Earnings call transcript Q3 2023

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Operator

Good afternoon and welcome to the A-Mark Precious Metals Conference Call for the Fiscal Third Quarter ended March 31, 2023. My name is Kelly and I will be your operator this afternoon.

Before this call, A-Mark issued its results for the fiscal third quarter 2023 in a press release which is available in the Investor Relations section of the company's website at www.amark.com.

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

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

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

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

Gregory Roberts

our call you, for on Thank and joining everyone good thanks and today. Kelly afternoon, us

As of of reported release yielding EPS particularly of highlighted return platform, These a uncertainty performance we net our in a our in just quarter times A-Mark, of few equity earnings third of the effectiveness income marked increased on minutes fully quarterly and of by for market volatility. macroeconomic integrated solid ago, results $XX.X $X.XX, X%. and the million further another diluted period demonstrate financial

allow to which providing integrated contributed Our demand profit in to increases of a to increased quarter. consistent revenue inventory, with quarter-over-quarter us third in of us during of during gross XX% source XX% capabilities supply periods and optimize the access

our remain gross margin with percentage and our our vision in to active Our driven basis our contribute We to segment of of the pursuit and overall in opportunities the third the significantly increase XXXX. of point compared direct-to-consumer generating results, by XX% geographic consolidated align impressively strategic for to to fiscal continued investment that profit quarter XXX gross our footprint. quarter expand a segment's

near performance per record X overall to consistently million currently ounces remains levels. output producing Our a is minting business contributor production over our consistent The week. mint with

mint's for products and Jamie strong its accepted IRAs, allows the reputation his but in as into products A-Mark's base. leading the accounts SilvertownMint of and expanding third the retirement high achieve certification we manufacturer tirelessly worked also The a only not standards management. customer to team achieved them. further quarter, Meadows this or During reaffirms silver recognition be quality bullion long-standing have certification of ISO to individual congratulate facility's

to value our purchased XXX,XXX stock aggregate our attractive million. the pleased shares We of an during deliver I'm the of repurchase common to $X.X quarter investment to the report program as for value company view Finally, another its for share opportunity and shareholders. an way company that

I further it will Thor more Now to in President, growth our to update Kathleen you it our key detail. I'll take over CFO, discuss our Simpson-Taylor, Gjerdrum, walk through business and on a away. our will Then provide Kathleen, metrics. Afterwards, and our turn operating take financials questions. strategy

afternoon, Thank Greg everyone. and you, good

fiscal QX to of $X.X QX for revenues Our year. increased in from $X.X last XX% billion XXXX billion

was in average or of silver, offset which Excluding ounces $XXX.X silver $XXX.X forward sales, due higher increase million an gold selling in increase of million and revenues gold. partially sold average by prices sold to lower X% a ounces decrease and decreased of of selling prices an

of QX XX% XXXX contributed in the XX% segment QX in QX JMD to represented year. for in last last consolidated fiscal The compared of DTC XX% year. of revenue contributed of the XX% QX Bullion XXXX consolidated revenues and of JM fiscal Revenue by the consolidated revenue of

year revenues $X.X our same For the the $X.X period. in X-month ago period, increased to billion from billion X%

XX% March decrease forward XXXX, increase sold. for in silver an segment average a gold respectively. selling due sales, and XX, X XX% XX% our and increase which ounces offset million to in decreased and The silver an and DTC Excluding the contributed revenue of of ended the of by partially or consolidated months XXXX prices gold lower ounces sold was revenue of $XXX.X $XXX.X million

to X of year. same X% million of XX% the or Revenue XXXX X.XX% profit the X.XX% XXXX, compared year $XX.X QX consolidated from to or period. of ago months March increased XX% in QX by revenue JMB for the last in revenue revenues $XX.X million represented for XX, contributed Gross ended fiscal of

forward X.X% revenue in last direct-to-consumer increase of ancillary was from margin gross million X.X% $XXX.X sales and overall gross increased wholesale of due higher from to gross sales, revenue percentage year. in the increase the both profits services to earned segments. Excluding profit The and

period. to segment the contributed of fiscal represented XX% profit to profit same profit Gross XXXX gross year by contributed our last in JMB QX QX of the compared consolidated represented by in in in QX year. XX% XXXX gross ago XX% compared consolidated Gross the profit XX% of DTC fiscal

gross from period. revenue the ago million For to profit period, the XX% $XXX.X $XXX.X X.X% million of or same year of increased X-month in or X.X% revenue

