AMRK - Earnings call transcript Q1 2025 | A-Mark Precious Metals, Inc.

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Operator

Good afternoon and welcome to A-Mark Precious Metals conference call for the fiscal first quarter ended September 30, 2024. My name is Matthew, and I'll be your operator this afternoon.

Before this call, A-Mark issued its results for the fiscal first quarter 2025 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 for today's call are A-Mark's CEO, Greg Roberts; President, Thor Gjerdrum; and CFO, Kathleen Simpson-Taylor.

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

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

Gregory Roberts

good and everyone. afternoon, Thank you, Matthew,

to deliver Our less our and platform we EBITDA. first share elevated generated diluted quarter fully market and slower demand, continued reflect favorable prices $X.XX levels softened non-GAAP including a results of strength profitable almost conditions. results the environment, precious facing $XX during metal per in delivered of even integrated Despite macroeconomic million

our facility, to credit quarter, During future extending with liquidity amended the XXXX, September needs. for we maturity capital the our us providing its trading

the which anticipate automation We to and be also and operational savings. increase and expansion advanced produce in logistics few facility capacity our efficiencies Global long-term expected are measures Logistics will next cost months. initiatives, A-Mark completed these We

to continued also reach in the establishing our progress and substantial and DTC have We presence a trading Singapore region. surrounding into broadening towards office make

future of including base. We Mint believe Towne acquired as announced, as and customer our our further capability continue success previously for business. expanding we and customer Finally, expand Silver enhancing these its and list, position all Regency the its recently to equipment assets manufacturing, minting our A-Mark grow minting initiatives

our discuss operating of our will over President, Now Then I overview a CFO, provide turn more to Kathleen our performance. will metrics. detailed our Gjerdrum, Thor who call the key will financial Simpson-Taylor,

further growth strategy. will insights and business into our provide I Finally,

Kathleen?

Kathleen Simpson-Taylor

afternoon, good and everyone. Greg, you, Thank

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

XXXX and XXXX, decrease $XXX.X decrease partially QX Gross silver which decreased X.XX% or revenue QX prices revenue segment in or Revenue or revenues of QX of a XX% of higher forward and by in offset QX compared fiscal Excluding of million to QX for the contributed $XX.X gold XX% gross silver, in offset services $XX.X X.X% due of in XX% profits XX% The fiscal and direct-to-consumer an profit the the by was year. our of selling consolidated ancillary revenues QX contributed X.X%, earned $XX.X partially revenue profit DTC gross year. XX% wholesale increased profits gross by segment, sold. The earned increase and sales, segment. lower in of increase last of to respectively. the from consolidated gold fiscal XXXX an for to and represented due sales million was last million average to of ounces from XXXX by in fiscal million JMB of

of last segment the QX GMV Gross fiscal gross XX% of to year in represented consolidated compared year. by XX% XX% XXXX consolidated in contributed to profit ago by QX gross in XX% profit same compared Gross contributed profit the QX period. the XXXX in profit direct-to-consumer of represented fiscal the

results. of in higher prior in SG&A expense, included of $X.X insurance $X.X compensation LPM increased increase in were last performance-based expenses professional $XX.X subsidiaries, million. from increase XX, XXXX months information X increase QX year and The of million million, which and an of SGB, expenses for including the year. recently in expenses an include costs to SG&A million and an ended fiscal accruals XXXX, was consulting of our an by incurred costs increase consolidated technology in September $X.X in due $X.X million $X.X not QX QX $X.X million to our $XX.X for costs primarily XX% increase million, of million, fees of advertising

related QX XXXX an $X.X of million fiscal for was in million million increase QX from interest to $X.X increase last a to million. in amortization amortization through LPM and increased SGB. expense intangible primarily acquired in year. partially assets controlling due in of Depreciation our $X.X XX% asset by decrease offset The expense was of JMB This intangible acquisition acquisition of to amortization and of our $X.X a

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

decreased fiscal investees. in first The earnings diluted compares last million or quarter This for of $X.XX decreased million ago totaled $X.XX was diluted attributable XXXX to QX Earnings company year. in QX per fiscal to the million to equity $X share. of of $XX.X from net million income the income of in decrease to per company $X.X Net share the quarter. XX% to or $X.X due equity attributable year the method our same investments from XXXX method

compared the to for last decrease million excludes XX% $XX.X fair a EBITDA, fiscal income fiscal depreciation, quarter. of provision million, compared a non-GAAP QX financial liquidity $XX.X million, in costs ago contingent net amortization, same for which totaled of to for measure, Adjusted $XX.X taxes, XXXX before totaled QX QX million $XX.X a adjustments income XX% consideration decrease acquisition year a non-GAAP and value XXXX in year. measure

