Q3 2024 A-Mark Precious Metals Inc Earnings Call

Okay.

Operator: Good afternoon, and welcome to A-Mark's Precision Metals conference call for the fiscal third quarter ended March 31st, 2024. My name is Matthew, and I will be your operator this afternoon.

Good afternoon, and welcome to a mark to precision metals conference call for the fiscal third quarter ended March 31 2024.

Operator: My name is Matthew and I'll be your operator this afternoon.

Operator: Before this call, A-Mark issued its results for the fiscal third quarter of 2024 in a press release which is available in the Investor Relations section of the company's website at www.amark.com. You can find the link 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 Gjerdrum, and CFO Kathleen Simpson-Taylor. Following their remarks, we will open the call to your questions.

Operator: Before this call a mark issued its results for the fiscal third quarter 2024 in our press release, which is available in the Investor Relations section of the company's website at Www Dot a mark Dot com.

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

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

Operator: Following their remarks, we will open the call for your questions then.

Operator: Then, before we conclude the call, I'll provide the necessary cautions regarding the forward-looking statements made by management during the call. I'd like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of A-Mark's website. Now, I'd like to turn the call over to A-Mark's CEO, Mr. Greg Roberts. Please, proceed.

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

Gregory N. Roberts: I'd like to remind everyone that this call is being recorded and will be made available for replay via link available in the Investor Relations section of a Mark's website.

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

Gregory N. Roberts: Thank you, Matthew, and good afternoon, everyone. Thanks for joining us on our call today. Our third quarter results continue to demonstrate the ability of our fully integrated platform to generate profitable results, even in a difficult market environment. During the quarter, we faced a combination of softened demand, premium compression, and elevated gold and silver prices, which led our traditional buyers to become sellers and provided us with an opportunity to purchase more inventory. Despite the challenging environment, we delivered $0.21 per diluted share and generated $12.6 million in non-GAAP EBITDA, including one-time acquisition costs of $2.2 million.

Gregory N. Roberts: Thank you Matthew and good afternoon, everyone and thanks for joining our call today.

Gregory N. Roberts: Our third quarter results continue to demonstrate the ability of our fully integrated platform to generate profitable results, even in a difficult market environment.

Gregory N. Roberts: During the quarter, we faced a combination of soften demand premium compression and elevated gold and silver prices, which led our traditional buyers to become sellers and provided us with an opportunity to purchase more inventory. Despite the challenging environment, we delivered 21 per diluted share and generated $12 six.

Gregory N. Roberts: And non-GAAP EBITDA, including one time acquisition costs of $2 2 million. We also increased the direct to consumer number of new customers by an impressive 8% compared to last quarter.

Gregory N. Roberts: We also increased the number of direct-to-consumer new customers by an impressive 8% compared to last quarter. Consistent with our commitment to generate shareholder value, the company also repurchased a total of 204,396 shares of our common stock for $5 million during the quarter.

Gregory N. Roberts: Consistent with our commitment to generate shareholder value. The company also repurchased a total of 204396 shares of our common stock for $5 million during the quarter.

Gregory N. Roberts: As previously announced, we completed the acquisition of LPM Group Limited in February 2024 and have substantially completed the integration of LPM's business and operations with A-Mark. LPM now has enhanced access to supplementary products and capital through A-Mark to broaden its offerings and to promote future growth. Key technology upgrades have also been added to enhance LPM's logistics capabilities and to fully integrate LPM into AMGL's fulfillment and shipping system. JMB has also collaborated closely with LPM to develop processes aimed at enhancing and expanding LPM's e-commerce footprint.

Gregory N. Roberts: As previously announced we completed the acquisition of L. P. M Group Ltd. In February 2024, and have substantially completed the integration of L. P. EMS business in operations with a mark.

Gregory N. Roberts: L. P. M. Now has enhanced access to supplementary products in capital through a mark to broaden their offerings and to promote future growth.

Gregory N. Roberts: Key technology upgrades have also been added to enhance lpns logistics capabilities and to fully integrate L. P M into AMG Els fulfillment and shipping system.

Gregory N. Roberts: JMP has also collaborated closely with L. P M to develop processes aimed at enhancing expanding L. P. M e-commerce footprint.

Gregory N. Roberts: I'm happy to report that a month and a half or so into this, we are very pleased with the results. We also continue to advance our logistics automation initiatives at our A-Mark Global Logistics, or AMGL, facility in Las Vegas. These initiatives are designed to enhance our operational efficiency, enabling us to effectively manage a larger number of SKUs, as well as increase volume, taking in and shipping out more packages, all the while minimizing operational costs.

Speaker Change: Happy to report that.

Gregory N. Roberts: A month and a half or so into this we're very pleased with the results we have seen.

Gregory N. Roberts: We also continued to advance our logistics automation initiatives at are a mark global logistics or AMG all facility in Las Vegas.

Gregory N. Roberts: These initiatives are designed to enhance our operational efficiency, enabling us to effectively manage a larger number of skus as well as increased volumes.

Gregory N. Roberts: Taking in and shipping out more packages, all the while minimizing operational costs.

Gregory N. Roberts: Now I will turn the call over to our CFO, Kathleen Simpson-Taylor, who will provide a more detailed overview of our financial performance. Then, our President Thor Gjerdrum will discuss our key operating metrics. Finally, I will provide further insight into our business and growth strategy and happily take all of your questions.

Speaker Change: Now I will turn the call over to our CFO Kathleen Simpson Taylor, who will provide a more detailed overview of our financial performance then our President's are juergen will discuss our key operating metrics. Finally, I will provide further insight into our business and growth strategy and happily take all of your questions Kathleen.

Kathleen Simpson: Thank you, Greg, and good afternoon, everyone. Our revenues for fiscal Q3 2024 increased 13% to $2.611 billion from $2.317 billion in Q3 of last year. Excluding an increase of $622.1 million in forward sales, our revenues decreased $328.6 million, or 20%, which was due to a decrease in gold and silver ounces sold, partially offset by higher average selling prices of gold and silver. The DTC segment contributed 13% and 23% of the consolidated revenue in the fiscal third quarters of 2024 and 2023, respectively.

Kathleen Simpson: Thank you, Greg and good afternoon, everyone.

Kathleen Simpson: Our revenues for fiscal Q3, 2024 increased 13% to 261 1 billion from $2 317 billion in Q3 of last year.

Kathleen Simpson: Excluding an increase of $622 1 million of forward sales, our revenue decreased $328 6 million or 20%, which was due to a decrease in gold and silver ounces sold partially offset by higher average selling prices of gold and silver.

Kathleen Simpson: The DTC segment contributed 13% and 23% of consolidated revenue in the fiscal third quarters of 2024, and 2023, respectively Revo.

Kathleen Simpson: Revenue contributed by J M. D represented 12% of the consolidated revenues for Q3 of 2024 compared to 20% in Q3 of last year.

Kathleen Simpson: Revenue contributed by JMB represented 12% of the consolidated revenues for Q3 of 2024 compared to 20% in Q3 of last year. For the nine month period, our revenues increased 16% to $7.174 billion from $6.167 billion in the same period last year. Excluding an increase of $1.514 billion in forward sales, revenues decreased $506.9 million, or 11 percent, which was due to a decrease in gold and silver ounces sold, partially offset by higher average selling prices of gold and silver. The DTC segment contributed 14% and 23% of the consolidated revenue for the nine months ended March 31, 2024, and 2023, respectively.

Kathleen Simpson: For the nine month period, our revenues increased 16% to 7.1 74 billion from $6 167 billion in the same year ago period.

Kathleen Simpson: Revenue contributed by JMB represented 13% of the consolidated revenues for the nine months ended March 31, 2024, compared with 21% in the same year-ago period. Gross profit for fiscal Q3 2024 decreased 54% to $34.8 million or 1.33% of revenue from $75.5 million or 3.26% of revenue in Q3 of last year. The decrease in gross profit was due to lower gross profits earned from both the wholesale sales and ancillary services and DTC segments.

Kathleen Simpson: Excluding an increase of 151 4 billion of forward sales revenues decreased $506 9 million or 11%, which was due to a decrease in gold and silver ounces sold partially offset by higher average selling prices of gold and silver.

Kathleen Simpson: The DTC segment contributed 14% and 23% at the consolidated revenue for the nine months ended March 31, 2024, and 2023, respectively.

Kathleen Simpson: Revenue contributed by J N B represented 13% of the consolidated revenues for the nine months ended March 31, 2024, compared with 21% in the same year ago period.

Kathleen Simpson: Gross profit for fiscal Q3, 2024 decreased 54% to $34 8 million or 133% of revenue from $75 5 million or $3 two 6% of revenue in Q3 of last year.

Kathleen Simpson: The decrease in gross profit was due to lower gross profits earned from both the wholesale sales and ancillary services and DTC segment.

Kathleen Simpson: Gross profit contributed by the DTC segment represented 52% of the consolidated gross profit in fiscal Q3 2024, compared to 57% in the same year-ago period. Gross profit contributed by JMB represented 45% of the consolidated gross profit in Q3 2024, compared to 47% in Q3 of last year. For the nine-month period, gross profit decreased 40% to $130.3 million, or 1.82% of revenue from $216.1 million, or 3.5% of revenue in the same year-ago period. The decrease in gross profit was due to lower gross profits earned from both the wholesale sales and ancillary services and DTC segments.

Kathleen Simpson: Gross profit contributed by the DTC segment, representing 52% at the consolidated gross profit in fiscal Q3, 2024 compared to 57% in the same year ago period.

Kathleen Simpson: Gross profit contributed by J M. B represented 45% of the consolidated gross profit in Q3 2024 compared to 47% in Q3 of last year.

Kathleen Simpson: For the nine months period gross profit decreased 40% to $130 3 million or 118% of revenue from $216 1 million or three 5% of revenue in the same year ago period.

Kathleen Simpson: The decrease in gross profit was due to lower gross profits earned from both the wholesale sales and ancillary services and DTC segment.

