• A-Mark Precious Metals Reports Fiscal Fourth Quarter and Full Year 2023 Results

    Source: Nasdaq GlobeNewswire / 31 Aug 2023 15:05:01   America/Chicago

    FY 2023 Diluted Earnings Per Share of $6.34 up from $5.45 in FY 2022

    $9.3 Billion of Revenues for Full Year 2023

    Record FY 2023 Non-GAAP EBITDA of $225 Million

    46% Year-over-Year Increase in Direct-to-Consumer New Customers

    Company Declares Non-recurring Special Dividend of $1.00 per share

    EL SEGUNDO, Calif., Aug. 31, 2023 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, reported results for the fiscal fourth quarter and full year ended June 30, 2023.

    Management Commentary

    “Fiscal year 2023 marked another year of strong financial and operational performance, underscoring the strength of our industry-leading fully integrated precious metals platform,” said A-Mark CEO Greg Roberts. “Our full year gross profit and net income before taxes grew 13% and 22% year-over-year, respectively, and we also generated a 29% return on equity for the year. Diluted earnings per share increased 16% compared with last fiscal year, and we also delivered record levels of EBITDA of $225 million. New customers in our Direct-to-Consumer segment increased 46%, highlighting the success of our strategic acquisitions.

    “Our fourth quarter results contributed to a strong finish to the fiscal year with net income of $41.8 million and diluted earnings per share of $1.71. Our integrated capabilities and access to inventory provided us with a consistent source of supply to meet the elevated demand from the heightened market volatility experienced during the quarter.

    “Reflecting on the full year, I am very proud of our many accomplishments and the execution of our growth strategy. During the year we added minority interests in UK-based Atkinsons Bullion & Coins and Texas Precious Metals to our investments portfolio and also closed the BGASC and BullionMax asset acquisitions, further expanding our Direct-to-Consumer customer base. We also bolstered our minting operations by investing in the expansion of our Silver Towne Mint facility, which now consistently produces over one million ounces of silver per week and achieved ISO 9000:2015 Certification during the year, reaffirming the company’s reputation as a leading manufacturer of quality bullion products. Additionally, we repurchased $9.8 million of our common stock creating additional value for our stockholders.

    “Looking ahead to fiscal 2024, we continue to evaluate opportunities to further expand our geographic presence and market reach to create stockholder value. We also continue to invest in our minting and logistics operations to further increase capacity and enhance our fully integrated platform. We remain optimistic that our diversified and proven business model will allow us to sustain profitability and realize growth over the long term.”

    Fiscal Fourth Quarter 2023 Operational Highlights

    • Gold ounces sold in the three months ended June 30, 2023 increased 27% to 814,000 ounces from 641,000 ounces for the three months ended June 30, 2022, and increased 24% from 659,000 ounces for the three months ended March 31, 2023
    • Silver ounces sold in the three months ended June 30, 2023 increased 20% to 45.3 million ounces from 37.6 million ounces for the three months ended June 30, 2022, and increased 23% from 36.9 million ounces for the three months ended March 31, 2023
    • As of June 30, 2023, the number of secured loans decreased 61% to 882 from 2,271 as of June 30, 2022, and decreased 8% from 963 as of March 31, 2023
    • Direct-to-Consumer new customers for the three months ended June 30, 2023 increased 85% to 90,400 from 48,800 for the three months ended June 30, 2022, and increased 40% from 64,700 for the three months ended March 31, 2023. For the three-month period ended June 30, 2023, approximately 32% of the new customers were attributable to the acquired customer list of BullionMax in June 2023
    • Direct-to-Consumer active customers for the three months ended June 30, 2023 increased 1% to 133,800 from 133,100 for the three months ended June 30, 2022, and decreased 9% from 147,400 for the three months ended March 31, 2023
    • Direct-to-Consumer average order value for the three months ended June 30, 2023 increased $546, or 20% to $3,288 from $2,742 for the three months ended June 30, 2022, and increased $836, or 34% from $2,452 for the three months ended March 31, 2023
    • JM Bullion’s average order value for the three months ended June 30, 2023 increased $458, or 18% to $2,955 from $2,497 for the three months ended June 30, 2022, and increased $703, or 31% from $2,252 for the three months ended March 31, 2023
      Three Months Ended June 30,  
      2023   2022  
    Selected Operating Metrics:        
    Gold ounces sold(1)  814,000    641,000  
    Silver ounces sold(2)  45,273,000    37,597,000  
    Number of secured loans at period end(3)  882    2,271  
    Direct-to-Consumer ("DTC") number of new customers(4)  90,400    48,800  
    Direct-to-Consumer number of active customers(5)  133,800    133,100  
    Direct-to-Consumer number of total customers(6)  2,348,300    2,013,000  
    Direct-to-Consumer average order value ("AOV")(7) $3,288   $2,742  
    JM Bullion ("JMB") average order value(8) $2,955   $2,497  
    CyberMetals number of new customers(9)  5,200    5,200  
    CyberMetals number of active customers(10)  1,700    2,800  
    CyberMetals number of total customers(11)  22,400    5,900  
    CyberMetals customer assets under management(12) $6,500,000   $3,700,000  
             
             
    (1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts.
    (2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts.
    (3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period.
    (4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment.
    (5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment.
    (6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment.
    (7) DTC AOV represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment.
    (8) JMB AOV represents the average dollar value of product orders delivered to JMB's customers during the period.
    (9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or have made a purchase for the first time during the period on the CyberMetals platform.
    (10) CyberMetals number of active customers represents the number of customers that have made a purchase during any month during the period from the CyberMetals platform.
    (11) CyberMetals number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past from the CyberMetals platform.
    (12) CyberMetals customer assets under management represents the total value of assets managed by the Company on behalf of CyberMetals customers.


