Q3 2025 A-Mark Precious Metals Inc Earnings Call
Kelly: Good afternoon and welcome to A-Mark Precious Medal's conference call for the fiscal 3rd quarter and did March 31st, 2025. My name is Kelly and I will be your operator this afternoon.
Kelly: You can find the link to the Investor Relations section at the top of the homepage.
Speaker Change: Joining us for today's call are A-Mark CEO Greg Roberts, president, Thor Gjerdrum, and CFO , Kathleen Simpson Taylor. Following their remarks, we will open the call to your questions.
Speaker Change: Then, before we conclude the call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call.
Speaker Change: I would 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.
Speaker Change: Now, I would like to turn the call over to A-Mark C-E-O, Mr. Greg Roberts, The Flora Shores.
Greg Roberts: Thank you, Kelly, and good afternoon, everyone. Thank you for joining the A-Mark call today.
Greg Roberts: Our third quarter results demonstrated A-Mark's performance during very volatile market conditions.
Greg Roberts: Despite these headwinds, one-time acquisition related costs to 4.6 million and a one-time re-measurement loss of 7 million on our Pinehurst Koenik's change.
Pre-existing equity interest, we delivered 41 million in gross profit.
Greg Roberts: 5.7 million in non-GAAP adjusted net income and 1.3 million in non-GAAP EBITDA.
Greg Roberts: We capitalized on the software market conditions to execute three strategic acquisitions, Pine Hearst Coin Exchange, Spectrum Group International, which closed during the quarter, and AMS Holdings LLC, which closed just after quarter end.
Greg Roberts: These acquisitions have strengthened our competitive position while expanding our footprint into higher margin luxury segments.
Greg Roberts: As we integrate these businesses into A-Mark's infrastructure, we anticipate both immediate and long-term cost efficiencies.
Greg Roberts: Our consolidations efforts will help eliminate operational redundancies while supporting increased transaction volume.
Greg Roberts: Our A-Mark Global Logistics Facility in Las Vegas is fully prepared for the upcoming integration phase.
Greg Roberts: With our hardware upgrade now complete, we have identified numerous opportunities to drive operational efficiencies.
Greg Roberts: We continue to invest in automation, technology, and Las Vegas, enabling us to process higher volumes while reducing operational costs.
Thank you for watching.
Greg Roberts: We also made significant progress with our LPM acquisition, having successfully launched both retail and wholesale trading capabilities.
Greg Roberts: We are optimistic about the long-term growth opportunities in the Asian markets across wholesale and e-commerce channels, and look forward to scaling the LPM brand alongside our other portfolio assets.
Looking ahead, market conditions have shown some modest improvement.
Greg Roberts: With our expanded brand portfolio and substantial optimization opportunities, we remain confident in A-Mark's long-term growth trajectory and our continuing ability to deliver shareholder value.
Speaker Change: Now, I will turn the call over to CFO Kathleen Simpson-Taylor, who will provide a more detailed overview of our financial performance. Following that, our President Thor Gjerdrum will discuss our key operating metrics.
Speaker Change: Finally, I will offer further insights into the strategic direction and growth in this issue is driving our business. Kathleen?
Thank you, Greg, and good afternoon everyone.
Speaker Change: Our revenues for fiscal Q3 2025 increased 15% to $3 billion from $2.6 billion in the same year-ago
Speaker Change: Excluding an increase of 155.8 million of forward sales, our revenues increase 242.7 million or 18%
Speaker Change: which was due to higher average selling prices of gold and silver partially offset by a decrease in gold and silver ounces sold.
Speaker Change: The DTC segment contributed 19% and 13% of the consolidated revenue in the fiscal third quarters of 2025 and 2024 respectively.
Speaker Change: J&B's revenue represented 10% of the consolidated revenue for the fiscal third quarter of 2025, compared with 12% for the prior year fiscal third quarter.
Speaker Change: For the nine months period, our revenues increased 18% to 8.5 billion from 7.2 billion in the same year ago period.
Speaker Change: Excluding an increase of 540.5 million of forward sales, our revenues increase 752 million.
Speaker Change: or 18.3%, which was due to higher average selling prices of gold and silver partially offset by a decrease in gold and silver ounce of gold.
