A-Mark Precious Metals Inc (AMRK) Reports Fiscal Q1 2024 Results: Earnings Per Share at $0. ...
AMRK's diluted earnings per share stood at $0.77 for fiscal Q1 2024, with a repurchase of 171,268 common shares.
The company reaffirmed its regular quarterly cash dividend policy of $0.20 per share.
Gold and silver ounces sold saw a significant decrease compared to the same period last year and the previous quarter.
Despite a challenging macroeconomic environment, AMRK's revenue increased by 31% year-over-year to $2.48 billion.
On November 7, 2023, A-Mark Precious Metals Inc (NASDAQ:AMRK), a leading fully integrated precious metals platform, released its earnings report for the fiscal first quarter ended September 30, 2023. The company reported diluted earnings per share of $0.77, a decrease from the previous year's $1.83. Despite the less favorable economic conditions and softened demand, AMRK generated $30.4 million of non-GAAP EBITDA and continued to grow its Direct-to-Consumer customer base.
Operational and Financial Performance
AMRK's gold ounces sold decreased by 21% year-over-year to 495,000 ounces and silver ounces sold decreased by 15% to 30.4 million ounces. The number of secured loans also saw a decrease of 26% to 803. Direct-to-Consumer new customers and active customers decreased by 20% and 24%, respectively, while the average order value increased by 5% to $2,440.
Revenues for the quarter increased to $2.48 billion, up 31% from $1.90 billion in the prior year's quarter. However, gross profit decreased by 36% to $49.4 million, and net income attributable to the company decreased by 58% to $18.8 million. The gross profit margin also declined to 1.99% of revenue from 4.03% in the previous year.
Balance Sheet and Cash Flow Highlights
AMRK's balance sheet reflects a strong financial position with total assets of $1.58 billion as of September 30, 2023. The company's current assets include cash of $48.2 million and inventories totaling approximately $1 billion. Total liabilities stand at $996.2 million, with current liabilities accounting for $704.9 million.
The company's cash flows from operations and its reconciliation to non-GAAP measures such as EBITDA are detailed in the financial statements, providing a comprehensive view of its liquidity and financial health.
Strategic Initiatives and Dividend Policy
CEO Greg Roberts commented on the company's strategic initiatives, stating,
Looking ahead, we continue to actively evaluate investment opportunities to broaden our geographic presence and market reach. Our focus remains on strategic opportunities that will further enhance our fully-integrated platform and will generate value for our customers and stockholders."
AMRK also continues to invest in its minting and logistics operations to expand capacity and drive efficiencies.
The company's Board of Directors has reaffirmed its regular quarterly cash dividend policy of $0.20 per share, with the next dividend expected to be paid in January 2024.
Conference Call and Company Outlook
AMRK held a conference call on November 7, 2023, to discuss the financial results, with a replay available through November 21, 2023. The company remains optimistic about its diversified business model's ability to sustain profitability and realize growth over the long term.
For more detailed information on A-Mark Precious Metals Inc's fiscal first quarter 2024 results, please visit www.amark.com.
Explore the complete 8-K earnings release (here) from A-Mark Precious Metals Inc for further details.
This article first appeared on GuruFocus.
