AMRK - Earnings call transcript Q3 2022 | A-Mark Precious Metals, Inc.

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Operator

Good afternoon, and welcome to the A-Mark Precious Metals conference call for the fiscal quarter ended March 31, 2022. My name is Ali, and I will be your operator this afternoon.

Before this call, A-Mark issued its results for the fiscal third quarter 2022 in the press release, which is available in the Investor Relations section of the company's website at www.amark.com.

You can find a link to the Investor Relations section at the top of the home page.

Joining us for today's call are A-Mark's CEO, Greg Roberts; President, Thor Gjerdrum; and CFO, Kathleen Simpson-Taylor.

will call we questions. remarks, their open to your Following provide the cautions by Then call. conclude I'll management the this made before we statements call, necessary forward-looking regarding during the being everyone replay for a the link Investor this remind A-Mark made the via to in section like will be would call I is Relations recorded available website. and available that of

Now Greg Roberts. Mr. to A-Mark's I CEO, would like please to proceed. turn the call over Sir,

Gregory Roberts

Thank and you afternoon good to Hello? good and today. afternoon, Ali, everyone. joining Ali, you, Thank for Thank everyone. call our you,

continued A-Mark's Our we demand third strong out fiscal net share income per diluted on before adjusted or and provision was business, our for A-Mark quarter return another strong a our per generated pretax income as provide factors final basis, for tailwinds and period we to we for taxes $X.XX share, year. as X.X% On of with remain Macroeconomic we grew optimistic an $XX adjusted XX% million equity. of finish quarter elevated sequentially. income

implying additional many an last enterprise increased A-Mark will stock, definitive outstanding consisting direct-to-consumer in week, our our equity or value A-Mark press to Gold interest for of market. acquire SGB, of with million. approximately $XX in international DTC an XX% of cash of common exposure shares A-Mark's the million release providing strategic Bull, the SGB a to increase us $XXX of agreement from or signed you As in million, investment Silver $XX and saw XXX,XXX

an of supplier opportunities for minting leveraging several and agreement over past growth with and in extended and supply years SGB. see our participated success continued while We through growth SGB's wholesale sources have A-Mark, the

if Canada, of conditions million of profit the acquisition of $XX.X and and in Gold million, precious revenue purchase XX%. with would the closing Bull quarter after XXXX. March current during customary the exercisable to fiscal to The in $XX-plus fourth regulatory ended and million exercised, is option close that bring is income XX-month Silver interest XX.X% XX period acquired the one close expected gross to e-commerce $XXX months in total our interest of leading XXXX XX retailers SGB, the subject also ownership We is an XX, additional we between pretax approval. and of to metals

Bull's During this Silver grew same period, base XX%. Gold by customer

cash in the We JM just expense milestone. acquisition, before amortization since that JM over for closed year income the and pretax are Bullion's acquisition. we to pleased paid the have Bullion a report depreciation hit consideration an cumulative we JMB surpassed has important

the We remain JMB continue about to optimistic in our prospects business. ahead for DTC

I to further walk Afterwards, Kathleen, like you take CFO, it the provide our metrics. I'd financials our President, in Thor KPIs our business detail. growth discuss update and to call away. Simpson-Taylor, operational Now Kathleen of our more to Then will our through over Gjerdrum, a and turn will strategy.

Kathleen Simpson-Taylor

you, Thank everyone. afternoon, Greg, and good

selling increase The increase DTC revenues increased of JMB due billion prices XX% of XXXX QX revenue an contributed represented JMB ounces Our sold of average and Revenue acquisition to XXXX consolidated in compared last fiscal sold from primarily QX QX $X.XX XX% from of $X.XX in QX in last in The the and year. decrease the of the billion in consolidated due in revenue increase DTC QX revenues to XXXX. the of to partially prices fiscal to a year. selling compared X% March of fiscal to of X% is for QX silver X% The of gold last year. in for segment by lower by segment higher gold, offset average silver. ounces XXXX contributed was in

million due same lower DTC compared March revenues to prices of revenue QX higher year of segment of period, For in year offset JMB $XX.X gross for segment. average The XXXX. offset from JMB for increased segment XXXX, year. an The to billion by in the to the segment, year due period. prior consolidated in total X X-month XXXX gross by due profit partially JMB contributed increase revenues gold, from to sales same contributed XX% is from fiscal increase million to QX in Revenue ended acquisition earned higher in selling gross XX% compared X.XX% X% billion the XX% DTC X% the in of silver. revenue of profits sold XXXX, in silver period. revenue and fiscal increase represented March in the months to selling was XX, revenue X represented by to increase $XX.X was ago in Gross ounces the for year. earned Services of profits of from the Gross QX the $X.XX contributed X% of profit our lower from the the XX, $X.XX consolidated consolidated average and of partially X.XX% prices the or wholesale for gold the DTC last The XX% increased gross months primarily profit X-month March ago ended profit or of the by Ancillary period. The last

