Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2022 | Apr. 28, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | A-Mark Precious Metals, Inc. | |
Entity Central Index Key | 0001591588 | |
Entity Tax Identification Number | 11-2464169 | |
Entity File Number | 001-36347 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 2121 Rosecrans Ave | |
Entity Address, Address Line Two | Suite 6300 | |
Entity Address, City or Town | El Segundo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90245 | |
City Area Code | 310 | |
Local Phone Number | 587-1477 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | AMRK | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 11,514,010 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | |
Current assets: | |||
Cash | [1] | $ 28,549 | $ 101,405 |
Receivables, net | 65,636 | 89,000 | |
Derivative assets | 25,973 | 44,536 | |
Secured loans receivable | [1] | 145,838 | 112,968 |
Precious metals held under financing arrangements | [1] | 87,450 | 154,742 |
Inventories: | |||
Inventories | [1] | 564,816 | 256,991 |
Restricted inventories | 199,447 | 201,028 | |
Restricted and non-restricted inventory, net | 764,263 | 458,019 | |
Prepaid expenses and other assets | [1] | 8,188 | 3,557 |
Total current assets | 1,125,897 | 964,227 | |
Operating lease right of use assets | 6,774 | 5,702 | |
Property, plant, and equipment, net | 9,542 | 8,609 | |
Goodwill | 100,943 | 100,943 | |
Intangibles, net | 70,716 | 93,633 | |
Long-term investments | 32,511 | 18,467 | |
Other long-term assets | 200 | ||
Total assets | 1,346,583 | 1,191,581 | |
Current liabilities: | |||
Lines of credit | 255,000 | 185,000 | |
Liabilities on borrowed metals | 67,824 | 91,866 | |
Product financing arrangements | 199,447 | 201,028 | |
Accounts payable and other payables | 26,175 | 5,935 | |
Deferred revenue and other advances | 193,081 | 194,416 | |
Derivative liabilities | 24,783 | 7,539 | |
Accrued liabilities | [1] | 21,399 | 18,785 |
Income tax payable | 268 | 5,016 | |
Total current liabilities | 787,977 | 709,585 | |
Notes payable | [1] | 93,859 | 93,249 |
Deferred tax liabilities | 14,951 | 19,514 | |
Other liabilities | 6,304 | 5,291 | |
Total liabilities | 903,091 | 827,639 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of March 31, 2022 and June 30, 2021 | |||
Common stock, par value $0.01; 40,000,000 shares authorized; 11,514,010 and 11,229,657 shares issued and outstanding as of March 31, 2022 and June 30, 2021, respectively | 116 | 113 | |
Additional paid-in capital | 156,997 | 150,420 | |
Retained earnings | 284,651 | 212,090 | |
Total A-Mark Precious Metals, Inc. stockholders’ equity | 441,764 | 362,623 | |
Noncontrolling interests | 1,728 | 1,319 | |
Total stockholders’ equity | 443,492 | 363,942 | |
Total liabilities, noncontrolling interests and stockholders’ equity | $ 1,346,583 | $ 1,191,581 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 11,514,010 | 11,229,657 |
Common stock, shares outstanding | 11,514,010 | 11,229,657 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets (VIE) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | |
ASSETS OF THE CONSOLIDATED VIE | |||
Cash | [1] | $ 28,549 | $ 101,405 |
Secured loans receivable | [1] | 145,838 | 112,968 |
Precious metals held under financing arrangements | [1] | 87,450 | 154,742 |
Inventories | [1] | 564,816 | 256,991 |
Prepaid expenses and other assets | [1] | 8,188 | 3,557 |
Total assets | 1,346,583 | 1,191,581 | |
LIABILITIES OF THE CONSOLIDATED VIE | |||
Accrued liabilities | [1] | 21,399 | 18,785 |
Notes payable | [1] | 93,859 | 93,249 |
Total liabilities | 903,091 | 827,639 | |
Variable Interest Entity, Primary Beneficiary | |||
ASSETS OF THE CONSOLIDATED VIE | |||
Cash | 2,829 | 2,877 | |
Secured loans receivable | 101,646 | 84,817 | |
Precious metals held under financing arrangements | 23,976 | ||
Inventories | 2,532 | ||
Prepaid expenses and other assets | 28 | 23 | |
Total assets | 104,503 | 114,225 | |
LIABILITIES OF THE CONSOLIDATED VIE | |||
Deferred payment obligations | [2] | 11,561 | 20,539 |
Accrued liabilities | 995 | 847 | |
Notes payable | [3] | 98,859 | 98,249 |
Total liabilities | $ 111,415 | $ 119,635 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. | ||
[2] | This is an intercompany balance, which is eliminated in consolidation and hence is not shown on the consolidated balance sheets. | ||
[3] | $ 5.0 million of the Notes are held by the Company, which is eliminated in consolidation and hence is not shown on the consolidated balance sheets. |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheets (VIE) (Parenthetical) - USD ($) | Mar. 31, 2022 | Sep. 30, 2018 |
Variable Interest Entity, Primary Beneficiary | ||
Financing receivable | $ 5,000,000 | |
AM Capital Funding, LLC. | ||
Financing receivable | $ 5,000,000 | |
AM Capital Funding, LLC. | Secured Senior Term Notes, Series 2018-1, Class B | ||
Financing receivable | 5,000,000 | |
AM Capital Funding, LLC. | Senior Subordinated Notes | Secured Senior Term Notes, Series 2018-1, Class A | ||
Debt instrument, face amount | $ 72,000,000 | $ 72,000,000 |
Stated interest rate (in percentage) | 4.98% | 4.98% |
AM Capital Funding, LLC. | Senior Subordinated Notes | Secured Senior Term Notes, Series 2018-1, Class B | ||
Debt instrument, face amount | $ 28,000,000 | $ 28,000,000 |
Stated interest rate (in percentage) | 5.98% | 5.98% |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 2,109,115 | $ 2,049,489 | $ 6,069,450 | $ 5,434,349 |
Cost of sales | 2,037,032 | 1,981,318 | 5,875,435 | 5,311,282 |
Gross profit | 72,083 | 68,171 | 194,015 | 123,067 |
Selling, general, and administrative expenses | (20,494) | (13,295) | (55,884) | (31,328) |
Depreciation and amortization expense | (7,548) | (1,488) | (24,077) | (2,494) |
Interest income | 5,343 | 4,724 | 16,125 | 13,240 |
Interest expense | (5,429) | (5,335) | (16,297) | (14,665) |
Earnings from equity method investments | 1,608 | 7,410 | 4,317 | 13,898 |
Other income, net | 493 | 340 | 1,335 | 904 |
Remeasurement gain on pre-existing equity interest | 26,306 | 26,306 | ||
Unrealized losses on foreign exchange | (135) | (53) | (128) | (131) |
Net income before provision for income taxes | 45,921 | 86,780 | 119,406 | 128,797 |
Income tax expense | (8,375) | (9,847) | (23,797) | (18,944) |
Net income | 37,546 | 76,933 | 95,609 | 109,853 |
Net income attributable to noncontrolling interests | 164 | 308 | 409 | 1,221 |
Net income attributable to the Company | $ 37,382 | $ 76,625 | $ 95,200 | $ 108,632 |
Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.: | ||||
Basic | $ 3.27 | $ 9.54 | $ 8.38 | $ 14.67 |
Diluted | $ 3.06 | $ 8.84 | $ 7.84 | $ 13.61 |
Weighted average shares outstanding: | ||||
Basic | 11,429,800 | 8,028,900 | 11,356,400 | 7,403,900 |
Diluted | 12,212,900 | 8,668,300 | 12,137,600 | 7,980,700 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Total A-Mark Precious Metals, Inc. Stockholders' Equity | Non-Controlling Interests |
Beginning balance at Jun. 30, 2020 | $ 104,894 | $ 71 | $ 27,289 | $ 73,644 | $ 101,004 | $ 3,890 |
Beginning balance (shares) at Jun. 30, 2020 | 7,031,500 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 23,706 | 23,083 | 23,083 | 623 | ||
Share-based compensation | 178 | 178 | 178 | |||
Net settlement on issuance of common shares on exercise of options | 416 | 416 | 416 | |||
Net settlement on issuance of common shares on exercise of options (shares) | 35,030 | |||||
Dividends declared | (10,553) | (10,553) | (10,553) | |||
Ending balance at Sep. 30, 2020 | 118,641 | $ 71 | 27,883 | 86,174 | 114,128 | 4,513 |
Ending balance (shares) at Sep. 30, 2020 | 7,066,530 | |||||
Beginning balance at Jun. 30, 2020 | 104,894 | $ 71 | 27,289 | 73,644 | 101,004 | 3,890 |
Beginning balance (shares) at Jun. 30, 2020 | 7,031,500 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 109,853 | |||||
Ending balance at Mar. 31, 2021 | $ 313,678 | $ 112 | 147,370 | 161,086 | 308,568 | 5,110 |
Ending balance (shares) at Mar. 31, 2021 | 11,136,233 | 11,136,233 | ||||
Beginning balance at Sep. 30, 2020 | $ 118,641 | $ 71 | 27,883 | 86,174 | 114,128 | 4,513 |
Beginning balance (shares) at Sep. 30, 2020 | 7,066,530 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 9,214 | 8,925 | 8,925 | 289 | ||
Share-based compensation | 210 | 210 | 210 | |||
Net settlement on issuance of common shares on exercise of options | 1,001 | $ 1 | 1,000 | 1,001 | ||
Net settlement on issuance of common shares on exercise of options (shares) | 64,932 | |||||
Dividends declared | (10,638) | (10,638) | (10,638) | |||
Ending balance at Dec. 31, 2020 | 118,428 | $ 72 | 29,093 | 84,461 | 113,626 | 4,802 |
Ending balance (shares) at Dec. 31, 2020 | 7,131,462 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 76,933 | 76,625 | 76,625 | 308 | ||
Share-based compensation | 271 | 271 | 271 | |||
Issuance of common stock sold in public offering, net of offering costs | 75,344 | $ 29 | 75,315 | 75,344 | ||
Issuance of common stock sold in public offering, net of offering costs (shares) | 2,875,000 | |||||
Net settlement on issuance of common shares on exercise of options | 1,094 | $ 1 | 1,093 | 1,094 | ||
Net settlement on issuance of common shares on exercise of options (shares) | 82,764 | |||||
Common stock issued for acquisition of JMB | 41,608 | $ 10 | 41,598 | 41,608 | ||
Common stock issued for acquisition of JMB (shares) | 1,047,007 | |||||
Ending balance at Mar. 31, 2021 | $ 313,678 | $ 112 | 147,370 | 161,086 | 308,568 | 5,110 |
Ending balance (shares) at Mar. 31, 2021 | 11,136,233 | 11,136,233 | ||||
Beginning balance at Jun. 30, 2021 | $ 363,942 | $ 113 | 150,420 | 212,090 | 362,623 | 1,319 |
Beginning balance (shares) at Jun. 30, 2021 | 11,229,657 | 11,229,657 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 26,124 | 26,024 | 26,024 | 100 | ||
Share-based compensation | 473 | 473 | 473 | |||
Net settlement on issuance of common shares on exercise of options | 749 | 749 | 749 | |||
Net settlement on issuance of common shares on exercise of options (shares) | 60,650 | |||||
Common stock issued for increase in long term investment | 2,978 | $ 1 | 2,977 | 2,978 | ||
Common stock issued for increase in long term investment (shares) | 61,590 | |||||
Dividends declared | (22,639) | (22,639) | (22,639) | |||
Ending balance at Sep. 30, 2021 | 371,627 | $ 114 | 154,619 | 215,475 | 370,208 | 1,419 |
Ending balance (shares) at Sep. 30, 2021 | 11,351,897 | |||||
Beginning balance at Jun. 30, 2021 | $ 363,942 | $ 113 | 150,420 | 212,090 | 362,623 | 1,319 |
Beginning balance (shares) at Jun. 30, 2021 | 11,229,657 | 11,229,657 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 95,609 | |||||
Net settlement on issuance of common shares on exercise of options (shares) | 223,508 | |||||
Ending balance at Mar. 31, 2022 | $ 443,492 | $ 116 | 156,997 | 284,651 | 441,764 | 1,728 |
Ending balance (shares) at Mar. 31, 2022 | 11,514,010 | 11,514,010 | ||||
Beginning balance at Sep. 30, 2021 | $ 371,627 | $ 114 | 154,619 | 215,475 | 370,208 | 1,419 |
Beginning balance (shares) at Sep. 30, 2021 | 11,351,897 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 31,939 | 31,794 | 31,794 | 145 | ||
Share-based compensation | 582 | 582 | 582 | |||
Net settlement on issuance of common shares on exercise of options | 640 | $ 1 | 639 | 640 | ||
Net settlement on issuance of common shares on exercise of options (shares) | 57,732 | |||||
Ending balance at Dec. 31, 2021 | 404,788 | $ 115 | 155,840 | 247,269 | 403,224 | 1,564 |
Ending balance (shares) at Dec. 31, 2021 | 11,409,629 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 37,546 | 37,382 | 37,382 | 164 | ||
Share-based compensation | 573 | 573 | 573 | |||
Net settlement on issuance of common shares on exercise of options | 585 | $ 1 | 584 | 585 | ||
Net settlement on issuance of common shares on exercise of options (shares) | 104,381 | |||||
Ending balance at Mar. 31, 2022 | $ 443,492 | $ 116 | $ 156,997 | $ 284,651 | $ 441,764 | $ 1,728 |
Ending balance (shares) at Mar. 31, 2022 | 11,514,010 | 11,514,010 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | Aug. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared, per common share | $ 2 | $ 2 | $ 1.50 | $ 1.50 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Cash flows from operating activities: | |||
Net income | $ 95,609 | $ 109,853 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 24,077 | 2,494 | |
Amortization of loan cost | 2,089 | 1,661 | |
Deferred income taxes | (4,563) | (1,561) | |
Interest added to principal of secured loans | (13) | (9) | |
Share-based compensation | 1,628 | 659 | |
Write-down of digital assets | 50 | ||
Remeasurement gain on pre-existing equity method investment | (26,306) | ||
Earnings from equity method investments | (4,317) | (13,898) | |
Changes in assets and liabilities: | |||
Receivables | 23,364 | 3,507 | |
Secured loans receivable | 747 | 3,303 | |
Secured loans made to affiliates | (1,989) | 8,646 | |
Derivative assets | 18,563 | (18,342) | |
Precious metals held under financing arrangements | 67,292 | 17,589 | |
Inventories | (306,244) | (181,933) | |
Prepaid expenses and other assets | (1,923) | (634) | |
Account payable and other payables | 20,240 | (63,694) | |
Deferred revenue and other advances | (1,335) | 64,219 | |
Derivative liabilities | 17,244 | (13,113) | |
Liabilities on borrowed metals | (24,042) | (58,471) | |
Accrued liabilities | 2,569 | 4,258 | |
Income tax payable | (4,748) | 6,324 | |
Net cash used in operating activities | (75,702) | (155,448) | |
Cash flows from investing activities: | |||
Capital expenditures for property, plant, and equipment | (2,106) | (1,351) | |
Purchase of long-term investments | (6,750) | (6,763) | |
Secured loans receivable, net | (31,615) | (48,958) | |
Purchase of digital assets | (250) | ||
Other secured loans, net | 1,000 | ||
Incremental acquisition of pre-existing equity method investment, net of cash | (62,232) | ||
Net cash used in investing activities | (40,721) | (118,304) | |
Cash flows from financing activities: | |||
Product financing arrangements, net | (1,581) | 175,389 | |
Dividends paid | (22,639) | (21,191) | |
Borrowings and repayments under lines of credit, net | 70,000 | 30,000 | |
Net proceeds from the issuance of common stock | 75,315 | ||
Debt funding issuance costs | (4,187) | (1,831) | |
Net settlement on issuance of common shares on exercise of options | 1,974 | 2,511 | |
Net cash provided by financing activities | 43,567 | 260,193 | |
Net decrease in cash, cash equivalents, and restricted cash | (72,856) | (13,559) | |
Cash, cash equivalents, and restricted cash, beginning of period | 101,405 | [1] | 52,325 |
Cash, cash equivalents, and restricted cash, end of period | 28,549 | [1] | 38,766 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 15,244 | 12,655 | |
Income taxes paid | 33,108 | 18,086 | |
Income taxes refunded | (3,887) | ||
Non-cash investing and financing activities: | |||
Interest added to principal of secured loans | 13 | 9 | |
Fair value of shares exchanged for increase in long term investment | 2,978 | $ 41,608 | |
Addition of right of use assets under operating lease obligations | $ 2,013 | ||
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Description of Business
Description of Business | 9 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. DESCRIPTIO N OF BUSINESS Basis of Presentation The condensed consolidated financial statements comprise those of A-Mark Precious Metals, Inc. ("A-Mark" or the "Company"), its wholly-owned consolidated subsidiaries (including a wholly-owned variable interest entity), and its joint venture in which the Company has a controlling interest. Business Segments The Company conducts its operations in three reportable segments: (i) Wholesale Sales & Ancillary Services, (ii) Direct-to-Consumer, and (iii) Secured Lending. Each of these reportable segments represents an aggregation of operating segments that meets the aggregation criteria set forth in the Segment Reporting Topic 280 of the Accounting Standards Codification ("ASC 280"). (See Note 19 .) Wholesale Sales & Ancillary Services The Company operates its Wholesale Sales & Ancillary Services segment directly and through its wholly-owned subsidiaries, A-Mark Trading AG (“AMTAG”), Transcontinental Depository Services, LLC ("TDS" or “Storage”), A-M Global Logistics, LLC (“AMGL” or "Logistics"), and AM&ST Associates, LLC ("AMST" or the "SilverTowne Mint"). The Wholesale Sales & Ancillary Services segment operates as a full-service precious metals company. We offer gold, silver, platinum, and palladium in the form of bars, plates, powder, wafers, grain, ingots, and coins. Our Industrial unit services manufacturers and fabricators of products utilizing or incorporating precious metals. Our Coin and Bar unit deals in over 1,000 coin and bar products in a variety of weights, shapes, and sizes for distribution to dealers and other qualified purchasers. We have a marketing support office in Vienna, Austria, and a trading center in El Segundo, California. The trading center, for buying and selling precious metals, is available to receive orders 24 hours every day, even when many major world commodity markets are closed. In addition to Wholesale Sales activity, A-Mark offers its customers a variety of ancillary services, including financing, storage, consignment, logistics, and various customized financial programs. As a U.S. Mint-authorized purchaser of gold, silver, platinum, and palladium coins, A-Mark purchases product directly from the U.S. Mint and other sovereign mints for sale to its customers. Through its wholly-owned subsidiary AMTAG, the Company promotes A-Mark's products and services to the international market. Through our wholly-owned subsidiary TDS, we offer a variety of managed storage options for precious metals products to financial institutions, dealers, investors, and collectors around the world. The Company's wholly-owned subsidiary AMGL is based in Las Vegas, Nevada, and provides our customers an array of complementary services, including receiving, handling, inventorying, processing, packing, and shipping of precious metals and custom coins on a secure basis. Through its wholly-owned subsidiary AMST, the Company designs and produces minted silver products. Our SilverTowne Mint operations allow us to provide greater product selection to our customers and greater pricing stability within the supply chain, as well as to gain increased access to silver during volatile market environments, which have historically created higher demand for precious metals products. Direct-to- Consumer The Company operates its Direct-to-Consumer segment through its wholly-owned subsidiaries JM Bullion, Inc. (“JMB”) and Goldline, Inc. (“Goldline”.) JMB has five wholly-owned subsidiaries: Gold Price Group, Inc. (“GPG”), Silver.com, Inc. (“Silver.com”), Goldline Metal Buying Corp. (“GMBC”), Provident Metals Corp. (“PMC”), and Cybermetals Corp. ("CyberMetals"). Goldline, Inc. owns 100% of AMIP, LLC ("AMIP"), and has a 50 % ownership interest in Precious Metals Purchasing Partners, LLC ("PMPP".) As the context requires, references in these Notes to “JMB” may include GPG, Silver.com, GMBC, PMC, and CyberMetals, and references to “Goldline” may include AMIP and PMPP. JM Bullion, Inc. JMB is a leading e-commerce retailer providing access to a broad array of gold, silver, copper, platinum, and palladium products through its websites and marketplaces. JMB operates five separately branded, company-owned websites targeting specific niches within the precious metals retail market. During the third quarter of fiscal 2022, JMB beta tested the CyberMetals online platform, where customers may purchase fractional ounces of digital gold, silver, platinum and palladium in a range of denominations. CyberMetals’ customers have the option to convert their digital holdings to fabricated precious metals products via an integrated redemption flow with JMB. These products may be designated for storage by the Company or shipped directly to the customer. The CyberMetals platform was commercially launched in April 2022. Goldline, Inc. The Company acquired Goldline in August 2017 through an asset purchase transaction with Goldline, LLC, which had been in operation since 1960. Goldline is a direct retailer of precious metals to the investor community, and markets its precious metal products on television, radio, and the internet, as well as through customer service outreach. Goldline’s subsidiary AMIP manages its intellectual property. PMPP was formed in fiscal 2019 pursuant to terms of a joint venture agreement, for the purpose of purchasing precious metals from the partners' retail customers, and then reselling the acquired products back to affiliates of the partners. PMPP commenced its operations in fiscal 2020. Pro Forma Information for the Acquisition of JMB The Company acquired the 79.5 % interest in JMB that it did not previously own in March 2021. The following pro forma consolidated results of operations of the Company for the three and nine months ended March 31, 2021, assumes that the acquisition of JMB occurred on July 1, 2019. in thousands Three Months Ended Nine Months Ended March 31, March 31, Revenue $ 2,339,148 $ 5,974,317 Net income $ 80,673 $ 131,717 The above pro forma supplemental information does not purport to be indicative of what the Company's operations would have been had these transactions occurred on July 1, 2019 and should not be considered indicative of future operating results. The Company believes the assumptions used provide a reasonable basis for reflecting the significant pro forma effects directly attributable to the acquisition of JMB. The unaudited pro forma information accounts for: (i) eliminations of equity investment income recognized prior to the acquisition and transactions between JMB and A-Mark; and (ii) adjustments to the income tax provision, revenue for JMB sales orders that were shipped but not delivered as of period end; stock compensation expense, and the amortization expense related to the acquired finite-lived intangible assets at fair value. Secured Lending The Company operates its Secured Lending segment through its wholly-owned subsidiary, Collateral Finance Corporation, LLC including its two wholly-owned subsidiaries AM Capital Funding, LLC (“AMCF”), and CFC Alternative Investments (“CAI”), (collectively “CFC”). Collateral Finance Corporation, LLC is a California licensed finance lender that originates and acquires commercial loans secured by bullion and numismatic coins. CFC's customers include coin and precious metal dealers, investors, and collectors. AM Capital Funding, LLC (“AMCF”), a wholly-owned subsidiary of CFC, was formed for the purpose of securitizing eligible secured loans of CFC. AMCF issued and administers the Notes. (See Note 15 .) CAI is a holding company that has a 50 %-ownership stake in Collectible Card Partners, LLC ("CCP"). The purpose of CCP is to provide capital to fund commercial loans secured by graded sport cards and sports memorabilia. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFIC ANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements reflect the financial condition, results of operations, statements of stockholders’ equity, and cash flows of the Company, and were prepared using accounting principles generally accepted in the United States (“U.S. GAAP”). The Company consolidates its subsidiaries that are wholly-owned, and majority owned, and entities that are variable interest entities where the Company is determined to be the primary beneficiary. The Company’s condensed consolidated financial statements include the accounts of: A-Mark, AMTAG, TDS, AMGL, AMST, JMB, Goldline, and CFC (collectively the “Company”). Intercompany accounts and transactions are eliminated. Comprehensive Income For the nine months ended March 31, 2022 and 2021 , there were no items that gave rise to other comprehensive income or loss, and, as a result net income equaled comprehensive income. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. These estimates include, among others, determination of fair value, allowances for doubtful accounts, impairment assessments of property, plant and equipment and intangible assets, valuation allowance determination on deferred tax assets, determining the incremental borrowing rate for calculating right of use assets and lease liabilities, and revenue recognition judgments. Significant estimates also include the Company's fair value determination with respect to its financial instruments, intangible assets, and precious metals inventory. Actual results could materially differ from these estimates. Reclassification In our condensed consolidated statements of income, we present depreciation and amortization expense as a separate line item. In prior fiscal years, depreciation and amortization expense was a component of the selling, general, and administrative expenses line item. In our condensed consolidated balance sheets and condensed consolidated statements of cash flows, we present (i) accounts payable and other payables and (ii) deferred revenue and other advances as a separate line items. In prior fiscal years the aggregate amounts were presented in a single line item, as accounts payable and other current liabilities. Prior periods have been reclassified to conform to the current period presentation. These reclassifications have no impact on previously reported net income, financial position, or cash flows. Unaudited Interim Financial Information The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the condensed consolidated balance sheets, condensed consolidated statements of income, condensed consolidated statements of stockholders’ equity, and condensed consolidated statements of cash flows for the periods presented in accordance with U.S. GAAP. Operating results for the nine months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022 or for any other interim period during such fiscal year. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended 2021 (the “2021 Annual Report”), as filed with the SEC. Amounts related to disclosure of June 30, 2021 balances within these interim condensed consolidated financial statements were derived from the audited consolidated financial statements and notes thereto included in the 2021 Annual Report. Fair Value Measurement The Fair Value Measurements and Disclosures Topic 820 of the ASC ("ASC 820"), creates a single definition of fair value for financial reporting. The rules associated with ASC 820 state that valuation techniques consistent with the market approach, income approach, and/or cost approach should be used to estimate fair value. Selection of a valuation technique, or multiple valuation techniques, depends on the nature of the asset or liability being valued, as well as the availability of data. (See Note 3 . ) Concentration of Credit Risk Cash is maintained at financial institutions, and, at times, balances may exceed federally insured limits. The Company has not experienced any losses related to these balances. Assets that potentially subject the Company to concentrations of credit risk consist principally of receivables, loans of inventory to customers, and inventory hedging transactions. Based on an assessment of credit risk, the Company typically grants collateralized credit to its customers. Credit risk with respect to loans of inventory to customers is minimal. The Company enters into inventory hedging transactions, principally utilizing metals commodity futures contracts traded on national futures exchanges or forward contracts with credit worthy financial institutions. All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Substantially all of these transactions are secured by the underlying metals positions. Foreign Currency The functional currency of the Company is the United States dollar ("USD"). The functional currency of the Company's wholly-owned foreign subsidiary, AMTAG, is USD, but it maintains its books of record in the European Union Euro. The Company remeasures the financial statements of AMTAG into USD. The remeasurement of local currency amounts into USD creates remeasurement gains and losses, which are included in the consolidated statements of income. To manage the effect of foreign currency exchange fluctuations, the Company utilizes foreign currency forward contracts. These derivatives generate gains and losses when settled and/or marked-to-market. Business Combination The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. Transaction costs related to the acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and noncontrolling interests, if any, in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and noncontrolling interests, if any, in an acquired entity is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities. Net cash paid to acquire a business is classified as investing activities on the accompanying condensed consolidated statements of cash flows. For a given acquisition, the Company may identify certain pre-acquisition uncertainties as of the acquisition date and may extend our review and evaluation of these pre-acquisition uncertainties throughout the measurement period in order to obtain sufficient information to assess whether we include these uncertainties as a part of the purchase price allocation and, if so, to determine the estimated amounts. If we determine that a pre-acquisition contingency (non-income tax related) is probable in nature and estimable as of the acquisition date, we record our best estimate for such an uncertain possibility as a part of the preliminary purchase price allocation. We often continue to gather information and evaluate our pre-acquisition uncertainties throughout the measurement period and if we make changes to the amounts recorded or if we identify additional pre-acquisition uncertainties during the measurement period, such amounts will be included in the purchase price allocation during the measurement period and, subsequently, in our results of operations. Uncertain tax positions and tax related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. We review these items during the measurement period as we continue to actively seek and collect information relating to facts and circumstances that existed at the acquisition date. Changes to these uncertain tax positions and tax related valuation allowances made subsequent to the measurement period, or if they relate to facts and circumstances that did not exist at the acquisition date, are recorded in the "Provision for income taxes" line of the Company’s condensed consolidated statements of income. (See Note 1 .) Variable Interest Entity A variable interest entity ("VIE") is a legal entity that has either (i) a total equity investment that is insufficient to finance its activities without additional subordinated financial support or (ii) whose equity investors as a group lack the ability to control the entity’s activities or lack the ability to receive expected benefits or absorb obligations in a manner that is consistent with their investment in the entity. A VIE is consolidated for accounting purposes by its primary beneficiary, which is the party that has both the power to direct the activities that most significantly impact the VIEs economic performance, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates VIEs when it is deemed to be the primary beneficiary. Management regularly reviews and re-evaluates its previous determinations regarding whether it holds a variable interest in potential VIEs, the status of an entity as a VIE, and whether the Company is required to consolidate such VIEs in its condensed consolidated financial statements. AMCF, a wholly owned subsidiary of CFC, is a special purpose entity ("SPE") formed as part of a securitization transaction in order to isolate certain assets and distribute the cash flows from those assets to investors. AMCF was structured to insulate investors from claims on AMCF’s assets by creditors of other entities. The Company has various forms of on-going involvement with AMCF, which may include (i) holding senior or subordinated interests in AMCF; (ii) acting as loan servicer for a portfolio of loans held by AMCF; and (iii) providing administrative services to AMCF. AMCF is required to maintain separate books and records. The assets and liabilities of this VIE, as of March 31, 2022 and June 30, 2021, are indicated on the table that follows the condensed consolidated balance sheets. AMCF is considered a VIE because its initial equity investment may be insufficient to maintain its on-going collateral requirements without additional financial support from the Company. The securitization is primarily secured by bullion loans and precious metals, and the Company is required to continuously hedge the value of certain collateral and make future contributions as necessary. The Company is the primary beneficiary of this VIE because the Company has the right to determine the type of collateral (i.e., cash, secured loans, or precious metals), has the right to receive (and has received) the proceeds from the securitization transaction, earns on-going interest income from the secured loans (subject to collateral requirements), and has the obligation to absorb losses should AMCF's interest expense and other costs exceed its interest income. (See Note 15 .) Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. The Company did not have any cash equivalents as of March 31, 2022 and June 30, 2021 . Precious Metals held under Financing Arrangements The Company enters into arrangements with certain customers under which A-Mark purchases precious metals from the customers which are subject to repurchase by the customer at the spot value of the product on the repurchase date. The precious metals purchased under these arrangements consist of rare and unique items, and therefore the Company accounts for these transactions as precious metals held under financing arrangements, which generate financing income rather than revenue earned from precious metals inventory sales. In these repurchase arrangements, the Company holds legal title to the metals and earns financing income for the duration of the agreement. These arrangements are typically terminable by either party upon 14 days' notice. Upon termination, the customer’s right to repurchase any remaining precious metal is forfeited, and the related precious metals are reclassified as inventory held for sale. As of March 31, 2022 and June 30, 2021, precious metals held under financing arrangements totaled $ 87.5 million and $ 154.7 million respectively. The Company’s precious metals held under financing arrangements are marked-to-market. Inventories The Company's inventory, which consists primarily of bullion and bullion coins, is acquired and initially recorded at cost and then marked to fair market value. The fair market value of the bullion and bullion coins comprises two components: (i) published market values attributable to the cost of the raw precious metal, and (ii) the premium paid at acquisition of the metal, which is attributable to the incremental value of the product in its finished goods form. The market value attributable solely to such premium is readily determinable by reference to multiple reputable published sources. The Company’s inventory, except for certain lower of cost or net realizable value basis products (as discussed below), are subsequently recorded at their fair market values, that is, "marked-to-market." The daily changes in the fair market value of our inventory are offset by daily changes in the fair market value of hedging derivatives that are taken with respect to our inventory positions; both the change in the fair market value of the inventory and the change in the fair market value of these derivative instruments are recorded in cost of sales in the condensed consolidated statements of income. While the premium component included in inventory is marked-to-market, our commemorative coin inventory, including its premium component, is held at the lower of cost or net realizable value, because the value of commemorative coins is influenced more by supply and demand determinants than on the underlying spot price of the precious metal content of the commemorative coins. Unlike our bullion coins, the value of commemorative coins is not subject to the same level of volatility as bullion coins because our commemorative coins typically carry a substantially higher premium over the spot metal price than bullion coins. Neither the commemorative coin inventory nor the premium component of our inventory is hedged. (See Note 6 .) Leased Right of Use Assets We lease warehouse space, office facilities, and equipment. Our operating leases with terms longer than twelve months are recorded at the sum of the present value of the lease's fixed minimum payments as operating lease right of use assets ("ROU assets") in the Company’s condensed consolidated balance sheets. Lease terms include all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Our lease agreements do not contain any significant residual value guarantees or material restrictive covenants. Our finance leases (previously considered by the Company as capital leases prior to our adoption of ASU 2016-02, Leases (Topic 842) and subsequent related amendments (“ASC 842”) are another type of ROU asset but are classified in the Company’s condensed consolidated balance sheets as a component of property, plant, and equipment at the present value of the lease payments. The ROU asset amounts include any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by lease incentives. We use our incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases, as our leases do not have readily determinable implicit discount rates. Our incremental borrowing rate is the rate of interest that we would incur to borrow on a collateralized basis over a similar term and amount in a similar economic environment Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the ROU assets and interest expense for the outstanding lease liabilities using the discount rate discussed above. The depreciable life of ROU assets is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. (See Note 7 ) Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using a straight-line method based on the estimated useful lives of the related assets, ranging from three years to twenty-five years . Depreciation and amortization commence when the related assets are placed into service. Internal-use software development costs are capitalized during the application development stage. Internal-use software costs incurred during the preliminary project stage are expensed as incurred. Land is recorded at historical cost and is not depreciated. Repair and maintenance costs are expensed as incurred. We have no major planned maintenance activities related to our plant assets associated with our minting operations The Company reviews the carryi ng value of these assets for impairment whenever events and circumstances indicate that the carrying value of the asset may not be recoverable. In evaluating for impairment, the carrying value of each asset or group of assets is compared to the undiscounted estimated future cash flows expected to result from its use and eventual disposition. An impairment loss is recognized for the difference when the carrying value exceeds the discounted estimated future cash flows. The factors considered by the Company in performing this assessment include current and projected operating results, trends and prospects, the manner in which these assets are used, and the effects of obsolescence, demand and competition, as well as other economic factors. Finite-lived Intangible Assets Finite-lived intangible assets consist primarily of customer relationships, non-compete agreements, and employment contracts. Existing customer relationships intangible assets are amortized in a manner reflecting the pattern in which the economic benefits of the assets are consumed. All other intangible assets subject to amortization are amortized using the straight-line method over their useful lives, which are estimated to be one year to fifteen years . We review our finite-lived intangible assets for impairment under the same policy described above for property, plant, and equipment; that is, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Digital Assets The Company has purchased certain digital assets (crypto currencies) that are held for investment purposes. The Company accounts for digital assets in accordance with Intangibles - Goodwill and Other Topic 350 of the ASC ("ASC 350"). D igital assets are shown in the other long-term assets line item on the condensed consolidated balance sheets. Digital assets are a type of intangible asset with indefinite useful lives, which are recorded at cost less impairment. Accordingly, if the fair market value at any point d uring the reporting period is lower than the carrying value, an impairment loss is recorded. If the fair market value at any point during the reporting period is higher than the carrying value the basis of the digital assets will not be adjusted to account for this increase. Gains on digital assets, if any, are recognized upon sale or disposal of the digital assets. Write downs and gains are shown in the condensed consolidated statement of income, as component of the line item other income, net. As of March 31, 2022 and June 30, 2021, the carrying balance of the digital assets was $ 0.2 million and $ 0.0 million respectively, which is shown net of cumulative write-downs of $ 0.1 million and $ 0.0 million , respectively. As of March 31, 2022, the fair market value of such digital assets held was $ 0.3 million . For the three and nine months ended March 31, 2022, the Company recorded $ 0.1 million and $ 0.1 million , respectively, of write-downs on such digital assets. For the three and nine months ended March 31, 2022 , the Company had no realized gains related to sale of digital assets. For the three and nine months ended March 31, 2021 , the Company had no digital asset activity. Goodwill and Indefinite-lived Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill and other indefinite-lived intangibles (such as trade names and trademarks) are not subject to amortization but are evaluated for impairment at least annually. However, for tax purposes, goodwill acquired in connection with a taxable asset acquisition is generally deductible. The Company evaluates its goodwill and other indefinite-lived intangibles for impairment in the fourth quarter of the fiscal year (or more frequently if indicators of potential impairment exist) in accordance with ASC 350. Goodwill is reviewed for impairment at a reporting unit level, which for the Company, corresponds to the Company’s reportable operating segments. Evaluation of goodwill for impairment The Company has the option to first qualitatively assess whether relevant events and circumstances make it more likely than not that the fair value of the reporting unit's goodwill is less than its carrying value. A qualitative assessment includes analyzing current economic indicators associated with a particular reporting unit such as changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If, based on this qualitative assessment, management concludes that goodwill is more likely than not to be impaired, or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis to determine the fair value of the business, and compare the calculated fair value of the reporting unit with its carrying amount, including goodwill. If through this quantitative analysis the Company determines the fair value of a reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not to be impaired. If the Company concludes that the fair value of the reporting unit is less than its carrying value, a goodwill impairment loss will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. (See Note 9 .) Evaluation of indefinite-lived intangible assets for impairment The Company evaluates its indefinite-lived intangible assets (i.e., trade names and trademarks) for impairment. In assessing its indefinite-lived intangible assets for impairment, the Company has the option to first perform a qualitative assessment to determine whether events or circumstances exist that lead to a determination that it is unlikely that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If the Company determines that it is unlikely that the fair value of an indefinite-lived intangible asset is less than its carrying amount, the Company is not required to perform any additional tests in assessing the asset for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis to determine if the fair value of an indefinite-lived intangible asset is less than its carrying value. If through this quantitative analysis the Company determines the fair value of an indefinite-lived intangible asset exceeds its carrying amount, the indefinite-lived intangible asset is considered not to be impaired. If the Company concludes that the fair value of an indefinite-lived intangible asset is less than its carrying value, an impairment loss will be recognized for the amount by which the carrying amount exceeds the indefinite-lived intangible asset’s fair value. The methods used to estimate the fair value measurements of the Company’s reporting units and indefinite-lived intangible assets include those based on the income approach (including the discounted cash flow and relief-from-royalty methods) and those based on the market approach (primarily the guideline transaction and guideline public company methods). (See Note 9 .) Long-Term Investments Investments in privately-held entities are accounted for using the equity method when the Company has significant influence but not control over the investee and are accounted for using the cost method when the Company has little or no influence over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20 % and 50 %, although other factors are considered in determining whether the equity method of accounting is appropriate. Under the equity method, the carrying value of the investment is adjusted for the Company’s proportionate share of the investee’s earnings or losses, with the corresponding share of earnings or losses reported in other income, net. The carrying value of the investment is reduced by the amount of the dividends received from the equity-method investee, as they are considered a return of capital. Under the cost method of accounting, the investment is measured at cost, adjusted for other-than-temporary impairments, with changes recognized in net income. We evaluate our long-term investments for impairment quarterly or whenever events or changes in circumstances indicate that a decline in the fair value of these assets is determined to be other-than-temporary. Additionally, the Company performs an on-going evaluation of the investments with which the Company has variable interests to determine if any of these entities are VIEs that are required to be consolidated. None of the Company’s long-term investments are reportable VIEs as of March 31, 2022 and June 30, 2021 . Noncontrolling interest The Company’s condensed consolidated financial statements include entities in which the Company has a controlling financial interest. Noncontrolling interest is the portion of equity (net assets) in an entity in which the Company has a controlling financial interest that is not attributable, directly or indirectly, to the Company. Such noncontrolling interest is reported on the condensed consolidated balance sheets within equity, separately from the Company’s equity. On the condensed consolidated statements of income, revenues, expenses and net income or loss from the less-than-wholly owned subsidiary are reported at their consolidated amounts, including both the amounts attributable to the Company and the noncontrolling interest. Income or loss is allocated to the noncontrolling interest based on its weighted average ownership percentage for the applicable period. The condensed consolidated statements of equity include beginning balances, activity for the period and ending balances for each component of stockholders’ equity, noncontrolling interest and total equity. Revenue Recognition Settlement Date Accounting Substantially all of the Company’s sales of precious metals are conducted using sales contracts that meet the definition of derivative instruments in accordance with the Derivatives and Hedging Topic 815 of the ASC ("ASC 815"). The contract underlying A-Mark’s commitment to deliver precious metals is referred to as a “fixed-price forward commodity contract” because the price of the commodity is fixed at the time the order is placed. Revenue is recognized on the settlement date, which is defined as the date on which: (i) the quantity, price, and specific items being purchased have been established, (ii) metals have been delivered to the customer, and (iii) payment has been received or is covered by the customer’s established credit limit with the Company. All derivative instruments are marked-to-market during the interval between the order date and the settlement date, with the changes in the fair value charged to cost of sales. The Company’s hedging strategy to mitigate the market risk associated with its sales commitments is described separately below under the caption “Hedging Activities.” Types of Orders that are Physically Delivered The Company’s contracts to sell precious metals to customers are usually settled with the physical delivery of metals to the customer, although net settlement (i.e., settlement at an amount equal to the difference between the contract value and the market price of the metal on the settlement date) is permitted. Below is a summary of the Company’s major order types and the key factors that determine when settlement occurs and when revenue is recognized for each type: • Traditional physical orders — The quantity, specific product, and price are determined on the order date. Payment or sufficient credit is verified prior to delivery of the metals on the settlement date. • Consignment orders — The Company delivers the items requested by the customer prior to establishing a firm order with a price. Settlement occurs and revenue is recognized once the customer confirms its order (quantity, specific product, and price) and remits full payment for the sale. • Provisional orders — The quantity and type of metal is established at the order date, but the price is not set. The customer commits to purchasing the metals within a specified time period, usually within one year , at the then-current market price. The Company delivers the metal to the customer after receiving the customer’s deposit, which is typically based on 110 % of the prevailing current spot price. The unpriced metal is subject to a margin call if the deposit falls below 105 % of the value of the unpriced metal. The purchase price is established, and revenue is recognized at the time the customer notifies the Company that it desires to purchase the metal. • Margin orders — The quantity, specific product, and price are determined at the order date; however, the customer is allowed to finance the transaction through the Company and to defer delivery by committing to remit a partial payment (approximately 20 %) of the total order price. With the remittance of the partial payment, the customer locks in the purchase price for a specified time period (usually up to two years from the order date). Revenue on margin orders is recognized when the order is paid in full and delivered to the customer. • Borrowed precious metals orders for unallocated positions — Customers may purchase unallocated metal positions in the Company's inventory. The quantity and type of metal is established at the order date, but the specific product is not yet determined . Revenue is not recognized until the customer selects the specific precious metal product it wishes to purchase, full payment is received, and the product is delivered to the customer. In general, |
Assets and Liabilities, at Fair
Assets and Liabilities, at Fair Value | 9 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities, at Fair Value | 3. ASSETS AND LIABI LITIES, AT FAIR VALUE Fair Value of Financial Instruments A financial instrument is defined as cash, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from a second entity. The fair value of financial instruments represents amounts that would be received upon the sale of those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk adjusted discount rates, and available observable and unobservable inputs. For most of the Company's financial instruments, the carrying amount approximates fair value. The carrying amounts of cash, receivables, secured loans receivable, accounts payable and other current liabilities, accrued liabilities, and income taxes payable approximate fair value due to their short-term nature. The carrying amounts of derivative assets and derivative liabilities, liabilities on borrowed metals and product financing arrangements are marked-to-market on a daily basis to fair value. The carrying amounts of lines of credit approximate fair value based on the borrowing rates currently available to the Company for bank loans with similar terms and average maturities. The Company’s fixed-rate notes payable is reported at its aggregate principal amount less unamortized original issue discount and deferred financing costs on the accompanying condensed consolidated balance sheets. The fair value of the notes payable is based on the present value of the expected coupon and principal payments using an estimated discount rate based on current market rates for debt with similar credit risk. The following table presents the carrying amounts and estimated fair values of the Company’s fixed-rate notes payable as of March 31, 2022 and June 30, 2021: in thousands March 31, 2022 June 30, 2021 Carrying Fair value Carrying Fair value Notes payable $ 93,859 $ 96,047 $ 93,249 $ 100,724 Valuation Hierarchy In determining the fair value of its financial instruments, the Company employs a fair value hierarchy that prioritizes the inputs for the valuation techniques used to measure fair value. ASC 820 established a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement. Assets and Liabilities Measured at Fair Value on a Recurring Basis The significant assumptions used to determine the carrying value and the related fair value of the assets and liabilities measured at fair value on a recurring basis are described below: Inventories . The Company's inventory, which consists primarily of bullion and bullion coins, is acquired and initially recorded at cost and then marked to fair market value. The fair market value of the bullion and bullion coins comprises two components: i) published market values attributable to the cost of the raw precious metal, and ii) the premium paid at acquisition of the metal, which is attributable to the incremental value of the product in its finished goods form. The market value attributable solely to such premium is readily determinable by reference to multiple reputable published sources. Except for commemorative coin inventory, which are included in inventory at the lower of cost or net realizable value, the Company’s inventory is subsequently recorded at their fair market values on a daily basis. The fair value for commodities inventory (i.e., inventory excluding commemorative coins) is determined using pricing data derived from the markets on which the underlying commodities are traded. Precious metals commodities inventory is classified in Level 1 of the valuation hierarchy. Precious Metals held under Financing Arrangements . The Company enters into arrangements with certain customers under which A-Mark purchases precious metals from the customers which are subject to repurchase by the customer at the spot value of the product on the repurchase date. The precious metals purchased under these arrangements consist of rare and unique items, and therefore the Company accounts for these transactions as precious metals held under financing arrangements, which generate financing income rather than revenue earned from precious metals inventory sales. In these repurchase arrangements, the Company holds legal title to the metals and earns financing income for the duration of the agreement. The fair value for precious metals held under financing arrangements, (a commodity, like inventory above) is determined using pricing data derived from the markets on which the underlying commodities are traded. Precious metals held under financing arrangements are classified in Level 1 of the valuation hierarchy. Derivatives . Futures contracts, forward contracts, option contracts, and open sale and purchase commitments are valued at their fair values, based on the difference between the quoted market price and the contractual price (i.e., intrinsic value,) and are included within Level 1 of the valuation hierarchy. Margin and Borrowed Metals Liabilities . Margin and borrowed metals liabilities consist of the Company's commodity obligations to margin customers and suppliers, respectively. Margin liabilities and borrowed metals liabilities are carried at fair value, which is determined using quoted market pricing and data derived from the markets on which the underlying commodities are traded. Margin and borrowed metals liabilities are classified in Level 1 of the valuation hierarchy. Product Financing Arrangements . Product financing arrangements consist of financing agreements for the transfer and subsequent re-acquisition of the sale of gold and silver at an agreed-upon price based on the spot price with a third party. Such transactions allow the Company to repurchase this inventory on the termination (repurchase) date. The third party charges monthly interest as a percentage of the market value of the outstanding obligation, which is carried at fair value. The obligation is stated at the amount required to repurchase the outstanding inventory. Fair value is determined using quoted market pricing and data derived from the markets on which the underlying commodities are traded. Product financing arrangements are classified in Level 1 of the valuation hierarchy. The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and June 30, 2021, aggregated by each fair value hierarchy level: in thousands March 31, 2022 Quoted Price in Active Markets Significant Other Significant for Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Inventories (1) $ 763,155 $ — $ — $ 763,155 Precious metals held under financing arrangements 87,450 — — 87,450 Derivative assets — open sale and purchase commitments, net 25,389 — — 25,389 Derivative assets — futures contracts 138 — — 138 Derivative assets — forward contracts 446 — — 446 Total assets, valued at fair value $ 876,578 $ — $ — $ 876,578 Liabilities: Liabilities on borrowed metals $ 67,824 $ — $ — $ 67,824 Product financing arrangements 199,447 — — 199,447 Derivative liabilities — open sale and purchase commitments, net 2,522 — — 2,522 Derivative liabilities — margin accounts 4,081 — — 4,081 Derivative liabilities — futures contracts 1,260 — — 1,260 Derivative liabilities — forward contracts 16,920 — — 16,920 Total liabilities, valued at fair value $ 292,054 $ — $ — $ 292,054 (1) Commemorative coin inventory totaling $ 1,108 thousand is held at lower of cost or realizable value, and thus is excluded from the inventories balance shown in this table. in thousands June 30, 2021 Quoted Price in Active Markets Significant Other Significant for Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Inventories (1) $ 457,613 $ — $ — $ 457,613 Precious metals held under financing arrangements 154,742 — — 154,742 Derivative assets — open sale and purchase commitments, net 38,340 — — 38,340 Derivative assets — futures contracts 4,510 — — 4,510 Derivative assets — forward contracts 1,686 — — 1,686 Total assets, valued at fair value $ 656,891 $ — $ — $ 656,891 Liabilities: Liabilities on borrowed metals $ 91,866 $ — $ — $ 91,866 Product financing arrangements 201,028 — — 201,028 Derivative liabilities — open sale and purchase commitments, net 243 — — 243 Derivative liabilities — margin accounts 2,806 — — 2,806 Derivative liabilities — futures contracts 465 — — 465 Derivative liabilities — forward contracts 4,025 — — 4,025 Total liabilities, valued at fair value $ 300,433 $ — $ — $ 300,433 (1) Commemorative coin inventory totaling $ 406 thousand is held at lower of cost or net realizable value, and thus is excluded from the inventories balance shown in this table. There were no transfers in or out of Level 2 or 3 from other levels within the fair value hierarchy during the reported periods. Assets Measured at Fair Value on a Non-Recurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an on-going basis but are subject to fair value adjustments only under certain circumstances. These include (i) investments in private companies when there are identifiable events or changes in circumstances that may have a significant adverse impact on the fair value of these assets, (ii) equity method investments that are remeasured to the acquisition-date fair value upon the Company obtaining a controlling interest in the investee during a step acquisition, (iii) property, plant, and equipment and definite-lived intangibles, (iv) digital assets, (v) goodwill, or (vi) indefinite-lived intangibles, all of which are written down to fair value when they are held for sale or determined to be impaired. With the exception of digital assets, our non-recurring valuations use significant unobservable inputs and significant judgments and therefore fall under Level 3 of the fair value hierarchy. The valuation inputs include assumptions on the appropriate discount rates, long-term growth rates, relevant comparable company earnings multiples, and the amount and timing of expected future cash flows. The cash flows employed in the analyses are based on the Company’s estimated outlook and various growth rates. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective equity method investment, asset group, or reporting unit. In assessing the reasonableness of its determined fair values, the Company evaluates its results against other value indicators, such as comparable transactions and comparable public company trading values. The Company used a third-party independent valuation specialist to assist us to determine the fair value of the net assets acquired in connection with Company’s step acquisition of JMB. (Refer to Note 1 in our 2021 Annual Report.) In regards to the Company's digital assets, the fair value is determined quarterly in accordance with ASC 820 and is based on quoted prices on the active exchange(s) that we have determined is the principal market for such assets (Level 1 inputs). When the quoted prices on active exchanges decrease and indicate that it is more likely than not that our digital assets are impaired, we consider the lowest market price of one unit of digital asset quoted on the active exchange since acquiring the digital asset. If the then current carrying value of a digital asset exceeds the fair value so determined, an impairment loss has occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the price determined. As of March 31, 2022, the carrying amounts and estimated fair values of the Company’s digital assets totaled $ 0.2 million and $ 0.3 million , respectively. |
Receivables
Receivables | 9 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Receivables | 4. RECE IVABLES Receivables consist of the following as of March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Customer trade receivables $ 22,539 $ 12,197 Wholesale trade advances 24,156 26,959 Due from brokers 18,941 49,844 $ 65,636 $ 89,000 Customer Trade Receivables. Customer trade receivables represent short-term, non-interest bearing amounts due from precious metal sales, advances related to financing products, and other secured interests in assets of the customer. Wholesale Trade Advances. Wholesale trade advances represent advances of various bullion products and cash advances for purchase commitments of precious metal inventory. Typically, these advances are unsecured, short-term, and non-interest bearing, and are made to wholesale metals dealers and government mints. Due from Brokers . Due from brokers principally consists of the margin requirements held at brokers related to open futures contracts. (See Note 12 .) |
Secured Loans Receivable
Secured Loans Receivable | 9 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Secured Loans Receivable | 5. SECURED LO ANS RECEIVABLE Below is a summary of the carrying value of our secured loans as of March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Secured loans originated $ 43,884 $ 36,080 Secured loans originated - with a related party 7,034 3,042 50,918 39,122 Secured loans acquired 94,920 73,846 $ 145,838 $ 112,968 Secured Loans - Originated : Secured loans include short-term loans, which include a combination of on-demand lines and short-term facilities. These loans are fully secured by the customers' assets, which predominantly include bullion and numismatic and semi-numismatic material, and which are typically held in safekeeping by the Company. (See Note 14 for further information regarding our secured loans made to related parties.) Secured Loans - Acquired : Secured loans also include short-term loans, which include a combination of on-demand lines and short term facilities that are purchased from our customers. The Company acquires a portfolio of their loan receivables at a price that approximates the outstanding balance of each loan in the portfolio, as determined on the effective transaction date. Each loan in the portfolio is fully secured by the borrowers' assets, which include bullion and numismatic and semi-numismatic material, and which are typically held in safekeeping by the Company. The seller of the loan portfolio generally retains the responsibility for the servicing and administration of the loans. As of March 31, 2022 and June 30, 2021, our secured loans carried weighted-average effective interest rates of 8.9 % and 8.9 % , respectively, and mature in periods ranging typically from on-demand to one year. The secured loans that the Company generates with active customers of A-Mark are reflected as an operating activity on the condensed consolidated statements of cash flows. The secured loans that the Company generates with borrowers that are not active customers of A-Mark are reflected as an investing activity on the condensed consolidated statements of cash flows as secured loans receivables, net. For the secured loans that (i) are reflected as an investing activity and have terms that allow the borrowers to increase their loan balance (at the discretion of the Company) based on the excess value of their collateral compared to their aggregate principal balance of loan, and (ii) are repayable on demand or in the short-term, the borrowings and repayments are netted on the condensed consolidated statements of cash flows. Credit Quality of Secured Loans Receivables and Allowance for Credit Losses General The Company's secured loan receivables portfolio comprises loans with similar credit risk profiles, which enables the Company to apply a standard methodology to determine the credit quality for each loan and the allowance for credit losses, if any. The credit quality of each loan is generally determined by the collateral value assessment, loan-to-value (“LTV”) ratio (that is, the principal amount of the loan divided by the estimated value of the collateral) and the type (or class) of secured material. All loans are fully secured by precious metal bullion, numismatic and semi-numismatic collateral, or graded sports memorabilia, which remains in the physical custody of the Company for the duration of the loan. The term of the loans is generally 180 days, however loans are typically renewed prior to maturity and therefore remain outstanding for a longer period of time. Interest earned on a loan is billed monthly and is typically due and payable within 20 days and, if not paid after all applicable grace periods, is added to the outstanding principal balance, and late fees and default interest rates are assessed. When an account is in default or if a margin call has not been met on a timely basis, the Company has the right to liquidate the borrower's collateral in order to satisfy the unpaid balance of the outstanding loans, including accrued and unpaid interest. Class and Credit Quality of Loans The three classes of secured loan receivables are defined by collateral type: (i) bullion, (ii) numismatic and semi-numismatic and (iii) graded sports memorabilia. The Company required LTV ratios vary with the class of loans. Typically, the Company requires a LTV ratio of approximately 75 % for bullion, 65 % for numismatic and semi-numismatic collateral, and 50.0 % for graded sports memorabilia. The LTV ratio for loans collateralized by numismatic and semi-numismatic collateral is typically lower on a percentage basis than bullion collateralized loans because a higher value of the numismatic and semi-numismatic collateral relates to its premium value, rather than its underlying commodity value. The LTV ratio for loans collateralized by graded sports memorabilia is lower because the underlying collateral is not as liquid as bullion and numismatic and semi-numismatic collateral. The Company's secured loans by portfolio class, which align with internal management reporting, are as follows: in thousands March 31, 2022 June 30, 2021 Bullion $ 108,253 74.2 % $ 88,332 78.2 % Numismatic and semi-numismatic 36,303 24.9 % 24,636 21.8 % Graded sports memorabilia 1,282 0.9 % — 0.0 % $ 145,838 100.0 % $ 112,968 100.0 % Due to the nature of market fluctuations of pr ecious metal commodity prices, the Company monitors the bullion collateral value of each loan on a daily basis, based on spot price of precious metals. Numismatic and graded sports memorabilia collateral values are updated by numismatic and graded sports memorabilia specialists typically within every 90 days and when loan terms are renewed. Generally, we initiate the margin call process when the outstanding loan balance is in excess of 85 % of the current value of the underlying collateral. In the event that a borrower fails to meet a margin call to reestablish the required LTV ratio, the loan is considered in default. The collateral material (either bullion, numismatic or graded sports memorabilia) underlying such loans is then sold by the Company to satisfy all amounts due under the loan. Loans with LTV ratios of less than 75% are generally considered to be higher quality loans. Below is summary of aggregate outstanding secured loan balances bifurcated into (i) loans with a LTV ratio of less than 75% and (ii) loans with a LTV ratio of 75% or more: in thousands March 31, 2022 June 30, 2021 Loan-to-value of less than 75% $ 105,072 72.0 % $ 96,602 85.5 % Loan-to-value of 75% or more 40,766 28.0 % 16,366 14.5 % $ 145,838 100.0 % $ 112,968 100.0 % The Company had no loans with a LTV ratio in excess of 100% as of March 31, 2022 and June 30, 2021. Non-Performing Loans/Impaired Loans Historically, the Company has not established an allowance for any credit losses because the Company has liquidated the collateral to satisfy the amount due before any loan becomes non-performing or impaired. Non-performing loans have the highest probability for credit loss. The allowance for secured loan credit losses attributable to non-performing loans is based on the most probable source of repayment, which is normally the liquidation of collateral. Due to the accelerated liquidation terms of the Company's loan portfolio, past due loans are generally liquidated within 90 days of default before a loan becomes non-performing. In the event a loan were to become non-performing, the Company would determine a reserve to reduce the carrying balance to its estimated net realizable value. As of March 31, 2022 and June 30, 2021, the Company had no allowance for secured loan losses or loans classified as non-performing. A loan is considered impaired if it is probable, based on current information and events, that the Company will be unable to collect all amounts due according to the contractual terms of the loan. Customer loans are reviewed for impairment and include loans that are past due or non-performing, or if the customer is in bankruptcy. In the event of an impairment, recognition of interest income would be suspended, and the loan would be placed on non-accrual status at the time. Accrual would be resumed, and previously suspended interest income would be recognized, when the loan becomes contractually current and/or collection doubts are removed. Cash receipts on impaired loans are recorded first against the receivable and then to any unrecognized interest income. For the nine months ended March 31, 2022 and 2021, the Company incurred no loan impairment costs and no loans were placed on a non-accrual status. