Q4 2025 A-Mark Precious Metals Inc Earnings Call
Speaker #1: Before this, www.amark.com, you can find the link to the investor relations section at the top of the homepage. A-Mark issued its results for the fiscal fourth quarter and full year 2025 in a press release.
Speaker #1: You can find the link to the Dixon. Following their remarks, we will open the investor relations section at the top of the call to your homepage.
Speaker #1: Then, before we conclude, I will provide the necessary cautions regarding the fourth quarter available in the investor relations section on A-Mark's website, as well as the replay link for this call.
Speaker #1: forward-looking statements made by Now, I would like to turn the call over to management during this call. I would A-Mark's CEO, like to remind everyone that this call Mr. Greg Roberts.
Speaker #1: be made available for replay via a
Speaker #1: link available in the Investor Relations section of A-Mark's
Speaker #1: website. Now, I would like to turn the call
Speaker #1: over to A-Mark's
Speaker #1: CEO, Mr. Greg Roberts,
Speaker #1: sir, please proceed.
Speaker #2: Thank you, John, and good afternoon to everyone.
Speaker #2: Everyone, thanks once again for joining.
Speaker #2: our call. As we
Speaker #2: reported in our earnings release
Speaker #2: today, our fourth quarter and fiscal
Speaker #2: year 2025
Speaker #2: results underscore the ability of our fully
Speaker #2: integrated platform to generate
Speaker #2: positive results during challenging
Speaker #2: marketing market
Speaker #2: conditions. Despite the ongoing
Speaker #2: Uncertainty in the physical markets, which has
Speaker #2: led to increased supply and range.
Speaker #2: bound premium spreads,
Speaker #2: we reported seventeen point three
Speaker #2: million of net
Speaker #2: income, non-GAAP adjusted
Speaker #2: net income before provision for
Speaker #2: income taxes of $53.1 million.
Speaker #2: million, non-GAAP
Speaker #2: earnings before interest taxes
Speaker #2: depreciation amortization of
Speaker #2: sixty-four point four million, and
Speaker #2: diluted EPS of seventy-one cents
Speaker #2: per share, for our
Speaker #2: fiscal year two thousand
Speaker #2: twenty-five. For the fourth quarter of two
Speaker #2: thousand twenty-five, we generated
Speaker #2: ten point three million of net
Speaker #2: income, non-GAAP
Speaker #2: adjusted net income before
Speaker #2: provisions for income taxes of
Speaker #2: nineteen point two million,
Speaker #2: non-GAAP earnings before interest
Speaker #2: taxes depreciation
Speaker #2: amortization of twenty-nine point two
Speaker #2: million, and diluted
Speaker #2: EPS of forty-one cents per
Speaker #2: share. Our fourth quarter
Speaker #2: results improved from the previous
Speaker #2: quarter, with a ninety-nine percent increase in
Speaker #2: gross profit, a two hundred
Speaker #2: thirty-three percent increase in non-GAAP
Speaker #2: AP adjusted net income, and a
Speaker #2: twenty-one hundred sixty-seven percent increase
Speaker #2: in non-GAAP EBITDA.
Speaker #2: Reflecting the benefit of our
Speaker #2: recent strategic
Speaker #2: acquisitions, we have made
Speaker #2: steady progress bringing Spectrum
Speaker #2: Group International,
Speaker #2: AMS Holdings, and Pinehurst
Speaker #2: Coin Exchange under the
Speaker #2: A-Mark
Speaker #2: umbrella. Managing inventory levels,
Speaker #2: and completing automation
Speaker #2: upgrades at our AMGL
Speaker #2: facility, with centralized operations
Speaker #2: now in place. We completed
Speaker #2: the migration of Pinehurst
Speaker #2: logistics operations from North
Speaker #2: Carolina to AMGL in Las
Speaker #2: Vegas, one example
Speaker #2: of our cost-saving
Speaker #2: synergies we expect to achieve from
Speaker #2: our recent
Speaker #2: Acquisitions. As we continue to progress.
Speaker #2: our integration initiatives,
Speaker #2: the scale and efficiencies we're
Speaker #2: achieving will help to optimize
Speaker #2: expenses create greater
Speaker #2: operating leverage, and
Speaker #2: Maintain costs at more optimal levels.
Speaker #2: going forward. We
Speaker #2: have also made significant progress in
Speaker #2: our expansion into Asia,
Speaker #2: with LPM. Now
Speaker #2: fully operational in
Speaker #2: Singapore, across both wholesale and
Speaker #2: e-commerce
Speaker #2: channels, further broadening our reach into
Speaker #2: the Southeast Asian
Speaker #2: market, we believe these acquisitions combined with our growing
Speaker #2: international presence, strengthen
Speaker #2: our distribution channels and
Speaker #2: expand our reach into higher
Speaker #2: margin collectible and
Speaker #2: luxury segments.
