Q4 2023 A-Mark Precious Metals Inc Earnings Call

Okay.

Good afternoon, and welcome to the a mark precious metals conference call for the fourth quarter and fiscal year ended June 32023. My name is John and I will be your operator this afternoon.

Speaker 1: Good afternoon and welcome to the AMARK Precious Medals conference call for the fourth quarter and fiscal year ended June 30, 2023. My name is John and I will be your operator this afternoon.

Speaker 1: For this call, AMARK issued its results for the fourth quarter in fiscal year 2023 in a press release. AMARK issued its results for the fourth quarter in fiscal year 2023 in a press release.

Before this call a mark issued its results for the fourth quarter and fiscal year 2023, and a press release, which is available on the Investor Relations section of the company's website at Www Dot <unk> Dot com.

Speaker 1: the company's website at www.amark.com you can find the link to the info

You can find the link to the Investor Relations section at the top of the homepage.

Joining us for today's call are a Mark's CEO, Greg Roberts, President Thor <unk> and CFO Kathleen Simpson Taylor.

Speaker 1: Joining us for today's call are AMARK CEO Greg Roberts, President Thor Jorjurjom, and CFO Kathleen Simpson Taylor. Following their remarks,

Following their remarks, we will open the call to your questions.

Speaker 1: Then, before we conclude the call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call. I would like to remind everyone that the

Then before we conclude the call I'll provide the necessary cautions regarding the forward looking statements made by management during this call.

I would like to remind everyone that this call is being recorded.

Speaker 1: will and will be made available for replay via link available in the investor relations section.

And we will and will be made available for replay via a link available in the Investor Relations section of a Mark's website.

Speaker 1: Now, I would like to turn the call over to AMARK CEO , Mr. Greg Roberts. Sir, please proceed.

Now I would like to turn the call over to a Mark's CEO Mr. Greg Roberts Sir Please proceed.

Thank you John and good afternoon to everyone.

Speaker 2: Thank you for joining our call today. As we reported in our earnings release, fiscal 2023 marked a record year of strong financial and operational performance for AMARK.

Thank you for joining our call today as we reported in our earnings release fiscal 2023 marked a record year of strong financial and operational performance for a mark.

Speaker 2: further demonstrating the strength of AMARK's industry-leading fully integrated precious metals plot.

Further demonstrating the strength of a mark's industry, leading fully integrated precious metals platform for the full fiscal year, we reported $156 4 million of net income and diluted EPS of $6 34 per share.

Speaker 2: For the full fiscal year, we reported $156.4 million of net income and diluted EPS of $6.34 per share.

Speaker 2: Our full year gross profit grew 13% year over year and we delivered record levels of EBITDA of $225 million and generated a 29% return on equity for the year.

Our full year gross profit grew 13% year over year, and we delivered record levels of EBITDA of $225 million and generated a 29% return on equity for the year.

Speaker 2: Our direct-to-consumer, or DTC, segment continues to contribute significantly to our overall financial performance, generating approximately 57% of our consolidated gross profit for the year.

Our direct to consumer or DTC segment continues to contribute significantly to our overall financial performance generating approximately 57% of our consolidated gross profit for the year.

Speaker 2: New DTC customers grew by 46% year over year, highlighting the success of our strategic acquisitions and organic customer growth, including the acquisitions of BGIC and Bulumax, which further expanded our DTC.

New DTC customers grew by 46% year over year, highlighting the success of our strategic acquisitions.

And organic customer growth, including the acquisitions of <unk> and bullion, Max which further expanded our DTC customer base.

Speaker 2: During the year we added minority interests in UK based Atkinson's Bullion and Coin and Texas Precious Metals to our investment portfolio.

During the year, we added minority interests and U K based atkinson's bullion coin and Texas precious metals to our investment portfolios.

Speaker 2: We also bolstered our minting operations by investing in the expansion of our Silvertown Mint Facility in Indiana.

We also bolstered our minting operations by investing in the expansion of our silver town Mint facility in Indiana.

Speaker 2: which now has the capacity to produce over 1 million ounces of fabricated silver per week.

Which now has the capacity to produce over 1 million ounces of fabricated silver per week.

Speaker 2: Silvertown also achieved ISO 9000 certification during the year, reaffirming the company's reputation as a leading manufacturer of quality bullion products.

Silver town also achieved ISO 9000 certification during the year reaffirming the company's reputation as a leading manufacturer of quality bullion products now.

Now.

Speaker 2: I'll turn the call over to our CFO Kathleen Simpson Taylor, and she will walk you through our financials in more detail. Then AMARK's president, Thor Jurgen, will discuss our key operating methods.

I'll turn the call over to our CFO Kathleen Simpson Taylor and she will walk you through our financials in more detail then <unk> President Thor <unk> will discuss our key operating metrics. Afterwards, I will provide a further update on our business and growth strategy ahead as.

Speaker 2: Afterwards, I will provide a further update on our business and growth strategy ahead as we progress into fiscal 2024. Kathleen? Thank you, Greg.

As we progress into fiscal 2020 for Kathleen.

Thank you, Greg and good afternoon, everyone.

Speaker 3: Our revenues for fiscal Q4 2023 increased 51% to $3.16 billion from $2.09 billion in Q4 of last year due to an increase in gold and silver ounces sold and higher average selling prices of gold and silver.

Our revenues for fiscal Q4, 2023 increased 51% to $3. One 6 billion from 2.09 billion in Q4 of last year due to an increase in gold and silver ounces sold and higher average selling prices of gold and silver.

Speaker 3: The DTC segment contributed 19% of the consolidated revenue in fiscal Q4 2023, compared to 23% in Q4 of last year.

The DTC segment contributed 19% of the consolidated revenue in fiscal Q4, 2023 compared to 23% in Q4 of last year.

Speaker 3: Revenue contributed by J.M. Bullion, J.M.B., represented 17 percent of the consolidated revenues for fiscal Q4 of 2023 compared to 21 percent in Q4 of last year.

Revenue contributed by JM bullion J M. D represented 17% of the consolidated revenues for fiscal Q4, 2023 compared to 21% in Q4 of last year.

Speaker 3: For the full fiscal year, our revenues increased 14% to $9.32 billion from $8.16 billion in the prior fiscal year.

For the full fiscal year, our revenues increased 14% to 9.32 billion from $8, one 6 billion in the prior fiscal year.

Speaker 3: Excluding a 1.2 billion increase in forward sales, our revenues increased by 2.6 million, driven primarily by an increase in silver ounces sold and higher average selling prices of gold, partially offset by a decrease in gold ounces sold and lower average selling prices.

Excluding a 1.2 billion increase in forward sales our revenues increased by $2 6 million driven primarily by an increase in silver ounces sold and higher average selling prices of gold, partially offset by a decrease in gold ounces sold and lower average selling.

<unk> of silver.

Speaker 3: The DTC segment contributed 21% and 26% of the consolidated revenue in fiscal year 2023 and 2022.

The DTC segment contributed 21% and 26% of consolidated revenue in fiscal year, 2023, and 2022, respectively.

Speaker 3: revenue contributed by JMD represented 19% of the consolidated revenues for fiscal year 2023 compared to 24% in the prior year.

Revenue contributed by J M. D represented 19% of the consolidated revenues for fiscal year 2023, compared to 24% in the prior year.

Speaker 3: Gross profit for fiscal Q4 2023 increased 16% to 78.6 million or 2.49% of revenue from 67.8 million or 3.24% of revenue in Q4 of last year.

Gross profit for fiscal Q4, 2023 increased 16% to $78 6 million or 2.49% of revenue from 67 8 million or three point to 4% of revenue in Q4 of last year.

Speaker 3: The increase in gross profit was due to higher gross profits earned from the wholesale sales and ancillary services and direct-to-consumer segments.

The increase in gross profit was due to higher gross profits earned from the wholesale sales and ancillary services and direct to consumer segment.

Speaker 3: Gross profit contributed by the DGC segment represented 60% of the consolidated gross profit in fiscal Q4 2023 compared to 57% in the same year ago period.

Gross profit contributed by the DTC segment represented 60% of the consolidated gross profit in fiscal Q4, 2023 compared to 57% in the same year ago period.

Speaker 3: Gross profit contributed by JMB represented 49% of the consolidated gross profit in fiscal Q4 2023, compared to 46% in Q4 of last year.

Gross profit contributed by J M. D represented 49% of the consolidated gross profit in fiscal Q4, 2023 compared to 46% in Q4 of last year.

Speaker 3: For the full fiscal year, gross profit increased 13% to $294.7 million, or 3.16% of revenue, from $261.8 million, or 3.21% of revenue, in the prior fiscal year.

For the full fiscal year gross profit increased 13% to $294 7 million or 316% of revenue from 261 8 million or 321% of revenue in the prior fiscal year.

Speaker 3: Excluding a 1.2 billion increase in forward sales, which have a negligible impact to gross profit, the gross profit percentage increased to 4.27% from 3.79% in the prior fiscal year.

Excluding a $1 2 billion increase in forward sales, which have a negligible impact to gross profit the gross profit percentage increased to $4 two 7% from $3 seven 9% in the prior fiscal year.

Speaker 3: The increase in gross profit was due to higher gross profits earned from the wholesale sales and ancillary services and DTC.

The increase in gross profit was due to higher gross profits earned from the wholesale sales and ancillary services and DTC segment.

Gross profit contributed by the DTC segment represented 57% of the consolidated gross profit in fiscal 2023 compared to 56% in the prior fiscal year.

Speaker 3: Gross profit contributed by the DTC segment represented 57% of the consolidated gross profit in fiscal 2023 compared to 56% in the prior fiscal year.

Speaker 3: JMB contributed 49% to the consolidated gross profit for fiscal 2023, compared with 46% in the prior

J M. B contributed 49% to the consolidated gross profit for fiscal 2023, compared with 46% in the prior year.

Speaker 3: SG&A expenses for fiscal Q4 2023 increased 10% to 22.8 million from 20.7 million in Q4 of last year. The increase was primarily due to an increase in compensation expenses.

SG&A expenses for fiscal Q4, 2023 increased 10% to $22 8 million from $20 7 million in Q4 of last year.

The increase was primarily due to an increase in compensation expense, including performance based accruals of $1 3 million higher advertising costs of $1 1 million higher information technology costs of 0.9 million and higher consulting and professional fees a zero point.

Speaker 3: including performance-based accruals of 1.3 million, higher advertising costs of 1.1 million, higher information technology costs of 0.9 million, and higher consulting and professional fees of 0.4 million, partially offset by lower insurance costs of 2.1 million.

4 million, partially offset by lower insurance costs of $2 1 million.

Speaker 3: For the full fiscal year, SG&A expenses increased 11% to 85.3 million from 76.6 million in fiscal year 2020.

For the full fiscal year, SG&A expenses increased 11% to $85 3 million from $76 6 million in fiscal year 2022.

Speaker 3: The increase was primarily due to an increase in compensation expense, including performance-based accruals of $6.4 million, higher advertising costs of $3.5 million, an increase in information technology costs of $1.7 million, partially offset by a decrease in insurance costs of $1.7 million, and lower consulting and professional fees of $2 million.

The increase was primarily due to an increase in compensation expense, including performance based accruals of $6 4 million higher advertising cost of $3 5 million an increase in information technology costs of $1 7 million, partially offset by a decrease in insurance costs.

$1 7 million and lower consulting and professional fees up $2 million.

Depreciation and amortization expense for fiscal Q4, 2023 decreased 15% to $2 7 million from $3 2 million in Q4 of last year did.