incurred DTC profits million, or in profit partially fees increase performance-based including $X.X or year consulting by to $XXX.X ago by sales same was QX of million million. last million expenses the March by to gross gross $XX.X period, earned JMB, of lower X.XX% higher the compensation of earned from ended X.X% primarily segment. increased XX% the and $XX.X XXXX. from The segment, to of profits revenue for X-month profit million to The increased SG&A fiscal lower increased million from Gross XX, in wholesale profit XX% XXXX of $XXX was X-month increase revenue of in profit JMB of period period. offset by contributed Ancillary from the expenses million QX For gross the Services total due accruals XX% gross $X.X offset expense, for professional the the due gross represented year. $X.X

million increased and the same general of XX% million, increased increased from period. expenses professional to consulting year. increase $X.X higher by to million in million $X.X QX $XX.X and of fees of $X.X For amortization period, The fiscal was compensation expenses QX administrative million XXXX for from of including expense, $X.X $XX.X accruals last million the performance-based Depreciation in and incurred of selling, $X.X million. to year ago million costs increased JMB, XXX% and $XX.X due primarily expense X-month insurance

QX amortization increase to was to period. JMB. in income Interest acquired amortization intangibles year The primarily fiscal by finance ago million depreciation higher XXX% income. of year. QX was partly lower XXXX due related $X.X same for to product For million Secured last and from $X.X $XX.X of $X.X income increased in million The period, increase due the other segment, earned offset by expense interest increased XX% to Lending X-month million the to from our

period, increased offset and by income million Lending interest in The For million our ago to QX for finance expense XX% payable, XXXX $XX.X the income The to period. increase higher primarily Interest with year the segment interest million amortization million year. notes by in expense costs. from decrease Secured $XX.X X% our $X.X product and higher issuance $X.X income. trading aggregate by of $X.X associated debt from interest other earned same $X.X increased million due primarily a last driven was X-month was facility fiscal servicing to increase credit in million of of QX including fees, loan of

driven equity debt million arrangements, from to by period, $XX.X $X.X million metals. $X.X Earnings and in Credit QX million net of equity in loan ago a costs, as reported X-month investments. XX% million period. wholly in expense $X.X decrease method of fees, by ago quarter. with investment, year the Facility associated XXXX company liabilities owned by $X.X offset million $X.X borrowed a JMB, from The increased offset a million other $X.X is former earnings decreased servicing includes notes same decrease to subsidiary, $XX.X to was payable, million to associated including increased primarily XX% product equity interest $X.X related our our amortization a the method same of increase by million financing decrease interest with of of issuance million For the in from method on million year now which $X.X million from related $X.X the Trading The investments

period, million for investment. the decrease includes $XX.X a from of which decrease million million For equity The $X.XX the fiscal the $X.X And company share. investment XX% $XX.X to per share JMB, X-month a our from related XXXX million the $X.X by of same in This attributable of earnings earnings of increased income net to diluted $X.X period. company year year. company former other Net $X.XX equity investments million the this million wholly method now income by to method subsidiary. decreased is to attributable diluted or the reported as quarter QX net of totaled equity $XX.X last per owned in method million is to or compares $XX.X ago offset from third

equity QX million JMB with may you our year interest recall, As this of connection $XX.X in in acquisition. remeasurement last gain on a preexisting included

costs the the $XX.X the was Excluding associated included acquisition. $X.X QX company Net income to remeasurement JMB company the net also income to for nonrecurring attributable of attributable gain, XXXX million. fiscal with million

weighted the on with average third last during depreciation, for the third outstanding before year weighted amortization, for $X.XX compared EPS of million quarter million costs of gains XXXX share quarter. non-GAAP totaled average QX Adjusted a The taxes, per which based and the $X.XX shares were to is X.X average for net higher X.X million XXXX. income provision quarter acquisition excludes million million diluted fiscal compared Our fiscal income per measure, weighted for financial XX.X shares shares current outstanding fiscal 'XX, than quarter of year. fiscal share remeasurement diluted outstanding $XX.X or diluted in prior the or QX the outstanding those $XX.X for fiscal

diluted year the X-month diluted million acquisition. For the equity with net The in the preexisting income attributable compares on JMB prior in to net connection $X.XX $XX.X the this included our totaled company company prior This $XX.XX $XXX.X gains per or period X-month or period, interest year million per share. previously million mentioned remeasurement attributable share to period. $XX.X of the to income in

period X-month the year attributable to attributable of included with was acquisition Excluding this to company income remeasurement $XX.X net Net the nonrecurring gain, the costs for of $X.X million. million company JMB. the associated prior also income