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

interest at Our worth, was the up at from XXXX. net million, excluding $XXX tangible the million of $XXX.X quarter, June end XX, noncontrolling

a we September Greg now conjunction liquidity and an mentioned, in committed providing extension the lines portfolio the forward. in the tools company lines facilities capital credit XXXX, with business. provides through million going which our stable of repo access $XXX.X facility, primary for of leased This company executed provides facility As to with diversified our with long-term

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

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

Thor Gjerdrum

Thank you, Kathleen.

fiscal We XX% Looking fiscal of of from QX at our key XXX,XXX gold quarter first metrics quarter. in XXXX. sold which down operating ounces and QX XX% of for the from was prior XXXX, the down year last

million, XX.X set of defined DTC silver was of as purchase in XX% was total from from XX% new SGB. customers last in QX during interest controlling as Approximately up million XXXX, acquisition and a The X.X a from first quarter. down up or at to number in which from end in last of for XX% that fiscal in last down was a well of increase segment, $XX,XXX new down in year. attributable XXXX, customers the organic as which period of the time last GMV which of ounces approximately We QX acquisition number year were the of year quarter made in controlling segment the The year-over-year to which of was the XX% the the last interest the XX% base from prior a first XX% new the customers increase is customers year. fiscal due sold the quarter customers our QX and number SGB. from of the customer QX have of account registered a total or of a DTC was growth is The

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

X% prior quarter. the For quarter, turnover was which an ratio was with in X.X, inventory X.X from QX comparable the decrease our fiscal first and year last of

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

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

Gregory Roberts

precious integrated market continues fully its even slower to conditions. profitable deliver Thor, Thank demonstrate Kathleen. A-Mark's you, and results platform to metals during ability

shift, ahead, demand our optimistic the we to shareholders remain macro that the our term. cautiously leading value to opportunities begin We Looking reach deliver remain pursuing that to retail committed will over we expand segments. and increased across wholesale market our to and headwinds long both face

Operator?

Operator

from is [Operator Instructions] Group. coming Thomas Forte Your first Maxim question from

Thomas Forte

back X ability Congrats and to get a an people in in then challenging the to quarter. on going to I'm opportunity. queue your other again give questions ask once generate profits

you there's have have is the seems had pull Greg, an -- can we essentially now you you to how in think stimulate when I kind of pretty levers it X So challenging trades gold the it's equities. first in should like because and about question demand one-way environment,

that lot in environment. So do do you think -- I a an but such

additional [indiscernible] leverage I'd some like to facing when So can you details that. the hear on hit

Gregory Roberts

to to allowed able say of do October, through when we demand. we we you customer our the in We say, where our we're when end were that as able to that or us what increased marketing start can't to marketing September premiums. order in seeing try which accounts, an believe did But bit we levers, I sales. what is in able market We increase capitalize our can We demand. to much I to very months control a -- how the really or when Yes. to bring we've expenses. is going -- in investment average were I use new going weeks, markets and get once we spend think they're mean had Throughout exceptional quarter, We weeks. We that have or increase great future. are August. be. value kind customers, can to we X well their hit some pull positive towards was had in profitability, multiple sustain And little had of new we this do advantage in is to take able a again we X slower, movement to the were new we been felt trying What of saw haven't weeks we miss probably particularly really positioned it. our very would the to and will this customers done. see

So but some the premiums positive. and the to see of some them, all did some of of expansion the we of some products, not premium them,

good So a feel activity of there. help good. a coming then silver, had today, we then traditionally price. the little felt yesterday, as back we good very in we quarter, in drop well like in there into into our as of with and price with in gold demand was movement spot few risk did there. on and the this in shape the bit should was that was a equities, price And ourselves, feel buys premiums match drop we -- and were inventory weeks, and clearly, election our we which We there obviously, last that And

in have it gives But good and we much plays million continue part, that for the in and So can environment of we EBITDA what customer felt almost the to net still how as we'll get like responds. almost was as the base adjusted see really most and out about for we million us, $XX out felt $XX to us. how we

before, said news in tailwind, that . a shift good see time. the very from albeit periods the a we of shorter headwind is when little clearly businesses we I've As performed of to well, get bit all

