Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2020 | Feb. 04, 2021 | |
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 | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
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, $0.01 par value | |
Trading Symbol | AMRK | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 7,195,434 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Current assets: | |||
Cash | [1] | $ 14,922 | $ 52,325 |
Receivables, net | [1] | 101,864 | 49,142 |
Derivative assets | [1] | 57,849 | 46,325 |
Secured loans receivable | [1] | 95,817 | 63,710 |
Precious metals held under financing arrangements | [1] | 160,255 | 178,577 |
Inventories: | |||
Inventories | [1] | 245,151 | 246,603 |
Restricted inventories | 272,531 | 74,678 | |
Restricted and nonrestricted inventory, net | 517,682 | 321,281 | |
Prepaid expenses and other assets | [1] | 3,131 | 2,659 |
Total current assets | 951,520 | 714,019 | |
Operating lease right of use assets | 3,642 | 4,223 | |
Property, plant, and equipment, net | 5,913 | 5,675 | |
Goodwill | 8,881 | 8,881 | |
Intangibles, net | 4,657 | 4,974 | |
Long-term investments | 30,013 | 16,763 | |
Other long-term assets | 2,500 | 3,500 | |
Total assets | 1,007,126 | 758,035 | |
Current liabilities: | |||
Lines of credit | 175,000 | 135,000 | |
Liabilities on borrowed metals | 141,796 | 168,206 | |
Product financing arrangements | 272,531 | 74,678 | |
Accounts payable and other current liabilities | 142,372 | 140,930 | |
Derivative liabilities | [1] | 50,809 | 25,414 |
Accrued liabilities | [1] | 9,431 | 10,397 |
Income tax payable | 715 | 2,135 | |
Total current liabilities | 792,654 | 556,760 | |
Notes payable | [1] | 92,874 | 92,517 |
Deferred tax liabilities | 62 | 62 | |
Other liabilities | 3,108 | 3,802 | |
Total liabilities | 888,698 | 653,141 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of December 31, 2020 and June 30, 2020 | |||
Common stock, par value $0.01; 40,000,000 shares authorized; 7,131,462 and 7,031,500 shares issued and outstanding as of December 31, 2020 and June 30, 2020, respectively | 72 | 71 | |
Additional paid-in capital | 29,093 | 27,289 | |
Retained earnings | 84,461 | 73,644 | |
Total A-Mark Precious Metals, Inc. stockholders’ equity | 113,626 | 101,004 | |
Non-controlling interests | 4,802 | 3,890 | |
Total stockholders’ equity | 118,428 | 104,894 | |
Total liabilities, non-controlling interests and stockholders’ equity | $ 1,007,126 | $ 758,035 | |
[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 (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2020 | Jun. 30, 2020 |
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 | 7,131,462 | 7,031,500 |
Common stock, shares outstanding | 7,131,462 | 7,031,500 |
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) (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
ASSETS | |||
Cash | [1] | $ 14,922 | $ 52,325 |
Receivables, net | [1] | 101,864 | 49,142 |
Secured loans receivable | [1] | 95,817 | 63,710 |
Precious metals held under financing arrangements | [1] | 160,255 | 178,577 |
Inventories | [1] | 245,151 | 246,603 |
Prepaid expenses and other assets | [1] | 3,131 | 2,659 |
Total assets | 1,007,126 | 758,035 | |
LIABILITIES OF THE CONSOLIDATED VIE | |||
Derivative liabilities | [1] | 50,809 | 25,414 |
Accrued liabilities | [1] | 9,431 | 10,397 |
Notes payable | [1] | 92,874 | 92,517 |
Total liabilities | 888,698 | 653,141 | |
Variable Interest Entity, Primary Beneficiary | |||
ASSETS | |||
Cash | 3,529 | 26,697 | |
Receivables, net | 446 | 3,005 | |
Secured loans receivable | 69,937 | 34,739 | |
Precious metals held under financing arrangements | 27,889 | 20,968 | |
Inventories | 7,907 | 24,057 | |
Prepaid expenses and other assets | 42 | 16 | |
Total assets | 109,750 | 109,482 | |
LIABILITIES OF THE CONSOLIDATED VIE | |||
Deferred payment obligations | [2] | 15,010 | 13,275 |
Derivative liabilities | 87 | 541 | |
Accrued liabilities | 728 | 387 | |
Notes payable | [3] | 97,875 | 97,517 |
Total liabilities | $ 113,700 | $ 111,720 | |
[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 it is not shown on the condensed consolidated balance sheets. | ||
[3] | $5.0 million of the Notes are held by A-Mark, which is eliminated in consolidation and hence not shown on the condensed consolidated balance sheets. |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheets (VIE) (Unaudited) (Parenthetical) - USD ($) | Dec. 31, 2020 | Sep. 30, 2018 |
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% |
Variable Interest Entity, Primary Beneficiary | ||
Financing receivable | $ 5,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,518,744,000 | $ 1,055,590,000 | $ 3,384,860,000 | $ 2,536,604,000 |
Cost of sales | 1,499,993,000 | 1,047,459,000 | 3,329,964,000 | 2,520,133,000 |
Gross profit | 18,751,000 | 8,131,000 | 54,896,000 | 16,471,000 |
Selling, general, and administrative expenses | (9,033,000) | (7,870,000) | (19,039,000) | (16,140,000) |
Interest income | 4,533,000 | 6,232,000 | 8,516,000 | 12,000,000 |
Interest expense | (5,037,000) | (5,081,000) | (9,330,000) | (10,223,000) |
Other income (expense), net | 2,567,000 | 150,000 | 7,052,000 | (16,000) |
Unrealized gains (losses) on foreign exchange | 19,000 | 125,000 | (78,000) | 3,000 |
Net income before provision for income taxes | 11,800,000 | 1,687,000 | 42,017,000 | 2,095,000 |
Income tax expense | (2,586,000) | (432,000) | (9,097,000) | (537,000) |
Net income | 9,214,000 | 1,255,000 | 32,920,000 | 1,558,000 |
Net income attributable to non-controlling interests | 289,000 | 21,000 | 912,000 | 196,000 |
Net income attributable to the Company | $ 8,925,000 | $ 1,234,000 | $ 32,008,000 | $ 1,362,000 |
Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.: | ||||
Basic | $ 1.26 | $ 0.17 | $ 4.53 | $ 0.19 |
Diluted | $ 1.16 | $ 0.17 | $ 4.21 | $ 0.19 |
Weighted average shares outstanding: | ||||
Basic | 7,063,000 | 7,031,400 | 7,064,800 | 7,031,400 |
Diluted | 7,713,300 | 7,056,300 | 7,610,400 | 7,074,800 |
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, 2019 | $ 72,566 | $ 71 | $ 26,452 | $ 43,135 | $ 69,658 | $ 2,908 |
Beginning balance (shares) at Jun. 30, 2019 | 7,031,450 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 303 | 128 | 128 | 175 | ||
Share-based compensation | 166 | 166 | 166 | |||
Ending balance at Sep. 30, 2019 | 73,035 | $ 71 | 26,618 | 43,263 | 69,952 | 3,083 |
Ending balance (shares) at Sep. 30, 2019 | 7,031,450 | |||||
Beginning balance at Jun. 30, 2019 | 72,566 | $ 71 | 26,452 | 43,135 | 69,658 | 2,908 |
Beginning balance (shares) at Jun. 30, 2019 | 7,031,450 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,558 | |||||
Ending balance at Dec. 31, 2019 | 74,534 | $ 71 | 26,862 | 44,497 | 71,430 | 3,104 |
Ending balance (shares) at Dec. 31, 2019 | 7,031,450 | |||||
Beginning balance at Sep. 30, 2019 | 73,035 | $ 71 | 26,618 | 43,263 | 69,952 | 3,083 |
Beginning balance (shares) at Sep. 30, 2019 | 7,031,450 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,255 | 1,234 | 1,234 | 21 | ||
Share-based compensation | 244 | 244 | 244 | |||
Ending balance at Dec. 31, 2019 | 74,534 | $ 71 | 26,862 | 44,497 | 71,430 | 3,104 |
Ending balance (shares) at Dec. 31, 2019 | 7,031,450 | |||||
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 | 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 ($1.50 per common share) | (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 | 7,031,500 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 32,920 | |||||
Net settlement on issuance of common shares on exercise of options (shares) | 107,839 | |||||
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 | 7,131,462 | ||||
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 ($1.50 per common share) | (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 | 7,131,462 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | Oct. 29, 2020 | Sep. 03, 2020 | Dec. 31, 2020 | Sep. 30, 2020 |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends declared, per common share | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities: | |||
Net income | $ 32,920,000 | $ 1,558,000 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,006,000 | 1,334,000 | |
Amortization of loan cost | 968,000 | 730,000 | |
Deferred income taxes | 474,000 | ||
Interest added to principal of secured loans | (4,000) | (10,000) | |
Share-based compensation | 388,000 | 410,000 | |
Earnings from equity method investments | (6,488,000) | (114,000) | |
Changes in assets and liabilities: | |||
Receivables | (52,722,000) | 2,297,000 | |
Secured loans receivable | (309,000) | 2,131,000 | |
Secured loans made to affiliates | 8,662,000 | 5,108,000 | |
Derivative assets | (11,524,000) | (2,931,000) | |
Income tax receivable | 7,000 | ||
Precious metals held under financing arrangements | 18,322,000 | 11,820,000 | |
Inventories | (196,401,000) | 29,930,000 | |
Prepaid expenses and other assets | (532,000) | 359,000 | |
Accounts payable and other current liabilities | 1,442,000 | 174,000 | |
Derivative liabilities | 25,395,000 | (923,000) | |
Liabilities on borrowed metals | (26,410,000) | (8,255,000) | |
Accrued liabilities | (1,068,000) | (743,000) | |
Income tax payable | (1,420,000) | ||
Net cash (used in) provided by operating activities | (207,775,000) | 43,356,000 | |
Cash flows from investing activities: | |||
Capital expenditures for property, plant, and equipment | (937,000) | (455,000) | |
Purchase of long-term investments | (6,763,000) | ||
Purchase of intangible assets | (150,000) | ||
Secured loans receivable, net | (40,456,000) | (34,274,000) | |
Other secured loans, net | 1,000,000 | (3,500,000) | |
Net cash used in investing activities | (47,156,000) | (38,379,000) | |
Cash flows from financing activities: | |||
Product financing arrangements, net | 197,853,000 | (14,739,000) | |
Dividends paid | (21,191,000) | ||
Borrowings and repayments under lines of credit, net | 40,000,000 | 13,000,000 | |
Debt funding issuance costs | (551,000) | ||
Net settlement on issuance of common shares on exercise of options | 1,417,000 | ||
Net cash provided by (used in) financing activities | 217,528,000 | (1,739,000) | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (37,403,000) | 3,238,000 | |
Cash, cash equivalents, and restricted cash, beginning of period | 52,325,000 | [1] | 8,320,000 |
Cash, cash equivalents, and restricted cash, end of period | 14,922,000 | [1] | 11,558,000 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 7,721,000 | 10,026,000 | |
Income taxes paid | 11,561,000 | 50,000 | |
Income taxes refunded | (1,044,000) | ||
Non-cash investing and financing activities: | |||
Interest added to principal of secured loans | $ 4,000 | $ 10,000 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Description of Business
Description of Business | 6 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description 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, and its joint ventures in which the Company has a controlling interest. Business Segments The Company conducts its operations in three reportable segments: (i) Wholesale Sales & Ancillary Services (formerly known as Wholesale Trading & Ancillary Services segment), (ii) Secured Lending, and (iii) Direct Sales. 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 Financial Accounting Standards Board’s ("FASB") Accounting Standards Codification (“ASC”). (See Through its wholly owned subsidiary, A-Mark Trading AG (“AMTAG”), the Company promotes A-Mark's goods and services to the international market. Transcontinental Depository Services (“TDS”), also a wholly owned subsidiary of the Company, offers worldwide storage solutions to institutions, dealers, and consumers. The Company's wholly-owned subsidiary, A-M Global Logistics, LLC. ("Logistics" or “AMGL”), operates the Company's logistics fulfillment center. Logistics provides customers an array of complementary services, including packaging, shipping, handling, receiving, processing, and inventorying of precious metals and custom coins on a secure basis. Through our partially-owned subsidiary, AM&ST Associates, LLC. ("AMST" or "SilverTowne" or the "Mint"), the Company designs and produces minted silver products. The Company operates the Mint pursuant to a joint venture agreement with SilverTowne, L.P. The Company and SilverTowne L.P. own 69% and 31%, respectively, of AMST. Secured Lending The Company operates its Secured Lending segment through its wholly-owned subsidiary, Collateral Finance Corporation LLC. ("CFC".) CFC 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. For additional information, see Note 14 . Direct Sales The Company's wholly-owned subsidiary, Goldline, Inc. ("Goldline"), is a direct retailer of precious metals to the investor community. Goldline markets its precious metal products primarily on radio, television, and the internet. Goldline sells gold and silver bullion in the form of coins, rounds, and bars. AM IP LLC. ("AMIP"), a wholly owned subsidiary of Goldline, manages its intellectual property. Precious Metals Purchasing Partners, LLC, ("PMPP"), is a 50% owned subsidiary of Goldline. PPMP acquires precious metals from retail customers and resells the metals to partners or affiliates of the joint venture. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Principles of Consolidation The condensed consolidated financial statements reflect the financial condition, results of operations, statement 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, majority owned, and entities that are variable interest entities where the Company is determined to be the primary beneficiary. Our condensed consolidated financial statements include the accounts of A-Mark, AMTAG, TDS, AMGL, AMST, CFC, AMCF, Goldline, AMIP, and PMPP (collectively the “Company”). Intercompany accounts and transactions are eliminated. Comprehensive Income For the six months ended December 31, 2020 and 2019, 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 and precious metals inventory. Actual results could materially differ from these estimates. Unaudited Interim Financial Information The accompanying interim 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 six months ended December 31, 2020 ending June 30, 2021 2020 (the “2020 June 30, 2020 balances within these interim condensed consolidated financial statements were derived from the aforementioned audited Fair Value Measurement The Fair Value Measurements and Disclosures 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. Concentration of credit risk with respect to receivables is limited due to the large number of customers composing the Company's customer base, the geographic dispersion of the customers, and the collateralization of substantially all receivable balances. 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"). Also, 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 condensed 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. 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 reconsiders its previous conclusions 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 the 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 ongoing 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 December 31, 2020 and June 30, 2020, are indicated on the table that follows the condensed consolidated balance sheets . AMCF is a VIE because its initial equity investment may be insufficient to maintain its ongoing 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 14 .) 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 does not have any cash equivalents as of December 31, 2020 and June 30, 2020. As of December 31, 2020 and June 30, 2020, the Company has $0.2 million and $0.2 million, respectively, in a bank account that is restricted and serves as collateral against a standby letter of credit issued by the bank in favor of the landlord for our office space in Los Angeles, California. 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 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 December 31, 2020 and June 30, 2020, precious metals held under financing arrangements totaled $160.3 million and $178.6 million respectively. The Company’s precious metals held under financing arrangements are marked-to-market. Inventories The Company's inventory primarily includes bullion and bullion coins, which 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 costs of the raw precious metal, and (ii) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form, and the market value attributable solely to the premium may be readily determined, as it is published by multiple reputable 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 condensed consolidated balance sheets. Our finance leases (previously considered by the Company as capital leases prior to our adoption of ASC 842) are another type of ROU asset, but are classified in the condensed consolidated balance sheets as a component of property, plant, and equipment at the present value of the lease payments. For leases that contain termination options, where the rights to terminate are held by either us, the lessor, or both parties and it is reasonably certain that we will exercise that option, we factor these extended or shortened lease terms into the minimum lease payments. The ROU assets also 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. Our lease agreements do not contain any significant residual value guarantees or material restrictive covenants. Components of operating lease expense for the three and six months ended December 31, 2020 and 2019 were as follows: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Operating lease costs $ 350 $ 350 $ 699 $ 699 Short term and variable lease costs 91 99 224 192 Finance lease costs 5 5 11 11 Sublease income — (27 ) — (54 ) Total lease costs, net $ 446 $ 427 $ 934 $ 848 For the six months ended December 31, 2020 and 2019 At December 31, 2020 was 4.2 years, while 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 December 31, 2020 Years ending June 30, Operating Leases 2021 (6 months remaining) 767 2022 1,313 2023 834 2024 860 2025 816 Thereafter 370 Total lease payments 4,960 Less imputed interest (490 ) $ 4,470 (1) Operating lease liability - current $ 1,362 (2) Operating lease liability - long-term 3,108 (3) $ 4,470 (1) (1) Represents the present value of the capitalized operating lease liabilities as of December 31, 2020. (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 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 commences 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 carrying 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 which are amortized on a straight-line basis over their economic useful lives ranging from three years 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. 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 the Intangibles - Goodwill and Other Topic 350 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 8 .) 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 8 .) 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. 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. 