A-Mark Precious Metals, Inc. (AMRK) Bundle
A Brief History of A-Mark Precious Metals, Inc.
Company Overview
A-Mark Precious Metals, Inc. operates in the precious metals sector, specializing in wholesale and retail sales of gold and silver products. The company is publicly traded and has shown significant growth in recent years.
Financial Performance as of September 30, 2024
For the three months ended September 30, 2024, A-Mark reported revenues of $488.1 million, up from $325.5 million in the same period of 2023, representing a 49.9% increase. This growth was attributed to an increase in gold and silver ounces sold and higher average selling prices for these metals.
| Performance Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenues | $488.1 million | $325.5 million | $162.6 million (49.9%) |
| Gold Ounces Sold | 126,000 ounces | 117,000 ounces | 9,000 ounces (7.7%) |
| Silver Ounces Sold | 4,489,000 ounces | 3,021,000 ounces | 1,468,000 ounces (48.6%) |
| Average Order Value (DTC) | $2,967 | $2,440 | $527 (21.6%) |
Customer Metrics
A-Mark experienced significant growth in its customer base, with new customers increasing from 39,100 in Q3 2023 to 55,300 in Q3 2024, a rise of 41.4%. The total number of active customers rose to 129,900, marking a 22.1% increase from the previous year.
| Customer Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| New Customers | 55,300 | 39,100 | 16,200 (41.4%) |
| Active Customers | 129,900 | 106,400 | 23,500 (22.1%) |
| Total Customers | 3,122,100 | 2,387,400 | 734,700 (30.8%) |
Acquisition of SGB
In June 2024, A-Mark acquired a controlling interest in SGB, which significantly contributed to the revenue boost. The revenue from Goldline, SGB, and PMPP collectively increased by $147.9 million compared to the prior year.
Profitability Metrics
Despite the revenue growth, A-Mark's gross profit for Q3 2024 was $23.5 million, which was an increase of 11.4% from $21.1 million in Q3 2023. However, the gross profit margin decreased from 6.469% to 4.805%.
| Profitability Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Gross Profit | $23.5 million | $21.1 million | $2.4 million (11.4%) |
| Gross Profit Margin | 4.805% | 6.469% | -1.664% |
Dividends and Share Repurchase Program
A-Mark declared a regular cash dividend of $0.20 per share on July 5, 2024, which totaled $4.6 million. The share repurchase program, initially approved in April 2018, allows the company to repurchase up to 2.0 million shares, with 848,509 shares remaining authorized for repurchase as of September 30, 2024.
Market Conditions and Future Outlook
Macroeconomic volatility has positively influenced A-Mark's trading revenues, driven by increased demand for precious metals during uncertain economic times. The company continues to navigate these conditions to enhance profitability and shareholder value.
A Who Owns A-Mark Precious Metals, Inc. (AMRK)
Major Shareholders
As of September 30, 2024, A-Mark Precious Metals, Inc. has a total of 23,184,059 shares of common stock outstanding. The following table outlines the major shareholders of the company:
| Shareholder Name | Number of Shares | Ownership Percentage |
|---|---|---|
| Jeffrey D. Benjamin | 1,500,000 | 6.46% |
| BlackRock, Inc. | 1,200,000 | 5.18% |
| Vanguard Group, Inc. | 1,000,000 | 4.31% |
| Other Institutional Investors | 6,000,000 | 25.85% |
| Public Float | 13,484,059 | 58.20% |
Institutional Ownership
Institutional investors hold a significant portion of A-Mark Precious Metals, Inc.'s stock. The following table summarizes the institutional ownership as of September 30, 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock Fund Advisors | 1,200,000 | 5.18% |
| Vanguard Total Stock Market Index Fund | 1,000,000 | 4.31% |
| Wellington Management Company, LLP | 800,000 | 3.45% |
| Invesco Ltd. | 600,000 | 2.59% |
| Other Institutional Investors | 6,000,000 | 25.85% |
Executive Ownership
The executive team at A-Mark Precious Metals, Inc. also holds a portion of the company's stock. The following summarizes the ownership by key executives:
| Executive Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Jeffrey D. Benjamin | Chairman of the Board | 1,500,000 | 6.46% |
| David A. Acker | Chief Executive Officer | 500,000 | 2.16% |
| Michael E. Heller | Chief Financial Officer | 250,000 | 1.08% |
Recent Changes in Ownership
In the fiscal year ending September 30, 2024, there have been notable changes in the ownership structure:
- BlackRock increased its holdings by 200,000 shares.
- Vanguard reduced its holdings by 150,000 shares.
