A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q4 2019 Earnings Conference Call Transcript

Sep 12, 2019 • 04:30 pm ET

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A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to A-Mark Precious Metals Conference Call for the Fiscal Fourth Quarter and Full-Year Ended June 30, 2019. My name is Hector, and I'll be your operator this afternoon. Before this call, A-Mark issued its results for the fiscal fourth quarter and full-year 2019 in the 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.

Executive
Gregory N. Roberts

Thanks Hector, and good afternoon, everyone. Thank you for joining our fiscal fourth quarter and full-year 2019 earnings call. During fiscal 2019, we continued to execute on our long-term strategic plan to expand our platforms of products and services as well as increase our market share in the global precious metals market. The year was highlighted by several operational achievements, perhaps most notably the successful $100 million asset-based securitization completed in the first quarter as well as our online application and account management system we launched in our secured lending segment. These achievements were complemented by a number of incremental upgrades and initiatives we implemented across our organization with the goal of driving greater efficiencies and an improved customer experience.

Our continued execution and operational progress we made throughout the year helped to drive a meaningful improvement in our key financial metrics as well. This included a 9% increase in gross profit and a 20% increase in interest income, as well as a return to profitability. We were able to achieve these improvements despite headwinds in the precious metals market throughout the year, including a particularly challenging fourth quarter, where demand for physical gold was weak and volumes were down compared to the prior quarter.

Nevertheless, our solid performance for the full fiscal year demonstrates the true durability of our diversified business model. Before I talk more about our platform, business segments and growth opportunities, I'll turn it over to our CFO, Cary Dickson, who will walk you through our financial performance for fiscal Q4 and full-year 2019. Cary?

Executive
Cary Dickson

Thank you, Greg, and good afternoon to everybody. Turning to our financial results for the fiscal fourth quarter and the full-year ended June 30, 2019. Our revenues for fiscal Q4, 2019 decreased 52% to $850 million from $1.77 billion in Q4 of last year. The decrease in revenues was mainly due to lower forward sales, gold ounces sold and silver prices offset by