Speaker #2: With a broader and more diversified
Speaker #2: platform improved operational
Speaker #2: leverage and a strong balance
Speaker #2: sheet, we enter the new fiscal year
Speaker #2: well-positioned to capture growth
Speaker #2: across multiple
Speaker #2: channels. Now, I will hand the
Speaker #2: call over to our new
Speaker #2: CFO, Carrie Dixon, who will
Speaker #2: provide a more detailed financial
Speaker #2: overview of our results.
Speaker #2: Then, A-Mark's President Thor
Speaker #2: Thor Gjerdrum will discuss our key operating metrics. Afterwards, I will provide a further update on our business growth and strategy for the upcoming quarter.
Speaker #2: fiscal year, and then take your
Speaker #2: questions.
Speaker #2: Carrie?
Speaker #2: Thank you, Greg, and good afternoon to all.
Speaker #2: everybody. Our
Speaker #2: revenues for Q4
Speaker #2: fiscal twenty-five
Speaker #2: decreased one percent to two
Speaker #2: point five one billion, from two
Speaker #2: point five two billion in Q4 of last
Speaker #2: year. Excluding a decrease
Speaker #2: of ninety-four million of
Speaker #2: forward sales, revenues increased
Speaker #2: eighty-one million or five
Speaker #2: percent, which was due to higher average.
Speaker #2: selling prices of gold and
Speaker #2: Silver, offset by a decrease in gold.
Speaker #2: and silver ounces
Speaker #2: sold. For the full
Speaker #2: year our revenues increased
Speaker #2: one point three percent
Speaker #2: to $10.98 billion, from
Speaker #2: nine point seven billion in the prior fiscal
Speaker #2: year. Excluding an increase an
Speaker #2: increase of four hundred forty-six million
Speaker #1: Good afternoon and welcome to A-Mark Precious Metals Conference, call for the fiscal fourth quarter and full year ended June 30, 2025. My name is John and I will be your operator this Good afternoon and afternoon.
Speaker #1: Before this welcome to A-Mark Precious Metals call, A-Mark issued its results for the fiscal fourth quarter and full Conference, call for the fiscal fourth year 2025 in a press quarter and full year ended release.
Speaker #1: Which is available in the investor June 30, relations section of the company's website 2025. My name is John and I will be your operator this at afternoon.
Speaker #1: Joining us release. Which is available in the investor for today's call are A-Mark relations section of the company's CEO Greg Roberts, website at President Thor Gjerdrum, and CFO Carrie www.amark.com.
Speaker #1: questions. Then, before we conclude the Joining us for today's call are call, I'll provide the necessary cautions A-Mark's CEO, Greg Roberts, regarding the fourth President Thor Gjerdrum, and forward-looking statements made by management during CFO Carrie this call.
Speaker #1: I would like to Dixon. Following their remarks, we remind everyone that this call is being will open the call to your recorded and will be made questions.
Speaker #1: Sir, this call is being recorded. Please proceed.
Speaker #4: Thank
Speaker #4: you, John, and good afternoon to
Speaker #4: everyone. Thanks once again for joining our call. As we reported
Speaker #4: in our earnings release today, our
Speaker #4: fourth quarter and fiscal
Speaker #4: year 2025
Speaker #4: results
Speaker #4: underscore the ability of our fully
Speaker #4: integrated platform to generate positive
Speaker #4: results during challenging
Speaker #4: marketing market
Speaker #4: conditions. Despite the ongoing uncertainty
Speaker #4: in the physical markets, which has led to increased supply and range
Speaker #4: bound premium spreads, we
Speaker #4: reported 17.3 million
Speaker #4: of net
Speaker #4: income, non-GAAP adjusted net
Speaker #4: income before provision for income
Speaker #4: taxes of 53.1
Speaker #4: million, non-GAAP earnings before
Speaker #4: interest taxes depreciation
Speaker #4: amortization of
Speaker #4: 64.4 million, and diluted
Speaker #4: EPS of 71 cents per
Speaker #4: share, for our fiscal
Speaker #4: year
Speaker #4: 2025. For the fourth quarter of
Speaker #4: 2025, we generated
Speaker #4: 10.3 million of net
Speaker #4: income, non-GAAP
Speaker #4: adjusted net income before
Speaker #4: provisions for income taxes of
Speaker #4: 19.2 million,
Speaker #4: non-GAAP earnings before interest
Speaker #4: taxes depreciation
Speaker #4: amortization of 29.2
Speaker #4: million, and diluted EPS of
Speaker #4: 41 cents per
Speaker #4: share. Our fourth quarter results
Speaker #4: improved from the previous quarter,
Speaker #4: with a 99 percent increase in gross
Speaker #4: profit, a 233
Speaker #4: percent increase in non-GAAP adjusted
Speaker #4: net income, and a
Speaker #4: 2,167 percent increase in
Speaker #4: non-GAAP EBITDA.
Speaker #4: Reflecting the benefit of our recent
Speaker #4: strategic
Speaker #4: acquisitions, we have made steady
Speaker #4: progress bringing Spectrum Group
Speaker #4: International,
Speaker #4: AMS Holdings, and Pinehurst Coin
Speaker #4: Exchange under the A-Mark
Speaker #4: umbrella.
