A-Mark Precious Metals Reports Fiscal First Quarter 2017 Results

SANTA MONICA, Calif., Nov. 07, 2016 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ:AMRK) , a full-service precious metals trading company and an official distributor for all the major sovereign mints, reported results for the fiscal first quarter ended September 30, 2016.

Fiscal Q1 2017 Highlights
  • Revenues decreased 10% to $1.81 billion from $2.01 billion for the three months ended September 30, 2015 and increased 4.1% from $1.74 billion for the three months ended June 30, 2016 
  • Gross profit decreased 44% to $8.1 million from $14.4 million for the three months ended September 30, 2015 and increased 6.6% from $7.6 million for the three months ended June 30, 2016
  • Net income decreased 65% to $2.0 million or $0.27 per diluted share from $5.6 million or $0.80 per diluted share for the three months ended September 30, 2015 and increased 83% from $1.1 million or $0.15 per diluted share for the three months ended June 30, 2016
  • Gold ounces sold decreased 41% to 530,000 ounces from 896,000 for the three months ended September 30, 2015 and decreased 25.5% from 711,000 for the three months ended June 30, 2016
  • Silver ounces sold decreased 46% to 21.8 million ounces from 40.5 million from the three months ended September 30, 2015 and decreased 15.6% from 25.8 million ounces for the three months ended June 30, 2016
  • Trading ticket volume decreased 24% to 22,031 tickets from 28,910 for the three months ended September 30, 2015 and increased 5.1% from 20,964 for the three months ended June 30, 2016
  • Number of secured loans increased 255% to 1,667 as of September 30, 2016 from 470 as of September 30, 2015 and increased 42.1% from 1,173 as of June 30, 2016

Fiscal Q1 2017 Financial ResultsRevenues decreased 10% to $1.81 billion from $2.01 billion in the same year-ago quarter. The decrease in revenue was primarily due to lower gold and silver ounces sold as compared to the same year-ago quarter as a result of the unusual market conditions in fiscal Q1 2016 in which commodities experienced unusually high volatility.  This decrease was partially offset by an increase in precious metal prices. 

Gross profit decreased 44% to $8.1 million (0.45% of revenue) from $14.4 million (0.72% of revenue) in the same year-ago quarter. The decline in gross profit margin was primarily due to lower premium spreads on the company's primary products, as well as lower ounces and lower total tickets compared to the same year-ago quarter. The tighter premium spreads and lower volumes as compared to the same year-ago quarter were due primarily to the unusual market conditions in fiscal Q1 2016 in which commodities experienced unusually high volatility resulting in a widening of trading spreads and higher demand.

If you liked this article you might like

Insider Trading Alert - AMRK, CERS And CWT Traded By Insiders

Insider Trading Alert - UFPT, AMRK And MENT Traded By Insiders

Insider Trading Alert - UDR, NAME And AMRK Traded By Insiders

Insider Trading Alert - MNRO, AMRK And LAD Traded By Insiders

Insider Trading Alert - AMRK, CALD And KFRC Traded By Insiders