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. INV ENTORIES Our inventory consists of the precious metals that the Company has physically received, and inventory held by third-parties, which, at the Company's option, it may or may not receive. Below, our inventory is summarized by classification at March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Inventory held for sale $ 435,343 $ 159,319 Repurchase arrangements with customers 105,196 75,063 Consignment arrangements with customers 1,001 1,327 Commemorative coins, held at lower of cost or net realizable value 1,108 406 Borrowed precious metals 22,168 20,876 Product financing arrangements, restricted 199,447 201,028 $ 764,263 $ 458,019 Inventory Held for Sale . Inventory held for sale represents precious metals, excluding commemorative coin inventory, that have been received by the Company and are not subject to repurchase by or consignment arrangements with third parties, borrowed precious metals, and product financing arrangements. As of March 31, 2022 and June 30, 2021, the inventory held for sale totaled $ 435.3 million and $ 159.3 million , respectively. Repurchase Arrangements with Customers . The Company enters into arrangements with certain customers under which A-Mark purchases precious metals from the customers which are subject to repurchase by the customer at the fair value of the product on the repurchase date. Under these arrangements, the Company, which holds legal title to the metals, earns financing income until the time the arrangement is terminated, or the material is repurchased by the customer. In the event of a repurchase by the customer, the Company records a sale. These arrangements are typically terminable by either party upon 14 days' notice. Upon termination, the customer’s rights to repurchase any remaining inventory is forfeited. As of March 31, 2022 and June 30, 2021, included within inventories is $ 105.2 million and $ 75.1 million , respectively, of precious metals products subject to repurchase arrangements with customers. Consignment Arrangements with Customers . The Company periodically loans metals to customers `on a short-term consignment basis. Inventory loaned under consignment arrangements to customers as of March 31, 2022 and June 30, 2021 totaled $ 1.0 million and $ 1.3 million , respectively. Such transactions are recorded as sales and are removed from the Company's inventory at the time the customer elects to price and purchase the precious metals. Commemorative Coins . Our commemorative coin inventory, including its premium component, is held at the lower of cost or net realizable value, because the value of commemorative coins is influenced more by supply and demand determinants than on the underlying spot price of the precious metal content of the commemorative coins. The value of commemorative coins is not subject to the same level of volatility as bullion coins because our commemorative coins typically carry a substantially higher premium over the spot metal price than bullion coins. Our commemorative coins are not hedged and totaled $ 1.1 million and $ 0.4 million as of March 31, 2022 and June 30, 2021, respectively. Borrowed Precious Metals . Borrowed precious metals inventory include: (i) metals held by suppliers as collateral on advanced pool metals, (ii) metals due to suppliers for the use of their consigned inventory, (iii) unallocated metal positions held by customers in the Company’s inventory, and (iv) shortages in unallocated metal positions held by the Company in the supplier’s inventory. Unallocated or pool metal represents an unsegregated inventory position that is due on demand, in a specified physical form, based on the total ounces of metal held in the position. Amounts due under these arrangements require delivery either in the form of precious metals or cash. The Company's inventory included borrowed precious metals with market values totaling $ 22.1 million and $ 20.9 million as of March 31, 2022 and June 30, 2021, respectively, with a corresponding offsetting obligation reflected as liabilities on borrowed metals on the condensed consolidated balance sheets. Product Financing Arrangements . This inventory represents amounts held as security by lenders for obligations under product financing arrangements. The Company enters into a product financing agreement for the transfer and subsequent re-acquisition of gold and silver at an agreed-upon price based on the spot price with a third-party finance company. This inventory is restricted and is held at a custodial storage facility in exchange for a financing fee, paid to the third-party finance company. During the term of the financing, the third-party finance company holds the inventory as collateral, and both parties intend for the inventory to be returned to the Company at an agreed-upon price based on the spot price on the finance arrangement termination date. These transactions do not qualify as sales and have been accounted for as financing arrangements in accordance with ASC 470-40 Product Financing Arrangements . The obligation is stated at the amount required to repurchase the outstanding inventory. Both the product financing arrangements and the underlying inventory are carried at fair value, with changes in fair value included in cost of sales in the condensed consolidated statements of income. Such obligations totaled $ 199.4 million and $ 201.0 million as of March 31, 2022 and June 30, 2021, respectively. The Company mitigates market risk of its physical inventory and open commitments through commodity hedge transactions. (See Note 12 .) As of March 31, 2022 and June 30, 2021, the unrealized gains (losses) resulting from the difference between market value and cost of physical inventory were $ 12.6 million and ($ 5.6 ) million , respectively. Premium component of inventory The premium component, at market value, included in the inventory as of March 31, 2022 and June 30, 2021 totaled $ 20.4 million and $ 11.0 million , respectively. |
Leases
Leases | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 7. L E ASES As of March 31, 2022 and June 30, 2021, the balance of the operating lease right of use assets ("ROU") was $ 6.8 million and $ 5.7 million respectively. Components of operating lease expense for the three and nine months ended March 31, 2022 and 2021 were as follows: in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Operating lease costs $ 347 $ 361 $ 1,181 $ 1,060 Variable lease costs 143 67 379 217 Short term lease costs 23 21 70 73 Finance lease costs 6 5 16 16 $ 519 $ 454 $ 1,646 $ 1,366 For the nine months ended March 31, 2022 , we made cash payments of $ 1.4 million for operating lease obligations. These payments are included in operating cash flows. At March 31, 2022 , the weighted-average remaining lease term under our capitalized operating leases was 5.6 years, while the weighted-average discount rate for our operating leases was approximately 4.9 % . The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of March 31, 2022: Years ending June 30, Operating 2022 (3 months remaining) 380 2023 1,646 2024 1,692 2025 1,669 2026 1,244 Thereafter 2,102 Total lease payments 8,733 Imputed interest ( 1,159 ) $ 7,574 (1) Operating lease liability - current $ 1,270 (2) Operating lease liability - long-term 6,304 (3) $ 7,574 (1) (1) Represents the present value of the capitalized operating lease liabilities as of March 31, 2022. (2) Current operating lease liabilities are presented within accrued liabilities on our condensed consolidated balance sheets. (3) Long-term operating lease liabilities are presented within other liabilities on our condensed consolidated balance sheets. The Company has no related party leases. We do not have leases that have not yet commenced, which would create significant rights and obligations for us, including any involvement with the construction or design of the underlying asset. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | 8. PROPERTY, PLA NT, AND EQUIPMENT Property, plant, and equipment consists of the following at March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Office furniture, and fixtures $ 2,177 $ 2,373 Computer equipment 1,222 1,069 Computer software 6,267 5,387 Plant equipment 6,135 5,535 Building 509 505 Leasehold improvements 3,012 3,009 Total depreciable assets 19,322 17,878 Less: Accumulated depreciation and amortization ( 11,461 ) ( 10,714 ) Property and equipment not placed in service 1,645 1,409 Land 36 36 Property, plant, and equipment, net $ 9,542 $ 8,609 Property, plant and equipment depreciation and amortization expense for the three months ended March 31, 2022 and 2021 was $ 0.4 million and $ 0.3 million respectively. Property, plant and equipment depreciation and amortization expense for the nine months ended March 31, 2022 and 2021 was $ 1.2 million and $ 1.0 million , respectively. For the periods presented, depreciation and amortization expense allocable to cost of sales was not significant. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 9. GOODWILL AND INTANGIBLE ASSETS Goodwill is an intangible asset that arises when a company acquires an existing business or assets (net of assumed liabilities) which comprise a business. In general, the amount of goodwill recorded in an acquisition is calculated as the purchase price of the business minus the fair market value of the tangible assets and the identifiable intangible assets, net of the assumed liabilities. Goodwill and intangibles can also be established by push-down accounting. Below is a summary of the significant transactions that generated goodwill and intangible assets of the Company: • In connection with the acquisition of A-Mark by Spectrum Group International, Inc. in July 2005, the accounts of the Company were adjusted using the push down basis of accounting to recognize the allocation of the consideration paid to the respective net assets acquired. In accordance with the push down basis of accounting, the Company's net assets were adjusted to their fair values as of the date of the acquisition based upon an independent appraisal. • In connection with the Company's business combination with AMST in August 2016, the Company recorded an additional $ 2.5 million and $ 4.3 million of identifiable intangible assets and goodwill, respectively; these values were based upon an independent appraisal and represent their fair values at the acquisition date. The Company’s investment in AMST has resulted in synergies between the acquired minting operation and the Company’s established distribution network by providing a steadier and more reliable fabricated source of silver during times of market volatility. The Company considers that much of the acquired goodwill relates to the “ready state” of AMST's established minting operation with existing quality processes, procedures, and ability to scale production to meet market needs. • In connection with the Company's acquisition of Goldline in August 2017, the Company recorded $ 5.0 million and $ 1.4 million of additional identifiable intangible assets and goodwill, respectively; these values were based upon an independent appraisal and represent their fair values at the acquisition date. The Company’s investment in Goldline created synergies between Goldline's direct marketing operation and the Company’s established distribution network, secured storage and lending operations that has led to increased product margin spreads, and lower distribution and storage costs for Goldline. • In March 2021, the Company acquired 100 % ownership of JMB, in which we previously held a 20.5 % equity interest. At the acquisition date we measured the value of identifiable intangible assets and goodwill at $ 98.0 million and $ 92.1 million, respectively. Carrying Value The carrying value of goodwill and other purchased intangibles as of March 31, 2022 and June 30, 2021 is as described below: dollar amounts in thousands March 31, 2022 June 30, 2021 Estimated Remaining Gross Accumulated Accumulated Net Gross Accumulated Accumulated Net Identifiable intangible assets: Existing customer 5 - 15 3.1 $ 53,498 $ ( 36,736 ) $ — $ 16,762 $ 53,498 $ ( 15,832 ) $ — $ 37,666 Developed technology 4 3.0 10,500 ( 2,710 ) — 7,790 10,500 ( 741 ) — 9,759 Non-compete and other 3 - 5 0.0 2,300 ( 2,300 ) — — 2,300 ( 2,256 ) — 44 Employment agreement 1 - 3 0.0 295 ( 295 ) — — 295 ( 295 ) — — Intangibles subject to amortization 66,593 ( 42,041 ) — 24,552 66,593 ( 19,124 ) — 47,469 Trade names and trademarks Indefinite Indefinite 47,454 — ( 1,290 ) 46,164 47,454 — ( 1,290 ) 46,164 Identifiable intangible assets $ 114,047 $ ( 42,041 ) $ ( 1,290 ) 70,716 $ 114,047 $ ( 19,124 ) $ ( 1,290 ) $ 93,633 Goodwill Indefinite Indefinite $ 102,307 $ — $ ( 1,364 ) $ 100,943 $ 102,307 $ — $ ( 1,364 ) $ 100,943 The Company's intangible assets are subject to amortization except for trade names and trademarks, which have an indefinite life. Existing customer relationships intangible assets are amortized in a manner reflecting the pattern in which the economic benefits of the assets are consumed. All other intangible assets subject to amortization are amortized using the straight-line method over their useful lives, which are estimated to be one to fifteen years . Amortization expense related to the Company's intangible assets for the three months ended March 31, 2022 and 2021 was $ 7.2 million and $ 1.1 million , respectively. Amortization expense related to the Company's intangible assets for the nine months ended March 31, 2022 and 2021 was $ 22.9 million and $ 1.5 million , respectively. For the presented periods, amortization expense allocable to cost of sales was not significant. Impairment The accumulated impairment charge of $ 2.7 million (goodwill and indefinite-lived intangible assets) was a non-recurring charge for fiscal 2018 related to Goldline. No further impairment of goodwill or indefinite-lived intangible assets has occurred since fiscal 2018. Estimated Amortization Estimated annual amortization expense related to definite-lived intangible assets for the succeeding five years is as follows (in thousands): Fiscal Year Ending June 30, Amount 2022 (3 months remaining) 2,752 2023 9,893 2024 7,382 2025 4,240 2026 47 Thereafter 238 $ 24,552 |
Long-Term Investments
Long-Term Investments | 9 Months Ended |
Mar. 31, 2022 | |
Long-term Investments [Abstract] | |
Long-Term Investments | 10. LONG-TERM INVESTMENTS As of March 31, 2022, the Company had five investments in privately-held entities. The Company has determined that it is appropriate to account for four of these investments under the equity method of accounting, and the remaining investment under the cost-basis method of accounting. The following table shows the carrying value and ownership percentage of the Company's investment in each entity: March 31, 2022 June 30, 2021 Investee (1) (2) Carrying Ownership Carrying Ownership (in thousands) (in thousands) Company A $ 4,579 7.4 % $ 3,795 7.4 % Company C (3) 13,220 49.0 % 1,940 10.0 % Company D 12,477 44.9 % 10,499 44.9 % Company E 233 33.3 % 233 33.3 % Company F 2,002 50.0 % 2,000 50.0 % $ 32,511 $ 18,467 (1) JMB was previously reported as Company B. In March 2021, we acquired the remaining ownership interest in JMB that we did not previously own and consequently consolidated JMB as a wholly-owned subsidiary. (2) All of the Company's investees are accounted for using the equity method, with the exception of Company E, which is accounted for using the cost method. (3) On August 27, 2021 , the Company increased its ownership interest in Company C from 10 % to 49 %, for a purchase price of $ 9.75 million, consisting of $ 6.75 million in cash and 61,590 shares of the Company’s common stock. The Company acquired its initial minority investment in January 2019. The Company considers all of our equity method investees to be related parties. See Note 14 for a summary of the Company's aggregate balances and activity with these related party entities. Company E is a cost method investment, which is not a related party. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 9 Months Ended |
Mar. 31, 2022 | |
Accounts Payable And Other Current Liabilities [Abstract] | |
Accounts Payable and Other Current Liabilities | 11. ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES Accounts payable and other current liabilities consist of the following: in thousands March 31, June 30, Trade payables to customers $ 21,827 $ 1,561 Other accounts payable 4,348 4,374 Trade payables and other payables $ 26,175 $ 5,935 Deferred revenue $ 30,974 $ 20,508 Advances from customers 162,107 173,908 Deferred revenue and advances from customers $ 193,081 $ 194,416 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Transactions | 9 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Transactions | 12. DERIVATIVE INSTRUMENT S AND HEDGING TRANSACTIONS The Company is exposed to market risk, such as changes in commodity prices and foreign exchange rates. To manage the volatility related to these exposures, the Company enters into various derivative products, such as forwards and futures contracts. By policy, the Company historically has entered into derivative financial instruments for the purpose of hedging substantially all of Company's market exposure to precious metals prices, and not for speculative purposes. The Company’s gains (losses) on derivative instruments are substantially offset by the changes in the fair market value of the underlying precious metals inventory, both of which are recorded in cost of sales in the condensed consolidated statements of income. Commodity Price Management The Company manages the value of certain assets and liabilities of its trading business, including trading inventory, by employing a variety of hedging strategies. These strategies include the management of exposure to changes in the market values of the Company's trading inventory through the purchase and sale of a variety of derivative instruments, such as forwards and futures contracts. The Company enters into derivative transactions solely for the purpose of hedging its inventory subject to price risk, and not for speculative market purposes. Due to the nature of the Company's global hedging strategy, the Company is not using hedge accounting as defined under ASC 815, whereby the gains or losses would be deferred and included as a component of other comprehensive income . Instead, gains or losses resulting from the Company's futures and forward contracts and open sale and purchase commitments are reported in the condensed consolidated statements of income as unrealized gains or losses on commodity contracts (a component of cost of sales) with the related unrealized amounts due from or to counterparties reflected as derivative assets or liabilities on the condensed consolidated balance sheets. The Company's trading inventory and purchase and sale transactions consist primarily of precious metal products. The value of these assets and liabilities are marked-to-market daily to the prevailing closing price of the underlying precious metals. The Company's precious metals inventory is subject to market value changes, created by changes in the underlying commodity market prices. Inventory purchased or borrowed by the Company is subject to price changes. Inventory borrowed is considered a natural hedge, since changes in value of the metal held are offset by the obligation to return the metal to the supplier. The Company’s open sale and purchase commitments typically settle within 2 business days, and for those commitments that do not have stated settlement dates, the Company has the right to settle the positions upon demand. Futures and forwards contracts open at end of any period typically settle within 30 days. Open sale and purchase commitments are subject to changes in value between the date the purchase or sale price is fixed (the trade date) and the date the metal is received or delivered (the settlement date). The Company seeks to minimize the effect of price changes of the underlying commodity through the use of forward and futures contracts. The Company's policy is to substantially hedge its inventory position, net of open sale and purchase commitments that are subject to price risk. The Company regularly enters into precious metals commodity forward and futures contracts with financial institutions to hedge price changes that would cause changes in the value of its physical metals positions and purchase commitments and sale commitments. The Company has access to all of the precious metals markets, allowing it to place hedges. The Company also maintains relationships with major market makers in every major precious metals dealing center. The Company’s management sets credit and position risk limits. These limits include gross position limits for counterparties engaged in sales and purchase transactions with the Company. They also include collateral limits for different types of sale and purchase transactions that counterparties may engage in from time to time. Derivative Assets and Liabilities The Company's derivative assets and liabilities represent the net fair value of the difference (or intrinsic value) between market values and trade values at the trade date for open precious metals sale and purchase contracts, as adjusted on a daily basis for changes in market values of the underlying metals, until settled. The Company's derivative assets and liabilities represent the net fair value of open precious metals forwards and futures contracts. The precious metals forwards and futures contracts are settled at the contract settlement date. All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions (i.e., offsetting derivative instruments). As such, for the Company's derivative contracts with the same counterparty, the receivables and payables have been netted on the condensed consolidated balance sheets. Such derivative contracts include open sale and purchase commitments, futures, forwards and margin accounts. In the table below, the aggregate gross and net derivative receivables and payables balances are presented by contract type and type of hedge, as of March 31, 2022 and June 30, 2021. in thousands March 31, 2022 June 30, 2021 Gross Amounts Cash Net Gross Amounts Cash Net Nettable derivative assets: Open sale and purchase commitments $ 41,283 $ ( 15,894 ) $ — $ 25,389 $ 56,923 $ ( 18,583 ) $ — $ 38,340 Future contracts 138 — — 138 4,510 — — 4,510 Forward contracts 446 — — 446 1,686 — — 1,686 $ 41,867 $ ( 15,894 ) $ — $ 25,973 $ 63,119 $ ( 18,583 ) $ — $ 44,536 Nettable derivative liabilities: Open sale and purchase commitments $ 3,597 $ ( 1,075 ) $ — $ 2,522 $ 1,410 $ ( 1,167 ) $ — $ 243 Margin accounts 12,639 — ( 8,558 ) 4,081 7,322 — ( 4,516 ) 2,806 Future contracts 1,260 — — 1,260 465 — — 465 Forward contracts 16,920 — — 16,920 4,025 — — 4,025 $ 34,416 $ ( 1,075 ) $ ( 8,558 ) $ 24,783 $ 13,222 $ ( 1,167 ) $ ( 4,516 ) $ 7,539 Gains or Losses on Derivative Instruments The Company records the derivative at the trade date with a corresponding unrealized gains or losses, shown as a component of cost of sales in the condensed consolidated statements of income. The Company adjusts the derivatives to fair value on a daily basis until the transactions are settled. When these contracts are net settled, the unrealized gains and losses are reversed and the realized gains and losses for forward contracts are recorded in revenue and cost of sales, and the net realized gains and losses for futures and option contracts are recorded in cost of sales. Below is a summary of the net gains (losses) on derivative instruments for the three and nine months ended March 31, 2022 and 2021. in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Gains (losses) on derivative instruments: Unrealized gains (losses) on open future commodity and forward contracts and open sale and purchase commitments, net $ 23,411 $ 42,390 $ ( 34,694 ) $ 28,115 Realized (losses) gains on future commodity contracts, net ( 16,457 ) ( 38,271 ) 26,355 ( 145,693 ) $ 6,954 $ 4,119 $ ( 8,339 ) $ ( 117,578 ) The Company’s net gains (losses) on derivative instruments, as shown in the table above, were substantially offset by the changes in the fair market value of the underlying precious metals inventory and open sale and purchase commitments, which were also recorded in cost of sales in the condensed consolidated statements of income. Summary of Hedging Positions In a hedging relationship, the change in the value of the derivative financial instrument is offset to a great extent by the change in the value of the underlying hedged item. The following table summarizes the results of our hedging activities, which shows the precious metal commodity inventory position, net of open sale and purchase commitments, that is subject to price risk as of March 31, 2022 and June 30, 2021. in thousands March 31, June 30, Inventories $ 764,263 $ 458,019 Precious metals held under financing arrangements 87,450 154,742 851,713 612,761 Less unhedgeable inventories: Commemorative coin inventory, held at lower of cost or net realizable value ( 1,108 ) ( 406 ) Premium on metals position ( 20,353 ) ( 11,017 ) Precious metal value not hedged ( 21,461 ) ( 11,423 ) 830,252 601,338 Commitments at market: Open inventory purchase commitments 950,825 987,926 Open inventory sales commitments ( 861,977 ) ( 590,156 ) Margin sale commitments ( 12,639 ) ( 7,322 ) In-transit inventory no longer subject to market risk ( 23,965 ) ( 16,707 ) Unhedgeable premiums on open commitment positions 9,073 8,638 Borrowed precious metals ( 67,824 ) ( 91,866 ) Product financing arrangements ( 199,447 ) ( 201,028 ) Advances on industrial metals 55 287 ( 205,899 ) 89,772 Precious metal subject to price risk 624,353 691,110 Precious metal subject to derivative financial instruments: Precious metals forward contracts at market values 299,310 175,352 Precious metals futures contracts at market values 323,211 514,240 Total market value of derivative financial instruments 622,521 689,592 Net precious metals subject to commodity price risk $ 1,832 $ 1,518 Notional Balances of Derivatives The notional balances of the Company's derivative instruments, consisting of contractual metal quantities, are expressed at current spot prices of the underlying precious metal commodity. As of March 31, 2022 and June 30, 2021, the Company had the following outstanding commitments and open forward and future contracts: in thousands March 31, June 30, Purchase commitments $ 950,825 $ 987,926 Sales commitments $ ( 861,977 ) $ ( 590,156 ) Margin sales commitments $ ( 12,639 ) $ ( 7,322 ) Open forward contracts $ 299,310 $ 175,352 Open futures contracts $ 323,211 $ 514,240 The contract amounts (i.e., notional balances) of the Company's forward and futures contracts and the open sales and purchase commitments are not reflected in the accompanying condensed consolidated balance sheet. The Company records the difference between the market price of the underlying metal or contract and the trade amount at fair value. The Company is exposed to the risk of failure of the counterparties to its derivative contracts. Significant judgment is applied by the Company when evaluating the fair value implications. The Company regularly reviews the creditworthiness of its major counterparties and monitors its exposure to concentrations. At March 31, 2022, the Company believes its risk of counterparty default is mitigated as a result of such evaluation and the short-term duration of these arrangements. Foreign Currency Exchange Rate Management The Company utilizes foreign currency forward contracts to manage the effect of foreign currency exchange fluctuations on its sale and purchase transactions. These contracts generally have maturities of less than one week. Unrealized losses on foreign exchange derivative instruments related to open trades are shown on the face of the condensed consolidated statements of income and totaled $ 0.14 million and $ 0.05 million for the three months ended March 31, 2022 and 2021, respectively, and $ 0.13 million and $ 0.13 million for the nine months ended March 31, 2022 and 2021 , respectively. The market values (fair values) of the Company’s foreign exchange forward contracts and the net open sale and purchase commitment transactions, denominated in foreign currencies, outstanding are as follows: in thousands March 31, June 30, Foreign exchange forward contracts $ 17,042 $ 6,541 Open sale and purchase commitment transactions, net $ 16,083 $ 4,311 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. INCO ME TAXES Net income from operations before provision for income taxes for the three and nine months ended March 31, 2022 and 2021 is shown below: in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, U.S. $ 45,919 $ 86,774 $ 119,380 $ 128,779 Foreign 2 6 26 18 $ 45,921 $ 86,780 $ 119,406 $ 128,797 The Company files a consolidated federal income tax return based on a June 30 tax year end. The provision for income tax expense by jurisdiction and the effective tax rate for the three and nine months ended March 31, 2022 and 2021 are shown below: in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Federal $ 7,579 $ 9,643 $ 21,066 $ 17,836 State and local 790 199 2,714 1,041 Foreign 6 5 17 67 Income tax expense $ 8,375 $ 9,847 $ 23,797 $ 18,944 Effective tax rate 18.2 % 11.3 % 19.9 % 14.7 % Ou r effective tax rate was approximately 18.2 % and 11.3 % for the three months ended March 31, 2022 and 2021, respectively. Our effective tax rate was approximately 19.9 % and 14.7 % for the nine months ended March 31, 2022 and 2021, respectively. For the three and nine months ended March 31, 2022, our effective tax rate differs from the federal statutory rate primarily due to the excess tax benefit from share based compensation, the foreign derived intangible income special deduction, offset by state taxes (net of federal tax benefit), and other normal course non-deductible expenditures. For the three and nine months ended March 31, 2021 , our effective tax rate differs from the federal statutory rate primarily due to the exclusion of the fair value remeasurement gain of our pre-existing equity investment in JMB, a one-time benefit from the reversal of the previously established deferred tax liability related to our equity investment in JMB, an exclusion of the fiscal 2021 pre-acquisition period JMB equity earnings, t he foreign derived intangible income special deduction, offset by state taxes (net of federal tax benefit), and other normal course non-deductible expenditures. Tax Balances and Activity Income Taxes Receivable and Payable As of March 31, 2022 and June 30, 2021, income tax payable totaled $ 0.3 million and $ 5.0 million , respectively. Deferred Tax Assets and Liabilities In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized by evaluating both positive and negative evidence. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. As of March 31, 2022 and June 30, 2021, management concluded that it was more likely than not that the Company would be able to realize the benefit of the U.S. federal and state deferred tax assets. We based this conclusion on historical and projected operating performance, as well as our expectation that our operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets. A tax valuation allowance was considered unnecessary, as management concluded that it was more likely than not that the Company would be able to realize the benefit of the U.S. federal and state deferred tax assets. As of March 31, 2022, the condensed consolidated balance sheet reflects the deferred tax items for each tax-paying component (i.e., federal and state), resulting in a state deferred tax liability of $ 1.2 million and a federal deferred tax liability of $ 13.8 million . As of June 30, 2021, the condensed consolidated balance sheet reflects the deferred tax items for each tax-paying component (i.e., federal and state), resulting in a state deferred tax liability of $ 1.7 million primarily comprised of net operating loss carryforwards and a federal deferred tax liability of $ 17.8 million . The change in the balance of the deferred tax liability is primarily due to amortization of the carrying balance of our acquired intangible assets from JMB. Net Operating Loss Carryforwards As of March 31, 2022 and June 30, 2021, the Company has approximately $ 12.2 million and $ 12.2 million of state net operating loss carryforwards, respectively. The Company's combined state tax-effected net operating loss carryforwards totaled $ 0.9 million and $ 0.9 million , as of March 31, 2022 and June 30, 2021, respectively. T hese state net operating loss carryforwards start to expire in the year ending June 30, 2030. Unrecognized Tax Benefits The Company has taken or expects to take certain tax benefits on its income tax return filings that it has not recognized as a tax benefit (i.e., an unrecognized tax benefit) on its condensed consolidated statements of income. The Company's measurement of its uncertain tax positions is based on management's assessment of all relevant information, including, but not limited to prior audit experience, audit settlement, or lapse of the applicable statute of limitations. For the nine months ended March 31, 2022, there was no material movement in unrecognized tax benefits including interest and penalties. Tax Examinations During the quarter, the Internal Revenue Service completed the examination of JMB’s 2018 income tax year and made no changes to the reported tax. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. RELATED PAR TY TRANSACTIONS Related parties are entities that the Company controls or has the ability to significantly influence. Related parties also include persons who are affiliated with related entities or the Company who are in a position to influence corporate decisions (such as owners, executives, board members and their families). In the normal course of business, we enter into transactions with our related parties. Below is a list of related parties with whom we have had significant transactions during the presented periods: 1) Stack’s Bowers Numismatics, LLC ("Stack's Bowers Galleries") . Stack's Bowers Galleries is a wholly-owned subsidiary of Spectrum Group International, Inc. ("SGI"). In March 2014, SGI distributed all of the shares of common stock of A-Mark to its stockholders, effecting a spinoff of A-Mark from SGI. As a result of this distribution the Company became a publicly traded company independent from SGI. SGI and the Company have a common chief executive officer, and the chief executive officer and the general counsel of the Company are board members of SGI. 2) Silver Towne, L.P. Through March 31, 2021, Silver Towne L.P. was a noncontrolling owner of AMST, and all subsequent transactions with it are considered to be activity with an unrelated third-party. 3) Equity method investees. As of March 31, 2022, the Company has 4 investments in privately-held entities, each of which has been determined to be an equity method investee and a related party. Our related party transactions include (i) sales and purchases of precious metals (ii) financing activities (iii) repurchase arrangements, and (iv) hedging transactions. Below is a summary of our related party transactions. The amounts presented for each period were based on each entity’s related party status for that period. Balances with Related Parties Receivables and Payables, Net As of March 31, 2022 and June 30, 2021, the Company had related party receivables and payables balances as set forth below: in thousands March 31, 2022 June 30, 2021 Receivables Payables Receivables Payables Stack's Bowers Galleries $ — $ 6,085 (1) $ 3,576 (1) $ — Equity method investees 2,372 (2) 1,530 10,693 (2) 84 $ 2,372 $ 7,615 $ 14,269 $ 84 (1) Balance includes secured loan receivables and trade and other payables, net. (2) Balance primarily represents receivables, net (shown as components of receivables and derivative assets). Long-term Investments As of March 31, 2022 and June 30, 2021, the aggregate carrying balance of the equity method investments was $ 32.3 million and $ 18.2 million respectively. (See Note 10 . ) Secured Loans Receivable On March 1, 2018, CFC entered into a loan agreement with Stack's Bowers Galleries providing a secured line of credit on the wholesale value (i.e., the excess over the spot value of the metal), of numismatic products bearing interest at a competitive rate per annum, with a maximum borrowing line (subject to temporary increases) of $ 10.0 million . In addition to the annual rate of interest, the Company is entitled to receive a participation interest equal to 10 % of the net profits realized by Stack's Bowers Galleries on the ultimate sale of the products. The initial term of the loan was 180 days and has been extended for additional 180 day periods by mutual agreement. As of March 31, 2022 and June 30, 2021, the outstanding principal balance of this loan was $ 5.0 million and $ 3.0 million , respectively. On March 4, 2022, CFC entered into a loan agreement with Stack's Bowers Galleries providing a secured line of credit based on the collateral value of Stack's Bowers Galleries' secured customers' notes. The loan bears interest at a competitive rate per annum, with a maximum borrowing line of $ 3.0 million. The initial term of the loan is 180 days may be extended for additional 180 periods by mutual agreement. As of March 31, 2022, the outstanding principal balance of this loan was $ 2.0 million. Activity with Related Parties Sales and Purchases During the three and nine months ended March 31, 2022 and 2021, the Company made sales and purchases to various companies, which have been deemed to be related parties, as follows: in thousands Three Months Ended Nine Months Ended March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Sales Purchases Sales Purchases Sales Purchases Sales Purchases Stack's Bowers Galleries $ 55,519 $ 12,569 $ 17,127 $ 11,731 $ 69,170 $ 41,879 $ 53,958 $ 48,066 Equity method investees 244,147 8,170 591,740 (1) 4,829 (1) 531,130 30,438 1,463,857 (1) 12,701 (1) SilverTowne L.P. — — 5,858 — — — 12,695 4,769 $ 299,666 $ 20,739 $ 614,725 $ 16,560 $ 600,300 $ 72,317 $ 1,530,510 $ 65,536 (1) Includes sales and purchases activity with JMB, which the Company fully acquired in March 2021. Interest Income During the three and nine months ended March 31, 2022 and 2021, the Company earned interest income related to loans made to Stack's Bowers and from financing arrangements (including repurchase agreements) with affiliated companies, as set forth below: in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Interest income from secured loans receivables $ 44 $ 44 $ 143 $ 197 Interest income from finance products and repurchase arrangements 1,576 2,173 5,537 5,980 $ 1,620 $ 2,217 $ 5,680 $ 6,177 Equity method investments — Earnings During the three months ended March 31, 2022 and 2021, the Company's proportional share of our equity method investee's net income totaled $ 1.6 million and $ 7.4 million , respectively. During the nine months ended March 31, 2022 and 2021, the Company's proportional share of our equity method investee's net income totaled $ 4.3 million and $ 13.9 million , respectively. As a result of our acquisition of JMB in March 2021, the Company no longer accounts for the subsidiary’s earnings under the equity method. For the nine months ended March 31, 2022, the Company accounted for JMB’s earnings as a wholly owned subsidiary in the Company’s consolidated results. Other Income During the three months ended March 31, 2022 and 2021, the Company earned royalty income related to one of CFC's secured lending agreements with Stack's Bowers that totaled $ 0.5 million and $ 0.3 million , respectively. During the nine months ended March 31, 2022 and 2021, the Company earned royalty income related to one of CFC's secured lending agreements with Stack's Bowers that totaled $ 1.4 million and $ 0.9 million , respectively. |
Financing Agreements
Financing Agreements | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing Agreements | 15. FINANCIN G AGREEMENTS Lines of Credit On December 21, 2021, the Company entered into a new three-year committed facility provided by a syndicate of financial institutions (the “Trading Credit Facility”), with a total current revolving commitment of up to $ 350.0 million and with a termination date of December 21, 2024 . The Trading Credit Facility is secured by substantially all of the Company’s assets on a first priority basis and subsidiary guarantees, except for AMCF. The Trading Credit Facility currently bears interest at the daily SOFR rate plus an applicable margin of 236 basis points. As of March 31, 2022, the interest rate was approximately 2.7 % . The daily SOFR rate was approximately 0.29 % as of March 31, 2022 Also on December 21, 2021, in connection with entry into the Trading Credit Facility, all amounts outstanding under the Company’s uncommitted demand borrowing facility with a syndicate of banks (the "Prior Credit Facility”) were paid in full, and the Prior Trading Credit Facility was terminated. The amounts set forth in this Note 15 and in Note 14 to our condensed consolidated financial statements for all periods prior to December 21, 2021 refer to the Prior Credit Facility. The Trading Credit Facility provides the Company with the liquidity to buy and sell billions of dollars of precious metals annually. A-Mark routinely uses funds drawn under the Trading Credit Facility to purchase metals from its suppliers and for operating cash flow purposes. Our CFC subsidiary also uses the funds drawn under the Trading Credit Facility to finance certain of its lending activities. Borrowings totaled $ 255.0 million and $ 185.0 million at March 31, 2022 and June 30, 2021, respectively. The amounts available under the respective lines of credit are determined at the end of each week and at each month end following a specified borrowing base formula. The Company is able to access additional credit as needed to finance operations, subject to the overall limits of the borrowing facilities and lender approval of the borrowing base calculation. Based on the month end borrowing bases in effect, the availability under the Trading Credit Facility, after taking into account current borrowings, totaled $ 95.0 million and $ 65.4 million as determined on March 31, 2022 and June 30, 2021, respectively. As of March 31, 2022 and June 30, 2021, the remaining unamortized balance of loan costs was approximat ely $ 3.6 million and $ 0.9 million , respectiv ely. The Trading Credit Facility contains various covenants, all of which the Company was in compliance with as of March 31, 2022. Although the Trading Credit Facility is a committed facility, lenders holding at least 66.67 % of the revolving commitments under the Trading Credit Facility may require us to repay all outstanding indebtedness under the Trading Credit Facility at any time, even if we are in complian ce with the financial and other covenants under the Trading Credit Facility. After such demand, each lender with a revolving loan commitment may, but is not obligated to, make revolving loans until the termination date of the Trading Credit Facility. Interest expense related to the Company’s lines of credit totaled $ 1.9 million and $ 2.0 million , which represents 34.7 % and 38.2 % of the total interest expense recognized, for the three months ended March 31, 2022 and 2021, respectively. Our lines of credit carried a daily weighted average effective interest rate of 3.18 % and 3.82 % , respectively, for the three months ended March 31, 2022 and 2021. Interest expense related to the Company’s lines of credit totaled $ 6.2 million and $ 5.6 million , which represents 37.9 % and 38.2 % of the total interest expense recognized, for the nine months ended March 31, 2022 and 2021, respectively. Our lines of credit carried a daily weighted average effective interest rate of 3.42 % and 3.66 % , respectively, for the nine months ended March 31, 2022 and 2021. Notes Payable In September 2018, AM Capital Funding, LLC (“AMCF”), a wholly owned subsidiary of CFC, completed an issuance of Secured Senior Term Notes (collectively, the "Notes"): Series 2018-1, Class A (the “Class A Notes”) in the aggregate principal amount of $ 72.0 million and Secured Subordinated Term Notes, Series 2018-1, Class B (the “Class B Notes” and together with the Class A Notes, the “Notes”) in the aggregate principal amount of $ 28.0 million . The Class A Notes bear interest at a rate of 4.98 % and the Class B Notes bear interest at a rate of 5.98 % . The Notes have a maturity date of December 15, 2023 . The Notes were issued under a Master Indenture and the Series 2018-1 Supplement thereto between AMCF and Citibank, N.A., as trustee. The Company holds $ 5.0 million of the Class B Notes in order to comply with the Credit Risk Retention Rules of Section 15G of the Securities Exchange Act of 1934. The $ 5.0 million portion of the Class B Notes retained by the Company is eliminated in consolidation. AMCF applied the net proceeds from the sale to the Company’s purchase loans and precious metals inventory, and to pay certain costs and expenses. CFC and A-Mark may from time to time also contribute cash or sell precious metals to AMCF in exchange for cash or subordinated, deferred payment obligations from AMCF. In addition, AMCF may from time to time sell precious metals to A-Mark for cash. As of March 31, 2022, the consolidated carrying balance of the Notes was $ 93.9 million (which excludes the $ 5.0 million note that the Company retained), and the remaining unamortized loan cost balance was approximately $ 1.1 million . As of March 31, 2022, the balance of the interest payable was $ 0.2 million . Interest on the Notes is payable monthly in arrears at the aggregate rate of 5.26 % per annum. For the three months ended March 31, 2022 and 2021, the interest expense related to the Notes (including loan amortization costs) totaled $ 1.5 million and $ 1.4 million , which represents 26.7 % and 26.7 % of the total interest expense recognized by the Company, respectively. For the three months ended March 31, 2022 and 2021, the Notes' weighted average effective interest rate was 5.88 % and 5.88 % , respectively. For the nine months ended March 31, 2022 and 2021, the interest expense related to the Notes (including loan amortization costs) totaled $ 4.3 million and $ 4.3 million , which represents 26.6 % and 29.1 % of the total interest expense recognized by the Company, respectively. For the nine months ended March 31, 2022 and 2021, the Notes' weighted average effective interest rate was 5.88 % and 5.88 % , respectively. Liabilities on Borrowed Metals The Company recorded liabilities on borrowed precious metals with market values totaling $ 67.8 million as of March 31, 2022, with corresponding metals totaling $ 45.7 million and $ 22.1 million included in precious metals held under financing arrangements and inventories, respectively, on the condensed consolidated March 31, 2022 balance sheet. The Company recorded liabilities on borrowed metals with market values totaling $ 91.9 million as of June 30, 2021 with corresponding metals totaling $ 71.0 million and $ 20.9 million included in precious metals held under financing arrangements and inventories, respectively, on the condensed consolidated June 30, 2021 balance sheet. For the three months ended March 31, 2022 and 2021, the interest expense related to liabilities on borrowed metals totaled $ 0.4 million and $ 0.3 million , which represen ts 6.4 % and 6.2 % of the total interest expense recognized by the Company, respectively. For the nine months ended March 31, 2022 and 2021, the interest expense related to liabilities on borrowed metals totaled $ 0.9 million and $ 1.2 million , which represents 5.8 % and 8.5 % of the t otal interest expense recognized by the Company, respectively. Advanced pool metals The Company borrows precious metals from its suppliers and customers under short-term agreements using other precious metals from its inventory as collateral. The Company has the ability to sell the metals advanced. These arrangements can be settled by repayment in similar metals or in cash. Once the obligation is settled, the metals held as collateral are released back to the Company. Liabilities on borrowed metals — Other Liabilities may also arise from: (i) unallocated metal positions held by customers in the Company’s inventory, (ii) amounts due to suppliers for the use of their consigned inventory, and (iii) shortages in unallocated metal positions held by the Company in the supplier’s inventory. Unallocated or pool metal represent an unsegregated inventory position that is due on demand, in a specified physical form, based on the total ounces of metal held in the position. Amounts due under these arrangements require delivery either in the form of precious metals, or in cash. Product Financing Arrangements The Company has agreements with third party financial institutions which allow the Company to transfer its gold and silver inventory at an agreed-upon price, which is based on the spot price. Such agreements allow the Company to repurchase this inventory at an agreed-upon price based on the spot price on the repurchase date. The third party charges a monthly fee as a percentage of the market value of the outstanding obligation; such monthly charges are classified in interest expense. These transactions do not qualify as sales, and therefore have been accounted for as financing arrangements and are reflected in the condensed consolidated balance sheet as product financing arrangements. The obligation is stated at the amount required to repurchase the outstanding inventory. Both the product financing obligation and the underlying inventory (which is entirely restricted) are carried at fair value, with changes in fair value recorded as a component of cost of sales in the condensed consolidated statements of income. Such obligations totaled $ 199.4 million and $ 201.0 million as of March 31, 2022 and June 30, 2021, respectively. For the three months ended March 31, 2022 and 2021, the interest expense related to product financing arrangements totaled $ 1.1 million and $ 1.1 million , which repr esents 20.8 % and 20.7 % of the total interest expense recognized by the Company, respectively. For the nine months ended March 31, 2022 and 2021, the interest expense related to product financing arrangements totaled $ 3.1 million and $ 2.5 million , which represents 19.3 % and 16.7 % of the total interest expense recognized by the Company, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. COMMITMENTS A ND CONTINGENCIES Refer to Note 7 for information relating to minimum rental payments under operating and finance leases. Refer to Note 15 of the Notes to Consolidated Financial Statements in the 2021 Annual Report for information relating to consulting and employment contracts, and other commitments. The Company is not aware of any material changes to commitments as summarized in the 2021 Annual Report. Legal Matters The Company is from time to time party to various lawsuits, claims and other proceedings, that arise in the ordinary course of its business. Additionally, we record receivables for insurance recoveries relating to litigation-related losses and expenses if and when such amounts are covered by insurance and recovery of such losses or expenses are due. In accordance with U.S. GAAP, we review the need to accrue for any loss contingency and establish a liability when, in the opinion of management, it is probable that a matter would result in a liability and the amount of loss, if any, can be reasonably estimated. We do not believe that the resolution of any currently pending lawsuits, claims and proceedings, either individually or in the aggregate, will have a material adverse effect on financial position, results of operations or liquidity. However, the outcomes of any currently pending lawsuits, claims and proceedings cannot be predicted, and therefore, there can be no assurance that this will be the case. COVID-19 The Company remains exposed to the effects of the COVID-19 pandemic. The pandemic has caused significant disruption in the financial markets both globally and in the United States. The resulting macroeconomic events have contributed to an increase in the business conducted by the Company, but also pose certain risks and uncertainties for the Company. The Company does not know how long the COVID-19 pandemic will continue, the extent to which the effects that the Company has experienced from the pandemic thus far will persist, or whether other effects on the Company and its businesses will materialize in the short or long term. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | 17. STOCKHOL DERS’ EQUITY Shelf Registration Statement On September 25, 2020, the Company filed a universal shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (the “SEC”) on March 4, 2021, on which the Company registered for sale up to $ 150.0 million of any combination of its debt securities, shares of common stock, shares of preferred stock, rights, warrants, units and/or purchase contracts from time to time and at prices and on terms that the Company may determine. After a public offering in March 2021, approximately $ 69.5 million of securities remain available for issuance under this shelf registration statement. Securities may be offered or sold under this registration statement until March 2024. Issuance of Common Stock in Connection with Increase in Long Term Investments On August 27, 2021, the Company issued 61,590 shares of its common stock as partial consideration for its acquisition of an additional ownership interest in an equity method investment. (See Note 10 ). Share Repurchase Program In April 2018, the Company's Board of Directors approved a share repurchase program which authorizes the Company to purchase up to 500,000 shares of its common stock from time to time, either in the open market or in block purchase transactions. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements, and other factors. As of March 31, 2022 , no shares ha d been repurchased under the program. Dividends On August 30, 2021 , the Company's Board of Directors declared a non-recurring special dividend of $ 2.00 per common share to stockholders of record at the close of business on September 20, 2021 . The dividend was paid on September 24, 2021 and totaled $ 22.6 million. 2014 Stock Award and Incentive Plan The Company's amended and restated 2014 Stock Award and Incentive Plan (the "2014 Plan") was approved by the Company's stockholders on November 2, 2017. As of March 31, 2022 , 935,520 stock options and 19,370 restricted stock units were outstanding and 314,877 shares were available for issuance of new awards under the 2014 Plan. Under the 2014 Plan, the Company may grant options and other equity awards as a means of attracting and retaining officers, employees, non-employee directors and consultants, to provide incentives to such persons, and to align the interests of such persons with the interests of stockholders by providing compensation based on the value of the Company's stock. Awards under the 2014 Plan may be granted in the form of incentive or non-qualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), dividend equivalent rights, other stock-based awards (which may include outright grants of shares) and cash incentive awards. The 2014 Plan also authorizes grants of awards with performance-based conditions and market-based conditions. The 2014 Plan is administered by the Compensation Committee of the Board of Directors, which, in its discretion, may select officers and other employees, directors (including non-employee directors) and consultants to the Company and its subsidiaries to receive grants of awards. The Board of Directors itself may perform any of the functions of the Compensation Committee under the 2014 Plan. Under the 2014 Plan, the exercise price of options and base price of SARs, as set by the Compensation Committee, generally may not be less than the fair market value of the shares on the date of grant, and the maximum term of stock options and SARs is 10 years . The 2014 Plan limits the number of share-denominated awards that may be granted to any one eligible person in any fiscal year to 250,000 shares plus the participant's unused annual limit at the close of the previous year. Also, in the case of non-employee directors, the 2014 Plan limits the maximum grant-date fair value at $ 300,000 of stock-denominated awards granted to a director in a given fiscal year, except for a non-employee Chairman of the Board whose grant-date fair value maximum is $ 600,000 per fiscal year. The 2014 Plan will terminate when no shares remain available for issuance and no awards remain outstanding; however, the authority to grant new awards will terminate on November 2, 2027 . As of March 31, 2022 there were no awards with performance conditions nor awards with market conditions. Options Granted Under Other Plans Upon the spinoff of A-Mark from SGI in March 2014, A-Mark assumed certain outstanding SGI stock options and converted them to become option to purchase A-Mark common stock. At March 31, 2022, 31,548 of the assumed awards and converted stock options remained outstanding and exercisable, with no shares available under the former SGI plans for future awards. Stock Options During the three months ended March 31, 2022 and 2021, the Company incurred $ 0.3 million and $ 0.3 million of compensation expense related to stock options, respectively. During the nine months ended March 31, 2022 and 2021, the Company incurred $ 1.0 million and $ 0.7 million of compensation expense related to stock options, respectively. As of March 31, 2022, there was total remaining compensation expense of $ 2.2 million related to employee stock options, which will be recorded over a weighted average vesting period of approximately 1.6 years. A required adjustment to outstanding stock options was triggered as a result of the non-recurring special dividend declared on August 30, 2021. In accordance with the terms of the Company’s equity award plans under which the options were issued, an adjustment was required to protect the holders of such stock options from decreases in the value of the stock options due to payment of the non-recurring special dividends. This event decreased the exercise price of outstanding stock options by $ 2.00 per dividend, effective as of the record date (September 20, 2021). The fair value of the options before and after this event was unchanged, and therefore no incremental stock-based compensation was recorded. The following table summarizes the stock option activity for the nine months ended March 31, 2022. Options Weighted Aggregate Weighted Outstanding at June 30, 2021 1,159,028 $ 16.01 $ 35,343 $ 6.88 Exercises ( 223,508 ) $ 9.05 Outstanding at March 31, 2022 935,520 $ 15.25 $ 58,084 $ 6.99 Exercisable at March 31, 2022 527,198 $ 13.20 $ 33,814 $ 5.61 Following is a summary of the status of stock options outstanding as of March 31, 2022. Exercise Price Ranges Options Outstanding Options Exercisable From To Number of Weighted Weighted Number of Weighted Weighted $ — $ 10.00 438,597 6.87 $ 5.70 214,276 5.99 $ 6.31 $ 10.01 $ 15.00 110,923 4.76 $ 13.69 102,589 4.55 $ 13.96 $ 15.01 $ 25.00 231,667 4.42 $ 19.68 205,000 3.90 $ 19.55 $ 25.01 $ 60.00 154,333 8.94 $ 36.88 5,333 8.73 $ 31.55 935,520 6.35 $ 15.25 527,198 4.92 $ 13.20 The following table summarizes the nonvested stock option activity for the nine months ended March 31, 2022. Options Weighted Nonvested Outstanding at June 30, 2021 466,377 $ 8.52 Vested ( 58,055 ) $ 6.79 Nonvested Outstanding at March 31, 2022 408,322 $ 8.77 Restricted Stock Units RSUs granted by the Company are not transferable and automatically convert to shares of common stock on a one-for-one basis as the awards vest or at a specified date after vesting. During the three months ended March 31, 2022 and 2021, the Company incurred $ 0.2 million and $ 0 of compensation expense related to RSUs, respectively. During the nine months ended March 31, 2022 and 2021, the Company incurred $ 0.6 million and $ 0 of compensation expense related to RSUs, respectively. As of March 31, 2022, there is $ 0.2 million remaining compensation expense related to RSUs, which will be recorded over a weighted average vesting period of approximately 0.6 years. RSUs granted to a non-US citizen are referred to as "deferred stock units". The following table summarizes the RSU activity for the nine months ended March 31, 2022: Awards Weighted Outstanding at June 30, 2021 12,721 $ 37.72 Shares granted 6,649 (1) $ 72.15 Outstanding at March 31, 2022 19,370 $ 49.54 Vested but subject to deferred settlement at March 31, 2022 — $ — (1) A required adjustment to certain outstanding RSUs was triggered as a result of the non-recurring special dividend declared on August 30, 2021. In accordance with the terms of the Company’s RSU agreements under which the RSUs were issued, the holders of the RSUs were entitled to credits equivalent to dividends that would have been paid had the RSUs had been outstanding shares as of the applicable record date. In the case of RSUs with terms not permitting crediting of dividend equivalents in cash, this event resulted in crediting of additional RSUs, increasing the number of RSUs by 55.848 RSUs as of the record date (September 20, 2021). Certain Anti-Takeover Provisions The Company’s certificate of incorporation and by-laws contain certain anti-takeover provisions that could have the effect of making it more difficult for a third party to acquire, or of discouraging a third party from attempting to acquire, control of the Company without negotiating with its Board. Such provisions could limit the price that certain investors might be willing to pay in the future for the Company’s securities. Certain of such provisions allow the Company to issue preferred stock with rights senior to those of the common stock or impose various procedural and other requirements which could make it more difficult for stockholders to effect certain corporate actions. |
Customer and Supplier Concentra
Customer and Supplier Concentrations | 9 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Customer and Supplier Concentrations | 18. CUSTOMER AND SUPP LIER CONCENTRATIONS Customer Concentration No single customer provided 10 percent or more of the Company's revenues for three and nine months ended March 31, 2022. Customers providing 10 percent or more of the Company's accounts receivable as of March 31, 2022 are presented on a comparative basis (to June 30, 2021) in the table below. in thousands March 31, 2022 June 30, 2021 Amount Percent Amount Percent Total accounts receivable $ 65,636 100.0 % $ 89,000 100.0 % Customer concentrations Morgan Stanley $ 9,190 14.0 % $ — 0.0 % No single customer provided 10 percent or more of the Company's secured loan receivable balances as of March 31, 2022. Supplier Concentration The Company buys precious metals from a variety of sources, including through brokers and dealers, from sovereign and private mints, from refiners and directly from customers. The Company believes that no one supplier or small group of suppliers is critical to its business, since other sources of supply are available that provide similar products on comparable terms. |
Segments and Geographic Informa