$XXX.X XX% sales earned from the both the the to million the margin increase of gross both X.X% increase XXXX, ended percentage of segments. Excluding The sales, X-month and XX, profit gross gross profits forward services profit ancillary and contributed to DTC revenue. from X.X% March XXXX profit Gross due and consolidated represented of the in respectively. by of revenue segment higher in was increased periods DTC gross wholesale

Gross higher QX the to The in increase an of and compensation costs X consolidated $XX.X increase profit ended profit increased XXXX respectively. contributed XX, $X.X of and $X.X partially costs in increase increase professional expenses lower consulting fees advertising offset $X.X expense, million, computer-related including million in gross due million, million million, $X.X year. million performance-based by JMB months insurance QX in $X.X expenses accruals of of for of of by March an an million. to primarily fiscal $XX.X represented XXXX, last XX% XX% and XX% for SG&A XXXX was of and from

acquired $XX.X $X.X related million primarily expenses from XX% in intangibles decrease amortization For JMB. million SG&A period, due to the of million to $XX.X to increased a X-month

amortization to JMB. in to the to For the $XX.X amortization period. expense a acquired in intangibles million was decrease and same million primarily The period, X-month depreciation $XX.X from million year $X.X XX% of decrease related ago decreased due

in $X.X primarily Lending was higher from segment. offset by due income earned to partially million The last XX% increased $X.X interest million XXXX aggregate income of QX to product QX fiscal income, other by Secured for income interest our in Interest finance lower increase year.

increased X.X% X-month partially period, income million to Lending segment. other same The product year interest by lower primarily increase in the by income, the interest ago For finance from period. due million income in in $XX.X Secured was our to aggregate $XX.X increase offset income an interest earned

driven loan Interest The facility financing by million million offset arrangements, credit last AMCF fees. expense of to million was debt for and $X.X product million including increased a servicing amortization $X.X interest with QX related the our in costs partially by expense fiscal of increase $X.X trading XX% of to $X.X of QX XXXX from primarily year. $X.X notes, and issuance associated million decrease in

to the increased X-month interest partially $X.X facility and the same AMCF the from For of $X.X expense million related offset was $X.X year $X.X period, to ago increase financing driven $XX.X decrease in servicing borrowed The by period. million issuance associated trading notes, by million a $XX.X in primarily with debt and including million million with costs, of million credit loan XX% of amortization associated fees. product interest on arrangements metals, liabilities our

investments was to same of net decreased to earnings due in loss QX method compared $X.X primarily equity year $X.X from the XXXX lower decrease a losses equity of our earnings million to million XXX% quarter. method Earnings in ago of The investees.

in of The method Silver from June XX% $X.X was million equity period, increased X-month to in due same from our $X.X interest acquired additional was increase XX% net the million investments ownership XXXX. Bull to which million ago the For year period. primarily $X Gold in earnings

million income fiscal quarter the totaled attributable to of of net X split for XXXX to income XXXX. a of share in share. of stock third or or million the company $X.XX form of company the Net per for last effect $XX.X year. dividend to diluted in attributable diluted the X the the in $X.XX QX per This for stock Adjusted compares $XX.X June

the in to period, share per the to net or the net the compares $XX.X $XXX.X XXXX. $X.XX that X of X million effect $X.XX the June For stock occurred ago million period, of of which diluted split X-month same or a dividend the attributable company diluted totaled for year income share income to in in form adjusted the company for attributable stock per

taxes the in same quarter. measure the net X-month QX X% XXXX the to million income a same $XX.X expenses, fiscal totaled acquisition financial provision compared Adjusted XX% a excludes year for of before ago period taxes, increase performance million, decrease $XXX.X income million, income a and for for for year period. before depreciation non-GAAP Adjusted million provision $XX.X totaled amortization income net in ago $XXX.X which from

period. X-month to liquidity in non-GAAP compared to $XX.X measure million, for XXXX in a million EBITDA XXXX. million, for a fiscal period EBITDA, year fiscal XX% totaled a the same totaled ago $XXX.X $XXX.X $XX.X compared million decrease QX X% the increase QX