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 its equity method 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 VIEs as of December 31, 2020 and June 30, 2020. Other Long-Term Assets Notes and other receivables, with terms greater than one year, are carried at amortized cost, net of any unamortized origination fees, which are recognized over the life of the note. The determination of an allowance is based on historical experience and, as a result, can differ from actual losses incurred in the future. We charge off receivables at such time as it is determined collection will not occur. On September 19, 2019, the Company, as lender, entered into a convertible revolving credit facility with a privately-held supplier and counterparty (the borrower) that provides the borrower an aggregate principal amount of up to $4.0 million, bearing interest at 12.0% per annum. The facility expires on September 18, 2022. The borrower has the right to prepay the credit facility at any time without premium or penalty. Outstanding principal amounts under the credit facility may, at the lender's discretion, be converted into up to 22.0% of the borrower's issued and outstanding common stock. The credit facility also grants the lender the right to repay the borrower's outstanding unrelated third-party debt, at any time, in exchange for up to 27.5% of the borrower’s issued and outstanding common stock. In the event the borrower sells all or substantially all of its assets or has a change of control during the term of the facility, the lender is entitled to additional interest equal to 10.0% of the gross sales price in excess of $9.9 million. The credit facility collateral includes all: (i) account receivables; (ii) inventory; (iii) fixed assets; (iv) intellectual property; (v) contract rights; and (vi) deposit accounts, in each case subordinated to an unrelated third-party lender’s security interest. Effective October 1, 2020, A-Mark exercised its right to convert $1.0 million of the $3.5 million outstanding convertible revolving credit facility balance and exercised our right to repay in full borrower’s third-party loan, which totaled $5.8 million at the exercise date. As a result, the Company owns 31.2% of borrower’s outstanding common stock. As of December 31, 2020 and June 30, 2020, the carrying value of the convertible revolving credit facility was $2.5 million and $3.5 million, respectively. 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 All derivative instruments are marked-to-market during the interval between the trade 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 Trade 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 trade order types and the key factors that determine when settlement occurs and when revenue is recognized for each type: • Traditional physical trade orders The quantity, specific product, and price are determined on the trade date. Payment or sufficient credit is verified prior to delivery of the metals on the settlement date. • Consignment trade orders The Company delivers the items requested by the customer prior to establishing a firm trade 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 trade orders The quantity and type of metal is established at the trade 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 trade orders The quantity, specific product, and price are determined at trade 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 trade date). Revenue on margin trade orders is recognized when the order is paid in full and delivered to the customer. • Borrowed precious metals trade 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 trade 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 components of accounts payable and other current liabilities in the condensed consolidated balance sheets. 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 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 (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 11 . ) 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 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. In aggregate, these types of service revenues account for less than 1% of the Company's combined revenue from all revenue streams. Interest Income In accordance with the Interest • 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 marg |
Assets and Liabilities, at Fair
Assets and Liabilities, at Fair Value | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities, 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 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 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 of December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Carrying Amount Fair value Carrying Amount Fair value Notes payable $ 92,874 $ 102,084 $ 92,517 $ 101,017 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. Topic 820 of the ASC 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 primarily includes bullion and bullion coins, which 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 costs of the raw precious metal, and ii) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form and the market value attributable solely to the premium is readily determined, as it is published by multiple reputable 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 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, 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 December 31, 2020 and June 30, 2020, aggregated by the level in the fair value hierarchy within which the measurements fall: in thousands December 31, 2020 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) $ 517,673 $ — $ — $ 517,673 Precious metals held under financing arrangements 160,255 — — 160,255 Derivative assets — open sale and purchase commitments, net 57,826 — — 57,826 Derivative assets — forward contracts 23 — — 23 Total assets, valued at fair value $ 735,777 $ — $ — $ 735,777 Liabilities: Liabilities on borrowed metals $ 141,796 $ — $ — $ 141,796 Product financing arrangements 272,531 — — $ 272,531 Derivative liabilities — margin accounts 4,162 — — 4,162 Derivative liabilities — open sale and purchase commitments, net 2,165 — — 2,165 Derivative liabilities — futures contracts 33,129 — — 33,129 Derivative liabilities — forward contracts 11,353 — — 11,353 Total liabilities, valued at fair value $ 465,136 $ — $ — $ 465,136 (1) Commemorative coin inventory totaling $9 thousand is held at lower of cost or net realizable value and thus is excluded from the inventories balance shown in this table. in thousands June 30, 2020 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) $ 321,264 $ — $ — $ 321,264 Precious metals held under financing arrangements 178,577 — — 178,577 Derivative assets — open sale and purchase commitments, net 46,224 — — 46,224 Derivative assets — forward contracts 101 — — 101 Total assets, valued at fair value $ 546,166 $ — $ — $ 546,166 Liabilities: Liabilities on borrowed metals $ 168,206 $ — $ — $ 168,206 Product financing arrangements 74,678 — — 74,678 Derivative liabilities — margin accounts 5,380 — — 5,380 Derivative liabilities — open sale and purchase commitments, net 4,349 — — 4,349 Derivative liabilities — futures contracts 12,477 — — 12,477 Derivative liabilities — forward contracts 3,208 — — 3,208 Total liabilities, valued at fair value $ 268,298 $ — $ — $ 268,298 (1) Commemorative coin inventory totaling $17 thousand is held at lower of cost or net realizable value 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 ongoing basis but are subject to fair value adjustments only under certain circumstances. These include:(i) equity method investments that are written down to fair value when a decline in the fair value is determined to be other-than-temporary, (ii) property, plant, and equipment and definite-lived intangibles, or (iii) goodwill and indefinite-lived intangibles, all of which are written down to fair value when they are held for sale or determined to be impaired. The resulting fair value measurements of the assets are considered to be Level 3 measurements. Determining fair value requires the exercise of significant judgments, including judgments about 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. |
Receivables
Receivables | 6 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Receivables | 4. Receivables consist of the following as of December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Customer trade receivables $ 7,015 $ 6,047 Wholesale trade advances 1,480 10,167 Due from brokers 93,369 32,928 $ 101,864 $ 49,142 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 11 .) |
Secured Loans Receivable
Secured Loans Receivable | 6 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Secured Loans Receivable | 5. Below is a summary of the carrying value of our secured loans as of December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Secured loans originated $ 37,865 $ 30,019 Secured loans originated - with a related party 135 8,797 38,000 38,816 Secured loans acquired 57,817 (1) 24,894 (2) $ 95,817 $ 63,710 (1) Includes $6 thousand of loan premium as of December 31, 2020. (2) Includes $6 thousand of loan premium as of June 30, 2020. Secured Loans - Originated : Secured loans include short-term loans, which include a combination of on-demand lines and short-term facilities that are made to our customers. These loans are fully secured by the customers' assets that include bullion, numismatic, and semi-numismatic material, which are typically held in safekeeping by the Company. (See Note 13 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, numismatic, and semi-numismatic material that are held in safekeeping by the Company. Typically, the seller of the loan portfolio retains the responsibility for the servicing and administration of the loans. As of December 31, 2020 and June 30, 2020, our secured loans carried weighted-average effective interest rates of 8.7% 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 who 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 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 or numismatic collateral, 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. 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 two classes of secured loan receivables are defined by collateral type: (i) bullion items, and (ii) numismatic and semi-numismatic coins. The required loan-to-value ratio varies with the class of loans. Typically, the Company requires a loan-to-value ratio of approximately 75% for bullion and 65% for numismatic collateral. The reason for the lower loan-to-value ratio for numismatic loans is that, on a percentage basis, more of the value of the numismatic coin relates to its premium value rather than its underlying commodity value. The Company's secured loans by portfolio class, which align with internal management reporting, are as follows: in thousands December 31, 2020 June 30, 2020 Bullion $ 72,599 75.8 % $ 36,445 57.2 % Numismatic and semi-numismatic 23,218 24.2 % 27,265 42.8 % $ 95,817 100.0 % $ 63,710 100.0 % Due to the nature of market fluctuations of precious 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 collateral values are updated by numismatic specialists when loan terms are renewed (typically in 180 days). 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 loan-to-value ratio, the loan is considered in default. The collateral material (either bullion or numismatic) underlying such loans is then sold by the Company to satisfy all amounts due under the loan. Loans with loan-to-value 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 loan-to-value ratio of 75% or more and (ii) loans with a loan-to-value ratio of less than 75%: in thousands December 31, 2020 June 30, 2020 Loan-to-value of less than 75% $ 89,177 93.1 % $ 58,296 91.5 % Loan-to-value of 75% or more 6,640 6.9 % 5,414 8.5 % $ 95,817 100.0 % $ 63,710 100.0 % The Company had no loans with a loan-to-value ratio in excess of 100% as of December 31, 2020 and June 30, 2020. 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 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 was to become non-performing, the Company would determine a reserve to reduce the carrying balance to its estimated net realizable value. As of December 31, 2020 and June 30, 2020, the Company had no allowance for secured loan losses. 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, non-performing, or 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 six months ended December 31, 2020 and 2019, the Company incurred no loan impairment costs. |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. 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 December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Inventory held for sale $ 122,107 $ 153,412 Repurchase arrangements with customers 99,964 70,988 Consignment arrangements with customers 1,617 2,842 Commemorative coins, held at lower of cost or net realizable value 9 17 Borrowed precious metals 21,454 19,344 Product financing arrangements, restricted 272,531 74,678 $ 517,682 $ 321,281 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 December 31, 2020 and June 30, 2020, the inventory held for sale totaled $122.1 million and $153.4 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 December 31, 2020 and June 30, 2020, included within inventories is $100.0 million and $71.0 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 December 31, 2020 and June 30, 2020 totaled $1.6 million and $2.8 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. 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. Our commemorative coins are not hedged, and are included in inventories at the lower of cost or net realizable value and totaled $9,000 and $17,000 as of December 31, 2020 and June 30, 2020, 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 $21.5 million and $19.3 million as of December 31, 2020 and June 30, 2020, respectively, with a corresponding offsetting obligation reflected as liabilities on borrowed metals on the condensed consolidated balance sheets. Product Financing Arrangements . In substance, 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 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 $272.5 million and $74.7 million as of December 31, 2020 and June 30, 2020, respectively. The Company mitigates market risk of its physical inventory and open commitments through commodity hedge transactions. (See Note 11 .) As of December 31, 2020 and June 30, 2020, the unrealized gains resulting from the difference between market value and cost of physical inventory were $21.5 million and $6.5 million, respectively. Premium component of inventory The premium component, at market value, included in the inventory as of December 31, 2020 and June 30, 2020 totaled $12.0 million and $3.7 million, respectively. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 6 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment | 7. Property, plant, and equipment consists of the following at December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Office furniture, and fixtures $ 2,153 $ 2,142 Computer equipment 943 900 Computer software 5,289 5,288 Plant equipment 4,198 3,450 Building 446 322 Leasehold improvements 2,804 2,804 Total depreciable assets 15,833 14,906 Less: Accumulated depreciation and amortization (9,956 ) (9,267 ) Land 36 36 Property, plant, and equipment, net $ 5,913 $ 5,675 Depreciation expense for the three months ended December 31, 2020 and 2019 was $342,000 and $412,000, respectively. Depreciation expense for the six months ended December 31, 2020 and 2019 was $689,000 and $827,000, respectively. For the periods presented, no depreciation or amortization expense was allocated to cost of sales. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. 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 SGI 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. Carrying Value The carrying value of goodwill and other purchased intangibles as of December 31, 2020 and June 30, 2020 is as described below: dollar amounts in thousands December 31, 2020 June 30, 2020 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Identifiable intangible assets: Existing customer relationships 5 - 15 $ 8,998 $ (7,582 ) $ — $ 1,416 $ 8,998 $ (7,307 ) $ — $ 1,691 Non-compete and other 3 - 5 2,300 (2,222 ) — 78 2,300 (2,187 ) — 113 Employment agreement 3 295 (295 ) — — 295 (288 ) — 7 Intangibles subject to amortization 11,593 (10,099 ) — 1,494 11,593 (9,782 ) — 1,811 Trade names and trademarks Indefinite 4,454 — (1,291 ) 3,163 4,454 — (1,291 ) 3,163 Identifiable intangible assets $ 16,047 $ (10,099 ) $ (1,291 ) 4,657 $ 16,047 $ (9,782 ) $ (1,291 ) $ 4,974 Goodwill Indefinite $ 10,245 $ — $ (1,364 ) $ 8,881 $ 10,245 $ — $ (1,364 ) $ 8,881 The Company's intangible assets are subject to amortization except for trade-names and trademarks, which have an indefinite life. Intangible assets subject to amortization are amortized using the straight-line method over their useful lives, which are estimated to be three to fifteen years. Amortization expense related to the Company's intangible assets for the three months ended December 31, 2020 and 2019 was $163,000 and $255,000, respectively. Amortization expense related to the Company's intangible assets for the six months ended December 31, 2020 and 2019 was $317,000 and $508,000, respectively. For the presented periods, no amortization expense was allocated to cost of sales. 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 the Direct Sales segment. 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 2021 (6 months remaining) 312 2022 601 2023 158 2024 77 2025 60 Thereafter 286 Total $ 1,494 |
Long-Term Investments
Long-Term Investments | 6 Months Ended |
Dec. 31, 2020 | |
Long Term Investments [Abstract] | |
Long-Term Investments | 9. The Company has four investments in privately-held entities, each of which is a precious metals retailer and customer of the Company. Depending on the entity, the Company may have one or more of the following in place: (i) an exclusive supplier agreement, subject to certain limitations; (ii) a product fulfillment services and storage agreement; and (iii) the right to appoint a director to the entity's board of directors. The Company has determined that it is appropriate to account for each of these investments under the equity method of accounting. The following table shows the carrying value and ownership percentage of the Company's investment in each entity: December 31, 2020 June 30, 2020 Entity Carrying Value Ownership Percentage Carrying Value Ownership Percentage (in thousands) (in thousands) Company A $ 3,113 7.4 % $ 2,529 7.4 % Company B 18,876 20.8 % 13,296 20.6 % Company C 1,012 10.0 % 938 10.0 % Company D 7,012 31.2 % — (— %) $ 30,013 $ 16,763 The Company considers these equity method investees to be related parties. See Note 13 for a summary of the Company's aggregate balances and activity with these related party entities. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 6 Months Ended |
Dec. 31, 2020 | |
Accounts Payable And Other Current Liabilities [Abstract] | |