Speaker 3: Depreciation and amortization expense for fiscal Q4 2023 decreased 15% to $2.7 million from $3.2 million in Q4 of last year.

Speaker 3: The decrease was primarily due to a decrease in amortization of acquired intangibles related to JF.

The decrease was primarily due to a decrease in amortization of acquired intangibles related to J M. B.

Speaker 3: For the full fiscal year, depreciation and amortization expense decreased 54% to 12.5 million from 27.3 million in the prior year. The decrease was primarily due to a $14.9 million decrease in amortization of acquired intangibles related to JF-

For the full fiscal year, depreciation and amortization expense decreased 54% to $12 5 million from $27.3 million in the prior year. The decrease was primarily due to a $14 9 million dollar decrease in amortization of acquired intangibles related to <unk>.

J M D.

Interest income increased 7% to $6 1 million from $5 7 million in Q4 of last year.

Speaker 3: Interest income increased 7% to 6.1 million from 5.7 million in Q4 of last year.

Speaker 3: increase in interest income was primarily due to higher finance product income from our wholesale sales and ancillary services segment, which was partially offset by a decrease in interest income earned by our secured lending.

The increase in interest income was primarily due to higher finance product income from our wholesale sales and ancillary services segment, which was partially offset by a decrease in interest income earned by our secured lending segment.

Speaker 3: for the full fiscal year. First income increased 2% to $22.2 million from $21.8 million in fiscal year 2022.

For the full fiscal year interest income increased 2% to $22 2 million from $21 8 million in fiscal year 2022.

Speaker 3: The increase was primarily due to higher finance product income from our wholesale sales and ancillary services segment, partially offset by a decrease in interest income earned by our secured lending.

The increase was primarily due to higher finance product income from our wholesale sales and ancillary services segment, partially offset by a decrease in interest income earned by our secured lending segment.

Interest expense for fiscal Q4, 2023 increased 57% to $8 9 million from $5 7 million in Q4 of last year. The increase in interest expense was primarily driven by a $2 $4 million increase associated with our trading credit facility.

Speaker 3: Interest expense for fiscal Q4 2023 increased 57% to $8.9 million from $5.7 million in Q4 of last year.

Speaker 3: The increase in interest expense was primarily driven by a $2.4 million increase associated with our trading credit facility, primarily due to an increase in interest rates, and notes payable, including amortization of debt issuance costs.

Merely due to an increase in interest rates and notes payable, including amortization of debt issuance costs.

In addition, a 0.8 million increase related to product financing arrangements.

Speaker 3: In addition, a 0.8 million increase related to product financing.

Speaker 3: For the full fiscal year interest expense increased 43% to 31.5M from 22M in fiscal year 2022.

For the full fiscal year interest expense increased 43% to $31 5 million from $22 million in fiscal year 2022.

Speaker 3: The increase was primarily driven by $7.2 million associated with our trading credit facility, primarily due to an interest rate increase, and notes payable, including amortization of debt issuance costs. The increase was primarily driven by $7.2 million associated with our trading credit facility, primarily due to an interest rate increase, and notes payable, including amortization

The increase was primarily driven by 7.2 million associated with our trading credit facility, primarily due to an interest interest rate increase and notes payable, including amortization of debt issuance costs.

Speaker 3: $2.6 million related to product financing arrangements, and $0.6 million in interest associated with liabilities on borrowed metals. And this was partially offset by a decrease of $0.9 million of loan services.

$2 6 million related to product financing arrangements.

Zero point $6 million in interest associated with liabilities on borrowed metals and this was partially offset by a decrease of <unk> 9 million of loan servicing fees.

Speaker 3: Earnings from equity method investments in Q4 2023 increased 105% to 5.3 million from 2.6 million in the same year ago quarter.

Earnings from equity method investments in Q4, 2023 increased 105% to $5 3 million from $2 6 million in the same year ago quarter.

Speaker 3: The increase reflects our new investments made during the year, as well as the higher percentage ownership in our existing equity method investments in comparison to the prior fiscal year.

The increase reflects our new investments made during the year as well as the higher percentage of ownership in our existing equity method investments in comparison to the prior fiscal year.

Speaker 3: For the full fiscal year, earnings from equity method investments increased 82% to 12.6 million from 6.9 million in fiscal year 2022.

For the full fiscal year earnings from equity method investments increased 82% to $12 6 million from $6 9 million in fiscal year 2022.

Speaker 3: The increase of $5.7 million was primarily due to the additional 40% ownership interest in Silver Gold Bull, which was acquired in June 2022, as well as earnings from our other equity method.

The increase of $5 7 million was primarily due to the additional 40% ownership interest in silver Gold Bull, which was acquired in June 2022, as well as earnings from our other equity method investments.

Net income attributable to the company for the fourth quarter of fiscal 2023 totaled $41 8 million or $1 71 per diluted share.

Speaker 3: Net income attributable to the company for the fourth quarter of fiscal 2023 totaled $41.8 million or $1.71 per diluted share. This compares to net income attributable to the company of $37.3 million or $1.52 per diluted share in Q4 of last year.

This compares to net income attributable to the company of $37 3 million or $1 52 per diluted share in Q4 of last year.

Speaker 3: For the full fiscal year, net income attributable to the company totaled $156.4 million, or $6.34 per diluted share. This compares to net income attributable to the company of $132.5 million, or $5.45 per diluted share in the prior fiscal year.

For the full fiscal year net income attributable to the company totaled $156 4 million or $6 34 per diluted share.

This compares to net income attributable to the company of $132 5 million or $5.45 per diluted share in the prior fiscal year.

Speaker 3: Adjusted net income before provision for income taxes, a non-GAAP financial performance measure which excludes acquisition expenses, amortization, and depreciation for Q4 fiscal 2023 totaled $59.1 million, an increase of 17% compared to $50.6 million in the same year ago quarter.

Adjusted net income before provision for income taxes, a non-GAAP financial performance measure, which excludes acquisition expenses amortization and depreciation for Q4 fiscal 2023 totaled $59 1 million, an increase of 17% compared to 50.

One 6 million in the same year ago quarter.

Speaker 3: adjusted net income before provision for income taxes for fiscal 2023 totaled 216 million, an increase of 11% compared to 195 million in the prior fiscal year.

Adjusted net income before provision for income taxes for fiscal 2023 totaled $216 million, an increase of 11% compared to $195 million in the prior fiscal year.

Speaker 3: IBITDA, a non-GAAP liquidity measure for Q4 fiscal 2023, totaled $61.8 million, a 23% increase compared to $50.3 million in Q4 of fiscal 2022.

EBITDA, a non-GAAP liquidity measure for Q4 fiscal 2023 totaled $61 8 million, a 23% increase compared to $50 3 million in Q4 of fiscal 2022.

Speaker 3: IBDAA for fiscal 2023 totaled $225 million, a 16% increase compared to $193.9 million in the prior fiscal year.

EBITDA for fiscal 2023 totaled 225 million, a 16% increase compared to $193 9 million in the prior fiscal year.

Turning to our balance sheet at fiscal year end, we had $39 3 million of cash compared to $37 8 million at the end of fiscal year 2022.

Speaker 3: Turning to our balance sheet, at fiscal year end, we had $39.3 million of cash compared to $37.8 million at the end of fiscal year 2022.

Speaker 3: Our tangible net worth at the end of the fiscal year was $436.8 million, up from $321.6 million at the end of the prior fiscal year.

Our tangible net worth at the end of the fiscal year was $436 8 million up from $321 6 million at the end of the prior fiscal year.

Speaker 3: AMARK's Board of Directors has continued to maintain the company's regular quarterly cash dividend program of 20 cents per common share. The most recent quarterly cash dividend was paid in July .

Amer sport of directors has continued to maintain the company's regular quarterly cash dividend program of <unk> 20 per common share. The most recent quarterly cash dividend was paid in July.

Speaker 3: The Board of Directors has also declared the next regular quarterly cash dividend, which is payable on October 24, 2023, to stockholders of record as of October 10, 2023.

The board of Directors has also declared the next regular quarterly cash dividend, which is payable on October 24th 2023 to stockholders of record as of October 10th 2023.

Speaker 3: In addition, the Board of Directors has declared a non-recurring special cash dividend of $1 per common share, which will be paid on September 26, 2023 to stockholders of record as of September 12, 2020.

In addition, the board of Directors has declared a nonrecurring special cash dividend of $1 per common share, which will be paid on September 26, 2023 to stockholders of record as of September 12, 2023.

Speaker 3: That completes my financial summary. Now I will turn the call over to Thor who will provide an update on our key operating metrics.

That completes my financial summary, now I will turn the call over to Thor, who will provide an update on our key operating metrics Thor.

John: Good afternoon and welcome to the A-Mark Precious Meadows Conference call for the Fourth Quarter and the Fiscal Year ended June 30, 2023. My name is John and I will be your operator this afternoon. Before this call, A-Mark issued its results for the Fourth Quarter and Fiscal Year 2023 in a press release, which is available in the Investor Relations section of the company's website at www.aamark.com. You can find the link to the Investor Relations section at the top of the homepage.

Thank you Kathleen.

Speaker 4: Thank you, Kathleen. Looking at our key operating metrics for the fiscal fourth quarter and full year 2023.

Looking at our key operating metrics for the fiscal fourth quarter and full year 2023.

Speaker 4: We sold 814,000 ounces of gold in Q4 fiscal 2023, which was up 27% from Q4 of last year and up 24% from the prior.

We sold 814000 ounces of gold in Q4 fiscal 2023, which was up 27% from Q4 of last year and up 24% from the prior quarter for the full fiscal year. We sold two 7 million ounces of gold, which was relatively unchanged for fiscal 2022.

Speaker 4: for the full fiscal year. We sold 2.7 million ounces of gold, which was relatively unchanged for fiscal 2022.

John: Joining us for today's call are A-Mark CEO Greg Roberts, President Thor Gjerdrum, and CFO Kathleen Simpson Taylor. Following their remarks, we will open the call to your questions. Then, before we conclude the call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call. I would like to remind everyone that this call is being recorded and we will and will be made available for replay via a link available in the Investor Relations section of A-Mark's website.

Sorry, one correction I said 40000 ounces of gold silver and 40000 ounces of silver we sold $45 3 million ounces of silver in Q4 fiscal 2023, which was up 20% from Q4 of last year and up 23% from the prior quarter for the full fiscal year, we sold $156 2 million.

Speaker 4: Sorry, one correction. I said 814,000 ounces of gold. That was silver.

Speaker 4: We sold 45.3 million ounces of silver in Q4 fiscal 2023, which was up 20% from Q4 of last year, and up 23% from the prior quarter. For the full fiscal year, we sold 156.2 million ounces of silver, which is up 18% from fiscal 2020.

The silver, which was up 18% from fiscal 2022.

Speaker 4: The number of new customers in the DTC segment, which is defined as the number of customers that have registered or set up a new account or made a purchase for the first time during the period, was 90,400 in Q4 fiscal 2023, which is 85% from Q4 of last year and 40% from the prior quarter.

The number of new customers in the DTC segment, which is defined as the number of customers that are registered I have set up a new account or made a purchase for the first time. During the period was 90400 <unk> Q4 fiscal 2023, which is up 85% from Q4 of last year and up 40% from the prior quarter approximately 32.

Greg Roberts: Now, I would like to turn the call over to A-Mark CEO Mr. Greg Roberts. Sir, please proceed. Thank you, John, and good afternoon to everyone. Thank you for joining our call today. As we reported in our earnings release, Fiscal 2023 marked a record year of strong financial and operational performance for A-Mark. Further demonstrating the strength of A-Mark's industry leading fully integrated precious metals platform. For the full fiscal year, we reported 156.4 million of net income and diluted EPS of $6.34 per share.