Segments and Geographic Information | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | 19. SEGMENTS AND GE OGRAPHIC INFORMATION The Company evaluates segment reporting in accordance with Segment Reporting Topic 280 of the ASC, each reporting period, including evaluating the organizational structure and the reporting package that is reviewed by the chief operating decision makers. The Company's operations are organized under three business segments (i) Wholesale Sales & Ancillary Services, (ii) Direct-to-Consumer, and (iii) Secured Lending. The Wholesale Sales & Ancillary Services segment includes the consolidating eliminations of inter-segment transactions and unallocated segment adjustments. (See Note 1 for a description of the types of products and services from which each reportable segment derives its revenues.) Revenue in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Revenue by segment (1) Wholesale Sales & Ancillary Services $ 1,966,897 $ 2,017,120 $ 5,732,207 $ 5,347,951 Eliminations of inter-segment sales ( 447,857 ) ( 93,857 ) ( 1,306,411 ) ( 133,491 ) Wholesale Sales & Ancillary Services, net of eliminations (2) 1,519,040 1,923,263 4,425,796 5,214,460 Direct-to-Consumer 590,075 (a) 126,226 (b) 1,643,654 (c) 219,889 (d) $ 2,109,115 $ 2,049,489 $ 6,069,450 $ 5,434,349 (1) The Secured Lending segment earns interest income from its lending activity and earns no revenue from the sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table. (2) The eliminations of inter-segment sales are reflected in the Wholesale Sales & Ancillary Services segment. (a) Includes $ 0.4 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment. (b) Includes $ 0.9 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment. (c) Includes $ 2.0 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment. (d) Includes $ 7.8 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment. in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Revenue by geographic region (1) United States $ 1,256,092 $ 1,320,129 $ 3,631,974 $ 3,407,484 Europe 495,293 285,843 1,542,293 1,067,325 North America, excluding United States 342,392 394,562 850,681 867,437 Asia Pacific 9,592 17,514 34,586 43,649 Africa — — 17 — Australia 5,746 31,441 9,899 48,454 $ 2,109,115 $ 2,049,489 $ 6,069,450 $ 5,434,349 (1) Presentation of amounts realigned based on current accounting policy that defines geographic area based on the delivery or settlement location. The presentation change had no impact on the segments' operations or the Company's condensed consolidated results. Gross Profit and Gross Margin Percentage in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Gross profit by segment (1) Wholesale Sales & Ancillary Services $ 32,002 $ 51,529 $ 85,474 $ 95,327 Eliminations and adjustments ( 1,463 ) 34 ( 445 ) 103 Wholesale Sales & Ancillary Services, net of eliminations and adjustments 30,539 51,563 85,029 95,430 Direct-to-Consumer, net of eliminations 41,544 16,608 108,986 27,637 $ 72,083 $ 68,171 $ 194,015 $ 123,067 Gross margin percentage by segment Wholesale Sales & Ancillary Services 1.627 % 2.555 % 1.491 % 1.782 % Wholesale Sales & Ancillary Services, net of eliminations and adjustments 2.010 % 2.681 % 1.921 % 1.830 % Direct-to-Consumer 7.040 % 13.157 % 6.631 % 12.569 % Weighted average gross margin percentage 3.418 % 3.326 % 3.197 % 2.265 % (1) The Secured Lending segment earns interest income from its lending activity and earns no gross profit from the sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table. Operating income and (expenses) in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Operating income (expense) by segment Wholesale Sales & Ancillary Services $ ( 9,963 ) $ 22,916 $ ( 24,485 ) $ 14,176 Eliminations ( 60 ) ( 45 ) ( 191 ) ( 114 ) Wholesale Sales & Ancillary Services, net of eliminations $ ( 10,023 ) $ 22,871 $ ( 24,676 ) $ 14,062 Wholesale Sales & Ancillary Services, net of eliminations Selling, general and administrative expenses $ ( 11,203 ) $ ( 9,859 ) $ ( 28,748 ) $ ( 23,727 ) Depreciation and amortization expense ( 214 ) ( 213 ) ( 673 ) ( 637 ) Interest income 2,300 2,554 7,952 7,490 Interest expense ( 2,379 ) ( 3,274 ) ( 7,396 ) ( 9,137 ) Earnings from equity method investments 1,608 7,410 4,317 13,898 Remeasurement gain on pre-existing equity interest — 26,306 — 26,306 Unrealized losses on foreign exchange ( 135 ) ( 53 ) ( 128 ) ( 131 ) $ ( 10,023 ) $ 22,871 $ ( 24,676 ) $ 14,062 Direct-to-Consumer Selling, general and administrative expenses $ ( 8,913 ) $ ( 2,644 ) $ ( 25,906 ) $ ( 5,982 ) Depreciation and amortization expense ( 7,245 ) ( 1,187 ) ( 23,140 ) ( 1,593 ) Interest expense ( 703 ) ( 45 ) ( 2,062 ) ( 45 ) Other expense, net ( 50 ) — ( 50 ) — $ ( 16,911 ) $ ( 3,876 ) $ ( 51,158 ) $ ( 7,620 ) Secured Lending Selling, general and administrative expenses $ ( 379 ) $ ( 792 ) $ ( 1,230 ) $ ( 1,619 ) Depreciation and amortization expense ( 88 ) ( 88 ) ( 264 ) ( 264 ) Interest income 3,043 2,170 8,173 5,750 Interest expense ( 2,347 ) ( 2,016 ) ( 6,839 ) ( 5,483 ) Other income, net 543 340 1,385 904 $ 772 $ ( 386 ) $ 1,225 $ ( 712 ) Net income before provision for income taxes in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Net income before provision for income taxes by segment Wholesale Sales & Ancillary Services $ 20,516 $ 74,434 $ 60,353 $ 109,492 Direct-to-Consumer 24,633 12,732 57,828 20,017 Secured Lending 772 ( 386 ) 1,225 ( 712 ) $ 45,921 $ 86,780 $ 119,406 $ 128,797 Advertising expense in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Advertising expense by segment Wholesale Sales & Ancillary Services $ ( 190 ) $ ( 74 ) $ ( 433 ) $ ( 217 ) Direct-to-Consumer ( 3,077 ) ( 821 ) ( 8,493 ) ( 1,932 ) Secured Lending ( 52 ) ( 63 ) ( 154 ) ( 131 ) $ ( 3,319 ) $ ( 958 ) $ ( 9,080 ) $ ( 2,280 ) Precious metals held under financing arrangements in thousands March 31, June 30, Precious metals held under financing arrangements by segment Wholesale Sales & Ancillary Services $ 87,450 $ 130,766 Secured Lending — 23,976 $ 87,450 $ 154,742 Inventories in thousands March 31, June 30, Inventories by segment Wholesale Sales & Ancillary Services $ 623,188 $ 402,418 Direct-to-Consumer 141,075 53,069 Secured Lending — 2,532 $ 764,263 $ 458,019 in thousands March 31, June 30, Inventories by geographic region United States $ 706,249 $ 431,732 North America, excluding United States 35,329 16,633 Europe 22,098 9,451 Asia 405 203 Australia 182 — $ 764,263 $ 458,019 Total Assets in thousands March 31, June 30, Assets by segment Wholesale Sales & Ancillary Services $ 968,591 $ 874,152 Eliminations ( 143,462 ) ( 163,850 ) Wholesale Sales & Ancillary Services, net of eliminations 825,129 710,302 Direct-to-Consumer 368,768 335,829 Secured Lending 152,686 145,450 $ 1,346,583 $ 1,191,581 in thousands March 31, June 30, Assets by geographic region United States $ 1,285,377 $ 1,162,195 North America, excluding United States 35,329 16,633 Europe 25,290 12,550 Asia 405 203 Australia 182 — $ 1,346,583 $ 1,191,581 Long-term Assets in thousands March 31, June 30, Long-term assets by segment Wholesale Sales & Ancillary Services $ 49,946 $ 36,174 Direct-to-Consumer 168,031 188,208 Secured Lending 2,710 2,972 $ 220,687 $ 227,354 in thousands March 31, June 30, Long-term assets by geographic region United States $ 220,685 $ 227,352 Europe 2 2 $ 220,687 $ 227,354 Capital Expenditures for Property, Plant, and Equipment in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Capital expenditures on property, plant, and equipment by segment Wholesale Sales & Ancillary Services $ 183 $ 411 $ 812 $ 1,335 Direct-to-Consumer 296 3 1,294 12 Secured Lending — — — 4 $ 479 $ 414 $ 2,106 $ 1,351 Goodwill and Intangible Assets in thousands March 31, June 30, Goodwill by segment Wholesale Sales & Ancillary Services $ 8,881 $ 8,881 Direct-to-Consumer (1) 92,062 92,062 $ 100,943 $ 100,943 (1) Direct-to-Consumer segment’s goodwill balance is net of $ 1.4 million accumulated impairment losses. Intangible assets in thousands March 31, June 30, Intangibles by segment Wholesale Sales & Ancillary Services $ 2,774 $ 2,831 Direct-to-Consumer (1) 67,942 90,802 $ 70,716 $ 93,633 (1) Direct-to-Consumer segment’s intangibles balance is net of $ 1.3 million accumulated impairment losses. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. SUBSEQU ENT EVENTS Stock Split in the Form of a Dividend On April 28, 2022, the Company’s Board of Directors declared a two-for-one split of A-Mark’s common stock in the form of a stock dividend. Each stockholder of record at the close of business on May 23, 2022 will receive a dividend of one additional share of common stock for every share held on the record date, to be distributed after the close of trading on June 6, 2022. Increased Investment In Silver Gold Bull, Inc. On April 28, 2022, the Company entered into an agreement to increase its ownership interest in Silver Gold Bull, Inc. ("Silver Gold Bull") from 7.4 % to 47.4 % for a purchase price of approximately $ 44.0 million, consisting of $ 34.0 million in cash and 126,964 shares of the Company’s common stock (without giving effect to the stock dividend referred to in the preceding paragraph.) A-Mark had acquired its initial interest in Silver Gold Bull in 2014, increasing its investment to 7.4 % in 2018. Founded in 2009, Silver Gold Bull is a leading e-commerce precious metals retailer in Canada. Under the terms of the agreement, A-Mark will also extend its existing exclusive supplier agreement with Silver Gold Bull for an additional four years , to December 2026. The Company will also have the option, exercisable between months 18 and 27 following the closing, to purchase an additional 27.7 % of the outstanding equity of Silver Gold Bull to bring its ownership interest to 75 %. The acquisition is expected to close in the fourth quarter of fiscal 2022, subject to customary closing conditions and regulatory approval. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements reflect the financial condition, results of operations, statements of stockholders’ equity, and cash flows of the Company, and were prepared using accounting principles generally accepted in the United States (“U.S. GAAP”). The Company consolidates its subsidiaries that are wholly-owned, and majority owned, and entities that are variable interest entities where the Company is determined to be the primary beneficiary. The Company’s condensed consolidated financial statements include the accounts of: A-Mark, AMTAG, TDS, AMGL, AMST, JMB, Goldline, and CFC (collectively the “Company”). Intercompany accounts and transactions are eliminated. |
Comprehensive Income | Comprehensive Income For the nine months ended March 31, 2022 and 2021 , there were no items that gave rise to other comprehensive income or loss, and, as a result net income equaled comprehensive income. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. These estimates include, among others, determination of fair value, allowances for doubtful accounts, impairment assessments of property, plant and equipment and intangible assets, valuation allowance determination on deferred tax assets, determining the incremental borrowing rate for calculating right of use assets and lease liabilities, and revenue recognition judgments. Significant estimates also include the Company's fair value determination with respect to its financial instruments, intangible assets, and precious metals inventory. Actual results could materially differ from these estimates. |
Reclassification | Reclassification In our condensed consolidated statements of income, we present depreciation and amortization expense as a separate line item. In prior fiscal years, depreciation and amortization expense was a component of the selling, general, and administrative expenses line item. In our condensed consolidated balance sheets and condensed consolidated statements of cash flows, we present (i) accounts payable and other payables and (ii) deferred revenue and other advances as a separate line items. In prior fiscal years the aggregate amounts were presented in a single line item, as accounts payable and other current liabilities. Prior periods have been reclassified to conform to the current period presentation. These reclassifications have no impact on previously reported net income, financial position, or cash flows. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the condensed consolidated balance sheets, condensed consolidated statements of income, condensed consolidated statements of stockholders’ equity, and condensed consolidated statements of cash flows for the periods presented in accordance with U.S. GAAP. Operating results for the nine months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022 or for any other interim period during such fiscal year. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended 2021 (the “2021 Annual Report”), as filed with the SEC. Amounts related to disclosure of June 30, 2021 balances within these interim condensed consolidated financial statements were derived from the audited consolidated financial statements and notes thereto included in the 2021 Annual Report. |
Fair Value Measurement | Fair Value Measurement The Fair Value Measurements and Disclosures Topic 820 of the ASC ("ASC 820"), creates a single definition of fair value for financial reporting. The rules associated with ASC 820 state that valuation techniques consistent with the market approach, income approach, and/or cost approach should be used to estimate fair value. Selection of a valuation technique, or multiple valuation techniques, depends on the nature of the asset or liability being valued, as well as the availability of data. (See Note 3 . ) |
Concentration of Credit Risk | Concentration of Credit Risk Cash is maintained at financial institutions, and, at times, balances may exceed federally insured limits. The Company has not experienced any losses related to these balances. Assets that potentially subject the Company to concentrations of credit risk consist principally of receivables, loans of inventory to customers, and inventory hedging transactions. Based on an assessment of credit risk, the Company typically grants collateralized credit to its customers. Credit risk with respect to loans of inventory to customers is minimal. The Company enters into inventory hedging transactions, principally utilizing metals commodity futures contracts traded on national futures exchanges or forward contracts with credit worthy financial institutions. All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Substantially all of these transactions are secured by the underlying metals positions. |
Foreign Currency | Foreign Currency The functional currency of the Company is the United States dollar ("USD"). The functional currency of the Company's wholly-owned foreign subsidiary, AMTAG, is USD, but it maintains its books of record in the European Union Euro. The Company remeasures the financial statements of AMTAG into USD. The remeasurement of local currency amounts into USD creates remeasurement gains and losses, which are included in the consolidated statements of income. To manage the effect of foreign currency exchange fluctuations, the Company utilizes foreign currency forward contracts. These derivatives generate gains and losses when settled and/or marked-to-market. |
Business Combination | Business Combination The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. Transaction costs related to the acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and noncontrolling interests, if any, in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and noncontrolling interests, if any, in an acquired entity is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities. Net cash paid to acquire a business is classified as investing activities on the accompanying condensed consolidated statements of cash flows. For a given acquisition, the Company may identify certain pre-acquisition uncertainties as of the acquisition date and may extend our review and evaluation of these pre-acquisition uncertainties throughout the measurement period in order to obtain sufficient information to assess whether we include these uncertainties as a part of the purchase price allocation and, if so, to determine the estimated amounts. If we determine that a pre-acquisition contingency (non-income tax related) is probable in nature and estimable as of the acquisition date, we record our best estimate for such an uncertain possibility as a part of the preliminary purchase price allocation. We often continue to gather information and evaluate our pre-acquisition uncertainties throughout the measurement period and if we make changes to the amounts recorded or if we identify additional pre-acquisition uncertainties during the measurement period, such amounts will be included in the purchase price allocation during the measurement period and, subsequently, in our results of operations. Uncertain tax positions and tax related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. We review these items during the measurement period as we continue to actively seek and collect information relating to facts and circumstances that existed at the acquisition date. Changes to these uncertain tax positions and tax related valuation allowances made subsequent to the measurement period, or if they relate to facts and circumstances that did not exist at the acquisition date, are recorded in the "Provision for income taxes" line of the Company’s condensed consolidated statements of income. (See Note 1 .) |
Variable Interest Entity | Variable Interest Entity A variable interest entity ("VIE") is a legal entity that has either (i) a total equity investment that is insufficient to finance its activities without additional subordinated financial support or (ii) whose equity investors as a group lack the ability to control the entity’s activities or lack the ability to receive expected benefits or absorb obligations in a manner that is consistent with their investment in the entity. A VIE is consolidated for accounting purposes by its primary beneficiary, which is the party that has both the power to direct the activities that most significantly impact the VIEs economic performance, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates VIEs when it is deemed to be the primary beneficiary. Management regularly reviews and re-evaluates its previous determinations regarding whether it holds a variable interest in potential VIEs, the status of an entity as a VIE, and whether the Company is required to consolidate such VIEs in its condensed consolidated financial statements. AMCF, a wholly owned subsidiary of CFC, is a special purpose entity ("SPE") formed as part of a securitization transaction in order to isolate certain assets and distribute the cash flows from those assets to investors. AMCF was structured to insulate investors from claims on AMCF’s assets by creditors of other entities. The Company has various forms of on-going involvement with AMCF, which may include (i) holding senior or subordinated interests in AMCF; (ii) acting as loan servicer for a portfolio of loans held by AMCF; and (iii) providing administrative services to AMCF. AMCF is required to maintain separate books and records. The assets and liabilities of this VIE, as of March 31, 2022 and June 30, 2021, are indicated on the table that follows the condensed consolidated balance sheets. AMCF is considered a VIE because its initial equity investment may be insufficient to maintain its on-going collateral requirements without additional financial support from the Company. The securitization is primarily secured by bullion loans and precious metals, and the Company is required to continuously hedge the value of certain collateral and make future contributions as necessary. The Company is the primary beneficiary of this VIE because the Company has the right to determine the type of collateral (i.e., cash, secured loans, or precious metals), has the right to receive (and has received) the proceeds from the securitization transaction, earns on-going interest income from the secured loans (subject to collateral requirements), and has the obligation to absorb losses should AMCF's interest expense and other costs exceed its interest income. (See Note 15 .) |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. The Company did not have any cash equivalents as of March 31, 2022 and June 30, 2021 . |
Precious Metals held under Financing Arrangements | Precious Metals held under Financing Arrangements The Company enters into arrangements with certain customers under which A-Mark purchases precious metals from the customers which are subject to repurchase by the customer at the spot value of the product on the repurchase date. The precious metals purchased under these arrangements consist of rare and unique items, and therefore the Company accounts for these transactions as precious metals held under financing arrangements, which generate financing income rather than revenue earned from precious metals inventory sales. In these repurchase arrangements, the Company holds legal title to the metals and earns financing income for the duration of the agreement. These arrangements are typically terminable by either party upon 14 days' notice. Upon termination, the customer’s right to repurchase any remaining precious metal is forfeited, and the related precious metals are reclassified as inventory held for sale. As of March 31, 2022 and June 30, 2021, precious metals held under financing arrangements totaled $ 87.5 million and $ 154.7 million respectively. The Company’s precious metals held under financing arrangements are marked-to-market. |
Inventories | Inventories The Company's inventory, which consists primarily of bullion and bullion coins, is acquired and initially recorded at cost and then marked to fair market value. The fair market value of the bullion and bullion coins comprises two components: (i) published market values attributable to the cost of the raw precious metal, and (ii) the premium paid at acquisition of the metal, which is attributable to the incremental value of the product in its finished goods form. The market value attributable solely to such premium is readily determinable by reference to multiple reputable published sources. The Company’s inventory, except for certain lower of cost or net realizable value basis products (as discussed below), are subsequently recorded at their fair market values, that is, "marked-to-market." The daily changes in the fair market value of our inventory are offset by daily changes in the fair market value of hedging derivatives that are taken with respect to our inventory positions; both the change in the fair market value of the inventory and the change in the fair market value of these derivative instruments are recorded in cost of sales in the condensed consolidated statements of income. While the premium component included in inventory is marked-to-market, our commemorative coin inventory, including its premium component, is held at the lower of cost or net realizable value, because the value of commemorative coins is influenced more by supply and demand determinants than on the underlying spot price of the precious metal content of the commemorative coins. Unlike our bullion coins, the value of commemorative coins is not subject to the same level of volatility as bullion coins because our commemorative coins typically carry a substantially higher premium over the spot metal price than bullion coins. Neither the commemorative coin inventory nor the premium component of our inventory is hedged. (See Note 6 .) |
Leases Right of use Assets | Leased Right of Use Assets We lease warehouse space, office facilities, and equipment. Our operating leases with terms longer than twelve months are recorded at the sum of the present value of the lease's fixed minimum payments as operating lease right of use assets ("ROU assets") in the Company’s condensed consolidated balance sheets. Lease terms include all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Our lease agreements do not contain any significant residual value guarantees or material restrictive covenants. Our finance leases (previously considered by the Company as capital leases prior to our adoption of ASU 2016-02, Leases (Topic 842) and subsequent related amendments (“ASC 842”) are another type of ROU asset but are classified in the Company’s condensed consolidated balance sheets as a component of property, plant, and equipment at the present value of the lease payments. The ROU asset amounts include any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by lease incentives. We use our incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases, as our leases do not have readily determinable implicit discount rates. Our incremental borrowing rate is the rate of interest that we would incur to borrow on a collateralized basis over a similar term and amount in a similar economic environment Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the ROU assets and interest expense for the outstanding lease liabilities using the discount rate discussed above. The depreciable life of ROU assets is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. (See Note 7 ) |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using a straight-line method based on the estimated useful lives of the related assets, ranging from three years to twenty-five years . Depreciation and amortization commence when the related assets are placed into service. Internal-use software development costs are capitalized during the application development stage. Internal-use software costs incurred during the preliminary project stage are expensed as incurred. Land is recorded at historical cost and is not depreciated. Repair and maintenance costs are expensed as incurred. We have no major planned maintenance activities related to our plant assets associated with our minting operations The Company reviews the carryi ng value of these assets for impairment whenever events and circumstances indicate that the carrying value of the asset may not be recoverable. In evaluating for impairment, the carrying value of each asset or group of assets is compared to the undiscounted estimated future cash flows expected to result from its use and eventual disposition. An impairment loss is recognized for the difference when the carrying value exceeds the discounted estimated future cash flows. The factors considered by the Company in performing this assessment include current and projected operating results, trends and prospects, the manner in which these assets are used, and the effects of obsolescence, demand and competition, as well as other economic factors. |
Finite-lived Intangible Assets | Finite-lived Intangible Assets Finite-lived intangible assets consist primarily of customer relationships, non-compete agreements, and employment contracts. Existing customer relationships intangible assets are amortized in a manner reflecting the pattern in which the economic benefits of the assets are consumed. All other intangible assets subject to amortization are amortized using the straight-line method over their useful lives, which are estimated to be one year to fifteen years . We review our finite-lived intangible assets for impairment under the same policy described above for property, plant, and equipment; that is, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Digital Assets | Digital Assets The Company has purchased certain digital assets (crypto currencies) that are held for investment purposes. The Company accounts for digital assets in accordance with Intangibles - Goodwill and Other Topic 350 of the ASC ("ASC 350"). D igital assets are shown in the other long-term assets line item on the condensed consolidated balance sheets. Digital assets are a type of intangible asset with indefinite useful lives, which are recorded at cost less impairment. Accordingly, if the fair market value at any point d uring the reporting period is lower than the carrying value, an impairment loss is recorded. If the fair market value at any point during the reporting period is higher than the carrying value the basis of the digital assets will not be adjusted to account for this increase. Gains on digital assets, if any, are recognized upon sale or disposal of the digital assets. Write downs and gains are shown in the condensed consolidated statement of income, as component of the line item other income, net. As of March 31, 2022 and June 30, 2021, the carrying balance of the digital assets was $ 0.2 million and $ 0.0 million respectively, which is shown net of cumulative write-downs of $ 0.1 million and $ 0.0 million , respectively. As of March 31, 2022, the fair market value of such digital assets held was $ 0.3 million . For the three and nine months ended March 31, 2022, the Company recorded $ 0.1 million and $ 0.1 million , respectively, of write-downs on such digital assets. For the three and nine months ended March 31, 2022 , the Company had no realized gains related to sale of digital assets. For the three and nine months ended March 31, 2021 , the Company had no digital asset activity. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill and other indefinite-lived intangibles (such as trade names and trademarks) are not subject to amortization but are evaluated for impairment at least annually. However, for tax purposes, goodwill acquired in connection with a taxable asset acquisition is generally deductible. The Company evaluates its goodwill and other indefinite-lived intangibles for impairment in the fourth quarter of the fiscal year (or more frequently if indicators of potential impairment exist) in accordance with ASC 350. Goodwill is reviewed for impairment at a reporting unit level, which for the Company, corresponds to the Company’s reportable operating segments. Evaluation of goodwill for impairment The Company has the option to first qualitatively assess whether relevant events and circumstances make it more likely than not that the fair value of the reporting unit's goodwill is less than its carrying value. A qualitative assessment includes analyzing current economic indicators associated with a particular reporting unit such as changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If, based on this qualitative assessment, management concludes that goodwill is more likely than not to be impaired, or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis to determine the fair value of the business, and compare the calculated fair value of the reporting unit with its carrying amount, including goodwill. If through this quantitative analysis the Company determines the fair value of a reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not to be impaired. If the Company concludes that the fair value of the reporting unit is less than its carrying value, a goodwill impairment loss will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. (See Note 9 .) Evaluation of indefinite-lived intangible assets for impairment The Company evaluates its indefinite-lived intangible assets (i.e., trade names and trademarks) for impairment. In assessing its indefinite-lived intangible assets for impairment, the Company has the option to first perform a qualitative assessment to determine whether events or circumstances exist that lead to a determination that it is unlikely that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If the Company determines that it is unlikely that the fair value of an indefinite-lived intangible asset is less than its carrying amount, the Company is not required to perform any additional tests in assessing the asset for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it is required to perform a quantitative analysis to determine if the fair value of an indefinite-lived intangible asset is less than its carrying value. If through this quantitative analysis the Company determines the fair value of an indefinite-lived intangible asset exceeds its carrying amount, the indefinite-lived intangible asset is considered not to be impaired. If the Company concludes that the fair value of an indefinite-lived intangible asset is less than its carrying value, an impairment loss will be recognized for the amount by which the carrying amount exceeds the indefinite-lived intangible asset’s fair value. The methods used to estimate the fair value measurements of the Company’s reporting units and indefinite-lived intangible assets include those based on the income approach (including the discounted cash flow and relief-from-royalty methods) and those based on the market approach (primarily the guideline transaction and guideline public company methods). (See Note 9 .) |
Long-Term Investments | Long-Term Investments Investments in privately-held entities are accounted for using the equity method when the Company has significant influence but not control over the investee and are accounted for using the cost method when the Company has little or no influence over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20 % and 50 %, although other factors are considered in determining whether the equity method of accounting is appropriate. Under the equity method, the carrying value of the investment is adjusted for the Company’s proportionate share of the investee’s earnings or losses, with the corresponding share of earnings or losses reported in other income, net. The carrying value of the investment is reduced by the amount of the dividends received from the equity-method investee, as they are considered a return of capital. Under the cost method of accounting, the investment is measured at cost, adjusted for other-than-temporary impairments, with changes recognized in net income. We evaluate our long-term investments for impairment quarterly or whenever events or changes in circumstances indicate that a decline in the fair value of these assets is determined to be other-than-temporary. Additionally, the Company performs an on-going evaluation of the investments with which the Company has variable interests to determine if any of these entities are VIEs that are required to be consolidated. None of the Company’s long-term investments are reportable VIEs as of March 31, 2022 and June 30, 2021 . |
Noncontrolling Interest | Noncontrolling interest The Company’s condensed consolidated financial statements include entities in which the Company has a controlling financial interest. Noncontrolling interest is the portion of equity (net assets) in an entity in which the Company has a controlling financial interest that is not attributable, directly or indirectly, to the Company. Such noncontrolling interest is reported on the condensed consolidated balance sheets within equity, separately from the Company’s equity. On the condensed consolidated statements of income, revenues, expenses and net income or loss from the less-than-wholly owned subsidiary are reported at their consolidated amounts, including both the amounts attributable to the Company and the noncontrolling interest. Income or loss is allocated to the noncontrolling interest based on its weighted average ownership percentage for the applicable period. The condensed consolidated statements of equity include beginning balances, activity for the period and ending balances for each component of stockholders’ equity, noncontrolling interest and total equity. |
Revenue Recognition | Revenue Recognition Settlement Date Accounting Substantially all of the Company’s sales of precious metals are conducted using sales contracts that meet the definition of derivative instruments in accordance with the Derivatives and Hedging Topic 815 of the ASC ("ASC 815"). The contract underlying A-Mark’s commitment to deliver precious metals is referred to as a “fixed-price forward commodity contract” because the price of the commodity is fixed at the time the order is placed. Revenue is recognized on the settlement date, which is defined as the date on which: (i) the quantity, price, and specific items being purchased have been established, (ii) metals have been delivered to the customer, and (iii) payment has been received or is covered by the customer’s established credit limit with the Company. All derivative instruments are marked-to-market during the interval between the order date and the settlement date, with the changes in the fair value charged to cost of sales. The Company’s hedging strategy to mitigate the market risk associated with its sales commitments is described separately below under the caption “Hedging Activities.” Types of Orders that are Physically Delivered The Company’s contracts to sell precious metals to customers are usually settled with the physical delivery of metals to the customer, although net settlement (i.e., settlement at an amount equal to the difference between the contract value and the market price of the metal on the settlement date) is permitted. Below is a summary of the Company’s major order types and the key factors that determine when settlement occurs and when revenue is recognized for each type: • Traditional physical orders — The quantity, specific product, and price are determined on the order date. Payment or sufficient credit is verified prior to delivery of the metals on the settlement date. • Consignment orders — The Company delivers the items requested by the customer prior to establishing a firm order with a price. Settlement occurs and revenue is recognized once the customer confirms its order (quantity, specific product, and price) and remits full payment for the sale. • Provisional orders — The quantity and type of metal is established at the order date, but the price is not set. The customer commits to purchasing the metals within a specified time period, usually within one year , at the then-current market price. The Company delivers the metal to the customer after receiving the customer’s deposit, which is typically based on 110 % of the prevailing current spot price. The unpriced metal is subject to a margin call if the deposit falls below 105 % of the value of the unpriced metal. The purchase price is established, and revenue is recognized at the time the customer notifies the Company that it desires to purchase the metal. • Margin orders — The quantity, specific product, and price are determined at the order date; however, the customer is allowed to finance the transaction through the Company and to defer delivery by committing to remit a partial payment (approximately 20 %) of the total order price. With the remittance of the partial payment, the customer locks in the purchase price for a specified time period (usually up to two years from the order date). Revenue on margin orders is recognized when the order is paid in full and delivered to the customer. • Borrowed precious metals orders for unallocated positions — Customers may purchase unallocated metal positions in the Company's inventory. The quantity and type of metal is established at the order date, but the specific product is not yet determined . Revenue is not recognized until the customer selects the specific precious metal product it wishes to purchase, full payment is received, and the product is delivered to the customer. In general, unshipped orders for which a customer advance has been received by the Company are classified as advances from customers. Orders that have been paid for and shipped, but not yet delivered to the customer are classified as deferred revenue. Both customer advances and deferred revenue are shown, in the aggregate, as deferred revenue and other advances in the condensed consolidated financial statements. See Note 11 for further details. |