Speaker #4: Managing inventory levels, and
Speaker #4: completing automation upgrades at
Speaker #4: our AMGL facility,
Speaker #4: with centralized operations now in
Speaker #4: place. We completed the
Speaker #1: An increase of $1.8 million in depreciation expense is due to an increase in capital expenditures, partially offset by a decrease in JMB intangible asset amortization of $3.1 million.
Speaker #4: migration of Pinehurst's logistics
Speaker #4: operations from North
Speaker #4: Carolina to AMGL in Las
Speaker #4: Vegas, one example of
Speaker #4: our cost-saving synergies we
Speaker #4: expect to achieve from our recent
Speaker #4: acquisitions. As
Speaker #1: Interest income for Q4 of fiscal '25 decreased 34% to $5.3 million, from $8.1 million in Q4 of last year. The decrease was primarily related to lower interest earned from repurchase agreements with customers of $1.4 million and other finance products of $0.7 million.
Speaker #4: we continue to progress our
Speaker #4: integration initiatives, the
Speaker #4: scale and efficiencies we're
Speaker #4: achieving will help to optimize
Speaker #4: expenses, create greater operating
Speaker #4: leverage, and maintain
Speaker #4: costs at more optimal levels going
Speaker #4: forward. We have also
Speaker #1: For the full fiscal year, interest income decreased 4% to $25.9 million, from $27.2 million in the prior fiscal year. The decrease was primarily due to a decrease in interest income earned by our secured lending segment of $0.8 million and other finance product income of $0.5 million.
Speaker #4: made significant progress in our
Speaker #4: expansion into Asia, with
Speaker #4: LPM. Now fully
Speaker #4: operational in Singapore,
Speaker #4: across both wholesale and
Speaker #4: e-commerce channels.
Speaker #4: Further broadening our reach into the
Speaker #4: Southeast Asian
Speaker #4: market. We believe these acquisitions
Speaker #4: combined with our growing international
Speaker #1: Interest expense for Q4 of 2025 increased 34% to $12.9 million, from $9.6 million in Q4 of last year. The increase in interest expense was primarily driven by higher overall borrowings related to precious metal leases, the trading credit facility, and product financing agreements.
Speaker #4: presence, strengthen our
Speaker #4: distribution channels and expand
Speaker #4: our reach into higher
Speaker #4: margin collectible and
Speaker #4: luxury segments. With a
Speaker #4: broader and more diversified platform improved operational leverage
Speaker #4: and a strong balance sheet,
Speaker #4: We enter the new fiscal year.
Speaker #4: well-positioned to capture growth across
Speaker #1: For the full fiscal year, interest expense increased 17% to $46.2 million, up from $39.5 million last fiscal year. The increase was primarily driven by higher overall borrowings related to precious metal leases, the trading credit facility, and product financing agreements, partially offset by the repayment of AM capital funding notes that we had back in December 2023.
Speaker #4: multiple channels.
Speaker #4: Now, I will hand the call over to Kathleen Simpson.
Speaker #4: over to our new
Speaker #4: CFO, Carrie Dixon, who will provide a
Speaker #4: more detailed financial overview of
Speaker #4: our results. Then,
Speaker #4: A-Mark's President, Thor
Speaker #4: Gjerdrum, will discuss our key
Speaker #4: operating metrics.
Speaker #4: Afterwards, I will provide further
Speaker #4: update on our business growth and
Speaker #4: strategy, for the upcoming fiscal
Speaker #1: Earnings from equity method investments in Q4 decreased 200% to a loss of $0.8 million, from earnings of $0.8 million in Q4 of last year.
Speaker #4: year, and then take your
Speaker #4: questions.
Speaker #4: Carrie? Thank
Speaker #1: For the full fiscal year, earnings from equity method investments decreased 170% to a loss of $2.8 million, from earnings of $4.0 million last fiscal year.
Speaker #4: you, Greg, and good afternoon to
Speaker #4: Everybody, our revenues for Q4 fiscal '25 decreased 1 percent to $2.51 billion, from...
Speaker #1: The decrease in both periods was due to a decrease in earnings from our equity method investees. Net income on a GAAP basis attributable to the company for the fourth quarter of fiscal '25 totaled $10.3 million, or $0.41 per diluted share.
Speaker #4: 2.52 billion in Q4 of last
Speaker #4: year. Excluding a decrease of
Speaker #4: 94 million of forward
Speaker #4: sales, revenues increased 81
Speaker #4: million or 5 percent,
Speaker #4: which was due to higher average selling prices.