Speaker 4: Approximately 32% of the new customers in Q4 fiscal 2023 were attributable to the acquired customer list of bullion maps in June 2023.

Percent of the new customers in Q4 fiscal 2023 were attributable to the acquired customer lists OEM back in June 2023 for the full fiscal year, the number of new customers in the DTC segment were 335000.

Speaker 4: For the full fiscal year, the number of new customers in the DTC segment was 335,300, which is up 46% from the prior year. Approximately 31% of the new customers in fiscal 2023 were attributable to the acquired customer list of BG ASC and Bulimax in October 22 and June 2023 respectively.

300, which was up 46% from the prior year approximately 31% of the new customers in fiscal 2023 were attributable to the acquired customer lists of BG ASE and <unk> on October 22, and June 2023, respectively.

Greg Roberts: Our full year gross profit grew 13% year over year and we delivered record levels of EBITDA of $225 million and generated a 29% return on equity for the year. Our direct to consumer or DTC segment continues to contribute significantly to our overall financial performance, generating approximately 57% of our consolidated gross profit for the year. New DTC customers grew by 46% year over year, highlighting the success of our strategic acquisitions and organic customer growth, including the acquisitions of BGIC and bullion max, which further expanded our DTC customer base.

Speaker 4: the number of total customers in the DTC segment at the end of fiscal 2023 was approximately 2.3 million, which is a 70% increase from the prior year. The year of year increase in total customers was due to organic growth of our GMB customer base, as well as the acquired customer list of BGASC and Bully & Max in October 2022 and June 2023 respectively.

The number of total customers in the DTC segment at the end of fiscal 2023 was approximately $2 3 million, which was a 17% increase from the prior year the year over year increase in total customers was due to organic growth of our G&P customer base as well as the acquired customer lists of BG ASC and volume back in October.

2022, and June 2023, respectively.

Speaker 4: The DTC segment average order value, which represents the average dollar value of products, excluding accumulation program orders delivered to DTC segment customers during Q4 fiscal 2023, was $3,288, which was up 20% from Q4 of last year and up 34% from the prior quarter.

The DTC segment average order value, which represents the average dollar value of products, excluding accumulation product program orders delivered to DTC segment customers. During Q4 fiscal 2023 was $3288, which was up 20% from Q4 of last year and up 34% from the prior quarter.

Greg Roberts: During the year, we added minority interests in UK-based Adconsons bullion and coin and Texas precious metals to our investment portfolios. We also bolstered our minting operations by investing in the expansion of our Silver Town Mint facility in Indiana, which now has the capacity to produce over 1 million ounces of fabricated silver per week. Silver Town also achieved ISO 9000 certification during the year, reaffirming the company's reputation as a leading manufacturer of quality bullion products.

Speaker 4: For the full fiscal year, our DTC average order value was $2,606, which is up 3% from fiscal 2022.

For the full fiscal year, our DTC average order value was $2606, which was up 3% from fiscal 2022 for the fiscal fourth quarter. Our inventory turnover ratio was three <unk>, which was a 19% increase for $2 7 million in Q4 of last year and a 33% increase for <unk>.

Speaker 4: For the fiscal fourth quarter, our inventory turnover ratio was 3.2, which was a 19% increase from 2.7 in Q4 of last year and a 33% increase from 2.4 in the prior quarter.

Four in the prior quarter for the full fiscal year, our inventory turnover ratio was 10, five which is down 20% from the same year ago period. Finally, the number of secured loans at the end of.

Speaker 4: For the full fiscal year, our inventory turnover ratio was 10.5, which is down 20% from the same year ago period.

Kathleen Simpson Taylor: Now, I'll turn the call over to our CFO Kathleen Simpson Taylor and she will walk you through our financials in more detail. Then, A.

Speaker 4: Finally, the number of secured loans at the end of June totaled 882, a decrease of 8% from March 31, 2023, and a decrease of 61% from March 31, 2023, and a decrease of 61%

June totaled 882, a decrease of 8% from March 31, 2023, and a decrease of 61% from June 32020 to the dollar value of our loan portfolio at the end of June 2023 totaled $100 6 million, which is up 4% from the end of March were down 20% from June 30.

Thor Gjerdrum: Mark's president, Thor Jurdrum, will discuss our key operating metrics. Afterwards, I will provide a further update on our business and growth strategy ahead as we progress into fiscal 2024.

Speaker 4: from June 30, 2022, the dollar value of our loan portfolio at the end of June 2023, over 100.6 million, which is up 4% from the end of March, but down 20% from June 30, 2022. I apologize, one correction on my out statements. We sold 814,000 ounces of gold in Q4 fiscal 2023, and we sold 2.7 million ounces of silver in Q4 fiscal 2023.

Kathleen Simpson Taylor: Kathleen? Thank you, Greg, and good afternoon, everyone. Our revenues for fiscal Q4 2023 increased 51% to 3.16 billion from 2.09 billion in Q4 of last year due to an increase in gold and silver ounces sold and higher average selling prices of gold and silver. The DTC segment contributed 19% of the consolidated revenue in fiscal Q4 2023 compared to 23% in Q4 of last year. Revenue contributed by J.M. Bullion, J.M.B., represented 17% of the consolidated revenues for fiscal Q4 of 2023 compared to 21% in Q4 of last year.

2022, I apologize one correction on my all statements. We sold 814000 ounces of gold in Q4 fiscal 2023, and we sold $2 7 million ounces of silver.

For the full two point something out as a goal for the full fiscal year that concludes my prepared remarks, I will now turn it over to Greg.

Speaker 4: excuse me, for the 2.7 million dollars of gold for the full.

Speaker 4: That concludes my prepared remarks. I will now turn it over to Greg for closing remarks. Great.

<unk> remarks, Greg.

Speaker 5: Thank you Thor and Kathleen. Looking ahead to Fiscal 24 we've seen a bit of premium compression since we commenced our new fiscal year.

Thank you Thorn Kathleen looking.

Looking ahead to fiscal 'twenty, four we've seen a bit of a premium compression since we commenced our new fiscal year with.

With the headwinds continuing from June into July.

Speaker 2: August has been a bit more active and we are optimistic that this will continue into September .

August has been a bit more active and we are optimistic that this will continue into September.

Speaker 2: We continue to evaluate opportunities to further expand our geographic presence and market reach to create shareholder value.

We continue to evaluate opportunities to further expand our geographic presence and market reach to create shareholder value.

Kathleen Simpson Taylor: For the full fiscal year, our revenues increased 14%, to 9.32 billion from 8.16 billion in the prior fiscal year. Excluding a 1.2 billion increase in forward sales, our revenues increased by 2.6 million, driven primarily by an increase in silver ounces sold and higher average selling prices of gold partially offset by a decrease in gold ounces sold and lower average selling prices of silver. The DTC segment contributed 21% and 26% of the consolidated revenue in fiscal year 2023 and 2022 respectively.

Speaker 2: Our strategic focus remains on opportunities that will align with our business model and will create synergies with AMARK's integrated platform, including our reliable access to supply and successful logistics footprint, along with strong customer relations. We will continue to invest in our minting and logistics operations to further increase capacity and enhance our operations.

Our strategic focus remains on opportunities that will align with our business model and will create synergies with a march integrated platform, including a reliable access to supply and successful logistics footprint, along with strong customer relations. We will continue to invest in our minting and logistics operations to further increase.

<unk> capacity and enhance our operations.

Speaker 2: We remain optimistic that our diversified and proven business model will allow us to sustain profitability and realize growth over the long term. That concludes my prepared remarks. operator

We remain optimistic that our diversified and proven business model will allow us to sustain profitability and realized growth over the long term that concludes my prepared remarks operator.

Thank you at this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up your hands.

Speaker 1: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press start to if you would like to remove your question from the

Kathleen Simpson Taylor: Revenue contributed by J.M.B., represented 19% of the consolidated revenues for fiscal year 2023 compared to 24% in the prior year. Gross profit for fiscal Q4 2023 increased 16% to 78.6 million or 2.49% of revenue from 67.8 million or 3.24% of revenue in Q4 of last year. The increase in gross profit was due to higher gross profits earned from the wholesale sales and ancillary services and direct to consumer segments. Gross profit contributed by the DTC segment represented 60% of the consolidated gross profit in fiscal Q4 2023 compared to 57% in the same year ago period.

Speaker 1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please. W-

Before pressing the star keys, one moment, please while we poll for questions.

Speaker 1: Now our first question comes from Thomas Forte with DA Davidson.

Now our first question comes from Thomas Forte with D. A Davidson.

Thomas Please proceed.

Speaker 6: Great, thanks. Greg and team congrats in the quarter and year both were amazing. So two questions on the one at a time. Greg, I consider Amark one of the most well-run companies I follow. You saw and everyone did a fantastic job. You had a management change recently at Jambullion with Robert replacing Michael. How should investors think about that change?

Great. Thanks, Greg and team congrats on the quarter. Neither of those were amazing. So two questions I'll go one at a time or Greg I consider a mark one of the most well run companies I follow you saw and everyone did a fantastic job you had a management change recently of gymboree and with Robert replacing Michael how should investors think about that change.

Well I think it is.

Speaker 2: Well, I think it's a positive. Rob has proven over the last 10 plus years that he's been involved with Jam Bullion, that he has a grasp of all parts of the company. He's done a great job, and he's...

Kathleen Simpson Taylor: Gross profit contributed by J.M.B., represented 49% of the consolidated gross profit in fiscal Q4 2023 compared to 46% in Q4 of last year. For the full fiscal year, gross profit increased 13% to 294.7 million or 3.16% of revenue from 261.8 million or 3.21% of revenue in the prior fiscal year. Excluding a 1.2 billion increase in forward sales which have a negligible impact to gross profit, the gross profit percentage increased to 4.27% from 3.79% in the prior fiscal year.

It's a positive Rob has proven over the last 10 plus years that he's been involved with jam volume that he.

Has a grasp of all parts of the company.

He has done a great job.

And you know he is.

In my mind, he's the right person going forward.

Speaker 2: In my mind, he's the right person going forward. Michael is still a tremendous asset to the company. He's on the board. He and I still consult weekly. And his efforts and his focus, where his expertise is, I feel like we're going to continue to have the benefit of his abilities.

Michael.

Still a tremendous asset to the company. He is on the board.

He and I still consult weekly and his his efforts and his focus where his expertise as I I feel like we're going to continue to you know to <unk>.

That's the benefit of his.

His abilities.

Speaker 2: Rob has been running the digital marketing and the client acquisition part of Jambullion for a while. And I believe that Rob is the right person for the job.

Rob is has been running the digital marketing and the client acquisition part of Jam bullion for awhile.

Kathleen Simpson Taylor: The increase in gross profit was due to higher gross profits earned from the wholesale sales and ancillary services and DTC segments. Gross profit contributed by the DTC segment represented 57% of the consolidated gross profit in fiscal 2023 compared to 56% in the prior fiscal year. J&B contributed 49% to the consolidated gross profit for fiscal 2023 compared with 46% in the prior year. SG&A expenses for fiscal Q4 2023 increased 10% to 22.8 million from 20.7 million in Q4 of last year.

And I believe that you know Rob is the right person for the right person for the job.

Speaker 2: Michael's still a part of Amark and still a part of J.M. Bullion. So I think it's a positive and obviously...

Michael is still a part of a mark and it's still a part of jam volume. So I think it's a positive.

Obviously.

You know the move was something that I felt was the right move and.

