AMRK - Earnings call transcript Q4 2024 | A-Mark Precious Metals, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to A-Mark Precious Metals Conference Call for the fiscal fourth quarter and full year ended June 30, 2024. My name is John, and I will be your operator this afternoon.

Before this call, A-Mark issued its preliminary results for the fiscal fourth quarter and full year 2024 and 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 to the Investor Relations section at the top of the home page. The company's results are preliminary because the company has not yet concluded its review of the valuation and related purchase accounting surrounding the increase in its investment in Silver Gold Bull Inc. an of management with the transaction. include of is the presented amount the remeasurement results estimate believes which reasonable SGB The gain associated remeasurement adjustment to company $X million. once management The not exceed be review, does such its but the any expect may gain finalizes adjusted

a Such it to the a is noncash operating be relates solely occurs, interest reflected income for the company's controlling gain adjustment and The corresponding has results. not of on remeasurement accounting SGB, if the acquisition treatment and statement taxes company's balance related would no in sheet in items. item, the to impact is

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

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

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

Gregory Roberts

and call everyone. joining to good today. John, Thank for you you, Thank afternoon our

results continued conditions. release earnings our As in even market slower platform results we during fully reported our to strength of integrated fiscal demonstrate year our today, adaptability XXXX the and generate profitable

last fiscal diluted still per less from and headwinds $X.XX we favorable macroeconomic compared environment year, facing share. with softened $XX.X Despite net of the million and reported EPS income of demand

Bull, $X.XX. Gold gain estimated incremental preliminary in our our Silver EPS an million diluted reimbursement was from Excluding $XX.X investment

also $XX.X EBITDA. in We generated million non-GAAP

with strategic ended million and X the customers, gain remeasurement investments. benefits direct-to-consumer over of the fiscal reflecting the year our Excluding

quarter. of from improved last per a previous compared $X.XX and results share, EPS diluted XX% increase quarter with with the $X.XX excluding in gain gross profit remeasurement fourth quarter Our the

Gold expansion asset broadening both international Looking fiscal numerous footprint strategic our beyond presence. our including by our with gold.com, our digital year metals portfolio our into line our continue increased we of LPM Canada. acquisition strategy, JMB's our acquisition through precious highlighted of Asia in accomplishments, In our and the Bull Silver numbers, strengthening enhance growth to through by was investment

Turning our structure. capital to

we payable million securitization and notes from facility, year, repaid credit the our in During trading our $XXX increased asset-backed our amended resulting liquidity.

also repurchased common We million of $XX.X stock. our

of to like CFO, the I'd Thor A-Mark's Kathleen a over our provide President Then questions. metrics. Afterwards, results. our hand growth our will operating will further will Gjerdrum, and Now provide overview a and update Simpson-Taylor, Kathleen? key to our call more I detailed take on who preliminary financial discuss strategy business

Kathleen Simpson-Taylor

good Thank afternoon, you, everyone. Greg, and

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

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

revenues consolidated with The XXXX, the fourth direct-to-consumer XX% the the revenue revenue XXXX XX% of of and fiscal prior consolidated fourth XX% contributed XXXX, in quarter. the fiscal quarter fourth JMB's represented for XX% and DTC quarter for year the compared respectively. or fiscal segment of of

fiscal to year, fiscal year. from X% billion full the increased the in $X.X billion revenues $X.XX For our prior

sold, ended the and ended the in XX, the of fiscal segment XXXX, contributed company's June JMB's decrease gold higher average of prices Excluding silver XX%, represented which an XX% revenue increase the respectively. of due for ounces billion fiscal decreased was consolidated of and our consolidated silver. year revenue The partially and or in $X.X respectively. gold by of $X.X offset forward XXXX, a DTC sales, and billion revenues XX% and to and XXXX XXXX, XX% years selling XX% revenue

or the million Gross profit was XXXX in compared XX% due from of in and gross of segments. period. profits sales last consolidated profit The profit represented for by year. of profit gross Gross of revenue segment $XX the of services QX Gross XX% revenue in profit in and of to XX% wholesale from X.X% XX% XX% to gross of ago DTC to to year. the the of $XX.X DTC QX decrease QX of fiscal by compared profit year represented last in or contributed lower JMB XXXX consolidated fiscal gross X.XX% ancillary same million QX contributed in QX earned XXXX decreased both the