Hedging Activities | Hedging Activities The value of our inventory and our purchase and sale commitments are linked to the prevailing price of the underlying precious metal commodity. The Company seeks to minimize the effect of price changes of the underlying commodity and enters into inventory hedging transactions, principally utilizing metals commodity futures contracts traded on national futures exchanges or forward contracts with credit worthy financial institutions. The Company hedges by each commodity type (gold, silver, platinum, and palladium). All of our commodity derivative contracts are under master netting arrangements and include both asset and liability positions. Commodity forward, and futures contracts entered into for hedging purposes are recorded at fair value on the trade date and are marked-to-market each period. The difference between the original contract values and the market values of these contracts are reflected as derivative assets or derivative liabilities in the condensed consolidated balance sheets at fair value, with the corresponding unrealized gains or losses included as a component of cost of sales. When these contracts are net settled, the unrealized gains and losses are reversed and the realized gains and losses for forward contracts are recorded in revenue and cost of sales and the net realized gains and losses for futures and option contracts are recorded in cost of sales. The Company enters into futures and forward contracts solely for the purpose of hedging our inventory holding risk and our liability on price protection programs, and not for speculative market purposes. The Company’s gains and losses on derivative instruments are substantially offset by the changes in the fair market value of the underlying precious metals inventory, which is also recorded in cost of sales in the condensed consolidated statements of income. (See Note 12 . ) |
Other Sources of Revenue | Other Sources of Revenue [[ The Company recognizes its storage, logistics, licensing, and other services revenues in accordance with the FASB's release ASU 2014-09 Revenue From Contracts With Customers Topic 606 of the ASC and subsequent related amendments ("ASC 606"), which follows five basic steps to determine whether revenue can be recognized: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when or as it satisfies its obligation by transferring control of the good or service to the customer. This is either satisfied over time or at a point in time. A performance obligation is satisfied over time if one of the following criteria are met: (i) the customer simultaneously receives and consumes the benefits as the Company performs, (ii) the Company's performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (iii) the Company's performance does not create an asset with an alternative use to the Company, and the Company has an enforceable right for payment of performance completed-to-date. When none of those is met, a performance obligation is satisfied at a point-in-time. The Company recognizes storage revenue as the customer simultaneously receives and consumes the storage services (e.g., fixed storage fees based on the passage of time). The Company recognizes logistics (i.e., fulfillment) revenue when the customer receives the benefit of the services. The Company recognizes advertising and consulting revenues when the service is performed, and the benefit of the service is received by the customer. In aggregate, these types of service revenues account for less than 1% of the Company's consolidated revenues. |
Interest Income | Interest Income In accordance with the Interest Topic 835 of the ASC ("ASC 835"), the following are interest income generating activities of the Company: • Secured Loans — The Company uses the effective interest method to recognize interest income on its secured loans transactions. The Company maintains a security interest in the precious metals and records interest income over the terms of the secured loan receivable. Recognition of interest income is suspended, and the loan is placed on non-accrual status when management determines that collection of future interest income is not probable. The interest income accrual is resumed, and previously suspended interest income is recognized, when the loan becomes contractually current and/or collection doubts are resolved. Cash receipts on impaired loans are recorded first against the principal and then to any unrecognized interest income. (See Note 5 .) • Margin accounts — The Company earns a fee (interest income) under financing arrangements related to margin orders over the period during which customers have opted to defer making full payment on the purchase of metals. • Repurchase agreements — Repurchase agreements represent a form of secured financing whereby the Company sets aside specific metals for a customer and charges a fee on the outstanding value of these metals. The customer is granted the option (but not the obligation) to repurchase these metals at any time during the open reacquisition period. This fee is earned over the duration of the open reacquisition period and is classified as interest income. • Spot deferred orders Spot deferred orders are a special type of forward delivery order that enable customers to purchase or sell certain precious metals from/to the Company at an agreed upon price but, are allowed to delay remitting or taking delivery up to a maximum of two years from the date of order. Even though the contract allows for physical delivery, it rarely occurs for this type of order. As a result, revenue is not recorded from these transactions. Spot deferred orders are considered a type of financing transaction, where the Company earns a fee (interest income) under spot deferred arrangements over the period in which the order is open. |
Interest Expense | Interest Expense The Company accounts for interest expense on the following arrangements in accordance with Interest Topic 835 of the ASC ("ASC 835"): • Borrowings — The Company incurs interest expense from its lines of credit, its debt obligations, and notes payable using the effective interest method. (See Note 15 .) Additionally, the Company amortizes capitalized loan costs to interest expense over the period of the loan agreement. • Loan servicing fees — When the Company purchases loan portfolios, the Company may have the seller service the loans that were purchased. The Company incurs a fee based on total interest charged to borrowers over the period the loans are outstanding. The servicing fee incurred by the Company is charged to interest expense. • Product financing arrangements — The Company incurs financing fees (classified as interest expense) from its product financing arrangements (also referred to as reverse-repurchase arrangements) with third party finance companies for the transfer and subsequent option to reacquire its precious metal inventory at a later date. These arrangements are accounted for as secured borrowings. During the term of this type of agreement, the third party charges a monthly fee as a percentage of the market value of the designated inventory, which the Company intends to reacquire in the future. No revenue is generated from these arrangements. The Company enters this type of transaction for additional liquidity. • Borrowed and leased metals fees — The Company may incur financing costs from its borrowed metal arrangements. The Company borrows precious metals (usually in the form of pool metals) from its suppliers and customers under short-term arrangements using other precious metals as collateral. Typically, during the term of these arrangements, the third party charges a monthly fee as a percentage of the market value of the metals borrowed (determined at the spot price) plus certain processing and other fees. Leased metal transactions are a similar type of transaction, except the Company is not required to pledge other precious metal as collateral for the precious metal received. The fees charged by the third party are based on the spot value of the pool metal received. Both borrowed and leased metal transactions provide an additional source of liquidity, as the Company usually monetizes the metals received under such arrangements. Repayment is usually in the same form as the metals advanced but may be settled in cash. |
Amortization of Debt Issuance Costs | Amortization of Debt Issuance Costs Debt issuance costs incurred in connection with the issuance of debt have been included as a component of the carrying amount of debt, with the exception of Trading Credit Facility debt issuance costs, which are included in prepaid expenses and other assets in the Company's condensed consolidated balance sheets. Debt issuance costs are amortized to interest expense over the contractual term of the debt. Debt issuance costs of the Trading Credit Facility are amortized on a straight-line basis, while all other debt issuance costs are amortized using the effective interest method. Amortization of debt issuance costs included in interest ex pense was $ 0.5 million and $ 0.7 million for the three months ended March 31, 2022 and 2021, respectively. Amortization of debt issuance costs included in interest expense was $ 2.1 million and $ 1.7 million for the nine months ended March 31, 2022 and 2021, resp ectively. |
Earnings from Equity Method Investments | Earnings from Equity Method Investments The Company's proportional interest in the reported earnings from equity method investments is shown on the condensed consolidated statements of income as earnings from equity method investments. Prior to the fourth quarter of fiscal 2021, the Company presented earnings from equity method investments as a component of other income (loss), net in the statements of income. Such reclassification had no impact on current or prior years’ net income, total assets, total liabilities, stockholders’ equity or cash flows. |
Other Income, Net | Other Income, Net The Company's other income and expense is comprised of: (i) royalty income, which is recognized when earned, and (ii) digital asset impairment, which is recognized when the fair market value of the asset at any point during the reporting period is lower than its carrying value. |
Advertising | Advertising Advertising and marketing costs consist primarily of internet advertising, online marketing, direct mail, print media, and television commercials and are expensed when incurred. Advertising costs totaled $ 3.3 million and $ 1.0 million for the three months ended March 31, 2022 and 2021. Advertising costs totaled $ 9.1 million and $ 2.3 million for the nine months ended March 31, 2022 and 2021 . Costs associated with the marketing and promotion of the Company's products are included within selling, general, and administrative expenses. Advertising costs associated with the operation of our SilverPrice.org and GoldPrice.org websites, which provide price information on silver, gold, and cryptocurrencies, are not included within selling, general, and administrative expenses, but are included in cost of sales in the condensed consolidated statements of income. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs represent costs associated with shipping product to customers and receiving product from vendors and are included in cost of sales in the condensed consolidated statements of income. Shipping and handling costs incurred totaled $ 6.8 million and $ 5.3 million , respectively, for the three months ended March 31, 2022 and 2021. Shipping and handling costs incurred totaled $ 18.9 million and $ 10.3 million , respectively, for the nine months ended March 31, 2022 and 2021 . |
Share-Based Compensation | Share-Based Compensation The Company accounts for equity awards under the provisions of the Compensation - Stock Compensation Topic 718 of the ASC ("ASC 718"), which establishes fair value-based accounting requirements for share-based compensation to employees. ASC 718 requires the Company to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees as expense over the service period in the Company's condensed consolidated financial statements. The expense is adjusted for actual forfeitures of unvested awards as they occur. (See Note 17 .) |
Income Taxes | Income Taxes As part of the process of preparing its condensed consolidated financial statements, the Company is required to estimate its provision for income taxes in each of the tax jurisdictions in which it conducts business, in accordance with the Income Taxes Topic 740 of the ASC ("ASC 740"). The Company computes its annual tax rate based on the statutory tax rates and tax planning opportunities available to it in the various jurisdictions in which it earns income. Significant judgment is required in determining the Company's annual tax rate and in evaluating uncertainty in its tax positions. The Company has adopted the provisions of ASC 740-10, which clarifies the accounting for uncertain tax positions. ASC 740-10 requires that the Company recognizes the impact of a tax position in the financial statements if the position is not more likely than not to be sustained upon examination based on the technical merits of the position. The Company recognizes interest and penalties related to certain uncertain tax positions as a component of income tax expense and the accrued interest and penalties are included in deferred and income taxes payable in the Company’s condensed consolidated balance sheets. (See Note 13 for more information on the Company’s accounting for income taxes.) Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The factors used to assess the likelihood of realization include the Company's forecast of the reversal of temporary differences, future taxable income, and available tax planning strategies that could be implemented to realize the net deferred tax assets. Failure to achieve forecasted taxable income in applicable tax jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company's effective tax rate on future earnings. Based on our assessment, it appears more likely than not that all of the net deferred tax assets will be realized through future taxable income. |
Earnings per Share (EPS) | Earnings per Share ("EPS") The Company computes and reports both basic EPS and diluted EPS. Basic EPS is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the sum of the weighted average number of common shares and dilutive common stock equivalents outstanding during the period. Diluted EPS reflects the total potential dilution that could occur from outstanding equity awards, including unexercised stock options, utilizing the treasury stock method. A reconciliation of shares used in calculating basic and diluted earnings per common share for the three and nine months ended March 31, 2022 and 2021, is presented below. in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Basic weighted average shares outstanding 11,430 8,029 11,356 7,404 Effect of common stock equivalents — stock issuable 783 639 782 577 Diluted weighted average shares outstanding 12,213 8,668 12,138 7,981 Actual common shares outstanding totaled 11,514,010 and 11,136,233 as of March 31, 2022 and March 31, 2021 . |
Dividends | Dividends Dividends are recorded if and when they are declared by the Board of Directors (see Note 17 ). |
Recent Accounting Pronouncements and Auditing Standards Adopted and Not Yet Adopted | Recently Adopted Accounting Pronouncements and Auditing Standards From time to time, the Financial Accounting Standards Board ("FASB") or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). In December 2019, the FASB issued ASU 2019-12 (“ASU 2019-12”), Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The Company adopted this ASU in the first quarter of the 2022 fiscal year . The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements and disclosures. Recent Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this ASU apply to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued because of reference rate reform. This update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and the London interbank offered rate ("LIBOR"). This guidance includes practical expedients for contract modifications due to reference rate reform. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. This guidance is effective immediately; however, it is only available through December 31, 2022. The Company believes the amendments of ASU 2020-04 will not have a significant impact on the Company’s consolidated financial statements and related disclosures as the Company does not currently have any material contracts tied to LIBOR. Effective December 21, 2021, our new Trading Credit Facility is now tied to SOFR and the Company did not in have any material adverse consequences from this transition (see Note 15 ). In June 2016, the FASB issued ASU No. 2016-13, (“ASU 2016-13”), Financial Instruments - Credit Loss (Topic 326) , which updates the guidance on recognition and measurement of credit losses for financial assets. The new requirements, known as the current expected credit loss model ("CECL") will require entities to adopt an impairment model based on expected losses rather than incurred losses. This update is effective for the Company on July 1, 2022 (for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years) . The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASU’s 2018-19, 2019-05, 2019-10, 2019-11, 2020-02, and 2022-02. These ASU’s have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The Company does not have a history of credit losses. The adoption of this guidance will not have a material impact on the Company’s fina ncial statements or our internal controls over financial reporting. Management does not believe that any other recently issued, but not yet effective, accounting pronouncement if currently adopted would have a material effect on the Company's condensed consolidated financial statements. |
Description of Business (Tables
Description of Business (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Pro Forma Consolidated Results of Operations | The following pro forma consolidated results of operations of the Company for the three and nine months ended March 31, 2021, assumes that the acquisition of JMB occurred on July 1, 2019. in thousands Three Months Ended Nine Months Ended March 31, March 31, Revenue $ 2,339,148 $ 5,974,317 Net income $ 80,673 $ 131,717 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Reconciliation of Shares Used in Calculating Basic and Diluted Earnings per Common Shares | A reconciliation of shares used in calculating basic and diluted earnings per common share for the three and nine months ended March 31, 2022 and 2021, is presented below. in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Basic weighted average shares outstanding 11,430 8,029 11,356 7,404 Effect of common stock equivalents — stock issuable 783 639 782 577 Diluted weighted average shares outstanding 12,213 8,668 12,138 7,981 |
Assets and Liabilities, at Fa_2
Assets and Liabilities, at Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Value of Fixed-Rate Notes Payable | The following table presents the carrying amounts and estimated fair values of the Company’s fixed-rate notes payable as of March 31, 2022 and June 30, 2021: in thousands March 31, 2022 June 30, 2021 Carrying Fair value Carrying Fair value Notes payable $ 93,859 $ 96,047 $ 93,249 $ 100,724 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and June 30, 2021, aggregated by each fair value hierarchy level: in thousands March 31, 2022 Quoted Price in Active Markets Significant Other Significant for Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Inventories (1) $ 763,155 $ — $ — $ 763,155 Precious metals held under financing arrangements 87,450 — — 87,450 Derivative assets — open sale and purchase commitments, net 25,389 — — 25,389 Derivative assets — futures contracts 138 — — 138 Derivative assets — forward contracts 446 — — 446 Total assets, valued at fair value $ 876,578 $ — $ — $ 876,578 Liabilities: Liabilities on borrowed metals $ 67,824 $ — $ — $ 67,824 Product financing arrangements 199,447 — — 199,447 Derivative liabilities — open sale and purchase commitments, net 2,522 — — 2,522 Derivative liabilities — margin accounts 4,081 — — 4,081 Derivative liabilities — futures contracts 1,260 — — 1,260 Derivative liabilities — forward contracts 16,920 — — 16,920 Total liabilities, valued at fair value $ 292,054 $ — $ — $ 292,054 (1) Commemorative coin inventory totaling $ 1,108 thousand is held at lower of cost or realizable value, and thus is excluded from the inventories balance shown in this table. in thousands June 30, 2021 Quoted Price in Active Markets Significant Other Significant for Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Inventories (1) $ 457,613 $ — $ — $ 457,613 Precious metals held under financing arrangements 154,742 — — 154,742 Derivative assets — open sale and purchase commitments, net 38,340 — — 38,340 Derivative assets — futures contracts 4,510 — — 4,510 Derivative assets — forward contracts 1,686 — — 1,686 Total assets, valued at fair value $ 656,891 $ — $ — $ 656,891 Liabilities: Liabilities on borrowed metals $ 91,866 $ — $ — $ 91,866 Product financing arrangements 201,028 — — 201,028 Derivative liabilities — open sale and purchase commitments, net 243 — — 243 Derivative liabilities — margin accounts 2,806 — — 2,806 Derivative liabilities — futures contracts 465 — — 465 Derivative liabilities — forward contracts 4,025 — — 4,025 Total liabilities, valued at fair value $ 300,433 $ — $ — $ 300,433 (1) Commemorative coin inventory totaling $ 406 thousand is held at lower of cost or net realizable value, and thus is excluded from the inventories balance shown in this table. |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables consist of the following as of March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Customer trade receivables $ 22,539 $ 12,197 Wholesale trade advances 24,156 26,959 Due from brokers 18,941 49,844 $ 65,636 $ 89,000 |
Secured Loans Receivable (Table
Secured Loans Receivable (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Receivables | Receivables consist of the following as of March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Customer trade receivables $ 22,539 $ 12,197 Wholesale trade advances 24,156 26,959 Due from brokers 18,941 49,844 $ 65,636 $ 89,000 |
Schedule of Classes for Financing Receivables | The Company's secured loans by portfolio class, which align with internal management reporting, are as follows: in thousands March 31, 2022 June 30, 2021 Bullion $ 108,253 74.2 % $ 88,332 78.2 % Numismatic and semi-numismatic 36,303 24.9 % 24,636 21.8 % Graded sports memorabilia 1,282 0.9 % — 0.0 % $ 145,838 100.0 % $ 112,968 100.0 % |
Schedule of Financing Receivable Credit Quality Indicators | Below is summary of aggregate outstanding secured loan balances bifurcated into (i) loans with a LTV ratio of less than 75% and (ii) loans with a LTV ratio of 75% or more: in thousands March 31, 2022 June 30, 2021 Loan-to-value of less than 75% $ 105,072 72.0 % $ 96,602 85.5 % Loan-to-value of 75% or more 40,766 28.0 % 16,366 14.5 % $ 145,838 100.0 % $ 112,968 100.0 % |
Financing Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Receivables | Below is a summary of the carrying value of our secured loans as of March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Secured loans originated $ 43,884 $ 36,080 Secured loans originated - with a related party 7,034 3,042 50,918 39,122 Secured loans acquired 94,920 73,846 $ 145,838 $ 112,968 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Below, our inventory is summarized by classification at March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Inventory held for sale $ 435,343 $ 159,319 Repurchase arrangements with customers 105,196 75,063 Consignment arrangements with customers 1,001 1,327 Commemorative coins, held at lower of cost or net realizable value 1,108 406 Borrowed precious metals 22,168 20,876 Product financing arrangements, restricted 199,447 201,028 $ 764,263 $ 458,019 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Operating Lease Expense | Components of operating lease expense for the three and nine months ended March 31, 2022 and 2021 were as follows: in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Operating lease costs $ 347 $ 361 $ 1,181 $ 1,060 Variable lease costs 143 67 379 217 Short term lease costs 23 21 70 73 Finance lease costs 6 5 16 16 $ 519 $ 454 $ 1,646 $ 1,366 |
Schedule of Future Undiscounted Cash Flows for Each of Next Five Years and Thereafter and Reconciliation to Lease Liabilities | The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of March 31, 2022: Years ending June 30, Operating 2022 (3 months remaining) 380 2023 1,646 2024 1,692 2025 1,669 2026 1,244 Thereafter 2,102 Total lease payments 8,733 Imputed interest ( 1,159 ) $ 7,574 (1) Operating lease liability - current $ 1,270 (2) Operating lease liability - long-term 6,304 (3) $ 7,574 (1) (1) Represents the present value of the capitalized operating lease liabilities as of March 31, 2022. (2) Current operating lease liabilities are presented within accrued liabilities on our condensed consolidated balance sheets. (3) Long-term operating lease liabilities are presented within other liabilities on our condensed consolidated balance sheets. |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant, and equipment consists of the following at March 31, 2022 and June 30, 2021: in thousands March 31, June 30, Office furniture, and fixtures $ 2,177 $ 2,373 Computer equipment 1,222 1,069 Computer software 6,267 5,387 Plant equipment 6,135 5,535 Building 509 505 Leasehold improvements 3,012 3,009 Total depreciable assets 19,322 17,878 Less: Accumulated depreciation and amortization ( 11,461 ) ( 10,714 ) Property and equipment not placed in service 1,645 1,409 Land 36 36 Property, plant, and equipment, net $ 9,542 $ 8,609 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill and Other Purchased Intangibles | The carrying value of goodwill and other purchased intangibles as of March 31, 2022 and June 30, 2021 is as described below: dollar amounts in thousands March 31, 2022 June 30, 2021 Estimated Remaining Gross Accumulated Accumulated Net Gross Accumulated Accumulated Net Identifiable intangible assets: Existing customer 5 - 15 3.1 $ 53,498 $ ( 36,736 ) $ — $ 16,762 $ 53,498 $ ( 15,832 ) $ — $ 37,666 Developed technology 4 3.0 10,500 ( 2,710 ) — 7,790 10,500 ( 741 ) — 9,759 Non-compete and other 3 - 5 0.0 2,300 ( 2,300 ) — — 2,300 ( 2,256 ) — 44 Employment agreement 1 - 3 0.0 295 ( 295 ) — — 295 ( 295 ) — — Intangibles subject to amortization 66,593 ( 42,041 ) — 24,552 66,593 ( 19,124 ) — 47,469 Trade names and trademarks Indefinite Indefinite 47,454 — ( 1,290 ) 46,164 47,454 — ( 1,290 ) 46,164 Identifiable intangible assets $ 114,047 $ ( 42,041 ) $ ( 1,290 ) 70,716 $ 114,047 $ ( 19,124 ) $ ( 1,290 ) $ 93,633 Goodwill Indefinite Indefinite $ 102,307 $ — $ ( 1,364 ) $ 100,943 $ 102,307 $ — $ ( 1,364 ) $ 100,943 |
Schedule of Estimated Annual Amortization Expense Related to Definite-Lived Intangible Assets | Estimated annual amortization expense related to definite-lived intangible assets for the succeeding five years is as follows (in thousands): Fiscal Year Ending June 30, Amount 2022 (3 months remaining) 2,752 2023 9,893 2024 7,382 2025 4,240 2026 47 Thereafter 238 $ 24,552 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Long-term Investments [Abstract] | |
Schedule of Carrying Value and Ownership Percentage of Investment | The following table shows the carrying value and ownership percentage of the Company's investment in each entity: March 31, 2022 June 30, 2021 Investee (1) (2) Carrying Ownership Carrying Ownership (in thousands) (in thousands) Company A $ 4,579 7.4 % $ 3,795 7.4 % Company C (3) 13,220 49.0 % 1,940 10.0 % Company D 12,477 44.9 % 10,499 44.9 % Company E 233 33.3 % 233 33.3 % Company F 2,002 50.0 % 2,000 50.0 % $ 32,511 $ 18,467 (1) JMB was previously reported as Company B. In March 2021, we acquired the remaining ownership interest in JMB that we did not previously own and consequently consolidated JMB as a wholly-owned subsidiary. (2) All of the Company's investees are accounted for using the equity method, with the exception of Company E, which is accounted for using the cost method. (3) On August 27, 2021 , the Company increased its ownership interest in Company C from 10 % to 49 %, for a purchase price of $ 9.75 million, consisting of $ 6.75 million in cash and 61,590 shares of the Company’s common stock. The Company acquired its initial minority investment in January 2019. |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Accounts Payable And Other Current Liabilities [Abstract] | |
Schedule of Accounts Payable and Other Current Liabilities | Accounts payable and other current liabilities consist of the following: in thousands March 31, June 30, Trade payables to customers $ 21,827 $ 1,561 Other accounts payable 4,348 4,374 Trade payables and other payables $ 26,175 $ 5,935 Deferred revenue $ 30,974 $ 20,508 Advances from customers 162,107 173,908 Deferred revenue and advances from customers $ 193,081 $ 194,416 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Transactions (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Aggregate Gross and Net Derivative Receivables and Payables Balances | In the table below, the aggregate gross and net derivative receivables and payables balances are presented by contract type and type of hedge, as of March 31, 2022 and June 30, 2021. in thousands March 31, 2022 June 30, 2021 Gross Amounts Cash Net Gross Amounts Cash Net Nettable derivative assets: Open sale and purchase commitments $ 41,283 $ ( 15,894 ) $ — $ 25,389 $ 56,923 $ ( 18,583 ) $ — $ 38,340 Future contracts 138 — — 138 4,510 — — 4,510 Forward contracts 446 — — 446 1,686 — — 1,686 $ 41,867 $ ( 15,894 ) $ — $ 25,973 $ 63,119 $ ( 18,583 ) $ — $ 44,536 Nettable derivative liabilities: Open sale and purchase commitments $ 3,597 $ ( 1,075 ) $ — $ 2,522 $ 1,410 $ ( 1,167 ) $ — $ 243 Margin accounts 12,639 — ( 8,558 ) 4,081 7,322 — ( 4,516 ) 2,806 Future contracts 1,260 — — 1,260 465 — — 465 Forward contracts 16,920 — — 16,920 4,025 — — 4,025 $ 34,416 $ ( 1,075 ) $ ( 8,558 ) $ 24,783 $ 13,222 $ ( 1,167 ) $ ( 4,516 ) $ 7,539 |
Summary of Net Gains (Losses) on Derivative Instruments | Below is a summary of the net gains (losses) on derivative instruments for the three and nine months ended March 31, 2022 and 2021. in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Gains (losses) on derivative instruments: Unrealized gains (losses) on open future commodity and forward contracts and open sale and purchase commitments, net $ 23,411 $ 42,390 $ ( 34,694 ) $ 28,115 Realized (losses) gains on future commodity contracts, net ( 16,457 ) ( 38,271 ) 26,355 ( 145,693 ) $ 6,954 $ 4,119 $ ( 8,339 ) $ ( 117,578 ) |
Summary of Hedging Activities Shows Precious Metal Commodity Inventory Position Net of Open Sale and Purchase Commitments | The following table summarizes the results of our hedging activities, which shows the precious metal commodity inventory position, net of open sale and purchase commitments, that is subject to price risk as of March 31, 2022 and June 30, 2021. in thousands March 31, June 30, Inventories $ 764,263 $ 458,019 Precious metals held under financing arrangements 87,450 154,742 851,713 612,761 Less unhedgeable inventories: Commemorative coin inventory, held at lower of cost or net realizable value ( 1,108 ) ( 406 ) Premium on metals position ( 20,353 ) ( 11,017 ) Precious metal value not hedged ( 21,461 ) ( 11,423 ) 830,252 601,338 Commitments at market: Open inventory purchase commitments 950,825 987,926 Open inventory sales commitments ( 861,977 ) ( 590,156 ) Margin sale commitments ( 12,639 ) ( 7,322 ) In-transit inventory no longer subject to market risk ( 23,965 ) ( 16,707 ) Unhedgeable premiums on open commitment positions 9,073 8,638 Borrowed precious metals ( 67,824 ) ( 91,866 ) Product financing arrangements ( 199,447 ) ( 201,028 ) Advances on industrial metals 55 287 ( 205,899 ) 89,772 Precious metal subject to price risk 624,353 691,110 Precious metal subject to derivative financial instruments: Precious metals forward contracts at market values 299,310 175,352 Precious metals futures contracts at market values 323,211 514,240 Total market value of derivative financial instruments 622,521 689,592 Net precious metals subject to commodity price risk $ 1,832 $ 1,518 |
Schedule of Outstanding Commitments and Open Forward and Future Contracts | As of March 31, 2022 and June 30, 2021, the Company had the following outstanding commitments and open forward and future contracts: in thousands March 31, June 30, Purchase commitments $ 950,825 $ 987,926 Sales commitments $ ( 861,977 ) $ ( 590,156 ) Margin sales commitments $ ( 12,639 ) $ ( 7,322 ) Open forward contracts $ 299,310 $ 175,352 Open futures contracts $ 323,211 $ 514,240 |
Schedule of Market Values of Denominated in Foreign Currencies Outstanding | The market values (fair values) of the Company’s foreign exchange forward contracts and the net open sale and purchase commitment transactions, denominated in foreign currencies, outstanding are as follows: in thousands March 31, June 30, Foreign exchange forward contracts $ 17,042 $ 6,541 Open sale and purchase commitment transactions, net $ 16,083 $ 4,311 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Net Income from Operations before Provision for Income Taxes | Net income from operations before provision for income taxes for the three and nine months ended March 31, 2022 and 2021 is shown below: in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, U.S. $ 45,919 $ 86,774 $ 119,380 $ 128,779 Foreign 2 6 26 18 $ 45,921 $ 86,780 $ 119,406 $ 128,797 |