Speaker 2: The move was something that I felt was the right move, and I'm very confident in the decision.

I'm very confident in the decision.

Great and then for my second question you announced another one time special dividend can you give your current thoughts on capital allocation, including dividends, both regular quarterly and onetime strategic M&A and investing back in the business.

Speaker 6: Great, and then for my 2nd question, you announced another 1 time special dividend. Can you give your current thoughts on capital allocation? Including dividends, both regular quarterly and 1 time strategic and investing back in the business.

Sure.

Speaker 2: Sure, you know, obviously everybody can see we had a very strong fourth quarter and an even better full year, which is one of the main drivers. And when we look at capital allocation and what we, you know, where we put the money and what we do with it, the performance, as we've talked about before, certainly justified the special dividend.

Everybody can see we had a very strong fourth quarter.

Kathleen Simpson Taylor: The increase was primarily due to an increase in compensation expense, including performance based accruals of 1.3 million, higher advertising costs of 1.1 million, higher information technology costs of 0.9 million, and higher consulting and professional fees of 0.4 million, partially offset by lower insurance costs of 2.1 million. For the full fiscal year, SG&A expenses increased 11% to 85.3 million from 76.6 million in fiscal year 2022. The increase was primarily due to an increase in compensation expense, including performance based accruals of 6.4 million, higher advertising costs of 3.5 million, and increase in information technology costs of 1.7 million, partially offset by a decrease in insurance costs of 1.7 million, and lower consulting and professional fees of 2 million.

And even better full year.

Which is one of the main drivers and when we look at capital allocation and what we.

Where we put some money in what we do with it.

The performance.

Formats, as we've talked about before.

Certainly justified.

A special dividend.

Speaker 2: I will say that we are committed to the regular dividend as well as always keeping

I will say that.

We were.

We are committed to the regular dividend as well as always keeping.

Speaker 2: you know, in mind how the next three to six months looks as it relates to acquisitions, inventory opportunities, and other factors that we look at. I would say that we're comfortable and optimistic that our

In mind, how the next three to six months looks as it relates to acquisitions inventory opportunities.

Other factors that we look at.

I would say that.

Were comfortable and optimistic that our.

Speaker 2: pipeline for acquisitions right now is very good. There's a couple of things we're looking at, but the strength of last year and the strength of the quarter, allowed us to continue and...

Pipeline for acquisitions right now.

<unk> is very good.

And there's a couple of things we're looking at.

The strength of last year, and the strength of the quarter.

Kathleen Simpson Taylor: Depreciation and amortization expense for fiscal Q4 2023 decreased 15% to 2.7 million from 3.2 million in Q4 of last year. The decrease was primarily due to a decrease in amortization of acquired intangibles related to JMB. For the full fiscal year, depreciation and amortization expense decreased 54% to 12.5 million from 27.3 million in the prior year. The decrease was primarily due to a 14.9 million dollar decrease in amortization of acquired intangibles related to JMB.

Allowed us to to continue and end.

And have the special dividend again this year.

Speaker 2: and have the special dividend again this year. As we've said before, as I've said before, I look to where we think we can get the best return. If we think we have excess capital that we can't put to use, we'll return it to the shareholders. And I think that.

As we've said before as Ive said before.

I I look to where we think we can get the best return.

We think we have excess capital that we can't put to use we'll return it to the shareholders.

And I think that you know.

Continuing with the same special dividend that we had last year was indicative of the year's performance and I feel like right now.

Speaker 2: Continuing with the same special dividend that we had last year was indicative of the year's performance. And I feel like right now, our capital allocations are exactly where I want them to be and I think we are in a great position.

Our capital allocations are exactly where I want them to be and I think we are in a great position.

Kathleen Simpson Taylor: Interest income increased 7% to 6.1 million from 5.7 million in Q4 of last year. The increase in interest income was primarily due to higher finance product income from our wholesale sales and ancillary services segment, which was partially offset by a decrease in interest income earned by our secured lending segment. For the full fiscal year, interest income increased 2% to 22.2 million from 21.8 million in fiscal year 2022. The increase was primarily due to higher finance product income from our wholesale sales and ancillary services segment, partially offset by a decrease in interest income earned by our secured lending segment.

Speaker 2: going forward into the new fiscal year that this should be a fairly active year for us in new opportunities.

Going forward into the new fiscal year that this should be a fairly active year for us.

In in new opportunities.

Thank you Greg.

The next question comes from Lucas pipes with B Riley. Please proceed.

Speaker 1: The next question comes from Lucas Pipes with B Riley. Please proceed.

Thank you very much operator, I would like to add my congratulations on a very strong quarter well done.

Speaker 7: Thank you very much operator. I would like to add my congratulations on a very strong quarter. Well done.

Hum.

Speaker 7: Greg, I wanted to touch on your comments in the prepared remarks that the market softened a bit here during your fiscal first quarter. Could you elaborate kind of what changed in your opinion? Is it seasonal? Is it a summer lull? How did you divide the market today into a little bit more color versus where you ended up?

Greg.

Wanted to touch on Europe.

Your comments in the prepared remarks that the market.

Soften a bit here during your fiscal first quarter could.

Could you.

Elaborate kind of what what changed in your opinion is it is it seasonal or is it a summer lull Uh huh.

Kathleen Simpson Taylor: Interest expense for fiscal Q4 2023 increased 57% to 8.9 million from 5.7 million in Q4 of last year. The increase in interest expense was primarily driven by a $2.4 million increase associated with our trading credit facilities, primarily due to an increase in interest rates, and notes payable, including amortization of debt issuance costs, in addition, a 0.8 million increase related to $2.2 million increase was primarily driven by $7.2 million associated with our trading credit facility, primarily due to an interest rate increase, and notes payable, including amortization of debt issuance costs, 2.6 million related to product financing arrangements, and 0.6 million in interest associated with liabilities on borrowed metals, and this was partially offset by a decrease of 0.9 million of loan servicing fees.

The market today in a little bit more color versus where you ended the year comparable.

Yeah, I mean, I think we indicated a little bit on our last call that.

Speaker 5: Yeah, I mean, I think we indicated a little bit on our last call that the quarter RQ4 that just that we're reporting on here had a very strong April and May.

The quarter or Q4 that just that we're reporting on here had a very strong.

April and May.

Speaker 5: We carried it.

We carried it carried at a.

Really big number in that period with a good portion of the success and the profits coming in April and May.

Speaker 2: really big number in that period with a good portion of the success and the profits coming in April and May. June did start to slow down a little bit and I would say July in general had a number of things that I guess I would call you know light headwinds.

June did did start to slow down a little bit and I would say.

July in general had a number of things that I guess I would call you know light headwinds.

Speaker 2: We had, as you pointed out, July is usually our slowest month, so we had some seasonality. I think that the...

We had as you pointed out July is usually our slowest months. So we had some seasonality.

I think that the.

Speaker 2: risk off atmosphere in the overall market. In July , you saw a complete change in sentiment as it relates to what's going on in the global equity market. And I think that risk off, as we have said in the past, does cause a bit of a slowdown on the demand side.

Risks off atmosphere in the overall market in July you saw.

A complete change in sentiment as it relates to.

Whats going on in the in the global equity markets and I think that risk off as we have said in the past you know it does cause a bit of a slowdown on the demand side.

Kathleen Simpson Taylor: Earnings from equity method investments in Q4 2023 increased 105 percent to 5.3 million from 2.6 million in the same year ago quarter. The increase reflects our new investments made during the year, as well as the higher percentage ownership in our existing equity method investments in comparison to the prior fiscal year. For the full fiscal year earnings from equity method investments increased 82 percent to 12.6 million from 6.9 million in fiscal year 2022.

Speaker 2: At the same time, we saw a bit more supply and we had a bit more product coming into the marketplace. A lot of that we created ourselves. We have a bit more capacity right now.

At the same time, we saw a bit more supply and we we we had a bit more product coming into the marketplace a lot of that and we we created ourselves we have a bit more capacity right now.

Speaker 2: So I think the combination of those things, particularly the last couple weeks of June and throughout July ,

So I think the combination of those things, particularly the last couple of weeks of June and throughout July.

Speaker 2: uh, you know, caused, caused some, what I call premium compression. Uh, and as a lot of people that follow our business knows, uh, if they look around, you know, silver Eagles in particular are, are cheaper today than they were in may or in April as it relates to premium. So you you've seen, like I said, a bit, a bit of compression there. Uh, and that can trickle down a little bit into our proprietary products and, and some of the other products that we sell.

Uh huh.

Caused caused some what I call premium compression.

Kathleen Simpson Taylor: The increase of 5.7 million was primarily due to the additional 40 percent ownership interest in silver gold bull, which was acquired in June 2022, as well as earnings from our other equity method investments. Net income attributable to the company for the fourth quarter of fiscal 2023 totalled 41.8 million or $1.71 per diluted share. This compares to net income attributable to the company of $37.3 million or $1.52 per diluted share in Q4 of last year.

And as a lot of people that follow our business knows if they look around.

Silver Eagles in particular are are cheaper today than they were in may or in April as it relates to premium so you've seen like I said a bit of compression there and that can trickle down a little bit into our proprietary products and some of the other products that we sell.

Speaker 2: As I said in the prepared remarks, we have seen

As I said in the prepared remarks, we have seen.

Speaker 2: some improvement, which is good in August . I think it coincides a bit with

Some improvement.

Which which is good in August I think it coincides a bit with a change in sentiment in the overall market I note that on August 1st It just felt completely different in the equities markets than it did in July and I think we're seeing.

Kathleen Simpson Taylor: For the full fiscal year net income attributable to the company totalled 156.4 million or $6.34 per diluted share. This compares to net income attributable to the company of $132.5 million or $5.45 per diluted share in the prior fiscal year. Adjusted net income before provision for income taxes, a non-gap financial performance measure, which excludes acquisition expenses, amortization and depreciation for Q4 fiscal 2023 totalled 59.1 million and increase of 17 percent compared to 50.6 million in the same year ago quarter.

Speaker 2: a change in sentiment in the overall market. I note that on August 1st, it just felt completely different in the equities markets than it did in July . And I think we're seeing some customer response to that. In particular, the last couple weeks of August , we've seen.

Some some customer response to that in particular in the last couple of weeks of August we have seen.

A significant increase in demand premiums still are fairly low.

Speaker 2: But it doesn't take a lot for us on the demand side to really...

But it doesn't take a lot for us on the demand side to really.

<unk>.

Speaker 2: take care of any excess inventory we may have. So not surprising to me after such a strong April and May that we would hit a little bit of a slowdown in June and July . But like I said, I think we're still very happy with the performance and I think the overall business of AMART in total is operating as I would expect it to in this environment.

Take care of any excess inventory, we may have so.

Not surprising to me after such a strong April and May that we would hit a little bit of a slowdown in June and July.

Kathleen Simpson Taylor: Adjusted net income before provision for income taxes for fiscal 2023 totalled 216 million and increase of 11 percent compared to $1.95 million in the prior fiscal year. EBITDA, a non-gap liquidity measure for Q4 fiscal 2023 totalled 61.8 million, a 23 percent increase compared to 50.3 million in Q4 of fiscal 2022. Ibedo for Fiscal 2023, totaled $225 million, a 16% increase compared to $193.9 million in the prior fiscal year. Turning to our balance sheet, at fiscal year end we had $39.3 million of cash compared to $37.8 million at the end of fiscal year 2022.

But like I said I think.

We're still very happy with the performance and I think the low the overall business of a mark in total is operating as I would expect it to in this environment. So.

So hopefully that answers the question.