Speaker #4: of gold and silver,
Speaker #4: offset by a decrease in gold and
Speaker #4: silver ounces
Speaker #4: sold. For the full
Speaker #4: year our revenues increased
Speaker #4: 1.3 percent to
Speaker #4: 10.98 billion, from
Speaker #4: 9.7 billion in the prior fiscal
Speaker #4: year. Excluding an
Speaker #4: increase of 446 million of
Speaker #4: forward sales, our revenues
Speaker #4: increased 832.9 million,
Speaker #4: or 15%, which was due to
Speaker #4: higher average selling prices of gold and
Speaker #4: silver, partially offset by a
Speaker #1: Income before provision for income taxes and non-GAAP performance measures, which exclude depreciation, amortization, acquisition costs, re-measurement gains or losses, and contingent consideration fair value adjustments for Q4 fiscal '25, totaled $19.2 million, a decrease of 5% compared to $20.1 million in the same year-ago quarter.
Speaker #4: decrease in gold and silver ounces
Speaker #4: sold. Revenues also
Speaker #1: Adjusted net income before provision for income taxes for the full fiscal year totaled $53.1 million, a 34.0% decrease from $80.3 million in the prior fiscal year.
Speaker #1: EBITDA, another non-GAAP liquidity measure that excludes interest, taxes, depreciation, and amortization for Q4 fiscal '25, totaled $29.2 million, a 24% decrease compared to the $38.4 million in Q4 of fiscal '24.
Speaker #1: EBITDA for the full fiscal year totaled $64.4 million, a 40% decrease compared to $106.5 million last fiscal year. Turning to our balance sheet at fiscal year-end, we had $77.7 million worth of cash, compared to $48.6 million.
Speaker #1: At the end of fiscal '24, our non-restricted inventories totaled $794.8 million, up by $215 million from the $579.4 million we had at the end of the last fiscal year in '24.
Speaker #1: And that completes my financial summary. Now, I will turn the call over to Thor Gjerdrum, who will provide an update on our key operating metrics.
Speaker #1: Thor?
Speaker #2: Thank you, Kerry. Looking at our key operational metrics for the fourth quarter and full year 2025, we sold 346,000 ounces of gold in Q4 fiscal 2025, which is down 23% from Q4 of last year and down 20% from the prior quarter.
Speaker #2: For the full fiscal year, we sold 1.6 million ounces of gold, which was down 11% from last fiscal year. We sold 15.7 million ounces of silver in Q4 Fiscal 2025, which was down 38% from Q4 of last year and down 0.2% from the prior quarter.
Speaker #2: For the full fiscal year, we sold 73.6 million ounces of silver, which was down 32% from last year. The number of new customers in the DTC segment, which is defined as those who registered, set up a new account, or made a purchase for the first time during the period, was 108,900 in Q4 Fiscal 2025. This was down 81% from Q4 of last year and decreased 88% from last quarter.
Speaker #2: For the three months ended June 30, 2025, and June 30, 2024, approximately 30% and 92% of the new customers were attributable to the acquisition of AMS and the acquisition of a controlling interest in SGB, respectively.
Speaker #2: For the three months ended March 31, 2025, approximately 84% and 9% of the new customers were attributable to the acquisitions of Pinehurst and SGI, respectively.
Speaker #2: For the full fiscal year, the number of new customers in the DTC segment was 1,129,200, a 57% increase from the 718,500 new customers in the prior fiscal year.
Speaker #2: Approximately 79% of the new customers from the fiscal year ended June 30, 2025, were attributable to the acquisitions of SGI, Pinehurst, and AMS. Approximately 73% of new customers in fiscal year 2024 were attributable to the acquisition of a controlling interest in SGB.
Speaker #2: The number of total customers in the DTC segment at the end of the fourth quarter was approximately 4.2 million, a 37% increase from the prior year.
Speaker #2: Their year-over-year increase in total customers was due to the acquisitions of SGI, Pinehurst, and AMS, as well as organic growth of our JMB customer base.
Speaker #2: The DTC segment average order value, which represents the average dollar amount of products ordered, excluding accumulation program orders, delivered to customers during Q4 fiscal 2025, was $2,443. This was down 15% from Q4 fiscal 2024 and down 21% from the prior quarter.
Speaker #2: For the full fiscal year, our DTC average order value was $2,886, which was up 19% from fiscal 2024. For the fiscal fourth quarter, our inventory turn ratio was 1.9, which was a 17% decrease from 2.3 in Q4 of last year, and a 21% decrease from 2.4 in the prior quarter.
Speaker #2: For the full fiscal year, our inventory turn ratio was 9.1, a 1% decrease from 9.2 last fiscal year. Finally, the number of secured loans as of June 30, 2025, totaled 445, a decrease of 9% from March 31, 2025, and a decrease of 24% from June 30, 2024.
Speaker #2: Our secured loan receivable balance at the end of the fiscal year was $94 million, a 9% decrease from March 31, 2025, and a 70% decrease from June 30, 2024.
Speaker #2: That concludes my prepared remarks. I'll now turn it over to Greg for closing remarks. Greg?
Speaker #3: Thank you, Thor and Kerry. Our recent acquisitions and growing international presence have strengthened our competitive position while expanding our footprint into higher-margin luxury segments.
Speaker #3: Our investment in infrastructure and automation technology at our Las Vegas facility has enabled us to centralize our operations, manage costs, and scale up as market conditions evolve.