Provision for Income Tax Expense by Jurisdiction and Effective Tax Rate | The provision for income tax expense by jurisdiction and the effective tax rate for the three and nine months ended March 31, 2022 and 2021 are shown below: in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Federal $ 7,579 $ 9,643 $ 21,066 $ 17,836 State and local 790 199 2,714 1,041 Foreign 6 5 17 67 Income tax expense $ 8,375 $ 9,847 $ 23,797 $ 18,944 Effective tax rate 18.2 % 11.3 % 19.9 % 14.7 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Receivable and Payables Balances | As of March 31, 2022 and June 30, 2021, the Company had related party receivables and payables balances as set forth below: in thousands March 31, 2022 June 30, 2021 Receivables Payables Receivables Payables Stack's Bowers Galleries $ — $ 6,085 (1) $ 3,576 (1) $ — Equity method investees 2,372 (2) 1,530 10,693 (2) 84 $ 2,372 $ 7,615 $ 14,269 $ 84 (1) Balance includes secured loan receivables and trade and other payables, net. (2) Balance primarily represents receivables, net (shown as components of receivables and derivative assets). |
Schedule of Sales and Purchases of Related Parties | During the three and nine months ended March 31, 2022 and 2021, the Company made sales and purchases to various companies, which have been deemed to be related parties, as follows: in thousands Three Months Ended Nine Months Ended March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Sales Purchases Sales Purchases Sales Purchases Sales Purchases Stack's Bowers Galleries $ 55,519 $ 12,569 $ 17,127 $ 11,731 $ 69,170 $ 41,879 $ 53,958 $ 48,066 Equity method investees 244,147 8,170 591,740 (1) 4,829 (1) 531,130 30,438 1,463,857 (1) 12,701 (1) SilverTowne L.P. — — 5,858 — — — 12,695 4,769 $ 299,666 $ 20,739 $ 614,725 $ 16,560 $ 600,300 $ 72,317 $ 1,530,510 $ 65,536 (1) Includes sales and purchases activity with JMB, which the Company fully acquired in March 2021. |
Schedule of Interest Income | During the three and nine months ended March 31, 2022 and 2021, the Company earned interest income related to loans made to Stack's Bowers and from financing arrangements (including repurchase agreements) with affiliated companies, as set forth below: in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Interest income from secured loans receivables $ 44 $ 44 $ 143 $ 197 Interest income from finance products and repurchase arrangements 1,576 2,173 5,537 5,980 $ 1,620 $ 2,217 $ 5,680 $ 6,177 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the nine months ended March 31, 2022. Options Weighted Aggregate Weighted Outstanding at June 30, 2021 1,159,028 $ 16.01 $ 35,343 $ 6.88 Exercises ( 223,508 ) $ 9.05 Outstanding at March 31, 2022 935,520 $ 15.25 $ 58,084 $ 6.99 Exercisable at March 31, 2022 527,198 $ 13.20 $ 33,814 $ 5.61 |
Summary of Status of Stock Option Outstanding | Following is a summary of the status of stock options outstanding as of March 31, 2022. Exercise Price Ranges Options Outstanding Options Exercisable From To Number of Weighted Weighted Number of Weighted Weighted $ — $ 10.00 438,597 6.87 $ 5.70 214,276 5.99 $ 6.31 $ 10.01 $ 15.00 110,923 4.76 $ 13.69 102,589 4.55 $ 13.96 $ 15.01 $ 25.00 231,667 4.42 $ 19.68 205,000 3.90 $ 19.55 $ 25.01 $ 60.00 154,333 8.94 $ 36.88 5,333 8.73 $ 31.55 935,520 6.35 $ 15.25 527,198 4.92 $ 13.20 |
Summary of Nonvested Stock Option Activity | The following table summarizes the nonvested stock option activity for the nine months ended March 31, 2022. Options Weighted Nonvested Outstanding at June 30, 2021 466,377 $ 8.52 Vested ( 58,055 ) $ 6.79 Nonvested Outstanding at March 31, 2022 408,322 $ 8.77 |
Summary of Restricted Stock Unit Activity | The following table summarizes the RSU activity for the nine months ended March 31, 2022: Awards Weighted Outstanding at June 30, 2021 12,721 $ 37.72 Shares granted 6,649 (1) $ 72.15 Outstanding at March 31, 2022 19,370 $ 49.54 Vested but subject to deferred settlement at March 31, 2022 — $ — (1) A required adjustment to certain outstanding RSUs was triggered as a result of the non-recurring special dividend declared on August 30, 2021. In accordance with the terms of the Company’s RSU agreements under which the RSUs were issued, the holders of the RSUs were entitled to credits equivalent to dividends that would have been paid had the RSUs had been outstanding shares as of the applicable record date. In the case of RSUs with terms not permitting crediting of dividend equivalents in cash, this event resulted in crediting of additional RSUs, increasing the number of RSUs by 55.848 RSUs as of the record date (September 20, 2021). |
Customer and Supplier Concent_2
Customer and Supplier Concentrations (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration of Risk, by Risk Factor | Customer Concentration No single customer provided 10 percent or more of the Company's revenues for three and nine months ended March 31, 2022. Customers providing 10 percent or more of the Company's accounts receivable as of March 31, 2022 are presented on a comparative basis (to June 30, 2021) in the table below. in thousands March 31, 2022 June 30, 2021 Amount Percent Amount Percent Total accounts receivable $ 65,636 100.0 % $ 89,000 100.0 % Customer concentrations Morgan Stanley $ 9,190 14.0 % $ — 0.0 % No single customer provided 10 percent or more of the Company's secured loan receivable balances as of March 31, 2022. |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Revenue in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Revenue by segment (1) Wholesale Sales & Ancillary Services $ 1,966,897 $ 2,017,120 $ 5,732,207 $ 5,347,951 Eliminations of inter-segment sales ( 447,857 ) ( 93,857 ) ( 1,306,411 ) ( 133,491 ) Wholesale Sales & Ancillary Services, net of eliminations (2) 1,519,040 1,923,263 4,425,796 5,214,460 Direct-to-Consumer 590,075 (a) 126,226 (b) 1,643,654 (c) 219,889 (d) $ 2,109,115 $ 2,049,489 $ 6,069,450 $ 5,434,349 (1) The Secured Lending segment earns interest income from its lending activity and earns no revenue from the sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table. (2) The eliminations of inter-segment sales are reflected in the Wholesale Sales & Ancillary Services segment. (a) Includes $ 0.4 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment. (b) Includes $ 0.9 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment. (c) Includes $ 2.0 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment. (d) Includes $ 7.8 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment. in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Revenue by geographic region (1) United States $ 1,256,092 $ 1,320,129 $ 3,631,974 $ 3,407,484 Europe 495,293 285,843 1,542,293 1,067,325 North America, excluding United States 342,392 394,562 850,681 867,437 Asia Pacific 9,592 17,514 34,586 43,649 Africa — — 17 — Australia 5,746 31,441 9,899 48,454 $ 2,109,115 $ 2,049,489 $ 6,069,450 $ 5,434,349 (1) Presentation of amounts realigned based on current accounting policy that defines geographic area based on the delivery or settlement location. The presentation change had no impact on the segments' operations or the Company's condensed consolidated results. Gross Profit and Gross Margin Percentage in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Gross profit by segment (1) Wholesale Sales & Ancillary Services $ 32,002 $ 51,529 $ 85,474 $ 95,327 Eliminations and adjustments ( 1,463 ) 34 ( 445 ) 103 Wholesale Sales & Ancillary Services, net of eliminations and adjustments 30,539 51,563 85,029 95,430 Direct-to-Consumer, net of eliminations 41,544 16,608 108,986 27,637 $ 72,083 $ 68,171 $ 194,015 $ 123,067 Gross margin percentage by segment Wholesale Sales & Ancillary Services 1.627 % 2.555 % 1.491 % 1.782 % Wholesale Sales & Ancillary Services, net of eliminations and adjustments 2.010 % 2.681 % 1.921 % 1.830 % Direct-to-Consumer 7.040 % 13.157 % 6.631 % 12.569 % Weighted average gross margin percentage 3.418 % 3.326 % 3.197 % 2.265 % (1) The Secured Lending segment earns interest income from its lending activity and earns no gross profit from the sales of precious metals. Therefore, no amounts are shown for the Secured Lending segment in the above table. Operating income and (expenses) in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Operating income (expense) by segment Wholesale Sales & Ancillary Services $ ( 9,963 ) $ 22,916 $ ( 24,485 ) $ 14,176 Eliminations ( 60 ) ( 45 ) ( 191 ) ( 114 ) Wholesale Sales & Ancillary Services, net of eliminations $ ( 10,023 ) $ 22,871 $ ( 24,676 ) $ 14,062 Wholesale Sales & Ancillary Services, net of eliminations Selling, general and administrative expenses $ ( 11,203 ) $ ( 9,859 ) $ ( 28,748 ) $ ( 23,727 ) Depreciation and amortization expense ( 214 ) ( 213 ) ( 673 ) ( 637 ) Interest income 2,300 2,554 7,952 7,490 Interest expense ( 2,379 ) ( 3,274 ) ( 7,396 ) ( 9,137 ) Earnings from equity method investments 1,608 7,410 4,317 13,898 Remeasurement gain on pre-existing equity interest — 26,306 — 26,306 Unrealized losses on foreign exchange ( 135 ) ( 53 ) ( 128 ) ( 131 ) $ ( 10,023 ) $ 22,871 $ ( 24,676 ) $ 14,062 Direct-to-Consumer Selling, general and administrative expenses $ ( 8,913 ) $ ( 2,644 ) $ ( 25,906 ) $ ( 5,982 ) Depreciation and amortization expense ( 7,245 ) ( 1,187 ) ( 23,140 ) ( 1,593 ) Interest expense ( 703 ) ( 45 ) ( 2,062 ) ( 45 ) Other expense, net ( 50 ) — ( 50 ) — $ ( 16,911 ) $ ( 3,876 ) $ ( 51,158 ) $ ( 7,620 ) Secured Lending Selling, general and administrative expenses $ ( 379 ) $ ( 792 ) $ ( 1,230 ) $ ( 1,619 ) Depreciation and amortization expense ( 88 ) ( 88 ) ( 264 ) ( 264 ) Interest income 3,043 2,170 8,173 5,750 Interest expense ( 2,347 ) ( 2,016 ) ( 6,839 ) ( 5,483 ) Other income, net 543 340 1,385 904 $ 772 $ ( 386 ) $ 1,225 $ ( 712 ) Net income before provision for income taxes in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Net income before provision for income taxes by segment Wholesale Sales & Ancillary Services $ 20,516 $ 74,434 $ 60,353 $ 109,492 Direct-to-Consumer 24,633 12,732 57,828 20,017 Secured Lending 772 ( 386 ) 1,225 ( 712 ) $ 45,921 $ 86,780 $ 119,406 $ 128,797 Advertising expense in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Advertising expense by segment Wholesale Sales & Ancillary Services $ ( 190 ) $ ( 74 ) $ ( 433 ) $ ( 217 ) Direct-to-Consumer ( 3,077 ) ( 821 ) ( 8,493 ) ( 1,932 ) Secured Lending ( 52 ) ( 63 ) ( 154 ) ( 131 ) $ ( 3,319 ) $ ( 958 ) $ ( 9,080 ) $ ( 2,280 ) Precious metals held under financing arrangements in thousands March 31, June 30, Precious metals held under financing arrangements by segment Wholesale Sales & Ancillary Services $ 87,450 $ 130,766 Secured Lending — 23,976 $ 87,450 $ 154,742 Inventories in thousands March 31, June 30, Inventories by segment Wholesale Sales & Ancillary Services $ 623,188 $ 402,418 Direct-to-Consumer 141,075 53,069 Secured Lending — 2,532 $ 764,263 $ 458,019 in thousands March 31, June 30, Inventories by geographic region United States $ 706,249 $ 431,732 North America, excluding United States 35,329 16,633 Europe 22,098 9,451 Asia 405 203 Australia 182 — $ 764,263 $ 458,019 Total Assets in thousands March 31, June 30, Assets by segment Wholesale Sales & Ancillary Services $ 968,591 $ 874,152 Eliminations ( 143,462 ) ( 163,850 ) Wholesale Sales & Ancillary Services, net of eliminations 825,129 710,302 Direct-to-Consumer 368,768 335,829 Secured Lending 152,686 145,450 $ 1,346,583 $ 1,191,581 in thousands March 31, June 30, Assets by geographic region United States $ 1,285,377 $ 1,162,195 North America, excluding United States 35,329 16,633 Europe 25,290 12,550 Asia 405 203 Australia 182 — $ 1,346,583 $ 1,191,581 Long-term Assets in thousands March 31, June 30, Long-term assets by segment Wholesale Sales & Ancillary Services $ 49,946 $ 36,174 Direct-to-Consumer 168,031 188,208 Secured Lending 2,710 2,972 $ 220,687 $ 227,354 in thousands March 31, June 30, Long-term assets by geographic region United States $ 220,685 $ 227,352 Europe 2 2 $ 220,687 $ 227,354 Capital Expenditures for Property, Plant, and Equipment in thousands Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Capital expenditures on property, plant, and equipment by segment Wholesale Sales & Ancillary Services $ 183 $ 411 $ 812 $ 1,335 Direct-to-Consumer 296 3 1,294 12 Secured Lending — — — 4 $ 479 $ 414 $ 2,106 $ 1,351 Goodwill and Intangible Assets in thousands March 31, June 30, Goodwill by segment Wholesale Sales & Ancillary Services $ 8,881 $ 8,881 Direct-to-Consumer (1) 92,062 92,062 $ 100,943 $ 100,943 (1) Direct-to-Consumer segment’s goodwill balance is net of $ 1.4 million accumulated impairment losses. Intangible assets in thousands March 31, June 30, Intangibles by segment Wholesale Sales & Ancillary Services $ 2,774 $ 2,831 Direct-to-Consumer (1) 67,942 90,802 $ 70,716 $ 93,633 (1) Direct-to-Consumer segment’s intangibles balance is net of $ 1.3 million accumulated impairment losses. |
Description of Business - Addit
Description of Business - Additional Information (Details) | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2021 | Mar. 31, 2022Reportable_segmentsCoin | Mar. 19, 2021 | |
Description Of Business [Line Items] | |||
Number of reportable segments | Reportable_segments | 3 | ||
Number of coins and bar products | Coin | 1,000 | ||
JMB | |||
Description Of Business [Line Items] | |||
Business acquisition, percentage of interests acquired | 79.50% | ||
Precious Metals Purchasing Partners, LLC | |||
Description Of Business [Line Items] | |||
Percentage of ownership percentage | 50.00% | ||
Collectible Card Partners, LLC | |||
Description Of Business [Line Items] | |||
Percentage of ownership percentage | 50.00% |
Description of Business - Sched
Description of Business - Schedule of Pro Forma Consolidated Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Revenue | $ 2,339,148 | $ 5,974,317 |
Net income | $ 80,673 | $ 131,717 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | ||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Notice period to terminate contract | 14 days | |||||
Precious metals held under financing arrangements | [1] | $ 87,450,000 | $ 87,450,000 | $ 154,742,000 | ||
Digital assets carrying amount | 200,000 | 200,000 | 0 | |||
Digital assets, net of cumulative write-downs | 100,000 | 100,000 | $ 0 | |||
Fair market value of digital assets held | 300,000 | 300,000 | ||||
Digital asset, write-downs | 100,000 | 100,000 | ||||
Realized gains related to sale of digital assets | 0 | $ 0 | $ 0 | $ 0 | ||
Metals purchase by customer maximum specified time period | 1 year | |||||
Metal delivers to customer after receiving customers deposit based on prevailing current spot price percentage | 110.00% | |||||
Unpriced metal is subject to margin call If deposit falls below percentage of value of unpriced metal | 105.00% | |||||
Percentage to remit partial payment of total order price | 20.00% | |||||
Amortization of debt issuance costs | 500,000 | 700,000 | $ 2,089,000 | 1,661,000 | ||
Advertising costs | 3,319,000 | 958,000 | 9,080,000 | 2,280,000 | ||
Cost of sales | $ 2,037,032,000 | $ 1,981,318,000 | $ 5,875,435,000 | $ 5,311,282,000 | ||
Common stock, shares outstanding | 11,514,010 | 11,136,233 | 11,514,010 | 11,136,233 | 11,229,657 | |
Change in accounting principle, accounting standards update, adopted [true false] | true | true | ||||
Change in accounting principle, accounting standards update, adoption date | Sep. 30, 2021 | Sep. 30, 2021 | ||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | ||||
Accounting standards update description | ASU 2019-12 | |||||
Shipping and Handling | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cost of sales | $ 6,800,000 | $ 5,300,000 | $ 18,900,000 | $ 10,300,000 | ||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of related assets | 3 years | |||||
Estimated useful lives of intangibles | 1 year | |||||
Percentage of investments in privately-held entities accounted under equity method | 20.00% | 20.00% | ||||
Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of related assets | 25 years | |||||
Estimated useful lives of intangibles | 15 years | |||||
Percentage of investments in privately-held entities accounted under equity method | 50.00% | 50.00% | ||||
Customer locks period for purchase price | 2 years | |||||
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Shares Used in Calculating Basic and Diluted Earnings per Common Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 11,429,800 | 8,028,900 | 11,356,400 | 7,403,900 |
Effect of common stock equivalents — stock issuable under outstanding equity awards | 783,000 | 639,000 | 782,000 | 577,000 |
Diluted weighted average shares outstanding | 12,212,900 | 8,668,300 | 12,137,600 | 7,980,700 |
Assets and Liabilities, at Fa_3
Assets and Liabilities, at Fair Value - Schedule of Carrying Amounts and Estimated Fair Value of Fixed-Rate Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 93,859 | $ 93,249 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 96,047 | $ 100,724 |
Assets and Liabilities, at Fa_4
Assets and Liabilities, at Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 25,973 | $ 44,536 |
Derivative liabilities | 24,783 | 7,539 |
Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 763,155 | 457,613 |
Precious metals held under financing arrangements | 87,450 | 154,742 |
Total assets, valued at fair value | 876,578 | 656,891 |
Liabilities on borrowed metals | 67,824 | 91,866 |
Product financing arrangements | 199,447 | 201,028 |
Total liabilities, valued at fair value | 292,054 | 300,433 |
Fair Value on a Recurring Basis | Open sale and purchase commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2,522 | 243 |
Fair Value on a Recurring Basis | Liability on margin accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 4,081 | 2,806 |
Fair Value on a Recurring Basis | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,260 | 465 |
Fair Value on a Recurring Basis | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 16,920 | 4,025 |
Fair Value on a Recurring Basis | Open sale and purchase commitments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 25,389 | 38,340 |
Fair Value on a Recurring Basis | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 138 | 4,510 |
Fair Value on a Recurring Basis | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 446 | 1,686 |
Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 763,155 | 457,613 |
Precious metals held under financing arrangements | 87,450 | 154,742 |
Total assets, valued at fair value | 876,578 | 656,891 |
Liabilities on borrowed metals | 67,824 | 91,866 |
Product financing arrangements | 199,447 | 201,028 |
Total liabilities, valued at fair value | 292,054 | 300,433 |
Fair Value on a Recurring Basis | Level 1 | Open sale and purchase commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2,522 | 243 |
Fair Value on a Recurring Basis | Level 1 | Liability on margin accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 4,081 | 2,806 |
Fair Value on a Recurring Basis | Level 1 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1,260 | 465 |
Fair Value on a Recurring Basis | Level 1 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 16,920 | 4,025 |
Fair Value on a Recurring Basis | Level 1 | Open sale and purchase commitments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 25,389 | 38,340 |
Fair Value on a Recurring Basis | Level 1 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 138 | 4,510 |
Fair Value on a Recurring Basis | Level 1 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 446 | 1,686 |
Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 0 | 0 |
Precious metals held under financing arrangements | 0 | 0 |
Total assets, valued at fair value | 0 | 0 |
Liabilities on borrowed metals | 0 | 0 |
Product financing arrangements | 0 | 0 |
Total liabilities, valued at fair value | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Open sale and purchase commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Liability on margin accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Open sale and purchase commitments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 2 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 0 | 0 |
Precious metals held under financing arrangements | 0 | 0 |
Total assets, valued at fair value | 0 | 0 |
Liabilities on borrowed metals | 0 | 0 |
Product financing arrangements | 0 | 0 |
Total liabilities, valued at fair value | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Open sale and purchase commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Liability on margin accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Open sale and purchase commitments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value on a Recurring Basis | Level 3 | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
Assets and Liabilities, at Fa_5
Assets and Liabilities, at Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Fair Value Disclosures [Abstract] | ||
Commemorative coin inventory, held at lower of cost or net realizable value | $ 1,108 | $ 406 |
Assets and Liabilities, at Fa_6
Assets and Liabilities, at Fair Value - Additional Information (Details) $ in Millions | Mar. 31, 2022USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Carrying amounts digital assets | $ 0.2 |
Estimated fair values of digital assets | $ 0.3 |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | $ 65,636 | $ 89,000 |
Customer Trade Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | 22,539 | 12,197 |
Wholesale Trade Advances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | 24,156 | 26,959 |
Due from Brokers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | $ 18,941 | $ 49,844 |
Secured Loans Receivable - Summ
Secured Loans Receivable - Summary of Carrying-value of Secured Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | [1] | $ 145,838 | $ 112,968 |
Secured Loans Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | 43,884 | 36,080 | |
Secured Loans Originated - With a Related Party | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | 7,034 | 3,042 | |
Financial Asset Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | 50,918 | 39,122 | |
Secured Loans Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | $ 94,920 | $ 73,846 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Secured Loans Receivable - Addi
Secured Loans Receivable - Additional Information (Details) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)Loan | Jun. 30, 2021USD ($)Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable average effective rate of interest (percentage) | 8.90% | 8.90% | |
Loan collateral values updated period frequency | 90 days | ||
Loans receivable payment terms for interest | 180 days | ||
Loan receivable liquidation period post default | 20 days | ||
Loans with loan-to-value | [1] | $ 145,838,000 | $ 112,968,000 |
Non-Performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | Loan | 0 | 0 | |
Non-Accrual Status | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan impairment costs | $ 0 | $ 0 | |
Loan-to-value Ratio in Excess of 100% | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans with loan-to-value | $ 0 | $ 0 | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of loan balance outstanding | 85.00% | ||
Bullion | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of Loan-to-value ratio | 75.00% | ||
Graded Sports Memorabilia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of Loan-to-value ratio | 50.00% | ||
Numismatic and Semi-numismatic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of Loan-to-value ratio | 65.00% | ||
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Secured Loans Receivable - Sche
Secured Loans Receivable - Schedule of Classes for Financing Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans | $ 145,838 | $ 112,968 |
Secured loan, percentage | 100.00% | 100.00% |
Bullion | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans | $ 108,253 | $ 88,332 |
Secured loan, percentage | 74.20% | 78.20% |
Numismatic and Semi-numismatic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans | $ 36,303 | $ 24,636 |
Secured loan, percentage | 24.90% | 21.80% |
Graded Sports Memorabilia | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans | $ 1,282 | |
Secured loan, percentage | 0.90% | 0.00% |
Secured Loans Receivable - Sc_2
Secured Loans Receivable - Schedule of Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans (current) | [1] | $ 145,838 | $ 112,968 |
Bullion and Numismatic and Semi-numismatic and Graded Sports Memorabilia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans (current) | $ 145,838 | $ 112,968 | |
Secured loans (current), percentage | 100.00% | 100.00% | |
Loan-to-value of 75% or More | Bullion and Numismatic and Semi-numismatic and Graded Sports Memorabilia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans (current) | $ 40,766 | $ 16,366 | |
Secured loans (current), percentage | 28.00% | 14.50% | |
Loan-to-value of Less than 75% | Bullion and Numismatic and Semi-numismatic and Graded Sports Memorabilia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans (current) | $ 105,072 | $ 96,602 | |
Secured loans (current), percentage | 72.00% | 85.50% | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Inventories - Summary of Invent
Inventories - Summary of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | |
Inventory [Line Items] | |||
Inventories | [1] | $ 564,816 | $ 256,991 |
Restricted inventories | 199,447 | 201,028 | |
Restricted and nonrestricted inventory, net | 764,263 | 458,019 | |
Inventory held for Sale | |||
Inventory [Line Items] | |||
Inventories | 435,343 | 159,319 | |
Repurchase Arrangements with Customers | |||
Inventory [Line Items] | |||
Inventories | 105,196 | 75,063 | |
Consignment Arrangements with Customers | |||
Inventory [Line Items] | |||
Inventories | 1,001 | 1,327 | |
Commemorative Coins, Held at Lower of Cost or Net Realizable Value | |||
Inventory [Line Items] | |||
Inventories | 1,108 | 406 | |
Borrowed Precious Metals | |||
Inventory [Line Items] | |||
Inventories | 22,168 | 20,876 | |
Product Financing Arrangements, Restricted | |||
Inventory [Line Items] | |||
Restricted inventories | $ 199,447 | $ 201,028 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | ||
Inventory [Line Items] | |||
Inventory held for sale | [1] | $ 564,816 | $ 256,991 |
Precious metals inventory subject to repurchase arrangements | 105,200 | 75,100 | |
Consignment arrangements with customers | 1,000 | 1,300 | |
Commemorative coin inventory, held at lower of cost or net realizable value | 1,108 | 406 | |
Product financing arrangement, restricted | 199,400 | 201,000 | |
Unrealized gains (losses) included in inventory balance | 12,600 | (5,600) | |
Premium on metals position | 20,353 | 11,017 | |
Inventories | |||
Inventory [Line Items] | |||
Borrowed precious metals from suppliers | 22,100 | 20,900 | |
Inventory held for Sale | |||
Inventory [Line Items] | |||
Inventory held for sale | $ 435,343 | $ 159,319 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||
Operating lease right of use assets | $ 6,774 | $ 5,702 |
Operating lease payments | $ 1,400 | |
Operating lease term (in years) | 5 years 7 months 6 days | |
Operating lease (percent) | 4.90% |
Leases - Components of Operatin
Leases - Components of Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Lease, Cost [Abstract] | ||||
Operating lease costs | $ 347 | $ 361 | $ 1,181 | $ 1,060 |
Variable lease costs | 143 | 67 | 379 | 217 |
Short term lease costs | 23 | 21 | 70 | 73 |
Finance lease costs | 6 | 5 | 16 | 16 |
Total lease costs, net | $ 519 | $ 454 | $ 1,646 | $ 1,366 |
Leases - Schedule of Future Und
Leases - Schedule of Future Undiscounted Cash Flows for Each of Next Five Years and Thereafter and Reconciliation to Lease Liabilities (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 (3 months remaining) | $ 380 |
2023 | 1,646 |
2024 | 1,692 |
2025 | 1,669 |
2026 | 1,244 |
Thereafter | 2,102 |
Total lease payments | 8,733 |
Imputed interest | (1,159) |
Total present value of lease liabilities | 7,574 |
Operating lease liability - current | $ 1,270 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts Payable And Other Payables |
Operating lease liability - long-term | $ 6,304 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent |
Operating lease liability | $ 7,574 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 19,322 | $ 17,878 |
Less: Accumulated depreciation and amortization | (11,461) | (10,714) |
Property, plant, and equipment, net | 9,542 | 8,609 |
Office Furniture, and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,177 | 2,373 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,222 | 1,069 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,267 | 5,387 |
Plant Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,135 | 5,535 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 509 | 505 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,012 | 3,009 |
Property and Equipment not Placed in Service | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | 1,645 | 1,409 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, net | $ 36 | $ 36 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 0.4 | $ 0.3 | $ 1.2 | $ 1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Aug. 31, 2017 | Aug. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill | $ 100,943 | $ 100,943 | $ 100,943 | |||||
Amortization expense related to intangible assets | $ 7,200 | $ 1,100 | $ 22,900 | $ 1,500 | ||||
Goodwill and intangible asset impairment | $ 2,700 | |||||||
Minimum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Percentage of investments in privately-held entities accounted under equity method | 20.00% | 20.00% | ||||||
Estimated useful lives of intangibles | 1 year | |||||||
Maximum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Percentage of investments in privately-held entities accounted under equity method | 50.00% | 50.00% | ||||||
Estimated useful lives of intangibles | 15 years | |||||||
SilverTowne Mint | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangibles acquired | $ 2,500 | |||||||
Goodwill | $ 4,300 | |||||||
Goldline, LLC | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangibles acquired | $ 5,000 | |||||||
Goodwill | $ 1,400 | |||||||
JMB | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangibles acquired | 98,000 | 98,000 | ||||||
Goodwill | $ 92,100 | $ 92,100 | ||||||
Percentage of investments in privately-held entities accounted under equity method | 20.50% | 20.50% | ||||||
JMB | A Mark Precious Metals, Inc | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Percentage of ownership owned by parent | 100.00% | 100.00% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Carrying Value of Goodwill and Other Purchased Intangibles (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 114,047 | $ 114,047 |
Accumulated Amortization | (42,041) | (19,124) |
Accumulated Impairment | (1,290) | (1,290) |
Net Book Value | 70,716 | 93,633 |
Goodwill Gross | 102,307 | 102,307 |
Goodwill Impaired Accumulated Impairment Loss | (1,364) | (1,364) |
Goodwill | 100,943 | 100,943 |
Trade Names and Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 47,454 | 47,454 |
Accumulated Impairment | (1,290) | (1,290) |
Indefinite Lived Intangible Assets Excluding Goodwill Net of Accumulated Impairment | $ 46,164 | 46,164 |
Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 1 year | |
Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 15 years | |
Customer Relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period (Years) | 3 years 1 month 6 days | |
Gross Carrying Amount | $ 53,498 | 53,498 |
Accumulated Amortization | (36,736) | (15,832) |
Net Book Value | $ 16,762 | 37,666 |
Customer Relationships | Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 5 years | |
Customer Relationships | Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 15 years | |
Developed Technology | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 4 years | |
Remaining Weighted Average Amortization Period (Years) | 3 years | |
Gross Carrying Amount | $ 10,500 | 10,500 |
Accumulated Amortization | (2,710) | (741) |
Net Book Value | $ 7,790 | 9,759 |
Non-compete and other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period (Years) | 0 years | |
Gross Carrying Amount | $ 2,300 | 2,300 |
Accumulated Amortization | $ (2,300) | (2,256) |
Net Book Value | 44 | |
Non-compete and other | Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 3 years | |
Non-compete and other | Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 5 years | |
Employment agreement | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period (Years) | 0 years | |
Gross Carrying Amount | $ 295 | 295 |
Accumulated Amortization | $ (295) | (295) |
Employment agreement | Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 1 year | |
Employment agreement | Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 3 years | |
Intangibles subject to amortization | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 66,593 | 66,593 |
Accumulated Amortization | (42,041) | (19,124) |
Net Book Value | $ 24,552 | $ 47,469 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Annual Amortization Expense Related to Definite-Lived Intangible Assets (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 (3 months remaining) | $ 2,752 |
2023 | 9,893 |
2024 | 7,382 |
2025 | 4,240 |
2026 | 47 |
Thereafter | 238 |
Estimated annual amortization expense | $ 24,552 |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) | Mar. 31, 2022Investment |
Long-term Investments [Abstract] | |
Number of investments | 5 |
Long-Term Investments - Schedul
Long-Term Investments - Schedule of Carrying Value and Ownership Percentage of Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Carrying Value | $ 32,300 | $ 18,200 |
Carrying Value | 32,511 | 18,467 |
Company A | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Carrying Value | $ 4,579 | $ 3,795 |
Ownership Percentage | 7.40% | 7.40% |
Company C | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Carrying Value | $ 13,220 | $ 1,940 |
Ownership Percentage | 49.00% | 10.00% |
Company D | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Carrying Value | $ 12,477 | $ 10,499 |
Ownership Percentage | 44.90% | 44.90% |
Company F | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Carrying Value | $ 2,002 | $ 2,000 |
Ownership Percentage | 50.00% | 50.00% |
Company E | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Carrying Value | $ 233 | $ 233 |
Ownership Percentage | 33.30% | 33.30% |
Long-Term Investments - Sched_2
Long-Term Investments - Schedule of Carrying Value and Ownership Percentage of Investment (Parenthetical) (Details) - Company C $ in Thousands | Aug. 27, 2021USD ($)shares |
Schedule Of Equity Method Investments [Line Items] | |
Ownership interest percentage before transaction | 10.00% |
Ownership interest percentage after transaction | 49.00% |
Purchase price of agreement | $ 9,750 |
Purchase price of cash | $ 6,750 |