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

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

uses we as announced of paid cash the policy quarter performance, expected April. declared Directors The cash factors, of in and cash be of $X.XX number declaration of per dividend A-Mark's requirements by including in applicable resources, the announced determination press its company reaffirmed covenants. based Directors the share dividends and the It July in is release, a common dividend in each regular Finally, to that paid will XXXX. on subject including and Board the next of prior regular alternative quarterly the cash quarterly future, cash financial Board the previously quarter bank is available of the which next company's

That summary. completes financial my

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

Thor Gjerdrum

Kathleen. you, Thank

sold of QX of at the from previous metrics from was Looking XXXX, up XX% ounces year X% gold was for but fiscal QX down quarter which the quarter. we XXXX our fiscal in operating last of third key XXX,XXX

period, ago the million from which X% X-month same X.X of we the year was For ounces gold down sold period.

million XX.X fiscal up X% X% down from last QX XXXX sold last ounces was was of QX but from quarter. silver which in year We of

up year silver ago the period, For sold XX% XXX same X-month is period. ounces million from the of we which

quarter. the was a is last is our XX% customers which purchase new in fiscal from QX account new that the The time or and for set customers XXXX number number have of down of XX% made first was in from QX defined segment year of up the DTC XX,XXX or down last a period registered which during as

customers is of new XXXX. list note in important the of of quarter acquired the to attributable approximately were the previous to October It customer BGASC in XX%

segment For ago of XX% number BGASC in new new the was customers new in to customers year in list the the were DTC was up Approximately the same the period. the of October which of XX% in attributable of period XXX,XXX customers X-month XXX,XXX X-month customer our period, acquired from XXXX.

$X.X acquired approximately base XX% The number in year. well which XXXX. segment at the customers DTC was increase due JMB to from our customers end was a of total year-over-year of customer as prior our as in organic primarily the the October The BGASC in quarter of million from the customer list total of was third growth increase

represents excluding accumulation orders, The QX DTC was segment value of program orders customers from XXXX DTC order fiscal average dollar was segment fiscal product $XXX which during the down value X,XXX to third-party which QX average XXXX. delivered

DTC order period, from which For same compares was our average the the to period. X,XXX year $X,XXX value ago X-month

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

our period, X-month period was X.X% a the was last year. ratio from XX% the X-month For of decrease which inventory turnover

of at of the decrease March the dollar of and from Finally, portfolio XXXX. That XX% XXXX. from totaled loan the December X% March concludes the XXX, The X% XX% from XX, XX, secured down of our totaled of March end from a number March which of remarks. my value million decrease prepared XXXX at XXXX $XX.X end end December XX, a loans of and down is

turn I'll closing to for it over Greg Greg? remarks. now

Gregory Roberts

we close exceptional latter about year. The that experienced the in out bank the the Kathleen. and half fiscal outlook of continued, us A-Mark post Thor you, keeping as our third Thank conditions quarter crisis we optimistic have for market

continue and opportunities growth to to base we expand ahead, our customer geographic Looking further footprint. evaluate our

currently platform are long equipment additional expanding integrated and to us optimistic of business and minting acquiring the realize that proven the our capacity. We process remain growth our of and profitability increase the run. facility to the over in minting in invest to allow will continue further and business We size model

Kelly? concludes my remarks. This

Operator

is Your Davidson. Instructions] question [Operator coming Thomas from D.A. with Forte first

Thomas Forte

quick and ones. Kathleen Thor, quarter. but Greg, So a pretty they're questions fantastic congrats X had on just I Steve,

So I'll go one at a time.

can on your Greg, I back allocation, you capital So see bought in the quarter? onetime including back dividends, give and current shares? you dividends shares thoughts buying

Gregory Roberts

Sure.

