Fri, Sep 13, 7:01 PM (123 days ago)
A-Mark Precious Metals, Inc. reported a fiscal year ending June 30, 2024, with revenues of $9,699 million, a 4.4% increase from the previous year. However, gross profit fell significantly by 41.2% to $173 million, reflecting lower volumes in gold and silver sales, which dropped by 31.0% and 30.8%, respectively. Despite increased average selling prices for both metals, the overall gross margin decreased from 3.173% to 1.786%. Operating expenses rose slightly by 5.3%, while interest income increased 22.2% due to higher loan balances and rates. Interest expense also surged by 25.4%, attributed to rising rates on the Trading Credit Facility. Net income dropped 56% to $69 million, with diluted earnings per share falling to $2.84. Strategically, A-Mark expanded its operations through acquisitions, notably LPM Group and SGB, enhancing its market position in Asia and Canada. However, risks include dependence on credit facilities and market volatility in precious metals. The company maintains a robust liquidity position with a $422.5 million credit line, essential for operational financing. Future outlook hinges on macroeconomic conditions and effective management of acquisitions and market risks.