Kathleen Simpson: Gross profit contributed by the DTC segment represented 47% of the consolidated gross profit for the nine months ended March 31st, 2024, compared to 56% in the same year-ago period; gross profit contributed by JMB represented 40% and 48% of the consolidated gross profit for the nine months ended March 31st, 2024 and 2023, respectively. SG&A expenses for fiscal Q3 2024 decreased 4% to $22.9 million from $23.8 million in Q3 of last year.

Kathleen Simpson: Gross profit contributed by the DTC segment represented 47% of the consolidated gross profit for the nine months ended March 31, 2024 compared to 56% in the same year ago period.

Kathleen Simpson: Gross profit contributed by J N V, representing 40% and 48% at the consolidated gross profit for the nine months ended March 31, 2024, and 2023, respectively.

Kathleen Simpson: SG&A expenses for fiscal Q3, 2024 decreased 4% to $22 9 million from $23 8 million in Q3 of last year.

Kathleen Simpson: The change was primarily due to a decrease in compensation expense, including performance-based accruals of $2.2 million, a decrease in insurance costs of $0.9 million, and lower advertising costs of $0.4 million, which was partially offset by higher consulting and professional fees of $2.2 million related to M&A activities and an increase in information technology. For the nine-month period, SG&A expenses increased 8% to $67.1 million from $62.4 million in the same year- The change was primarily due to an increase in consulting and professional fees of $4.8 million, including $2.8 million related to M&A activities, an increase in information technology costs of $0.8 million, and an increase in compensation expense, including performance-based accruals of $0.4 million. This was partially offset by a decrease in insurance costs of $1.4 million.

Kathleen Simpson: The change was primarily due to a decrease in compensation expense, including performance based accruals of $2 2 million.

Kathleen Simpson: A decrease in insurance costs of <unk> 9 million and lower advertising costs of <unk> 4 million, which was partially offset by higher consulting and professional fees of $2 2 million related to M&A activities and an increase in information technology cost of zero point.

Kathleen Simpson: $2 million.

Kathleen Simpson: For the nine months period, SG&A expenses increased 8% to $67 1 million from $62 4 million in the same year ago period.

Kathleen Simpson: The change was primarily due to an increase in consulting and professional fees of $4 8 million, including $2 8 million related to M&A activities and increase in information technology costs of <unk> 8 million and an increase in compensation expense, including performance based accruals.

Kathleen Simpson: 0.4 million. This was partially offset by a decrease in insurance cost of one 4 million.

Kathleen Simpson: Depreciation and amortization expense for fiscal Q3 2024 decreased 12% to $2.9 million from $3.3 million in Q3 of last year. The change was primarily due to a 0.6 million decrease in amortization of acquired intangibles related to JMP. For the nine-month period, depreciation and amortization expense decreased 13% to $8.6 million from $9.8 million in the same year-ago period. The change was primarily due to a $1.7 million decrease in amortization of acquired intangibles related to JM.

Kathleen Simpson: Depreciation and amortization expense for fiscal Q3, 2024 decreased 12% to $2 9 million from $3 3 million in Q3 of last year.

Kathleen Simpson: Change was primarily due to a <unk> 6 million decrease in amortization of acquired intangibles related to J M D.

Kathleen Simpson: For the nine months period, depreciation and amortization expense decreased 13% to $8 6 million from $9 8 million in the same year ago period.

Kathleen Simpson: The change was primarily due to a $1 7 million decrease in amortization of acquired intangibles related to J M D.

Kathleen Simpson: Interest income for fiscal Q3 2024 increased 10% to $6.7 million from $6.1 million in Q3 of last year. The aggregate increase in interest income was primarily due to an increase in other finance product income of $0.1 million and an increase in interest income earned by our secured lending segment of $0.5 million. For the nine month period, interest income increased 18% to $19.1 million from $16.2 million in the same year-ago period.

Kathleen Simpson: Interest income for fiscal Q3, 2024 increased 10% to $6 7 million from $6 1 million in Q3 of last year.

Kathleen Simpson: <unk> increase in interest income was primarily due to an increase in other finance product income.

Kathleen Simpson: <unk> 1 million and an increase in interest income earned by our secured lending segment zero point $5 million.

Kathleen Simpson: The aggregate increase in interest income was primarily due to an increase in other finance product income of $1.6 million and an increase in interest income earned by our secured lending segment of $1.4 million. Interest expense for fiscal Q3 2024 increased 7% to $9.9 million from $9.2 million in Q3 of last year. The increase in interest expense was primarily due to an increase of $1.3 million associated with our trading credit facility due to an increase in interest rates as well as increased borrowings and an increase of $0.9 million related to product financing arrangements, partially offset by a decrease of $1.4 million related to the AMCF notes, including amortization of debt issuance costs due to the repayment of the notes in December 2023. For the nine-month period, interest expense increased 32% to $29.

Kathleen Simpson: For the nine month period interest income increased 18% to $19 1 million from $16 2 million in the same year ago period. The aggregate increase in interest income was primarily due to an increase in other finance product income of $1 6 million and an increase in interest income.

Kathleen Simpson: <unk> earned by our secured lending segment of $1 4 million.

Kathleen Simpson: Interest expense for fiscal Q3, 2024 increased 7% to $9 9 million from $9 2 million in Q3 of last year.

Kathleen Simpson: The increase in interest expense was primarily due to an increase of $1 3 million associated with our trading credit facility due to an increase in interest rates as well as increased borrowings.

Kathleen Simpson: And an increase of 0.9 million related to product financing arrangements.

Kathleen Simpson: Partially offset by a decrease of one 4 million related to the Mcf notes, including amortization of debt issuance cost due to the notes repayment in December 2023.

Kathleen Simpson: For the nine months period interest expense increased 32% to $29 9 million from $22 6 million in the same year ago period the.

Kathleen Simpson: The increase was primarily driven by an increase of $6.9 million associated with our Trading Credit Facility due to an increase in interest rates as well as increased borrowing. Additionally, an increase of $2.5 million related to product financing arrangements, partially offset by a decrease of $1.8 million related to the AMCF notes, including amortization of debt issuance costs due to their repayment in December 2023, as well as a $0.3 million decrease in loan servicing fees.

Kathleen Simpson: The increase was primarily driven by an increase of $6 9 million associated with our trading credit facility due to an increase in interest rates as well as increased borrowings.

Kathleen Simpson: An increase of $2 $5 million related to product financing arrangements.

Kathleen Simpson: Partially offset by a decrease of $1 8 million related to the Amcs notes, including amortization of debt issuance costs due to their repayment in December 2023 as.

Kathleen Simpson: As well as <unk> 3 million decrease in loan servicing fees.

Kathleen Simpson: Losses from equity method investments in Q3 2024 increased 194% to $0.2 million from $0.1 million in the same year-ago quarter. For the nine-month period, earnings from equity method investments decreased 55% to $3.3 million from $7.3 million in the same year-ago period. The decrease in both periods was due to decreased earnings of our equity method investee. Net income attributable to the company for the third quarter of fiscal 2024 totaled $5,000,000, or $0.21 per diluted share.

Kathleen Simpson: Losses from equity method investments in Q3, 2024 increased 194% to zero point $2 million from 0.1 million in the same year ago quarter.

Kathleen Simpson: For the nine month period earnings from equity method investments decreased 55% to $3 3 million from $7 3 million in the same year ago period.

Kathleen Simpson: The decrease in both periods was due to decreased earnings of our equity method investees.

Kathleen Simpson: Net income attributable to the company for the third quarter of fiscal 2024 totaled 5 million or <unk> 21 per diluted share.

Kathleen Simpson: This compares to net income attributable to the company of $35.9 million or $1.46 million per diluted share in Q3 of last year. For the nine-month period, net income attributable to the company totaled $37.6 million or $1.56 per diluted share, which compares to net income attributable to the company of $114.5 million or $4.64 per diluted share in the same year-ago period. Adjusted net income before provision for income taxes, a non-GAAP financial performance measure that excludes acquisition expenses, amortization, and depreciation for Q3 fiscal 2024 totaled $11.6 million, a decrease of 76% compared to $49.2 million in the same year-ago quarter.

Kathleen Simpson: This compares to net income attributable to the company of $35 9 million or $1 46.

Kathleen Simpson: Per diluted share and eight in Q3 of last year.

Kathleen Simpson: For the nine month period net income attributable to the company totaled $37 6 million or $1 56 per diluted share, which compares to net income attributable to the company of $114 5 million or $4 64 per diluted share in the same year ago period.

Kathleen Simpson: Adjusted net income before provision for income taxes, a non-GAAP financial performance measure, which excludes acquisition expenses amortization and depreciation for Q3 fiscal 2024 totaled $11 6 million a decrease of 76% compared to 49.

Kathleen Simpson: $2 million in the same year ago quarter.

Kathleen Simpson: Adjusted net income before provision for income taxes for the nine-month period totaled $60.1 million, a 62% decrease from $156.9 million in the same year-ago period. EBITDA, a non-gap liquidity measure for Q3 fiscal 2024, totaled $12.6 million, a 76% decrease compared to $52.3 million in Q3 fiscal 2023. EBITDA for the 9-month period totaled $68.2 million, a 58% decrease compared to $163.2 million in the same year-ago period. Now, turning to our balance sheet. At quarter end, we had $35.2 million in cash compared to $39.3 million at the end of fiscal 2023.

Kathleen Simpson: Adjusted net income before provision for income taxes for the nine month period totaled $60 1, Million% to 62% decrease from $156 9 million in the same year ago period.

Kathleen Simpson: EBITDA, a non-GAAP liquidity measure for Q3 fiscal 2024 totaled $12 6, million% to 76% decrease compared to $52 3 million in Q3 fiscal 2023.

Kathleen Simpson: EBITDA for the nine month period totaled $68 2, million% to 58% decrease compared to $163 2 million in the same year ago period.

Kathleen Simpson: Turning to our balance sheet at quarter end, we had $35 2 million of cash compared to $39 3 million at the end of fiscal 2023.

Kathleen Simpson: Our non-restricted inventories totaled $579.4 million, down $66.4 million from $645.8 million at the end of fiscal 2023. This was despite rising commodity prices, which drove an overall increase in our inventory value of over 10%, holding ounces constant from the fiscal year end.