X-month measure share taxes, $XXX.X period $XXX.X which year compares during share, diluted the for non-GAAP per million million provision in prior totaled X-month income $XX.XX per diluted financial for the for prior on outstanding net or based average a period. diluted to the $XX.XX the period XX.X million or outstanding Our X shares million shares before year the income EPS with is average weighted weighted Adjusted period. compared

balance fiscal Turning to quarter million $XXX.X sheet. end at compared year to we $XX.X end, At XXXX. our cash had million of of the

our to year planned balances July of release purchases first in of fiscal the X. higher a year few significant were ending on prior Our due that code Mints in July cash precious the was new XXXX, due designed specifically to days U.S. metals part following bullion

Our of was end the tangible quarter. up $XXX.X the net at million, quarter of from worth the at the end prior $XXX.X million

of of Finally, dividend make Each date, to as on of to accessible the business basis Trading May the declared dividend record employees stock close adjusted X, of after today, June investors. to common our to split will expected additional our of has at the announced begin trading close more we split receive stock ownership stock the a for earnings our on of a stock a X-for-X stockholder A-Mark's of distributed XXXX. form is a held one in release June common XX, Directors and X, be Board in record on on share XXXX. XXXX, every on share stock

any dividend interest completes stock As on as stockholders' inherent ownership my this a in financial A-Mark this dividend. no impact individual stock there reminder, has is dilution That in summary. no

Now on who performance to our Thor? provide an to Thor, will update key turn metrics. like over the call I'd

Thor Gjerdrum

Thank you, Kathleen.

We first which X is for Looking from key in year of metrics up QX, QX third down from the XXXX. operational and sold quarter. months XX% and gold XXX,XXX at fiscal X% ounces of of last prior the quarter our

from million of million sold last X.XX which in which up sold was we X% QX up period, X% ounces of X% XXXX, We the X-month the from year same and period year. last gold, is from of silver QX XX.X last ounces fiscal For quarter. up

was in For was of the year. XXX,XXX customer XX% number sold which we XXXX, XX.X silver, of period last period, XXX% last segment DTC the was from up fiscal X-month million in the which QX up of year. same of ounces QX The new from

DTC product of ticket Goldline decreased in up QX new was to fiscal XX% QX volume, the base, For XXXX and a these XXX% DTC although DTC fiscal processed the year. organic orders fiscal of JMB. was was of the which second in total last is to X-month The customers customers which period, JMB, year. which attributable to is number JMB customer customers The QX XXXX growth same of from the XX% of due was number to last mainly in note of total PMPP, growth of year XXX,XXX, period to segment but in XXXX. that in Total represents QX XXX,XXX of XXXX the metrics the QX total the by the X,XXX% and in number was not the acquired segment quarter as to of increase attributable from X% increased it's the from fiscal X,XXX,XXX, increase important from addition last of customers

increased volume DTC XXX,XXX the from fiscal the volume, desk, of product processed Wholesale decreased QX but ticket X-month period year, For number Through XXXX. the in period, total decreased year. increased which orders ticket X% the period XX,XXX last period, to to from last from quarter second XX,XXX X-month XX% our the of ticket trading the same same XX% XXX% last volume by represents to year. of wholesale

X.X of the third prior fiscal is year X% decrease a a was in inventory For from in X.X X.X, decrease and from our QX the quarter. which XX% ratio turn quarter, last

the X-month X.X, the our XX% same For year which down from ago turnover inventory was ratio was period. period,

increase end the XXXX an of portfolio March increase December is which the rising from an at the now over March That Typically, million, it up of number and number closing December prices. of the XX% loans concludes for loan the totaled end of XX, totaled decrease prepared XX, XXXX. XX% remarks. of loans dollar loan increase of and our declining of prices Greg? of [loan] I'll at turn The periods Greg versus up secured March my Finally, of the end value to XX% X,XXX, from of from during and XX% XXXX. remarks. end March periods of $XXX.X back from during versus

Gregory Roberts

convert keeping the report favorable QX. I'm Thus CyberMetals where you, QX, far silver, ounces to to conditions about have Thor. us for outlook These the palladium. by launched company the Thank flow redemption be CyberMetals successfully remained JMB. optimistic as with platinum of digital and in may to gold, market A-Mark's online has the or has customers JMB performance have fabricated the for digital storage holdings purchase customers continued, platform, to fractional products that customer. integrated products strong their metal designated pleased may precious or an option directly shipped full via

assets during extraordinary efforts We business expand outstanding and plan broader look community with pleased we earnings in account During during forward accumulated experienced mint processed the are our $XXX,XXX have Minting the ended which And quarter, commercially level progress quarter was meet to of platform of and constraints. of due important with the repeat CyberMetals platform on of April to quarter, performance supply metals from XXXX. our was periods and The beta to during launched we XXX struggle early customers. updates the chain trades critically management. sovereign the under traction X,XXX very in the new our call. to precious we truly registrants nearly customers, the testing the providing new The is next and demand to further marketing the when

facility. high of single level of achieved expansion new the our produced XXX,XXX silver XX% in of we Minting ounces and capabilities. this SilverTowne the our week. fiscal order a options with up over In Mint third per a million include production are of of week, year-over-year record and this on expanding produced an of an During silver evaluating to average quarter, capitalize further level X And production demand, may ounces

week double also XX,XXX ounces the recently capacity current year. expected by SilverTowne ounce blanking which an week conversion We mint, with an our at fiscal ounces XXX,XXX per the completed added end to per rounds, of additional additional X of for the

terms of and segments and In to further we strategic diversify our evaluate within our that additional of investments can domestically opportunities continue all acquisitions, fit stream, both model our geographically. revenue and

metals, Our stockholders fully retail results us and and continues to drive term. and to a strong business range precious of wide sellers product, Operator? our model further provide of with a for over our augment wholesale integrated us steady to the access allowing long buyers capabilities