from profit of earned $XXX.X revenue, from The the For profit million in respectively. to DTC sales in $XXX.X both XXXX, services of lower X.XX% The full decrease XXXX Gross prior the decreased XX% year XX% XXXX profit X.XX% contributed ancillary and contributed fiscal or to profits consolidated the segment gross profit segments. by wholesale and year. profit DTC and during the represented gross was XX% or fiscal gross and revenue the and fiscal of year gross respectively. XXXX, and million due of gross XX% XX% consolidated in year, fiscal JMB

million consulting QX to for $X.X advertising costs overall The and of including a in $XX.X expense, costs from incurred SG&A million also decrease million fiscal million, performance-based year. $XX.X and decrease increase by decreased of decrease primarily $X.X include million increase and of expenses was in in X% million. last in LPM the fees quarter increase $X.X compensation expenses million partially QX for accruals of expenses in SGB. an costs of professional $X.X due to SG&A and XXXX of million information insurance in $X.X an of and by $X.X offset technology a

$XX.X year, advertising $X.X million, performance-based in in million, fiscal year. increase in costs to of expenses insurance decrease million. in increase million to in compensation decrease $X.X million a of prior professional SG&A partially fiscal $X.X $X.X and and million, of by The accruals offset in costs an expense, information of an a from increased technology fees costs primarily a decrease was X% due million $XX.X the consulting increase full the $X.X For including of

Fiscal expenses and incurred million XXXX $X.X SG&A year of LPM by include expenses SGB.

acquisitions from Depreciation last million XXXX intangible $X.X depreciation SGB, QX to amortization primarily decrease million related amortization million interest increase of for in $X.X our million QX acquired and LPM and asset year. related a of expense $X.X these to plant $X.X offset partially in was in million through The X% a to intangible and were due to assets increase expense a expense. our controlling amortization equipment, of $X.X property, in JMB's expense fiscal increased and by

increase $X.X JMB's million expense. intangible fiscal The to year. partially This last offset million asset decrease depreciation For and expense by increase from year, decrease full in million controlling expense property, related was in decreased acquired in depreciation in SGB. million related $X.X in our a $XX.X which amortization to interest to primarily $X.X through and fiscal resulted intangible due $XX.X a acquisition equipment assets X% investment, the LPM amortization a a and amortization expense of was and increased plant to our million

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

in The and of million income income increased to Secured increase in million year, increase earned an For primarily increase finance income million. million in the of $XX.X other due $XX.X Lending XX% fiscal fiscal was the $X.X interest by to full segment product interest year. our an from $X.X prior

The $X.X million last $X.X of expense year. our in interest in as million rates $X.X $X.X due trading Interest increase decrease to to partially in driven XXXX increase financing primarily of with increase this issuance of was associated offset by from XXXX. well repayment increased fiscal million QX credit amortization to million AMCS An million by product QX Notes, and was due for increase arrangements, an debt as of X% increased costs facility $X.X related interest to December related expense their to in including borrowings. an the of a

million product interest of loan driven was of increase financing rates a by to Notes, arrangements. AMCF with due $X.X million the increase to fiscal as including fiscal in credit related was a full to and $X.X to increased increased an servicing year. the increase of primarily borrowings, as our their This well For repayment decrease $XX.X partially an XX% to million amortization XXXX due $X million December expense in decrease costs issuance last The offset in by year, an facility $XX.X also related million million trading increase from associated debt interest of $X.X fees.