Accounts Payable and Other Current Liabilities | 10 . Accounts payable and other current liabilities consist of the following: in thousands December 31, 2020 June 30, 2020 Trade payables to customers $ 1,259 $ 2,316 Advances from customers 128,010 129,624 Deferred revenue 10,712 6,141 Other accounts payable 2,391 2,849 $ 142,372 $ 140,930 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Transactions | 6 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Transactions | 11. 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 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 Topic 815 of the ASC, whereby the gains or losses would be deferred and included as a component of other comprehensive income . 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 December 31, 2020 and June 30, 2020. in thousands December 31, 2020 June 30, 2020 Gross Derivative Amounts Netted Cash Collateral Pledge Net Derivative Gross Derivative Amounts Netted Cash Collateral Pledge Net Derivative Nettable derivative assets: Open sale and purchase commitments $ 66,183 $ (8,357 ) $ — $ 57,826 $ 48,896 $ (2,672 ) $ — $ 46,224 Forward contracts 23 — — 23 101 — — 101 $ 66,206 $ (8,357 ) $ — $ 57,849 $ 48,997 $ (2,672 ) $ — $ 46,325 Nettable derivative liabilities: Open sale and purchase commitments $ 2,638 $ (473 ) $ — $ 2,165 5,653 $ (1,304 ) $ — $ 4,349 Margin accounts 6,102 — (1,940 ) 4,162 14,616 — (9,236 ) 5,380 Future contracts 33,129 — — 33,129 12,477 — — 12,477 Forward contracts 11,353 — — 11,353 3,208 — — 3,208 $ 53,222 $ (473 ) $ (1,940 ) $ 50,809 $ 35,954 $ (1,304 ) $ (9,236 ) $ 25,414 Gains or Losses on Derivative Instruments The Company records the derivative at the trade date with a corresponding unrealized gains (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 are recorded in cost of sales. Below is a summary of the net gains (losses) on derivative instruments for the three and six months ended December 31, 2020 and 2019. in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Gains (losses) on derivative instruments: Unrealized (losses) gains on open future commodity and forward contracts and open sale and purchase commitments, net $ (92,552 ) $ (15,356 ) $ (14,275 ) $ 9,755 Realized (losses) gains on future commodity contracts, net (2,579 ) 4,334 (107,414 ) (12,111 ) $ (95,131 ) $ (11,022 ) $ (121,689 ) $ (2,356 ) The Company’s net gains (losses) on derivative instruments, as shown in the table above, were substantially offset by the changes in 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 December 31, 2020 and June 30, 2020. in thousands December 31, 2020 June 30, 2020 Inventories $ 517,682 $ 321,281 Precious metals held under financing arrangements 160,255 178,577 677,937 499,858 Less unhedgeable inventories: Commemorative coin inventory, held at lower of cost or net realizable value (9 ) (17 ) Premium on metals position (11,967 ) (3,684 ) Precious metal value not hedged (11,976 ) (3,701 ) 665,961 496,157 Commitments at market: Open inventory purchase commitments 723,536 514,553 Open inventory sales commitments (309,332 ) (309,134 ) Margin sale commitments (6,102 ) (14,652 ) In-transit inventory no longer subject to market risk (6,728 ) (3,605 ) Unhedgeable premiums on open commitment positions 4,948 2,779 Borrowed precious metals (141,796 ) (168,206 ) Product financing arrangements (272,531 ) (74,678 ) Advances on industrial metals 696 318 (7,309 ) (52,625 ) Precious metal subject to price risk 658,652 443,532 Precious metal subject to derivative financial instruments: Precious metals forward contracts at market values 126,154 73,948 Precious metals futures contracts at market values 532,044 369,842 Total market value of derivative financial instruments 658,198 443,790 Net precious metals subject to commodity price risk $ 454 $ (258 ) 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 December 31, 2020 and June 30, 2020, the Company had the following outstanding commitments and open forward and future contracts: in thousands December 31, 2020 June 30, 2020 Purchase commitments $ 723,536 $ 514,553 Sales commitments $ (309,332 ) $ (309,134 ) Margin sales commitments $ (6,102 ) $ (14,652 ) Open forward contracts $ 126,154 $ 73,948 Open futures contracts $ 532,044 $ 369,842 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 December 31, 2020, 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. The accounting treatment of our foreign currency exchange derivative instruments is similar to the accounting treatment of our commodity derivative instruments, that is, the change in the value in the financial instrument is immediately recognized as a component of cost of sales. Unrealized gains on foreign exchange derivative instruments related to our open trades are shown on the face of the condensed consolidated statements of income totaled $19,000 and $125,000 for the three months ended December 31, 2020 and 2019, respectively. Unrealized (losses) gains on foreign exchange derivative instruments shown on the face of the condensed consolidated statements of income totaled ($78,000) and $3,000 for the six months ended December 31, 2020 and 2019, 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 December 31, 2020 June 30, 2020 Foreign exchange forward contracts $ 2,302 $ 4,599 Open sale and purchase commitment transactions, net $ 1,442 $ 3,475 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Net income from operations before provision for income taxes is shown below: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 U.S. $ 11,794 $ 1,681 $ 42,005 $ 2,082 Foreign 6 6 12 13 $ 11,800 $ 1,687 $ 42,017 $ 2,095 The provision for income tax expense by jurisdiction and the effective tax rate for the three and six months ended December 31, 2020 and 2019 are shown below: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Federal $ 2,344 $ 353 $ 8,193 $ 438 State and local 184 78 842 97 Foreign 58 1 62 2 Income tax expense $ 2,586 $ 432 $ 9,097 $ 537 Effective tax rate 21.9 % 25.6 % 21.7 % 25.6 % Tax Balances and Activity Income Taxes Payable As of December 31, 2020 and June 30, 2020, income taxes payable totaled $0.7 million and $2.1 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 December 31, 2020 and June 30, 2020, 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 of December 31, 2020 and June 30, 2020 As of December 31, 2020 and June 30, 2020, 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 asset of $1.0 million and a federal deferred tax liability of $1.1 million, respectively. Net Operating Loss Carryforwards and Tax Credits As of December 31, 2020 and June 30, 2020 December 31, 2020 and June 30, 2020 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 a tax benefit (i.e., an unrecognized tax benefit) on its 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 six months ended December 31, 2020, there was no material movement in unrecognized tax benefits including interest and penalties. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. 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 comparable 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. Also, SGI and the Company have a common chief executive officer. 2) SilverTowne, L.P. SilverTowne L.P. is a non-controlling owner of AMST (i.e., the Company's minting operations). 3) Equity method investees. The Company has four investments in privately held entities, each of which is a precious metals retailer and customer of the Company. Depending on the entity, the Company may have one or more of the following in place: (i) an exclusive supplier agreement, subject to certain limitations; (ii) a product fulfillment services and storage agreement; and (iii) the right to appoint a director to the entity's board of directors 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. Reported transactions from the comparable prior period have been updated, as needed, to include the balances and activity according to our current list of related parties. Balances with Related Parties Receivables and Payables, Net As of December 31, 2020 and June 30, 2020, the Company had related party receivables and payables balances as set forth below: in thousands December 31, 2020 June 30, 2020 Receivables Payables Receivables Payables Stack's Bowers Galleries $ 325 (1) $ — $ 7,981 $ — Equity method investees 4,716 (2) 6,074 (3) 5,301 3,421 SilverTowne 238 (2) — 77 — $ 5,279 $ 6,074 $ 13,359 $ 3,421 (1) Balance principally includes two secured lines of credit with a balance of $0 and $0.1 million (shown as a component of secured loans receivable); and $0.2 million of receivables, net (shown as components of receivables, and derivative assets). See "Secured Loans Receivable” below. (2) Balance primarily represents receivables, net (shown as components of receivables, derivative assets and other long-term assets). See "Other Long-term Assets” below. (3) Balance primarily represents payables, net (shown as components of accounts payables and derivative liabilities). Long-term Investments As of December 31, 2020 and June 30, 2020, the aggregate carrying balance of the equity method investments was $30.0 million and $16.8 million, respectively (see Note 9 Secured Loans Receivable On September 19, 2017, CFC entered into a loan agreement with Stack's Bowers Galleries providing a secured line of credit, bearing interest at a competitive rate per annum, with a maximum borrowing line (subject to temporary increases) of $5.3 million. The loan is secured by precious metals and numismatic products. As of December 31, 2020 and June 30, 2020, the outstanding principal balance of this loan was $0.1 million and $0.7 million, respectively. 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. As of December 31, 2020 and June 30, 2020, the outstanding principal balance of this loan was $0.0 million and $8.0 million, respectively. Other Long-term Assets On September 19, 2019, the Company, as lender, entered into a convertible revolving credit facility with one of its privately-held customers (the borrower) that provides the borrower an aggregate principal amount of up to $4.0 million, bearing interest at 12.0% per annum. The convertible revolving credit facility collateral includes all: (i) account receivables; (ii) inventory; (iii) fixed assets; (iv) intellectual property; (v) contract rights; and (vi) deposit accounts, in each case subordinated to an unrelated third-party lender’s security interest. As of December 31, 2020 and June 30, 2020, the carrying value of the convertible revolving credit facility was $2.5 million and $3.5 million, respectively. (See Note 2 for further details.) Activity with Related Parties Sales and Purchases During the three and six months ended December 31, 2020 and 2019, the Company made sales and purchases to various companies, which have been deemed to be related parties, as follows: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Sales Purchases Sales Purchases Sales Purchases Sales Purchases Stack's Bowers Galleries $ 14,877 $ 14,322 $ 7,764 $ 4,407 $ 36,831 $ 36,335 $ 18,765 $ 21,166 Equity method investees 391,617 5,326 178,006 6,487 872,117 7,872 353,550 21,326 SilverTowne L.P. 2,720 — 2,192 74 6,837 4,769 3,719 655 $ 409,214 $ 19,648 $ 187,962 $ 10,968 $ 915,785 $ 48,976 $ 376,034 $ 43,147 Interest Income During the three and six months ended December 31, 2020 and 2019, the Company earned interest income related to loans made to Stack's Bowers Galleries and to financing arrangements (including repurchase agreements) with affiliated companies, as set forth below: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Interest income from secured loans receivables $ 83 $ 243 $ 153 $ 541 Interest income from finance products and repurchase arrangements 1,940 1,513 3,807 3,140 $ 2,023 $ 1,756 $ 3,960 $ 3,681 Other Income During the three months ended December 31, 2020 and 2019, the Company recorded its proportional share of its equity method investee's net income as other income that totaled $2,362,000 and $102,000, respectively. During the six months ended December 31, 2020 and 2019, the Company recorded its proportional share of its equity method investee's net income as other income that totaled $6,488,000 and $114,000, respectively. During the three months ended December 31, 2020 and 2019, the Company earned royalty income related to one of CFC's secured lending agreements with Stack's Bowers Galleries that totaled $205,000 and $47,000, respectively. During the six months ended December 31, 2020 and 2019, the Company earned royalty income related to one of CFC's secured lending agreements with Stack's Bowers Galleries that totaled $564,000 and $89,000, respectively. |
Financing Agreements
Financing Agreements | 6 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing Agreements | 14. Lines of Credit Effective March 27, 2020, through an amendment and restatement of the applicable credit documents, A-Mark renewed its uncommitted demand borrowing facility ("Trading Credit Facility") with a syndicate of banks. Under the agreements, Coöperatieve Rabobank U.A. acts as joint lead lender and administrative agent and Natixis acts as joint lead arranger and syndication agent for the syndicate. The Trading Credit Facility is secured by substantially all of the Company’s assets on a first priority basis. As of December 31, 2020, and as a result of various amendments, the Trading Credit Facility provided the Company with access up to The Company routinely uses the Trading Credit Facility to purchase and finance precious metals and for operating cash flow purposes. Amounts under the Trading Credit Facility bear interest based on London Interbank Offered Rate (“LIBOR”) plus a 2.50% margin for revolving credit line loans and a 4.50% margin for bridge loans (that is, for loans that exceed the available revolving credit line). The one-month LIBOR rate was approximately 0.14% and 0.16% as of December 31, 2020 and June 30, 2020, respectively. Borrowings are due on demand and totaled $175.0 million and $135.0 million at December 31, 2020 and June 30, 2020, respectively. The amounts available under the respective borrowing facilities 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 $64.1 million and $76.3 million as determined on December 31, 2020 and June 30, 2020, respectively. The Trading Credit Facility has certain restrictive financial covenants, including one requiring the Company to maintain a minimum tangible net worth. As of December 31, 2020 the minimum tangible net worth financial covenant under the Trading Credit Facility was $55.7 million. The Company is in compliance with all restrictive financial covenants as of December 31, 2020. For the three months ended December 31, 2020 and 2019, interest expense related to the Company’s lines of credit totaled $1.6 million and $1.9 million, which represents 31.6% and 37.6%, respectively, of the total interest expense recognized. Our lines of credit carried a daily weighted average effective interest rate of 2.97% and 4.22%, respectively, for the three months ended December 31, 2020 and 2019. For the six months ended December 31, 2020 and 2019, interest expense related to the Company’s lines of credit totaled $3.0 million and $4.1 million, which represents 31.7% and 39.6%, respectively of the total interest expense recognized. Our lines of credit carried a daily weighted average effective interest rate of 2.96% and 4.49%, respectively, for the six months ended December 31, 2020 and 2019. 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 AMCF applied the net proceeds from the sale of the Notes to 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 December 31, 2020, the consolidated carrying balance of the Notes was $92.9 million (which excludes the $5.0 million note that the Company retained), and the remaining unamortized loan cost balance was approximately $2.1 million, which is amortized using the effective interest method through the maturity date. As of December 31, 2020, 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 December 31, 2020 and 2019, the interest expense related to the Notes (including loan amortization costs) totaled $1.4 million and $1.3 million, which represents 28.2% and 26.2% of the total interest expense recognized by the Company. For the three months ended December 31, 2020 and 2019, the Notes' weighted average effective interest rate was 5.88% and 5.88%, respectively. For the six months ended December 31, 2020 and 2019, the interest expense related to the Notes (including loan amortization costs) totaled $2.8 million and $2.8 million, which represents 30.4% and 27.4% of the total interest expense recognized by the Company, respectively. For the six months ended December 31, 2020 and 2019, 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 $141.8 million as of December 31, 2020, with corresponding metals totaling $120.3 million and $21.5 million included in precious metals held under financing arrangements and inventories, respectively, on the condensed consolidated December 31, 2020 balance sheet. The Company recorded liabilities on borrowed metals with market values totaling $168.2 million as of June 30, 2020 with corresponding metals totaling $148.9 million and $19.3 million included in precious metals held under financing arrangements and inventories, respectively, on the condensed consolidated June 30, 2020 balance sheet. 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, is 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 obligation totaled $272.5 million and $74.7 million as of December 31, 2020 and June 30, 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Refer to Note 2 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 2020 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 2020 Annual Report. COVID-19 The Company is exposed to the effects of the COVID-19 pandemic. The extent to which this outbreak impacts our results of operations, cash flows and financial condition will depend on future developments, which are highly uncertain and unpredictable, including new information which may emerge concerning the severity and duration of this outbreak and the actions taken by governmental authorities and us to contain it or treat its impact. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 16. Share Repurchase Program In April 2018, the Company's Board of Directors approved a share repurchase program which authorized 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 December 31, 2020, no shares had been repurchased under the program. Dividends On September 3, 2020, the Company's Board of Directors declared a non-recurring special dividend non-recurring special dividend six months ended December 31, 2020 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 December 31, 2020, 188,664 shares were authorized for issuance under the 2014 Plan, which terminates in 2027. 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 and other stock-based awards (which may include outright grants of shares). The 2014 Plan also authorizes grants of performance-based, market-based, and cash incentive awards. 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 to 250,000 shares in any fiscal 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 December 13, 2022. Stock Options During the three months ended December 31, 2020 and 2019, the Company incurred $209,839 and $237,665 of compensation expense related to stock options, respectively. Two obligatory events were triggered as a result of the non-recurring special dividends declared on September 3, 2020 and October 29, 2020. 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 dividend. Both these events decreased the exercise price of each stock option by $1.50 per dividend. This was effective on the date of record which was September 21, 2020 and November 23, 2020. The fair value of the options before and after these events were unchanged and therefore no incremental stock-based compensation was recorded The following table summarizes the stock option activity for the six months ended December 31, 2020. Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (in thousands) Weighted Average Grant Date Fair Value Per Award Outstanding at June 30, 2020 1,249,813 $ 12.27 $ 6,061 $ 5.34 Granted 55,000 $ 24.62 Exercises (107,839 ) $ 14.42 Cancellations, expirations and forfeitures (1,600 ) $ 20.16 Outstanding at December 31, 2020 1,195,374 $ 12.63 $ 15,621 $ 5.52 Exercisable at December 31, 2020 758,255 $ 17.16 $ 8,713 $ 5.92 Following is a summary of the status of stock options outstanding at December 31, 2020 and reflects the adjusted stock option prices: Exercise Price Ranges Options Outstanding Options Exercisable From To Number of Shares Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $ — $ 10.00 526,886 6.09 $ 6.81 223,322 2.22 $ 6.42 $ 10.01 $ 15.00 209,321 6.95 $ 11.46 130,766 6.34 $ 11.76 $ 15.01 $ 25.00 444,167 5.69 $ 19.52 404,167 5.29 $ 19.21 $ 25.01 $ 60.00 15,000 9.82 $ 29.83 — — $ — 1,195,374 6.14 $ 12.63 758,255 4.57 $ 14.16 The following table summarizes the nonvested stock option activity for the six months ended December 31, 2020. Options Weighted Average Grant Date Fair Value Per Award Nonvested Outstanding at June 30, 2020 423,002 $ 4.14 Granted 55,000 $ 9.99 Vested (40,883 ) $ 4.74 Nonvested Outstanding at December 31, 2020 437,119 $ 4.82 Valuation and Other Significant Assumptions of Equity Awards Issued The Company used the Black-Scholes pricing model, which used various inputs such as the estimated common share price, the risk-free interest rate, volatility, expected life and dividend yield, all of which are estimates, to determine the estimated grant-date fair value of its stock options issued. 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 | 6 Months Ended |