Operator

from come Partners. [Operator Instructions] first question will Scutt, Capital Andrew Our ROTH

Andrew Scutt

strong another the DTC guys with do on Congrats you of first customers has segment. sell to number question My quarter. the through

tripled be to kind number with to due platforms? active I'm So can guys I a the you going to that's saw believe activity talk quarter-over-quarter. dynamics. customers But across various market lumpy your And sure you of increased what

Gregory Roberts

Happy try that Yes. and to answer question.

XX% that note the new to customers the is seen. the have were customers quarter-over-quarter we up that the thing as high think as of quality is and important I

current the in spending that customers indicates we're than size been where dividends optimistic far total, want customers future. the believe order X very to stress a is significantly being higher purchases. But that in I we're to of discuss just we're and with quality what the QX, and you've I attracting in going past, -- going the the think on point value the to moment that customers, very is a it I we lifetime the amount, significantly value very really initial customers higher anyway, subsequent both total. us in our really and I has we're hit was into that . time right are -- now are at accumulating purchase a over their And customers high-quality initial of we million pay I the their acquiring that the is enthusiastic to and that of the

So the environment is very good.

Goldline, just what Our strong Bullion, Gold Bull, marketing seeing investment healthy, JM Silver quality efforts our well in at of we're as at Pinehurst very at a as customers.

Andrew Scutt

Great. for just And then follow-up one me.

increase You output, to like XX% And SilverTowne. on week. production ounces a touched up you on looks million had in almost of quarter, in year-over-year increase X weekly your getting the a it out margin

kind ounces various So can of how the increased you with through out kind week coming a the the flowing more there SilverTowne? and of XXX,XXX about see talk your you units plans business product of

Gregory Roberts

that see as to we Sure. this right Silver all strategy at well of , weekly now, And as at about all as can that other production continue we what vertical to think is we it's production is Gold ownership go. option Bull increase just our can. connected. an doing the at negotiated our part as XX%, the distribution an demand to we owned related one increased Gold Silver new we And well This going strategy at make. where basis see we that sovereign as daily, mint get previously. to JM try our there well is of marketing that that as much And we A-Mark making our as to to that haven't certainly, brands, important of is announcement But them DTC of growth our about the Bullion international as look within customers is around at I And where when physically the get initiatives producing CyberMetals our product I our what growing increased talk we important we and we our see we that guys can DTC metals. sell product overall much to Sunshine talk increasing believe important growing. see as doing control production and And platform at when the of are our integration. properties we're sure it's that as to some thing on to a And products very to as you very Bull tied we is attract world this the that touched in we business production SilverTowne, Mint, the

us let job one throughout high not the do customers it's of we the have Brent now, So that bring quarter important have and at other great sell SilverTowne where it When us that production really ounces is attract that of the XX/X I well Bull X horizon customers as able we're these effort a competitors as new a I to these on put say of really milestone. that and working production us able customers million think quality to a acquiring really on DTC a But Sunshine the to to all right the so I brands think number we have right and SilverTowne together we're would is heightened down. with And customers, Silver production allowed some plentiful right And that's very keep now. need not. Mint doing reasons new there. quarter at team connected. product our at very their was what see that. to the the we're the allowed there And demand, just and from we're now had up the for so that A and good great Gold in. are has Jamie and

Operator

Gibas next Greg from Our is Northland at coming question Securities.

Gregory Gibas

between split efforts customers maybe users? are BXC that for over nice existing your well. And results. from coming bit more providing early in attract ones about that strong that I Was from your the incentives hear new maybe maybe kind relative instance? guess, going platform you talk sounds JMB? talk you existing versus on move pretty wondering a to a maybe expectations, for April. marketing CyberMetals launch to customers Are little is Congrats could It the to could there if solid to JMB, for to of you the about like,