      Three Months Ended  
      June 30, 2023   March 31, 2023  
    Selected Operating Metrics:        
    Gold ounces sold(1)  814,000    659,000  
    Silver ounces sold(2)  45,273,000    36,906,000  
    Number of secured loans at period end(3)  882    963  
    Direct-to-Consumer ("DTC") number of new customers(4)  90,400    64,700  
    Direct-to-Consumer number of active customers(5)  133,800    147,400  
    Direct-to-Consumer number of total customers(6)  2,348,300    2,257,900  
    Direct-to-Consumer average order value ("AOV")(7) $3,288   $2,452  
    JM Bullion ("JMB") average order value(8) $2,955   $2,252  
    CyberMetals number of new customers(9)  5,200    4,800  
    CyberMetals number of active customers(10)  1,700    1,500  
    CyberMetals number of total customers(11)  22,400    17,200  
    CyberMetals customer assets under management(12) $6,500,000   $6,500,000  
             
             
    (1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts.
    (2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts.
    (3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period.
    (4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment.
    (5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment.
    (6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment.
    (7) DTC AOV represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment.
    (8) JMB AOV represents the average dollar value of product orders delivered to JMB's customers during the period.
    (9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or have made a purchase for the first time during the period on the CyberMetals platform.
    (10) CyberMetals number of active customers represents the number of customers that have made a purchase during any month during the period from the CyberMetals platform.
    (11) CyberMetals number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past from the CyberMetals platform.
    (12) CyberMetals customer assets under management represents the total value of assets managed by the Company on behalf of CyberMetals customers.

    Full Year 2023 Operational Highlights

    • Gold ounces sold in the fiscal year ended June 30, 2023 remained relatively unchanged at 2,667,000 ounces compared to 2,668,000 in the fiscal year ended June 30, 2022
    • Silver ounces sold in the fiscal year ended June 30, 2023 increased 18% to 156.2 million ounces from 132.2 million ounces in the fiscal year ended June 30, 2022
    • Direct-to-Consumer new customers for the fiscal year ended June 30, 2023 increased 46% to 335,300 from 230,400 for the fiscal year ended June 30, 2022. Approximately 31% of the new customers in fiscal year 2023 were attributable to the acquired customer lists of BGASC and BullionMax in October 2022 and June 2023, respectively
    • Direct-to-Consumer active customers for the fiscal year ended June 30, 2023 decreased 24% to 476,300 from 623,700 for the fiscal year ended June 30, 2022
    • Direct-to-Consumer average order value for the fiscal year ended June 30, 2023 increased $86, or 3% to $2,606 from $2,520 for the fiscal year ended June 30, 2022
    • JM Bullion’s average order value for the fiscal year ended June 30, 2023 increased $62, or 3% to $2,390 from $2,328 for the fiscal year ended June 30, 2022
      Year Ended June 30,  
      2023   2022  
    Selected Operating Metrics:        
    Gold ounces sold(1)  2,667,000    2,668,000  
    Silver ounces sold(2)  156,233,000    132,209,000  
    Number of secured loans at period end(3)  882    2,271  
    Direct-to-Consumer ("DTC") number of new customers(4)  335,300    230,400  
    Direct-to-Consumer number of active customers(5)  476,300    623,700  
    Direct-to-Consumer number of total customers(6)  2,348,300    2,013,000  
    Direct-to-Consumer average order value ("AOV")(7) $2,606   $2,520  
    JM Bullion ("JMB") average order value(8) $2,390   $2,328  
    CyberMetals number of new customers(9)  16,500    5,900  
    CyberMetals number of active customers(10)  4,800    3,000  
    CyberMetals number of total customers(11)  22,400    5,900  
    CyberMetals customer assets under management(12) $6,500,000   $3,700,000  
             
             
    (1) Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts.
    (2) Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts.
    (3) Number of outstanding secured loans to customers that are primarily collateralized by precious metals at the end of the period.
    (4) DTC number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period within the Direct-to-Consumer segment.
    (5) DTC number of active customers represents the number of customers that have made a purchase during any month during the period within the Direct-to-Consumer segment.
    (6) DTC number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past within the Direct-to-Consumer segment.
    (7) DTC AOV represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period within the Direct-to-Consumer segment.
    (8) JMB AOV represents the average dollar value of product orders delivered to JMB's customers during the period.
    (9) CyberMetals number of new customers represents the number of customers that have registered or set up a new account or have made a purchase for the first time during the period on the CyberMetals platform.
    (10) CyberMetals number of active customers represents the number of customers that have made a purchase during any month during the period from the CyberMetals platform.
    (11) CyberMetals number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past from the CyberMetals platform.
    (12) CyberMetals customer assets under management represents the total value of assets managed by the Company on behalf of CyberMetals customers.

    Fiscal Fourth Quarter 2023 Financial Highlights

    • Revenues for the three months ended June 30, 2023 increased 51% to $3.16 billion from $2.09 billion for the three months ended June 30, 2022 and increased 36% from $2.32 billion for the three months ended March 31, 2023
    • Gross profit for the three months ended June 30, 2023 increased 16% to $78.6 million from $67.8 million for the three months ended June 30, 2022 and increased 4% from $75.5 million for the three months ended March 31, 2023
    • Gross profit margin for the three months ended June 30, 2023 decreased to 2.49% of revenue from 3.24% of revenue for the three months ended June 30, 2022, and decreased from 3.26% of revenue in the three months ended March 31, 2023
    • Net income attributable to the Company for the three months ended June 30, 2023 increased 12% to $41.8 million from $37.3 million for the three months ended June 30, 2022, and increased 16% from $35.9 million for the three months ended March 31, 2023
    • Diluted earnings per share totaled $1.71 for the three months ended June 30, 2023, a 12% increase compared to $1.52 for the three months ended June 30, 2022, and increased 17% from $1.46 for the three months ended March 31, 2023
    • Adjusted net income before provision for income taxes, depreciation, amortization, and acquisition costs (“Adjusted net income before provision for income taxes” or “Adjusted net income”), a non-GAAP financial performance measure, for the three months ended June 30, 2023 increased 17% to $59.1 million from $50.6 million for the three months ended June 30, 2022, and increased 20% from $49.2 million for the three months ended March 31, 2023
    • Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP liquidity measure, for the three months ended June 30, 2023 increased 23% to $61.8 million from $50.3 million for the three months ended June 30, 2022, and increased 18% from $52.3 million for the three months ended March 31, 2023
      Three Months Ended June 30,  
      2023   2022  
      (in thousands, except Earnings
    per Share)    		  
             
    Selected Key Financial Statement Metrics:        
    Revenues $3,155,201   $2,089,804  
    Gross profit $78,610   $67,750  
    Depreciation and amortization expense $(2,741)  $(3,223) 
    Net income attributable to the Company $41,834   $37,336  
             
    Earnings per Share:        
    Basic $1.80   $1.62  
    Diluted $1.71   $1.52  
             
    Non-GAAP Measures(1):        
    Adjusted net income before provision for income taxes $59,084   $50,628  
    EBITDA $61,844   $50,254  
             