Kathleen Simpson: Our non restricted inventories totaled $579 4 million down $66 4 million from $645 8 million at the end of fiscal 2023, and this was despite rising commodity prices, which drove an overall increase in our inventory value of over 10% holding.

Kathleen Simpson: <unk> constant from the fiscal year end.

Kathleen Simpson: Our tangible net worth at the end of the quarter was $391.1 million, down from $436.8 million at the end of the prior fiscal year. The reduction is due to share repurchase activity and dividends paid, combined with higher intangible assets from the LPM acquisition. A-Mark's Board of Directors has continued to maintain the company's regular quarterly cash dividend program of $0.20 per common share. The most recent quarterly cash dividend was paid in April.

Kathleen Simpson: Our tangible net worth at the end of the quarter was $391 1 million down from $436 8 million at the end of the prior fiscal year.

Kathleen Simpson: The reduction is due to share repurchase activity and dividends paid combined with higher intangible assets from the LTM acquisition.

Kathleen Simpson: Amer sport of directors has continued to maintain the company's regular quarterly cash dividend program of <unk> 20 per common share.

Kathleen Simpson: It is expected that the next quarterly dividend will be paid in July 2024. 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?

Kathleen Simpson: The most recent quarterly cash dividend was paid in April it is expected that the next quarterly dividend will be paid in July 2020 for.

Thor G. Gjerdrum: Looking at our key operating metrics for the third quarter of fiscal 2024, we sold 446,000 ounces of gold in Q3 fiscal 2024, which was down 32% from Q3 of last year and down 1% from the prior quarter. For the NYMA period, we sold 1.4 million ounces of gold, which is down 25% from the same year-to-period. We sold 25.7 million ounces of silver in Q3 fiscal 2024, 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 56,600 in Q3 fiscal 2024, which was down 13% from Q3 of last year but increased 8% from last quarter.

Kathleen Simpson: 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.

Thor G. Gjerdrum: Kathleen.

Thor G. Gjerdrum: Looking at our key operating metrics for the third quarter of fiscal 2024, we sold 446000 ounces of gold in Q3 fiscal 2024, which was down 32% for Q3 of last year and down 1% from the prior quarter for the nine month period, we sold $1 4 million ounces of gold, which was down 45% from the <unk>.

Thor G. Gjerdrum: A year ago period.

Thor G. Gjerdrum: We sold $25 7 million ounces of silver at Q3 fiscal 2024, which was down 30% from Q3 of last year and down 3% from last quarter.

Thor G. Gjerdrum: Im a period, we sold $82 7 million ounces of silver, which was down 26% from the same year ago period.

Thor G. Gjerdrum: The number of new customers in the DTC segment, which is defined as the number of customers that are registered or set up a new account ready to purchase for the first time. During the period was 56600 in Q3 fiscal 2024, which was down 13% from Q3 of last year, but increased 8% from last quarter for the line.

Thor G. Gjerdrum: For the nine-month period, the number of new customers in the DTC segment was 148,200, which is down 40% from 244,900 new customers in the same year-ago period. The number of total customers in the DTC segment at the end of the third quarter was approximately 2.5 million, which was an 11% increase from the prior year. The year-over-year increase in total customers was due to organic growth of our GMB customer base as well as from an acquired customer list.

Thor G. Gjerdrum: Both period, the number of new customers in the DTC segment was 148200, which is down 40% from 244900, new customers in the same year ago period.

Thor G. Gjerdrum: The number of former customers in the DTC segment at the end of the third quarter was approximately $2 5 million.

Thor G. Gjerdrum: Which was an 11% increase from the prior year the year over year increase in total customers was due to organic growth of our JV customer base as well as from acquired customer lists.

Thor G. Gjerdrum: The DTC segment average order value, which represents the average dollar value of products ordered, excluding accumulation program orders, delivered to DTC segment customers during Q3 fiscal 2024, was $2,133, which was down 13% from Q3 fiscal 2023 and down 4% from the prior quarter. For the nine month period, our DTC segment average order value was $2,253, which was down 6% from the same year-ago period. For the fiscal third quarter, our inventory turn ratio was 2.3, which is a 4% decrease from 2.4 in Q3 of last year and a 21% increase from 1.9 in the prior quarter.

Thor G. Gjerdrum: The <unk> segment average order value, which represents the average dollar value of product ordered excluding accumulation program orders delivered the DTC segment customers. During Q3 fiscal 2024 was $2133, which was down 13% from Q3 fiscal 'twenty to 2023 and down four.

Thor G. Gjerdrum: <unk> from the prior quarter.

Thor G. Gjerdrum: For the nine month period, our GTC average order value was $2253, which was down 6% from the same year ago period.

Thor G. Gjerdrum: For the fiscal third quarter, our inventory turn ratio was two three which was a 4% decrease from Q4 Q3 of last year and a 21% increase from one nine in the prior quarter for the nine months period, our inventory turnover ratio was six <unk>, a 3% decrease from 7.0 in the same year ago.

Thor G. Gjerdrum: For the nine-month period, our inventory turnover ratio was 6.8, a 3% decrease from 7.0 in the same year-ago period. Finally, the number of secured loans at the end of March totaled 675, a decrease of 30% from March 31, 2023, and a decrease of 6% from the end of December. While the number of secured loans decreased, our secured loan receivable balance increased over the same periods, bringing the value of our loan portfolio as of March 31, 2024 to $115.6 million, a 19% increase from March 31, 2023 and a 9% increase from December 31, 2021.

Thor G. Gjerdrum: Period finally, the number of secured loans at the end of March totaled 675, a decrease of 30% from March 31, 2023, and a decrease of 6% from the end of December.

Thor G. Gjerdrum: While the number of secured loans decreased our secured loan receivable balance increase over the same period, bringing the value of our loan portfolio as of March 31, 2024 to $115 6, Million% to 19% increase from March 31, 2023, and a 9% increase from December 31, 2023 that can.

Gregory N. Roberts: That concludes my prepared remarks. I'll now turn it over to Greg. Thank you, Thor and Kathleen.

Thor G. Gjerdrum: My prepared remarks, I'll now turn it over to Greg.

Gregory N. Roberts: Thank you, Thor and Kathleen. We've made significant strides in our M&A growth strategy with our expansion into Asia through our acquisition of LPM. We are enthusiastic about the opportunities in the Asian market and continue to explore prospects to further expand our geographic presence and market reach that will create synergies with A-Mark's fully integrated platform, including our reliable access to supply, successful logistics, footprint, and strong customer relations. Our commitment to generating shareholder value remains firm, and we are confident in A-Mark's diversified and proven business model. That concludes my prepared remarks.

Greg: For his closing remarks great.

Speaker Change: Foreign Kathleen.

Gregory N. Roberts: Made significant strides in our M&A growth strategy with our expansion into Asia through our acquisition of L. P. M. We are enthusiastic about the opportunities in the Asian market and continue to explore prospects to further expand our geographic presence and market reach that will create synergies with <unk> fully integrated platform.

Gregory N. Roberts: Including a reliable access to supply successful logistics footprint and strong customer relationships, our commitment to generating stockholder value remains firm and we are confident in a march diversified and proven business model that concludes my prepared remarks.

Gregory N. Roberts: <unk>.

Operator: Thank you. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star 1 on your phone at this time. We do ask that while you are posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star 1 on your phone. Your first question is coming from Mike Baker from D.A. Davidson. Your line is live. Hi,

Speaker Change: Thank you everyone. At this time, we'll be conducting a question and answer session. If you have any questions or comments. Please press star one on your phone at this time we.

Operator: And we do ask that while posing your question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.

Operator: Once again, if you have any questions or comments. Please press star one on your phone.

Operator: Your first question is coming from Mike Baker from D. A Davidson your line is live.

Gregory N. Roberts: Hey, thanks guys. Just wondering if you could talk about what you think, what in this environment caused the compression in the spreads to happen so much in the calendar first quarter? And can you talk about maybe what you saw throughout the quarter? By month, did it get worse as the month, as the quarter went on? Did it get better? Any early thoughts on that? Fourth quarter of the calendar year; second quarter in terms of the spreads.

Michael Allen Baker: Hey, Thanks, guys.

Gregory N. Roberts: Just wondering if you could talk about what do you think one in this environment caused the compression in the spreads to happen. So much in the calendar first quarter and can you talk about maybe what you saw throughout the quarter by month.

Gregory N. Roberts: Did it get worse.

Gregory N. Roberts: As the quarter went on did it get better or any any early thoughts on the fourth quarter of the calendar second quarter in terms of the spreads.

Gregory N. Roberts: Sure.

Gregory N. Roberts: Yeah, I mean, I would start with just saying that probably the single biggest headwind for this particular quarter was a record number of days in the quarter that we saw all-time record prices for gold, in particular. And I think it's important to note in our press release, we described a little bit that, you know, a lot of our customers that buy new products from us turned into sellers to A-Mark. And I think it's, you know, important to note that.

Speaker Change: Yeah, I mean, I would start with just saying the probably the single biggest headwind for this particular quarter was a record number of days.

Gregory N. Roberts: In the quarter that we saw all time record prices in gold in particular and I think it's important to note in our press release, we described a little bit that a lot of our customers that buy new product from us turned into sellers to a mark and I think it's important to note.

Gregory N. Roberts: A-Mark is really, you know, the terminal physical metals destination for wholesale products seeking liquidity. And I think we have done a very good job in the quarter of balancing what we're buying back from the wholesale marketplace versus what we're selling. And I think, you know, our management of our inventory has been a key component of what we worked on in the quarter. We have enough upside if the market was to turn around, and we liquidated that, and we've held on to inventory on products that we think give us more opportunity.

Gregory N. Roberts: That.

Gregory N. Roberts: Hey, Mark is really.

Gregory N. Roberts: The terminal physical metals destination for wholesale products seeking liquidity and I think.

Gregory N. Roberts: We have done a very good job in the quarter of balancing what we're buying back from the wholesale marketplace.

Gregory N. Roberts: Versus what we're selling and I think our management of our inventory has been a key component of what we worked on in the quarter.

Gregory N. Roberts: And we balanced our inventory we've been balanced our purchases and sales and we also rotated out of inventory, which I mentioned last call. When we rotated out of inventory that we didn't feel gave us.

