AMark Precious Metals Announces Fiscal Fourth Quarter and Full Year 2024 Financial Results
Intellectia.AI Updated: 2024-08-29
A-Mark Precious Metals Announces Fiscal Fourth Quarter and Full Year 2024 Financial Results
A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, reported its financial results for the fiscal fourth quarter and full year ended June 30, 2024.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | Q3 FY2024 | YoY Change | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Revenue (in billions) | $2.52 | $3.12 | $2.61 | -19% | -3% | $2.72 |
| Gross Profit (in millions) | $43.0 | $78.6 | $34.8 | -45% | +23% | N/A |
| Net Income (in millions) | $28.6 | $41.8 | $5.0 | -32% | +471% | N/A |
| EPS | $1.20 | $1.71 | $0.21 | -30% | +471% | $0.69 |
| EBITDA (in millions) | $36.1 | $61.8 | $12.6 | -42% | +186% | N/A |
A-Mark's fiscal fourth quarter showed a significant year-over-year decline in both revenue and profit due to a decrease in gold and silver ounces sold. However, compared to the previous quarter, the company delivered notable improvements, particularly in net income and EBITDA, reflecting a strong quarterly performance.
Segment Revenue Performance
| Segment | Q4 FY2024 Revenue Contribution | Q4 FY2023 Revenue Contribution | YoY Change |
|---|---|---|---|
| Direct-to-Consumer | 17% | 19% | -2 pp |
| JMB (part of Direct-to-Consumer) | 15% | 17% | -2 pp |
While the Direct-to-Consumer segment and JM Bullion saw declines in revenue contribution year-over-year, they remained stable components of the company's overall revenue mix for the fiscal fourth quarter.
Key Developments and Operational Highlights
- Significant Decrease in Gold and Silver Ounces Sold:
- Gold: 448,000 ounces in Q4 FY2024, down 45% from 814,000 ounces in Q4 FY2023.
-
Silver: 25.4 million ounces in Q4 FY2024, down 44% from 45.3 million ounces in Q4 FY2023.
-
Direct-to-Consumer Segment Highlights:
- New customers increased by 530% to 570,300 in Q4 FY2024 compared to 90,400 in Q4 FY2023.
- Active customers decreased by 14% to 114,600 in Q4 FY2024 compared to 133,800 in Q4 FY2023.
- Average order value decreased by 12% to $2,890 from $3,288 in Q4 FY2023.
Comments from Management
"Our fiscal year 2024 results demonstrate the continued strength and adaptability of our fully-integrated platform to generate profitable results even during slower market conditions," said CEO Greg Roberts. Despite unfavorable macro-economic conditions and softened demand, the company delivered preliminary earnings of $2.75 per diluted share and generated $104.2 million in preliminary non-GAAP EBITDA. Excluding the estimated $14.4 million remeasurement gain from the Silver Gold Bull, Inc. (SGB) transaction, diluted earnings were $2.15 per share. The acquisition of LPM Group Limited and expansion into Asia, as well as the increased investment in SGB, were significant milestones. The logistics automation at the A-Mark Global Logistics facility in Las Vegas is expected to enhance operational efficiency.
Dividend Announcement
The company's Board of Directors reaffirmed the regular quarterly cash dividend of $0.20 per share. The most recent dividend was paid on July 31, 2024, to stockholders of record as of July 18, 2024.
Forward Guidance and Stock Movement
The company remains optimistic about sustaining profitability and generating shareholder value in fiscal 2025. A-Mark's share price saw a slight decrease of approximately 0.75% following the earnings release.
In summary, A-Mark Precious Metals faced challenges in fiscal 2024, with declines in key financial metrics year-over-year. NULLtheless, its strategic decisions and adaptive measures have positioned the company for continued growth and resilience as it looks forward to fiscal 2025.