Speaker #3: Looking ahead to fiscal 2026 with our expanded brand portfolio, and ongoing integration and optimization opportunities, we remain confident in A-Mark's long-term trajectory and our continued ability to deliver shareholder value.
Speaker #3: That concludes my remarks. Operator, we can now open the line for questions.
Speaker #4: Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press *1 on your telephone keypad.
Speaker #4: A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue.
Speaker #4: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. One moment, please, while we pull for questions.
Speaker #4: Once again, please press *1 if you have a question or a comment. The first question comes from Thomas Forte with Maxim Group. Please proceed.
Speaker #5: Great. Thanks, Greg. So, three questions coming out of the one's high-level question. You had indicated, and you saw in the quarter, an improvement in the performance versus the prior quarter.
Speaker #5: Great. Thanks, Greg. So three questions coming out of the one's high-level question. You had indicated and you saw in the quarter an improvement in the performance versus the one at a time.
Speaker #5: The high level, though, I was curious where you think we are in the cycle right now. I mean, we saw some real strength in April.
Speaker #5: May and June, we're a little more a little slower. You know, the what we've talked about the last two or three quarters, the continued higher spot prices, which result in higher carry costs for A-Mark, as well as, you know, the headwinds as it relates to the premium in our particularly our silver products, you The first know, it has continued.
Speaker #5: And, you know, we continue to battle these issues and, you know, they are they are continuing. I do I am optimistic that our integration of our acquisitions and our continuing effort to optimize and integrate and reduce the expenses in these acquisitions will ultimately you know, is going to pay off.
Speaker #5: But at the moment, the market is about how it has been over the last three to six months.
Speaker #3: Okay. And then for my second, thanks for that. You did engage in a lot of strategic M&A over the last 12, 18 months. Were your thoughts today seems like you have more opportunities to take advantage of, but I don't know if you feel like you need to digest what you just did, or what are your current thoughts on strategic M&A?
Speaker #5: I mean, I think we're always looking for opportunities, and there are still opportunities in the pipeline that we're looking at. I do believe that, you know, we closed three acquisitions in our Q3.
Speaker #5: And we did digest those, and we do believe that we've made good progress in integrating them although we're not complete yet. I think that the team at A-Mark has done a great job with the integration, and I believe that we are ready to digest something else if the opportunity presented itself.
Speaker #5: And we're just trying to, as usual, balance our capital allocation between inventory, and acquisitions, and continuing to optimize what we've already purchased. So work is ongoing in all areas, but I certainly wouldn't shut the door on future acquisitions.
Speaker #5: I've said before for quite some time that, you know, when the market is slow, we believe that opportunities will present themselves. And that, you know, the acquisitions that we can make now, when the market is slower, are a lot easier for us to digest and grow and expand than, you know, making an acquisition when the market's very hot.
Speaker #5: So, feeling good about it, door's open, and looking for opportunities.
Speaker #3: As the two more I just thought of one more I wanted to ask quickly. So, I think that the answer to this one is that they're still in their early days, but some of the acquisitions you did were intended to give you some element of counter-cyclicality.
Speaker #3: So, where are we with those efforts?
Speaker #5: I mean, I think particularly in the stocks Bower's area, we just concluded last Friday our largest sale in history. On the rare coin auction side, it was a $62 million sale.
Speaker #5: Over nine days, we sold over 14,000 lots. A very good result. The team at Stocks Bower's did excellent work. Getting that auction and those auctions helped the door.
Speaker #5: You know, and that particular market, on the rare coin side, is very strong right now. And, you know, to the counter-cyclical nature, you just mentioned, you know, it is proving out that we're benefiting on the higher margin rare coin side right now than maybe on the one-ounce silver round.
Speaker #5: So I believe that the strategy is sound. I think the acquisitions were appropriate and they were well-timed. And we just need to, you know, continue to expand on them.
Speaker #3: Great. And then last one, and thanks for taking my questions. So it wasn't clear to me in the prepared remarks, so I apologize if it was clear and I just didn't understand.
Speaker #3: Have you finished fully upgrading your Vegas distribution center? I know you're adamant in your implementing some pretty impressive tech, is that fully upgraded now?
Speaker #5: Oh, yeah. I would say we're 95% complete. From an infrastructure standpoint, we are complete. We continue to work on the software and IT side of it.
Speaker #5: Integrating all of our different customers and all of our internal DTC customers, we are integrating that. But it is operational, and I would say that, like I said, it's mostly complete.
Speaker #5: We're very happy. The increased capacity and cost savings has been everything we expected it to be. We have been able to onboard a number of new clients there.
Speaker #5: Which, ultimately, in the long term, is going to translate into more business and give us the opportunity to take market share when the market heats up.
Speaker #3: Great. Thank you, Greg.
Speaker #4: The next question comes from Mike Baker with CA Davidson. Please proceed.
Speaker #5: Okay. Thanks. A few from me. Starting big picture, you said, Greg, at the beginning, you know, just the environment remains weak or soft or slow, whatever you said.