Dec. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Customer and Supplier Concentrations | 17. Customer Concentration Customers providing 10 percent or more of the Company's revenues for the three or six months ended December 31, 2020 are presented on a comparative basis, with their corresponding balances for the three and six months ended December 31, 2020 and 2019 in the table below: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Amount Percent Amount Percent Amount Percent Amount Percent Total revenue $ 1,518,744 100.0 % $ 1,055,590 100.0 % $ 3,384,860 100.0 % $ 2,536,604 100.0 % Customer concentrations HSBC Bank USA (1) $ 175,306 11.6 % $ 126,581 12.0 % $ 339,695 10.0 % $ 398,780 15.7 % Customer A 220,509 14.5 % 86,407 8.2 % 604,937 17.9 % 157,735 6.2 % $ 395,815 26.1 % $ 212,988 20.2 % $ 944,632 27.9 % $ 556,515 21.9 % (1) Sales with this trading partner includes sales on forward contracts that are entered into for hedging purposes rather than sales characterized with the physical delivery of precious metal product. No single customer provided 10 percent or more of the Company's accounts receivable or secured loan receivable balances as of December 31, 2020 and June 30, 2020. 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 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 | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | The Company evaluates segment reporting in accordance with FASB ASC 280, Segment Reporting 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 Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Revenue by segment (1)(2) Wholesale Sales & Ancillary Services⁽³⁾ $ 1,477,489 $ 1,038,154 $ 3,291,197 $ 2,499,087 Direct Sales 41,255 (a) 17,436 (b) 93,663 (c) 37,517 (d) $ 1,518,744 $ 1,055,590 $ 3,384,860 $ 2,536,604 (1) Inter-segment purchases from and sales to the Direct Sales segment are transacted at Wholesale Sales & Ancillary Services segment's prices, which is consistent with arms-length transactions with third-parties. (2) 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. (3) The elimination of inter-segment sales are reflected in the Wholesale Sales & Ancillary Services segment. (a) Includes $2.1 million of inter-segment sales from the Direct Sales segment to the Wholesale Sales & Ancillary Services segment. (b) Includes $4.8 million of inter-segment sales from the Direct Sales segment to the Wholesale Sales & Ancillary Services segment. (c) Includes $6.9 million of inter-segment sales from the Direct Sales segment to the Wholesale Sales & Ancillary Services segment. (d) Includes $13.1 million of inter-segment sales from the Direct Sales segment to the Wholesale Sales & Ancillary Services segment. in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Revenue by geographic region (as determined by the shipping or billing address or where the services were performed): United States $ 1,157,407 $ 781,043 $ 2,616,417 $ 1,886,664 Europe 127,015 93,308 246,923 155,410 North America, excluding United States 223,827 166,835 481,072 467,232 Asia Pacific 8,303 12,822 23,435 18,935 Africa — — — 31 Australia 2,192 1,582 17,013 8,332 $ 1,518,744 $ 1,055,590 $ 3,384,860 $ 2,536,604 Gross Profit and Gross Margin Percentage in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Gross profit by segment (1) Wholesale Sales & Ancillary Services $ 13,245 $ 6,597 $ 43,867 $ 13,357 Direct Sales 5,506 1,534 11,029 3,114 Total gross profit $ 18,751 $ 8,131 $ 54,896 $ 16,471 Gross margin percentage by segment (1) Wholesale Sales & Ancillary Services 0.896 % 0.635 % 1.333 % 0.534 % Direct Sales 13.346 % 8.798 % 11.775 % 8.300 % Weighted average gross margin percentage 1.235 % 0.770 % 1.622 % 0.649 % (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 Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Operating income (expense) by segment Wholesale Sales & Ancillary Services Selling, general and administrative expenses $ (6,685 ) $ (5,477 ) $ (14,292 ) $ (11,279 ) Interest income $ 2,498 $ 2,230 $ 4,936 $ 4,492 Interest expense $ (2,915 ) $ (2,444 ) $ (5,863 ) $ (5,270 ) Other income, net $ 2,362 $ 102 $ 6,488 $ 114 Unrealized losses on foreign exchange $ 19 $ 125 $ (78 ) $ 3 Secured Lending Selling, general and administrative expenses $ (507 ) $ (384 ) $ (1,003 ) $ (732 ) Interest income $ 2,035 $ 4,002 $ 3,580 $ 7,508 Interest expense $ (2,122 ) $ (2,637 ) $ (3,467 ) $ (4,953 ) Other income, net $ 205 $ 47 $ 564 $ 89 Direct Sales Selling, general and administrative expenses $ (1,841 ) $ (2,009 ) $ (3,744 ) $ (4,129 ) Other expense, net $ — $ 1 $ — $ (219 ) Net income (loss) before provision for income taxes in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net income (loss) before provision for income taxes by segment Wholesale Sales & Ancillary Services $ 8,524 $ 1,133 $ 35,058 $ 1,417 Secured Lending (389 ) 1,028 (326 ) 1,912 Direct Sales 3,665 (474 ) 7,285 (1,234 ) $ 11,800 $ 1,687 $ 42,017 $ 2,095 Depreciation and Amortization in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Depreciation and amortization by segment Wholesale Sales & Ancillary Services $ (219 ) $ (403 ) $ (424 ) $ (800 ) Secured Lending (88 ) (19 ) (176 ) (35 ) Direct Sales (198 ) (244 ) (406 ) (499 ) $ (505 ) $ (666 ) $ (1,006 ) $ (1,334 ) Advertising expense in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Advertising expense by segment Wholesale Sales & Ancillary Services $ (78 ) $ (12 ) $ (143 ) $ (68 ) Secured Lending (43 ) (2 ) (68 ) (5 ) Direct Sales (501 ) (332 ) (1,111 ) (736 ) $ (622 ) $ (346 ) $ (1,322 ) $ (809 ) Precious metals held under financing arrangements in thousands December 31, 2020 June 30, 2020 Precious metals held under financing arrangements by segment Wholesale Sales & Ancillary Services $ 132,366 $ 157,609 Secured Lending 27,889 20,968 $ 160,255 $ 178,577 Inventories in thousands December 31, 2020 June 30, 2020 Inventories by segment Wholesale Sales & Ancillary Services $ 500,281 $ 289,069 Secured Lending 7,907 24,057 Direct Sales 9,494 8,155 $ 517,682 $ 321,281 in thousands December 31, 2020 June 30, 2020 Inventories by geographic region United States $ 485,064 $ 287,960 Europe 10,543 19,531 North America, excluding United States 20,486 13,735 Asia 1,589 55 $ 517,682 $ 321,281 Total Assets in thousands December 31, 2020 June 30, 2020 Assets by segment Wholesale Sales & Ancillary Services $ 851,460 $ 599,032 Secured Lending 137,859 140,622 Direct Sales 17,807 18,381 $ 1,007,126 $ 758,035 in thousands December 31, 2020 June 30, 2020 Assets by geographic region United States $ 973,281 $ 723,252 Europe 11,770 20,993 North America, excluding United States 20,486 13,735 Asia 1,589 55 $ 1,007,126 $ 758,035 Long-term Assets in thousands December 31, 2020 June 30, 2020 Long-term assets by segment Wholesale Sales & Ancillary Services $ 51,583 $ 39,090 Secured Lending 1,148 1,319 Direct Sales 2,875 3,607 $ 55,606 $ 44,016 in thousands December 31, 2020 June 30, 2020 Long-term assets by geographic region United States $ 55,551 $ 43,963 Europe 55 53 $ 55,606 $ 44,016 Capital Expenditures for Property, Plant, and Equipment in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Capital expenditures on property, plant, and equipment by segment Wholesale Sales & Ancillary Services $ 451 $ 279 $ 924 $ 376 Secured Lending 4 35 4 72 Direct Sales 6 4 9 7 $ 461 $ 318 $ 937 $ 455 Goodwill and Intangible Assets in thousands December 31, 2020 June 30, 2020 Goodwill by segment Wholesale Sales & Ancillary Services $ 8,881 $ 8,881 Direct Sales (1) — — $ 8,881 $ 8,881 (1) Direct Sales segment’s goodwill balance is net of $1.4 million accumulated impairment losses. Intangible Assets in thousands December 31, 2020 June 30, 2020 Intangibles by segment Wholesale Sales & Ancillary Services $ 2,869 $ 2,907 Direct Sales 1,788 2,067 $ 4,657 $ 4,974 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Pending Acquisition On February 8, 2021, the Company entered into a stock purchase agreement with the stockholders of JM Bullion, Inc., a Delaware corporation (“JMB”), for the acquisition of the 79.47% interest in JMB that is not currently owned by the Company. JMB is an e-commerce retailer of gold, silver, copper, platinum and palladium products. The purchase price is approximately $138.3 million, consisting of $103.7 million in cash and $34.6 million in common stock of the Company, valued at $ 2 8 . 9 6 per share, in each case subject to adjustment. The share valuation represents the volume weighted average of the trading prices of the Company’s common stock for the 30 consecutive trading days preceding the date of the purchase agreement. The cash portion of the purchase price will be reduced by an amount equal to 20.53% (which is the Company’s percentage ownership interest in JMB) of the amount of a cash redemption to be made by JMB to its stockholders, other than the Company, prior to the acquisition. In addition, the stock portion of the purchase price will be reduced such that no single stockholder of JMB will own more than 4.8% of the Company’s common stock immediately following the acquisition. If the stock consideration of a selling JMB stockholder is reduced, the cash consideration payable to that JMB stockholder will be increased by an amount equal to 65% of the value of the decrease in stock consideration. The Company intends to finance the cash portion of the purchase price with cash on hand and through any available means of financing, including a public or private equity or convertible debt offering. The acquisition is subject to various closing conditions. The Company anticipates closing the acquisition in the third quarter of the current fiscal year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements reflect the financial condition, results of operations, statement 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, majority owned, and entities that are variable interest entities where the Company is determined to be the primary beneficiary. Our condensed consolidated financial statements include the accounts of A-Mark, AMTAG, TDS, AMGL, AMST, CFC, AMCF, Goldline, AMIP, and PMPP (collectively the “Company”). Intercompany accounts and transactions are eliminated. |
Comprehensive Income | Comprehensive Income For the six months ended December 31, 2020 and 2019, 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 and precious metals inventory. Actual results could materially differ from these estimates. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying interim 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 six months ended December 31, 2020 ending June 30, 2021 2020 (the “2020 June 30, 2020 balances within these interim condensed consolidated financial statements were derived from the aforementioned audited |
Fair Value Measurement | Fair Value Measurement The Fair Value Measurements and Disclosures 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. Concentration of credit risk with respect to receivables is limited due to the large number of customers composing the Company's customer base, the geographic dispersion of the customers, and the collateralization of substantially all receivable balances. 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"). Also, 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 condensed 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. |
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 reconsiders its previous conclusions 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 the 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 ongoing 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 December 31, 2020 and June 30, 2020, are indicated on the table that follows the condensed consolidated balance sheets . AMCF is a VIE because its initial equity investment may be insufficient to maintain its ongoing 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 14 .) |
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 does not have any cash equivalents as of December 31, 2020 and June 30, 2020. As of December 31, 2020 and June 30, 2020, the Company has $0.2 million and $0.2 million, respectively, in a bank account that is restricted and serves as collateral against a standby letter of credit issued by the bank in favor of the landlord for our office space in Los Angeles, California. |
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 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 December 31, 2020 and June 30, 2020, precious metals held under financing arrangements totaled $160.3 million and $178.6 million respectively. The Company’s precious metals held under financing arrangements are marked-to-market. |
Inventories | Inventories The Company's inventory primarily includes bullion and bullion coins, which 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 costs of the raw precious metal, and (ii) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form, and the market value attributable solely to the premium may be readily determined, as it is published by multiple reputable 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 condensed consolidated balance sheets. Our finance leases (previously considered by the Company as capital leases prior to our adoption of ASC 842) are another type of ROU asset, but are classified in the condensed consolidated balance sheets as a component of property, plant, and equipment at the present value of the lease payments. For leases that contain termination options, where the rights to terminate are held by either us, the lessor, or both parties and it is reasonably certain that we will exercise that option, we factor these extended or shortened lease terms into the minimum lease payments. The ROU assets also 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. Our lease agreements do not contain any significant residual value guarantees or material restrictive covenants. Components of operating lease expense for the three and six months ended December 31, 2020 and 2019 were as follows: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Operating lease costs $ 350 $ 350 $ 699 $ 699 Short term and variable lease costs 91 99 224 192 Finance lease costs 5 5 11 11 Sublease income — (27 ) — (54 ) Total lease costs, net $ 446 $ 427 $ 934 $ 848 For the six months ended December 31, 2020 and 2019 At December 31, 2020 was 4.2 years, while 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 December 31, 2020 Years ending June 30, Operating Leases 2021 (6 months remaining) 767 2022 1,313 2023 834 2024 860 2025 816 Thereafter 370 Total lease payments 4,960 Less imputed interest (490 ) $ 4,470 (1) Operating lease liability - current $ 1,362 (2) Operating lease liability - long-term 3,108 (3) $ 4,470 (1) (1) Represents the present value of the capitalized operating lease liabilities as of December 31, 2020. (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 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 commences 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 carrying 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 which are amortized on a straight-line basis over their economic useful lives ranging from three years 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. |
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 the Intangibles - Goodwill and Other Topic 350 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 8 .) 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 8 .) |
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. 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. 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 its equity method 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 VIEs as of December 31, 2020 and June 30, 2020. |
Other Long-Term Assets | Other Long-Term Assets Notes and other receivables, with terms greater than one year, are carried at amortized cost, net of any unamortized origination fees, which are recognized over the life of the note. The determination of an allowance is based on historical experience and, as a result, can differ from actual losses incurred in the future. We charge off receivables at such time as it is determined collection will not occur. On September 19, 2019, the Company, as lender, entered into a convertible revolving credit facility with a privately-held supplier and counterparty (the borrower) that provides the borrower an aggregate principal amount of up to $4.0 million, bearing interest at 12.0% per annum. The facility expires on September 18, 2022. The borrower has the right to prepay the credit facility at any time without premium or penalty. Outstanding principal amounts under the credit facility may, at the lender's discretion, be converted into up to 22.0% of the borrower's issued and outstanding common stock. The credit facility also grants the lender the right to repay the borrower's outstanding unrelated third-party debt, at any time, in exchange for up to 27.5% of the borrower’s issued and outstanding common stock. In the event the borrower sells all or substantially all of its assets or has a change of control during the term of the facility, the lender is entitled to additional interest equal to 10.0% of the gross sales price in excess of $9.9 million. The credit facility collateral includes all: (i) account receivables; (ii) inventory; (iii) fixed assets; (iv) intellectual property; (v) contract rights; and (vi) deposit accounts, in each case subordinated to an unrelated third-party lender’s security interest. Effective October 1, 2020, A-Mark exercised its right to convert $1.0 million of the $3.5 million outstanding convertible revolving credit facility balance and exercised our right to repay in full borrower’s third-party loan, which totaled $5.8 million at the exercise date. As a result, the Company owns 31.2% of borrower’s outstanding common stock. As of December 31, 2020 and June 30, 2020, the carrying value of the convertible revolving credit facility was $2.5 million and $3.5 million, respectively. |