    (1) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages 21-23
    		  
       


      Three Months Ended  
      June 30, 2023   March 31, 2023  
      (in thousands, except Earnings
    per Share)    		  
             
    Selected Key Financial Statement Metrics:        
    Revenues $3,155,201   $2,317,150  
    Gross profit $78,610   $75,498  
    Depreciation and amortization expense $(2,741)  $(3,340) 
    Net income attributable to the Company $41,834   $35,920  
             
    Earnings per Share:        
    Basic $1.80   $1.53  
    Diluted $1.71   $1.46  
             
    Non-GAAP Measures(1):        
    Adjusted net income before provision for income taxes $59,084   $49,151  
    EBITDA $61,844   $52,263  
             
    (1) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages 21-23  
             

    Full Year 2023 Financial Highlights

    • Revenues for the fiscal year ended June 30, 2023 increased 14% to $9.32 billion from $8.16 billion for the fiscal year ended June 30, 2022
    • Gross profit for the fiscal year ended June 30, 2023 increased 13% to $294.7 million from $261.8 million for the fiscal year ended June 30, 2022
    • Gross profit margin for the fiscal year ended June 30, 2023 decreased to 3.16% of revenue from 3.21% of revenue for the fiscal year ended June 30, 2022
    • Net income attributable to the Company for the fiscal year ended June 30, 2023 increased 18% to $156.4 million from $132.5 million for the fiscal year ended June 30, 2022
    • Diluted earnings per share totaled $6.34 for the fiscal year ended June 30, 2023, a 16% increase compared to $5.45 for the fiscal year ended June 30, 2022
    • Adjusted net income for the fiscal year ended June 30, 2023 increased 11% to $216.0 million from $195.0 million for the fiscal year ended June 30, 2022
    • EBITDA for the fiscal year ended June 30, 2023 increased 16% to $225.0 million from $193.9 million for the fiscal year ended June 30, 2022
      Year Ended June 30,  
      2023   2022  
      (in thousands, except Earnings
    per Share)    		  
             
    Selected Key Financial Statement Metrics:        
    Revenues $9,322,407   $8,159,254  
    Gross profit $294,669   $261,765  
    Depreciation and amortization expense $(12,525)  $(27,300) 
    Net income attributable to the Company $156,360   $132,536  
             
    Earnings per Share:        
    Basic $6.68   $5.81  
    Diluted $6.34   $5.45  
             
    Non-GAAP Measures(1):        
    Adjusted net income before provision for income taxes $215,980   $195,000  
    EBITDA $224,992   $193,909  
             
    (1) See Reconciliation of U.S. GAAP to Non-GAAP Measures on pages 21-23
    		  
       

    Fiscal Fourth Quarter 2023 Financial Summary

    Revenues increased 51% to $3.16 billion from $2.09 billion in the same year-ago quarter due to increases in gold and silver ounces sold and higher average selling prices of gold and silver.

    The Direct-to-Consumer segment contributed 19% and 23% of the consolidated revenue in the fiscal fourth quarters of 2023 and 2022, respectively. JMB’s revenue represented 17% of the consolidated revenues for the fiscal fourth quarter of 2023 compared with 21% for the prior year fiscal fourth quarter.

    Gross profit increased 16% to $78.6 million (2.49% of revenue) from $67.8 million (3.24% of revenue) in the same year-ago quarter. The increase in gross profit was due to higher gross profits earned from the Wholesale Sales & Ancillary Services Segment and Direct-to-Consumer segments. The Direct-to-Consumer segment contributed 60% and 57% of the consolidated gross profit in the fiscal fourth quarters of 2023 and 2022, respectively. Gross profit contributed by JMB represented 49% of the consolidated gross profit in the fiscal fourth quarter of 2023 and 46% of the consolidated gross profit for the prior year fiscal fourth quarter.

    Selling, general, and administrative expenses increased 10% to $22.8 million from $20.7 million in the same year-ago quarter. The increase was primarily due to an increase in compensation expense (including performance-based accruals) of $1.3 million, higher advertising costs of $1.1 million, higher information technology costs of $0.9 million, and higher consulting and professional fees of $0.4 million, partially offset by lower insurance costs of $2.1 million.

    Depreciation and amortization expense decreased 15% to $2.7 million from $3.2 million in the same year-ago quarter. The decrease in depreciation and amortization expense was primarily due to a decrease in amortization of acquired intangibles related to JMB.

    Interest income increased 7% to $6.1 million from $5.7 million in the same year-ago quarter. The increase in interest income was primarily due to higher finance product income from our Wholesale Sales & Ancillary Services segment partially offset by a decrease in interest income earned by our Secured Lending segment.

    Interest expense increased 57% to $8.9 million from $5.7 million in the same year-ago quarter. The increase in interest expense was primarily driven by a $2.4 million increase associated with our Trading Credit Facility (primarily due to an increase in interest rates) and Notes Payable (including amortization of debt issuance costs), and a $0.8 million increase related to product financing arrangements.

    Earnings from equity method investments increased 105% to $5.3 million from $2.6 million in the same year-ago quarter. The increase reflects our new investments made during the year as well as the higher percentage ownership in our existing equity method investments in comparison to the prior year.

    Net income attributable to the Company totaled $41.8 million or $1.71 per diluted share, compared to net income of $37.3 million or $1.52 per diluted share in the same year-ago quarter.

    Adjusted net income for the three months ended June 30, 2023 totaled $59.1 million, compared to $50.6 million in the same year-ago quarter. The increase was principally due to higher net income before provision for income taxes of $9.2 million, partially offset by $0.6 million of lower amortization of acquired intangibles and $0.3 million of lower acquisition costs.

    EBITDA for the three months ended June 30, 2023 totaled $61.8 million, compared to $50.3 million in the same year-ago quarter. The increase was principally due to an increase in income tax expense of $4.8 million, an increase in net income of $4.5 million, an increase in interest expense of $3.2 million, partially offset by a decrease in amortization of acquired intangibles of $0.6 million, and an increase in interest income of $0.4 million.

    Full Year 2023 Financial Summary

    Revenues increased 14% to $9.32 billion from $8.16 billion in the prior fiscal year. Excluding a $1.2 billion increase in forward sales, revenues increased by $2.6 million, driven primarily by an increase in silver ounces sold and higher average selling prices of gold, partially offset by a decrease in gold ounces sold and lower average selling prices of silver.

