- Net Income: $66.2 million for fiscal year 2024.
- Diluted EPS: $2.75 per share for fiscal year 2024; $2.15 excluding remeasurement gain.
- Non-GAAP EBITDA: $89.9 million for fiscal year 2024.
- Revenue: $2.52 billion for Q4 fiscal 2024, down 19% from Q4 last year; $9.7 billion for fiscal year 2024, up 4% from prior year.
- Gross Profit: $43 million for Q4 fiscal 2024, down 45% from Q4 last year; $173.3 million for fiscal year 2024, down 41% from prior year.
- SG&A Expenses: $22.7 million for Q4 fiscal 2024, down 1% from Q4 last year; $89.8 million for fiscal year 2024, up 5% from prior year.
- Depreciation and Amortization: $2.8 million for Q4 fiscal 2024, up 4% from Q4 last year; $11.4 million for fiscal year 2024, down 9% from prior year.
- Interest Income: $8.1 million for Q4 fiscal 2024, up 33% from Q4 last year; $27.2 million for fiscal year 2024, up 22% from prior year.
- Interest Expense: $9.6 million for Q4 fiscal 2024, up 8% from Q4 last year; $39.5 million for fiscal year 2024, up 25% from prior year.
- Earnings from Equity Method Investments: $0.8 million for Q4 fiscal 2024, down 86% from Q4 last year; $4 million for fiscal year 2024, down 68% from prior year.
- Adjusted Net Income Before Provision for Income Taxes: $20.1 million for Q4 fiscal 2024, down 66% from Q4 last year; $80.3 million for fiscal year 2024, down 63% from prior year.
- EBITDA: $36.1 million for Q4 fiscal 2024, down 42% from Q4 last year; $104.2 million for fiscal year 2024, down 54% from prior year.
- Cash: $48.6 million at fiscal year-end 2024, up from $39.3 million at fiscal year-end 2023.
- Non-Restricted Inventories: $579.4 million at fiscal year-end 2024, down from $645.8 million at fiscal year-end 2023.
- Tangible Net Worth: $304.8 million at fiscal year-end 2024, down from $435.5 million at fiscal year-end 2023.
- Quarterly Cash Dividend: $0.20 per common share.
- Gold Sold: 448,000 ounces in Q4 fiscal 2024, down 45% from Q4 last year; 1.8 million ounces for fiscal year 2024, down 39% from prior year.
- Silver Sold: 25.4 million ounces in Q4 fiscal 2024, down 44% from Q4 last year; 108.1 million ounces for fiscal year 2024, down 31% from prior year.
- New Customers in DTC Segment: 570,300 in Q4 fiscal 2024, up 530% from Q4 last year; 718,500 for fiscal year 2024, up 114% from prior year.
- Total Customers in DTC Segment: Approximately 3.1 million at the end of Q4 fiscal 2024, up 31% from prior year.
- DTC Segment Average Order Value: $2,890 in Q4 fiscal 2024, down 12% from Q4 last year; $2,407 for fiscal year 2024, down 8% from prior year.
- Inventory Turn Ratio: 2.3 for Q4 fiscal 2024, down 28% from Q4 last year; 9.2 for fiscal year 2024, down 12% from prior year.
- Secured Loans: 588 as of June 30, 2024, down 13% from March 31, 2024, and down 33% from June 30, 2023.
- Secured Loans Receivable Balance: $113.1 million at fiscal year-end 2024, down 2% from March 31, 2024, and up 12% from June 30, 2023.
Release Date: August 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- A-Mark Precious Metals Inc (AMRK, Financial) reported $66.2 million of net income and diluted EPS of $2.75 per share for fiscal year 2024.
- The company generated $89.9 million in non-GAAP EBITDA, excluding the remeasurement gain.
- A-Mark Precious Metals Inc (AMRK) ended the fiscal year with over 3 million direct-to-consumer customers, reflecting the benefits of strategic investments.
- The company repurchased $22.4 million of its common stock, enhancing shareholder value.
- A-Mark Precious Metals Inc (AMRK) is advancing logistics automation initiatives at its AMGL facility in Las Vegas to support increased volume and lower operational costs.
Negative Points
- Revenues for Q4 fiscal 2024 decreased 19% to $2.52 billion from $3.12 billion in Q4 of last year.
- Gross profit for Q4 fiscal 2024 decreased 45% to $43 million from $78.6 million in Q4 of last year.
- SG&A expenses for the full fiscal year increased 5% to $89.8 million from $85.3 million in the prior fiscal year.
- Interest expense for the full fiscal year increased 25% to $39.5 million from $31.5 million last fiscal year.