Speaker Change: The GTC segment contributed 19% and 14% of the consolidated revenue for the nine months ended March 31st, 2025, and 2024, respectively.
Speaker Change: Revenue, contributed by JMB, represented 11% of the consolidated revenues for the nine months and at March 31, 2025, compared with 13% in the same year ago period.
Speaker Change: Gross profit for fiscal Q3 2025 increased 18% to 41 million or 1.36% of revenue from 34.8 million or 1.33% of revenue in Q3 of last year.
Speaker Change: Gross Profit, contributed by the DTC segment, represented 61% and 52% of the consolidated Gross Profit in the fiscal third quarters of 2025 and 2024 respectively.
Speaker Change: Gross Profit Contributed by J.M.B., represented 40% of the consolidated gross profit in Q3 2025 compared to 45% in Q3 of last year.
Speaker Change: For the 9-month period, gross profit decreased 1% to 129.3 million or 1.53% of revenue, from 130.3 million or 1.82% of revenue in the same year ago period.
Speaker Change: The decrease in gross profit was due to lower gross profits earned from the wholesale sales and ancillary services segment partially offset by an increase in gross profits earned by the DGC segment.
Speaker Change: Gross Profit contributed by the DTC segment represented 57 percent of the consolidated gross profit for the nine months ended March 31st, 2025, compared to 47 percent in the same year
Speaker Change: Gross Profit Contributed by J.M.B., represented 38% and 40% of the consolidated gross profit for the nine months ended March 31st, 2025 and 2024, respectively.
Speaker Change: S-GNA expenses for fiscal Q3 2025 increased 46% to 33.4 million from 22.9 million in the same year ago quarter.
Speaker Change: An increase in compensation expense, including performance-based accruals of 3.4 million, higher advertising costs of 1.5 million, and an increase in facilities expense of 0.7 million.
Speaker Change: Selling General and Administrative Expenses also include 8.7 million of expenses incurred by LPM, Tinthurst, SGB, and SGI, which were not included in the same year ago period as they were not yet consolidated subsidiaries for the full period.
Speaker Change: For the 9-month period, SGNA expenses increased 28% to 85.8 million from 67.1 million in the same year-ago period.
Speaker Change: An increase in advertising costs of 3.2 million, an increase in facilities expense of 1.5 million, and increase in information technology costs of 0.4 million, and an increase in insurance costs of 0.2 million.
Speaker Change: Selling General and Administrative Expenses for the 9-month-ended March 31, 2025 include 19.2 million of expenses incurred by LPM.
Speaker Change: Pinehurst, SGB, and SGI, which were not included in the same year ago period as they were not yet consolidated subsidiaries for the full period.
Speaker Change: Depreciation and amortization expense for fiscal Q3 2025 increased 69% to 5 million from 2.9 million in the same year ago quarter.
Speaker Change: of 2.4 million related to the intangible assets acquired through our acquisitions of LPM, Kindhurst, an SGI, and our acquisition of a controlling interest in SGB.
Speaker Change: This was partially offset by a decrease in J&B intangible acid amortization of 0.6 million.
Speaker Change: For the nine months period, depreciation and amortization expense increased 68% to 14.3 million from 8.6 million in the same year ago period.
Speaker Change: The change was primarily due to an increase in amortization expense of $6.8 million related to intangible assets acquired through our acquisitions of LPM, Pinehurst, and SGI.
Speaker Change: and our acquisition of a controlling interest in SGB. This was partially offset by a decrease in J.M.B. intangible acid amortization of 1.7 million.
Speaker Change: Interest Income for Fiscal Q3 2025 increased slightly 0.6% to 6.7 million from 6.7 million in the same year-ago quarter.
Speaker Change: The aggregate increase in interest income was due to an increase in other finance product income of 0.4 million and a decrease in interest income earned by the secured lending segment of 0.4 million.
Speaker Change: For the 9 month period, interest income increased 8% to 20.6 million from 19.1 million in the same year ago period.
Speaker Change: The aggregate increase in interest income was due to an increase in other finance product income of 1.7 million and a decrease in interest income earned by our secured lending segment of 0.2 million.