Speaker 7: Hopefully that answers the question. Very, very helpful. Thank you for that. And what I'm hearing is that premiums may be somewhat weaker, but volumes are stronger. Is that fair to say? And if so, is there any way to put some numbers?

Very very helpful. Thank you for that.

And what I'm hearing is that premiums maybe a somewhat weaker but volumes are stronger is that is that.

Fair to say and if so.

Any way to put some numbers around that.

Speaker 5: Again, that's a specific question that it's a challenge to answer without a bit more context.

Yeah.

Again, that's a specific question that it's a challenge to answer without a bit more context.

Speaker 5: We have been fortunate enough over the last 60 days to sell a tremendous amount of ounces in 100 ounce silver bars that we produce at Silver Town. That demand has been Very good and the premiums have have maintained. I think the the one area that

We have.

<unk> been fortunate enough over the last 60 days to sell a tremendous amount of ounces in 100 ounce silver bars that we produce at silver town that that demand has been.

Kathleen Simpson Taylor: Our tangible net worth at the end of the fiscal year was $436.8 million, up from $321.6 million at the end of the prior fiscal year. A-Mark's Board of Directors has continued to maintain the company's regular quarterly cash dividend program of 20 cents per common share. The most recent quarterly cash dividend was paid in July. The Board of Directors has also declared the next regular quarterly cash dividend, which is payable on October 24th, 2023, to stockholders of record as of October 10th, 2023. In addition, the Board of Directors had declared a non-recurring special cash dividend of $1 per common share, which will be paid on September 26th, 2023, to stockholders of record as of September 12th.

Very good and the premiums have have maintained I think the the one area that.

Speaker 2: is out there, you can identify the information at the public on the U.S. Mint's website. This United States Mint in July has been able to produce a significantly larger amount of silver eagles that it had in April and May. So you have had a little combination of a drop in demand, but you've had a little bit of extra supply on silver eagles. Now we have been very active in the...

Is out there you can you can identify the information its public on the U S. Mint's website is the United States Mint in July has been able to produce.

A few are.

Significantly larger amount of silver Eagles than it had in April and May. So you have had a little combination of.

A drop in demand, but you've had a little bit of extra supply on silver Eagles now we have been very active in the last couple of weeks.

Speaker 2: two weeks in particular that we have

Just two weeks.

In particular that we have been testing the market on.

Speaker 2: been testing the market, you know, on a number of products and we've been testing the premiums and we have lowered a few premiums that

A number of products and we've been testing the premiums and we have lowered a few premiums is that.

Kathleen Simpson Taylor: That completes my financial summary.

Thor Gjerdrum: Now I will turn the call over to Thor, who will provide an update on our key operating metrics. Thor? Thank you, Kathleen. Looking at our key operating metrics for the fiscal fourth quarter and full year 2023. We sold 814,000 ounces of gold in Q4 fiscal 2023, which was up 27% from Q4 of last year, and up 24% from the prior quarter. For the full fiscal year, we sold 2.7 million ounces of gold, which was relatively unchanged for fiscal 2022.

Speaker 2: you know, with the intention of just gauging where the demand is. And I will say that over the last two weeks, we've seen very positive results from the lower, slightly lower prices, both with ounces sold, as well as with new customer acquisitions.

With the intention of just gauging, where the demand is and I will say that over the last two weeks, we've seen very positive results from the lower slightly lower prices, both with ounces sold as well as with new customer acquisitions.

Speaker 2: that those lower prices have driven a significant amount of new customers to our DTC platform.

That that those lower prices have driven.

Significant amount of new customers to our DTC platforms. So.

Speaker 2: So, all in all, it's a little bit of a balance, but the information and data that we're seeing is very positive. I mean, in what is theoretically a slightly slower demand environment for us to pick up new customers the way that we have been, at least in the two weeks of August as we've been testing a little bit, is very good news for us. Very good.

All in all it's a little bit of a balance but I.

The information and data that we're seeing.

Thor Gjerdrum: Sorry, one correction. I said 814,000 ounces of gold. That was silver. 814,000 ounces of silver. We sold 45.3 million ounces of silver in Q4 fiscal 2023, which was up 20% from Q4 of last year, and up 23% from the prior quarter. For the full fiscal year, we sold 156.2 million ounces of silver, which was up 18% from fiscal 2022. The number of new customers in the DTC segment, which is defined as the number of customers that have registered or set up a new account or made a purchase for the first time during the period, was 90,400 in Q4 fiscal 2023, which was up 85% from Q4 of last year, and up 40% from the prior quarter.

It is very positive I mean.

In a in what is theoretically a slightly slower demand environment for us to pick up new customers. The way that we have been at.

At least in the two weeks of August as we've been testing a little bit you know is very good news for us.

Good to hear.

Okay.

Question.

Ah you mentioned that the.

Speaker 7: You mentioned that the plan of acquisition looks very strong and I wondered, could you remind us where you'd like to spend your energies on the M&A side? Is it still domestic, internationally? How do you identify your Luck bars with a potential for R&D?

The planned acquisition looks very strong and I wondered could you remind us where we're where you'd like to spend your energies on the M&A side is it is it still domestic internationally is it on an in vertical integration a lot Med for example, I think you have to update us.

Thor Gjerdrum: Approximately 32% of the new customers in Q4 fiscal 2023 were attributable to the acquired customer list of bullion max in June 2023. For the full fiscal year, the number of new customers in the DTC segment, was 335,300, which was up 46% from the prior year. Approximately 31% of the new customers in fiscal 2023 were attributable to the acquired customer list of BGASC, and bullion max in October 22, and June 2023 respectively.

Speaker 7: on vertical integration. For example, like you have, you should update that on your prior words.

On on your priority list that.

That would be very helpful. Thank you.

Yeah.

Speaker 5: I think we've focused before on international expansion. That can be in the DTC segment or it can also be in our trading business, our wholesale trading business. And we have identified a few opportunities that we're looking at in these areas.

I think we've focused before on international expansion that can be in the DTC segment or it can also be in our trading business, our wholesale trading business and.

We have we have identified a few opportunities that we're looking at in these areas.

Thor Gjerdrum: The number of total customers in the DTC segment at the end of fiscal 2023 was approximately 2.3 million, which was a 70% increase from the prior year. The year of year increase until the customers was due to organic growth of our JNB customer base, as well as the acquired customer list of BGASC in bullion max in October 2022 and June 2023 respectively. The DTC segment, Average Order Value, which represents the average dollar value of products excluding accumulation program orders delivered to DTC segment customers during Q4 fiscal 2023, was $3,288, which was up 20% from Q4 last year, and up 34% from the prior quarter.

Speaker 5: I think that as it relates to the DTC segment and our domestic businesses where we have You know we have found some opportunities over the last six months on some smaller deals We're regularly looking for those

I think that.

As it relates to the DTC segment, and our domestic businesses, where we have.

We have found some opportunities over the last six months on some some smaller deals.

We're we're regularly looking for those I think it's also important to note that.

Speaker 5: I think it's also important to note that

Speaker 5: Towards the end of this year, as we've disclosed in our ownership interest in Silver Gold Bull out of Calgary, Canada, we do have an option window that opens in December that is contractual and allows us to increase our stake with them if we choose to. So that would be, you know, if we decide to do that, there's no assurances we will or there's no...

Towards the end of this year as we've disclosed in our ownership interest in silver gold Bull out of Calgary, Canada. We do have an option window that opens in December that is contractual and allows us to increase our stake with them. If we if we choose to so that would be.

If we did if we decide to do that there's there's no assurances we will or there is no.

Thor Gjerdrum: For the full fiscal year, our DTC average order value was $2,600, which is up 3% from fiscal 2022. For the fiscal fourth quarter, our inventory turnover ratio was 3.2, which was a 90% increase for 2.7 in Q4 last year, and a 33% increase from 2.4 in the prior quarter. For the full fiscal year, our inventory turnover ratio was 10.5, which is down 20% from the same year ago period. Finally, the number of secured loans at the end of June totaled $882, a decrease of 8% from March 31, 2023, and a decrease of 61% from June 30, 2022, the dollar value of our loan portfolio at the end of June 2023, totaled $100.6 million, which is up 4% from the end of March, but down 20% from June 30, 2022. I apologize, one correction on my outstatements. We sold 814,000 ounces of gold in Q4 fiscal 2023, and we sold 2.7 million ounces of silver for the full fiscal year.

Speaker 5: You know, I'm not defining the timing of that. I'm just noting that it's part of the agreement that we have with them.

I'm not defining the timing of that I'm, just just noting that it is part of the agreement that we have with them.

Speaker 5: that could potentially affect our international business a bit more. So, but I think we have a nice

That could potentially affect our international business a bit more so but.

But I I think we have a nice a nice grew.

Speaker 2: group of things we're looking at right now and I think that you know what I really wanted to point out was even when we are balancing these things you know we still felt very comfortable that you know the special dividend was was good for the shareholders and as we've said before we want to reward the shareholders when we have a good

Group of things, we're looking at right now and I think that you know what I want.

I really wanted to point out was even when we are balancing these things we still felt very comfortable that the special dividend was was good for the shareholders and as we've said before we want to reward the shareholders. When we have a good year.

Okay.

Speaker 7: helpful. Thanks for the color and continuing.

Yeah. Thanks, Thanks for all the color and amtech.

Once again, if you have a question or comment please indicate so by pressing star one on your Touchtone phone. The next question comes from Greg <unk> with Northland Securities. Please proceed Gregg.

Speaker 1: Once again, if you have a question or a comment, please indicate so by pressing star 1 on your touch tone phone. The next question comes from Greg Gibbous with Northland Securities. Please proceed.

Speaker 8: Great, good afternoon Greg Thorkathleen. You know, congrats on the results, great to see. I wanted to follow up on your comments regarding continued investment in your minting operations. Just wondering if you can elaborate on that given you did expand your minting capabilities considerably in fiscal 23. You know, where do you intend on maybe expanding the further?

Great Good afternoon, Greg door Kathleen.

Congrats on the results great to see.

Thor Gjerdrum: That concludes my further remarks.

I wanted to follow up on your comments regarding continued investment in your minting operations. Just wondering if you can elaborate on that given you you did expand your minting capabilities considerably in fiscal 'twenty, three where do you intend on maybe expanding them further.

Greg Roberts: I will now turn over to Greg for closing remarks. Thank you, Thorne Kathleen. Looking ahead to fiscal 24, we've seen a bit of premium compression since we commenced our new fiscal year with the headwinds continuing from June into July. August has been a bit more active, and we are optimistic that this will continue into September. We continue to evaluate opportunities to further expand our geographic presence and market reach to create shareholder value.

Speaker 2: Well, a lot of it is, you know, equipment and equipment that.

Well a lot of it is you know equipment and <unk>.

And equipment that we can use to make products that we aren't we haven't made in the past so I believe.

Speaker 5: used to make products that we haven't made in the past. So I believe, you know, we have expanded at Silvertown. We were very fortunate in this quarter to get online on another new machine that is really, really right now, turning out 100-ounce silver bars. It's again, it's what we call a pizza oven. And it is...

We have expanded at silver town, we were very fortunate in this quarter.

Greg Roberts: Our strategic focus remains on opportunities that will align with our business model and will create synergies with A. Mark's integrated platform, including our reliable access to supply and successful logistics footprint, along with strong customer relations. We will continue to invest in our minting and logistics operations to further increase capacity and enhance our operations. We remain optimistic that our diversified and proven business model will allow us to sustain profitability and realize growth over the long term.

To get online another new machine that is really really right now.

Turning out 100 ounce silver bars, it's it's again, it's what we call a pizza oven.