worth. net to added our I have we capital, tangible think that added to quarter, post our this

I in the there in capital deploy way. last company quarter had place to felt was an a in a good for think while. this that which had opportunity that we've a buyback plan We

I share. XXX,XXX the think a the for $XX average purchase was shares price around

an saw as And so we that opportunity.

have I robust think pipeline fact, targets. right that we a And of now. continue to in it's acquisition good fairly

in are we're close quarterly on the that So return dividend careful time. factors deploy depending after take to the going Very amount said a a we what all dividend. before, special And that very as the about is to way. usually at look where we discussed proper capital we think at we comfortable shareholders I how depending really with the just on to and have year, fiscal we're

these to pretty do that right So things now I think in that for and comfortable return shareholder all make or are capital of able look position regularly we at value. and we're think things a good those be decisions to we

Thomas Forte

already. on touched You this twice

So what you strategic direct-to-consumer the what can add. add including I more already to anything M&A is you've so you there international far? know on But beyond front, want don't expansion, said

Gregory Roberts

really. mean Not the same. I I it's think

we the we have believe opportunities we for any for and early and acquisitions of a done I we're be we've at a things as or make shareholders in of lot company moment, the opportunities minting can very that looking like finding feel will happen. that a the will developed. the the Whether that those. done always to accretive at wholesale do we have guarantee feel the pipeline the do the that's think business, optimistic that that we're good the opportunities acquisitions continue few in -- them and and good past, have DTC We're we No business sense historically. segment and formula we're have but or open we what about good are in stages and we on I to that think trading

Thomas Forte

And last one me. for

not want may investors that understand fully I this which think I to ask.

who those a business? not prices investors for your So how does familiar, of gold period elevated be may sustained impact

Gregory Roberts

this activity the behind about important is little price talked a circumstances gold for The and a to that of have XX price banks bit past, quarter our a of level quarter almost What of I as believe, were less years. every of the behavior the That last different out, feel. is amount our not really by the client. out there gold. really the But of just People month the in of a different have and matter, didn't behavior And in X a the It particularly the a March was the weeks of reporting was a last volatility of saw of we buying of money the I taking we're end tremendous fear safety. safety. on. were flight of and -- short the at customers exhibited missing month in people was is panic the to April price last of March. tremendous term. It was amount metal

missing very near was and and us. new price of evident was the So for sentiment out highs the strong

environment in talked good to tightly is see a right price we uneasy We the happen there that of and a just our uncertainty, thing drops more of to to the aren't now. that silver time. sentiment bound long The favorable And somewhat that price right periods very still those range there's is overall. period that to Generally, And interest. when world are us. slowest is such and more it's come, over now gold crisis there's seeing the a really particular macro right we've we're us. seeing seems Historically, stimulated for But belief And more be that is future. now there about environment in that volatility. the expect

Operator

is from question next Lucas Riley B. Your Pipes coming with Securities.

Lucas Pipes

a Thank afternoon, end. very more And question touched ask quarter there little you bit everyone. but much, on you prior wanted since I in operator. the about Greg, Good to trends it the just a bit

the a debt around of seemingly folks are the an right mentioned That's now. about. You uncertainty concerned ceiling lot issue

maybe in your year? end the would the in that additional have DTC customer how what shape outlook it product may seen margin color I appreciate terms of So you acquisitions, the some for the the and segment? volume, on then on of

Gregory Roberts

be day. you it factors then crisis, just last a like of And this and seemed like all the to. you was slow you lot much for really it We be It were for and what good February And before we pick periods. on availability. started it March the quarter perform as seems of first I would March. the us. of last number customers. middle -- homework A March very off did asking -- should extremely fairly to you We we just bit last slow. report our were saw seemed I reported night little our for was some saw weeks attuned January premiums up for of pretty continued activity expect to and aspects again, a that. The to like panic your that and ensue, all happened December was quarter And your there reasons week were mentioned different X tight range-bound were, fairly and the there were since the to the of the week really and that or them has inventory us. had that. that behavior business we and And us from SVB the saw of

that that to We being we work just and plenty was success all a quality prepared that of what had attribute such of inventory. seen everybody it. done so here period time hadn't could just we before. a and to seemed compressed new advantage the flight take short into of there I the of level has And fear like

every seems fear advantage took is I And the level really with. And or believe first seen the a Monday well businesses of part this the comes I activity It our the a April continue part very government for bodes part And right there's like world. Sunday for of event to kind that was active of in increase deal just and the having the and our DTC new economy next. every overall now full Our market in we us. of demand. what that the of in uncertainty the the early think or crisis afternoon of have quarter, of overall morning,

positioned now. like we good well some and we're we're So feel seeing activity right