Gregory Roberts

point, customers. this we've Sure. To JMB much focused pretty existing exclusively on

really those offerings customers. any of We haven't outside done existing

of current special a number it offerings. fourth relates marketing, to the quarter, we're doing in As

round commemorates offering that launch the we CyberMetals also a we of are are options to crossed X-ounce get on that have And registered platform. and of silver some trading customers over CyberMetals. kind JMB We offering discounted the CyberMetals

budget that in far, seeing that currently most seeing expectations starting exciting. try -- as not the X, continue And what market it's other definitely this is on for is younger. quarter this would fiscal a from April plan -- registered which we're likely JMB with we're The good and demographics seeing little and July launch early we I the we're bit. getting I we working think and next of start year, exceeding trending DTC have we're yet. quarter in my customers. test marketing what with we're we to we ideas outside customers. So physical very can actually say -- new to we're of we've of attract But a of will working what have And at business very giving time, very what are on done will or on attracting around, to as feel out that that very we And data there metrics. so some JMB to is functioning say has said brand-new number to to using doing us before, the customers new from market our is enthusiastic continue this. that opportunity having platform close this it's, aggressive great. going And And far. And And to updates it that us. and eye. we going a customers maybe think X customers, for been to we investors optimistic real on The be improve I'd being a And experience ways we to feedback We're forward customers. and plan as these move updating we've ago months X, this on we great the we this some seen we look forward. thought super hadn't The great. for we're keep I a platform

Gregory Gibas

your but in to, markets there. additional our up hear. the follow Gold And expect a you Could looking Silver new, Strategically market one. And in investment. exposure could a of investment exposure? not focus then, of obviously, But Bull, brands little maybe investment more multiple Great. looking good recent ranges types kind of or or follow-up maybe for forward. what maybe forward, going on And about kind what to I target you're you Yes. If types forward having Canadian on maybe terms elsewhere? BXC appreciate imagine other new M&A opportunities? on bit the of updates that. then your of strategy are a talk maybe greater to big going do you to the color breakdown is expanded be I to I the you of those

Gregory Roberts

Sure. I familiar for mean natural very us. a a Gold we're with of Silver this bit Bull, was so

founders another. fantastic, the We partners minority as partners fantastic fantastic so have that it of been years. on involved Board are business of way have been with the Bull, think to trading since the X Silver gentlemen them and our XX or XXXX, are since The the I I've business. in Gold I think, been relates interest XXXX one in

significant. to probably are the in that Gold that dealers shown in really has are largest a not that the in couple ability good as America. North great broker niche Canada metals what of a player or Silver done Silver people job. in they've Canada business. precious a customers many think potential impressive as light dominant Bull in has in many bigger, less potentially in have of to Canada other Bull. There's been been I very And has Their same less so growth so be Gold we but it the online and

increased have more a work with harder the little So Canadian we that can believe satisfy we're our a producing of quite that to bit develop. customers Bull Royal few Mint, a and the in product done strong to more Germany. product I started capacity Gold with with think transactions the have relationship platform Germany even to in actually that Silver as team long well as Silver they I worked on in Canada. to Gold we get Bull They've

service also is to I to logistics think expanding to facility there, where Gold the in I Silver Silver have opportunity customers Bull grow for we believe in Gold struggled I also that logistics will good at their grow satisfy our a DTC of the Bull We're which looking other site. opportunity there. an a Canadian located. on particular, brands, believe Calgary, it's Canada. in have that JM some get they traffic Bullion that customer

number looking JM through finally, we're has to in Silver a consider to Bull customers have able a possibly I does help few have exposure do have places Canadian joint significant had that some in a where And Singapore, -- other Gold what satisfy New So a we satisfy of been presence any Bull. historically. Gold efforts customers then Asia. not Silver Zealand Southeast They to not and Bullion

think logistics I we us. be it product trying A-Mark will forward for down to is to there. the So think look expertise with opportunity I Bull will And combining grow what and Gold we a Silver -- great

Operator

next The from Instructions] at question is Sey JAM. Jacobs [Operator

Seymour Jacobs

I've got a few couple questions. distinct

go So one through a let them at just me time.

relate your On it forward? going that and the Sunshine guess say. minority acquisition, revenue also I understanding and Am it stake through the would not the it of should took. I thus will or SGB earnings would I I income relate statement to investment, to also -- it flow And you correctly guess

Gregory Roberts

Bull Correct. XX-plus continue percent Silver interest, for to we're our Gold At account in to Sunshine, to them what at we treat we'll method. going the current equity do similar where

and real the what in of Q investments, of our identified we that and the we them before. an now do overall The Kathleen change if not them. partner. control and A-Mark's the consolidated it. the support just owners we account would for still on in exercise we any business the business. what we look for quarter-to-quarter as to rules. similar will Sunshine. them that's here option that to And the way. bring do change. then basis accounting over we something and a moment. and this that business will see minority But the get account they'll business. for interest will are is And are XX%, how as a when would of with consolidate month-to-month and with to them our accounting financials running about the them take in control our And have one and K would And Obviously, majority founders has be under be you'll accounting And to then is we and not This at be They're talked into So

Seymour Jacobs

get So that look you're or way is like to the I on which I'd at one your emitting capital. thoughts