Gregory N. Roberts: Upside.

Gregory N. Roberts: If the market was to turn around.

Gregory N. Roberts: And we.

Gregory N. Roberts: We liquidated that and we've held on to inventory.

Gregory N. Roberts: On products that we think give us more opportunity.

Gregory N. Roberts: I can say that, you know, since probably January and February and most of March, we have started to see a shift and a reduction in what we're buying off of the wholesale market or buying back from customers versus what we're selling. So we have seen a bit of a shift there. And I think that, you know, it's important to remember that, you know, there are generations of people whose grandparents or parents or even further back than that held gold for their families.

Gregory N. Roberts: I can say that.

Gregory N. Roberts: Since probably January and February and most of March we have started to see a shift and a reduction from what we are buying off of the wholesale market.

Gregory N. Roberts: We're buying back from customers versus what we're selling so we have seen a bit of a shift there and I think it's.

Gregory N. Roberts: It's important to remember that.

Gregory N. Roberts: Right.

Gregory N. Roberts: There are generations of people, whose grandparents or parents or even further back than that held gold for.

Gregory N. Roberts: For their family and that you've gone through a period, where many of the long term holders of physical metals have been given the opportunity to monetize and create liquidity and sell material where everybody is in a profit position as it relates to your most generic lowest.

Gregory N. Roberts: And that you've gone through a period where many of the long-term holders of physical metals have been given the opportunity to monetize and create liquidity and sell material where everybody is in a profit position as it relates to, you know, your most generic, lowest-premium gold products. So I think that's something that we worked through. I think, you know, those and sustained higher prices as we go through these periods.

Gregory N. Roberts: Premium gold products. So I think that's something that we worked through.

Gregory N. Roberts: I think those and these sustained higher prices as we go through these periods.

Gregory N. Roberts: You're going to have waves of supply-demand imbalance. I think that as it relates to what we see today and where we are today versus where we were on March 31st, and your question related to what we saw in the January, February, and March period by month, I would say that December, going back to December, which we talked a little bit about on our last call, and January and February were probably three of the slowest months we've seen in a long time.

Gregory N. Roberts: Youre going to have waves of supply demand imbalance I.

Gregory N. Roberts: I think that as it relates to the.

Gregory N. Roberts: Where what we see today and where we are today versus where we are at were at March 31.

Gregory N. Roberts: And your question related to what we saw in <unk>.

Gregory N. Roberts: The.

Gregory N. Roberts: January February March period by months.

Gregory N. Roberts: I would say that December going back to December, which we talked a little bit about on our last call in January and February were probably three of the slowest months, we've seen in a long time I think the company performed very well I think that.

Gregory N. Roberts: I think the company performed very well. I think that as you look at how we worked through it. I've been doing this for almost 45 years or more, and there's not a whole lot that surprises me in the macro environment.

Gregory N. Roberts: As you look at how we worked through it.

Gregory N. Roberts: <unk>.

Gregory N. Roberts: We I've been doing this for almost 45 years or more and.

Gregory N. Roberts: Well, there's not a whole lot that surprises me.

Gregory N. Roberts: In the macro environment and for the first time ever.

Gregory N. Roberts: For the first time ever, when you have two months of really every day or every week, you have sustained new highs in spot prices, that's just something that we haven't seen before. I give a tremendous amount of credit to Thor and the Treasury team and Kathleen for managing our liquidity and making sure that we continue to be the dominant player. If there's metal seeking liquidity, A-Mark wants to be the one to buy it.

Gregory N. Roberts: You have two months of really.

Gregory N. Roberts: Everyday or every week you have sustained new highs in spot prices, that's just something that we haven't seen before.

Gregory N. Roberts: I give a tremendous amount of credit to Thor and the treasury team and Kathleen.

Gregory N. Roberts: In managing our liquidity and making sure that we continue to be the dominant player. If if theres metal seeking liquidity a mark wants to be the one to buy it. So I think we we went through.

Gregory N. Roberts: So I think we went through a number of months there where we were adjusting to the new dynamics. I can say that as we turn the calendar from March to April, some significant improvements that we saw, both in demand as well as a slowdown in buybacks that we were buying back from wholesale customers. And we did see some increasing premiums in products that have continued throughout most of April and into May.

Gregory N. Roberts: A number of a.

Gregory N. Roberts: A couple of months, there, where we were adjusting to the new dynamic.

Gregory N. Roberts: I can say that.

Gregory N. Roberts: As we turned the calendar from March to April some significant improvements that we saw both in demand as well as a slowdown in.

Gregory N. Roberts: And buybacks that we were buying back from from wholesale customers.

Gregory N. Roberts: And we did see some expanding premiums in products that have continued.

Gregory N. Roberts: Throughout most of April.

Gregory N. Roberts: I would say the most dramatic, you know, increase in premiums that we saw over the last five or six weeks from today has been the premium on U.S. Silver Eagles. And if anybody keeps track of premiums, looking at websites, and checking that, you'll see a fairly noticeable increase. And as one of our more profitable products, any increase in premiums with Silver Eagles is welcome and is going to result in higher profits for us.

Gregory N. Roberts: And into May I would say the most dramatic.

Gregory N. Roberts: Increase in premiums that we saw over the last five or six weeks from today has been the premium on U S Silver Eagles.

Gregory N. Roberts: And if anybody keeps track of premiums at looking at websites and checking that youll see a fairly noticeable increase.

Gregory N. Roberts: And as one of our more profitable products any increase in premiums with silver Eagles is is welcome and is going to.

Gregory N. Roberts: It's going to result in higher GP for us.

Gregory N. Roberts: And what we have seen in the last three or four weeks, as we have seen before when Silver Eagle premiums tend to rise, we've seen other silver products, whether it be Maple Leafs or Britannias or even some of our Silvertown products that we make at our mint in Indiana. We've seen some less dramatic, but still increases in some of those products. I would say that we're still looking to see some premiums on gold products, although in the last week or 10 days, we've seen Gold Eagles in particular have a fairly material move in their premium.

Gregory N. Roberts: And what we have seen in the last three or four weeks as we have seen before when silver Eagle premiums tend to rise we've seen other silver products, whether it be may beliefs, or brittania is or even some of our silver time products that we make it our mint in Indiana, we've seen some some less dramatic.

Gregory N. Roberts: But still increases in some of those products I would say that we're still looking to see some premiums in gold products. Although in the last week or 10 days, we've seen gold Eagles in particular have a fairly material move in in their premium. So we are seeing the supply demand imbalance get back in place to what.

Gregory N. Roberts: But we are seeing the supply-demand imbalance get back to what we're used to. Very optimistic, very much looking forward to this quarter. I feel like April, we performed very well, and we were able to monetize a number of the positions that we were able to take over the last six months. You know, and I think you can look at Q3 as probably, you know, one of the worst quarters we're going to throw out there.

Gregory N. Roberts: To what we're used to very optimistic very very much.

Gregory N. Roberts: Much looking forward to this quarter I feel like April.

Gregory N. Roberts: Was was we performed very well and we were able to monetize a number of positions that we were able to take over the last six months.

Gregory N. Roberts: And I think you can look at Q3 is probably.

Gregory N. Roberts: One of the worst quarters, we're going to throw out there.

Gregory N. Roberts: You know, we had our acquisition going on, we had some acquisition costs, and we had, you know, what I've just described in the marketplace. But we're looking for, you know, improvement going forward from here and feel pretty good about what we were able to accomplish in our Q3.

Gregory N. Roberts: We had our acquisition going on we had some acquisition costs and we had what I've just described in the marketplace.

Gregory N. Roberts: But we're looking for improvement going forward from here.

Gregory N. Roberts: Feel pretty good about what we were able to accomplish.

Gregory N. Roberts: Our Q3.

Gregory N. Roberts: Well, thanks. Yeah, that's consistent with some of the data that we track. If I could follow up on one thing, and you sort of answered it there at the end, where you said you were able to monetize positions that you took in in the last six months, but can you just highlight or remind us? All the products you were able to buy in the March quarter, how long did it take for that to flow through and ultimately, presumably benefit you because of the inventory that you guys were able to buy?

Speaker Change: Oh, Yeah, that's that's consistent with some of the data that we track.

Gregory N. Roberts: If I could follow up on one thing and you sort of answered it there at the end, where you said you were able to monetize positions that you've taken in the last six months, but can you just highlight or remind us.

Gregory N. Roberts: All of the product you were able to buy in the March quarter, how does when how long does it take for that to usually flow through and ultimately presumably benefit you because of the inventory that you guys were able to take in.

Gregory N. Roberts: Yeah, you know, it's not an exact science. I mean, and it doesn't happen, you know, overnight. You know, we balance opportunistic inventory purchases all the time. In very good markets, we pay a lot more, and we pay higher premiums because we have confidence we're going to sell them, and those opportunities that we take, you know, they monetize over three to six months after we take the position. I think that, you know, we view a lot of times as inventory purchase opportunities as, you know, what I would call, you know, options or call options, which are more familiar to the financial sector, where we pay a price and a premium to take a position.

Speaker Change: Yeah, you know, it's not an exact science I mean, and it doesn't happen overnight.

Gregory N. Roberts: We balance opportunistic inventory purchases all the time in very good markets, we pay a lot more and we pay higher premiums because we have confidence we're going to sell them in those those opportunities that we take.

Gregory N. Roberts: They monetize over three to six months. After we after we take the positions I think that we view a lot of times is as inventory purchase opportunities.

Gregory N. Roberts: As as.

Gregory N. Roberts: What I would call.

Gregory N. Roberts: Options or call options, which is more familiar to the financial sector, where we pay a price.

Gregory N. Roberts: In our premium to take a position.

Gregory N. Roberts: Most of the time, our opportunistic purchases that our trading teams make, you know, they turn out to be profitable, depending on how fast we sell them and how long we carry the product and how the carry builds up determines how profitable those trades are going to be. And like options, occasionally we'll buy inventory, we'll, we'll, we'll pay a premium, and we will pay the carry, and the trade doesn't work out. It happens all the time. You know, you know, not frequently, but it does happen.

Gregory N. Roberts: Most of the time are.