Speaker Change: Interest expense for fiscal Q3 2025 increased 31% to 13 million from 9.9 million in the same year-ago quarter. The increase in interest expense was primarily due to an increase of 2 million related to product financing arrangements and 0.9 million from liabilities on borrowed metals.
Speaker Change: For the nine-month period, interest expense increased 11% to 33.3 million from 29.9 million in the same year ago period.
Speaker Change: The increase in interest expense was primarily due to an increase of 2.9 million related to product financing arrangement.
An increase of 1.6 million from liabilities on borrowed metals.
Speaker Change: and an increase of 1.3 million associated with our trading credit facility, due to increased borrowings as well as an increase in the weighted average effective interest rate.
Speaker Change: This was partially offset by a decrease of 2.5 million related to the AMCF notes, including amortization of debt issuance costs due to their repayment in December 2023.
Speaker Change: Laws is from equity method investments in Q3 of fiscal 2025, a 0.2 million remain consistent with the same year ago quarter.
Speaker Change: For the nine month period, earnings from equity methods investments decreased 163% to a loss of 2.1 million from earnings of 3.3 million in the same year ago period. The decrease was due to decreased earnings of our equity method invests. The decrease was due to increased earnings of 3.3 million in the same year ago period.
Speaker Change: Net loss attributable to the company for the third quarter of fiscal 2025 totaled 8.5 million or 36 cents lost per diluted share compared to net income of 5 million or 21 cents per diluted share in
Speaker Change: For the nine month period, net income attributable to the company totaled $7 million or $0.29 per diluted share compared to net income of $37.6 million or $1.56 per diluted share in the same year ago period.
Speaker Change: for Q3 fiscal 2025 totaled 5.7 million, a decrease of 5.9 million or 51 percent compared to 11.6 million in the same year ago quarter.
Speaker Change: The decrease was primarily due to lower net income before provision for income taxes of 16.4 million.
Speaker Change: The contingent consideration for value adjustment of 1 million partially offset by higher acquisition costs, 2.4 million higher amortization of acquired intangibles of 1.8 million and the one time re-measurement loss on our pre-existing equity interest in prime-hurst of 7 million.
Speaker Change: Adjusted net income before provision for income taxes for the nine-month period totaled 33.9 million, a decrease of 26.2 million or 44 percent compared to 60.1 million in the same year ago period.
contingent consideration fair value adjustment of 1.1 million.
Speaker Change: This was partially offset by higher amortization of acquired intangibles of $5.1 million, higher acquisition costs of $2.6 million, and the one time remeasurement loss on our pre-existing equity interest in Pinehurst of $7 million.
Speaker Change: Hibidaz, a non-GAF liquidity measure for Q3 totaled $1.3 million, a decrease of $11.3 million or 90% compared to $12.6 million in the same year-go quarter.
Speaker Change: The decrease was primarily due to lower net income of 14 million partially offset by the exclusion of higher interest expense of 3 million.
Speaker Change: Ibadah for the 9-month period totalled 35.3 million, a decrease of 32.9 million or 48 percent compared to 68.2 million in the same year ago periods. The decrease was primarily due to lower net income of 32.4 million.
Turning to our balance sheet.
Speaker Change: At quarter-end, we had 114.3 million of cash compared to 48.6 million at the end of fiscal year 2024. Our tangible net worth, excluding non-controlling interest, at the end of the quarter was 315.7 million up from 306.0 million at the end of the prior fiscal year.
Speaker Change: During the quarter we amended our credit facility and now have a revolving kit limit of 467 million.
Speaker Change: 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 . It is expected that the next quarterly dividend will be paid in August 2025.
Speaker Change: 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 Gjerdrum: Thanks, Jadling. Looking at our key operating metrics for the third quarter of fiscal 2025, we sold 432,000 ounces of gold in Q3 fiscal 2025, which was down 3% from Q3 at the previous year and down 7% from the prior quarter.
Thor Gjerdrum: For the night month period, we sold 1.3 million ounces of gold, which is down 7% from the same year at Oak Period.