method $X.X XX% decreased XXXX QX $X.X year. in from equity from last Earnings million QX million fiscal in investments of to

periods method both million $X method last the decrease equity of decreased million full in year, The from earnings due to For equity fiscal our investments fiscal from $XX.X to decreased year. earnings XX% investees. was

to in per to XXXX diluted of of the for QX and of controlling preliminary the company estimated of year. $X.XX attributable of fiscal remeasurement share. quarter to change. attributable $X.XX compares the quarter a for net income $XX.X per or the or included This fiscal with $XX.X an SGB. income This fourth XXXX is diluted connection million income company to $XX.X the last million interest Net in subject gain acquisition in share fourth million Net totaled

per remeasurement $X.XX. Excluding was the estimated preliminary impact of gain, share earnings diluted the

an attributable to year. share $X.XX preliminary in totaled year, of to company connection year and the with the remeasurement to diluted for $XXX.X gain investment, last This interest or the the included to the per fiscal For SGB. attributable estimated company is fiscal increased in full company which to XXXX $X.XX resulting net or in million a attributable diluted controlling income Net compares income income $XX.X fiscal $XX.X subject change. share net million million per

earnings fiscal estimated impact for was preliminary the gain, diluted Excluding the share $X.XX. remeasurement of year XXXX per

income which or the a provision and amortization, for income income totaled gains contingent financial remeasurement adjustments, XX% Adjusted taxes, QX compared in decrease million, income XXXX fair fiscal losses performance to net decrease of lower provision before for acquisition measure, to $XX.X same taxes. a was million excludes ago year value quarter. due before The non-GAAP costs, for consideration net principally $XX.X depreciation,

million, million, decrease EBITDA, liquidity Adjusted taxes $XX.X to provision lower totaled of fiscal for XX% measure expense provision before net in and million, fiscal lower year. XX% lower income net XXXX to taxes. The a $XX.X due million higher income of $XXX $X a income principally before of The was income from due the year for decrease decrease income to principally was income full in decrease XXXX. for non-GAAP $XX.X prior a $XX.X income net for million QX QX million tax million. fiscal interest the compared totaled $XX.X

estimated million. remeasurement XXXX, XX, Excluding June preliminary ended months the $XX.X X for gain, was the impact the of preliminary EBITDA

The year. interest EBITDA was XX% decrease $XX decrease of fiscal $XXX.X income a to for the higher income and net of million, to million full fiscal lower $XXX of income $X million million, $X.X expense year million, million. tax totaled interest principally due higher expense compared $XX.X last of lower

estimated the XX, of impact fiscal preliminary remeasurement the XXXX, EBITDA gain, June Excluding million. was $XX.X ended for preliminary year the

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

Our $XXX.X XXXX. nonrestricted the million million inventories year at from $XX.X end totaled million, $XXX.X down of fiscal

interest excluding is of at The was intangible to due controlling fiscal and worth, noncontrolling of share end our in million, reduction connection of the the with at higher combined paid, fiscal net $XXX.X increased tangible dividends Our and with LPM million $XXX.X goodwill and of SGB. year investments, the repurchase down in resulting acquisition end the prior the from interest activity year. a assets

has it the to dividend cash and quarterly October program continued is company's of maintain share. be per cash quarterly XXXX. in regular most paid that dividend next The Directors the of July was common quarterly will Board dividend paid expected recent A-Mark's $X.XX in

my financial summary. That completes

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

Thor Gjerdrum

Kathleen. Thank you,

fiscal X.X% of key our we the and XX% and from for quarter. fiscal last prior quarter full year Looking year which from operating of metrics up sold gold fourth the in QX XXX,XXX ounces XXXX, XXXX, at QX down is

X% was fiscal silver which in XX% year. XXXX, For quarter. down ounces XX% X.X of QX which the ounces last QX year last We sold we down sold of from million year, from million gold, fiscal full was XX.X down and fiscal from last of

down sold the fiscal year. year, full last was of million fiscal from For which silver, we ounces XX% XXX.X

made the fiscal in new a as The DTC customers have for up which account and the XXXX, respectively. the in or customer the acquired of were interest list for was a number or QX was acquisition year of ended June XX, and QX customers during XXX% the time set quarter XX% that number the registered of and period, defined of XXXX, the last up and customers which to XXX% of approximately is controlling purchase from of new from segment, XXX,XXX X-month new a last increased in first XXXX, SGB periods the attributable XX% BullionMax