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 All derivative instruments are marked-to-market during the interval between the trade 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 Trade 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 trade order types and the key factors that determine when settlement occurs and when revenue is recognized for each type: • Traditional physical trade orders The quantity, specific product, and price are determined on the trade date. Payment or sufficient credit is verified prior to delivery of the metals on the settlement date. • Consignment trade orders The Company delivers the items requested by the customer prior to establishing a firm trade 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 trade orders The quantity and type of metal is established at the trade 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 trade orders The quantity, specific product, and price are determined at trade 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 trade date). Revenue on margin trade orders is recognized when the order is paid in full and delivered to the customer. • Borrowed precious metals trade 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 trade 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 components of accounts payable and other current liabilities in the condensed consolidated balance sheets. |
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 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 (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 11 . ) |
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 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. In aggregate, these types of service revenues account for less than 1% of the Company's combined revenue from all revenue streams. |
Interest Income | Interest Income In accordance with the Interest • 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 trade 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 trade orders Spot deferred trade orders are a special type of forward delivery trade 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 trade. Even though the contract allows for physical delivery, it rarely occurs for this type of trade. As a result, revenue is not recorded from these transactions, because no product is delivered to the customer. Spot deferred trades 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 trade is open. |
Interest Expense | Interest Expense The Company accounts for interest expense on the following arrangements in accordance with Interest • Borrowings The Company incurs interest expense from its lines of credit, its debt obligations, and notes payable using the effective interest method. (See Note 14 .) 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 trades. 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. |
Other Income and Expense, Net | Other Income and Expense, Net The Company's other income and expense is derived from the Company's proportional interest in the reported net income or loss of our investees that are accounted for under the equity method of accounting (see Note 9 ), royalty income, and costs associated with the purchase of Goldline. |
Advertising | Advertising Advertising expense is recorded as incurred and was $0.6 million and $0.3 million, respectively, for the three months ended December 31, 2020 and 2019. Advertising expense was $1.3 million and $0.8 million, respectively, for the six months ended December 31, 2020 and 2019. |
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 $1.8 million and $1.4 million, respectively, for the three months ended December 31, 2020 and 2019. Shipping and handling costs incurred totaled $5.0 million and $2.8 million, respectively, for the six months ended December 31, 2020 and 2019. |
Share-Based Compensation | Share-Based Compensation The Company accounts for equity awards under the provisions of the Compensation - Stock Compensation Note 16 .) |
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 12 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 (losses) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings (losses) 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 shares for the three and six months ended December 31, 2020 and 2019, is presented below. in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Basic weighted average shares outstanding 7,063 7,031 7,065 7,031 Effect of common stock equivalents — stock issuable under outstanding equity awards 650 25 545 44 Diluted weighted average shares outstanding 7,713 7,056 7,610 7,075 |
Dividends | Dividends Dividends are recorded if and when they are declared by the Board of Directors. On September 3, 2020, the Company's Board of Directors declared a non-recurring special dividend non-recurring special dividend six months ended December 31, 2020 |
Recent Accounting Pronouncements Adopted and Not Yet Adopted | 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”). We adopted ASU No. 2018-15, Intangibles—Goodwill and Other: Internal-Use Software 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 In December 2019, the FASB issued ASU 2019-12 (“ASU 2019-12”), Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes The adoption of this guidance is not expected to have a material impact on our consolidated financial statements In June 2016, the FASB issued ASU No. 2016-13, (“ASU 2016-13”), Financial Instruments - Credit Loss (Topic 326 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Components of Operating Lease Expense | Components of operating lease expense for the three and six months ended December 31, 2020 and 2019 were as follows: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Operating lease costs $ 350 $ 350 $ 699 $ 699 Short term and variable lease costs 91 99 224 192 Finance lease costs 5 5 11 11 Sublease income — (27 ) — (54 ) Total lease costs, net $ 446 $ 427 $ 934 $ 848 |
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 December 31, 2020 Years ending June 30, Operating Leases 2021 (6 months remaining) 767 2022 1,313 2023 834 2024 860 2025 816 Thereafter 370 Total lease payments 4,960 Less imputed interest (490 ) $ 4,470 (1) Operating lease liability - current $ 1,362 (2) Operating lease liability - long-term 3,108 (3) $ 4,470 (1) (1) Represents the present value of the capitalized operating lease liabilities as of December 31, 2020. (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. |
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 shares for the three and six months ended December 31, 2020 and 2019, is presented below. in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Basic weighted average shares outstanding 7,063 7,031 7,065 7,031 Effect of common stock equivalents — stock issuable under outstanding equity awards 650 25 545 44 Diluted weighted average shares outstanding 7,713 7,056 7,610 7,075 |
Assets and Liabilities, at Fa_2
Assets and Liabilities, at Fair Value (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 of December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Carrying Amount Fair value Carrying Amount Fair value Notes payable $ 92,874 $ 102,084 $ 92,517 $ 101,017 |
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 December 31, 2020 and June 30, 2020, aggregated by the level in the fair value hierarchy within which the measurements fall: in thousands December 31, 2020 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) $ 517,673 $ — $ — $ 517,673 Precious metals held under financing arrangements 160,255 — — 160,255 Derivative assets — open sale and purchase commitments, net 57,826 — — 57,826 Derivative assets — forward contracts 23 — — 23 Total assets, valued at fair value $ 735,777 $ — $ — $ 735,777 Liabilities: Liabilities on borrowed metals $ 141,796 $ — $ — $ 141,796 Product financing arrangements 272,531 — — $ 272,531 Derivative liabilities — margin accounts 4,162 — — 4,162 Derivative liabilities — open sale and purchase commitments, net 2,165 — — 2,165 Derivative liabilities — futures contracts 33,129 — — 33,129 Derivative liabilities — forward contracts 11,353 — — 11,353 Total liabilities, valued at fair value $ 465,136 $ — $ — $ 465,136 (1) Commemorative coin inventory totaling $9 thousand is held at lower of cost or net realizable value and thus is excluded from the inventories balance shown in this table. in thousands June 30, 2020 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) $ 321,264 $ — $ — $ 321,264 Precious metals held under financing arrangements 178,577 — — 178,577 Derivative assets — open sale and purchase commitments, net 46,224 — — 46,224 Derivative assets — forward contracts 101 — — 101 Total assets, valued at fair value $ 546,166 $ — $ — $ 546,166 Liabilities: Liabilities on borrowed metals $ 168,206 $ — $ — $ 168,206 Product financing arrangements 74,678 — — 74,678 Derivative liabilities — margin accounts 5,380 — — 5,380 Derivative liabilities — open sale and purchase commitments, net 4,349 — — 4,349 Derivative liabilities — futures contracts 12,477 — — 12,477 Derivative liabilities — forward contracts 3,208 — — 3,208 Total liabilities, valued at fair value $ 268,298 $ — $ — $ 268,298 (1) Commemorative coin inventory totaling $17 thousand is held at lower of cost or net realizable value thus is excluded from the inventories balance shown in this table. |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables consist of the following as of December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Customer trade receivables $ 7,015 $ 6,047 Wholesale trade advances 1,480 10,167 Due from brokers 93,369 32,928 $ 101,864 $ 49,142 |
Secured Loans Receivable (Table
Secured Loans Receivable (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Receivables | Receivables consist of the following as of December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Customer trade receivables $ 7,015 $ 6,047 Wholesale trade advances 1,480 10,167 Due from brokers 93,369 32,928 $ 101,864 $ 49,142 |
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 December 31, 2020 June 30, 2020 Bullion $ 72,599 75.8 % $ 36,445 57.2 % Numismatic and semi-numismatic 23,218 24.2 % 27,265 42.8 % $ 95,817 100.0 % $ 63,710 100.0 % |
Schedule of Financing Receivable Credit Quality Indicators | Below is summary of aggregate outstanding secured loan balances bifurcated into (i) loans with a loan-to-value ratio of 75% or more and (ii) loans with a loan-to-value ratio of less than 75%: in thousands December 31, 2020 June 30, 2020 Loan-to-value of less than 75% $ 89,177 93.1 % $ 58,296 91.5 % Loan-to-value of 75% or more 6,640 6.9 % 5,414 8.5 % $ 95,817 100.0 % $ 63,710 100.0 % |
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 December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Secured loans originated $ 37,865 $ 30,019 Secured loans originated - with a related party 135 8,797 38,000 38,816 Secured loans acquired 57,817 (1) 24,894 (2) $ 95,817 $ 63,710 (1) Includes $6 thousand of loan premium as of December 31, 2020. (2) Includes $6 thousand of loan premium as of June 30, 2020. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Below, our inventory is summarized by classification at December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Inventory held for sale $ 122,107 $ 153,412 Repurchase arrangements with customers 99,964 70,988 Consignment arrangements with customers 1,617 2,842 Commemorative coins, held at lower of cost or net realizable value 9 17 Borrowed precious metals 21,454 19,344 Product financing arrangements, restricted 272,531 74,678 $ 517,682 $ 321,281 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant, and equipment consists of the following at December 31, 2020 and June 30, 2020: in thousands December 31, 2020 June 30, 2020 Office furniture, and fixtures $ 2,153 $ 2,142 Computer equipment 943 900 Computer software 5,289 5,288 Plant equipment 4,198 3,450 Building 446 322 Leasehold improvements 2,804 2,804 Total depreciable assets 15,833 14,906 Less: Accumulated depreciation and amortization (9,956 ) (9,267 ) Land 36 36 Property, plant, and equipment, net $ 5,913 $ 5,675 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and June 30, 2020 is as described below: dollar amounts in thousands December 31, 2020 June 30, 2020 Estimated Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Identifiable intangible assets: Existing customer relationships 5 - 15 $ 8,998 $ (7,582 ) $ — $ 1,416 $ 8,998 $ (7,307 ) $ — $ 1,691 Non-compete and other 3 - 5 2,300 (2,222 ) — 78 2,300 (2,187 ) — 113 Employment agreement 3 295 (295 ) — — 295 (288 ) — 7 Intangibles subject to amortization 11,593 (10,099 ) — 1,494 11,593 (9,782 ) — 1,811 Trade names and trademarks Indefinite 4,454 — (1,291 ) 3,163 4,454 — (1,291 ) 3,163 Identifiable intangible assets $ 16,047 $ (10,099 ) $ (1,291 ) 4,657 $ 16,047 $ (9,782 ) $ (1,291 ) $ 4,974 Goodwill Indefinite $ 10,245 $ — $ (1,364 ) $ 8,881 $ 10,245 $ — $ (1,364 ) $ 8,881 |
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 2021 (6 months remaining) 312 2022 601 2023 158 2024 77 2025 60 Thereafter 286 Total $ 1,494 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2020 June 30, 2020 Entity Carrying Value Ownership Percentage Carrying Value Ownership Percentage (in thousands) (in thousands) Company A $ 3,113 7.4 % $ 2,529 7.4 % Company B 18,876 20.8 % 13,296 20.6 % Company C 1,012 10.0 % 938 10.0 % Company D 7,012 31.2 % — (— %) $ 30,013 $ 16,763 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 June 30, 2020 Trade payables to customers $ 1,259 $ 2,316 Advances from customers 128,010 129,624 Deferred revenue 10,712 6,141 Other accounts payable 2,391 2,849 $ 142,372 $ 140,930 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Transactions (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and June 30, 2020. in thousands December 31, 2020 June 30, 2020 Gross Derivative Amounts Netted Cash Collateral Pledge Net Derivative Gross Derivative Amounts Netted Cash Collateral Pledge Net Derivative Nettable derivative assets: Open sale and purchase commitments $ 66,183 $ (8,357 ) $ — $ 57,826 $ 48,896 $ (2,672 ) $ — $ 46,224 Forward contracts 23 — — 23 101 — — 101 $ 66,206 $ (8,357 ) $ — $ 57,849 $ 48,997 $ (2,672 ) $ — $ 46,325 Nettable derivative liabilities: Open sale and purchase commitments $ 2,638 $ (473 ) $ — $ 2,165 5,653 $ (1,304 ) $ — $ 4,349 Margin accounts 6,102 — (1,940 ) 4,162 14,616 — (9,236 ) 5,380 Future contracts 33,129 — — 33,129 12,477 — — 12,477 Forward contracts 11,353 — — 11,353 3,208 — — 3,208 $ 53,222 $ (473 ) $ (1,940 ) $ 50,809 $ 35,954 $ (1,304 ) $ (9,236 ) $ 25,414 |
Summary of Net Gains (Losses) on Derivative Instruments | Below is a summary of the net gains (losses) on derivative instruments for the three and six months ended December 31, 2020 and 2019. in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Gains (losses) on derivative instruments: Unrealized (losses) gains on open future commodity and forward contracts and open sale and purchase commitments, net $ (92,552 ) $ (15,356 ) $ (14,275 ) $ 9,755 Realized (losses) gains on future commodity contracts, net (2,579 ) 4,334 (107,414 ) (12,111 ) $ (95,131 ) $ (11,022 ) $ (121,689 ) $ (2,356 ) |
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 December 31, 2020 and June 30, 2020. in thousands December 31, 2020 June 30, 2020 Inventories $ 517,682 $ 321,281 Precious metals held under financing arrangements 160,255 178,577 677,937 499,858 Less unhedgeable inventories: Commemorative coin inventory, held at lower of cost or net realizable value (9 ) (17 ) Premium on metals position (11,967 ) (3,684 ) Precious metal value not hedged (11,976 ) (3,701 ) 665,961 496,157 Commitments at market: Open inventory purchase commitments 723,536 514,553 Open inventory sales commitments (309,332 ) (309,134 ) Margin sale commitments (6,102 ) (14,652 ) In-transit inventory no longer subject to market risk (6,728 ) (3,605 ) Unhedgeable premiums on open commitment positions 4,948 2,779 Borrowed precious metals (141,796 ) (168,206 ) Product financing arrangements (272,531 ) (74,678 ) Advances on industrial metals 696 318 (7,309 ) (52,625 ) Precious metal subject to price risk 658,652 443,532 Precious metal subject to derivative financial instruments: Precious metals forward contracts at market values 126,154 73,948 Precious metals futures contracts at market values 532,044 369,842 Total market value of derivative financial instruments 658,198 443,790 Net precious metals subject to commodity price risk $ 454 $ (258 ) |
Schedule of Outstanding Commitments and Open Forward and Future Contracts | As of December 31, 2020 and June 30, 2020, the Company had the following outstanding commitments and open forward and future contracts: in thousands December 31, 2020 June 30, 2020 Purchase commitments $ 723,536 $ 514,553 Sales commitments $ (309,332 ) $ (309,134 ) Margin sales commitments $ (6,102 ) $ (14,652 ) Open forward contracts $ 126,154 $ 73,948 Open futures contracts $ 532,044 $ 369,842 |
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 December 31, 2020 June 30, 2020 Foreign exchange forward contracts $ 2,302 $ 4,599 Open sale and purchase commitment transactions, net $ 1,442 $ 3,475 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Net Income from Operations before Provision for Income Taxes | Net income from operations before provision for income taxes is shown below: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 U.S. $ 11,794 $ 1,681 $ 42,005 $ 2,082 Foreign 6 6 12 13 $ 11,800 $ 1,687 $ 42,017 $ 2,095 |
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 six months ended December 31, 2020 and 2019 are shown below: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Federal $ 2,344 $ 353 $ 8,193 $ 438 State and local 184 78 842 97 Foreign 58 1 62 2 Income tax expense $ 2,586 $ 432 $ 9,097 $ 537 Effective tax rate 21.9 % 25.6 % 21.7 % 25.6 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Receivable and Payables Balances | As of December 31, 2020 and June 30, 2020, the Company had related party receivables and payables balances as set forth below: in thousands December 31, 2020 June 30, 2020 Receivables Payables Receivables Payables Stack's Bowers Galleries $ 325 (1) $ — $ 7,981 $ — Equity method investees 4,716 (2) 6,074 (3) 5,301 3,421 SilverTowne 238 (2) — 77 — $ 5,279 $ 6,074 $ 13,359 $ 3,421 (1) Balance principally includes two secured lines of credit with a balance of $0 and $0.1 million (shown as a component of secured loans receivable); and $0.2 million of receivables, net (shown as components of receivables, and derivative assets). See "Secured Loans Receivable” below. (2) Balance primarily represents receivables, net (shown as components of receivables, derivative assets and other long-term assets). See "Other Long-term Assets” below. (3) Balance primarily represents payables, net (shown as components of accounts payables and derivative liabilities). |