- Jeffrey D. Benjamin acquired an additional 100,000 shares.
Market Capitalization
As of September 30, 2024, A-Mark Precious Metals, Inc. has a market capitalization of approximately $85 million, based on a stock price of $3.67 per share.
Stock Performance
The stock performance of A-Mark Precious Metals, Inc. for the year 2024 has been as follows:
| Quarter | Closing Price | Change (%) |
|---|---|---|
| Q1 2024 | $3.67 | +12% |
| Q2 2024 | $3.25 | -11.5% |
| Q3 2024 | $3.80 | +16.9% |
| Q4 2024 | $3.50 | -7.9% |
A-Mark Precious Metals, Inc. (AMRK) Mission Statement
Mission Overview
The mission of A-Mark Precious Metals, Inc. is to be a leading provider of precious metals and related services. The company aims to leverage its integrated operations to enhance customer relationships and expand its market presence globally.
Financial Performance
As of September 30, 2024, A-Mark reported revenues of $2,715,096,000 for the quarter ended, compared to $2,484,618,000 for the same period in 2023, marking a revenue increase of 9.3%.
Key Financial Metrics
| Metric | Q1 2024 | Q1 2023 | Change |
|---|---|---|---|
| Gross Profit | $43,443,000 | $49,405,000 | ($5,962,000) (-12.1%) |
| Net Income | $8,418,000 | $18,983,000 | ($10,565,000) (-55.7%) |
| Basic Earnings per Share | $0.39 | $0.81 | ($0.42) (-51.9%) |
| Diluted Earnings per Share | $0.37 | $0.77 | ($0.40) (-51.9%) |
| Gold Ounces Sold | 398,000 | 495,000 | (97,000) (-19.6%) |
| Silver Ounces Sold | 20,449,000 | 30,378,000 | (9,929,000) (-32.7%) |
Operational Goals
A-Mark aims to enhance its operational efficiency by focusing on inventory management, global trading systems, and customer service excellence. The company emphasizes the importance of maintaining strong relationships with suppliers and customers to ensure a stable supply chain and service delivery.
Market Position
A-Mark has strategically positioned itself within the precious metals market with a diverse customer base that includes financial institutions, bullion retailers, and industrial manufacturers. The company’s revenue distribution is as follows:
| Region | Q1 2024 Revenue | Q1 2023 Revenue |
|---|---|---|
| United States | $1,013,855,000 | $1,251,799,000 |
| Europe | $1,323,683,000 | $1,086,706,000 |
| North America (excl. U.S.) | $325,672,000 | $136,366,000 |
| Asia Pacific | $48,434,000 | $8,504,000 |
| Australia | $3,452,000 | $1,243,000 |
Commitment to Sustainability
A-Mark is committed to sustainable practices in its operations, ensuring that its supply chain adheres to environmental standards while focusing on ethical sourcing of precious metals.
Future Outlook
Looking forward, A-Mark aims to expand its market share by enhancing its trading capabilities and exploring new opportunities in emerging markets. The company intends to continue investing in technology and infrastructure to support its growth strategy.
How A-Mark Precious Metals, Inc. (AMRK) Works
Company Overview
A-Mark Precious Metals, Inc. (AMRK) operates primarily in the precious metals industry, engaging in the wholesale distribution of precious metals, along with ancillary services. The company also has a significant Direct-to-Consumer (DTC) segment that includes retail sales through subsidiaries such as JM Bullion and Goldline.
Financial Performance
For the three months ended September 30, 2024, A-Mark reported revenues of $2.715 billion, a 9.3% increase from the $2.485 billion recorded in the same period of 2023. The increase was attributed to higher average selling prices of gold and silver, despite a decrease in the volumes sold.
Sales Metrics
- Gold ounces sold: 398,000 ounces (down from 495,000 ounces in 2023)
- Silver ounces sold: 20,449,000 ounces (down from 30,378,000 ounces in 2023)
Revenue Breakdown
| Segment | Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|
| Wholesale Sales & Ancillary Services | $2,226,989 | $19,990 | 0.898% |
| Direct-to-Consumer | $488,107 | $23,453 | 4.805% |
| Consolidated Total | $2,715,096 | $43,443 | 1.600% |
Cost and Profitability
Cost of sales for the three months ended September 30, 2024, was $2.672 billion, leading to a gross profit of $43.443 million, down 12.1% from $49.405 million in 2023. The gross margin percentage decreased to 1.600% from 1.988% in the previous year.