    The Direct-to-Consumer segment contributed 21% and 26% of the consolidated revenue in the fiscal year ended June 30, 2023 and 2022, respectively. JMB's revenue represented 19% and 24% of the Company's consolidated revenue for the fiscal years ended June 30, 2023 and 2022, respectively.

    Gross profit increased 13% to $294.7 million (3.16% of revenue) in fiscal year 2023 from $261.8 million (3.21% of revenue) in the prior year. Excluding a $1.2 billion increase in forward sales which have a negligible impact to gross profit, the gross profit percentage increased to 4.27% from 3.79% in the prior fiscal year. The increase in gross profit was due to higher gross profits earned from both the Wholesale Sales & Ancillary Services and Direct-to-Consumer segments. The Direct-to-Consumer segment contributed 57% and 56% of the consolidated gross profit in fiscal year 2023 and 2022, respectively. Gross profit contributed by JMB represented 49% and 46% of the consolidated gross profit during the fiscal year ended June 30, 2023 and 2022, respectively.

    Selling, general and administrative expenses increased 11% to $85.3 million from $76.6 million in the prior fiscal year. The increase was primarily due to an increase in compensation expense (including performance-based accruals) of $6.4 million, higher advertising costs of $3.5 million, an increase in information technology costs of $1.7 million, partially offset by a decrease in insurance costs of $1.7 million and lower consulting and professional fees of $2.0 million.

    Depreciation and amortization expense decreased 54% to $12.5 million from $27.3 million in fiscal 2022. The decrease was primarily due to $14.9 million of lower amortization of acquired intangibles related to JMB.

    Interest income increased 2% to $22.2 million from $21.8 million in the prior fiscal year. The increase was primarily due to $1.8 million of higher other finance product income, partially offset by $1.4 million of lower interest income earned by our Secured Lending segment.

    Interest expense increased 43% to $31.5 million from $22.0 million in fiscal year 2022. The increase in interest expense was primarily driven by $7.2 million associated with the Company’s Trading Credit Facility (primarily due to an increase in interest rates) and Notes Payable (including amortization of debt issuance costs), $2.6 million related to product financing arrangements, and $0.6 million in interest associated with liabilities on borrowed metals, partially offset by a decrease of $0.9 million of loan servicing fees.

    Earnings from equity method investments increased 82% to $12.6 million from $6.9 million in the prior fiscal year. The increase of $5.7 million was primarily due to the additional 40% ownership interest in Silver Gold Bull, Inc., which was acquired in June 2022, as well as earnings from other equity method investments.

    Net income attributable to the Company totaled $156.4 million or $6.34 per diluted share, compared to net income attributable to the Company of $132.5 million or $5.45 per diluted share in the prior fiscal year.

    Adjusted net income for the fiscal year ended June 30, 2023 totaled $216.0 million, an increase of approximately $21.0 million or 11% compared to $195.0 million in the prior fiscal year. The increase was principally due to higher net income before provision for income taxes of $36.8 million, partially offset by a decrease in amortization of acquired intangibles of $15.3 million.

    EBITDA for fiscal year 2023 totaled $225.0 million, an increase of $31.1 million or 16% compared to $193.9 million in the prior fiscal year. The increase was principally due to higher net income of $23.7 million, higher income tax expense of $13.1 million, and higher interest expense of $9.5 million, partially offset by lower amortization of acquired intangibles of $15.3 million.

    Dividends

    Special Dividend

    A-Mark’s Board of Directors has declared a non-recurring special cash dividend of $1.00 per common share. The special dividend will be paid on September 26, 2023 to stockholders of record as of September 12, 2023.

    Regular Quarterly Cash Dividend

    A-Mark’s Board of Directors has declared a quarterly cash dividend of $0.20 per common share, maintaining the Company’s current dividend program. The dividend is payable on October 24, 2023 to stockholders of record as of October 10, 2023.

    Conference Call

    A-Mark will hold a conference call today (August 31, 2023) to discuss these financial results. A-Mark management will host the call at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) followed by a question-and-answer period.

    To participate, please call the conference telephone number 10 minutes before the start time and ask for the A-Mark Precious Metals conference call.

    Webcast: https://www.webcaster4.com/Webcast/Page/2867/48656

    U.S. dial-in number: 1-888-506-0062
    International number: 1-973-528-0011
    Access Code: 250722

    The conference call will be webcast simultaneously and available for replay via the Investor Relations section of A-Mark’s website at www.amark.com. If you have any difficulty connecting with the conference call or webcast, please contact A-Mark’s investor relations team at 1-949-574-3860.

    A replay of the call will be available after 7:30 p.m. Eastern time on the same day through September 14, 2023.

    Toll-free replay number: 1-877-481-4010
    International replay number: 1-919-882-2331
    Replay Passcode: 48656

    About A-Mark Precious Metals

    Founded in 1965, A-Mark Precious Metals, Inc. is a leading fully integrated precious metals platform that offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins, and related products to wholesale and retail customers via a portfolio of channels. The company conducts its operations through three complementary segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The company’s global customer base spans sovereign and private mints, manufacturers and fabricators, refiners, dealers, financial institutions, industrial users, investors, collectors, e-commerce customers, and other retail customers.

    A-Mark’s Wholesale Sales & Ancillary Services segment distributes and purchases precious metal products from sovereign and private mints. As a U.S. Mint-authorized purchaser of gold, silver, and platinum coins since 1986, A-Mark purchases bullion products directly from the U.S. Mint for sale to customers. A-Mark also has longstanding distributorships with other sovereign mints, including Australia, Austria, Canada, China, Mexico, South Africa, and the United Kingdom. The company sells more than 200 different products to e-commerce retailers, coin and bullion dealers, financial institutions, brokerages, and collectors. In addition, A-Mark sells precious metal products to industrial users, including metal refiners, manufacturers, and electronic fabricators.

    Through its A-M Global Logistics subsidiary, A-Mark provides its customers with a range of complementary services, including managed storage options for precious metals as well as receiving, handling, inventorying, processing, packaging, and shipping of precious metals and coins on a secure basis. A-Mark’s mint operations, which are conducted through its wholly owned subsidiary Silver Towne Mint, enable the company to offer customers a wide range of proprietary coin and bar offerings and, during periods of market volatility when the availability of silver bullion from sovereign mints is often product constrained, preferred product access.