Common stock issued shares, acquisitions | shares | 61,590 |
Acquisition date | Aug. 27, 2021 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities - Schedule of Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Accounts Payable And Other Current Liabilities [Abstract] | ||
Trade payables to customers | $ 21,827 | $ 1,561 |
Other accounts payable | 4,348 | 4,374 |
Trade payables and other payables | 26,175 | 5,935 |
Deferred revenue | 30,974 | 20,508 |
Advances from customers | 162,107 | 173,908 |
Deferred revenue and advances from customers | $ 193,081 | $ 194,416 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||||
Derivative open positions expected settlement period | 2 days | |||
Unrealized losses on foreign exchange | $ (135) | $ (53) | $ (128) | $ (131) |
Futures And Forward Contract | ||||
Derivative [Line Items] | ||||
Derivative open positions expected settlement period | 30 days |
Derivative Instruments and He_4
Derivative Instruments and Hedging Transactions - Summary of Aggregate Gross and Net Derivative Receivables and Payables Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Nettable derivative assets: | ||
Gross derivative receivable | $ 41,867 | $ 63,119 |
Amounts Netted | (15,894) | (18,583) |
Cash Collateral Pledge | 0 | 0 |
Net Derivative | 25,973 | 44,536 |
Nettable derivative liabilities: | ||
Gross derivative payable | 34,416 | 13,222 |
Amounts Netted | (1,075) | (1,167) |
Cash Collateral Pledge | (8,558) | (4,516) |
Net derivative payables | 24,783 | 7,539 |
Open sale and purchase commitments | ||
Nettable derivative assets: | ||
Gross derivative receivable | 41,283 | 56,923 |
Amounts Netted | (15,894) | (18,583) |
Cash Collateral Pledge | 0 | 0 |
Net Derivative | 25,389 | 38,340 |
Nettable derivative liabilities: | ||
Gross derivative payable | 3,597 | 1,410 |
Amounts Netted | (1,075) | (1,167) |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | 2,522 | 243 |
Liability on margin accounts | ||
Nettable derivative liabilities: | ||
Gross derivative payable | 12,639 | 7,322 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | (8,558) | (4,516) |
Net derivative payables | 4,081 | 2,806 |
Future contracts | ||
Nettable derivative assets: | ||
Gross derivative receivable | 138 | 4,510 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net Derivative | 138 | 4,510 |
Nettable derivative liabilities: | ||
Gross derivative payable | 1,260 | 465 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | 1,260 | 465 |
Forward contracts | ||
Nettable derivative assets: | ||
Gross derivative receivable | 446 | 1,686 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net Derivative | 446 | 1,686 |
Nettable derivative liabilities: | ||
Gross derivative payable | 16,920 | 4,025 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | $ 16,920 | $ 4,025 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Transactions - Summary of Net Gains (Losses) on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||||
Gains (losses) on derivative instruments: | $ 6,954 | $ 4,119 | $ (8,339) | $ (117,578) |
Future commodity and forward contracts | ||||
Derivative [Line Items] | ||||
Unrealized gains (losses) on open future commodity and forward contracts and open sale and purchase commitments, net | 23,411 | 42,390 | (34,694) | 28,115 |
Commodity Contract | ||||
Derivative [Line Items] | ||||
Realized (losses) gains on future commodity contracts, net | $ (16,457) | $ (38,271) | $ 26,355 | $ (145,693) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Transactions - Summary of Hedging Activities Shows Precious Metal Commodity Inventory Position Net of Open Sale and Purchase Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Inventories | $ 764,263 | $ 458,019 | |
Precious metals held under financing arrangements | [1] | 87,450 | 154,742 |
Inventory and precious metals held under financing arrangements | 851,713 | 612,761 | |
Commemorative coin inventory, held at lower of cost or net realizable value | (1,108) | (406) | |
Premium on metals position | (20,353) | (11,017) | |
Precious metal value not hedged | (21,461) | (11,423) | |
Subtotal | 830,252 | 601,338 | |
Commitments at market: | |||
Open inventory purchase commitments | 950,825 | 987,926 | |
Open inventory sales commitments | (861,977) | (590,156) | |
Margin sale commitments | (12,639) | (7,322) | |
In-transit inventory no longer subject to market risk | (23,965) | (16,707) | |
Unhedgeable premiums on open commitment positions | 9,073 | 8,638 | |
Borrowed precious metals | (67,824) | (91,866) | |
Product financing arrangements | (199,447) | (201,028) | |
Advances on industrial metals | 55 | 287 | |
Commitments at market | (205,899) | 89,772 | |
Precious metal subject to price risk | 624,353 | 691,110 | |
Precious metal subject to derivative financial instruments: | |||
Market value of derivative financial instruments | 622,521 | 689,592 | |
Net precious metals subject to commodity price risk | 1,832 | 1,518 | |
Precious metals forward contracts at market values | |||
Precious metal subject to derivative financial instruments: | |||
Market value of derivative financial instruments | 299,310 | 175,352 | |
Precious metals futures contracts at market values | |||
Precious metal subject to derivative financial instruments: | |||
Market value of derivative financial instruments | $ 323,211 | $ 514,240 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Derivative Instruments and He_7
Derivative Instruments and Hedging Transactions - Schedule of Outstanding Commitments and Open Forward and Future Contracts (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Derivative [Line Items] | ||
Purchase commitments | $ 950,825 | $ 987,926 |
Sales commitments | (861,977) | (590,156) |
Margin sales commitments | (12,639) | (7,322) |
Open derivative contracts | 622,521 | 689,592 |
Forward contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | 299,310 | 175,352 |
Future contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | $ 323,211 | $ 514,240 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Transactions - Schedule of Market Values of Denominated in Foreign Currencies Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Fair value of derivatives | $ 17,042 | $ 6,541 |
Forward contracts | ||
Derivative [Line Items] | ||
Fair value of derivatives | $ 16,083 | $ 4,311 |
Income Taxes - Net Income from
Income Taxes - Net Income from Operations before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
U.S. | $ 45,919 | $ 86,774 | $ 119,380 | $ 128,779 |
Foreign | 2 | 6 | 26 | 18 |
Net income before provision for income taxes | $ 45,921 | $ 86,780 | $ 119,406 | $ 128,797 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense by Jurisdiction and Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Federal | $ 7,579 | $ 9,643 | $ 21,066 | $ 17,836 |
State and local | 790 | 199 | 2,714 | 1,041 |
Foreign | 6 | 5 | 17 | 67 |
Income tax expense | $ 8,375 | $ 9,847 | $ 23,797 | $ 18,944 |
Effective tax rate | 18.20% | 11.30% | 19.90% | 14.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Income Tax Examination [Line Items] | |||||
Tax rate (in percentage) | 18.20% | 11.30% | 19.90% | 14.70% | |
Income tax payable | $ 268 | $ 268 | $ 5,016 | ||
Deferred tax liabilities | 14,951 | 14,951 | 19,514 | ||
Tax effected | 900 | 900 | 900 | ||
State and Local Jurisdiction | |||||
Income Tax Examination [Line Items] | |||||
Deferred tax liabilities | 1,200 | 1,200 | 1,700 | ||
Operating loss carryforwards | 12,200 | 12,200 | 12,200 | ||
U.S. | |||||
Income Tax Examination [Line Items] | |||||
Deferred tax liabilities | $ 13,800 | $ 13,800 | $ 17,800 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022USD ($)Investment | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)Investment | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) | |
Related Party Transaction [Line Items] | |||||
Number of investments | Investment | 5 | 5 | |||
Carrying Value | $ 32,300,000 | $ 32,300,000 | $ 18,200,000 | ||
Earnings from equity method investments | 1,608,000 | $ 7,410,000 | 4,317,000 | $ 13,898,000 | |
Interest income | 500,000 | $ 300,000 | 1,400,000 | $ 900,000 | |
March 1, 2018 Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Maximum borrowing capacity available | $ 10,000,000 | $ 10,000,000 | |||
Participation interest, percentage of net profits realized on sale | 10.00% | 10.00% | |||
March 4, 2022 Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Maximum borrowing capacity available | $ 3,000,000 | $ 3,000,000 | |||
Equity method investee | |||||
Related Party Transaction [Line Items] | |||||
Number of investments | Investment | 4 | 4 | |||
Stack's Bowers Galleries | March 1, 2018 Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Short term loan receivable | $ 5,000,000 | $ 5,000,000 | $ 3,000,000 | ||
Stack's Bowers Galleries | March 4, 2022 Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Short term loan receivable | $ 2,000,000 | $ 2,000,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Receivable and Payables Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Receivables | $ 2,372 | $ 14,269 |
Payables | 7,615 | 84 |
Stack's Bowers Galleries | ||
Related Party Transaction [Line Items] | ||
Receivables | 3,576 | |
Payables | 6,085 | |
Equity method investee | ||
Related Party Transaction [Line Items] | ||
Receivables | 2,372 | 10,693 |
Payables | $ 1,530 | $ 84 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Sales and Purchases of Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Sales | $ 299,666 | $ 614,725 | $ 600,300 | $ 1,530,510 |
Purchases | 20,739 | 16,560 | 72,317 | 65,536 |
Stack's Bowers Galleries | ||||
Related Party Transaction [Line Items] | ||||
Sales | 55,519 | 17,127 | 69,170 | 53,958 |
Purchases | 12,569 | 11,731 | 41,879 | 48,066 |
Equity method investee | ||||
Related Party Transaction [Line Items] | ||||
Sales | 244,147 | 591,740 | 531,130 | 1,463,857 |
Purchases | $ 8,170 | 4,829 | $ 30,438 | 12,701 |
SilverTowne L.P. | ||||
Related Party Transaction [Line Items] | ||||
Sales | $ 5,858 | 12,695 | ||
Purchases | $ 4,769 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Interest income | $ 500 | $ 300 | $ 1,400 | $ 900 |
Affiliated entities | ||||
Related Party Transaction [Line Items] | ||||
Interest income | 1,620 | 2,217 | 5,680 | 6,177 |
Affiliated entities | Interest income from secured loans receivables | ||||
Related Party Transaction [Line Items] | ||||
Interest income | 44 | 44 | 143 | 197 |
Affiliated entities | Interest income from finance products and repurchase arrangements | ||||
Related Party Transaction [Line Items] | ||||
Interest income | $ 1,576 | $ 2,173 | $ 5,537 | $ 5,980 |
Financing Agreements - Lines of
Financing Agreements - Lines of Credit - Additional Information (Details) - Trading Credit Facility - Line of Credit - USD ($) | Dec. 21, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||||||
Line of credit facility term | 3 years | |||||
Line of credit, termination date | Dec. 21, 2024 | |||||
Stated interest rate (in percentage) | 2.70% | 2.70% | ||||
Accumulated amortization of loan cost | $ 3,600,000 | $ 3,600,000 | $ 900,000 | |||
Variable rate basis | daily SOFR rate | |||||
Credit facility, interest rate at period end | 0.29% | 0.29% | ||||
Borrowings due on demand | $ 255,000,000 | $ 255,000,000 | 185,000,000 | |||
Borrowings available | 95,000,000 | 95,000,000 | $ 65,400,000 | |||
Interest expense | $ 1,900,000 | $ 2,000,000 | $ 6,200,000 | $ 5,600,000 | ||
Percentage of total expense recognized | 34.70% | 38.20% | 37.90% | 38.20% | ||
Effective rate of interest | 3.18% | 3.82% | 3.42% | 3.66% | ||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, current borrowing capacity | $ 350,000,000 | |||||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Lender holding percentage of revolving commitments | 66.67% | |||||
SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin of basis points | 2.36% |
Financing Agreements - Notes Pa
Financing Agreements - Notes Payable - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Variable Interest Entity, Primary Beneficiary | |||||
Debt Instrument [Line Items] | |||||
Financing receivable | $ 5,000,000 | $ 5,000,000 | |||
AM Capital Funding, LLC. | |||||
Debt Instrument [Line Items] | |||||
Financing receivable | $ 5,000,000 | ||||
Unamortized discount | $ 1,100,000 | $ 1,100,000 | |||
Percentage of total expense recognized | 26.70% | 26.70% | 26.60% | 29.10% | |
AM Capital Funding, LLC. | Variable Interest Entity, Primary Beneficiary | |||||
Debt Instrument [Line Items] | |||||
Notes payable | $ 93,900,000 | $ 93,900,000 | |||
Interest payable | 200,000 | $ 200,000 | |||
Debt instrument, aggregate interest rate (percentage) | 5.26% | ||||
Interest expense | $ 1,500,000 | $ 1,400,000 | $ 4,300,000 | $ 4,300,000 | |
AM Capital Funding, LLC. | Secured Senior Term Notes, Series 2018-1, Class B | |||||
Debt Instrument [Line Items] | |||||
Financing receivable | $ 5,000,000 | ||||
AM Capital Funding, LLC. | Senior Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Dec. 15, 2023 | ||||
Weighted average effective interest rate (in percentage) | 5.88% | 5.88% | 5.88% | 5.88% | |
AM Capital Funding, LLC. | Senior Subordinated Notes | Secured Senior Term Notes, Series 2018-1, Class A | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 72,000,000 | $ 72,000,000 | $ 72,000,000 | ||
Stated interest rate (in percentage) | 4.98% | 4.98% | 4.98% | ||
AM Capital Funding, LLC. | Senior Subordinated Notes | Secured Senior Term Notes, Series 2018-1, Class B | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 28,000,000 | $ 28,000,000 | $ 28,000,000 | ||
Stated interest rate (in percentage) | 5.98% | 5.98% | 5.98% |
Financing Agreements - Liabilit
Financing Agreements - Liability on Borrowed Metals - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Liabilities On Borrowed Metals [Line Items] | |||||
Liabilities on borrowed metals | $ 67,824 | $ 67,824 | $ 91,866 | ||
Liabilities on Borrowed Metals | |||||
Liabilities On Borrowed Metals [Line Items] | |||||
Interest expense | $ 400 | $ 300 | $ 900 | $ 1,200 | |
Percentage of total expense recognized | 6.40% | 6.20% | 5.80% | 8.50% | |
Precious Metals Held Under Financing Arrangements | |||||
Liabilities On Borrowed Metals [Line Items] | |||||
Borrowed precious metals from suppliers | $ 45,700 | $ 45,700 | 71,000 | ||
Inventories | |||||
Liabilities On Borrowed Metals [Line Items] | |||||
Borrowed precious metals from suppliers | $ 22,100 | $ 22,100 | $ 20,900 |
Financing Agreements - Product
Financing Agreements - Product Financing Arrangements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||||
Product financing arrangements | $ 199,447 | $ 199,447 | $ 201,028 | ||
Third Party Product Financing Arrangements | |||||
Debt Instrument [Line Items] | |||||
Interest expense | $ 1,100 | $ 1,100 | $ 3,100 | $ 2,500 | |
Percentage of total expense recognized | 20.80% | 20.70% | 19.30% | 16.70% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Sep. 24, 2021 | Sep. 20, 2021 | Aug. 30, 2021 | Aug. 27, 2021 | Mar. 04, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Apr. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Sale of equity | $ 150,000,000 | ||||||||||||||
Remaining securities available for issuance | $ 69,500,000 | ||||||||||||||
Number of shares authorized to be repurchased (in shares) | 500,000 | ||||||||||||||
Number of shares repurchased (in shares) | 0 | 0 | |||||||||||||
Dividends declared, date | Aug. 30, 2021 | ||||||||||||||
Dividends declared, per common share | $ 2 | $ 2 | $ 1.50 | $ 1.50 | |||||||||||
Dividend, record date | Sep. 20, 2021 | ||||||||||||||
Dividends paid | $ 22,600,000 | ||||||||||||||
New awards grants, expiration date | Nov. 2, 2027 | ||||||||||||||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $ 2,200,000 | $ 2,200,000 | |||||||||||||
Decrease in exercise price of each stock option | $ 2 | ||||||||||||||
Incremental stock-based compensation | $ 0 | ||||||||||||||
Stock options outstanding | 935,520 | 935,520 | 1,159,028 | ||||||||||||
Assumed awards converted stock options | 31,548 | 31,548 | |||||||||||||
Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based payment arrangement, expense | $ 300,000 | $ 300,000 | $ 1,000,000 | $ 700,000 | |||||||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 1 year 7 months 6 days | ||||||||||||||
Restricted Stock Units | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based payment arrangement, expense | 200,000 | $ 0 | $ 600,000 | $ 0 | |||||||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 7 months 6 days | ||||||||||||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized | $ 200,000 | $ 200,000 | |||||||||||||
Awards outstanding | 19,370 | 19,370 | 12,721 | ||||||||||||
2014 Stock Award and Incentive Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares granted under the plan (shares) | 314,877 | 314,877 | |||||||||||||
Expiration period (in years) | 10 years | ||||||||||||||
Maximum amount of shares per employee (shares) | 250,000 | ||||||||||||||
Stock options outstanding | 935,520 | 935,520 | |||||||||||||
2014 Stock Award and Incentive Plan | Restricted Stock Units | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Awards outstanding | 19,370 | 19,370 | |||||||||||||
2014 Stock Award and Incentive Plan | Director | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Maximum grant date fair value | $ 300,000 | ||||||||||||||
2014 Stock Award and Incentive Plan | Non-employee Chairman of Board | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Maximum grant date fair value | $ 600,000 | ||||||||||||||
Company C | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Common stock issued shares, acquisitions | 61,590 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Mar. 31, 2022USD ($)$ / sharesshares | Jun. 30, 2021USD ($)$ / shares | |
Options | ||
Options Outstanding, beginning balance | shares | 1,159,028 | |
Options, Exercises | shares | (223,508) | |
Options Outstanding, ending balance | shares | 935,520 | |
Options, Exercisable at March 31, 2022 | shares | 527,198 | |
Weighted Average Exercise Price Per Share | ||
Weighted Average Exercise Price Per Share, Outstanding beginning balance | $ 16.01 | |
Weighted Average Exercise Price Per Share, Exercises | 9.05 | |
Weighted Average Exercise Price Per Share, Outstanding ending balance | 15.25 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 13.20 | |
Aggregate Intrinsic Value, Balance | $ | $ 58,084 | $ 35,343 |
Aggregate Intrinsic Value, Exercisable | $ | $ 33,814 | |
Weighted Average Grant Date Fair Value Per Award, Outstanding | $ 6.99 | $ 6.88 |
Weighted Average Grant Date Fair Value Per Award, Exercisable | $ 5.61 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Status of Stock Option Outstanding (Details) - $ / shares | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Stock options outstanding, Number of Shares Outstanding (shares) | 935,520 | 1,159,028 |
Stock options outstanding, Weighted Average Remaining Contractual Life | 6 years 4 months 6 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.25 | $ 16.01 |
Stock options exercisable, Number of Shares Exercisable (shares) | 527,198 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 4 years 11 months 1 day | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 13.20 | |
Price Range $0 - $10.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price Ranges, lower range limit (in dollars per share) | 0 | |
Exercise Price Ranges, upper range limit (in dollars per share) | $ 10 | |
Stock options outstanding, Number of Shares Outstanding (shares) | 438,597 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 6 years 10 months 13 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.70 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 214,276 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 5 years 11 months 26 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 6.31 | |
Price Range $10.01 - $15.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price Ranges, lower range limit (in dollars per share) | 10.01 | |
Exercise Price Ranges, upper range limit (in dollars per share) | $ 15 | |
Stock options outstanding, Number of Shares Outstanding (shares) | 110,923 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 4 years 9 months 3 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 13.69 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 102,589 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 4 years 6 months 18 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 13.96 | |
Price Range $15.01 - $25.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price Ranges, lower range limit (in dollars per share) | 15.01 | |
Exercise Price Ranges, upper range limit (in dollars per share) | $ 25 | |
Stock options outstanding, Number of Shares Outstanding (shares) | 231,667 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 4 years 5 months 1 day | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 19.68 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 205,000 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 3 years 10 months 24 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 19.55 | |
Price Range $25.01 - 60.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price Ranges, lower range limit (in dollars per share) | 25.01 | |
Exercise Price Ranges, upper range limit (in dollars per share) | $ 60 | |
Stock options outstanding, Number of Shares Outstanding (shares) | 154,333 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 8 years 11 months 8 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 36.88 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 5,333 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 8 years 8 months 23 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 31.55 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Nonvested Stock Option Activity (Details) | 9 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Options | |
Nonvested Outstanding at June 30, 2021 | shares | 466,377 |
Vested | shares | (58,055) |
Nonvested Outstanding at March 31, 2022 | shares | 408,322 |
Weighted Average Grant Date Fair Value Per Award | |
Nonvested Outstanding at June 30, 2021 | $ / shares | $ 8.52 |
Vested | $ / shares | 6.79 |
Nonvested Outstanding at March 31, 2022 | $ / shares | $ 8.77 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units | 9 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Awards Outstanding | |
Awards Outstanding,Outstanding beginning balance | shares | 12,721 |
Awards Outstanding, Shares granted | shares | 6,649 |
Awards Outstanding,Outstanding ending balance | shares | 19,370 |
Awards Outstanding, Vested but subject to deferred settlement | shares | 0 |
Weighted Average Fair Value per Unit at Grant Date | |
Weighted Average Fair Value per Unit at Grant Date, Outstanding beginning balance | $ / shares | $ 37.72 |
Weighted Average Fair Value per Unit at Grant Date, Shares granted | $ / shares | 72.15 |
Weighted Average Fair Value per Unit at Grant Date, Outstanding ending balance | $ / shares | 49.54 |
Weighted Average Fair Value per Unit at Grant Date, Vested but subject to deferred settlement | $ / shares | $ 0 |
Stockholders' Equity - Summar_5
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Parenthetical) (Details) | Sep. 20, 2021shares |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Additional increase in number of shares | 55.848 |
Customer and Supplier Concent_3
Customer and Supplier Concentrations - Schedule of Concentration of Risk, by Risk Factor of Accounts Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | ||
Concentration Risk [Line Items] | |||
Secured loans receivable | [1] | $ 145,838 | $ 112,968 |
Accounts Receivable | Customer Concentrations | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net | $ 65,636 | $ 89,000 | |
Concentration risk, percentage | 100.00% | 100.00% | |
Morgan Stanley | Accounts Receivable | Customer Concentrations | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net | $ 9,190 | ||
Concentration risk, percentage | 14.00% | 0.00% | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Segments and Geographic Infor_3
Segments and Geographic Information - Additional Information (Details) | 9 Months Ended |
Mar. 31, 2022Reportable_segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments and Geographic Infor_4
Segments and Geographic Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 2,109,115,000 | $ 2,049,489,000 | $ 6,069,450,000 | $ 5,434,349,000 | ||
Gross profit | $ 72,083,000 | $ 68,171,000 | $ 194,015,000 | $ 123,067,000 | ||
Gross margin percentage by segment | 3.418% | 3.326% | 3.197% | 2.265% | ||
Selling, general, and administrative expenses | $ (20,494,000) | $ (13,295,000) | $ (55,884,000) | $ (31,328,000) | ||
Depreciation and amortization expense | (7,548,000) | (1,488,000) | (24,077,000) | (2,494,000) | ||
Interest income | 5,343,000 | 4,724,000 | 16,125,000 | 13,240,000 | ||
Interest expense | (5,429,000) | (5,335,000) | (16,297,000) | (14,665,000) | ||
Earnings from equity method investments | 1,608,000 | 7,410,000 | 4,317,000 | 13,898,000 | ||
Remeasurement gain on pre-existing equity interest | 26,306,000 | 26,306,000 | ||||
Unrealized losses on foreign exchange | (135,000) | (53,000) | (128,000) | (131,000) | ||
Other income (expense), net | 493,000 | 340,000 | 1,335,000 | 904,000 | ||
Total net income before provision for income taxes | 45,921,000 | 86,780,000 | 119,406,000 | 128,797,000 | ||
Advertising expense | (3,319,000) | (958,000) | (9,080,000) | (2,280,000) | ||
Precious metals held under financing arrangements | [1] | 87,450,000 | 87,450,000 | $ 154,742,000 | ||
Inventories | 764,263,000 | 764,263,000 | 458,019,000 | |||
Assets | 1,346,583,000 | 1,346,583,000 | 1,191,581,000 | |||
Long term assets | 220,687,000 | 220,687,000 | 227,354,000 | |||
Capital expenditures on property, plant, and equipment | 479,000 | 414,000 | 2,106,000 | 1,351,000 | ||
Goodwill | 100,943,000 | 100,943,000 | 100,943,000 | |||
Intangible assets | 70,716,000 | 70,716,000 | 93,633,000 | |||
United States | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,256,092,000 | 1,320,129,000 | 3,631,974,000 | 3,407,484,000 | ||
Inventories | 706,249,000 | 706,249,000 | 431,732,000 | |||
Assets | 1,285,377,000 | 1,285,377,000 | 1,162,195,000 | |||
Long term assets | 220,685,000 | 220,685,000 | 227,352,000 | |||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 495,293,000 | 285,843,000 | 1,542,293,000 | 1,067,325,000 | ||
Inventories | 22,098,000 | 22,098,000 | 9,451,000 | |||
Assets | 25,290,000 | 25,290,000 | 12,550,000 | |||
Long term assets | 2,000 | 2,000 | 2,000 | |||
North America, excluding United States | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 342,392,000 | 394,562,000 | 850,681,000 | 867,437,000 | ||
Inventories | 35,329,000 | 35,329,000 | 16,633,000 | |||
Assets | 35,329,000 | 35,329,000 | 16,633,000 | |||
Asia Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 9,592,000 | 17,514,000 | 34,586,000 | 43,649,000 | ||
Africa | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 17,000 | |||||
Australia | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 5,746,000 | 31,441,000 | 9,899,000 | 48,454,000 | ||
Inventories | 182,000 | 182,000 | ||||
Assets | 182,000 | 182,000 | ||||
Asia | ||||||
Segment Reporting Information [Line Items] | ||||||
Inventories | 405,000 | 405,000 | 203,000 | |||
Assets | 405,000 | 405,000 | 203,000 | |||
Wholesale Sales & Ancillary Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,519,040,000 | 1,923,263,000 | 4,425,796,000 | 5,214,460,000 | ||
Gross profit | $ 30,539,000 | $ 51,563,000 | $ 85,029,000 | $ 95,430,000 | ||
Gross margin percentage by segment | 2.01% | 2.681% | 1.921% | 1.83% | ||
Operating income (expense) | $ (10,023,000) | $ 22,871,000 | $ (24,676,000) | $ 14,062,000 | ||
Selling, general, and administrative expenses | (11,203,000) | (9,859,000) | (28,748,000) | (23,727,000) | ||
Depreciation and amortization expense | (214,000) | (213,000) | (673,000) | (637,000) | ||
Interest income | 2,300,000 | 2,554,000 | 7,952,000 | 7,490,000 | ||
Interest expense | (2,379,000) | (3,274,000) | (7,396,000) | (9,137,000) | ||
Earnings from equity method investments | 1,608,000 | 7,410,000 | 4,317,000 | 13,898,000 | ||
Remeasurement gain on pre-existing equity interest | 26,306,000 | 26,306,000 | ||||
Unrealized losses on foreign exchange | (135,000) | (53,000) | (128,000) | (131,000) | ||
Total net income before provision for income taxes | 20,516,000 | 74,434,000 | 60,353,000 | 109,492,000 | ||
Advertising expense | (190,000) | (74,000) | (433,000) | (217,000) | ||
Precious metals held under financing arrangements | 87,450,000 | 87,450,000 | 130,766,000 | |||
Inventories | 623,188,000 | 623,188,000 | 402,418,000 | |||
Assets | 825,129,000 | 825,129,000 | 710,302,000 | |||
Long term assets | 49,946,000 | 49,946,000 | 36,174,000 | |||
Capital expenditures on property, plant, and equipment | 183,000 | 411,000 | 812,000 | 1,335,000 | ||
Goodwill | 8,881,000 | 8,881,000 | 8,881,000 | |||
Intangible assets | 2,774,000 | 2,774,000 | 2,831,000 | |||
Direct-to-Consumer | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 590,075,000 | 126,226,000 | 1,643,654,000 | 219,889,000 | ||
Gross profit | $ 41,544,000 | $ 16,608,000 | $ 108,986,000 | $ 27,637,000 | ||
Gross margin percentage by segment | 7.04% | 13.157% | 6.631% | 12.569% | ||
Operating income (expense) | $ (16,911,000) | $ (3,876,000) | $ (51,158,000) | $ (7,620,000) | ||
Selling, general, and administrative expenses | (8,913,000) | (2,644,000) | (25,906,000) | (5,982,000) | ||
Depreciation and amortization expense | (7,245,000) | (1,187,000) | (23,140,000) | (1,593,000) | ||
Interest expense | (703,000) | (45,000) | (2,062,000) | (45,000) | ||
Other income (expense), net | (50,000) | (50,000) | ||||
Total net income before provision for income taxes | 24,633,000 | 12,732,000 | 57,828,000 | 20,017,000 | ||
Advertising expense | (3,077,000) | (821,000) | (8,493,000) | (1,932,000) | ||
Inventories | 141,075,000 | 141,075,000 | 53,069,000 | |||
Assets | 368,768,000 | 368,768,000 | 335,829,000 | |||
Long term assets | 168,031,000 | 168,031,000 | 188,208,000 | |||
Capital expenditures on property, plant, and equipment | 296,000 | 3,000 | 1,294,000 | 12,000 | ||
Goodwill | 92,062,000 | 92,062,000 | 92,062,000 | |||
Intangible assets | 67,942,000 | 67,942,000 | 90,802,000 | |||
Secured Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | |||||
Gross profit | 0 | |||||
Operating income (expense) | 772,000 | (386,000) | 1,225,000 | (712,000) | ||
Selling, general, and administrative expenses | (379,000) | (792,000) | (1,230,000) | (1,619,000) | ||
Depreciation and amortization expense | (88,000) | (88,000) | (264,000) | (264,000) | ||
Interest income | 3,043,000 | 2,170,000 | 8,173,000 | 5,750,000 | ||
Interest expense | (2,347,000) | (2,016,000) | (6,839,000) | (5,483,000) | ||
Other income (expense), net | 543,000 | 340,000 | 1,385,000 | 904,000 | ||
Total net income before provision for income taxes | 772,000 | (386,000) | 1,225,000 | (712,000) | ||
Advertising expense | (52,000) | (63,000) | (154,000) | (131,000) | ||
Precious metals held under financing arrangements | 23,976,000 | |||||
Inventories | 2,532,000 | |||||
Assets | 152,686,000 | 152,686,000 | 145,450,000 | |||
Long term assets | 2,710,000 | 2,710,000 | 2,972,000 | |||
Capital expenditures on property, plant, and equipment | 4,000 | |||||
Operating Segments | Wholesale Sales & Ancillary Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,966,897,000 | 2,017,120,000 | 5,732,207,000 | 5,347,951,000 | ||
Gross profit | $ 32,002,000 | $ 51,529,000 | $ 85,474,000 | $ 95,327,000 | ||
Gross margin percentage by segment | 1.627% | 2.555% | 1.491% | 1.782% | ||
Operating income (expense) | $ (9,963,000) | $ 22,916,000 | $ (24,485,000) | $ 14,176,000 | ||
Assets | 968,591,000 | 968,591,000 | 874,152,000 | |||
Eliminations of Inter-Segment Sales | Wholesale Sales & Ancillary Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (447,857,000) | (93,857,000) | (1,306,411,000) | (133,491,000) | ||
Gross profit | (1,463,000) | 34,000 | (445,000) | 103,000 | ||
Operating income (expense) | (60,000) | (45,000) | (191,000) | (114,000) | ||
Assets | (143,462,000) | (143,462,000) | $ (163,850,000) | |||
Eliminations of Inter-Segment Sales | Direct-to-Consumer | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 400,000 | $ 900,000 | $ 2,000,000 | $ 7,800,000 | ||
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Segments and Geographic Infor_5
Segments and Geographic Information - Schedule of Segment Reporting Information, by Segment (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,109,115,000 | $ 2,049,489,000 | $ 6,069,450,000 | $ 5,434,349,000 | |
Gross profit | 72,083,000 | 68,171,000 | 194,015,000 | 123,067,000 | |
Accumulated impairment losses on goodwill | 1,364,000 | 1,364,000 | $ 1,364,000 | ||
Secured Lending | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | ||||
Gross profit | 0 | ||||
Direct-to-Consumer | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 590,075,000 | 126,226,000 | 1,643,654,000 | 219,889,000 | |
Gross profit | 41,544,000 | 16,608,000 | 108,986,000 | 27,637,000 | |
Accumulated impairment losses on goodwill | 1,400,000 | 1,400,000 | |||
Accumulated impairment losses on intangibles | 1,300,000 | 1,300,000 | |||
Direct-to-Consumer | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 400,000 | $ 900,000 | 2,000,000 | $ 7,800,000 | |
Precious Metals | Secured Lending | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | ||||
Gross profit | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | Apr. 28, 2022 | Aug. 30, 2021 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Dividends declared, date | Aug. 30, 2021 | ||
Dividend, record date | Sep. 20, 2021 | ||
Silver Gold Bull Inc | |||
Subsequent Event [Line Items] | |||
Business acquisition, percentage of interests acquired | 7.40% | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stock split description | two-for-one | ||
Dividend, record date | May 23, 2022 | ||
Number of additional share of common stock for every share held on the record date | 1 | ||
Subsequent Event | Silver Gold Bull Inc | |||
Subsequent Event [Line Items] | |||
Business acquisition, percentage of interests acquired | 47.40% | ||
Purchase price of agreement | $ 44 | ||
Purchase price of cash | $ 34 | ||
Business acquisition, common stock shares issued | 126,964 | ||
Business combination extended term of supplier agreement | 4 years | ||
Business acquisition, option to purchase additional percentage of the outstanding equity | 27.70% | ||
Subsequent Event | Silver Gold Bull Inc | Minimum | |||
Subsequent Event [Line Items] | |||
Business combination option exercisable period | 18 months | ||
Subsequent Event | Silver Gold Bull Inc | Maximum | |||
Subsequent Event [Line Items] | |||
Business acquisition, percentage of interests acquired | 75.00% | ||
Business combination option exercisable period | 27 months |