Thor Gjerdrum: We sold 15.7 million ounces of silver in Q3 fiscal 2025, which is down 39% from Q3 of the previous year and down 28% from the last quarter. For the 9 month period, we sold 58.0 million [inaudible]
Thor Gjerdrum: from Q3 of last year and increased 1,276% for the prior quarter. For the three-month period ended March 31, 2025, approximately 84% and 9% of the new customers were attributable to the acquisitions of piers and SGI respectively.
Thor Gjerdrum: For the 9 month period, the number of new customers in the DTC segment was 1,020,300, which is up 588% from 148,200 new customers in the same year-go period.
Thor Gjerdrum: for the 9-month period in March 31, 2025, approximately 74%, and 8% of the new customers were attributable to the acquisitions of PINERS and SGI respectively.
Thor Gjerdrum: The total number of customers in the DGC segment at the end of the third quarter was approximately 4.1 million, a 64% increase from the prior year. The year over year growth was driven by organic expansion of our customer base, and the acquisitions of pioneers, SGI, and the acquisition of a non-controlling interest in SGB.
Thor Gjerdrum: which is up 45% from Q3 fiscal 2024 and a 3% decrease from the prior quarter. For the nine-month period, the DTC average order value was $3,080 which is up 37% from the same year ago period.
Thor Gjerdrum: For the fiscal third quarter, our inventory turn ratio was 2.4, a 4% increase from 2.3 and Q3 of the previous year and a 9% increase from 2.2 in the prior quarter.
Thor Gjerdrum: For the nightmare period, the inventory turn ratio was 6.9% increase from 6.8% in the same year
Thor Gjerdrum: Finally, the number of secured loans at the end of March, total 491, a 27% decrease from March 31, 2024, and a 5% decrease from the end of December .
Thor Gjerdrum: The value of the low portfolio as of March 31, 2025 was 86.5 million, 25% decrease from the prior year period, and it's 12% decrease from December 31, 2024.
Thank you, Thor and Kathleen.
Greg Roberts: We are focused on integrating our recent acquisitions and driving efficiencies throughout the businesses to close out the fiscal year. We are excited about the new markets that we have entered and will be operating in.
Thor Gjerdrum: Our commitment to generating stockholder value remains firm and we are confident A-Mark's diversified and proven business model. That concludes my prepared remarks, operator.
Speaker Change: Thank you. The floor is open for questions. If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on a speaker phone to provide optimum sound quality. Please hold just a few moments while we pull for any questions.
Hey, good afternoon. Thank you for taking my questions.
Speaker Change: First one for me here in April , kind of golden and silver prices saw a little bit of volatility. So can you just kind of talk about what you've seen in the market, tier quarter to date?
Speaker Change: Yeah, we saw, you know, post-aple second, we saw an increased level of activity.
Speaker Change: We were happy to see that, based on what we went through the quarter we just described. But yes, in the first couple of weeks of April , we were very active and believe the business
Speaker Change: Very efficiently. Things have slowed down a little bit the last week or two, but you know, all in all, A-Bro was a very solid month for us.
Speaker Change: Great here. Thank you for the call. Our second one for me, and then I'll jump back in the queue. Kind of a tangent from the core business, but recently you guys have gotten more into the collectible space. Can you just kind of talk about the progress you've seen there and the outlook on the business? [inaudible]
Speaker Change: Sure, you know, as we have communicated, we close the SGI deal as well as the Pinehurst deal within the quarter RQ-3.
Speaker Change: We've done a good job in my opinion of integrating the businesses and the businesses are our
Speaker Change: Operating as we would expect them to. I think the market has been active in the collectible space particularly at the Stax Bowers division. They had some very impressive auctions with great demands in April .
Speaker Change: and I think the overall market for the collectibles, although historically has been driven a bit by precious metal prices, happy with the demand and the execution at collectible side of things.
Speaker Change: Perfect. Well, it's great to hear and I'll jump back into queue.
Thank you for your time.
Speaker Change: Your next question is coming from Thomas Forte with Maxim Group. Please pose your question. Your mine is live.
Thomas Forte: Great, so first off, for Kathleen, I wanted to offer her congratulations and best wishes and then Greg, I had two questions and then also I want to get back in the queue as well, so I have a lot of questions.