You outstanding. have your And issuing the cash. million greater cost of going capital stock to to is be shares of $XX-some-odd

bigger So in your foregone income the to costs income some cost reflected outstanding, in There's a And that, greater net is denominator cost the there's capital change shares of the the no and statement. whatever. but or number of actual income. to

run the a It's of from basis, not little just acquisition. income a earnings. accounting So statement. suffers shareholder GAAP the the widens the value actually to dilutive of of But in bit. gap sort through fact, income created the the statement it it's being through kind And

Gregory Roberts

you on just Kathleen, this. just me let because has why she's it been little explained don't color this more exactly working probably Let Sey. Kathleen I a haven't give right to to -- Kathleen talk because

Kathleen Simpson-Taylor

Sure.

we X.X% X.X% earnings Gold method So currently, record in in income line. And their net we Bull. our books of records investments of their equity approximately own and from Silver

we'll income then close time, our XX.X%. the if acquisition, record And would and we and XX.X% records. at so of we their conclude And into such own net books

to definitely move we the as will financing performance. subject strong So funding be their continued -- forward, finance we

Seymour Jacobs

It income Are you the talking or about in... the does statement up show sheet? balance

Kathleen Simpson-Taylor

Income statement.

Seymour Jacobs

Okay.

show So up. it does

Kathleen Simpson-Taylor

percentage book including investments, We do does investments. line consistent from our their statement. that's Sunshine. method equity equity Yes, of financials, we earnings entitled it earnings method of have show that that with all And in income our in share item in up our

Seymour Jacobs

them since benefited income going statement SGB your increased well bought has as forward. Sunshine's you earnings

Kathleen Simpson-Taylor

since SGB benefiting statement we that our has have been income ownership interest.

Gregory Roberts

for And go income you our B, to where get our C, reflected area we -- If A, D. our investments company those statements. And where the equity are investments. filings, in the you it's do see they account in

arrears. in do a them, we Now report month believe, I

than to carrying And transaction X.X% just lower investment certainly, valuation was much the when at. a had control was of overall finish the is of month-to-month. our obviously, not of of prior note, them, Silver this on JM at we value carrying we're a when and Bull we've we've investment of did we the a quarter-to-quarter carrying to timing is in the valuation important we've Gold thing that I to or always the discussion much pay. here what of what get Bullion which negotiated take Bullion the company been the JM little reflective in think, exactly And So our markup XXX% investment value it had transaction, bit But to at a we when smaller. made

for we assuming write-up. some So see ultimately accounted a is complete way you with the do will JM and which further we things amount, them, write-up transactions continue the Bullion

there on on balance is some sheet these So investments. the equity unrealized gain

worth sense. the included really growing financials, that our value sheet balance is more, them until of if in don't that in we we that Assuming they're XXX% integrate for they're account and businesses the our makes and

Seymour Jacobs

Yes.

are, market to seem us months, they less in silver that wide wanted sense last what especially of -- who separate versus say unable some out to X prices orders? spot customers you're another and been X, have sort as downside know a and is the than sort -- you're brands I to there the or I that wider be getting that So sort of various they're any I buy recent they friends fill in and ask are me as ago, to short-term about were like and who And current say, they amount than tight would conditions when the of to of acquaintances gold seem ever inquired yours able they've to months said to the of to question. you want. of month is from really benefiting be the

Gregory Roberts

they What want?

Seymour Jacobs

they they extended be wondering I'm could way basis -- JMB other ship were all that like in a of if -- sort Yes. it at XX might could and revenue And told or recognition has and the something that days brand times And in ship in that. more affecting revenue?

Gregory Roberts

great she No. been that not job I production, And say of job transactions it more accounting that does when her I reverse mean, forward have Kathleen will we this. delivered. complicated future to for have makes sell does a because

her. So for there work extra is

of our noted, you number than to We have did equity we our fewer with able X are dealing customers days of years the ownership supply. account as in we percentage are are a companies -- for biggest ago because these a larger

we make sovereign balance we're at and and delivery mints. a for we And our what what date. from on we in do physically getting customers making physically slotting have So what we're we're we and can private mints what is future what

the first. other And that and to and Gold so there -- a is Silver now customers, couple of JM taken as our relates Bull of reality marketplace Goldline they're it Bullion And of the getting right larger care number being up and are Pinehurst that profit making, because retail a profit distributed. user. And the of of more beneficiary we're of ounces that we profit they're percentage end generated the to that or that higher that's are the and of collecting

and we we to us. commitment In But to quote do is or where wherever customer days. price, is ounces expecting. and buffalo book call customer we price XX,XXX at So to the we for the slot And of We ask we times, an to looking have commit. synchronized we they a is we metal, that calendar happy smaller commitment line require do delivery, orchestrated And out every are day, want. the them be in not what able commit. deposits. it SilverTowne's having very future it, ask -- XXX book, right we bars our about we're but them customers dance date customer, let's it, for XX aren't X-ounce has call quoting get production perform delivery in may that to we're them they a maybe that now but don't We And July as delivery XX. the balancing to until, to