Speaker #5: Can you just remind us, bigger picture, what's a good environment for you guys? What do we from, you know, looking from the outside looking in, what do we need to see in the world for it not to be a slow environment?
Speaker #5: I mean, in April, we had a lot of volatility around Liberation Day. I guess that's sort of calmed down. Is it just that the world is, you know, too good right now?
Speaker #5: What makes a good environment for you guys? Yeah. I mean, the world is too good. If you're in the equities market, and that's where a lot of people are right now, it's hard to compete with the returns.
Speaker #5: As you point out, yes, April—there was a great deal of volatility. If you look at the levels, they were very high. And our business performed very well in the first 10 days of April.
Speaker #5: The uncertainty as it relates to tariffs and interest rates, as well as our cost of financing, has been negatively affected by a lot of the current look at the VIX administration's strategies.
Speaker #5: And I believe that when you ask the question, what's good for us? Well, certainly, you know, volatility and some uncertainty in the equity markets would be good for us.
Speaker #5: The, you know, the bigger picture macroeconomic issues that are generally good for us are fear and uncertainty. And our last really big run was the Silicon Valley Bank crisis.
Speaker #5: So, these are things that would affect us positively. But we can't just wait and hope they're going to happen. I mean, we're continuing to grow this business.
Speaker #5: We're continuing to take our take seriously our view of our SG&A and particularly our inventory and carrying costs. And, you know, historically, we've held a very good-sized inventory.
Speaker #5: In preparation for higher premiums and for more activity, but really over the last nine months, we've probably had a bit too much inventory. So that, you know, is something that we're taking a look at.
Speaker #5: Certainly, the higher spot prices have put a lot of spotlight on precious metals. But they haven't particularly been good for us. Most of the demand and drive in the higher spot prices has been from central banks.
Speaker #5: And it has not yet translated into a FOMO-type effect as it relates to our DTC customers. We see glimpses of change and of things kind of rebounding.
Speaker #5: But no, you know, what we could consider, you know, multi-month traction at the moment. So doing everything we can, and just making sure we're in a position where if something happens tomorrow that we're able to take advantage of it.
Speaker #5: Understood. Okay. That's helpful. A couple of follow-ups. One, you said you mentioned tariffs. Remind us, how are tariffs impacting your business right now? Well, certainly, the tariffs are causing a great deal of consternation as it relates to countries that are subject to tariffs and changing tariffs.
Speaker #5: In particular, a high percentage of the gold that comes into the United States comes from outside the US. Particularly Switzerland, London, and some other areas.
Where uncertainty, as it relates to Where Metal should be located to avoid tariffs as disrupted. Um, a number of our, um, different places that that we borrow metal or where we borrow dollars and the, the the cost of Carry has just been higher for us. I, I think, also, the uncertainty just just, as it relates to, what will be taxed or what will be tariff and what will not, um, you know, has has caused some disruption, um, in our hedge position, which historically has been, um, a regular contributor, uh, to to our profitability. Um, and, and that, um,
What we call contango uh has has had some periods of of flipping to backwardation so that you know in in general we we get paid to have a short position and that reduces our carry costs in in a backwardation situation near-term. Spot prices are higher than longer term prices and you know that can negatively affect our our profitability. So um, you know, it has been, I think we managed it well, um, but it has has certainly
You know, caused a bit of uncertainty in, in parts of our business.
Strong. Um so I get that gross profit dollars are helped by Acquisitions, but but what what was the Big Driver to to the margin?
Um, you know it's a gross profit relative to sales. It was I mean, I think the gross profit 1.7. Yeah. What was that? I mean the gross profit is up because, you know, we've added in gross profit from our Acquisitions. Um, you know, we've also as Carrie noted, we've added a lot of sgna. Um so so you you know, our actual
Gross profit percentage margin is likely to be up because we we've integrated the higher margin businesses but it but it those those Acquisitions and higher margin Top Line, you know.
Is is just a minor percentage of of our, you know, 11 billion dollars, annually in sales, you know, that the the higher margin businesses are you know, a few hundred million dollars. So it's going to add gross profit. I mean, our job right now is to continue to look at efficiencies and synergies uh and and how to capture more of that gross profit, and we can do that by by making sure. We're we're we're we're taking a close look at our sgna as well as
You know, in the current environment, um those premiums are have shrunk so we just don't believe we're going to need to have the same inventory in the future.
Understood, thank you.
The next question comes from Andrew Scott with Roth Capital please proceed.
Thank you. Good afternoon, and uh, thank you for taking my questions. Um, so you talked a lot in the um,
On the call about, uh, you know, your greater exposure to international markets. Um, you look at it, I know revenue's not maybe the best indicator for your business, but as a percentage of revenue, um, it's grown substantially—around 60% last year and over 60% year-to-date. Um, can you just kind of talk to us about where you see that mix bouncing out, um, maybe over the medium and long term as you continue with these strategic acquisitions?
Um, yeah, I I would say that, you know, we're very pleased. Um, it took 6 to 9 months, but we've, we've been able to integrate our LPM acquisition that that was in Hong Kong, that is in Hong Kong, um, and LPM has been able to expand and open a retail facility in Singapore. Uh, We've also um, made a couple of hires uh, to to move move more into the wholesale trading, trading business in Singapore, and those areas are
New to us.