number full XXX,XXX from the up the prior year, DTC customers of the new to and in of XX% were and XXX,XXX, fiscal interest in was XX% fiscal of segment For the were the XXXX acquired XXX% acquisition to fiscal the year. new new the the Approximately a in in attributable is list of which in controlling of customers customers customers SGB, year year fiscal BGASC the XXXX attributable customer BullionMax. of new

to year-over-year customer million, due in acquisition growth in end was fourth JMB segment in of a SGB. controlling as DTC The number as organic which the was increase year. from The of a customers at well of the base increase customers our total total approximately the XX% interest was the X.X of quarter prior the

which The was fiscal average XXXX delivered program DTC value order which excluding product from up is prior orders, accumulation $X,XXX XX% QX average represents segment from quarter. value, and down during the segment of orders, to fiscal XX% customers XXXX the QX dollar the DTC

our fiscal from $X,XXX, average year, value was For year X% which XXXX. down the order DTC full is fiscal

the For and in from QX decrease our was turn X.X, XX% which inventory year was quarter, last X.X% consistent of quarter. ratio last with a fourth

our full a ratio from the X.X%, fiscal last XX.X% XX% was inventory decrease For fiscal turnover year, year.

June XX, loans and of a June totaled a XX, XX, XXXX. of secured of XXXX, XXX decrease decrease March number the from from of XX% XX% Finally, as XXXX,

XX, end Our decrease of $XXX.X a the year June secured at XXXX. XXXX, receivable X% fiscal loans million, March and a XX, balance increase was from XX% from

I now my Greg? for it over will Greg concludes remarks. That closing turn prepared to remarks.

Gregory Roberts

Kathleen. you, Thank and Thor

gold fiscal fiscal Looking first compression and of demand seen ahead XXXX, quarter. in elevated have we during prices premium to softened continued our

reacted During VIX we weeks increased the XX. to few in the August, customers first spike of volatility the as above experienced the marketing Index

Specifically, saw elevated the X, we the continued for VIX of XX week August and week. above that

we better this, week. reacted in and that than activity customers had to expected Our a increase we

the We the continue to and macroeconomic of environment rates interest elections. impact upcoming monitor the and

reach expand market to We to for opportunities are further value evaluating our shareholders. create our

automation logistics volume AMGL in our advancing which increased currently lower support costs. are initiatives Vegas, operational our at We Las and will facility our

Asia, a proven in shareholders sustain including developing remain trading to broaden our plans for generate optimistic to allow We also reach We are in profitability will and us our model over term. hub value establishing business Singapore. that our the long

concludes for John, open line prepared we remarks. This now my the questions. can

Operator

[Operator Instructions] question from Forte Thomas comes with Maxim Group. The first

Thomas Forte

generating Greg, So When the at very did it's to year, when it job last about of pretty straight the the much performance I right. fiscal like your and for a feels you profits. look good chart in up gold, I think

challenges, and So to a in for you generate profit? without be despite a ton generally thinking am can about in gold, the that right of challenging have fiscal you, speaking, were you when I one-way 'XX, thinking that, able trade

Gregory Roberts

we messaged small past fairly hit VIX for at think June, through which, on look the at at earlier, I the the with which deal you Yes. is headwinds. of tailwinds. look great we just mean usually and I was year it was us the Index, a and the environment in volatility, end mean certainly million range a head. what mentioned January had almost if in the $XX what I haven't I an EBITDA were nail if from gives I I of mean low, today, just we you as mean have it you

good. I was in environment really the performance So think that

tremendous job. what It future. environment improved and much that and to improve don't in $X.XX, the the significantly be that from was to our think to I our to that company $X.XX with over to I first week in customer and everybody the able August where outperform QX, would life think was a different QX And think I macro refreshing, and believe base bodes for I come the as get the performance company happen. did see thought well of I see really business the we said,

The be up more that. about buyers a I And have conservative. it right and gold, and price to causes I've we the bit think as of before, to weathered stagnates demand, on the talked sellers

need good customers of product, we they buy we've the and done place believe I the think buybacks. our our for liquidity, I larger liquidity have managing and a to count job managing of very providers our A-Mark. on maintain our one when of they market inventory, in back continued as