And it is perfect for us at this time, we were able to pick up.

Speaker 2: perfect for us at this time. We were able to pick up a.

A machine that had been.

Ordered and on and being built for somebody that had been in process for another competitor.

Speaker 2: ordered and on and being built for somebody that had been in process for another competitor of Amarks for about 18 months and that that competitor decided to pass on it and we were able to pick it up and and it's a testament to our Silvertown Min people they were able to add on a new structure and put this new machine in the structure and get it up online producing

Greg Roberts: That concludes my prepared remarks, operator. Thank you.

Competitor of a marks for about 18 months and that that competitor decided to pass on it and we were able to pick it up and it's a testament to our silver Taubman people they were able to add on.

John: At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Our new structure.

And put this new machine in the structure and get it up online and producing.

Speaker 2: 100-ounce silver bars in about 120 days.

100 ounce silver bars in about 120 days.

Speaker 2: from the time that we ordered it or paid for it, and that is a very quick turnaround and that has significantly increased, you know, our ability to turn out product there. On the Sunshine Mint side, they continue to expand. They've added a second melt line that's up and running right now that they invested in. They've invested in some

From the time that we ordered it or paid for it and that is a very quick turnaround in that has has significantly increased.

Our ability to turn out product there.

Thomas Forte: Now, our first question comes from Thomas Forte with DA Davidson. Thomas, please proceed. Great. Thanks. Greg and team, congrats on the quarter and year. Both were amazing. For two questions, I'll go one at a time. Greg, I consider Amark one of the most well-run companies I follow. You saw and everyone did a fantastic job. You had a management change recently. Well, I think it's a positive. Rob has proven over the last 10-plus years that he's been involved with Jam Bullion, that he has a grasp of all parts of the company.

On the silver on the Sunshine men side, they continue to expand they've they've added a second melt line, that's up and running right now that they invested in.

They've invested in.

Some.

Speaker 5: Some automated, robotic, striking machines, which is...

Some automated.

Robotic a striking machines, which is is from what I see when I look at them as just an incredible New addition to the Sunshine Mint line of production machines. So it's.

Speaker 5: what I see when I look at them is just an incredible new addition to the sunshine mint line of production machines. So, you know, it's not just capacity, although we like to add capacity, it's making sure we add capacity in the right product that we need as well as trying to stay ahead of the curve on machines and production asset that we think we're going to need a year or two from now.

It's not just capacity, although we we like to add capacity its making sure we add capacity in the right product that we need as well as trying to stay ahead of the curve on.

Thomas Forte: He's done a great job, and in my mind, he's the right person going forward. Michael is still a tremendous asset to the company. He's on the board. He and I still consult weekly, and his efforts and his focus where his expertise is, I feel like we're going to continue to have the benefit of his abilities. Rob has been running the digital marketing and the client acquisition part of Jam Bullion for a while, and I believe that Rob is the right person for the job, and Michael is still a part of A-Mark and is still a part of Jam Bullion.

On machines and production assets that we think we're going to need a year or two from now.

Perfect very helpful.

Speaker 8: And you know, relating to your comments, I think you said that you didn't see a little bit more activity in August relative to maybe the low point in July . And I'm wondering if you could comment on maybe what the drivers are there? Is it purely just because, you know, July is maybe the seasonally slowest? You know, what kind of drove maybe a recovery?

And relating to your comments I think you said that you did see a little bit more activity than in August relative to maybe the low point in July.

Wondering if you could comment on maybe what the drivers are there is it purely just because July is maybe the seasonally slowest what kind of drove maybe a recovery.

Speaker 8: And I guess along those lines, if there are any dynamics for the foreseeable future that maybe new product launches or releases that you expect to impact demand or premium that are worth mentioning.

And I guess, along those lines if there are any dynamics for the foreseeable future.

You know, maybe new product launches or releases that you expect to impact demand or premium that.

Greg Roberts: So I think it's a positive, and obviously the move was something that I felt was the right move, and I'm very confident in the decision. Great, and that's my second question. You've asked another one-time special dividend. Can you give your current thoughts on capital allocation, including dividends, most regular quarterly and one-time strategic M&A, and investing back in the business? Sure. Obviously everybody can see we had a very strong fourth quarter, and even better full year, which is one of the main drivers, and when we look at capital allocation and where we put the money and what we do with it, the performance, as we've talked about before, certainly justified the special dividend.

That are worth mentioning.

Okay.

Speaker 5: Yeah, I mean, I think it, as I mentioned before, I think it has a little bit to do with this, you know, what the U.S. meant and their ability to deliver a few more coins. Now, I'm not exactly sure whether their production numbers have changed all that much. I think they may have intentionally.

Yeah, I mean, I think as I mentioned before I think it has a little bit to do with this with the U S mint and and their ability to deliver a few more coins now I'm not exactly sure whether their production numbers.

Changed all that much I think they may have.

Pension Ali.

Speaker 5: held some coins back and decided to release some coins. But whenever you see a change in the supply.

Held some coins back in and decided to release some coins, but whenever you see a change in the in the supply demand dynamics as it relates to the U S men, it's gonna have some effects either very positive.

Speaker 5: Dynamics as it relates to the US men, it's going to have some effects, either very positive as

As kind of a follow on to the U S mint product or it can have a little bit of a negative as it relates to premiums if if silver Eagles, just become a bit more available and I think it's important to note that the silver Eagle continues worldwide and dominated in the U S to be the product of choice.

Speaker 5: follow on to the US Mint product or it can have a little bit of a negative as it relates to premiums if silver eagles just become a bit more available. And I think it's important to note that

Greg Roberts: I will say that we are committed to the regular dividend, as well as always keeping in mind how the next three to six months looks as it relates to acquisitions, inventory opportunities, and other factors that we look at. I would say that we're comfortable and optimistic that our pipeline for acquisitions right now is very good. There's a couple of things we're looking at, but the strength of last year and the strength of the quarter allowed us to continue and have the special dividend again this year.

Speaker 5: The Silver Eagle continues worldwide and dominated in the US to be the product of choice for one ounce silver.

For one ounce silver products and I think that drives a lot of.

Speaker 2: And I think that drives a lot of choice in what

Of choice in what products customers decide to buy if they can't get enough silver Eagles or if the silver Eagle premiums just become too high it's going to drive up the premiums on some of the other sovereigns and some of our our private mint products Vice versa, if the silver Eagle premiums.

Speaker 2: customers decide to buy. If they can't get enough Silver Eagles or if the Silver Eagle premiums just become too high, it's going to drive up the premiums on some of the other sovereigns and some of our private mint products. Vice versa, if the Silver Eagle premiums are lower, the Silver Eagle is a...

Our lower.

The silver Eagle is a.

Speaker 2: likely candidate for purchase because that's the most popular coin. So I think any change in those dynamics of the supply demand in silver eagles is going to have effect on the overall market for the reasons described. I will say that as I have mentioned in the last

Yeah.

A likely candidate for purchase because thats. The most popular coin. So I think any change in that in those dynamics of the supply demand in silver Eagles is gonna have effect on the overall market for the reasons described I will say that.

Greg Roberts: As we've said before, as I've said before, I look to where we think we can get the best return. If we think we have excess capital that we can't put to use, we'll return it to the shareholders, and I think that continuing with the same special dividend that we had last year was indicative of the year's performance. I feel like right now our capital allocations are exactly where I want them to be, and I think we are in a great position. You know, going forward into the new fiscal year that this should be a fairly active year for us, you know, in new opportunities.

As I have mentioned in the last few weeks, we've we've really been able to test the market specifically on silver Eagles, and we're very we have a very positive outlook as it relates to throughout the end of this year and our ability to maybe pick up or demand a little bit and.

Speaker 2: We've really been able to test the market specifically on Silver Eagles, and we have a very positive outlook as it relates to throughout the end of this year and our ability to maybe pick up our demand a little bit and take some of those coins that are on the market right now. So it's been good for us. And like I said, I think... your

And take some of those coins that are that are on the market right now so.

It's been it's been good for us and like I said I think.

Speaker 2: you know, the last couple of weeks of August , it's not a quarter, it's not a month, it's not a year, but I will say that we have...

The last couple of weeks of August it's not it's not a quarter, it's not a month, that's not a year, but I will say that.

We have.

Speaker 2: seemingly handled this, you know.

Seemingly handled.

Lucas Pipes: Thank you, Greg. The next question comes from Lucas Pipes with B.

This.

Change in some of the dynamics are very very well and I believe that we have continued to gain market share and I believe we are keeping our market share that we have so.

Speaker 5: very, very well and I believe that we have continued to gain market share and I believe we're keeping our market share that we have.

Greg Roberts: Riley, please proceed. Thank you very much, operator. I would like to add my congratulations on a very strong order welder. Greg, I wanted to touch on your comments and the prepared remarks of the market sauce in the bit here during the fiscal first quarter. Could you elaborate kind of what changed in your opinion? Is it seasonal? Is it the summer law? Yeah, I mean, I think we indicated a little bit on our last call that the quarter RQ4 that we're reporting on here had a very strong April and May.

Speaker 2: These are positives in my mind, the dynamics of how the market works.

These are positives in my mind, the dynamics of how the market works.

Speaker 5: I gave you a fairly general answer. There's a lot more specifics that can go into it, and that we could have a discussion for an hour on that. But I think...

I gave you a fair a fairly general answer Theres a lot more specifics that can go into it and in that we could have a discussion for an hour on that but I think.

Speaker 5: My response in general is what you need to hear.

My response in general.

Is what you need to hear.

Speaker 8: Yep, great. Very helpful, Greg. Thanks for taking my questions.

Great very helpful. Greg Thanks for taking my questions.

Okay.

Once again, if there are any remaining questions. Please press star one. The next question comes from David Bastian with Kingdom Capital Advisors. Please proceed David.

Speaker 1: Once again, if there are any remaining questions, please press star one. The next question comes from David Bastion with Kingdom Capital Advisor.

Okay. Thanks for the question too.

Speaker 7: Thanks for the question. Two quick things. First, I'm curious to hear a little bit more on your thoughts around buybacks. Now you guys should use that authorization on batching February and March. I just, I'll hear your stock right now. You're trading around the 800 million market cat. You just posted about $225 million of EBITDA from this year. So you're trading a little bit under four times that.

Greg Roberts: We carried a really big number in that period with a good portion of the success and the profits coming in April and May. June did start to slow down a little bit and I would say July in general had a number of things that I guess I would call light headwinds. We had, as you pointed out, you know, July is usually our slowest month. So we had some seasonality. I think that the risk off atmosphere in the overall market in July, you saw, you know, a complete change in sentiment as it relates to, you know, what's going on in the global equity market.

Two quick things.

First I was curious to hear a little bit more on your thoughts around buybacks.

You guys, who use that authorization done back in February and March.

I just I look at your stock right now you're trading around the $800 million market cap.

You just posted about $225 million in EBITDA for this year, so you're trading a little bit under four times that so.

Speaker 7: So it seems like this environment, I only think you got a little softer, but the buybacks we've very creative to the valuation of the company. So it's here a little bit more. Instead of just capital allocation a little bit earlier, there's a little bit more about the decision to do a special here instead of putting some of that money towards buybacks, there's valuation.

It seems like in this environment I don't think we've gotten a little softer.

But the buyback should be very accretive to the valuation of the company.

I'm, just curious a little bit more of a steady.

Just capital allocation, a little bit earlier, but just a little bit more about the decision to do especially here instead of putting some of that money towards buybacks at this valuation.