Gregory N. Roberts: Opportunistic purchases that are trading teams make they turn out to be profitable depending on how fast we sell them and how how long we carry the product and how the carry builds up determines how how profitable those trades are going to be and like options occasionally we'll buy inventory.

Gregory N. Roberts: Well, we will pay a premium and we will.

Gregory N. Roberts: The carry in the trade doesn't work out and it happens all the time.

Gregory N. Roberts: And I view that a little bit as, you know, an expiring option that people buy all the time. And they believe in something, they believe in a trade, and sometimes the option expires, and it's not worth anything. You know, in our case, it's always worth the metal content, but we do sometimes lose out on the premium. And that's just the nature of our business. We do that hundreds of times a month, and we're taking those positions, you know, trying to use our history, use our DTC segment to be the. To have the ability to take these positions and to move them is one of the great parts of our integrated business, and I can say that we are really, we have a great deal of momentum and volume right now in picking up new customers in our DTC segment.

Gregory N. Roberts: Not not frequently but it does happen and I view that a little bit as you know an expiring option that that people buy all the time and and they believe in something they believe in a trade and sometimes that the option expires and it is not worth anything you know in our case, it's always worth the metal content, but we do sometimes lose.

Gregory N. Roberts: On the premium and that's that's just the nature of our business, we're doing that hundreds of times a month and we're taking those positions.

Gregory N. Roberts: Trying to.

Gregory N. Roberts: Use our history use our DTC segment to be the two.

Gregory N. Roberts: Have the ability to take these positions and to move them is one of the great parts of our integrated business and I can say that we are.

Gregory N. Roberts: We are really we have a great deal of momentum in volume right now and picking up new customers in our DTC segment and the inventory opportunities that we've been able to buy has given us an opportunity to go out and acquire new customers and I think you know.

Gregory N. Roberts: And the inventory opportunities that we've been able to buy have given us an opportunity to go out and acquire new customers. And I think when you look at 8% quarter over quarter as it relates to new customers that we put in the release, that's a very important number. And those customers that we're able to bring into our funnel right now are most likely coming from new buyers, new to the market, but we also believe we're taking market share right now.

Gregory N. Roberts: When you look at 8% quarter over quarter as it relates to new customers that we put in the release, that's a very important number and those customers that we're able to bring into our funnel.

Gregory N. Roberts: Or right now are our most likely coming from new buyers new to the market, but we're also we also believe we're taking market share right now and our inventory is allowing us to do that at 56000, new customers in the quarter at the DTC segment is a very.

Gregory N. Roberts: And our inventory is allowing us to do that. 56,000 new customers in the quarter at the DTC segment is a very important number for us. And we've tried, and we've made sure that we're getting as many new customers as we can. And the ability to move through some inventory with these customers, I'm just very optimistic about that. And we're seeing that pay off. And we've also had a surprising increase towards the end of March and through all of April, where we're using some of our opportune inventory opportunities to reactivate customers that haven't bought in over a year.

Gregory N. Roberts: Port number for us and we we have we've tried and we've made sure that.

Gregory N. Roberts: We're getting as many new customers as we can and the ability to move through some inventory with these customers.

Gregory N. Roberts: I'm, just very optimistic about that and we're seeing that pay off and we've also had.

Gregory N. Roberts: A surprising the increase.

Gregory N. Roberts: In towards the end of our.

Gregory N. Roberts: Towards the end of March and through all of April where we're using some of our opportune inventory.

Gregory N. Roberts:

Gregory N. Roberts: Opportunities to reactivate customers that haven't bought in over a year.

Gregory N. Roberts: And we track those metrics, and we've seen in what I consider a fairly strong headwind in the macro environment, we've been very pleased with the new customers as well as the older customers we've been able to reactivate with some of our product offerings. So I think that's, you know, that's positive. We continue to find purchase opportunities, and we're very, very happy with our inventory at the moment.

Gregory N. Roberts: We track those metrics and we've seen and what I consider a fairly.

Gregory N. Roberts: Strong headwind in the macro environment, we've been very pleased with new customers as well as the older customers, we've been able to reactivate with some of our product offerings. So I think that's that's positive and.

Gregory N. Roberts: We continue to find to find purchase opportunities and we're very very happy with our inventory at the moment.

Operator: Yep, great. Makes sense. I appreciate all the calls and time.

Speaker Change: Yep great.

Operator: Makes sense I appreciate all the color on time.

Operator: Sure.

Operator: Thank you. Your next question is coming from Lucas Pipes from B. Reilly. Your line is live.

Operator: Thank you. Your next question is coming from Lucas pipes from B Riley Your line is live.

Lucas Nathaniel Pipes: Thank you very much, operator. Good afternoon, everyone.

Lucas Nathaniel Pipes: Thank you very much operator, good afternoon, everyone.

Lucas Nathaniel Pipes: I'd like to understand the kind of lower gross margin during the quarter a little bit better.

Lucas Nathaniel Pipes: Is it is it primarily related to the premium or is there kind of operational leverage.

Gregory N. Roberts: I'd like to understand the kind of lower gross margin during the quarter a little bit better. Is it is it primarily related to the premium, or is there some kind of operational leverage? coming through from the lower volume side too. Craig, could you help me understand that a bit better and where you think those gross margins could revert to in the last fiscal quarter of the year and maybe next year? We would really appreciate any input. Thank you.

Lucas Nathaniel Pipes: Coming through from the lower volume side too Craig if you could help me understand that a bit better and where you think those gross margins could revert to.

Gregory N. Roberts: In the last fiscal quarter of the year and maybe next year, but what would really appreciate any insights you could share. Thank you.

Gregory N. Roberts: Yeah, I think the gross margin percentage is a reflection of what it is in any business. It's, you know, it has to do with our cost of goods as well as what we're able to sell material for. I think that, you know, my rather long explanation of what happened in the corridor really, really answers that question in that. We have.

Gregory N. Roberts: Yeah.

Speaker Change: I think the gross margin percentage is a reflection of of what it is in any business.

Gregory N. Roberts: It has to do with our cost of goods as well as our what we're able to sell it sell material for I think that.

Gregory N. Roberts: My my rather long explanation of what happened in the quarter really really answers that question in that.

Gregory N. Roberts: We have.

Gregory N. Roberts: A Fixed Carry Cost on our inventory that we book every month, and that carry is going to affect what the gross profit margin is. And we have to, obviously, we have to achieve a profit over and above our carry cost. If premiums compress, and we're selling something at a dollar premium that we've historically sold at a $1.50 premium, the gross profit margin, the gross profit in pure dollars, is not only going to go down, but the gross profit percentage is going to be, you know, materially affected by that.

Gregory N. Roberts: Our fixed carry cost on our inventory that we book.

Gregory N. Roberts: Every months and that carry is is going to affect what the gross profit margin is and we have to obviously, we have to achieve a profit over and above our carrying cost.

Gregory N. Roberts: Premiums compress and we're selling something at a dollar of premium that we have historically sold and $1 50 premium.

Gregory N. Roberts: The gross profit margin the gross profit in pure dollars is not only going to go down but the gross profit percentage is going to be materially affected by that I also think it's important to note that when we buy back product.

Gregory N. Roberts: I also think it's important to note that when we buy back product, we have to sell that product both at a wholesale level and at a retail level. So when you look at our business and you look at the DTC contribution, it's difficult for an outsider to really see what percentage of our product is being sold wholesale and what percentage is being sold retail. As we all know, if we're selling a Silver Eagle on JM Bullion at a $4.50 premium over spot price, but we're selling that at a wholesale level at $3.50, the more coins we can sell at JM Bullion, the better our overall gross profit is going to be.

Gregory N. Roberts: We often times have to sell that product both in a hole at a wholesale level or at a retail level. So when you look at our business and you look at the DTC contribution.

Gregory N. Roberts: It's difficult for an outsider to really see what percentage of our product is being sold wholesale and what percentage is being sold retail.

Gregory N. Roberts: As we all know if if we're selling a silver eagle on J M Boy in AD.

Gregory N. Roberts: $4 50 premium over.

Gregory N. Roberts: Over spot price, but we're but we're selling that on a wholesale level at $3 50.

Gregory N. Roberts: The more coins, we can sell at JM bullion.

Gregory N. Roberts: The better where our overall gross profit is going to be any coins. We don't have to wholesale we're going to make more money on and that's a balancing act for us when we manage our inventory all the time is what percentage of product that we sell wholesale and what percentage do we hold and pay carry on so that we can achieve.

Gregory N. Roberts: Any coins we don't have to wholesale, we're going to make more money on. And that's a balancing act for us when we manage our inventory all the time, which is what percentage of product do we sell wholesale, and what percentage do we hold and pay carry on so that we can achieve the ultimate DTC price for the product.

Gregory N. Roberts: The ultimate DTC price for the product.

Gregory N. Roberts: I think that in a very, very good market, if you look back a year ago and compare what happened a year ago versus what's happening in this quarter this year, I would say last year, 90% of our product that we sold was sold through the DTC segment. I would say that that number today, a much, much higher percentage is being sold wholesale and or monetized outside of our retailers, and that's going to affect gross profit negatively.

Gregory N. Roberts: I think that.

Gregory N. Roberts: In a very very good market.

Gregory N. Roberts: You look back a year ago.

Gregory N. Roberts: And you would compare what happened a year ago versus what's happening in this quarter this year.

Gregory N. Roberts: I would say last year, 90% of our product that we sold was being sold through the DTC segment I would say that that that number today are much much higher percentages being sold wholesale.

Gregory N. Roberts: And or monetized outside of our retailers and that's going to affect the gross profit negatively.

Gregory N. Roberts: As it relates to what we can do in the future, I think there's enough data on the company to really go back, and you can see what we can achieve. We just talked about what we achieved last quarter a year ago, and what we achieved last quarter just two months ago. I made a comment that I thought the January, February, March period of calendar 24 was what we would view as kind of a low watermark.

Gregory N. Roberts: As it relates to what we can do in the future I think there is enough data on the company to really go back and you can see what we can achieve.

Gregory N. Roberts: Just talked about what we achieved last quarter.