So I relationship customers. with our think our we've strengthened

started customers about significantly segment, our believe and talking focused that new successful. resources that hugely -- where I assets our believe have Certainly, significant our we following DTC been QX, has we initiatives in on

numbers, time, As DTC million you can for the we're the see over from in the customers network. first X

a we've in and lot So of well I environment. But going of environment also to forward. the investing outperformed I I for there advantage areas believe considering prepared future, we're is believe whatever take think we're the

Thomas Forte

I'll just and queue. get Great. one And then in the back then follow-up

in kind be So historically, opportunities. M&A just news more about the you this good there Can talk high a level? your current at M&A environment, thoughts is, may attractive of on

Gregory Roberts

Yes.

it both of And acting is messaged have us. of vetting have are and market a think to how in love have number I think that, busier conditions. and had kinds in conversations develop I what large I opportunities of now and we for the we right opportunities, the past reviewing have ever funnel think and expect we in small. that like these I strategy we part than where different we our we

ability the us. and what's optimistic So for really to things best looking I decide I'm the love love I at. some about we're of that. very that vet

my look asset as and the I've the those the buybacks, to whichever inventory, And M&A, acquisitions at rises enough put stock at, return have we said of items is to repayment to ability of X that our have top of the which M&A goal shareholders. X to to before, best debt. advantage of and always liquidity allocation X We take continue and dividends for

and accomplishments our well our been liquidity sources think been X liquidity on the accomplishment I a has with to relates our for working our have group increased as X great it Thor Kathleen as and what A-Mark. last bank as to months

say, X So very advantage now of positioned our well take sheet of our are I right I balance believe available whichever we as to with spokes, to us. become

Operator

The Capital with from next comes ROTH Partners. Instructions] Andrew question Scutt [Operator

Andrew Scutt

a I of pickup if late, a minutes environment, nice we just apologize you so would this, hopped of of I great couple sequentially. covered gross there, there. kind kind be an improved spread but additional on whether Can mix, that's just in you saw the margin drivers through talk in details

Gregory Roberts

mean I Yes. most this quarter over an the of in lines we our of business increase previous versus saw quarter.

in So believe performed QX. did believe I than I QX were although better a similar, we environments the bit in we

So and that's numbers. reflected in the

we to well and our opportunity that bought as new DTC in to said and as hadn't to on customers, take our think marketing up really invest I as year. the to tried in pounded the I an very in before this to add side, really customers hard last the wake call, old initiative

very So well. think, that, I went

the some I think top did wholesale just think than QX. we side, we did on that better in the And QX larger line. in have -- bit we I a we performed drove transactions

Andrew Scutt

kind talk to of AMGL? enhancements on briefly the Great. some Vegas you Can you about just what the touched you're you're doing -- also in facility And making Vegas. then at

Gregory Roberts

Yes.

We available. to space have have become us to the been enough next door fortunate

for including number it modernization Kardex that equipment, process technology and out packaging used of of a couple by and new building with of pick The name a are the are the it manufacturing, goes the pack automated operations in a of SpaceX and and large others. We it's by allows that some process.

has we're a So X-month This well way. been project. along the about

We in are now the phase. build-out

allow is packages we great and and We greatly for to next technology increase machinery of as time volumes many markets allow higher to shipments. are this that well us as we're new machines, use on going the that installing our will pressed can physical our how capacity ship some

Andrew Scutt

for one me, I if And Great. the may. last

volume. how inventory have Speaking just for election up? before positioning increased of Can metals potential of about market of talk you the precious the times yourself we with in you're possible kind volatility coming

Gregory Roberts

selected seen holding. And items inventory Yes. premiums in some that been increase have we some have we and

that So a we've with holding. we're happy that. There's been others few

just comfortable week increased We very in a well But haven't week the multiples, I of saw first we're over that that the we that seen inventory August. of believe yet. positioned the event we're get we I'm premiums holding. than in week week with more

advantage to very think that. take we're of I positioned well

have before. and Towne new quickly. X SMI shift think inventory I product turning also new at Mint that talked customers faster. think we products been a well at very the this our We we're bit with production very being we've business we've side we've Towne, nimble, I been X And days. developed to particularly at a nimble at run wholesale both some on little very and about Silver that Silver managed in We've able or can shift