Speaker 2: Yeah, I mean, I think it's a bit of a moving target. You know, the last buyback that we did, we were very clear on the range and the price that we bought the stock back at. Since that time, we have not seen the stock approach that level again. And I think that, you know, we're always open to...

Yeah, I mean, I think it's a bit of a moving target.

Greg Roberts: And I think that risk off, as we have said in the past, you know, does cause a bit of a slowdown on the demand side. At the same time, you know, we saw a bit more supply and we had a bit more product coming into the marketplace of a lot of that. We, we created ourselves. We, we have a bit more capacity right now. So I think the combination of those things, particularly the last couple of weeks of June and throughout July, you know, caused, caused some, what I call premium compression.

Last buyback that we did we were very clear on the range and the price that we bought the stock back at.

Since that time, we have not seen the stock approach that level again.

And I think that you know.

We're always open to.

Speaker 2: the changing capital allocation.

The changing capital.

Allocation equation.

Speaker 5: that we go through here from a management perspective, but I think that as it relates to the special dividend, you know, the

The equation that we go through here from a management perspective.

But I think that as it relates to the special dividend.

The.

Speaker 5: We have said before that when we have a good year, we believe we should reward with a special dividend as it relates to the buyback.

We have said before that when we have a good year. We we believe we should reward with the special dividend as it relates to the buyback.

Greg Roberts: And as a lot of people that follow our business knows if they look around, you know, silver eagles in particular are, are cheaper today than they were in May or in April as it relates to premium. So you, you've seen, like I said, a bit, a bit of compression there and that can trickle down a little bit into our proprietary products and some of the other products that we sell. I, as I said in the prepared remarks, we have seen some improvement, which, which is good in August.

Speaker 5: strategy and how we allocate to that. You know, it's going to depend on all the circumstances and the moving targets that I just discussed. It has a lot to do with where we are, as I said, in the M&A pipeline. And even though we look at a lot of deals, we don't close.

Strategy and how we allocate to that.

It's going to depend on all the circumstances and the moving targets that I just discussed.

It has a lot to do with where we are as I said in the M&A pipeline.

And even though we look at a lot of deals we don't close one of my.

Speaker 5: One of my big rules is never being a situation where an opportunity is there and we can't finance an opportunity efficiently and in all of the shareholders best interest. So I will, and historically I have, I will be a bit more conservative and a bit more careful on the capital allocations as it relates to buybacks and dividends.

Big rules is never be in a situation, where an opportunity is there and we can finance an opportunity efficiently and in all of the shareholders' best interest. So I will and historically I have I will be a bit more conservative in a bit more careful on.

Greg Roberts: I think it coincides a bit with a change in sentiment in the overall market. I, I note that, you know, on August 1st, it just felt completely different in the equities markets than it did in July. And I think, you know, we're seeing some, some customer response to that in particular the last couple of weeks of August. We, we've seen, you know, a significant increase in demand premium still are, are fairly low, but it doesn't take a lot for us on the demand side to, to really, you know.

On the capital allocations as it relates to buybacks and dividends if I believe the horizon indicates that there's a better opportunity for our money.

Speaker 5: if I believe the horizon indicates that there's a better opportunity for our money.

Speaker 2: And, you know, that's just, that's kind of something that Thor and I and Kathleen, we discuss regularly here.

<unk>.

That's just that's kind of something that Thor and I and Kathleen we discuss regularly here but.

Speaker 2: But, you know, it can change quickly. You know, we can have three deals we're looking at that we think are great and we don't close any of them. Or we can have three deals we're looking at. And...

Greg Roberts: Take care of any excess inventory we may have. So not surprising to me after such a strong April and May that we would hit a little bit of a slowdown in June and July. But, like I said, I think we're still very happy with the performance and I think the overall business of A-Mark in total is operating as I would expect it to in this environment.

It can change quickly in.

We can have three deals were looking at that we think are great and we don't close any of them or we can have three deals were looking at and.

Speaker 5: We can get all the way down to the 20-yard line trying to close the deal and score a touchdown.

We can get all the way down to the 20 yard line trying to close the deal and score touchdown and.

Speaker 5: we may close all of them. So, I think it's...

We made may close all of them so.

I think it's it's a it's a little bit.

Week to week month to month, but but in this case, we had a long discussion about the special dividend at our board meeting two weeks ago.

Speaker 5: Week to week, month to month, but in this case, we had a long discussion about the special dividend at our board meeting two weeks ago. And we talked about everything I've just mentioned. And I felt really good where we came out of it. And if we believed in it.

Greg Roberts: So hopefully that answers the question. Very, very, very helpful. Thank you for that. And what I'm hearing is that premiums are maybe somewhat weaker but volumes are stronger. Is that fair to say and if so, is there any way to put some numbers around that? Again, that's a specific question. It's a challenge to answer without a bit more context. We have been fortunate enough over the last 60 days to sell a tremendous amount of ounces in 100 ounce silver bars that we produce at Silver Town.

We talked about everything I've, just mentioned and you know.

I felt really good where we came out of it and.

If we believe.

Greg Roberts: That demand has been very good and the premiums have maintained. I think the one area that is out there, you can identify the information at the public on the U.S. Mint's website. The United States Mint in July has been able to produce a significantly larger amount of silver eagles that it had in April and May. So you have had a little combination of a drop-in demand but you've had a little bit of extra supply on silver eagles.

Okay.

Hello.

You've been reconnected, Greg can you hear us Okay. Hello, I'm back. This is Greg we had a little disconnect.

Speaker 1: You've been reconnected, Greg. Can you hear us? Okay, hello. I'm back. This is Greg. We had a little disconnect.

Greg Roberts: Now we have been very active in the last couple of weeks, two weeks in particular, that we have been testing the market on a number of products and we've been testing the premiums and we have lowered a few premiums that with the intention of just gauging where the demand is and I will say that over the last two weeks we've seen very positive results from the lower slightly lower prices, both with ounces sold as well as with new customer acquisitions that those lower prices have driven a significant amount of new customers to our DTC platforms. So all in all it's a little bit of a balance but the information and data that we're seeing is very positive.

Speaker 7: Well, thank you for that. That was helpful. Okay.

Well. Thank you for that answer Greg that was helpful.

Hey.

Next question what.

Speaker 7: direct consumer gross margin and looks like it was down a little bit versus the third quarter. Even though volumes seem like they were up pretty healthily, can you talk about a little what we're driving at?

The direct to consumer gross margin it looks like it was down a little bit versus the third quarter.

Even though volumes seem like they were up pretty healthily can you talk about what was driving that.

Yes, I mean, I don't see a significant change in.

Speaker 2: I mean, I don't see a significant change in...

Speaker 2: in just the overall environment between the two quarters. I think we do go through periods where you'll see some slight change in the margin at the DTC side, just depending on what products we're trying to move out and what the mix of products is. One thing that can throw off the numbers a bit is we make less money on big gold bars or kilo bars or even gold one ounce coins from a pure dollar perspective than we do on silver.

In just the overall environment between the two quarters I think we do go through periods, where youll see some slight change in the margin at the DTC side, just depending on what products, we're trying to move out.

And what the mix of products as well.

One thing that can throw off the numbers a bit as we make less money on big gold bars, or kilo bars, or even gold one ounce coins from a from a pure dollar perspective than we do on silver. So it could be that we had a little bit higher mix of gold and silver. So it can show some anomalies just like if.

Greg Roberts: I mean, in what is theoretically a slightly slower demand environment for us to pick up new customers the way that we have been at least in the two weeks of August as we've been testing a little bit is very good news for us.

Speaker 5: So it could be that we had a little bit higher mix of gold and silver so it can show some anomalies. Just like if we...

If we if we sell a higher percentage of silver than gold, where we know we're going to we're going to have a little bit higher margin from a percentage standpoint. So I think those those things can change I don't think that between our Q3 and our Q4 I did not see a significant change in anything in the the overall <unk>.

Speaker 2: If we sell a higher percentage of silver than gold, we're going to have a little bit higher margin from a percentage standpoint.

Greg Roberts: I go to here, I'll add a question. You mentioned that the plant acquisition looks very strong and I wondered, could you remind us where you'd like to spend your energies on the M&A side? Is it still domestic internationally? Is it? on a vertical integration. I mean, for example, like you have to update that on your prior words, that would be very helpful. Thank you. Yeah. I think we've focused before on international expansion.

Speaker 5: So I think those things can change. I don't think that between RQ3 and RQ4,

Speaker 2: I did not see a significant change in anything in the overall environment as it relates to margin. And then obviously we've spent a good deal of time talking about the end of Q4 June , July , and August . And so you know what I think about that period. But there's a lot of things that can go in and we can get some noise as it relates to just quarter over quarter on the DTC side. Okay.

Environment as it relates to margin and then obviously we've spent a good deal of time talking about the end of Q4 at June July and August and so you you know what I think about that period, so, but there's a lot of things that can go in and we can get some noise as it relates to just quarter over quarter on the DTC.

C side.

Got it thank you so much.

Greg Roberts: That can be in the DTC segment, or it can also be in our trading business, our wholesale trading business. And, you know, we have we have identified a few opportunities that we're looking at in these areas. I think that as it relates to the DTC segment and our domestic businesses where we have, you know, we have found some opportunities over the last six months on some smaller deals. We're regularly looking for those.

Okay, we have new further questions in queue. At this time. This concludes our question and answer session I would now like to turn the call back over to Mr. Roberts for his closing remarks.

Speaker 1: Okay, we have no further questions in queue at this time. This concludes our question and answer session. I'd now like to turn the call back over to Mr. Roberts for his closing remarks.

Speaker 5: Thanks, John . Once again, just to thank you to all of our shareholders. We appreciate your support. Thank you for joining the call today and anybody that follows up and listens to the call later. Thank you for taking the time to hear about A-Mark and learn about A-Mark. I'd also like to thank our employees around the world for their dedication and commitment to A-Mark success.

Thanks, John.

Once again just to thank you to all of our shareholders. We appreciate your support thank you for joining the call today and anybody that follows up and listened to the call. Later. Thank you for taking the time to hear about a mark and learn about a mark I'd also like to thank our employees around the world for their dedication and commitment to <unk>.

Greg Roberts: I think it's also important to note that towards the end of this year, as we have disclosed in our ownership interest in silver, gold, bull out of Calgary, Canada, we do have an option window that opens in December that is contractual and allows us to increase our stake with them if we choose to. So that would be, you know, if we decide to do that, there's no assurance as we will, or there's no, you know, I'm not defining the timing of that.

Access are looking forward to talking to you again in a couple of months for an update on our Q1. Thank.

Speaker 2: looking forward to talking to you again in a couple of months for an update on our Q1.

Thank you very much.

Okay.

Speaker 1: We conclude today's call. I would like to provide a Mark's Safe Harbor statement that includes important cautions regarding forward looking statements made during.

We conclude today's call I would like to provide a Mark's safe Harbor statement that includes important cautions regarding forward looking statements made during this call.

Speaker 1: During today's call, there were forward-looking statements made regarding future events, statements that relate A-marks, future plans, objectives, expectations, performance, events, and the like. Are forward-looking statements.

During today's call. There were forward looking statements made regarding future events statements that relate a mark's future plans objectives expectations performance events and alike are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, and the Securities Exchange Act of 1934.

Greg Roberts: I'm just noting that it's part of the agreement that we have with them. You know, that could potentially affect our international business a bit more. But I think we have a nice group of things we're looking at right now. And I think that, you know, what I really wanted to point out was even when we are balancing these things, you know, we still felt very comfortable that, you know, the special dividend was good for the shareholders. And as we've said before, we want to reward the shareholders when we have a good year. I'm hopeful, but yeah, thanks for the color and impact.