    A-Mark’s Direct-to-Consumer segment operates as an omni-channel retailer of precious metals, providing access to a multitude of products through its wholly owned subsidiaries, JM Bullion and Goldline. JM Bullion is a leading e-commerce retailer of precious metals and operates seven separately branded, company-owned websites targeting specific niches within the precious metals market: JMBullion.com, ProvidentMetals.com, Silver.com, GoldPrice.org, SilverPrice.org, BGASC.com and BullionMax.com. JMB also owns CyberMetals.com, an online platform where customers can purchase and sell fractional shares of digital gold, silver, platinum, and palladium bars in a range of denominations. Goldline markets precious metals directly to the investor community through various channels, including television, radio, and telephonic sales efforts. A-Mark also holds minority ownership interests in four additional direct-to-consumer brands.

    The company operates its Secured Lending segment through its wholly owned subsidiaries, Collateral Finance Corporation (CFC) and AM Capital Funding. Founded in 2005, CFC is a California licensed finance lender that originates and acquires loans secured by bullion and numismatic coins. Its customers include coin and precious metal dealers, investors, and collectors. AM Capital Funding was formed in 2018 for the purpose of securitizing eligible secured loans of CFC.

    A-Mark is headquartered in El Segundo, CA and has additional offices and facilities in the neighboring Los Angeles area as well as in Dallas, TX, Las Vegas, NV, Winchester, IN, and Vienna, Austria. For more information, visit www.amark.com.

    A-Mark periodically provides information for investors on its corporate website, www.amark.com, and its investor relations website, ir.amark.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and investor presentations.

    Important Cautions Regarding Forward-Looking Statements

    Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These include statements regarding expectations with respect to the dividend declarations, the amount or timing of any future dividends, future macroeconomic conditions and demand for precious metal products, and the Company’s ability to effectively respond to changing economic conditions. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results or circumstances to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: the failure to execute the Company’s growth strategy, including the inability to identify suitable or available acquisition or investment opportunities; greater than anticipated costs incurred to execute this strategy; changes in the current international political climate, which has favorably contributed to demand and volatility in the precious metals markets; potential adverse effects of the current problems in the national and global supply chains; increased competition for the Company’s higher margin services, which could depress pricing; the failure of the Company’s business model to respond to changes in the market environment as anticipated; changes in consumer demand and preferences for precious metal products generally; potential negative effects that inflationary pressure may have on our business; the inability of the Company to expand capacity at Silver Towne Mint, the failure of our investee companies to maintain, or address the preferences of, their customer bases; general risks of doing business in the commodity markets; and the strategic, business, economic, financial, political and governmental risks and other Risk Factors described in in the Company’s public filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

    Use and Reconciliation of Non-GAAP Measures

    In addition to presenting the Company’s financial results determined in accordance with U.S. GAAP, management believes the following non-GAAP measures are useful in evaluating the Company’s operating performance: “adjusted net income before provision for income taxes” and “earnings before interest, taxes, depreciation and amortization” (“EBITDA”). Management believes the “adjusted net income before provision for income taxes” non-GAAP financial performance measure assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that management does not believe are indicative of the Company’s core operating performance. The items excluded from this financial measure may have a material impact on the Company’s financial results. Certain of those items are non-recurring, while others are non-cash in nature. Management believes the EBITDA non-GAAP liquidity measure assists investors and analysts by facilitating comparison of our business operations before investing activities, interest, and income taxes with other publicly traded companies. Non-GAAP measures do not have standardized definitions and should be considered in addition to, and not as a substitute for or superior to, the comparable measures prepared in accordance with U.S. GAAP, and should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K to be filed with the SEC. Management encourages investors and others to review the Company’s financial information in its entirety and not to rely on any single financial or liquidity measure.

    In the Company’s reconciliation from its reported U.S. GAAP “net income before provision for income taxes” to its non-GAAP “adjusted net income before provision for income taxes”, the Company eliminates the impact of the following three amounts: (i) acquisition expenses; (ii) amortization expenses related to intangible assets acquired; and (iii) depreciation expense. The Company’s reconciliations from its reported U.S. GAAP “net income before provision for income taxes” to its non-GAAP “adjusted net income before provision for income taxes”, and “net income” and “net cash provided by (used in) operating activities” to its non-GAAP “EBITDA” are provided below and are also included in the Company’s Annual Report on Form 10-K to be filed with the SEC for the fiscal year ended June 30, 2023.

    Company Contact:
    Steve Reiner, Executive Vice President, Capital Markets & Investor Relations
    A-Mark Precious Metals, Inc.
    1-310-587-1410
    sreiner@amark.com

    Investor Relations Contact:
    Matt Glover and Matthew Hausch
    Gateway Group, Inc.
    1-949-574-3860
    AMRK@gateway-grp.com

    A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (amounts in thousands, except for share data)
      June 30, 2023  June 30, 2022 
    ASSETS      
    Current assets      
    Cash $39,318  $37,783 
    Receivables, net  35,243   97,040 
    Derivative assets  77,881   91,743 
    Secured loans receivable  100,620   126,217 
    Precious metals held under financing arrangements  25,530   79,766 
    Inventories:      
    Inventories  645,812   458,347 
    Restricted inventories  335,831   282,671 
       981,643   741,018 
    Prepaid expenses and other assets  6,956   7,558 
    Total current assets  1,267,191   1,181,125 
    Operating lease right of use assets  5,119   6,482 
    Property, plant, and equipment, net  12,513   9,845 
    Goodwill  100,943   100,943 
    Intangibles, net  62,630   67,965 
    Long-term investments  88,535   70,828 
    Other long-term assets  8,640   5,471 
    Total assets $1,545,571  $1,442,659 
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities      
    Lines of credit $235,000  $215,000 
    Liabilities on borrowed metals  21,642   59,417 
    Product financing arrangements  335,831   282,671 
    Accounts payable and other payables  25,465   6,127 
    Deferred revenue and other advances  181,363   175,545 
    Derivative liabilities  8,076   75,780 
    Accrued liabilities  20,418   21,813 
    Income tax payable  958   382 
    Notes payable  95,308   — 
    Total current liabilities  924,061   836,735 
    Notes payable  —   94,073 
    Deferred tax liabilities  16,677   15,408 
    Other liabilities  4,440   5,972 
    Total liabilities  945,178   952,188 
    Commitments and contingencies      
    Stockholders’ equity      
    Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of June 30, 2023 or June 30, 2022  —   — 
    Common stock, par value $0.01; 40,000,000 shares authorized; 23,672,122 and 23,379,888 shares issued and 23,336,387 and 23,379,888 shares outstanding as of June 30, 2023 and June 30, 2022, respectively  237   234 
    Treasury stock, 335,735 and 0 shares at cost as of June 30, 2023 and June 30, 2022, respectively  (9,762)  — 
    Additional paid-in capital  169,034   166,526 
    Accumulated other comprehensive loss  (1,025)  — 
    Retained earnings  440,639   321,849 
    Total A-Mark Precious Metals, Inc. stockholders’ equity  599,123   488,609 
    Noncontrolling interest  1,270   1,862 
    Total stockholders’ equity  600,393   490,471 
    Total liabilities, noncontrolling interest and stockholders’ equity $1,545,571  $1,442,659 