Schedule of Sales and Purchases of Related Parties | During the three and six months ended December 31, 2020 and 2019, the Company made sales and purchases to various companies, which have been deemed to be related parties, as follows: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Sales Purchases Sales Purchases Sales Purchases Sales Purchases Stack's Bowers Galleries $ 14,877 $ 14,322 $ 7,764 $ 4,407 $ 36,831 $ 36,335 $ 18,765 $ 21,166 Equity method investees 391,617 5,326 178,006 6,487 872,117 7,872 353,550 21,326 SilverTowne L.P. 2,720 — 2,192 74 6,837 4,769 3,719 655 $ 409,214 $ 19,648 $ 187,962 $ 10,968 $ 915,785 $ 48,976 $ 376,034 $ 43,147 |
Schedule of Interest Income | During the three and six months ended December 31, 2020 and 2019, the Company earned interest income related to loans made to Stack's Bowers Galleries and to financing arrangements (including repurchase agreements) with affiliated companies, as set forth below: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Interest income from secured loans receivables $ 83 $ 243 $ 153 $ 541 Interest income from finance products and repurchase arrangements 1,940 1,513 3,807 3,140 $ 2,023 $ 1,756 $ 3,960 $ 3,681 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the six months ended December 31, 2020. Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (in thousands) Weighted Average Grant Date Fair Value Per Award Outstanding at June 30, 2020 1,249,813 $ 12.27 $ 6,061 $ 5.34 Granted 55,000 $ 24.62 Exercises (107,839 ) $ 14.42 Cancellations, expirations and forfeitures (1,600 ) $ 20.16 Outstanding at December 31, 2020 1,195,374 $ 12.63 $ 15,621 $ 5.52 Exercisable at December 31, 2020 758,255 $ 17.16 $ 8,713 $ 5.92 |
Summary of Status of Stock Option Outstanding and Adjusted Stock Option Price | Following is a summary of the status of stock options outstanding at December 31, 2020 and reflects the adjusted stock option prices: Exercise Price Ranges Options Outstanding Options Exercisable From To Number of Shares Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $ — $ 10.00 526,886 6.09 $ 6.81 223,322 2.22 $ 6.42 $ 10.01 $ 15.00 209,321 6.95 $ 11.46 130,766 6.34 $ 11.76 $ 15.01 $ 25.00 444,167 5.69 $ 19.52 404,167 5.29 $ 19.21 $ 25.01 $ 60.00 15,000 9.82 $ 29.83 — — $ — 1,195,374 6.14 $ 12.63 758,255 4.57 $ 14.16 |
Summary of Nonvested Stock Option Activity | The following table summarizes the nonvested stock option activity for the six months ended December 31, 2020. Options Weighted Average Grant Date Fair Value Per Award Nonvested Outstanding at June 30, 2020 423,002 $ 4.14 Granted 55,000 $ 9.99 Vested (40,883 ) $ 4.74 Nonvested Outstanding at December 31, 2020 437,119 $ 4.82 |
Customer and Supplier Concent_2
Customer and Supplier Concentrations (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Schedule of Concentration of Risk, by Risk Factor | Customers providing 10 percent or more of the Company's revenues for the three or six months ended December 31, 2020 are presented on a comparative basis, with their corresponding balances for the three and six months ended December 31, 2020 and 2019 in the table below: in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Amount Percent Amount Percent Amount Percent Amount Percent Total revenue $ 1,518,744 100.0 % $ 1,055,590 100.0 % $ 3,384,860 100.0 % $ 2,536,604 100.0 % Customer concentrations HSBC Bank USA (1) $ 175,306 11.6 % $ 126,581 12.0 % $ 339,695 10.0 % $ 398,780 15.7 % Customer A 220,509 14.5 % 86,407 8.2 % 604,937 17.9 % 157,735 6.2 % $ 395,815 26.1 % $ 212,988 20.2 % $ 944,632 27.9 % $ 556,515 21.9 % (1) Sales with this trading partner includes sales on forward contracts that are entered into for hedging purposes rather than sales characterized with the physical delivery of precious metal product. No single customer provided 10 percent or more of the Company's accounts receivable or secured loan receivable balances as of December 31, 2020 and June 30, 2020. |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Revenue in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Revenue by segment (1)(2) Wholesale Sales & Ancillary Services⁽³⁾ $ 1,477,489 $ 1,038,154 $ 3,291,197 $ 2,499,087 Direct Sales 41,255 (a) 17,436 (b) 93,663 (c) 37,517 (d) $ 1,518,744 $ 1,055,590 $ 3,384,860 $ 2,536,604 (1) Inter-segment purchases from and sales to the Direct Sales segment are transacted at Wholesale Sales & Ancillary Services segment's prices, which is consistent with arms-length transactions with third-parties. (2) 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. (3) The elimination of inter-segment sales are reflected in the Wholesale Sales & Ancillary Services segment. (a) Includes $2.1 million of inter-segment sales from the Direct Sales segment to the Wholesale Sales & Ancillary Services segment. (b) Includes $4.8 million of inter-segment sales from the Direct Sales segment to the Wholesale Sales & Ancillary Services segment. (c) Includes $6.9 million of inter-segment sales from the Direct Sales segment to the Wholesale Sales & Ancillary Services segment. (d) Includes $13.1 million of inter-segment sales from the Direct Sales segment to the Wholesale Sales & Ancillary Services segment. in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Revenue by geographic region (as determined by the shipping or billing address or where the services were performed): United States $ 1,157,407 $ 781,043 $ 2,616,417 $ 1,886,664 Europe 127,015 93,308 246,923 155,410 North America, excluding United States 223,827 166,835 481,072 467,232 Asia Pacific 8,303 12,822 23,435 18,935 Africa — — — 31 Australia 2,192 1,582 17,013 8,332 $ 1,518,744 $ 1,055,590 $ 3,384,860 $ 2,536,604 Gross Profit and Gross Margin Percentage in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Gross profit by segment (1) Wholesale Sales & Ancillary Services $ 13,245 $ 6,597 $ 43,867 $ 13,357 Direct Sales 5,506 1,534 11,029 3,114 Total gross profit $ 18,751 $ 8,131 $ 54,896 $ 16,471 Gross margin percentage by segment (1) Wholesale Sales & Ancillary Services 0.896 % 0.635 % 1.333 % 0.534 % Direct Sales 13.346 % 8.798 % 11.775 % 8.300 % Weighted average gross margin percentage 1.235 % 0.770 % 1.622 % 0.649 % (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 Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Operating income (expense) by segment Wholesale Sales & Ancillary Services Selling, general and administrative expenses $ (6,685 ) $ (5,477 ) $ (14,292 ) $ (11,279 ) Interest income $ 2,498 $ 2,230 $ 4,936 $ 4,492 Interest expense $ (2,915 ) $ (2,444 ) $ (5,863 ) $ (5,270 ) Other income, net $ 2,362 $ 102 $ 6,488 $ 114 Unrealized losses on foreign exchange $ 19 $ 125 $ (78 ) $ 3 Secured Lending Selling, general and administrative expenses $ (507 ) $ (384 ) $ (1,003 ) $ (732 ) Interest income $ 2,035 $ 4,002 $ 3,580 $ 7,508 Interest expense $ (2,122 ) $ (2,637 ) $ (3,467 ) $ (4,953 ) Other income, net $ 205 $ 47 $ 564 $ 89 Direct Sales Selling, general and administrative expenses $ (1,841 ) $ (2,009 ) $ (3,744 ) $ (4,129 ) Other expense, net $ — $ 1 $ — $ (219 ) Net income (loss) before provision for income taxes in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net income (loss) before provision for income taxes by segment Wholesale Sales & Ancillary Services $ 8,524 $ 1,133 $ 35,058 $ 1,417 Secured Lending (389 ) 1,028 (326 ) 1,912 Direct Sales 3,665 (474 ) 7,285 (1,234 ) $ 11,800 $ 1,687 $ 42,017 $ 2,095 Depreciation and Amortization in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Depreciation and amortization by segment Wholesale Sales & Ancillary Services $ (219 ) $ (403 ) $ (424 ) $ (800 ) Secured Lending (88 ) (19 ) (176 ) (35 ) Direct Sales (198 ) (244 ) (406 ) (499 ) $ (505 ) $ (666 ) $ (1,006 ) $ (1,334 ) Advertising expense in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Advertising expense by segment Wholesale Sales & Ancillary Services $ (78 ) $ (12 ) $ (143 ) $ (68 ) Secured Lending (43 ) (2 ) (68 ) (5 ) Direct Sales (501 ) (332 ) (1,111 ) (736 ) $ (622 ) $ (346 ) $ (1,322 ) $ (809 ) Precious metals held under financing arrangements in thousands December 31, 2020 June 30, 2020 Precious metals held under financing arrangements by segment Wholesale Sales & Ancillary Services $ 132,366 $ 157,609 Secured Lending 27,889 20,968 $ 160,255 $ 178,577 Inventories in thousands December 31, 2020 June 30, 2020 Inventories by segment Wholesale Sales & Ancillary Services $ 500,281 $ 289,069 Secured Lending 7,907 24,057 Direct Sales 9,494 8,155 $ 517,682 $ 321,281 in thousands December 31, 2020 June 30, 2020 Inventories by geographic region United States $ 485,064 $ 287,960 Europe 10,543 19,531 North America, excluding United States 20,486 13,735 Asia 1,589 55 $ 517,682 $ 321,281 Total Assets in thousands December 31, 2020 June 30, 2020 Assets by segment Wholesale Sales & Ancillary Services $ 851,460 $ 599,032 Secured Lending 137,859 140,622 Direct Sales 17,807 18,381 $ 1,007,126 $ 758,035 in thousands December 31, 2020 June 30, 2020 Assets by geographic region United States $ 973,281 $ 723,252 Europe 11,770 20,993 North America, excluding United States 20,486 13,735 Asia 1,589 55 $ 1,007,126 $ 758,035 Long-term Assets in thousands December 31, 2020 June 30, 2020 Long-term assets by segment Wholesale Sales & Ancillary Services $ 51,583 $ 39,090 Secured Lending 1,148 1,319 Direct Sales 2,875 3,607 $ 55,606 $ 44,016 in thousands December 31, 2020 June 30, 2020 Long-term assets by geographic region United States $ 55,551 $ 43,963 Europe 55 53 $ 55,606 $ 44,016 Capital Expenditures for Property, Plant, and Equipment in thousands Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Capital expenditures on property, plant, and equipment by segment Wholesale Sales & Ancillary Services $ 451 $ 279 $ 924 $ 376 Secured Lending 4 35 4 72 Direct Sales 6 4 9 7 $ 461 $ 318 $ 937 $ 455 Goodwill and Intangible Assets in thousands December 31, 2020 June 30, 2020 Goodwill by segment Wholesale Sales & Ancillary Services $ 8,881 $ 8,881 Direct Sales (1) — — $ 8,881 $ 8,881 (1) Direct Sales segment’s goodwill balance is net of $1.4 million accumulated impairment losses. Intangible Assets in thousands December 31, 2020 June 30, 2020 Intangibles by segment Wholesale Sales & Ancillary Services $ 2,869 $ 2,907 Direct Sales 1,788 2,067 $ 4,657 $ 4,974 |
Description of Business - Addit
Description of Business - Additional Information (Details) | 6 Months Ended |
Dec. 31, 2020reportable_segments | |
Description Of Business [Line Items] | |
Number of reportable segments | 3 |
A Mark Precious Metals, Inc | AM&ST Associates, LLC | |
Description Of Business [Line Items] | |
Percentage of ownership owned by parent | 69.00% |
A Mark Precious Metals, Inc | SilverTowne L.P. | AM&ST Associates, LLC | |
Description Of Business [Line Items] | |
Percentage of ownership owned by noncontrolling Owners | 31.00% |
Precious Metals Purchasing Partners, LLC | |
Description Of Business [Line Items] | |
Percentage of ownership percentage | 50.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Oct. 29, 2020 | Oct. 01, 2020 | Sep. 03, 2020 | Sep. 19, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Restricted cash | $ 200,000 | $ 200,000 | $ 200,000 | ||||||||
Notice period to terminate contract | 14 days | ||||||||||
Precious metals held under financing arrangements | [1] | $ 160,255,000 | $ 160,255,000 | 178,577,000 | |||||||
Operating lease payments | $ 800,000 | $ 700,000 | |||||||||
Operating lease term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | |||||||||
Operating lease (percent) | 4.90% | 4.90% | |||||||||
Percentage of investments in privately-held entities accounted under equity method | 31.20% | ||||||||||
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% | ||||||||||
Advertising expense | $ 622,000 | $ 346,000 | $ 1,322,000 | 809,000 | |||||||
Cost of sales | $ 1,499,993,000 | 1,047,459,000 | 3,329,964,000 | 2,520,133,000 | |||||||
Dividends declared, date | Oct. 29, 2020 | Sep. 3, 2020 | |||||||||
Dividends declared, per common share | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | |||||||
Dividends payable, date of record | Nov. 23, 2020 | Sep. 21, 2020 | |||||||||
Dividends paid | $ 21,200,000 | ||||||||||
Change in accounting principle, accounting standards update, adopted | true | true | |||||||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | |||||||||
Accounting standards update [Extensible List] | us-gaap:AccountingStandardsUpdate201815Member | ||||||||||
Shipping and Handling | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Cost of sales | $ 1,800,000 | $ 1,400,000 | $ 5,000,000 | $ 2,800,000 | |||||||
Convertible Revolving Credit Facility | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 4,000,000 | ||||||||||
Line of credit facility, interest rate | 12.00% | ||||||||||
Line of credit facility, expiration date | Sep. 18, 2022 | ||||||||||
Line of credit facility, percentage of outstanding principal converted into borrower's issued and outstanding common stock | 22.00% | ||||||||||
Line of credit facility, percentage of repay outstanding unrelated third-party debt in exchange for borrower's issued and outstanding common stock | 27.50% | ||||||||||
Line of credit facility, additional interest rate in case of default by borrower | 10.00% | ||||||||||
Line of credit facility, entitlement of interest to lender in event of excess gross sales price | $ 9,900,000 | ||||||||||
Line of credit facility, conversion amount | $ 1,000,000 | ||||||||||
Line of credit facility, outstanding balance | 3,500,000 | $ 2,500,000 | $ 2,500,000 | $ 3,500,000 | |||||||
Line of credit facility, repayment of third-party loan | $ 5,800,000 | ||||||||||
Minimum | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Estimated useful lives of related assets | 3 years | ||||||||||
Estimated useful lives of intangibles | 3 years | ||||||||||
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 - Components of Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost [Abstract] | ||||
Operating lease costs | $ 350 | $ 350 | $ 699 | $ 699 |
Short term and variable lease costs | 91 | 99 | 224 | 192 |
Finance lease costs | 5 | 5 | 11 | 11 |
Sublease income | (27) | (54) | ||
Total lease costs, net | $ 446 | $ 427 | $ 934 | $ 848 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Future Undiscounted Cash Flows for Each of Next Five Years and Thereafter and Reconciliation to Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 (6 months remaining) | $ 767 |
2022 | 1,313 |
2023 | 834 |
2024 | 860 |
2025 | 816 |
Thereafter | 370 |
Total lease payments | 4,960 |
Less imputed interest | (490) |
Total present value of lease liabilities | 4,470 |
Operating lease liability - current | $ 1,362 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Operating lease liability - long-term | $ 3,108 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Operating lease liability | $ 4,470 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Reconciliation of Shares Used in Calculating Basic and Diluted Earnings per Common Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 7,063,000 | 7,031,400 | 7,064,800 | 7,031,400 |
Effect of common stock equivalents — stock issuable under outstanding equity awards | 650,000 | 25,000 | 545,000 | 44,000 |
Diluted weighted average shares outstanding | 7,713,300 | 7,056,300 | 7,610,400 | 7,074,800 |
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 | Dec. 31, 2020 | Jun. 30, 2020 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 92,874 | $ 92,517 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 102,084 | $ 101,017 |
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 | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 57,849 | $ 46,325 |
Derivative liabilities | 50,809 | 25,414 |
Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 517,673 | 321,264 |
Precious metals held under financing arrangements | 160,255 | 178,577 |
Total assets, valued at fair value | 735,777 | 546,166 |
Liabilities on borrowed metals | 141,796 | 168,206 |
Product financing arrangements | 272,531 | 74,678 |
Total liabilities, valued at fair value | 465,136 | 268,298 |
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 | 57,826 | 46,224 |
Fair Value on a Recurring Basis | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 23 | 101 |
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 | 4,162 | 5,380 |
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 | 2,165 | 4,349 |
Fair Value on a Recurring Basis | Future contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 33,129 | 12,477 |
Fair Value on a Recurring Basis | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 11,353 | 3,208 |
Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 517,673 | 321,264 |
Precious metals held under financing arrangements | 160,255 | 178,577 |
Total assets, valued at fair value | 735,777 | 546,166 |
Liabilities on borrowed metals | 141,796 | 168,206 |
Product financing arrangements | 272,531 | 74,678 |
Total liabilities, valued at fair value | 465,136 | 268,298 |
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 | 57,826 | 46,224 |
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 | 23 | 101 |
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 | 4,162 | 5,380 |
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 | 2,165 | 4,349 |
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 | 33,129 | 12,477 |
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 | 11,353 | 3,208 |
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, 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 | 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 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 | 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 | 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 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, 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 | 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 | 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 | 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 | 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 |
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 | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value Disclosures [Abstract] | ||
Commemorative coin inventory, held at lower of cost or net realizable value | $ 9 | $ 17 |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net | [1] | $ 101,864 | $ 49,142 |
Customer Trade Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net | 7,015 | 6,047 | |