Thomas Forte

And queue. follow-up, in get the I'll and then my then for back

you demand. this, it strategic Towne, your M&A? to find side done like for well job So strategic like like M&A made an question can have that It historically, you've is been attractively in the through on valued but you positioned on Silver the sounds the you an seems longer-term increase current thoughts periods assets during acquisition give the amazing next

Gregory Roberts

us and mean the with Towne acquisition business out for Really They else. and something I profitability was just sellers down to for good to great was Silver were a move into thought low the little. looking the of target were timing I us. looking premiums the move at

really an to and us. very timing things include we up this bar -- really perfect up that pick the Silver standpoint. product, get I working really believe, will which out to the next XX days, in this We're us the we was that are market going was cautiously that to believe $XXX we acquisition getting to when very year we're and set of good equipment XX we're very for extra million will last that million side. believe I a optimistic be do in felt the on favorable at So the of from acquisitions say XX days, what what a funnel filled able you M&A Mint, struck the we is for and ounces looking we're we have get in some strategic that cast all just if Towne up products, we

in directly. us, busy very that timing up very couple to finish and good believe and I very forward again, process looking the been now right trying at. the area much these to we to deals going And through answer a the for question we've we're is look So of

Operator

next from from Michael is coming Your D.A. question Davidson. Baker

Michael Baker

Okay.

what to the said a you're pricing do it of you that's you quarters? Or say for it shift with lines just Greg, looking little against demand. What will gold along you you the think your macro just Does seem said macro remarks things do would to that something have premiums. the been of shift? one question, the headwinds headwinds begins you you coming makes anything of last about several to? prepared helping on to Is to have Tom's do think and answer do increased Is the referring the and to that One ahead, bit, talked down begin to why Why silver last things, you election? the that? leading was

Gregory Roberts

When bit. to premiums that about trading we call, prices, It's a As gone prices, to hurt time. bit. long our the at $XX going margins and we And that call. talked earlier in more above price little seen as that our quarter this the to at of as prices believe bit, today, very we product, a last buying in particular have I on very record silver And spot about continuing on through spot gold talk hadn't wane. we -- a talked I higher until record percentage when taking and we've after day We're last that go after secondary a prices said around going hurt after that's about talked did little world our this -- to buy up continue and did our or seem here. you the going a spot on which or back spot week little day I just day week I is we week see we last seem the about diminish in was and it on shifting call, of after what and market, buybacks high to a back to been but back it

like that us. work I selling that of behind of And a inventory. we are lot positioned we believe very I feel well a through is So lot

-- on like historically aren't side. we're very bit mean drop a positioned. spot as we we changed get feel well did the When So you the has little a today, price in that I buy sentiment we

with forward, drop the gone. while, in we that price the appeared first prices that up there the to what time I how Clearly, time were how were then do little for people gusto. believe going purchasing I different and weeks, fear see how have I and a the to -- have that public that, see and some -- for out things buyer we're leading believe responds retail the is missing was referencing. of So bit moving higher a with to first today attitude few a in be last the customers buying the did little more the in

the going drop a generally, continues or what are environment, that if in bit. little buying a price see to price more We'll expand our lower But spot triggers happens. see. we'll if So or in premiums

to. referring what that's I So was

Michael Baker

any versus And detail a by makes Yes. sort quantify on way more of what sense. were of buying you what you're selling. Okay. can or the That little in of ratio follow-up, you way

around to, what in I June buying new historically you're it's up How think September is selling had I are my it that What think, and September -- quarter? in the in if right, out -- was last quarter XX% that's the notes, trending? gone quarter, you're quarter. it XX% the my numbers

Gregory Roberts

Right.

I think numbers. we weekly weekly, and were at when looking this was more week-over-week I referencing before,

had there past, a where So number at the have real is in it the a more segment, our down And been we in number have XX% good normalized. be bought week in close We that a that we little that had may did to to little we -- dropped -- would more have a is couple back. weeks possible may a of X%. XX% quarter the ratio DTC

some buy if percentage to amount, get back So sales is you the going same you and increased down. go the

So we're But slowed basic retail in bit of selling general I the more mean, is is bit. the I that's buying think the revelation. kinds shifted shifting a feel the and sales as the down. back customers a side I have a buy have that The to that little right have our selling little said, I not products of now

cautiously optimistic, as So said. I

Operator

is from from question next Riley. B. Pipes Your Lucas Instructions] [Operator coming