Now to #X quoting has October say time to There's than and A-Mark competitors. been delivery. I that our have at or more will -- shorter more A-Mark's availability periods continues product product competitor September wholesale

to it And increased So premium. we know, it A-Mark is up, is causing industry-wide. be premiums continue that isn't those to as major and just you A-Mark, the a of is beneficiary --

We've times function. to We've this a say is this us. many haven't to not has a it just seen demand we probably the longer. this new past. it size been dealt anything quite book it's before. We've in sustained before, managed and I managed it So But the before. with forward would like through

Seymour Jacobs

Right.

to numbers leads kind comparisons. it your the We the the is really strong. sounds know as really -- year-over-year mind, forget what it been, openings about great and it guess the account -- asked it's seems, ticket than about growth additional to in me greater about of to strong, sequentially, an new price the as reporting increase in my that you're all of spot. in just margin of question, add revenues, one So high to reasons I that which reported getting the question, I ever and you're Bullion transactions and percentage up is versus a numbers comments seems And really sizes JM

numbers, some the all seem So the the recognition strong, account comp seem the be margins opening, transaction so that revenue of revenue because there the sort quarter-over-quarter. I delayed than may all was thinking commentary, stronger

Gregory Roberts

much there. mean too some analysis. issues really I on my there time Right. timing be could part spend this of I don't

percentage doubt happening right really for share what focus what's in their I today, proprietary at regardless their think number simple of which reason is not available a of or Whereas sold out market Silver that or at side available. at, and I on offerings from Bull. are DTC Gold is we taking there are competitors where segment premiums brands look you if Goldline our that away have no a competitors, on, the more our that for is the now, the are of high sale their product JM at

to customers well efforts think have have you that that do benefiting new DTC even as through And are -- as have an as us not delivery. both or our a longer product I market us. I of much delayed that's competitors combination So think finding our

customers. these I value new the I just lot to taking seeing of think initial the of competitors. us don't a are in uptick, I we that order that's what believe nice customers order said, necessarily like average our value think from a attributed we and is

think just are I level is it's important very wallet at And we're is. the products who's DTC big not an their quality making mints. sovereign those all to directly I in is our customers the buying we're there note or even from and now necessarily think right the And of good. of that products underlying shift how sales buying

was the if end have other the that we're of negatively value price of a lifetime That value to of be higher product necessarily One other will And least going in those is bit in phenomenas the a customers. in a product may wholesalers. now or higher we're quarter And profit. with buying gross on but secondary the the number customers. I mix lifetime value new transaction, customers at reflect that distributors obviously, at -- the me, doesn't these to new the at But from certainly little And the our in a a buying because that it of value last new we're seen with that the we've paying that outweighed percentage of it of making the that market. my we're percentage-wise I affecting first on slightly some overall material be bit reflect day, value. secondary head that of the on customers little less I --

Seymour Jacobs

by were am I Or it say tax that that earnings $X.XX quarter? Is multiplying last But after-tax, adjusted press which or share. share this cash as a one EPS the share pretax as And the some $X.XX there? for per simple releases give straightforward this was GAAP, or tax minus rate much to numbers. missing earnings, is, something question reason, Okay. quarter more rate tend the a cash about and

Gregory Roberts

amortization JM Bullion some good as costs was as goodwill now using is I mean the it after-tax. give better The well consider what And acquisition the -- numbers. well transaction. the had going in the initially this Bullion $X.XX as that as pretax accelerate that have depreciation causing it as Bullion we're net-net of in to what the through a from some an we success felt takes as quarter for. amortization pure us and We depreciation into the $X.XX the going after-tax than really $X.XX of But reflects is we adds of to intangible JM -- deal. as are to back rate JM we on have to the it a planned all we and the that reflects what as The relates what the that adjustment very $X.XX. was account high

Seymour Jacobs

Right.

the quotes when know, Bloomberg, with estimates per stocks, using. adjusted it you So are on share that quotes number analysts

I taxed floating share, that's it So it's that's what... I $X.XX that think think is out per the because -- since estimate should there basically the be provided

Gregory Roberts

if of that Yes, yes. number, the $X.XX. comparable press our $X which And it EPS. we to I I you an mean $X was a release. apples-to-apples is are explaining in after-tax look the predicting think And the were at reflected analysts, analysts

Bloomberg what with take is familiar doing, but not I'll look I'm So it. at a certainly

Seymour Jacobs

the Bloomberg number. number, GAAP adjusted tends quote not the to

or So the the whatever, expectations. actually is adjusted from analyst $X.XX, number $X.XX

it So taxed, the yes. be would $X.XX

Gregory Roberts

And what at of and we and numbers opposed of they're the the isn't the on the little charges, that people that we're as noncash to ways hope which we're try to we at I mean, able it something making and enough this our go or what what can. But are is that we certainly, I accurate. I think I there is -- end And forecast tax bit with. that. it working can keeping generating. point, digest them the presentation. to in can But the a I that in as day, ways give for the we're report Q I at reflective cash that look to better, if is point versus there's as it make do I doing the our or quoting obviously, doing, counting how quarter we well are on is And will the press $X.XX that the we -- we is to it tomorrow and what more bank use how started to cash And have information it it that we're me, much we we're what $X.XX as the to to refine away. made clear some much $X.XX much payment going we do continue release. we as best using And the think to properly out as actually

Operator

Forte coming [Operator Instructions] Your next from question Davidson. is from Tom

Thomas Forte

Great.