    A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (in thousands, except for share and per share data)
      Year Ended June 30, 
      2023  2022  2021 
    Revenues $9,322,407  $8,159,254  $7,613,015 
    Cost of sales  9,027,738   7,897,489   7,402,817 
    Gross profit  294,669   261,765   210,198 
    Selling, general, and administrative expenses  (85,282)  (76,618)  (48,020)
    Depreciation and amortization expense  (12,525)  (27,300)  (10,789)
    Interest income  22,231   21,800   18,474 
    Interest expense  (31,528)  (21,992)  (19,865)
    Earnings from equity method investments  12,576   6,907   15,547 
    Other income, net  2,663   1,953   1,079 
    Remeasurement gain on pre-existing equity interest  —   —   26,306 
    Unrealized gains (losses) on foreign exchange  366   (98)  (129)
    Net income before provision for income taxes  203,170   166,417   192,801 
    Income tax expense  (46,401)  (33,338)  (31,877)
    Net income  156,769   133,079   160,924 
    Net income attributable to noncontrolling interest  409   543   1,287 
    Net income attributable to the Company $156,360  $132,536  $159,637 
    Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:         
    Basic $6.68  $5.81  $9.57 
    Diluted $6.34  $5.45  $8.90 
              
    Weighted average shares outstanding:         
    Basic  23,400,300   22,805,600   16,686,600 
    Diluted  24,648,600   24,329,500   17,944,600 


    A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (amounts in thousands)
      Year Ended June 30, 
      2023  2022  2021 
    Cash flows from operating activities:         
    Net income $156,769  $133,079  $160,924 
    Adjustments to reconcile net income to net cash used in operating activities:         
    Depreciation and amortization  12,525   27,300   10,789 
    Amortization of loan cost  2,113   2,651   2,162 
    Deferred income taxes  1,585   (4,106)  (2,034)
    Share-based compensation  2,176   2,140   1,173 
    Remeasurement gain on pre-existing equity method investment  —   —   (26,306)
    Earnings from equity method investments  (12,576)  (6,907)  (15,547)
    Dividends and distributions received from equity method investees  978   1,678   343 
    Other  (155)  215   (13)
    Changes in assets and liabilities:         
    Receivables, net  61,797   (8,040)  (20,880)
    Secured loans receivable  1,012   757   1,932 
    Secured loans made to affiliates  —   3,042   5,755 
    Derivative assets  13,862   (47,207)  7,447 
    Precious metals held under financing arrangements  54,236   74,976   23,835 
    Inventories  (240,625)  (282,999)  (79,031)
    Prepaid expenses and other assets  (3,336)  (649)  (7)
    Accounts payable and other payables  19,338   192   (86,097)
    Deferred revenue and other advances  5,818   (18,871)  58,651 
    Derivative liabilities  (67,704)  68,241   (20,194)
    Liabilities on borrowed metals  (37,775)  (32,449)  (76,340)
    Accrued liabilities  (937)  2,425   5,686 
    Income tax payable  576   (4,634)  (4,902)
    Net cash used in operating activities  (30,323)  (89,166)  (52,654)
    Cash flows from investing activities:         
    Capital expenditures for property, plant, and equipment  (4,783)  (2,879)  (2,113)
    Purchase of long-term investments  (7,950)  (34,950)  (7,996)
    Purchase of an option to acquire long-term investments  (340)  (5,300)  — 
    Purchase of intangible assets  (5,000)  —   — 
    Secured loans receivable, net  24,599   (17,034)  (56,932)
    Acquisition of remaining noncontrolling equity interest in joint venture  —   —   (1,950)
    Purchase of digital assets  —   (400)  — 
    Proceeds from the sale of digital assets  313   —   — 
    Redemption associated with acquisition of pre-existing equity method investment  —   —   17,457 
    Incremental acquisition of pre-existing equity method investment, net of cash  —   —   (78,859)
    Net cash provided by (used in) investing activities  6,839   (60,563)  (130,393)
    Cash flows from financing activities:         
    Product financing arrangements, net  53,160   81,643   126,350 
    Dividends paid  (37,468)  (22,645)  (21,191)
    Distributions paid to noncontrolling interest  (1,001)  —   — 
    Net borrowings and repayments under lines of credit  20,000   30,000   50,000 
    Repayments on notes payable to related party  (2,955)  —   — 
    Repurchases of common stock  (9,762)  —   — 
    Proceeds from issuance of related party note  3,500   —   — 
    Debt funding issuance costs  (485)  (5,179)  (1,861)
    Net proceeds from the issuance of common stock  —   —   75,344 
    Proceeds from the exercise of share-based awards  1,884   2,323   3,523 
    Payments for tax withholding related to net settlement of share-based awards  (1,854)  (35)  (38)
    Net cash provided by financing activities  25,019   86,107   232,127 
    Net increase (decrease) in cash  1,535   (63,622)  49,080 
    Cash, beginning of period  37,783   101,405   52,325 
    Cash, end of period $39,318  $37,783  $101,405 

    Overview of Results of Operations for the Three Months Ended June 30, 2023 and 2022

    Consolidated Results of Operations

    The operating results for the three months ended June 30, 2023 and 2022 were as follows (in thousands, except per share data):