Speaker Change: So, can you explain how backwardation impacted your results? And when was the last time A-Mark experienced
Speaker Change: You know, there were some similarities to what happened then versus what happened to us through most of February and March and part of January . In general
Speaker Change: And throughout most of, you know, as we've been reporting, and as we've been a public company, the company carries a very large short position, which hedges our inventory. So if you look at our balance sheet and you look at...
Speaker Change: You know, the rising cost of spot price of metal, that increases our carrying cost, A, through borrowings on our dollar lines.
Speaker Change: The tariff uncertainty, and as we moved closer to April 2nd, there was a significant fear that precious metals and bullion would be subject to tariffs.
Speaker Change: Disruption in the normal Contango market, where as you're short metal, as you go out
Speaker Change: Out on the curve, you're going to get paid to be short [inaudible]
Speaker Change: The difference in backwardation is that you're paying to be short and it's a flip.
Speaker Change: You know, from what we normally earn in Contango, so it is a part of our trading revenue and our gross profit.
Speaker Change: and it did disrupt our GP in that area, fairly significantly, in February and March. At the same time we create liquidity through leases and through repo.
Speaker Change: and the rates on those borrowing facilities also increased, so we saw an increased level of borrowing.
Speaker Change: on April 2nd when the administration became more specific on what was going to be tariffed and what wasn't.
Speaker Change: There was an exemption for precious metals in bullion, and since then...
Speaker Change: The markets have gone back to a much more normal and historic level. Now, it takes a little while for backwardation to go back to Contango, but as we are rolling our positions today, as we roll them out, and we roll out to the future.
Speaker Change: at Pre-Tariff World. So, you know, it was a negative and it was a big headwind on the business in mostly February and March, but what we're seeing today is a much more normalized situation.
Ruffet.
Thank you, Doug.
Speaker Change: It's a bit of a complex situation and there's a lot to digest there.
Speaker Change: Yep, so that was very helpful. Let me ask one of my second question, and then let me get back in the queue for some more. So at a high level, how should we think about A-Mark's earnings power in a period of macroeconomic uncertainty but a one-way trade in gold?
Speaker Change: Yeah, I mean, it's interesting. We talk about this all the time. If you go back historically with A-Mark.
Speaker Change: We make most of our money in a very active silver market, so, in general, premiums and margins for us are higher on silver than in gold.
Speaker Change: You know, what we've seen the last six or eight months as gold continues to hit new highs.
You know, almost every month it seems like.
Speaker Change: We did see the company and the earnings power perform very well in a gold-dominated market.
Speaker Change: and Ian Market Conditions, where really over the last 12 months...
Speaker Change: Silver has been left behind, and as you just look at the ratio between silver and gold, it's trading at really unprecedented numbers for any extended period of time. You're up over a hundred acts between silver and gold. So it's clear that the...
left it.
Speaker Change: The Precious Meadows markets right now are very dominated by gold and we believe they're very dominated by central banks and institutional buying and the smaller Precious Meadows buyer that historically has bought silver.
Speaker Change: Up to this time, we haven't seen anything to indicate that there's a level of fomo or frothiness that is trickling down to the silver buyer.
Speaker Change: As we saw silver and gold a few weeks ago, you know, make a new time high, you know, an all-time high in gold and a recent high in silver, we did see our DTC customers know.
Speaker Change: Become a bit more active and actually in communications with customers, we did hear a bit of
Speaker Change: Anxiety and a bit of fear of being left behind, so we're going to see how that plays out, but it is fairly uncharted, you know, with gold at $3,500 an ounce, I just believe there's a little bit of frozen...
Speaker Change: You know, behavior right now as to, you know, his goal going to 5,000, his goal going back to 2,500.
Um...
You know, we, we...
Speaker Change: We're just not sure on that and I think in general the retail purchaser of fabricated precious metals right now is also kind of looking for more direction there.
Speaker Change: On a positive side we've seen some really volatile days over the last three weeks where you've had...
Speaker Change: $100 swings in gold within a day and $1.50 and so forth. So there is certainly uncertainty and I think as
as equities became a bit shaky in early April .