Lucas Pipes

payback Thank take being to And a what opportunity. you and that that of on touch And that also capital requires, the And IRA for that then believe, looking position market you certification periods congratulations work? market wanted in the How you're investments. Mint, I sort saw at? wondered for the I take of advantage does opportunity that really Mint expansion expansion outlays the to what's I what I on the quickly. front? qualifies

Gregory Roberts

relates As that less in million. expand It small construction probably certain expense expansion this $X The it we online the will acquire that overall build now. a we've capital to a opportunity line very for expansion, machiner to we product require expect the will be in than right some active had new probably are small is an equipment to and then September.

mean not it's So of a ton I money.

we to market what but September, if and If But relates be depend this the the new have expansion anywhere super X demand the it activity active, a quicker the would X to on investment, be this return machine and in to bit it right where for. have is could X-year X-year now, now we October, going this on could somewhere between range a shooting payback. is we're little As goes November. on level it's to near

the which by the inclusion the is most to their have anywhere the to pick certification, accepted by the a any or SilverTowne ecosystem. products IRA trustees process As bit the our of of it time. our name will on be logo in took of for long as majority allows product, it be on relates product either trustees. quite It's the the it it axe product, of a SilverTowne IRA now as arduous But very ISO accepted and

that on So certified. mints had long the to time. are highest only it's Brent something a his Jamie team and a quality and worked for It's testament

in, the a And that a other too we Our Mint certified. -- we as minority they have look are big Sunshine, it at interest accomplishment.

Operator

Andrew Roth question Scutt next MKM. with The from is coming

Andrew Scutt

the on Congrats quarter. strong

some Just here questions of of inventory regarding going kind off the the build. of

an liquidate some process some when touched and thought liquidate here you behind in opportunistic build had guys healthy the March the on and depending when of may on you quarter inventory. You management the build quarter of on market your and touch inventory Can conditions? quarter kind June just guys' you or of may June kind you to

Gregory Roberts

and not Canadian not turns. the Mint the allocation Well, that we're we're We're inventory the allocation June and product both getting booked enough demand Royal continues how currently their to for our U.S. Mint where really program be and The on dictates The product. continuing getting end SilverTowne and be Royal will fast is up enough Sunshine of Canadian pretty inventory Mint either. products. of through

So that it inventory the silver for I dollar-wise very buildup, bars X,XXX lot product. and or see the be build-up margin it our are low gold ounce on inventory of bars lot XXX-ounce might a us. A depends you'll times, guess

the the manufacturers it of that is it composition sell is and depends our much DTC through fabricated sized and how that about or inventory bars So product institutions. will industrial of much sell it really how to of we'll

demand easy is now, we build because -- as build up up what difficult up it much we're we inventory saying as very will So driving would can selling just be us it's or pretty everything build that. to not make and will Right what for we how the in.

towards live week saw had we slowdown and to a played the the and March. opportunistic that demand we the through on continued in call, and of And and end mentioned demand. And as that we up build December spike shelves to last and able on opportunity in it well this of a 'XX demand November it us second of first were January the take has of have for significant and through first I and the As February, very quarter. part was the in out that inventory

going complex just then a do promotion to sheet than It want can be on bit inventory up to some and the that. says the some our with what what is little has And strategically, the opportunity company But lot or makeup. by decides, for it the what balance more a we in future. build

it's complicated item just just more So a the what the line on sheet. balance than is little

Andrew Scutt

And last, just a and quick unpack of that expansion driven just one for the me. It's said little there? nice Was to Can end to see something basis spreads XXX by is you increased a the impact there direct-to-consumer. Or bit. quarter? healthy -- the point you volumes that the else at in