Gregory N. Roberts: A year ago, what we achieved last quarter, just two months ago I made comment that I thought the January February March period of calendar 'twenty four.

Gregory N. Roberts: Was what we would view as a kind of a low watermark I feel like we are very optimistic and enthusiastic about what we've seen in the last four or five weeks.

Gregory N. Roberts: I feel like we are very optimistic and enthusiastic about what we've seen in the last four or five weeks. We'll see if that plays out in May and June, but we know how much the company can generate. The company can generate huge amounts of money in a good market. The company continues to grow and grow through M&A and acquire new customers and grow our credit facilities and our liquidity so that the company, if given the opportunity, could do 50% more in top line sales if we were given the opportunity.

Gregory N. Roberts: We'll see if that plays out in.

Gregory N. Roberts: In May and June.

Gregory N. Roberts: But we know how much the company can generate the company.

Gregory N. Roberts: Can generate huge amounts of money in a good market the company continues to grow.

Gregory N. Roberts: And growth through M&A and grow new customers and.

Gregory N. Roberts: And grow our our credit facilities and our liquidity.

Gregory N. Roberts: So that the company if given the opportunity of the company could could could do 50% more in top line sales. If we were given the opportunity so.

Gregory N. Roberts: I've been doing this a long time, and I can say that January and February were probably a little bit worse than I would have expected them to be if I had been sitting in November or December, but we still performed, and we still had a good return, and I feel like we're optimistic about how this quarter is going.

Gregory N. Roberts: I I've been doing this a long time and I can I can say that January and February were probably a little bit a little bit worse than I would've expected them to be if I was sitting in November December but.

Gregory N. Roberts: We still performed and we still had had a good return and I and I feel like we are.

Gregory N. Roberts: We're optimistic about how this quarter is going.

Lucas Nathaniel Pipes: Thank you. And just to follow up, can you expand on kind of those last four to five weeks? What do you think? Unknown Speaker. Stronger demand, less supply. Just, I know you commented earlier on it too, but if you could maybe zero in on this, I would appreciate your insights.

Speaker Change: Thank you.

Speaker Change: Just a follow up.

Lucas Nathaniel Pipes: Can you expand on on kind of those last four to five weeks, what what do you think.

Speaker Change: Changed is it.

Lucas Nathaniel Pipes: Stronger demand.

Lucas Nathaniel Pipes: Less supply.

Lucas Nathaniel Pipes: I know you commented earlier on it too, but if you could maybe.

Lucas Nathaniel Pipes: Zero in on this I would I would appreciate your insights.

Gregory N. Roberts: I will say that there are probably a hundred factors that go into answering the question, but I'll try to hit on the most basic ones.

Speaker Change: I will I will say that there are probably 100 factors that go into answering the question I'll try to hit on the most basic ones.

Gregory N. Roberts: You know, if you see a high percentage of product being sold into the marketplace from retail investors who have stopped buying and have decided they're going to take their profits at these all-time record spot prices, there's a whole period of reckoning for that retail customer. And I think that we went through a period in January and February where a high percentage of retail customers felt like it had the last 10 years, when gold tried to make a new high, and then it didn't do it, and it fell back.

Gregory N. Roberts: If you see a higher percentage of product being sold into the marketplace from retail investors, who have stopped buying and have decided they are going to take their profits at these all time record spot prices Theres, a whole period of reckoning for that.

Gregory N. Roberts: Retail customer.

Gregory N. Roberts: And I think that we went through a period in January and February were.

Gregory N. Roberts: I think you had a high percentage of retail customers selling back into the marketplace and monetizing, putting their money to work someplace else, or just taking a profit. And you had a little bit of a herd mentality there.

Gregory N. Roberts: A high percentage of retail customers felt like it had the last 10 years, where gold tried to make a new high and then it didn't do it and it fell back.

Gregory N. Roberts: Thank you had a high percentage of retail customers selling back into the marketplace and monetizing putting their money to work someplace else or just taking a profit.

Gregory N. Roberts: And you had a little bit of a herd mentality there.

Gregory N. Roberts: As gold continued to make new highs what we've seen in the last five weeks as a reversal of that where you have a not an increased demand, but you've had a similar demand, which which has has been.

Gregory N. Roberts: As gold continued to make new highs, what we've seen in the last five weeks is a reversal of that, where you have not increased demand, but you have had a similar demand, which had been going on in the last couple of months. But what you've seen is a drop in the buybacks or wholesale purchases. And as the premiums have dropped over the last four months, it's just become less profitable for people to make product, for sovereign mints to make product, and for private mints to make product.

Gregory N. Roberts: Had been had been going on in the last couple of months, but what you've seen is a drop in the buybacks or the wholesale purchases and as the premiums have dropped over the last four months, it's just become less profitable for people to make product for sovereign mints to make product for private mints to make product and so you're slowly.

Gregory N. Roberts: And so you're slowly seeing a little bit of a decrease on the supply side of the equation, and that's causing us to see some premium increases. And as I pointed out, the mint has been making the same amount of Silver Eagles, and the allocation has been the same for the last five to six months. And what we've seen is premiums go up. So you can't attribute that to much anything other than, as I said, buyers increasing their demand for Silver Eagles, and sellers stopping, maybe slowing down, or not selling as many Silver Eagles into the marketplace.

Gregory N. Roberts: Are we seeing a little bit of a decrease in the supply side of the equation and thats, causing us to see some premium increases.

Gregory N. Roberts: And as I pointed to.

Gregory N. Roberts: The menu has been making the same amount of silver Eagles and the allocation has been the same for the last five to six months and what we've seen is premiums go up so you can't attribute that had much anything other than.

Gregory N. Roberts: As I said buyers increasing their demand for silver Eagles, and sellers start maybe slowing down or not selling as many silver eagles into the marketplace. So.

Gregory N. Roberts: So you know, I think it's a number of things, but I think that's what we've really seen is that we've seen a slight uptick in demand, particularly in the last few weeks of April. And we've seen less product that we're buying back from a wholesale standpoint.

Gregory N. Roberts: I think it is a number of things, but I think that's what we've really seen is we've seen a slight slight uptick in demand, particularly.

Gregory N. Roberts: The last few weeks of April.

Gregory N. Roberts: And we've seen.

Gregory N. Roberts: Less product that we're buying back from a wholesale standpoint.

Lucas Nathaniel Pipes: That is very helpful. I appreciate that. Thank you and best of luck.

Speaker Change: That is a that is very helpful. I appreciate I appreciate that thank you and vessels.

Lucas Nathaniel Pipes: Best of luck. Thank.

Speaker Change: Thank you.

Operator: Thank you. Once again, everyone, if you have any questions or comments, please press star and then one on your phone. Your next question is coming from Andrew Scutt from Roth M-K-M. Your line is live.

Speaker Change: Thank you once again, everyone. If you have any questions or comments. Please press star then one on your phone.

Andrew Scutt: Your next question is coming from Andrew Scott from Roth M km. Your line is live.

Andrew Scutt: Thank you for taking my question. Quick one for me, with the kind of market in the state that's been slower over the last few months, does that kind of open up a unique opportunity in the M&A market? And yes, I mean, are you guys looking to be active? Yeah, but yeah, what what what? One word.

Andrew Scutt: Hey, guys. Thank you for taking my question question quick one for me with Canada market and you will see that.

Andrew Scutt: Lower.

Andrew Scutt: Last few months is that kind of open up a unique opportunity in the M&A market.

Andrew Scutt:

Andrew Scutt: And yes, I mean are you guys looking to be active.

Andrew Scutt: Yeah.

Gregory N. Roberts: One word answer? Yes. I can say that, you know, after we close the LPM deal, I probably got five calls of opportunities on the M&A side. I think, you know, I think it's important for everybody to remember how much liquidity A-Mark has, whether it be our book value, whether it be our tangible net worth, whether it be our repo facilities, our lease lines, our dollar facilities. We have, as I said before, we are the ultimate destination when people need to monetize inventory, but we are also in the market looking for more deals, and we don't have a tremendous amount of competition there.

Speaker Change: One word one word answer yes.

Gregory N. Roberts: I can say that after we close the L. P M deal.

Gregory N. Roberts: I, probably got five calls of opportunities on the M&A side.

Speaker Change: Thank you.

Gregory N. Roberts: I think it's important for everybody to remember how much how much liquidity a mark has whether it be.

Gregory N. Roberts: Our book value, whether it be our tangible net worth whether it be our repo facilities are leased lines. Our dollar facilities. We have as I said before we are the ultimate destination when people need to monetize inventory, but we are also are in the in the market looking.

Gregory N. Roberts: For more deals and we don't have a tremendous amount of competition. There I think that as I've said before.

Gregory N. Roberts: I think that, as I've said before, as things slow down, it becomes harder to compete with A-Mark, and I've talked to a number of people who are just interested in exploring whether or not, in a slower market, they might be able to do better with A-Mark than compete with A-Mark, and that could be on the DTC side, the wholesale side, the international side.

Gregory N. Roberts: As things slow down.

Gregory N. Roberts: It becomes harder to compete with a mark and I've talked to a number of people who are are just interested in exploring whether or not.

Gregory N. Roberts: In a slower market they might be able to do better with a mark than competing with a mark and that could be on the DTC side, the wholesale side the international side.

Andrew Scutt: We are really well positioned, and I think that closing the LPM deal, as we talked about and as we did last quarter, we're very pleased with Charlie and his people in Hong Kong. We're looking at possible expansion in that region. We're taking a good look at the Singapore region, and this little bit slower market in the last six months just opens up opportunities, and I think it gives us a little bit more leverage to negotiate a better deal than we're going to be able to do when the markets are screaming and everybody's making millions of dollars, and it just makes it harder to reach a deal.

Gregory N. Roberts: We are really well positioned and I can.

Andrew Scutt: I think that the closing the L. P M deal as we as we talked about and as we did last quarter.

Andrew Scutt: We're very pleased with with Charlie and his people in Hong Kong.

Andrew Scutt: We're looking at possible expansion in that region. We're taking are taking some taking a good look at the Singapore region and.

Andrew Scutt: That this little bit slower markets.