Unknown Analyst

little question like behalf And to of would Lucas actually up forward. is Greg, follow Pipes. This a previous bit question looking [indiscernible] asking I on on

president, what buyers sentiment? calendar sellers good from but expectations XXXX, into would your based gets office you Trump for previous pretty your the you and from for described expect once So his QX, experience on

Gregory Roberts

for wins to the mean very me it's our create going political to predict business. for what are Yes. I hard

elections historically, very shift we contested in clearly, clearly a while. a on for we've talked referendum beneficial and to are that something a haven't a the was close and about be think it was in of not what looks contested change is us. attitude experienced This Senate had or real I

and of new does ends up. really of taxes how kind how really manages administer printing to the and money where administration where spend the inflation So what and the going they money they're

I feel determined, manage feel to like but concerned think money I about see that. a to Trump way. just standpoint, happen our until viewpoint, what I to going who markets business pure we're And at not business, in metals my that in to won from happen From of business, see lot may future that going the to think how particularly the was we're felt us. and And from it the at We to is We're and job it continued unsustainable a here business. that's like 'XX, borrowing we be I in throw really the good good can hard I administration. was relates asset we'll whatever likely of for money be viewpoint, A-Mark's historically out. to money a made administration. plays a made precious have in and Biden business money is deficits through we make and I my wasn't our as either you and

Unknown Analyst

that And going expense my to And SG&A the acquisitions? And we bit? I should how XX% look it's on I quarter-over-quarter, related correctly, to up. -- you Is second if sorry, if it forward? missed, frame this growth remember follow-up, maybe a is it little this up can

Gregory Roberts

Yes, yes.

expenses her and new think which I of comments, I just increase a little SG&A we're acquisitions, bringing related at believe, was $X look Kathleen is million to the go over back on. if to brand-new and the listen you

think out, if SG&A I that was back you So consistent. think I fairly our

Operator

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

Gregory Gibas

Thor. I Appreciate to wanted the color, and follow up. Greg,

on M&A where And you which you're if terms wanted you of maybe of the to I days think to the on just sense could markets so. looking potentially think that get noted front? side? at you're within geographies next XX something I leaning speak or towards a in

Gregory Roberts

number on deals in haven't of parts the and say cover premature focus a of little business. right are been this a that where can while. looking probably I they now specifically It's at optimistic we're I to our a And we're looking. just broad,

I optimistic always think feel to timing. And really we've looking good increase at good there's And We're think very as our reason good us opportunities goal we're business. over X going got the We we feel about looking good well to to as and line. to wholesale or get going be the we're business at. about X that we're some for here our able busy direct-to-consumer least deals I we're them. be

Gregory Gibas

to more of seeing on goal look I expectations We'll kind then wanted it. into appreciate prices I and the civil election. and commentary forward there. just the the front, speaking, get you're changes but anything to of the any election your broadly kind I Got dynamics of of updates thoughts of ask after guess within overall would to any kind be on retail if it your competitive there. online, seeing great traditional on whether kind it's you're or

Gregory Roberts

numbers. Yes. on mean, I previous I -- I've we customer our customer track mean, we calls, our new as data said -- I pretty track and new closely

have a while pretty We in of reenergizing new picked buy. for and haven't of last to who done we've clients the a we a XX to new old bought XXX lot -- also and clients a And days. have of job getting good buyers up lot

we're products. and to think right fabricated retail to silver at best that customers our there's message growing, now, I and we have believe believe I the gold there good out customer in I base believe our resonating, so small And retail reason and is least

our right in the pleased be struggle product out base. very the with there's premiums. very, So customer Wholesale just And marketplace of of now. lot continues a to bit DTC a a because of

last we to we we've busy And were week a now. and the home in able of mix bit we seen So week a really it. right of managed good of advantage the a believe or kind have you'll real inventory we when see take But wholesale numbers have our run lag little months, have seen here. inventory, few a we

market share and customers. a doing take to So job add of continuing I we're new think good

Operator

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

Gregory Roberts

I'd the for quarter, ongoing if also and and you our next investment success. not Thank for like commitment of for before. their gratitude to to my forward look dedication your to thank in to to we express our want you. our to all And A-Mark. joining call I and today shareholders talking employees support

Operator

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

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

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

to Finally, a the will a of website. for in section recording the of I'd like today's remind that everyone be via call company's replay available link Investors

Thank for A-Mark's you for earnings today joining call. us

disconnect. now may You

A-Mark Precious Metals (AMRK) 6 Nov 242025 Q1 Earnings call transcript