Wholesale Trade Advances | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net | 1,480 | 10,167 | |
Due from Brokers | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net | $ 93,369 | $ 32,928 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Secured Loans Receivable - Summ
Secured Loans Receivable - Summary of Carrying-value of Secured Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | [1] | $ 95,817 | $ 63,710 |
Secured Loans Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | 37,865 | 30,019 | |
Secured Loans Originated - With a Related Party | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | 135 | 8,797 | |
Financial Asset Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | 38,000 | 38,816 | |
Secured Loans Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans receivable | $ 57,817 | $ 24,894 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Secured Loans Receivable - Su_2
Secured Loans Receivable - Summary of Carrying-value of Secured Loans (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Receivables [Abstract] | ||
Unamortized loan commitment and origination fees and unamortized discounts or premiums | $ 6 | $ 6 |
Secured Loans Receivable - Addi
Secured Loans Receivable - Additional Information (Details) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Jun. 30, 2020loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable average effective rate of interest (percentage) | 8.70% | 8.90% | |
Loans receivable payment terms for interest | 180 days | ||
Loan receivable liquidation period post default | 20 days | ||
Number of loans | loan | 0 | 0 | |
Loan impairment costs | $ | $ 0 | $ 0 | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of loan balance outstanding | 85.00% | ||
Secured loans-to-value percentage | 100.00% | 100.00% | |
Bullion | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of Loan-to-value ratio | 75.00% | ||
Numismatic and Semi-numismatic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of Loan-to-value ratio | 65.00% |
Secured Loans Receivable - Sche
Secured Loans Receivable - Schedule of Classes for Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans | $ 95,817 | $ 63,710 |
Secured loan, percentage | 100.00% | 100.00% |
Bullion | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans | $ 72,599 | $ 36,445 |
Secured loan, percentage | 75.80% | 57.20% |
Numismatic and Semi-numismatic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured loans | $ 23,218 | $ 27,265 |
Secured loan, percentage | 24.20% | 42.80% |
Secured Loans Receivable - Sc_2
Secured Loans Receivable - Schedule of Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans (current) | [1] | $ 95,817 | $ 63,710 |
Bullion and Numismatic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans (current) | $ 95,817 | $ 63,710 | |
Secured loans (current), percentage | 100.00% | 100.00% | |
Loan-to-value of 75% or More | Bullion and Numismatic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans (current) | $ 6,640 | $ 5,414 | |
Secured loans (current), percentage | 6.90% | 8.50% | |
Loan-to-value of Less than 75% | Bullion and Numismatic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured loans (current) | $ 89,177 | $ 58,296 | |
Secured loans (current), percentage | 93.10% | 91.50% | |
[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 | Dec. 31, 2020 | Jun. 30, 2020 | |
Inventory [Line Items] | |||
Inventories | [1] | $ 245,151 | $ 246,603 |
Restricted inventories | 272,531 | 74,678 | |
Restricted and nonrestricted inventory, net | 517,682 | 321,281 | |
Inventory held for Sale | |||
Inventory [Line Items] | |||
Inventories | 122,107 | 153,412 | |
Repurchase Arrangements with Customers | |||
Inventory [Line Items] | |||
Inventories | 99,964 | 70,988 | |
Consignment Arrangements with Customers | |||
Inventory [Line Items] | |||
Inventories | 1,617 | 2,842 | |
Commemorative Coins, Held at Lower of Cost or Net Realizable Value | |||
Inventory [Line Items] | |||
Inventories | 9 | 17 | |
Borrowed Precious Metals | |||
Inventory [Line Items] | |||
Inventories | 21,454 | 19,344 | |
Product Financing Arrangements, Restricted | |||
Inventory [Line Items] | |||
Restricted inventories | $ 272,531 | $ 74,678 | |
[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 | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | ||
Inventory [Line Items] | |||
Inventory held for sale | [1] | $ 245,151 | $ 246,603 |
Precious metals inventory subject to repurchase arrangements | 100,000 | 71,000 | |
Consignment arrangements with customers | 1,600 | 2,800 | |
Commemorative coin inventory, held at lower of cost or net realizable value | 9 | 17 | |
Product financing arrangement, restricted | 272,500 | 74,700 | |
Unrealized gains included in inventory balance | 21,500 | 6,500 | |
Premium on metals position | 11,967 | 3,684 | |
Inventories | |||
Inventory [Line Items] | |||
Borrowed precious metals from suppliers | 21,500 | 19,300 | |
Inventory held for Sale | |||
Inventory [Line Items] | |||
Inventory held for sale | $ 122,107 | $ 153,412 | |
[1] | Includes amounts of the consolidated variable interest entity, which is presented separately in the table below. |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 15,833 | $ 14,906 |
Less: Accumulated depreciation and amortization | (9,956) | (9,267) |
Property, plant, and equipment, net | 5,913 | 5,675 |
Office Furniture, and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,153 | 2,142 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 943 | 900 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,289 | 5,288 |
Plant Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,198 | 3,450 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 446 | 322 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,804 | 2,804 |
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 ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 342,000 | $ 412,000 | $ 689,000 | $ 827,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Aug. 31, 2017 | Aug. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill | $ 8,881,000 | $ 8,881,000 | $ 8,881,000 | |||||
Amortization expense related to intangible assets | $ 163,000 | $ 255,000 | $ 317,000 | $ 508,000 | ||||
Goodwill and intangible asset impairment | $ 2,700,000 | |||||||
Minimum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Estimated useful lives of intangibles | 3 years | |||||||
Maximum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Estimated useful lives of intangibles | 15 years | |||||||
SilverTowne Mint | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangibles acquired | $ 2,500,000 | |||||||
Goodwill | $ 4,300,000 | |||||||
Goldline, LLC | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangibles acquired | $ 5,000,000 | |||||||
Goodwill | $ 1,400,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Carrying Value of Goodwill and Other Purchased Intangibles (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 16,047 | $ 16,047 |
Accumulated Amortization | (10,099) | (9,782) |
Accumulated Impairment | (1,291) | (1,291) |
Net Book Value | 4,657 | 4,974 |
Goodwill, Gross | 10,245 | 10,245 |
Accumulated Impairment | (1,364) | (1,364) |
Goodwill | 8,881 | 8,881 |
Trade Names and Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 4,454 | 4,454 |
Accumulated Impairment | (1,291) | (1,291) |
Indefinite-lived intangible assets, net of accumulated impairment | $ 3,163 | 3,163 |
Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 3 years | |
Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 15 years | |
Existing customer relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,998 | 8,998 |
Accumulated Amortization | (7,582) | (7,307) |
Net Book Value | $ 1,416 | 1,691 |
Existing customer relationships | Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 5 years | |
Existing customer relationships | Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangibles | 15 years | |
Non-compete and other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,300 | 2,300 |
Accumulated Amortization | (2,222) | (2,187) |
Net Book Value | $ 78 | 113 |
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] | ||
Estimated useful lives of intangibles | 3 years | |
Gross Carrying Amount | $ 295 | 295 |
Accumulated Amortization | (295) | (288) |
Net Book Value | 7 | |
Intangibles subject to amortization | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,593 | 11,593 |
Accumulated Amortization | (10,099) | (9,782) |
Net Book Value | $ 1,494 | $ 1,811 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Annual Amortization Expense Related to Definite-Lived Intangible Assets (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 (6 months remaining) | $ 312 |
2022 | 601 |
2023 | 158 |
2024 | 77 |
2025 | 60 |
Thereafter | 286 |
Total | $ 1,494 |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) | Dec. 31, 2020investment |
Long Term Investments [Abstract] | |
Number of investments | 4 |
Long-Term Investments - Schedul
Long-Term Investments - Schedule of Carrying Value and Ownership Percentage of Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Sep. 19, 2019 |
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 30,013 | $ 16,763 | |
Ownership Percentage | 31.20% | ||
Company A | |||
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 3,113 | $ 2,529 | |
Ownership Percentage | 7.40% | 7.40% | |
Company B | |||
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 18,876 | $ 13,296 | |
Ownership Percentage | 20.80% | 20.60% | |
Company C | |||
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 1,012 | $ 938 | |
Ownership Percentage | 10.00% | 10.00% | |
Company D | |||
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 7,012 | ||
Ownership Percentage | 31.20% |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities - Schedule of Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Accounts Payable And Other Current Liabilities [Abstract] | ||
Trade payables to customers | $ 1,259 | $ 2,316 |
Advances from customers | 128,010 | 129,624 |
Deferred revenue | 10,712 | 6,141 |
Other accounts payable | 2,391 | 2,849 |
Accounts payable and other current liabilities | $ 142,372 | $ 140,930 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||||
Derivative open positions expected settlement period | 2 days | |||
Unrealized gains (losses) on foreign exchange | $ 19,000 | $ 125,000 | $ (78,000) | $ 3,000 |
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 | Dec. 31, 2020 | Jun. 30, 2020 |
Nettable derivative assets: | ||
Gross derivative receivable | $ 66,206 | $ 48,997 |
Amounts Netted | (8,357) | (2,672) |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 57,849 | 46,325 |
Nettable derivative liabilities: | ||
Gross derivative payable | 53,222 | 35,954 |
Amounts Netted | (473) | (1,304) |
Cash Collateral Pledge | (1,940) | (9,236) |
Net derivative payables | 50,809 | 25,414 |
Open sale and purchase commitments | ||
Nettable derivative assets: | ||
Gross derivative receivable | 66,183 | 48,896 |
Amounts Netted | (8,357) | (2,672) |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 57,826 | 46,224 |
Nettable derivative liabilities: | ||
Gross derivative payable | 2,638 | 5,653 |
Amounts Netted | (473) | (1,304) |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | 2,165 | 4,349 |
Liability on margin accounts | ||
Nettable derivative liabilities: | ||
Gross derivative payable | 6,102 | 14,616 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | (1,940) | (9,236) |
Net derivative payables | 4,162 | 5,380 |
Future contracts | ||
Nettable derivative liabilities: | ||
Gross derivative payable | 33,129 | 12,477 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | 33,129 | 12,477 |
Forward contracts | ||
Nettable derivative assets: | ||
Gross derivative receivable | 23 | 101 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative receivable | 23 | 101 |
Nettable derivative liabilities: | ||
Gross derivative payable | 11,353 | 3,208 |
Amounts Netted | 0 | 0 |
Cash Collateral Pledge | 0 | 0 |
Net derivative payables | $ 11,353 | $ 3,208 |
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 | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||||
Gains (losses) on derivative instruments: | $ (95,131) | $ (11,022) | $ (121,689) | $ (2,356) |
Future commodity and forward contracts | ||||
Derivative [Line Items] | ||||
Unrealized (losses) gains on open future commodity and forward contracts and open sale and purchase commitments, net | (92,552) | (15,356) | (14,275) | 9,755 |
Commodity Contract | ||||
Derivative [Line Items] | ||||
Realized (losses) gains on future commodity contracts, net | $ (2,579) | $ 4,334 | $ (107,414) | $ (12,111) |
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 | Dec. 31, 2020 | Jun. 30, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Inventories | $ 517,682 | $ 321,281 | |
Precious metals held under financing arrangements | [1] | 160,255 | 178,577 |
Inventory and precious metals held under financing arrangements | 677,937 | 499,858 | |
Commemorative coin inventory, held at lower of cost or net realizable value | (9) | (17) | |
Premium on metals position | (11,967) | (3,684) | |
Precious metal value not hedged | (11,976) | (3,701) | |
Subtotal | 665,961 | 496,157 | |
Commitments at market: | |||
Open inventory purchase commitments | 723,536 | 514,553 | |
Open inventory sales commitments | (309,332) | (309,134) | |
Margin sale commitments | (6,102) | (14,652) | |
In-transit inventory no longer subject to market risk | (6,728) | (3,605) | |
Unhedgeable premiums on open commitment positions | 4,948 | 2,779 | |
Borrowed precious metals | (141,796) | (168,206) | |
Product financing arrangements | (272,531) | (74,678) | |
Advances on industrial metals | 696 | 318 | |
Commitments at market | (7,309) | (52,625) | |
Precious metal subject to price risk | 658,652 | 443,532 | |
Precious metal subject to derivative financial instruments: | |||
Market value of derivative financial instruments | 658,198 | 443,790 | |
Net precious metals subject to commodity price risk | 454 | (258) | |
Precious metals forward contracts at market values | |||
Precious metal subject to derivative financial instruments: | |||
Market value of derivative financial instruments | 126,154 | 73,948 | |
Precious metals futures contracts at market values | |||
Precious metal subject to derivative financial instruments: | |||
Market value of derivative financial instruments | $ 532,044 | $ 369,842 | |
[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 | Dec. 31, 2020 | Jun. 30, 2020 |
Derivative [Line Items] | ||
Purchase commitments | $ 723,536 | $ 514,553 |
Sales commitments | (309,332) | (309,134) |
Margin sales commitments | (6,102) | (14,652) |
Open derivative contracts | 658,198 | 443,790 |
Forward contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | 126,154 | 73,948 |
Future contracts | ||
Derivative [Line Items] | ||
Open derivative contracts | $ 532,044 | $ 369,842 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Transactions - Schedule of Market Values of Denominated in Foreign Currencies Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Forward contracts | ||
Derivative [Line Items] | ||
Open inventory sale commitments | $ 1,442 | $ 3,475 |
Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Open inventory sale commitments | $ 2,302 | $ 4,599 |
Income Taxes - Net Income from
Income Taxes - Net Income from Operations before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
U.S. | $ 11,794 | $ 1,681 | $ 42,005 | $ 2,082 |
Foreign | 6 | 6 | 12 | 13 |
Net income before provision for income taxes | $ 11,800 | $ 1,687 | $ 42,017 | $ 2,095 |
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 | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Federal | $ 2,344 | $ 353 | $ 8,193 | $ 438 |
State and local | 184 | 78 | 842 | 97 |
Foreign | 58 | 1 | 62 | 2 |
Income tax expense | $ 2,586 | $ 432 | $ 9,097 | $ 537 |
Effective tax rate | 21.90% | 25.60% | 21.70% | 25.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Income Tax Examination [Line Items] | ||
Income taxes payable | $ 715 | $ 2,135 |
Deferred tax liabilities | 62 | 62 |
Tax effected | 900 | 900 |
State and Local Jurisdiction | ||
Income Tax Examination [Line Items] | ||
Deferred tax assets | 1,000 | 1,000 |
Operating loss carryforwards | 12,600 | 12,600 |
U.S. | ||
Income Tax Examination [Line Items] | ||
Deferred tax liabilities | $ 1,100 | $ 1,100 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Sep. 19, 2019USD ($) | Dec. 31, 2020USD ($)investment | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)investment | Dec. 31, 2019USD ($) | Oct. 01, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 01, 2018USD ($) | Sep. 19, 2017USD ($) |
Related Party Transaction [Line Items] | |||||||||
Number of investments | investment | 4 | 4 | |||||||
Carrying Value | $ 30,013,000 | $ 30,013,000 | $ 16,763,000 | ||||||
Income (loss) from equity method investment | 2,362,000 | $ 102,000 | 6,488,000 | $ 114,000 | |||||
Interest income | 205,000 | $ 47,000 | 564,000 | $ 89,000 | |||||
Convertible Revolving Credit Facility | |||||||||
Related Party Transaction [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 4,000,000 | ||||||||
Line of credit facility, interest rate | 12.00% | ||||||||
Line of credit facility, outstanding balance | $ 2,500,000 | $ 2,500,000 | $ 3,500,000 | 3,500,000 | |||||
March 1, 2018 Loan Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Maximum borrowing capacity available | $ 10,000,000 | ||||||||
Participation interest, percentage of net profits realized on sale | 10.00% | ||||||||
Equity method investee | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of investments | investment | 4 | 4 | |||||||
Stack's Bowers Galleries | September 19, 2017 Loan Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Maximum borrowing capacity available | $ 5,300,000 | ||||||||
Short term loan receivable | $ 100,000 | $ 100,000 | 700,000 | ||||||
Stack's Bowers Galleries | March 1, 2018 Loan Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Short term loan receivable | $ 0 | $ 0 | $ 8,000,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Receivable and Payables Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||
Receivables | $ 5,279 | $ 13,359 |
Payables | 6,074 | 3,421 |
Stack's Bowers Galleries | ||
Related Party Transaction [Line Items] | ||
Receivables | 325 | 7,981 |
Equity method investee | ||
Related Party Transaction [Line Items] | ||
Receivables | 4,716 | 5,301 |
Payables | 6,074 | 3,421 |
SilverTowne L.P. | ||
Related Party Transaction [Line Items] | ||
Receivables | $ 238 | $ 77 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Receivable and Payables Balances (Parenthetical) (Details) - Stack's Bowers Galleries $ in Millions | Dec. 31, 2020USD ($)loan | Jun. 30, 2020USD ($) |
Related Party Transaction [Line Items] | ||
Number of credit lines | loan | 2 | |
Receivables, Net | ||
Related Party Transaction [Line Items] | ||
Short term loan receivable | $ 0.2 | |
September 19, 2017 Loan Agreement | ||
Related Party Transaction [Line Items] | ||
Short term loan receivable | 0.1 | $ 0.7 |
September 19, 2017 Loan Agreement | Secured Loans Receivable | ||
Related Party Transaction [Line Items] | ||
Short term loan receivable | 0.1 | |