Andrew Scutt: In the last six months, just opens up opportunities and I think it gives us a little bit more leverage to negotiate a better deal than we're going to be able to do when the markets are screaming and everybody's making millions of dollars in and it just makes it harder to negotiate a deal. So I think as I said in the last call.

Andrew Scutt: I think, as I said in the last call, we're going to continue to go with the four elements of how we deploy capital, and we're regularly looking at where we get the best return for our capital, and I feel like we're doing a really good job, whether it's buying back stock. We bought back a very large chunk of stock in this last quarter, as we just reported. I felt like we were opportunistic at the price we bought it at.

Andrew Scutt: We're going to continue to go with the.

Andrew Scutt: With the four elements of how we deploy capital and we're regularly looking at where we get the best return for our capital and I feel like we're doing a really good job, whether it's buying back stock.

Andrew Scutt: We bought back.

Andrew Scutt: At a very good chunk of stock in this last quarter as we just reported I felt like we were opportunistic at the price we bought it at we closed an M&A transaction I'm very very happy with that we look to pay down debt.

Andrew Scutt: We closed an M&A transaction. I'm very, very happy with that. We look to pay down debt, if possible, and we also look to make sure that we return value to shareholders through our dividends, and that is a continual juggling act. We can throw in opportunistic inventory purchases for our capital. We can look at that, too, but all of those things, I spend a great deal of time talking to Thor and Kathleen and talking to the other team members here about just checking ourselves and regularly double-checking whether we are spending our capital and investing our capital in areas that are going to create the best shareholder return, whether it be RQ4 right now or whether it be RQ4 three years from now.

Andrew Scutt: If possible and we are.

Andrew Scutt: We also look to make sure that we return value to shareholders through our dividends and that that is a continual.

Andrew Scutt: Juggling Act. We also we can throw in inventory opportunistic inventory purchases for our capital we can look at that too but.

Andrew Scutt: But all of those things as you know I do spend a great deal of time talking to foreign Kathleen and talking to the other team members here about.

Andrew Scutt: Just checking ourselves and regularly double checking are we spending our capital and investing our capital in areas that are going to create.

Andrew Scutt: Create.

Andrew Scutt: Best shareholder return, whether it be our Q4, right now or whether it be our Q4 three years from now.

Andrew Scutt: We're very optimistic about this machine we built. We think it's set up great to take advantage of all market conditions. As we've said before, we're a very lumpy business, and our biggest job here is to keep capital ready to deploy and never get caught short, and to make sure that the machine is ready to take advantage of whatever the market gives us. I feel great about what we did last quarter. I know it may disappoint some people, and I feel even better about what I saw at the end of March and what I saw in April. We're actually looking forward to the next few quarters. Thanks for that. And It's great to hear. Actually, just one more for me.

Andrew Scutt: We're very optimistic about this machine. We built we think it's set up great to take advantage of all market conditions as we've said before we're a very lumpy business.

Andrew Scutt: And our biggest job here is to keep keep capital ready to deploy and never get caught short and to make sure that that that that the machine is ready to take advantage of whatever the market gives us and I feel great about what we what we did last quarter I know it may disappoint some people.

Andrew Scutt: Paul.

Andrew Scutt: And I feel.

Andrew Scutt: Even better about what I've seen the end of March and what I've seen in April so.

Andrew Scutt: We're looking forward, we're actually looking forward to the next few quarters.

Gregory N. Roberts: So kind of in a, you know, rampant demand market, the mints, you know, how you leverage those assets, you push out product, but can you maybe speak to when the market is quieter, how you're able to leverage these mints, maybe in a different way?

Speaker Change: Well, thanks for that and great here and actually have just one more from me so kind of in a in a rapid demand marketing.

Speaker Change: The minutes.

Speaker Change: How you leverage those assets.

Gregory N. Roberts: Pushout product, but can you maybe speak to win when the market is required or how you are you able to leverage these events.

Speaker Change: Maybe in a different way.

Gregory N. Roberts: Um, yeah, I mean, I think that both Sunshine and Silvertown are very adept, and we've built businesses there that are able to switch products very quickly. You know, we might be making 10 ounce silver bars one week; we might be making 100 ounce silver bars the next week.

Speaker Change: Yeah, I mean I.

Gregory N. Roberts: I think that.

Gregory N. Roberts: Both Sunshine and silver town are very adept and we've built businesses there that are able to switch products very quickly.

Gregory N. Roberts: We might be making 10 ounce silver bars, one week, we might be making 100 ounce silver bars. The next week, we can switch very quickly and we're very good at that and wherever the demand is that we're going to fill it and we're going to fill it cheaper than anybody else and that's what this vertically integrated model does and we've.

Gregory N. Roberts: We can switch very quickly, and we're very good at that. And wherever the demand is, we're going to fill it, and we're going to do it cheaper than anybody else. And that's what this vertically integrated model does. And, you know, we've seen that right now. You know, our ability to sell silver products through the DTC channel and our ability to make the products cheaper than most anybody is just part of our, you know, part of our advantage. And, you know, we're always thinking about what we're going to make next week, what we're going to make next month, and I think we're very good at that.

Gregory N. Roberts: Seen that right now.

Gregory N. Roberts: Our ability to sell silver products through the DTC channel and our ability to make the product cheaper than than most anybody.

Gregory N. Roberts: Is is just part of our part of our advantage in.

Gregory N. Roberts: We're always viewing what we're going to make next week, what we're going to make next month and I think we're very good at that.

Andrew Scutt: are great. Thanks again, and I'll hop back in the queue.

Speaker Change: Oh, great, Thanks, Dan and I'll hop back into queue.

Andrew Scutt: Hey.

Operator: Thank you. Once again, everyone, if you have any questions or comments, please press star, then 1 on your phone. Your next question is coming from Greg Gibas from Northland Securities. Your line is live.

Speaker Change: Thank you once again, everyone. If you have any questions or comments. Please press star then one on your phone.

Gregory Thomas Gibas: Your next question is coming from Greg give us from Northland Securities. Your line is live.

Gregory Thomas Gibas: Hey, good afternoon, Greg, Kathleen, and Thor. Thanks for taking the questions. You know, I think you kind of fairly addressed what's kind of driving that software demand in Q1. And it's nice to hear that it's, you know, picking up at least in April.

Gregory Thomas Gibas: Hey, good afternoon, Greg caffeine for thanks for taking the questions.

Gregory Thomas Gibas: I think you've kind of fairly addressable kind of driving that softer demand in Q1, and nice to hear that it's picking up at least in April.

Gregory N. Roberts: So I kind of wanted to direct my question first on the follow up. I'm, you know, seeing pretty attractive M&A opportunities, is what it sounds like. You know, congratulations on the expansion to Asia with LPM. Just wondering, maybe if you could address, you know, how you're evaluating those markets. Like, are you seeing any markets that are more favorable than others? And what kind of makes sense to you? Because it sounds like there's some attractive opportunities.

Gregory Thomas Gibas: So kind of wanted to direct my question first on the follow up.

Gregory N. Roberts: You know being pretty attractive M&A opportunities is what it sounds like.

Gregory N. Roberts: Congrats on the expansion into Asia with L. P M.

Gregory N. Roberts: Wondering maybe if you could address how youre evaluating those markets like are you seeing anyone.

Gregory N. Roberts: Markets that are more favorable than others.

Gregory N. Roberts: And what kind of makes sense because it sounds like there's some attractive opportunities.

Gregory N. Roberts: Yes, I mean, I think we look at, we really look at M&A, whether, you know, in three different sections, whether it be in our minting, whether it be in our wholesale trading, or whether we see it in DTC. One thing about the A-Mark, we have to be thoughtful as it relates to not focusing on any one part of that segment too much because the three segments can then get a little out of whack.

Speaker Change: Yes, I mean I think.

Gregory N. Roberts: We look at we really look at M&A.

Gregory N. Roberts: Whether in three kind of sections, whether it'd be in our minting, whether it be in our wholesale trading or whether we see it and DTC.

Gregory N. Roberts: One thing about a mark we have to be thoughtful as it relates to not focusing on any one part of that segment too much because the three segments can then get a little out of whack. So I think L. P. M was a very intriguing opportunity for us because it combined retail in the region along with.

Gregory N. Roberts: So I think LPM was a very intriguing opportunity for us because it combined retail in the region along with a good deal of wholesale business. So we kind of, you know, we kind of hit two, two areas there on that acquisition, which is good for us. You know, at this point, we feel like our minting, you know, our minting operations are able to keep up with demand. We're clearly expanding our logistics, which is also important that, you know, if we're selling, we're shipping 50,000 packages a month, and we're going to ship 150,000 packages a year and a half from now, because of our, you know, M&A growth in DTC, we need to balance and make sure that we can still handle all of the, you know, all of the logistics side of things.

Gregory N. Roberts: A good deal of wholesale business, so we kind of we kind.

Gregory N. Roberts: Hit to two areas there on that acquisition, which is good for us.

Gregory N. Roberts: At this point, we feel like our minting.

Gregory N. Roberts: Our minting operations are able to keep up with demand, we're clearly expanding our logistics, which is also important that.

Gregory N. Roberts: If we're selling we're shipping 50000 packages, one month, and we're going to ship 150000 packages a year and a half from now because of our M&A growth in DTC, we need to balance and make sure that we can still handle all of the all of the logistics side of things so.

Speaker Change: I think we are.

Gregory N. Roberts: So, you know, I think we're, You know, right now. I can say that the areas that we see opportunity are focused on wholesale and DTC, and, you know, I think we're in a good position right now to take either, and it's just cutting the best deal and finding the best opportunity.

Gregory N. Roberts: Right now.

Gregory N. Roberts: I can say that the the areas that we see opportunity.

Gregory N. Roberts: We are focused on the wholesale and DTC.

Gregory N. Roberts: And.

Gregory N. Roberts: I think we're in a good position right now that we would take either and it's just cutting the best deal in finding the best opportunity for us.

Gregory N. Roberts: Perfect, thanks, that's helpful. And, you know, wanted to dive a little deeper, great, even though the challenging conditions, you know, to see the, you know, customer growth, I think 80%. You know, I think you've talked about just kind of newer products or offerings that are attracting those customers. I'm curious, you know, if you could maybe discuss a little bit more what's kind of gaining traction with those new customers in terms of new product offerings or anything like that.

