A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q2 2019 Earnings Conference Call Transcript
Feb 11, 2019 • 04:30 pm ET
Good afternoon, and welcome to A-Mark Precious Metals' Conference Call for the Fiscal Second Quarter 2019 ended December 31st, 2018. My name is Jeremy, and I will be your operator this afternoon.
Before this call, A-Mark issued its results for the fiscal second quarter of 2019 in a press release, which is available in the Investor Relations section of the Company's website at www.amark.com. You can find the link to the Investor Relations section at the top of the homepage.
Joining us for today's call are A-Mark's CEO, Greg Roberts; President, Thor Gjerdrum; and CFO, Cary Dickson. Following their remarks, we will open the call to your questions. Then, before we conclude the call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call.
I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of A-Mark's website.
Now, I would like to turn the call over to A-Mark's CEO, Mr. Greg Roberts. Sir, please proceed.
Gregory N. Roberts
Thank you, Jeremy, and welcome, everyone. Good afternoon, and thank you for joining us. In the second quarter, we saw a continuation of the momentum we experienced in Q1 resulting in another solid quarter for A-Mark. These results were driven in part by the favorable market conditions in the precious metals market, where we saw a continued price volatility, which produced higher demand and supply constraints. In fact, the number of silver ounces we sold in the quarter was up 10% sequentially and 68% year-over-year to over 20 million ounces, our highest level in nearly two years.
A-Mark's vertically integrated structure and especially our minting capabilities through SilverTowne Mint gave us a key and sustainable competitive advantage by enabling us to meet the surge in demand. I'll talk more about our business segments, operational highlights and outlook in a bit, but first I'd like to invite our CFO, Cary Dickson to walk us through the financial details for the quarter and first six months of the year. Then our President, Thor Gjerdrum will review our key performance metrics. And finally, I will come back on to provide an update on our execution of strategy in each of our business segments, as well as discuss our strategic initiatives and outlook for the rest of fiscal 2019.
Cary take it away.
Thank you, Greg, and good afternoon, everyone. Turning to our financial results for the fiscal second quarter and the first six months ended December 31, 2018. Our revenues for the fiscal Q2 2019 decreased 35% to $1.1 billion from $1.68 billion in the same year-ago quarter. For the first six months of the year, our revenues decreased 31% to $2.67 billion from $3.84 billion in the same period last year. The decrease for both the fiscal second quarter and the first six months of 2019 was mainly due to lower forward sales and lower gold and silver prices, which were offset by an increase