Gregory Roberts

No, I able prepared of it segment or was lot as seemed inventory. our didn't when and a to prepared our to competition to just in sell to have ability a the be DTC much little think product be less be

is the new the is ability We the more and strongly we're sell. for were quarter. very margins. and new the I when we're market reflecting and and was in and counts to advantage our service was good only saw not the customers taking higher. those increase And there's customers take product we little naturally market quarter new of end product that towards good very -- able a product of believe and to had think start available, for And to us. find bit We it I think share the customers I going So we some less when taking of our saw to that price customer

Operator

is question coming next Northland Securities. Greg from with Your Gibas

Gregory Gibas

the here my Congrats Silicon answered the on follow I to Mint. have of facility on of up the strong been at results. wanted questions Most expansion but

covered level little can production we the everything was wanted regarding guess, of of I get of maybe we're match that or, your bit you're know to I comment demand? the to selling a I volume kind But maybe make. of expansion everything. the really a timing seeking of the magnitude kind You and sense

a degree sense to there. wanted get the -- of expansion just the I So what to

Gregory Roberts

property Right. we plan much there's we've a I that's long-term some take was talked for And acquire term that time. bit a a -- And for us. in little that's expansion. some Indiana, going that relates And before as it X to Meadows Jamie but say Winchester, much to would able expansion bigger there's long to more bought

earlier, set of it another machinery a -- to As delivery decided to what specific company machinery. I order had machinery on the of been with and relates described that was the this the company not take

in or so jump in why delivery were take of and set and be able able going we slot And this which online quickly. of machinery we're the is to to to get hopefully August September get very

you to time lead need XX for months equipment. this plan XX to Generally, on of some

we of we add a get -- week a a XXX,XXX-plus jump in the month additional I fully online it's to my that for need. So October, kind understanding ounces front us. this real I'm think XXX,XXX of opportunity likely get us sorry, ounces when capacity to to was this really the of line and something mean, plus It's we for that

of right we're actually can't very It nice having this make that product a of. we forward So looking keeping up for with. fits that to online piece line -- it enough getting fits machinery products And now jump. trouble we're a

normally So worked than we're it very would. quicker to out well going get needed and and us to it's be we able what we for it exactly

very this very, we're happy project. with progress the So making on

Gregory Gibas

supply sometimes feel to like you you it. to And but ask you, past asked trend? to I want you have That's have you know appreciate some comments the pretty U.S. that good Mint trend and from insights any on forward. the Curious the where dynamics into you if how going that did the I hear. color in I I will great there. expect Got

Gregory Roberts

it's now, I continuing. -- what the from tell I Yes. limited I trends can of don't production is mean really. right

products. demand. much U.S. product, you be think so supply not not of And Mint indicate bit to for that's like in the that's to always And well -- demand mint plays just have silver, for long now, customers coming of that I in buy that supply in not going continue certainly, SilverTowne complain. level would out I particularly thing and filling going the out what term, premiums want products And the really enough A-Mark of But Sunshine premiums more but the little gold longer the And look the and in we're for those that to there, product. -- level. continued particularly going our and private demand. and the if the We're premiums that's a there's on we'd our at the silver, products, lack and this elevated good persists, a to particularly us. favor longer think to combination -- right Sunshine to SilverTowne an at a are of mint acceptance

And product of brands product sovereign of stronger that. are illustrates a SilverTowne, manufacturing right the And come ever really our rivals Sunshine we've far the so and mints and than ISO and the is good lot the now. certification at the quality that so

to material what now the product. I it. any if be they're don't their great month. going see that And of or Mint produce sell what But it had So is we'll making to We there's more anticipate happens. is in a any change We significant right could product. able we every love --

Gregory Gibas

Greg. helpful, That's Sure.

already you of think M&A questions answered opportunities regarding there. my I kind

now for So appreciate help. but there it I'll that leave I

Operator

Sebastian The David next with [ph]. Advisors Capital question is from coming Kingan