Speaker Change: Perfect. Thanks, that's helpful.

Gregory N. Roberts: Wanted to dive a little deeper great, even though the challenging conditions.

Gregory N. Roberts: See you.

Gregory N. Roberts: Customer growth I think 8%.

Gregory N. Roberts: I think you've talked about just kind of newer products or offerings that are attracting those customers. I'm curious you know what if you could maybe discuss a little bit more on what's kind of gaining.

Gregory N. Roberts: Gaining traction with those new customers in terms of new product offerings.

Gregory N. Roberts: Anything like that.

Gregory N. Roberts: Yeah, I mean, if you register on the JM Bullion site, you'll see what we're offering. I think you'll see we run a Thursday special on products that we believe are going to attract and be interesting to our customer base as well as attract new customers. You know, we've been doing that now for probably eight to 10 weeks, and it's been very beneficial for us. I think that you know, we don't.

Gregory N. Roberts: Yeah, I mean, I think if you if you.

Gregory N. Roberts: Sure at the JM Boy insight I think you'll see what we're offering I think you'll see we run a <unk>.

Gregory N. Roberts: Thursday special on products that we believe are going to attract and be interesting to our customer base as well as attract new customers. We have been doing that now for probably eight to 10 weeks.

Gregory N. Roberts: And it's been very beneficial for us.

Gregory N. Roberts: I think that.

Gregory N. Roberts: We don't.

Gregory N. Roberts: You know, we move through old inventory that we've had, it's a good, you know, we use DTC to move through old inventory. We move through new custom products. You know, we had an opportunity with a Canadian company, Silvercrest Mines, that we did a JV with them to create a one-ounce silver round, and, you know, Silvercrest is a company in Mexico that has a single mine in Mexico, what I think to be a really good company that I've talked to the principals there and the management there, and, you know, we sold a Silvercrest one-ounce silver round that we developed for Silvercrest on JM Bullion right now, it's being offered and it's a new product, we've never done a mine product before, Silvercrest bought a number of coins from A-Mark, which they're just carrying on their balance sheet for their, you know, for their business and for their shareholders if they want to ever distribute it, and, you know, that's something that we were able to whip up fairly quickly and it was, you know, it went on sale last Thursday and it's been very successful. We could do a sovereign product, we could do a private min product, you know, we try to, to vary what we're offering and then see how the customers respond.

Gregory N. Roberts: We moved through old inventory that we've had it's a good.

Gregory N. Roberts: We use DTC to move through old inventory.

Gregory N. Roberts: We moved through new custom products.

Gregory N. Roberts: Great, that's helpful. Um, I guess the last one for me and sorry, if you've maybe already addressed this, I've been jumping between a few calls.

Gregory N. Roberts: We had an opportunity with a Canadian company Silvercrest mines.

Gregory N. Roberts: We did a JV with them to create a one ounce silver round.

Gregory N. Roberts: And.

Gregory N. Roberts: Silvercrest as a company in Mexico.

Gregory N. Roberts: That has a single mine in Mexico.

Gregory N. Roberts: What I think to be a really good company that I've talked to the to the principals there and the management there and we sold.

Gregory N. Roberts: Silvercrest, one ounce silver around that we developed for silvercrest on on <unk> right now, it's being offered and it's it's it's a new product we've never done a mine product before.

Gregory N. Roberts: Silvercrest bought a number of coins from from a mark which theyre just carrying on their balance sheet for their for their business and for their shareholders, if they want to ever distributed and.

Gregory N. Roberts: That's something that we were able to whip up fairly quickly.

Speaker Change: And it was it.

Gregory N. Roberts: It went on sale last Thursday, and it's been very successful.

Gregory N. Roberts: We could do a sovereign product we could do.

Gregory N. Roberts: Private mint product.

Gregory N. Roberts: We try to.

Gregory N. Roberts: Very what we're offering.

Gregory N. Roberts: And then see how the customers respond.

Speaker Change: Great. That's helpful. I guess the last one for me and sorry, if you've maybe already addressed this I think I'll, maybe give you a few calls.

Gregory Thomas Gibas: But, you know, Greg, I know you previously commented on Costco and how they're kind of, you know, can be a benefit to the whole industry and just drive interest in new customers that haven't considered it before, just getting in front of a new audience. You know, just given that it's kind of been in the news, and there's been a lot of success with them selling that in stores. Curious if you have any updated thoughts on that, Greg, or if it's kind of the same.

Speaker Change: And Greg I know you previously commented on.

Gregory Thomas Gibas: Costco and how other kind of.

Greg: You know it can be a benefit to the whole industry.

Gregory Thomas Gibas: And just drive interest and new customers that Havent considered it before is getting in front of a new audience.

Gregory Thomas Gibas: Just given it's kind of been in the news and Theres been a lot of success with.

Gregory Thomas Gibas: You know them selling that in stores.

Gregory Thomas Gibas: Curious if you have any updated thoughts on that Greg or kind of thing.

Gregory N. Roberts: I think it would be the same. I think anytime you're introducing a new demographic or a new group of people to Precious Metals, that's ultimately going to be great for A-Mark. I understand that there's some numbers thrown out there that are... Seymour Jacobs, A-Mark Precious, Gregory Roberts, A-Mark Precious, customers, retail customers to our DTC segment. The more customers that are out there that are Googling buy silver or buy gold or whatever they're Googling, you know, they're going to find our DTC brands.

Greg: I think it would be the same I think anytime you're introducing a new demographic or a new group of people to precious metals and that's ultimately going to be great for for a mark.

Gregory N. Roberts: I understand that there's some numbers thrown out there that.

Gregory N. Roberts: Our.

Gregory N. Roberts: Seem very high to me I've seen some numbers that are.

Gregory N. Roberts: What I would say is very optimistic on sales just based on my position in the marketplace and I feel like I'd touch a lot of transactions.

Gregory N. Roberts: I would say that it's good for the market I think we are ultimately as we our job is to attract.

Gregory N. Roberts: Customers retail customers to our DTC segment the.

Gregory N. Roberts: The more customers that are out there that are googling by silver or buy gold or whatever theyre googling.

Gregory N. Roberts: They're going to find.

Gregory N. Roberts: Our DTC brands and our job is to make sure that.

Gregory N. Roberts: And our job is to make sure that we take care of them and we are the best company out there as it relates to customer service, whether we're there for liquidity if a customer wants to sell back their product. And if I know anybody wants us to do third-party shipping for them, we're very happy to do that. Also, you know, we're there to see the market grow. And ultimately, I believe A-Mark will be one of the better, bigger beneficiaries of an expanding market. So I feel the same way I did last quarter.

Gregory N. Roberts: We take care of them and we are the best company out there as it relates to customer service, whether we're there for liquidity if a customer wants to sell back their product.

Gregory N. Roberts: And if I don't know if anybody wants us to to do third party shipping for them, we're very happy to do that also.

Gregory N. Roberts: Or were there to see the market grow and ultimately I believe a mark will be one of them the better bigger beneficiaries of an expanding market. So.

Gregory N. Roberts: I feel the same way I did last quarter.

Gregory Thomas Gibas: Got it. Appreciate the thoughts, Greg.

Speaker Change: Got it I appreciate the thoughts Greg.

Operator: 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. Thank you, everyone.

Gregory N. Roberts: 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.

Gregory N. Roberts: Thank you, everybody. Once again, I appreciate being on the call and supporting A-Mark and learning and understanding what we're doing here and all the employees of A-Mark around the world. Appreciate what they're doing. And again, thanks, everybody, for their support. Have a great rest.

Roberts: Thank you everybody once again.

Gregory N. Roberts: I appreciate being on the call and supporting a mark and learning and understanding what we're doing here and to all the employees of a mark around the world I appreciate what they're doing.

Gregory N. Roberts: And again, thanks, everybody for their support have a great rest of the day.

Operator: Before we conclude today's call, I'd 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 four 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 meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934.

Gregory N. Roberts: Before we conclude today's call I'd like to provide a marks safe Harbor statement that includes important cautions regarding forward looking statements made during this call.

Operator: 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 alike are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095, and the Securities Exchange Act of 1934.

Operator: These include statements regarding expectations with respect to dividend declarations, the amount or timing of any future dividends, future macroeconomic conditions, and the demand for precious metal products and the company's ability to effectively respond to changing economic conditions. 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. Factors that could cause actual results to differ include the following:

Operator: These include statements regarding expectations with respect to the dividend declarations, the amount or timing of any future dividends future macroeconomic conditions and the demand for precious metal products and the company's ability to effectively respond to changing economic conditions.

Operator: 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.

Operator: 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 implement the strategy, the inability to successfully integrate recently acquired businesses, and Changes in the current international political climate, which historically has favorably contributed to demand and volatility in the precious metal markets but also poses certain risks and uncertainties for the company, particularly in recent periods. The potential adverse effects of the current problems in the national and global supply chains

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

Operator: Later than anticipated costs incurred to execute the strategy the inability to successfully integrate recently acquired businesses.

Operator: <unk> and the current international political climate, which historically has favorably contributed to demand and volatility in the precious metal markets, but also poses certain risks and uncertainties for the company, particularly in recent periods.

Operator: 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 Future, 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, Potential negative effects that inflationary pressures may have on our businesses, the ability for companies to expand capacity at Silvertown Mint, the failure of our investee companies to maintain or address the preference of their customer bases, 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.

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

Operator: The future the failure of the Companys business model to respond to changes in them market environment as anticipated changes in computer excuse me changes in consumer demand and preferences for precious metals products generally.

Operator: The potential negative effects that inflationary pressures may have on our businesses the ability to companies to expand capacity at silver town meant that.

Operator: Daily with our invested companies to maintain or address the preference of their customer bases 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 Companys 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. Finally, I'd like to remind everyone that a recording of today's call will be available for replay via a link in the investor section of the company's website. Thank you for joining us today for A-Mark's earnings call. You may now disconnect.

Operator: 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.

Operator: Finally, I'd 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 Change: Thank you for joining us today for a Mark's earnings call you may now disconnect.