense | 13,891 | 10,117 | |
Other income, net | 954 | 298 | |
Total net (loss) income before provision for income taxes | (3,411) | 10,785 | |
Depreciation and amortization | (2,626) | (1,521) | |
Advertising expense | (3,234) | (673) | |
Total precious metals held under financing arrangements | 262,566 | 0 | |
Total inventories | 280,116 | 284,659 | |
Assets | 743,001 | 478,500 | |
Long term assets | 36,018 | 31,479 | |
Total capital expenditures on property and equipment | 1,317 | 2,265 | |
Intangibles, including goodwill | 15,742 | 12,946 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,081,161 | 6,537,863 | |
Total inventories | 273,008 | 276,809 | |
Assets | 733,131 | 469,114 | |
Long term assets | 35,965 | 31,423 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 303,514 | 260,489 | |
Total inventories | 1,965 | 3,154 | |
Assets | 4,727 | 4,690 | |
Long term assets | 53 | 56 | |
North America, excluding United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 214,895 | 177,734 | |
Total inventories | 4,976 | 4,310 | |
Assets | 4,976 | 4,310 | |
Asia | |||
Segment Reporting Information [Line Items] | |||
Total inventories | 167 | 386 | |
Assets | 167 | 386 | |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,554 | 7,706 | |
Africa | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1 | 0 | |
Australia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,123 | 5,832 | |
Wholesale Trading & Ancillary Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,538,856 | 6,989,624 | |
Gross profit | $ 24,109 | $ 31,334 | |
Gross margin percentage by segment | 0.32% | 0.448% | |
Selling, general and administrative expenses | $ (21,096) | $ (21,529) | |
Interest income | 6,473 | 4,814 | |
Interest expense | (7,778) | (6,176) | |
Other income, net | 984 | 358 | |
Total net (loss) income before provision for income taxes | 2,692 | 8,801 | |
Depreciation and amortization | (1,560) | (1,511) | |
Advertising expense | (553) | (646) | |
Total precious metals held under financing arrangements | 262,566 | 0 | |
Total inventories | 272,034 | 284,659 | |
Assets | 616,522 | 478,500 | |
Long term assets | 31,328 | 31,479 | |
Total capital expenditures on property and equipment | 1,104 | 2,265 | |
Intangibles, including goodwill | 12,516 | 12,946 | |
Secured Lending | |||
Segment Reporting Information [Line Items] | |||
Selling, general and administrative expenses | (1,689) | (1,814) | |
Interest income | 9,632 | 7,739 | |
Interest expense | (5,465) | (3,941) | |
Total net (loss) income before provision for income taxes | 2,478 | 1,984 | |
Depreciation and amortization | (3) | (10) | |
Advertising expense | (28) | (27) | |
Assets | 111,304 | 0 | |
Long term assets | 102 | 0 | |
Total capital expenditures on property and equipment | 102 | $ 0 | |
Direct Sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 67,392 | ||
Gross profit | $ 5,334 | ||
Gross margin percentage by segment | 7.915% | ||
Selling, general and administrative expenses | $ (10,613) | ||
Goodwill and intangible asset impairment | (2,654) | ||
Interest expense | (648) | ||
Total net (loss) income before provision for income taxes | (8,581) | ||
Depreciation and amortization | (1,063) | ||
Advertising expense | (2,653) | ||
Total inventories | 8,082 | ||
Assets | 15,175 | ||
Long term assets | 4,588 | ||
Total capital expenditures on property and equipment | 111 | ||
Intangibles, including goodwill | 3,226 | ||
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 22,500 | ||
Goldline, LLC | |||
Segment Reporting Information [Line Items] | |||
Property plant equipment acquired | 1,806 | $ 1,800 | |
SilverTowne | |||
Segment Reporting Information [Line Items] | |||
Property plant equipment acquired | $ 2,100 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Senior Subordinated Notes - Subsequent Event | Sep. 14, 2018USD ($) |
Secured Senior Term Notes, Series 2018-1, Class A | |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 72,000,000 |
Stated interest rate (in percentage) | 4.98% |
Secured Senior Term Notes, Series 2018-1, Class B | |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 28,000,000 |
Stated interest rate (in percentage) | 5.98% |