Speaker Change: We realize what we would expect from our customer base is there is a...
Arrgh!
A-Move
Speaker Change: to Safety and there is a move to Precious Meadows, as-
Speaker Change: as a place to go if you're pulling you know pulling out of equity investments. And so...
Speaker Change: We saw a lot of good things, still have not seen enough demand to really affect premiums to the upside, and we'll see how that plays out through the rest of this quarter.
Speaker Change: Thank you. I'm going to get back in the queue. That was very helpful. Thanks, Karin.
Speaker Change: Your next question is coming from Greg Gibas with Northland Securities. Please pose a question, your line is live.
Speaker Change: Hey, good afternoon Greg Thorne, Kathleen. Thanks for taking the questions.
Greg: We've seen A-Mark capitalized on the software conditions, completing those three acquisitions in the quarter. One of the asks what your maybe current stance on acquisitions is and whether your M&A focus is shifted at all following the acquisitions you close in the quarter.
I have found historically that...
Greg: Things aren't really for sale at a price I want to pay when we're at the top.
Greg: Things become available and for sale at the right price when things are, you know, not going in great or when markets are slow.
Greg: I feel very good and confident about the acquisitions we've closed. There are still a number of things we're looking at and I believe we are.
Greg: You know, we are properly positioned that if an opportunity presents itself at what we think is, you know, the best use of capital we will continue to deploy capital in acquisitions. I particularly
Greg: You know, encouraged by what these acquisitions have done positively to our balance sheet, which you know, we'll be putting out.
Greg: with our 10Q, as well as the four million retail customers in the DTC segment that we reported today. Just very large numbers and...
Greg: and through acquisitions we've been able to add to that customer base. And I'm very confident that when the markets do become more favourable and we...
Greg: The customer base is going to significantly outperform a lower number of customers that we had two or three years ago, so I continue to view
Greg: Acquisitions as a great way combined with our organic marketing and new customer growth to add to the customer base that will really propel A-Mark to a new place.
Speaker Change: I got it, very helpful, Greg. A couple of my other questions have been answered, but if I could follow up on how things have turned into post-liberation day, you mentioned a very active first few weeks of April .
Speaker Change: Are you still seeing more favorable elevated customer activity kind of relative to and not that we have a near-term baseline but like kind of maybe normalized demand in a way or it would be helpful if you can kind of characterize like how things are trended post those first two weeks. [inaudible]
Speaker Change: Well, you know, impressive above what we saw in RQ-3 that we're reporting here.
Speaker Change: I will say there does seem to be a bit more of a correlation right now in our businesses as it relates to what the stock market and equities are doing.
Certainly.
Speaker Change: throughout the last week of March and the first couple weeks of April .
Speaker Change: It's clear that, you know, from looking at other companies earnings calls, you know, over the last couple weeks they're just continues to be CEOs that are very uncertain and pulling guidance and there's just a lot of uncertainty.
But there is a-
Speaker Change: At the moment we're seeing a direct correlation that days where the stock market is down two or three percent there's a direct correlation to positive results at the A-Mark level and vice versa when you see the stock market up three percent.
Speaker Change: You know, we're seeing things slow down, so at least at the moment.
Speaker Change: But as I said before, I'm very encouraged. It doesn't take a whole lot for us to see when all 12 cylinders are firing. You know, I'll be at a very small sample size that we're talking about. But the business is...
You know, we definitely saw them perform.
Great to hear. Thank you all. I'll pass it on.
Speaker Change: Once again, if you do have any questions or if you have any follow-up questions, please press star one at the time to enter the queue. Your next follow-up question is coming from Thomas Forte with Maxim Group. Please pose your question. Your vine is live.
Thomas Forte: Great, so I have three, I apologize, that's too many. But I'm- No, you go right ahead, Tom.
Thomas Forte: Okay, thank you, Greg. So, one of the things that seems to happen in a period of elevated gold prices is that longtime gold owners sell their own inventory.
Thomas Forte: Give any visibility on that being exhausted, and then how does that impact your earnings power when you have a lot of existing holders?
selling it in the market.
Thomas Forte: Well, it's just a supply and demand equation. The more long-term holders of precious metals that sell back into the market, it's going to create supply situations that are different than when you have, you know.