We're very optimistic of of what we've seen particularly uh you know in in the in the more recent months as as the opportunities there appear to be what we hope they would be. Um and so I I think we we just like the growth opportunity down there. I I'm not saying that it's going to be immediately. It it material portion of our our Topline sales. Um, but it, but we are on boarding, new customers. Uh, and we are, um, we have gained access through our LPM brand to a number of, uh, new product offerings and higher margin products. Uh, that originated, uh, in China or in Southeast Asia, and having access to those those products, uh, gives gives us optimism. That this is, is going to be a, a new kind of Frontier for us, uh, that, that we have.
Haven't, you know we haven't tackled before uh we continue to have good strong new customer growth numbers in the US. Um, but but certainly we we we are very new uh to the Asian markets and and we see some good, some good client onboarding there and we're starting to see some very positive numbers.
Great, thanks for the uh details and um well I know I mean it is a soft environment. You guys have really um you know, expanded your, your DTC exposure to different types of markets online sales over the phone sales. Um,
Are there any particular Pockets right now that are currently showing promise and and kind of can you talk about how that expansion has benefited you um in this environment?
Like I said earlier, I think the semi-numismatic. Uh,
some higher premium Boolean products is where well as the rare coins uh in our in our new Stacks Powers brand has been uh
Very, very positive. Uh, I believe that, uh, our CFC, uh, Finance business, uh, is is strong right now. Um, I think that is is growing. Uh, we we did, um, get back over a hundred million our, our loan book, uh, in the last few weeks and there does seem to be. I don't know if it's connected to, to the the overall economic environment or what it is. But but we do see an uptick in new loans and, uh, new draws against existing loans. So I in those areas are good, um, you know, but but we're still um, by
Buying back a lot of material from customers. Our DTC brands are, are buying back a very high percentage of, of what they're selling is, is coming through BuyBacks. Um, we're we're keeping up with that with, with regular melt Lots, where we're actually melting quite a bit of stuff right now.
Silver, in particular, over the last few weeks, has been experiencing some positivity, especially with prices getting above $40. We have seen a bit of a positive trend among silver buyers.
Um so you know there's a few pockets of of of positivity. And and again I I I I believe that, you know, we're we're headed in the right direction and we're making the right adjustments, uh, with our business. So um,
Looking forward to the future.
Great. Well, thanks for taking my question.
Once again, if you have a question or a comment, please indicate so by pressing star 1 on your touchtone phone. The next question comes from Greg tibus with Northland Securities. Please proceed.
Hey thanks. Greg Carrie and Thor. Um 1 of the follow up on what you mentioned earlier regarding backwardation I know we talked about it last quarter. Um just regarding the impact that maybe backwardation and the cost of carry had in the quarter.
In physical Q4 versus fiscal. Q3, was it pretty similar? Or are you seeing it lighten up as as there is a little bit more clarity in terms of of Paris?
You, you you you asked your question is uh, Q4 versus Q3 2025.
Yes, and and just kind of how it's trending maybe post that as well.
Um, I I mean, I I don't think it's, it's eased up at all. I I think it's it's continues to be challenging, um, you know, within the last 3 to 4 weeks, uh, the White House announced that silver was going to be a strategic metal or was going to be a, uh, a rare rare earth type, strategic item, you know, that threw a, a, a great deal of disruption in the silver market. Um, and, you know, it does, it does affect the the our ability.
To finance, our silver inventory and and, and as well as our hedge, because a good portion of our hedge is in silver. Um, but but what it tends to do when, when you have these disruptions, is it. It causes the curve, uh, in contango to flip and you, you have, you know, thousand ounce bars. There was a period, 2 weeks ago, where thousand ounce Bars were trading at a $1 premium over the melt value, um, for delivery into New York. I mean, we're we're, we're, we're struggling to sell 1 oz, silver rounds at 40 cents, an ounce over melt. So it, it gives you an idea of, of the, of the, the flip. And when, when, when large Traders around the world believe that, um,
They're going to get metal locked uh the the demand coming out of New York to get the metal into New York as soon as possible uh creates this. This very near-term spike in the premium over the over the the spot price. So that is what leads to backwardation. And that's the, you know the definition of it is you know is is where
Future.
Future values are lower than, than than and, you know, near-term values. So, you know,
To this point, we haven't seen this.
Um, to become long-term for the most part, you get announcements out of the White House or out of other parts of the government. And it creates.