Unidentified Analyst

silver it runs going your counterparty hedging if risk with on lately? could a you the and curious was little gold your when all to been bit that talk comes I on have about bank

Gregory Roberts

lived and the mean the lived been I relates as and crisis we've counterparties. through MF to we we've crisis large 'XX it global through Yes. there

believe marketplace. risk I strategies is the the one best We management in have what of

X We weeks. counterparty last throughout disruption any have not the seen

most in like in counterparty material institutions we've having positioned the to or too any to to that avoid positions that counterparty have over we And we be our mid-level deem with positions that smaller having to with of really tried risk fail. in the this are could And big deal with. that the or and counterparties we'd we we believe years we area too like XX people engaged country, have fall institutions the with believe Our banks philosophy last continually big to largest category. fail really, is ourselves

And do last on think we I like and managed just job And I really the is about we've years a think we of feel Thor pretty have part this feel we that. years -- or this. how risk that's particularly good good XX I our in management XX and

we always know -- always felt event most the need some 'XX, moved time quite out can were counterparties where our on time a the doing in of focused you from always and hasn't for But 'XX, black you best. is hope changed with that for there been that swan really the our we've and since we You you we at to believe our what this worst and doing high-level case, and higher-risk that I really prepare away for know philosophy business institutions.

Unidentified Analyst

especially on any sales side in Do Very helpful. QX? where QX for you have you versus it. on commentary are Got DTC trending, the saw what

Gregory Roberts

together. of worked feel the -- like everything the month segments last took the of like really really amount tremendous profit businesses of of the there. a all really it. feel gross We quarter. end of at in QX. advantage the I Generated businesses Everything was were I excelling

exceed getting of to to we're and what expectations continues in same optimistic. operations seamless seeing And of metal delivering that say step. we're divisions that very right that together, a process. to now QX, through think working to as somebody's silver ounces XX business all raw It's intense our complex door my rowing the are direction, from it just relates X I of weeks the the I can very

saw demand we weekends in particularly Throughout the spikes over towards couple of March in end. that the a

get products short a hands wanted anything really account as to delivery, in opposed our DTC or overachieved. to in team just really account, a very, were of very time panicked customers brokerage in when a in period their to and people bank ability our Our really

So are I don't just comment can really what's far to firing and on I've say cylinders what we I happen next know week. what seen feel now. XX on right so I going would

Operator

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

Gregory Roberts

apprised -- all continued to Kelly. you you. A-Mark's your for I'd A-Mark's and also of of to Thank like We you employees that keeping to support. joined I'd look shareholders our dedication their you, today. of and for Thank thank forward call like success. thank our Thank joining commitment our for to continued all interest progress.

Operator

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

statements there and During Private XXXX. XXXX Exchange the that plans, Securities the Litigation future relate A-Mark's the within the Act Statements events performance, of Reform made forward-looking meaning Securities today's of Act were and events. future forward-looking call, regarding objectives, expectations, like are of statements

and political changes events, failure the to Factors or cause could as the in actual could differ incurred as the business for uncertainties execute respond include to to following: in pricing; strategy; Future market risk the greater-than-anticipated business A-Mark's or and general actual these changes results planned; as those differ filings competition from Securities results which in anticipated; the international materially strategy company's depress expressed current with domestic company's could the in and growth implied other the the increased costs in individually commodity execute services and Commission. economic, business, that risks environment aggregate governmental to Exchange public of described cause risks the to climate; failure statements. higher-margin doing of to in the the and company's model financial markets

variations on anticipate, words identity estimate, such as dates The similar intend, thereof and which believe, the forward-looking were they should, foresee, speak certain plan which expect, of statements only and made. expressions of

statements. and to on share earnings these obligation forward-looking Readers forward-looking improved place The future per statements. update undertakes revenues company of no to any revise to statements. estimates related undue and publicly statements performance forward-looking any reliance cautioned are are not Additionally, or

that company's section Finally, a today's will to Investors the replay you be of a earnings us the on for for via for of today call. would A-Mark's call everyone remind Thank website. joining like recording link available I

disconnect. now may You

A-Mark Precious Metals (AMRK) 9 May 232023 Q3 Earnings call transcript