Thomas Forte: You know, the reverse of that. And I think I've discussed this a bit before. When you have...
Thomas Forte: have less new material being made. So for every ounce of silver that there's demand for, it comes back into the marketplace through a buyback or through customer liquidation or a long-term holder selling, that's one less, you know...
Thomas Forte: New Silver Round that we make at Silver Town, or New Gold Bar that we make at Sunshine.
Thomas Forte: So it does affect throughout and then it also stunts our trading division on a wholesale level because a lot of our wholesale customers are buying back material and they don't need to buy new material from A-Mark.
Speaker Change: So, that is a metric that I look at every week, and I view it in the...
Speaker Change: You know, is elevate and higher, you're going to have headwinds and you're going to have, you know, less perform, you know, lower performance, which is, you know, this is probably the third or fourth quarter that we've been talking about this and we've been talking about it [inaudible]
Speaker Change: Since, you know, we talked when gold hit at all time high at 2700 and we had elevated, you know, elevated liquidations, when gold hit that spot price, since then, we've...
continued all the way up to 34, 3500.
Speaker Change: Where you have people liquidating and taking profits, whether they've been holding material for 20 years or whether they've been holding material since gold was a 2700, you're going to have a percentage of people that are going to liquidate and they're going to take advantage of these prices.
Speaker Change: I will say that what I did see in the first week or so of April where we had some elevated demand and we had higher numbers as I've discussed, we did see the liquidations and the
Speaker Change: Buies that we were making go down as a percentage of new sales. So, you know, it is fairly...
Speaker Change: You know, it is the numbers and the metrics and the analytics are fairly consistent with what happens.
Speaker Change: and then two weeks ago or a week ago we saw a new high spot price and we did see some elevated liquidations and cellbacks so...
You know, that's what we're seeing.
Speaker Change: and just, you know, operating within the environment and trying to execute as well as we can.
Speaker Change: Great. So then two more. So I'm very impressed by the improvements you've made here at Las Vegas facility or are in the process of making. Does that translate into higher volumes and slightly better margins? How should we think about the financial impact of those improvements?
Speaker Change: You know, very, very impressive and it allows us to bring in more third-party shippers and other third-party inventories into the facility and allows us to ship, sort, pick, and pack.
Speaker Change: Just, you know, a much higher percentage, I think, you know, when this is all said and done, we likely will be able to...
Speaker Change: and just very, very pleased that we took the leap three years ago or four years ago when we first, you know.
Speaker Change: We went to SpaceX and we saw these machines and we saw what they could do and that demonstration, I'm just very pleased that you know we weren't afraid to do it and we went ahead and
Speaker Change: You know, got in the queue to get these machines and they're very impressive what they can do. So...
you know.
Speaker Change: That's certainly going to help us and as it relates to integrating our acquisitions and looking for ways to make our subsidiaries inventory more efficient or inventory light whether it be at asset or pioneer or stocks.
Speaker Change: have more demand out of A-Mark's inventory and have it all in Las Vegas where it can be, you know, accessed, is going to create synergies and create efficiencies and hopefully, you know, have a positive effect on RSGNA.
Thank you. Thank you.
Speaker Change: Okay, last one, I apologize, it just has elements of being a comment and a question so okay so
Speaker Change: One of the wonderful things in my opinion about your business model is the improvements you make over time that position you to capture incremental profits in the next favorable environment.
All the heavyday you've done since that last.
Speaker Change: Trading Environment, but it feels like to me that you're almost like a coiled spring that when the time comes, the earnings will be...
Speaker Change: Very big. So that's the statement part. The question part then is what are your current thoughts on buybacks given where shares are trading?
Speaker Change: As I've said before, and just to respond to your comment,
Speaker Change: As I've said for quite some time now, the goals are to have higher highs and higher lows within similar environments and I believe that is what we're doing here. I mean, I do.
Speaker Change: I am very impressed by our balance sheet, our number of DTC customers.
Speaker Change: You know, our ability to sell $3 billion in a quarter.
Speaker Change: I'll be at it lower margins, which we realize the margins are low right now, but hitting that...