- Earnings from equity method investments in Q4 fiscal 2024 decreased 86% to $0.8 million from $5.3 million in Q4 of last year.
Q & A Highlights
Q: Greg, when I think about your performance in the last fiscal year, it feels like you did a very good job of generating profits. When I look at the chart for gold, it’s pretty much straight up and to the right. So, without thinking about fiscal 2025, am I right in thinking that, generally speaking, when you have a one-way trade in gold, that can be challenging for you, and despite the challenges, you were able to generate a ton of profit?
A: Yeah. I mean, I think you hit the nail on the head. We were at almost $90 million in EBITDA for the year, which, as we have just in the past and today, it was certainly an environment with headwinds. The performance in that environment was really good. The improved performance in Q4 over Q3, where I don’t think the macro environment was that much different, to be able to improve and get to $0.60 from $0.21, I believe that the company and everybody with the company did a tremendous job.
Q: Historically, the good news is, in this kind of environment, there may be more attractive M&A opportunities. Can you just talk about your current thoughts in M&A at a high level?
A: Yes. We are busier than ever right now reviewing and vetting different opportunities for us. We have had a number of conversations where we have opportunities, both large and small. We continue to put acquisitions and M&A at the top of the five asset allocation items that we look at, which include M&A, inventory, stock buybacks, dividends, and repayment of debt. We are very well positioned right now with our balance sheet to take advantage of whichever of our five spokes become available to us.
Q: We saw a nice pickup in gross margin sequentially. Can you just kind of talk through the drivers there, whether that’s a mix, kind of an improved spread environment?
A: We saw an increase over most of our lines of business in this quarter versus the previous quarter. On the DTC side, we invested in marketing to add new customers and wake up old customers. On the wholesale side, we had some larger transactions that drove the top line. Overall, we performed a bit better in Q4 than we did in Q3.
Q: Can you talk about what you’re doing at AMGL in Vegas?
A: We are building out the space next door with new automated technology that allows for a modernization of the pick and pack process and the packaging process. This will use technology and machinery to greatly increase our capacity on how many packages we can ship the next time that we’re pressed and markets allow for higher volumes of shipments.
Q: Can you talk about how you’re positioning yourself with inventory for possible volatility in the precious metals market before the election?
A: We have seen some increase in premiums in selected inventory items. I’m very comfortable with the inventory we’re holding. We’re well-positioned to take advantage of increased demand. We’ve also developed new business with new customers on the Wholesale side, turning inventory faster. We’ve managed our production at both SilverTowne Mint and SMI to be very nimble and shift products quickly to meet customer needs.
Q: What are your thoughts on catalysts or drivers that can lead to improving spreads? Would it be mostly macroeconomic-related, relating to volatility or anything on the supply side of the equation?
A: Generally, our markets are driven by macroeconomic events. Volatility in the spot price of gold and silver, as well as volatility to the downside in equities, generally affects us positively. We continue to see a lot of polarization and uncertainty regarding the election, Israel, Russia, and Ukraine. These factors are tightening the string, and it’s not going to take much of a spike in demand to see premiums increase.
Q: Can you review how the LPM acquisition is playing out relative to how you modeled it? Is the Hong Kong Asian market similarly depressed in activity and spread margin as your home market?
A: We’re very pleased with the assets and personnel from LPM. The demand drop-offs in Europe and the US have affected them. From a P&L standpoint, we’re a little behind where we hoped to be, but we’re optimistic about seeing the expected results. We’re full speed ahead on moving our wholesale assets and expertise into the Asian market and developing a trading hub in Singapore.
Q: You referenced an active pipeline of opportunities. Are these new targets or topping up partially owned companies? Are they in North America, Asia, or Europe?
A: It’s probably exclusively new deals. We don’t have anything right now that is transformational or of the size of JM Bullion, but still important. There are both Wholesale and retail opportunities domestically and retail opportunities outside the US. We’re looking at opportunities that can benefit our logistics business or minting businesses. We’re comfortable growing any of those areas.
Q: How has the election cycle historically impacted your business?
A: We have great history in 2016 and 2020. This cycle has been different. For the first six months of 2024, there was a feeling that Trump was going to win, which lulled precious metal buyers into a comfort zone. There has been a shift in perception since the end of July. There is more uncertainty now, but we’re well-positioned for any outcome.
Q: Can you talk about your current thoughts on M&A at a high level?
A: We are busier than ever right now reviewing and vetting different opportunities for us. We have had a number of conversations where we have opportunities, both large and small. We continue to put acquisitions and M&A at the top of the five asset allocation items that we look at, which include M&A, inventory, stock buybacks, dividends, and repayment of debt. We are very well positioned right now with our balance sheet to take advantage of whichever of our five spokes become available to us.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