For I'll once. questions ask at efficiency's sake, both my

then business. your the prices of operating And you of how high can level, on that's second, Greg, current when a and cons for pros your Greg, extended talk gold about, are impacting would thoughts of period I So elevated time? inflation business appreciate your at and

Gregory Roberts

we're our -- times, level of Sure. we've as price off. spend how day-to-day of the a silver something of in say the has is days gold, been in incredibly on I we good because I the both I gold hedged. can basis talked fully has mean not in last XX not for both to about lot and fourth results that time volatility XX on and many quarter started a the us, believe does

January. And Our better we here reporting in time started March actually was which, from than a was we was I last February And had again, December, about bit out better little hangover, January. quarter than very slow strong. think, we're talked February. a little

opinion, the gold. on So is, a of we volatility it very have much my seen significant in And uptick. reflected

$XXX range has about had in low days Silver the about think -- XX from gold I high. a has range. you had have $X to last

good So that is us. for very

on drop was had and and week, gold over the the report, one Monday month as down of of our bit usually usual, days. days where of we and As a we a down, XX this silver significant quite was last busiest

generally as very try Again, I've before. for for interest rates busier the question? So generally us. good about and drop, people higher have volumes tend we when is much talked Higher much Inflation prices us. it good to inflation buy dips. The are to

dovish they great. didn't. XXX that inflation, questions year And very relates well it's just yesterday, to And that it. I in continued haven't really comments gold Fed ago problem. as paid stuff. well would the that a do been they the I a silver denial doing. The is that be inflation, Fed. and say balance see to to to what volatility be of is point note are very a whereas to lockstep they don't and have if to this they're right personally, I XX they I that's it, what interest found tough very I be clear November of rates balance have to year raised everybody don't to is they're yesterday's down continued see Fed as inflation, really see heard going a now say don't there. What solution Obviously, But basis to of as issue. basis Bitcoin the smart They I this sorry and performance. the for this series going at interest to year-to-date, paying rises and think see inflation seem we it. a they're this really wanted But particularly really is stop in think on that a everything that to know and, to it There they interesting about points slowing twice but have going and what poor the do is solve election perform trying rates a problem but fairly I some equities cryptos, for a is we're on trying political

buyers that So trustworthy is it not continues buy to our trust XX dollar all be as to drive business and from or this the X Fed their our people going to are for is very what and don't drive good and months relates now. to able

it's me, So usual. to as business just

Operator

concludes his the for call now over remark. session. Roberts that At closing to time, Mr. like this our back to question-and-answer turn I'd

Gregory Roberts

joining us I you joining keeping commitment again to you much. of A-Mark's progress the for forward in thank for everybody thanks employees success Thank very dedication apprised you future. today. Many and very to their today. much And Appreciate to A-Mark's our look

Operator

includes today's this important statement conclude we forward-looking call, would made A-Mark's call. during to statement that cautions like regarding safe harbor I provide Before

actual the to the plans, and and public forward-looking execute such failure governmental Securities general within there differ in actual with call, in risks were current individually they should, words estimates, this regarding respond of or in that in international differ pricing; Act uncertainties, changes expressed performance, company's Statements described that only the climate; and business, cause relates which strategy the in similar certain and costs the expressions and statements Reform Exchange anticipate, the XXXX results business which the made materially of and expectations, expect, believe, Act forward-looking competition the future of made. the like variations forward-looking to statements. of XXXX. this the could risks as commodity plan, depress to include the and to Future planned; as doing those financial statements, Commission. domestic and events. future increased speak intend, other identify to today's A-Mark's Securities business and or A-Mark's The date meaning model political filings for failure implied events could in the the as Private company's were are on which services, changes statements from of higher-margin events, Factors anticipated; of market to incurred and as results During Exchanges thereof could foresee, execute objectives, Securities these Litigation greater-than-anticipated risks environment following: markets; the cause economic, aggregate, company's the growth strategy; of

website. per reliance would to I you available are any the recording us finally, or on be the performance to these section Thank joining call earning undue via cautioned of publicly everyone related statements. for to will forward-looking that And earnings A-Mark's statements statements. are a company for any to statements. company's estimates share revenues and today's remind for a link call. undertakes in Investors of Readers replay forward-looking future Additionally, today like of forward-looking The no update revise place improved not and obligation

You may now disconnect.

A-Mark Precious Metals (AMRK) 7 May 222022 Q3 Earnings call transcript