A bit of immediate Panic or or a week or 2 of uncertainty and then and then, you know, things tend to settle down again. I mean, we had a we had an announcement, uh, that was was kind of what I guess is. Fake news, a few weeks ago where where, you know, there was a rumor out there in the financial times and there was a story that, you know, Trump was going to
You know, put put tariffs and taxes on on gold being imported from Switzerland. Uh, you know, along the same time that that there was a, uh, you know, a lot of trade War chatter going on in the end, you know, Trump came out a few days later and said, no, I'm not going to tariff gold from Switzerland. Um but it was only in this was 4 or 5 weeks ago. It was only in the last week that that the administration came out with proper guidance to the
to um,
you know, to the import agents, as to, what code they were supposed to use for gold bars. There's just a lot of disinformation out there. I believe there's a lot of
um, you know, we have
20 year, history of of managing our book and managing, um, you know, contango environment, uh, very profitably to Amar, but, but, you know, we are, there are a few bumps in the road right now and and, you know, every morning we we wake up wondering what's going to be next. So
That, that's, that's, you know, that's really what's going on?
Yep. I appreciate the details, Greg. Um,
And and I guess I just wanted to follow up to in terms of, you know, the solid progress that you've made digesting those recent acquisitions. Um could you maybe just go over the highlights in terms of what's been done and maybe what's on the horizon? The regarding integration work that's not yet completed with SGI and AMS.
Sure. Um, you know, I mean, I think the first big lift was for Carrie and Jill, you know, on our finance team. They've done a great job of the purchase price accounting. Um, you know, we're, we're, we're.
Uh, we were able to complete our year end. Uh, we're we're here talking and we we have our our release here. And the I think the the integration of the accounting for the Acquisitions is 90% complete now and and a a great job by the finance team.
Um, we we started. And it was, it was our plan first to integrate, um, Pinehurst. Uh, and, uh, you know, Pinehurst was a standalone business that we had a minority interest in located in North Carolina. Um, and we have, uh, completed, uh, moving their inventory and all of their shipping and Logistics storage Pick and Pack, all of that has now been moved to Las Vegas, uh, for Jordan spearheaded that along with Brian aalo. Uh, and, and Vince from Pinehurst, and that's now complete. Um, we've been able to eliminate, uh, a lot of redundancy and a lot of costs there. Uh, from the pine piner's DTC side of things. We, We are continuing to look for redundancies and synergies that we can find with, uh, JM Bullion and our, our DTC, um, operations in Texas.
As it relates to AMS, I think we are, uh, you know, in process of of looking at um where the synergies are particularly, with their marketing department. Uh and and some of their marketing expertise that we're rolling out, uh, across some of our other platforms. Uh, and again, looking for synergies and looking for uh, redundancy in in expenses that that we, we don't have to have to incur. Um, and I think on the stack side, um, you know, we've
we've moved, um,
Some of our resources, uh, for Elsa gondo. We we've moved them down to Orange County and, uh, we, we're, we are developing and building a more integrated trading desk down here. Uh, so we have a lot, a lot on our plate. We have a lot going on. Uh, but but very, you know, very excited about the opportunity.
Got it. Thanks very much.
At this time, this concludes our question and answer session, I'd now like to turn the call over to Mr. Roberts for his closing remarks
I'd like to thank our many shareholders once again, uh, for your loyalty and being with the company enjoying our call today, continued interest and support is important to Amar. I'd also like to thank our many employees for their dedication and commitment to Amar success. Uh, I look forward to keeping you apprised of amar's progress.
And uh, turn it back over to John. Thank you for being on the call today.
Before we conclude today's call, I would like to provide a marks Safe Harbor statement that includes important cautions regarding forward-looking statements made during this call.
During today's call, there were forward-looking statements made regarding future events statements that relate to a Mark's future plans. Objectives, expectations performance events and the like our forward-looking statements
Within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934.
These include statements regarding expectations with respect to growth, the delivery of long-term value, expense optimization, cost containment, and operating leverage.
Future events, risks, and uncertainties, individually or in the aggregate, could cause actual results or circumstances to differ materially from those expressed.
Or implied in these statements.
The failure to execute the company's growth strategy.
Including the inability to identify suitable or available acquisition or investment opportunities.
Greater than anticipated cost incurred to execute the strategy. Our inability to execute on our Cost Containment and expense reduction programs.
Government regulations that might impede growth particularly in Asia, including with respect to tariff policy, the inability to successfully integrate recently acquired businesses.
Changes in the current International political climate, which historically has favorably contributed to demand and volatility in the precious metals markets, but also has posed certain risks and uncertainties for the company.
Particularly in recent periods.
Increased competition for the company's higher-margin services could depress pricing.
The failure of the company's business model to respond to changes in the market environment as anticipated.
Changes in consumer demand and preferences for precious metal products generally.
Potential negative effects that inflationary pressure may have on our business.
Failure of our investing companies to maintain.
Or address the preferences of their customer bases.
General risk.
Of doing business and commodity markets.
And strategic business, economic, financial, political, and governmental risk, as well as other risk factors described in the company's public filings with the Securities and Exchange Commission.
The company undertakes no obligation to publicly update or revise any forward-looking statements.
Listeners are cautioned not to place under Reliance on these forward-looking statements.
Finally, I would like to remind everyone that a recording of today's call will be available for replay via the link in the investor relations section.
Investors section of the company's website.
Thank you for joining us today for amar's earnings call. You may now disconnect