                
    Three Months Ended June 30, 2023   2022   Change 
      $   % of revenue   $   % of revenue   $   % 
    Revenues $3,155,201    100.000%  $2,089,804    100.000%  $1,065,397    51.0%
    Gross profit  78,610    2.491%   67,750    3.242%  $10,860    16.0%
    Selling, general, and administrative expenses  (22,844)   (0.724%)   (20,734)   (0.992%)  $2,110    10.2%
    Depreciation and amortization expense  (2,741)   (0.087%)   (3,223)   (0.154%)  $(482)   (15.0%)
    Interest income  6,064    0.192%   5,675    0.272%  $389    6.9%
    Interest expense  (8,925)   (0.283%)   (5,695)   (0.273%)  $3,230    56.7%
    Earnings from equity method investments  5,300    0.168%   2,590    0.124%  $2,710    104.6%
    Other income, net  662    0.021%   618    0.030%  $44    7.1%
    Unrealized gains on foreign exchange  116    0.004%   30    0.001%  $86    286.7%
    Net income before provision for income taxes  56,242    1.783%   47,011    2.250%  $9,231    19.6%
    Income tax expense  (14,305)   (0.453%)   (9,541)   (0.457%)  $4,764    49.9%
    Net income  41,937    1.329%   37,470    1.793%  $4,467    11.9%
    Net income attributable to noncontrolling interest  103    0.003%   134    0.006%  $(31)   (23.1%)
    Net income attributable to the Company $41,834    1.326%  $37,336    1.787%  $4,498    12.0%
                            
    Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:                     
                            
    Per Share Data:                       
    Basic $1.80       $1.62       $0.18    11.1%
    Diluted $1.71       $1.52       $0.19    12.5%

    Overview of Results of Operations for the Three Months Ended June 30, 2023 and March 31, 2023

    Consolidated Results of Operations

    The operating results for the three months ended June 30, 2023 and March 31, 2023 were as follows (in thousands, except per share data):

      Three Months Ended 
      June 30, 2023  March 31, 2023  Change 
      $  % of
    revenue    		  $  % of
    revenue    		  $  % 
    Revenues $3,155,201   100.000% $2,317,150   100.000% $838,051   36.2%
    Gross profit  78,610   2.491%  75,498   3.258% $3,112   4.1%
    Selling, general, and administrative expenses  (22,844)  (0.724%)  (23,841)  (1.029%) $(997)  (4.2%)
    Depreciation and amortization expense  (2,741)  (0.087%)  (3,340)  (0.144%) $(599)  (17.9%)
    Interest income  6,064   0.192%  6,087   0.263% $(23)  (0.4%)
    Interest expense  (8,925)  (0.283%)  (9,237)  (0.399%) $(312)  (3.4%)
    Earnings (losses) from equity method investments  5,300   0.168%  (70)  (0.003%) $5,370   7671.4%
    Other income, net  662   0.021%  641   0.028% $21   3.3%
    Unrealized gains on foreign exchange  116   0.004%  35   0.002% $81   231.4%
    Net income before provision for income taxes  56,242   1.783%  45,773   1.975% $10,469   22.9%
    Income tax expense  (14,305)  (0.453%)  (9,775)  (0.422%) $4,530   46.3%
    Net income  41,937   1.329%  35,998   1.554% $5,939   16.5%
    Net income attributable to noncontrolling interest  103   0.003%  78   0.003% $25   32.1%
    Net income attributable to the Company $41,834   1.326% $35,920   1.550% $5,914   16.5%
    Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:                  
    Per Share Data:                  
    Basic $1.80     $1.53     $0.27   17.6%
    Diluted $1.71     $1.46     $0.25   17.1%

    Overview of Results of Operations for the Fiscal Years Ended June 30, 2023 and 2022

    Consolidated Results of Operations

    The operating results for the fiscal years ended June 30, 2023 and 2022 were as follows (in thousands, except per share data):

    Year Ended June 30, 2023   2022   Change 
      $   % of revenue   $   % of revenue   $   % 
    Revenues $9,322,407    100.000%  $8,159,254    100.000%  $1,163,153    14.3%
    Gross profit  294,669    3.161%   261,765    3.208%  $32,904    12.6%
    Selling, general, and administrative expenses  (85,282)   (0.915%)   (76,618)   (0.939%)  $8,664    11.3%
    Depreciation and amortization expense  (12,525)   (0.134%)   (27,300)   (0.335%)  $(14,775)   (54.1%)
    Interest income  22,231    0.238%   21,800    0.267%  $431    2.0%
    Interest expense  (31,528)   (0.338%)   (21,992)   (0.270%)  $9,536    43.4%
    Earnings from equity method investments  12,576    0.135%   6,907    0.085%  $5,669    82.1%
    Other income, net  2,663    0.029%   1,953    0.024%  $710    36.4%
    Unrealized gains (losses) on foreign exchange  366    0.004%   (98)   (0.001%)  $464    473.5%
    Net income before provision for income taxes  203,170    2.179%   166,417    2.040%  $36,753    22.1%
    Income tax expense  (46,401)   (0.498%)   (33,338)   (0.409%)  $13,063    39.2%
    Net income  156,769    1.682%   133,079    1.631%  $23,690    17.8%
    Net income attributable to noncontrolling interest  409    0.004%   543    0.007%  $(134)   (24.7%)
    Net income attributable to the Company $156,360    1.677%  $132,536    1.624%  $23,824    18.0%
                            
    Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:                     
                            
    Per Share Data:                       
    Basic $6.68       $5.81       $0.87    15.0%
    Diluted $6.34       $5.45       $0.89    16.3%

    Reconciliation of U.S. GAAP to Non-GAAP Measures for the Three Months Ended June 30, 2023 and 2022

    A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the three months ended June 30, 2023 and 2022 follows (in thousands):

    Three Months Ended June 30, 2023  2022   Change 
      $  $   $  % 
    Net income before provision for income taxes $56,242  $47,011   $9,231   19.6%
    Adjustments:             
    Acquisition costs  101   394   $(293)  (74.4%)
    Amortization of acquired intangibles  2,150   2,736   $(586)  (21.4%)
    Depreciation expense  591   487   $104   21.4%
    Adjusted net income before provision for income taxes (non-GAAP) $59,084  $50,628   $8,456   16.7%

    A reconciliation of net income to EBITDA, and operating cash flows to EBITDA for the three months ended June 30, 2023 and 2022 follows (in thousands):

    Three Months Ended June 30, 2023  2022   Change 
      $  $   $  % 
    Net income $41,937  $37,470   $4,467   11.9%
    Adjustments:             
    Interest income  (6,064)  (5,675)  $389   6.9%
    Interest expense  8,925   5,695   $3,230   56.7%
    Amortization of acquired intangibles  2,150   2,736   $(586)  (21.4%)
    Depreciation expense  591   487   $104   21.4%
    Income tax expense  14,305   9,541   $4,764   49.9%
       19,907   12,784   $7,123   55.7%
                  