Brent that, very and and being lower the wholesale customer and quickly job asks been a shift a to quickly. DTC which us they done were able and don't. a very we And trading the in needs have production products for have aren't we of may very ago, be the are to when premiums year just as need that to provide premiums although they've product, to Jamie marketplace to where able allows product others or nimble X answer or great

we're pleased at at the managing moment. very So very, our we're inventory how

Operator

with Up Northland next, Gibas we Securities. have Greg

Gregory Gibas

Wanted follow-up of of topics. macro kind on to related kind

performance kind that's to impacting August. volatility speaking? VIX kind and thoughts say get earlier, side drivers the catalysts kind in on noted supply strength indicator can And you equation? anything you or spreads, of would to that the of to on macroeconomic generally lead related, pretty of be Would your improving of it of mostly Greg, or a Just relating good the

Gregory Roberts

Yes.

is are about few event, be anything. years always that economic this it by markets I it, our a say driven and think over generally, can the and we macro last talk we

our it's X consistent. had have others, have than some base than effect not always differently Some may may bigger others. today. are affect ago same not What years customer And the an effect

I volatility we silver will generally gold to downside of and well about in the talked us have before affect volatility the in as That positively. spot think what is price as equities.

the I a going to continue polarization at in in everybody lot in happen to as Israel, we what's is of Russia happen in and what's going uncertainty think country, see what moment, that which sees the lot of and Ukraine. election, to the to a happen the what's going to

I the of the the just these we bit. and in in Monday actually not of outsized the that drop things think I week Monday would I of I is had week are response been of combined first -- tightening an have to we big for also fairly say believe but the think where August, and a And that a saw for across than to we saw expected. breaks, little August, spike -- a going with gold first string quick that that what will And equities, downside of all predict DTC, so wholesale silver. and on and August pretty tighter I it's future, the saw than more we I'm string it

was didn't back Monday, deal and recovery to probably week what that like we we think very where of there Now big before. was people X and were we saw of it I on that before. that, a seem activity encouraging significant or most days the But the week later, what a I multiples that is event us for were a X find

So consistent that always about. we've is what with talked

quickly. you reaction. We was knee-jerk a more saw August immediate I I elevated week, bit after little these to even think about that that I says think July. was take positioned what -- looking of a lot where very is feel can to still -- August we're it like And though And advantage things.

is I say, -- So -- And it some August, certainly optimistic are little would we I in week of upside. markets we're has see But -- happening our where bit more saw there the to our extending carry XX mean, think a ago. business past has where months and levels the and not reacting to favorably behavior, seeing some events little we definitely, on. reacting I been first

seen had Now we've we really an as effect premiums, haven't very has that said before, increased enough which, still demand important. is on

still, premiums that somewhat to lot in of worked as to my very lot to of with So business take depressed we're not our much it's competitors going as with. premiums in it's a well inventory, But not has its going much. through take excess mind, performing dealing we're way well the and our A of increase. see inventory demand a spike

Gregory Gibas

bit Sure. That makes that think business is, trends I a operational there's have it's impacted sense, how cycle, years? And history. impacted the kind and that's in how of along sure, variability. common of just we sure as lines, and guess those But it's of you I quite wanted elections, to given very get election kind helpful. And a the about sense maybe historical of I'm

Gregory Roberts

and have X Yes. I the past. through historical and that what has before. I -- XXXX intuition look mean knowledge this seen say great that will in and well January just we as on at history starting being have we 'XX it in we been of the the XXXX, and different as than data we cycle have

cycle a kind quite zone. Certainly, metal I in this the first think believe And think lot in the that the has is win there I was end into buyers perceived, election whether of cycle, you comfort real there -- a was election a August, people shift the was July I a that, a of perception months it and the to take feeling there lulled X Trump of think of going of precious was if of been the that going how election. or now. first for that 'XX

guess today relate you there uncertainty up the looks been some the many of it attribute entirely, of I of venture say hasn't that the we will year. But want in till can is how or not to of to see first can in days think that lined the sit And election, election to I it the but XX, uncertainty the saw a cycle. I maybe much the whether effect. first great seen at performance like what exactly what has like there, that of X and deal don't we've where we some August, past. is we started in in can cycle months you a however you this relate, not there more certainly, the with our end July and to it than