Speaker Change: $3 billion mark, or a $12 billion run rate.
Speaker Change: is going to position us if margins increase that we're going to see tremendous performance. There's no doubt about that.
Speaker Change: So, I agree with your comment, and I think that is what I am trying to build here. That's what we're trying to accomplish and take advantage of things in good markets, as well as bad markets.
Speaker Change: As it relates to our stock buybacks, I'm going to go back to what I always say we look at, you know, four or five different things that we look at every day when we're talking about capital deployment we're looking at.
You know, Inventory Reduction, we're looking at...
Speaker Change: affecting our interest expense. Where we look at dividends, we look at stock buybacks, and we look at acquisitions.
Speaker Change: And, you know, those are very consistent on that. That's what we do. You know, we feel good at the moment in digesting the acquisitions that we have.
Speaker Change: We've closed on. I think there's still work to be done on the integration and making sure we recognize the efficiencies that we have projected.
Thank you.
or a return on investment.
Speaker Change: and I think we're always looking at stock buybacks if we believe that is the best use of our capital. So I'm not precluding anything but I think that...
Speaker Change: We see great opportunity with the market being slow, as I've said before, that we believe that you know, acquisitions, new clients, new clients that come with acquisitions, new DTC customers that come.
Speaker Change: We believe that is a very good long-term use or deployment of capital, so I think we're flexible and open to everything.
Did you know, you got a-
Speaker Change: You gotta stay flexible and we're always looking at this.
and their families. Thank you. Thank you.
unknown: Thank you, Greg, for taking all my questions. I appreciate it.
Speaker Change: At this time, this does conclude our question and answer session. I'd now like to turn the call back over to Mr. Roberts for his closing remarks.
Great. Thank you.
Speaker Change: Again, thanks everybody for being on the call. Thank you for being long-term followers and shareholders. We continue to be positive at A-Mark about what we're accomplishing, where we've been, where we're going.
Speaker Change: And again, we are committed to this, creating shareholder value, and we are going to continue on the mission here. So thank you very much for being on the call.
Speaker Change: During today's call, the report looking statements made regarding future events.
statements that relate A-Mark's future plans, objectives, expectations, performance events.
Speaker Change: and the like-or-for-looking statements within the meeting of the Private Security's Litigation Reform Act of 1995 and the Security Exchange Act of 1934.
Speaker Change: These include statements regarding expectations with respect to the dividend declarations, the amount of timing of any future dividends, future macroeconomic conditions, and a demand for precious metals products, and the company's ability to effectively respond to changing economic conditions.
Speaker Change: Future events, risk and uncertainties, individually or in the aggregate could cause actual results to differ materially from those expressed or implied in these statements.
Speaker Change: These include the following with the respect to the proposed transaction with AMS holdings.
Speaker Change: The failure of the parties to agree on definitive transactions documents, the failure of the parties to complete the contemplated transactions within the currently expected timeline or at all, the failure to obtain necessary third-party consensus or approvals.
Speaker Change: and the greater than anticipated costs incurred to consummate the transactions.
Speaker Change: Other factors that could possibly cause actual results to differ include the failure to execute the company's growth strategy.
Speaker Change: including the inability to identify suitable or available acquisition or investment opportunities greater than anticipated costs incurred to execute the strategy.
Speaker Change: Changes in the current international political climate, which historically has favorably contributed to demand volatility in the precious metals markets.
Speaker Change: Potential Adverts Effects of the Current Problems in the National and Global Supply Change Increased Competition for the Companies Higher Margin Services, which could depress pricing.
Speaker Change: 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 of that inflationary pressure may have on our business.
Speaker Change: The inability of the company to expand capacity at Silver Town Mint.
Speaker Change: The failure of our investing companies to maintain or address the preferences of their consumer bases, general risks of doing business in the commodity markets.
and the Strategic Business, Economic, Financial, Political, and Governmental Risk.
Speaker Change: and other risk factors described in the company's public filings with the Securities and Exchange Commission.
Speaker Change: The company undertakes no obligations, publicly update or reverse any forward-looking statements. Listeners are cautioned not to place undue reliance on these forward-looking statements.