March 1, 2018 Loan Agreement | ||
Related Party Transaction [Line Items] | ||
Short term loan receivable | 0 | $ 8 |
March 1, 2018 Loan Agreement | Secured Loans Receivable | ||
Related Party Transaction [Line Items] | ||
Short term loan receivable | $ 0 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Sales and Purchases of Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Sales | $ 409,214 | $ 187,962 | $ 915,785 | $ 376,034 |
Purchases | 19,648 | 10,968 | 48,976 | 43,147 |
Stack's Bowers Galleries | ||||
Related Party Transaction [Line Items] | ||||
Sales | 14,877 | 7,764 | 36,831 | 18,765 |
Purchases | 14,322 | 4,407 | 36,335 | 21,166 |
Equity method investee | ||||
Related Party Transaction [Line Items] | ||||
Sales | 391,617 | 178,006 | 872,117 | 353,550 |
Purchases | 5,326 | 6,487 | 7,872 | 21,326 |
SilverTowne L.P. | ||||
Related Party Transaction [Line Items] | ||||
Sales | $ 2,720 | 2,192 | 6,837 | 3,719 |
Purchases | $ 74 | $ 4,769 | $ 655 |
Related Party Transactions - _4
Related Party Transactions - Schedule of Interest Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Interest income | $ 205,000 | $ 47,000 | $ 564,000 | $ 89,000 |
Affiliated entities | ||||
Related Party Transaction [Line Items] | ||||
Interest income | 2,023,000 | 1,756,000 | 3,960,000 | 3,681,000 |
Affiliated entities | Interest income from secured loans receivables | ||||
Related Party Transaction [Line Items] | ||||
Interest income | 83,000 | 243,000 | 153,000 | 541,000 |
Affiliated entities | Interest income from finance products and repurchase arrangements | ||||
Related Party Transaction [Line Items] | ||||
Interest income | $ 1,940,000 | $ 1,513,000 | $ 3,807,000 | $ 3,140,000 |
Financing Agreements - Lines of
Financing Agreements - Lines of Credit - Additional Information (Details) - Line of Credit - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Bridge Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 4.50% | ||||
Trading Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest expense | $ 1,600,000 | $ 1,900,000 | $ 3,000,000 | $ 4,100,000 | |
Percentage of total expense recognized | 31.60% | 37.60% | 31.70% | 39.60% | |
Effective rate of interest | 2.97% | 4.22% | 2.96% | 4.49% | |
Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 2.50% | ||||
A-Mark | Trading Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 270,000,000 | $ 270,000,000 | |||
Line of credit, current borrowing capacity | 257,500,000 | 257,500,000 | |||
Line of credit, accordion option | 12,500,000 | 12,500,000 | |||
Payments of financing costs | 4,700,000 | ||||
Accumulated amortization of loan cost | $ 400,000 | $ 400,000 | $ 500,000 | ||
Variable rate basis | one-month LIBOR | ||||
Credit facility, interest rate at period end | 0.14% | 0.14% | 0.16% | ||
Borrowings due on demand | $ 175,000,000 | $ 175,000,000 | $ 135,000,000 | ||
Borrowings available | $ 64,100,000 | 64,100,000 | $ 76,300,000 | ||
Line of credit facility, tangible net worth financial covenant | $ 55,700,000 |
Financing Agreements - Notes Pa
Financing Agreements - Notes Payable - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
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] | |||||
Unamortized discount | $ 2,100,000 | $ 2,100,000 | |||
Percentage of total expense recognized | 28.20% | 26.20% | 30.40% | 27.40% | |
AM Capital Funding, LLC. | Variable Interest Entity, Primary Beneficiary | |||||
Debt Instrument [Line Items] | |||||
Notes payable | $ 92,900,000 | $ 92,900,000 | |||
Interest payable | 200,000 | $ 200,000 | |||
Debt instrument, aggregate interest rate (percentage) | 5.26% | ||||
Interest expense | $ 1,400,000 | $ 1,300,000 | $ 2,800,000 | $ 2,800,000 | |
AM Capital Funding, LLC. | Notes Receivable | |||||
Debt Instrument [Line Items] | |||||
Financing receivable | $ 5,000,000 | ||||
AM Capital Funding, LLC. | Notes Receivable | 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 | Dec. 31, 2020 | Jun. 30, 2020 |
Liabilities On Borrowed Metals [Line Items] | ||
Liabilities on borrowed metals | $ 141,796 | $ 168,206 |
Precious Metals Held Under Financing Arrangements | ||
Liabilities On Borrowed Metals [Line Items] | ||
Borrowed precious metals from suppliers | 120,300 | 148,900 |
Inventories | ||
Liabilities On Borrowed Metals [Line Items] | ||
Borrowed precious metals from suppliers | $ 21,500 | $ 19,300 |
Financing Agreements - Product
Financing Agreements - Product Financing Arrangements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Disclosure [Abstract] | ||
Product financing arrangements | $ 272,531 | $ 74,678 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Nov. 23, 2020 | Oct. 29, 2020 | Sep. 21, 2020 | Sep. 03, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized to be repurchased (in shares) | 500,000 | |||||||||
Number of shares repurchased (in shares) | 0 | 0 | ||||||||
Dividends declared, date | Oct. 29, 2020 | Sep. 3, 2020 | ||||||||
Dividends declared, per common share | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | ||||||
Dividends payable, date of record | Nov. 23, 2020 | Sep. 21, 2020 | ||||||||
Dividends paid | $ 21,200,000 | |||||||||
New awards grants, expiration date | Dec. 13, 2022 | |||||||||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $ 1,559,329 | $ 1,559,329 | ||||||||
Decrease in exercise price of each stock option | $ 1.50 | $ 1.50 | ||||||||
Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based payment arrangement, expense | $ 209,839 | $ 237,665 | $ 388,268 | $ 403,969 | ||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 2 years 7 months 6 days | |||||||||
Incremental stock-based compensation | $ 0 | |||||||||
2014 Stock Award and Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted under the plan (shares) | 188,664 | 188,664 | ||||||||
Expiration period (in years) | 10 years | |||||||||
Maximum amount of shares per employee (shares) | 250,000 | |||||||||
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 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Dec. 31, 2020USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / shares | |
Options | ||
Options Outstanding, beginning balance | shares | 1,249,813 | |
Options, Granted | shares | 55,000 | |
Options, Exercises | shares | (107,839) | |
Options, Cancellations, expirations and forfeitures | shares | (1,600) | |
Options Outstanding, ending balance | shares | 1,195,374 | |
Options, Exercisable at December 31, 2020 | shares | 758,255 | |
Weighted Average Exercise Price Per Share | ||
Weighted Average Exercise Price Per Share, Outstanding beginning balance | $ 12.27 | |
Weighted Average Exercise Price Per Share, Granted | 24.62 | |
Weighted Average Exercise Price Per Share, Exercises | 14.42 | |
Weighted Average Exercise Price Per Share, Cancellations, expirations and forfeitures | 20.16 | |
Weighted Average Exercise Price Per Share, Outstanding ending balance | 12.63 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 17.16 | |
Aggregate Intrinsic Value, Balance | $ | $ 15,621 | $ 6,061 |
Aggregate Intrinsic Value, Exercisable | $ | $ 8,713 | |
Weighted Average Grant Date Fair Value Per Award, Outstanding | $ 5.52 | $ 5.34 |
Weighted Average Grant Date Fair Value Per Award, Exercisable | $ 5.92 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Status of Stock Option Outstanding and Adjusted Stock Option Price (Details) - $ / shares | 6 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Stock options outstanding, Number of Shares Outstanding (shares) | 1,195,374 | 1,249,813 |
Stock options outstanding, Weighted Average Remaining Contractual Life | 6 years 1 month 20 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 12.63 | $ 12.27 |
Stock options exercisable, Number of Shares Exercisable (shares) | 758,255 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 4 years 6 months 25 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 14.16 | |
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) | 526,886 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 6 years 1 month 2 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 6.81 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 223,322 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 2 years 2 months 19 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 6.42 | |
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) | 209,321 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 6 years 11 months 12 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.46 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 130,766 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 6 years 4 months 2 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.76 | |
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) | 444,167 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 5 years 8 months 8 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 19.52 | |
Stock options exercisable, Number of Shares Exercisable (shares) | 404,167 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 5 years 3 months 14 days | |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 19.21 | |
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) | 15,000 | |
Stock options outstanding, Weighted Average Remaining Contractual Life | 9 years 9 months 25 days | |
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 29.83 | |
Stock options exercisable, Weighted Average Remaining Contractual Life | 0 years |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Nonvested Stock Option Activity (Details) | 6 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Options | |
Nonvested Outstanding at June 30, 2020 | shares | 423,002 |
Options, Granted | shares | 55,000 |
Vested | shares | (40,883) |
Nonvested Outstanding at December 31, 2020 | shares | 437,119 |
Weighted Average Grant Date Fair Value Per Award | |
Nonvested Outstanding at June 30, 2020 | $ / shares | $ 4.14 |
Granted | $ / shares | 9.99 |
Vested | $ / shares | 4.74 |
Nonvested Outstanding at December 31, 2020 | $ / shares | $ 4.82 |
Customer and Supplier Concent_3
Customer and Supplier Concentrations - Schedule of Concentration of Risk, by Risk Factor of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||||
Revenues | $ 1,518,744 | $ 1,055,590 | $ 3,384,860 | $ 2,536,604 |
Revenue | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 1,518,744 | $ 1,055,590 | $ 3,384,860 | $ 2,536,604 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue | Customer Concentrations | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 395,815 | $ 212,988 | $ 944,632 | $ 556,515 |
Concentration risk, percentage | 26.10% | 20.20% | 27.90% | 21.90% |
HSBC Bank USA | Revenue | Customer Concentrations | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 175,306 | $ 126,581 | $ 339,695 | $ 398,780 |
Concentration risk, percentage | 11.60% | 12.00% | 10.00% | 15.70% |
Customer A | Revenue | Customer Concentrations | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 220,509 | $ 86,407 | $ 604,937 | $ 157,735 |
Concentration risk, percentage | 14.50% | 8.20% | 17.90% | 6.20% |
Segments and Geographic Infor_3
Segments and Geographic Information - Additional Information (Details) | 6 Months Ended |
Dec. 31, 2020reportable_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 | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 1,518,744,000 | $ 1,055,590,000 | $ 3,384,860,000 | $ 2,536,604,000 | ||
Gross profit | $ 18,751,000 | $ 8,131,000 | $ 54,896,000 | $ 16,471,000 | ||
Gross margin percentage by segment | 1.235% | 0.77% | 1.622% | 0.649% | ||
Selling, general, and administrative expenses | $ (9,033,000) | $ (7,870,000) | $ (19,039,000) | $ (16,140,000) | ||
Interest income | 4,533,000 | 6,232,000 | 8,516,000 | 12,000,000 | ||
Interest expense | (5,037,000) | (5,081,000) | (9,330,000) | (10,223,000) | ||
Other income (expense), net | 2,567,000 | 150,000 | 7,052,000 | (16,000) | ||
Unrealized losses on foreign exchange | 19,000 | 125,000 | (78,000) | 3,000 | ||
Total net income (loss) before provision for income taxes | 11,800,000 | 1,687,000 | 42,017,000 | 2,095,000 | ||
Total depreciation and amortization | (505,000) | (666,000) | (1,006,000) | (1,334,000) | ||
Advertising expense | (622,000) | (346,000) | (1,322,000) | (809,000) | ||
Total precious metals held under financing arrangements | [1] | 160,255,000 | 160,255,000 | $ 178,577,000 | ||
Total inventories | 517,682,000 | 517,682,000 | 321,281,000 | |||
Assets | 1,007,126,000 | 1,007,126,000 | 758,035,000 | |||
Long term assets | 55,606,000 | 55,606,000 | 44,016,000 | |||
Total capital expenditures on property and equipment | 461,000 | 318,000 | 937,000 | 455,000 | ||
Goodwill | 8,881,000 | 8,881,000 | 8,881,000 | |||
Intangibles assets | 4,657,000 | 4,657,000 | 4,974,000 | |||
United States | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,157,407,000 | 781,043,000 | 2,616,417,000 | 1,886,664,000 | ||
Total inventories | 485,064,000 | 485,064,000 | 287,960,000 | |||
Assets | 973,281,000 | 973,281,000 | 723,252,000 | |||
Long term assets | 55,551,000 | 55,551,000 | 43,963,000 | |||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 127,015,000 | 93,308,000 | 246,923,000 | 155,410,000 | ||
Total inventories | 10,543,000 | 10,543,000 | 19,531,000 | |||
Assets | 11,770,000 | 11,770,000 | 20,993,000 | |||
Long term assets | 55,000 | 55,000 | 53,000 | |||
North America, excluding United States | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 223,827,000 | 166,835,000 | 481,072,000 | 467,232,000 | ||
Total inventories | 20,486,000 | 20,486,000 | 13,735,000 | |||
Assets | 20,486,000 | 20,486,000 | 13,735,000 | |||
Asia Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 8,303,000 | 12,822,000 | 23,435,000 | 18,935,000 | ||
Africa | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 31,000 | |||||
Australia | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 2,192,000 | 1,582,000 | 17,013,000 | 8,332,000 | ||
Asia | ||||||
Segment Reporting Information [Line Items] | ||||||
Total inventories | 1,589,000 | 1,589,000 | 55,000 | |||
Assets | 1,589,000 | 1,589,000 | 55,000 | |||
Wholesale Sales & Ancillary Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,477,489,000 | 1,038,154,000 | 3,291,197,000 | 2,499,087,000 | ||
Gross profit | $ 13,245,000 | $ 6,597,000 | $ 43,867,000 | $ 13,357,000 | ||
Gross margin percentage by segment | 0.896% | 0.635% | 1.333% | 0.534% | ||
Selling, general, and administrative expenses | $ (6,685,000) | $ (5,477,000) | $ (14,292,000) | $ (11,279,000) | ||
Interest income | 2,498,000 | 2,230,000 | 4,936,000 | 4,492,000 | ||
Interest expense | (2,915,000) | (2,444,000) | (5,863,000) | (5,270,000) | ||
Other income (expense), net | 2,362,000 | 102,000 | 6,488,000 | 114,000 | ||
Unrealized losses on foreign exchange | 19,000 | 125,000 | (78,000) | 3,000 | ||
Total net income (loss) before provision for income taxes | 8,524,000 | 1,133,000 | 35,058,000 | 1,417,000 | ||
Total depreciation and amortization | (219,000) | (403,000) | (424,000) | (800,000) | ||
Advertising expense | (78,000) | (12,000) | (143,000) | (68,000) | ||
Total precious metals held under financing arrangements | 132,366,000 | 132,366,000 | 157,609,000 | |||
Total inventories | 500,281,000 | 500,281,000 | 289,069,000 | |||
Assets | 851,460,000 | 851,460,000 | 599,032,000 | |||
Long term assets | 51,583,000 | 51,583,000 | 39,090,000 | |||
Total capital expenditures on property and equipment | 451,000 | 279,000 | 924,000 | 376,000 | ||
Goodwill | 8,881,000 | 8,881,000 | 8,881,000 | |||
Intangibles assets | 2,869,000 | 2,869,000 | 2,907,000 | |||
Direct Sales | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 41,255,000 | 17,436,000 | 93,663,000 | 37,517,000 | ||
Gross profit | $ 5,506,000 | $ 1,534,000 | $ 11,029,000 | $ 3,114,000 | ||
Gross margin percentage by segment | 13.346% | 8.798% | 11.775% | 8.30% | ||
Selling, general, and administrative expenses | $ (1,841,000) | $ (2,009,000) | $ (3,744,000) | $ (4,129,000) | ||
Other income (expense), net | 1,000 | (219,000) | ||||
Total net income (loss) before provision for income taxes | 3,665,000 | (474,000) | 7,285,000 | (1,234,000) | ||
Total depreciation and amortization | (198,000) | (244,000) | (406,000) | (499,000) | ||
Advertising expense | (501,000) | (332,000) | (1,111,000) | (736,000) | ||
Total inventories | 9,494,000 | 9,494,000 | 8,155,000 | |||
Assets | 17,807,000 | 17,807,000 | 18,381,000 | |||
Long term assets | 2,875,000 | 2,875,000 | 3,607,000 | |||
Total capital expenditures on property and equipment | 6,000 | 4,000 | 9,000 | 7,000 | ||
Intangibles assets | 1,788,000 | 1,788,000 | 2,067,000 | |||
Secured Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | |||||
Gross profit | 0 | |||||
Selling, general, and administrative expenses | (507,000) | (384,000) | (1,003,000) | (732,000) | ||
Interest income | 2,035,000 | 4,002,000 | 3,580,000 | 7,508,000 | ||
Interest expense | (2,122,000) | (2,637,000) | (3,467,000) | (4,953,000) | ||
Other income (expense), net | 205,000 | 47,000 | 564,000 | 89,000 | ||
Total net income (loss) before provision for income taxes | (389,000) | 1,028,000 | (326,000) | 1,912,000 | ||
Total depreciation and amortization | (88,000) | (19,000) | (176,000) | (35,000) | ||
Advertising expense | (43,000) | (2,000) | (68,000) | (5,000) | ||
Total precious metals held under financing arrangements | 27,889,000 | 27,889,000 | 20,968,000 | |||
Total inventories | 7,907,000 | 7,907,000 | 24,057,000 | |||
Assets | 137,859,000 | 137,859,000 | 140,622,000 | |||
Long term assets | 1,148,000 | 1,148,000 | $ 1,319,000 | |||
Total capital expenditures on property and equipment | $ 4,000 | $ 35,000 | $ 4,000 | $ 72,000 | ||
[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 | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,518,744,000 | $ 1,055,590,000 | $ 3,384,860,000 | $ 2,536,604,000 | |
Gross profit | 18,751,000 | 8,131,000 | 54,896,000 | 16,471,000 | |
Accumulated impairment losses on goodwill | 1,364,000 | 1,364,000 | $ 1,364,000 | ||
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,100,000 | 6,900,000 | 4,800,000 | 13,100,000 | |
Secured Lending | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | ||||
Gross profit | 0 | ||||
Direct Sales | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 41,255,000 | 17,436,000 | 93,663,000 | 37,517,000 | |
Gross profit | 5,506,000 | $ 1,534,000 | 11,029,000 | $ 3,114,000 | |
Accumulated impairment losses on goodwill | $ 1,400,000 | 1,400,000 | |||
Precious Metals | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | ||||
Gross profit | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event - JMB $ / shares in Units, $ in Millions | Feb. 08, 2021USD ($)$ / shares |
Subsequent Event [Line Items] | |
Business acquisition, percentage of interests acquired | 79.47% |
Business combination, purchase price | $ 138.3 |
Business combination, cash consideration | 103.7 |
Common stock issued value, acquisitions | $ 34.6 |
Common stock issued value of per share, acquisitions | $ / shares | $ 28.96 |
Business acquisition cash portion of purchase price reduced ownership interest, percentage. | 20.53% |
Business acquisition, maximum ownership percentage | 4.80% |
Decrease in stock consideration will result in increase in cash consideration percentage | 65.00% |