So we'll see how it plays out.

and the think -- positioned we're outcome, to good the so interest for relates we're next happens months, perform for equities markets feeling just and whatever at. we're any rates where positioned just I well very outcome over it like X about how think we'll really as I

Operator

Next Jacobs Management. question from Sy Asset comes Instructions] with Jacobs [Operator

Seymour Jacobs

couple had related questions a M&A. to for you, both I of

we go how conditions? of kind pipeline, that in it you home similarly just a Hong a market. out to back about related LPM what's Is your owning sort quarter as quick activity it playing in depressed full into that Or Before market? a and review How of margin on relative is of comment you and of modeled it's then Asian you're now market your do a to comments just can those just transactions? it? with different your Kong And different sort spread

Gregory Roberts

LPM purchased, have X we're A-Mark that Yes. integrated U.S. assets with well months that say very, very pleased we're the that as the into very personnel about that with would say happy I would very to it. we with I relates now it the we're acquisition,

ours side Kathleen had have through their and team her with as it finance think the side. the integrating the worked that I expected challenges finance relates on we to on business

and a I has and very managing great that accomplishment, it's well. made up great we're and running and think she's nearly -- there

business the that experiencing of A Asia, creating of selling what wholesale their large I part business them and the of business world, the our throughout think U.S. similar is and to in their including out sourcing is nature here. products products is

very we modeled a demand standpoint, what results that we U.S. say the P&L definitely hope optimistic we've a the about behind So them. From today have and model, but we where that we're in Europe seen going on expected. in the the we're drop-offs straight little would that to be see would out, I to affected

opportunity business managing more facility. before, in is opportunity that this. we're helping in great move we're from expertise I we're and integrate about. very time and that team the our Charlie trading believe wholesale as to in We've his the process it us develop assets been we're facility for -- that talked Kong ahead, and bit we've wholesale talent speed to a A-Mark, enthusiastic that. I as to very a identified into and optimistic. and that And Asian from in region relates involved it our about A-Mark we're full this as Hong Singapore use capture of zone, to Thor about well have Singapore wholesale LPM think the -- the trading -- the through for hub expand market the some

different in the ways, So and it's that we rolling. believe believe with benefit is very once -- a of going happy to it's still lot definitely we're A-Mark gets we it to acquisition, going --

Seymour Jacobs

Great.

if two more part really pipeline active large of ever active, you than and funnel or So small. opportunities, is referenced not

about, new up I would already then think And stakes crossing would popping know, Would they -- include you exist two that companies, targets? that minority Asia those you probability or kind don't the actually If they think of in, of the have or that America, North be Europe. are partially the have line. owned or finish you could majority highest

there's lastly, and then like large small. you And the ones, said large

A-Mark acquisition meant its to approach JMB ever? be largest With to the largest likely done drama, what as in

Gregory Roberts

Well, opportunity and -- extremely fully wholesale go I a that was well with minority was it with us, strict JMB have to I tremendously. for investment at a -- unique are what JMB we business to DTC business, And don't which versed JMB's transformational owned at the to were of will they do. a A-Mark a able quickly answer that. people ways, from in grow been for help very lot

topping the As think cards. off, that's it relates to not I probably in

new a business. that I transaction -- think did LPM was we the

from the again, we had and the over little how increased that the ownership Silver negotiated bit beginning it consolidation time. and think I unique of a Gold to was Bull structure that

board of anything funnel, So then the talking domestically. what opposed I funnel. And still I'm a deal of I it's was say important, new call a that right for as is would little a I new there's like it's think to of the or -- on say we about and opportunity would Bullion. the JM in in now don't when bit opportunities exclusively a deals is new transformational timing us what the both it probably would deals. I But with and have size did I retail wholesale