    Earnings before interest, taxes, depreciation, and amortization (non-GAAP) $61,844  $50,254   $11,590   23.1%
                  
    Reconciliation of Operating Cash Flows to EBITDA:             
    Net cash used in operating activities $(73,572) $(13,464)  $60,108   446.4%
    Changes in operating working capital  116,110   54,954   $61,156   111.3%
    Interest expense  8,925   5,695   $3,230   56.7%
    Interest income  (6,064)  (5,675)  $389   6.9%
    Income tax expense  14,305   9,541   $4,764   49.9%
    Dividends and distributions received from equity method investees  (427)  (1,678)  $(1,251)  (74.6%)
    Earnings from equity method investments  5,300   2,590   $2,710   104.6%
    Share-based compensation  (569)  (512)  $57   11.1%
    Deferred income taxes  (1,836)  (457)  $1,379   301.8%
    Amortization of loan cost  (485)  (562)  $(77)  (13.7%)
    Other  157   (178)  $335   188.2%
    Earnings before interest, taxes, depreciation, and amortization (non-GAAP) $61,844  $50,254   $11,590   23.1%
                  

    Reconciliation of U.S. GAAP to Non-GAAP Measures for the Three Months Ended June 30, 2023 and March 31, 2023

    A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the three months ended June 30, 2023 and March 31, 2023 follows (in thousands):

      Three Months Ended        
      June 30, 2023  March 31, 2023   Change 
      $  $   $  % 
    Net income before provision for income taxes $56,242   45,773   $10,469   22.9%
    Adjustments:             
    Acquisition costs  101   38   $63   165.8%
    Amortization of acquired intangibles  2,150   2,719   $(569)  (20.9%)
    Depreciation expense  591   621   $(30)  (4.8%)
    Adjusted net income before provision for income taxes (non-GAAP) $59,084  $49,151   $9,933   20.2%

    A reconciliation of net income to EBITDA, and operating cash flows to EBITDA for the three months ended June 30, 2023 and March 31, 2023 follows (in thousands):

      June 30, 2023  March 31, 2023   Change 
      $  $   $  % 
    Net income $41,937  $35,998   $5,939   16.5%
    Adjustments:             
    Interest income  (6,064)  (6,087)  $(23)  (0.4%)
    Interest expense  8,925   9,237   $(312)  (3.4%)
    Amortization of acquired intangibles  2,150   2,719   $(569)  (20.9%)
    Depreciation expense  591   621   $(30)  (4.8%)
    Income tax expense  14,305   9,775   $4,530   46.3%
       19,907   16,265   $3,642   22.4%
                  
    Earnings before interest, taxes, depreciation, and amortization (non-GAAP) $61,844  $52,263   $9,581   18.3%
                  
    Reconciliation of Operating Cash Flows to EBITDA:             
    Net cash (used in) provided by operating activities $(73,572) $91,767   $(165,339)  (180.2%)
    Changes in operating working capital  116,110   (52,003)  $168,113   323.3%
    Interest expense  8,925   9,237   $(312)  (3.4%)
    Interest income  (6,064)  (6,087)  $(23)  (0.4%)
    Income tax expense  14,305   9,775   $4,530   46.3%
    Dividends received from equity method investees  (427)  —   $(427)  —%
    Earnings (losses) from equity method investments  5,300   (70)  $5,370   7671.4%
    Share-based compensation  (569)  (538)  $31   5.8%
    Deferred income taxes  (1,836)  666   $(2,502)  (375.7%)
    Amortization of loan cost  (485)  (488)  $(3)  (0.6%)
    Other  157   4   $153   3825.0%
    Earnings before interest, taxes, depreciation, and amortization (non-GAAP) $61,844  $52,263   $9,581   18.3%

    Reconciliation of U.S. GAAP to Non-GAAP Measures for the Fiscal Years Ended June 30, 2023 and 2022

    A reconciliation of net income before provision for income taxes to adjusted net income before provision for income taxes for the fiscal years ended June 30, 2023 and 2022 follows (in thousands):

    Year Ended June 30, 2023  2022   Change 
      $  $   $  % 
    Net income before provision for income taxes $203,170  $166,417   $36,753   22.1%
    Adjustments:             
    Acquisition costs  285   1,283   $(998)  (77.8%)
    Amortization of acquired intangibles  10,343   25,668   $(15,325)  (59.7%)
    Depreciation expense  2,182   1,632   $550   33.7%
    Adjusted net income before provision for income taxes (non-GAAP) $215,980  $195,000   $20,980   10.8%

    A reconciliation of net income to EBITDA, and operating cash flows to EBITDA for the fiscal years ended June 30, 2023 and 2022 follows (in thousands):

    Year Ended June 30, 2023   2022  Change 
      $   $  $   % 
    Net income $156,769   $133,079  $23,690    17.8%
    Adjustments:              
    Interest income  (22,231)   (21,800) $431    2.0%
    Interest expense  31,528    21,992  $9,536    43.4%
    Amortization of acquired intangibles  10,343    25,668  $(15,325)   (59.7%)
    Depreciation expense  2,182    1,632  $550    33.7%
    Income tax expense  46,401    33,338  $13,063    39.2%
       68,223    60,830  $7,393    12.2%
                   
    Earnings before interest, taxes, depreciation, and amortization (non-GAAP) $224,992   $193,909  $31,083    16.0%
                   
    Reconciliation of Operating Cash Flows to EBITDA:              
    Net cash used in operating activities $(30,323)  $(89,166) $(58,843)   (66.0%)
    Changes in operating working capital  193,738    245,216  $(51,478)   (21.0%)
    Interest expense  31,528    21,992  $9,536    43.4%
    Interest income  (22,231)   (21,800) $431    2.0%
    Income tax expense  46,401    33,338  $13,063    39.2%
    Dividends and distributions received from equity method investees  (978)   (1,678) $(700)   (41.7%)
    Earnings from equity method investments  12,576    6,907  $5,669    82.1%
    Share-based compensation  (2,176)   (2,140) $36    1.7%
    Deferred income taxes  (1,585)   4,106  $(5,691)   (138.6%)
    Amortization of loan cost  (2,113)   (2,651) $(538)   (20.3%)
    Other  155    (215) $370    172.1%
    Earnings before interest, taxes, depreciation, and amortization (non-GAAP) $224,992   $193,909  $31,083    16.0%
                   

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