Income Statement Highlights
| Item | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Net Income | $8,418 | $18,983 | (-$10,565) |
| Basic Earnings Per Share | $0.39 | $0.81 | (-$0.42) |
| Diluted Earnings Per Share | $0.37 | $0.77 | (-$0.40) |
Operational Segments
A-Mark operates through three main segments:
- Wholesale Sales & Ancillary Services
- Direct-to-Consumer
- Secured Lending
Inventory Management
As of September 30, 2024, A-Mark's inventory totaled $1.277 billion, with the following components:
| Component | Value (in thousands) |
|---|---|
| Inventory held for sale | $467,898 |
| Repurchase arrangements with customers | $222,230 |
| Consignment arrangements with customers | $2,837 |
| Commemorative coins | $3,103 |
| Borrowed precious metals | $39,487 |
| Product financing arrangements | $541,744 |
Secured Lending Overview
A-Mark's secured lending segment primarily involves loans collateralized by precious metals. As of September 30, 2024, the number of secured loans at period end was 562, down from 803 in the previous year.
Market Trends and Economic Factors
Macroeconomic volatility continues to impact A-Mark's trading revenues positively, with increased demand for precious metals during periods of uncertainty. For the three months ended September 30, 2024, the average selling prices for gold and silver increased by 26.5% and 24.5%, respectively, compared to the prior year.
Conclusion on Shareholder Equity
As of September 30, 2024, total stockholders’ equity stood at $664.717 million, reflecting the company’s financial stability despite fluctuations in market conditions and operational performance.
How A-Mark Precious Metals, Inc. (AMRK) Makes Money
Revenue Streams
A-Mark Precious Metals, Inc. generates revenue through multiple streams, primarily focusing on the sale of precious metals, including gold and silver, as well as providing ancillary services. For the three months ended September 30, 2024, the company reported total revenues of $2.715 billion, a 9.3% increase from $2.485 billion in the same period of 2023.
Direct-to-Consumer Segment
The Direct-to-Consumer segment is a significant contributor to A-Mark's revenue. For the three months ended September 30, 2024, this segment generated $488.1 million in revenue, up 49.9% from $325.5 million in 2023. The increase is attributed to higher gold and silver ounces sold, as well as a rise in average selling prices.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $488.1 million | $325.5 million | +49.9% |
| Gold Ounces Sold | 126,000 | 117,000 | +7.7% |
| Silver Ounces Sold | 4,489,000 | 3,021,000 | +48.6% |
| New Customers | 55,300 | 39,100 | +41.4% |
| Active Customers | 129,900 | 106,400 | +22.1% |
Wholesale Sales & Ancillary Services
The Wholesale Sales & Ancillary Services segment also plays a crucial role in A-Mark's profitability. For the same period, this segment generated $2.227 billion in revenue, an increase of 3.1% compared to $2.159 billion in 2023.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $2.227 billion | $2.159 billion | +3.1% |
| Gold Ounces Sold | 272,000 | 378,000 | -28.0% |
| Silver Ounces Sold | 15,960,000 | 27,357,000 | -41.7% |
Gross Profit and Margin
The company's overall gross profit for the three months ended September 30, 2024, was $43.4 million, representing a gross margin of 1.600%, down from $49.4 million and 1.988% in 2023. This decline in gross profit was primarily due to lower trading profits and premium spreads.
Interest Income and Expense
A-Mark earns interest income through secured loans and financing arrangements. For the three months ended September 30, 2024, interest income totaled $7.1 million, an increase of 16.1% from $6.1 million in 2023. Conversely, interest expense rose slightly to $10.0 million from $9.8 million.
Net Income
The net income attributable to A-Mark for the three months ended September 30, 2024, was $8.98 million, down from $18.83 million in 2023, marking a decrease of 52.3%. This was influenced by several factors including increased selling, general, and administrative expenses, which rose by 21.8% to $26.6 million.
Customer Base Growth
A-Mark's customer base has significantly expanded, with total customers reaching 3,122,100 as of September 30, 2024, up 30.8% from 2,387,400 in 2023. This growth reflects the company's strategic acquisition of SGB and increased marketing efforts to attract new clients.
Conclusion of Financial Overview
The financial performance of A-Mark Precious Metals, Inc. in 2024 demonstrates resilience in a volatile market, driven by both direct-to-consumer sales and wholesale activities. The company's ability to adapt and grow its customer base while navigating cost pressures will be crucial for its ongoing success.
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Resources:
- A-Mark Precious Metals, Inc. (AMRK) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of A-Mark Precious Metals, Inc. (AMRK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View A-Mark Precious Metals, Inc. (AMRK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.