Speaker 1: in the meeting of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1937.

Speaker 1: These include statements regarding expectations with respect to the dividend declarations, the amount or timing of any future dividends.

These include statements regarding expectations with respect to the dividend declarations, the amount or timing of any future dividends.

Speaker 1: your macroeconomic conditions and demand for precious metals products.

Future macroeconomic conditions and demand for precious metals products.

Speaker 1: and the company's ability to effectively respond to changing economic

And the company's ability to effectively respond to changing economic conditions.

Speaker 1: events, risk, and uncertainties individually or in the aggregate could cause actual results to differ materially from those expressed or implied in these...

Future events risks and uncertainties individually or in the aggregate could cause actual results to differ materially from those expressed or implied in these statements.

John: Thank you, Jessica. Once again, if you have a question or a comment, please indicate so by pressing star one on your touch tone phone.

Speaker 1: Factors that could cause actual results to differ include the following.

Factors that could cause actual results to differ include the following.

Speaker 1: Failure to execute the company's growth strategy, including the inability to identify suitable or available acquisition or investment opportunities.

The failure to execute the company's growth strategy, including the inability to identify suitable or available acquisition or investment opportunities.

Greg Gibas: The next question comes from Greg Gibbis with Northland Securities. Please proceed, Greg. Great.

Speaker 1: Greater than anticipated cost incurred to execute this strategy. Changes in the current international

Greater than anticipated costs incurred to execute this strategy.

Greg Roberts: Good afternoon, Greg. The work, Kathleen. You know, congrats on the results. Great to see. I wanted to follow up on your comments regarding continued investment in your minting operations. Just wondering if you can elaborate on that given you, you did expand your minting capabilities considerably in fiscal 23. You know, where do you intend on maybe expanding them further? Well, a lot of it is, you know, equipment and equipment that we can use to make products that we haven't made in the past.

Changes in the current international political climate.

Speaker 1: which has favorably contributed to demand and volatility in the precious metals market.

Which has favorably contributed to demand and volatility in the precious metals markets.

Speaker 1: potential adverse effects of the current problems in the national and global supply chain.

Potential adverse effects of the current problems in the national and global supply chains.

Speaker 1: increased competition for the company's higher margin services which could..

Increased competition for the company's higher margin services, which could depress pricing.

The failure of the company's business model to respond to changes in the market environment as anticipated.

Speaker 1: The failure of the company's business model to respond to changes in the market environment as anticipated, changes in consumer demand and preferences for precious metal products generally.

Changes in consumer demand and preferences for precious metal products generally potential.

Greg Roberts: So I believe, you know, we have expanded at Silvertown. We were very fortunate in this quarter to get online another new machine that is really, really right now turning out 100-ounce silver bars. It's again, it's what we call a pizza oven. And it is perfect for us at this time. We were able to pick up a machine that had been Ordered and being built for somebody that had been in process for another competitor of A-Marks for about 18 months, and that competitor decided to pass on it, and we were able to pick it up, and it's a testament to our Silver Town Mint people.

Speaker 1: potential negative effects that inflationary pressure may have on our business.

Potential negative effects that inflationary pressure may have on our business.

Greg Roberts: They were able to add on a new structure and put this new machine in the structure and get it up online, producing 100-ounce silver bars in about 120 days, from the time that we ordered it or paid for it, and that is a very quick turnaround, and that has significantly increased our ability to turn out product there. On the Sunshine Mint side, they continue to expand. They've added a second melt line that's up and running right now that they invested in.

Speaker 1: The inability of the company to expand the capacity that Silver Town Mint...

The inability of the company to expand capacity at Silverstone Mint the failure of our invest the companies to maintain or address the preferences of their customer bases.

Speaker 1: failure of our investee companies to maintain or address the preferences of their customer base

Speaker 1: general risks of doing business in the commodity markets and the strategic business economic financial, political and governmental risks and other risk factors described in the company's public filings with the securities and exchange commissions.

General risks of doing business in the commodity markets and the strategic business economic financial.

Political and governmental risks and other risk factors described in the company's public filings with the Securities and Exchange Commission.

Speaker 1: The company undertakes no obligation to publicly update or resize any forward looking

The company undertakes no obligation to publicly update or revise any forward looking statements.

Speaker 1: listeners are cautioned not to place undue reliance on these forward-looking

Listeners are cautioned not to place undue reliance on these forward looking statements finally, I would like to remind everyone that a recording of today's call will be available for replay via a link in the investors section of the company's website.

Speaker 1: Finally, I would like to remind everyone that a recording of today's call will be available for replay, via link in the Investors section of the company's website. Thank you for joining us today for A-Mark's-

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

You may now disconnect.

Greg Roberts: They've invested in some automated robotic striking machines, which is from what I see when I look at them, is just an incredible new addition to the Sunshine Mint line of production machines. It's not just capacity, although we like to add capacity, it's making sure we add capacity in the right product that we need, as well as trying to stay ahead of the curve on machines and production assets that we think we're going to need a year or two from now.

Greg Roberts: Perfect, very helpful. Relating to your comments, I think you said that you didn't see a little bit more activity in August relative to maybe the low point in July. I'm wondering if you could comment on maybe what the drivers are there. Is it purely just because July is maybe the seasonally slowest? What kind of drove maybe your recovery? I guess along those lines, if there are any dynamic for the foreseeable future that may be new product launches or releases that you expect to impact demand or premium that are worth mentioning.

Greg Roberts: Yeah, as I mentioned before, I think it has a little bit to do with the US Mint and their ability to deliver a few more coins. Now, I'm not exactly sure whether their production numbers have changed all that much. I think they may have intentionally held some coins back and decided to release some coins. But whenever you see a change in the supply demand dynamics as it relates to the US Mint, it's going to have some effects, either very positive as kind of a follow-on to the US Mint product, or it can have a little bit of a negative as it relates to premiums if silver eagles just become a bit more available.

Greg Roberts: And I think it's important to note that the silver eagle continues worldwide and dominating in the US to be the product of choice for one ounce silver products. And I think that drives a lot of choice in what products customers decide to buy. If they can't get enough silver eagles or if the silver eagle premiums just become too high, it's going to drive up the premiums on some of the other sovereigns and some of our private mint products.

Greg Roberts: Vice versa, if the silver eagle premiums are lower, the silver eagle is a likely candidate for purchase because that's the most popular coin. So I think any change in those dynamics of the supply demand in silver eagles is going to have effect on the overall market for the reasons described. I will say that as I have mentioned in the last few weeks, we've really been able to test the market specifically on silver eagles and we're very, we have a very positive outlook as it relates to throughout the end of this year and our ability to maybe pick up our demand a little bit and take some of those coins that are that are on the market right now.

Greg Roberts: So it's been good for us. And like I said, I think the last couple of weeks of August, it's not a quarter, it's not a month, it's not a year, but I will say that we have seemingly handled this You know, change in some of the dynamics, very, very well, and I believe that we have continued to gain market share, and I believe we're, you know, keeping our market share that we have.

Greg Roberts: So these are positives in my mind. The dynamics of how the market works, I gave you a fairly general answer, there's a lot more specifics that can go into it, and that, you know, we could have a discussion for an hour on that, but I think my response in general is what you need to hear.

Greg Gibas: Yep, great, very helpful, Greg, thanks for taking my questions.

John: Once again, if there are any remaining questions, please press star one.

David Bastion: The next question comes from David Bastion with Kingdom Capital Advisors, please proceed, David. Thanks for the question. Two quick things, first, I'm curious to hear a little bit more on your thoughts around buybacks. Now you guys have used that authorization sum back in February and March. I just feel like you're stock right now, you know, you're trading around the 800 million in the market cap, you just posted about $225 million of EBITF in this year. So you're trading a little bit under four times that. So it seems like this environment, I only think you got a little softer, but the buybacks will be very creative to the valuation of the company.

Greg Roberts: So it's curious a little bit more, just capital allocation a little bit earlier, there's a little bit more about the decision to do a special here instead of putting some of that money towards buybacks. That's the valuation. Yeah, I mean, I think it's a bit of a moving target, you know, the last buyback that we did, we were very clear on the range and the price that we bought the stock back at.

Greg Roberts: Since that time, we have not seen the stock approach that level again. And I think that, you know, we're always open to the changing capital allocation equation that we go through here from a management perspective, but I think that as it relates to the special dividend, you know, we have said before that when we have a good year, we believe we should reward with the special dividend as it relates to the buyback strategy and how we allocate to that, you know, it's going to depend on all the circumstances and the moving targets that I just discussed.

Greg Roberts: It has a lot to do with where we are, as I said, in the M&A pipeline and even though we look at a lot of deals, we don't close, one of my, you know, big rules is, you know, never be in a situation where an opportunity is there and we can't finance an opportunity efficiently and in all of the shareholders' best interest. So I will, you know, and historically I have, I will be a bit more conservative and a bit more careful on the, you know, the capital allocations as it relates to buybacks and dividends.

Greg Roberts: If I believe the horizon indicates that there's a better opportunity for our money and, you know, that's just, that's kind of something that Thor and I and Kathleen, we discuss regularly here, but, you know, it can change quickly. You know, we can have three deals we're looking at that we think are great and we don't close any of them or we can have three deals we're looking at and, you know, we can get all the way down to the 20 yard line trying to close the deal and score a touchdown and, and, you know, we may, may close all of them. So, you know, I think it's, it's a little bit.

Greg Roberts: Week to Week, Month to Month, but in this case, we had a long discussion about the special dividend at our board meeting two weeks ago, and we talked about everything I've just mentioned, and I felt really good where we came out of it, and if we believed[inaudible] Thanks, John. Once again, just to thank you to all of our shareholders. We appreciate your support. Thank you for joining the call today and anybody that, you know, follows up and listens to the call later.

Greg Roberts: Thank you for taking the time to hear about A-Mark and learn about A-Mark. I'd also like to thank our employees around the world for their dedication and commitment to A-Mark's success. Looking forward to talking to you again in a couple of months for an update on our Q1. Thank you very much.

John: We conclude today's call.

Unknown Executive: I would like to provide A-Mark's safe harbor statement that includes important cautions regarding forward-looking statements made during this call. During today's call, there were forward-looking statements made regarding future events, statements that relate A-Mark's future plans, objectives, expectations, performance, events, and the like are forward-looking statements within the meeting of the Private Security's Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These includes statements regarding expectations with respect to the dividend declarations, the amount or timing of any future dividends, future macroeconomic conditions, and demand for precious metals, products, and the company's ability to effectively respond to changing economic conditions.

Unknown Executive: Future events, risk and uncertainties, individually, or in the aggregate could cause actual results to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following, the failure to execute the company's growth strategy, including the inability to identify suitable or available acquisition or investment opportunities, greater than anticipated costs incurred to execute the strategy, changes in the current international political climate, which has favorably contributed to demand and volatility in the precious metals markets, potential adverse effects of the current problems in the national and global supply chains, increased competition for the company's higher margin services, which could depress pricing, the failure of the company's business model to respond to changes in the market environment as anticipated, changes in consumer demand and preferences for precious metals products generally, potential negative effects that inflationary pressure may have on our business.

Unknown Executive: The inability of the company to expand the capacity that Silver Town Mint, the failure of our Investee companies to maintain or address the preferences of their customer basis, general risks of doing business in the commodity markets, and the strategic business economic financial, political and governmental risks and other risk factors described in the company's public filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements. Listeners are cautioned not to place undue reliance on these forward-looking statements.

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

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

John: You may now disconnect.