be do a can't focus that but acquisition And and also we can of liquidity accommodate ship can higher financing inventory, can how of market we to I'd of be to more packages, to our the then I than that all have JMB's minting area business, thought or business retail previous more has volume benefit up for in our think that sure part be can management's expertise. And this lows. we're that other hot doing need one our to The that, parts more which previous goals companies to we're to can may business higher that there's more accommodate or think think our that There so that both logistics distribution, have from deals businesses. market. opportunities of so in particular make that so I U.S. parts goes highs an there. our rise in business. you believe highest And just have market, our are towards all beneficial looking can there are our is our than need hotter we goal our some customers. our to that be to I say a lows I higher so level we and outside on all much

we're mind And be I've price at think to we're to before, will I said looking say But I right. seller those we're opportunities. match as at, come and buyer have when those I Like right at things the up looking of comfortable the into areas has and believe time and the going most in look going XX that all as you slower can what months fiscal I year, do what's trailing we performance, months' call XX trailing a targets at our pretty similar And have a the from on in you'll have are to so now any growing progress the our performance. we're to areas. think that in all would we marketplace. business forward, good see

still competition situation view and it we -- thing we've does with and great are it the shareholders. to same now the put A-Mark's have right think -- a today. and benefit realistic a should do strong a looking such sheet, that to out that an balance I such be. not that situation capital that ability great and to a it So think acquisition on do and valuation actually And more built are plays asset And of I what does amount unique people we we do we There's there we tremendous have are. liquidity

like feels setting for it's it quite well us. So up

Operator

to Roberts queue no concludes his over turn for this have now to I'd session. at remarks. our We further questions in This back closing like Mr. question-and-answer call time. the

Gregory Roberts

today. talking few shareholders. John. you to great you, with ago, coming group. apprised world. our as you dedication can't I thank we our Thanks Again, A-Mark team management keep guys. minutes thank you been say enough can't thank said and A-Mark's to to A-Mark in for our Thank It's and of on to you support. I like all posted here Great. continued Great ride what's and for our joining a the I'd next again, just commitment their also I your it fantastic for love to call wait a to want and and usual, I and success, employees

you thank much. you very again. Thank So

Operator

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

that profitability made XXXX forward-looking future events International of expansion, to and of plans, Litigation dividends. These of expectations the timing statements with Private the operational Act there the call, regarding expectations, the today's Securities the Act amount statements Reform A-Mark's or include Statements future relate like any future within regarding forward-looking future events. are objectives, During XXXX. statements performance, to respect were meaning Securities Exchange enhancements growth. and of and and

filings the as environment the market of pressure on publicly potential the precious companies aggregate, reliance contributed volatility to forward-looking in or recently their could implied risks changes in particularly to the individually in businesses; the political obligation and results growth actual for undue address the circumstances to Listeners acquired in successfully revise Mint, at and integrate inability differ, which investee including uncertainties commodity negative services, global could Factors risks markets, in cause the to and preferences Towne inability changes and place in the impede not the could statements. to in of or our results higher-margin potential model particularly anticipated; available business risk on posed financial, to depress business, those our markets actual these expand suitable customer company's precious current pricing; of any described historically demand and these public international or factors expressed business, metals Securities to in favorably doing dividends, cause or that the materially the the the and bases, for company's differ the Future to investment the following inflationary has Commission. The risk failure from the the which strategic execute risks the but business other generally, in opportunities, to factors and execute certain greater-than-anticipated consumer problems climate, of general chains, company's the governmental changes company's and respond that are the also current company statements. demand or identify Exchange failure company periods, including Silver political the of effects that to might supply failure may has in Asia, or in products of preferences and update have economic, company, cautioned to adverse with government the undertakes or acquisition maintain increased regulations strategy forward-looking to the inability the statements. no growth capacity recent strategy; to incurred the metals uncertainties effects costs competition for national

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

You may now disconnect.

A-Mark Precious Metals (AMRK) 29 Aug 242024 Q4 Earnings call transcript