A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q4 2023 Results Conference Call August 31, 2023 4:30 PM ET

Company Participants

Greg Roberts - Chief Executive Officer & Director

Thor Gjerdrum - President

Kathleen Simpson - Chief Financial Officer

Conference Call Participants

Thomas Forte - D.A. Davidson

Lucas Pipes - B. Riley

Greg Gibas - Northland Securities

David Bastian - Kingdom Capital Advisors

Operator

Good afternoon, and welcome to the A-Mark Precious Metals Conference Call for the Fourth Quarter and Fiscal Year ended June 30, 2023. My name is John, and I will be your operator this afternoon. Before this call, A-Mark issued its results for the fourth quarter and fiscal year 2023 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 home page.

Joining us for today's call are A-Mark's CEO, Greg Roberts; President, Thor Gjerdrum; and CFO, Kathleen Simpson-Taylor. 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 we will -- and will be made available for replay via 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.

Greg Roberts

Thank you, John, and good afternoon to everyone. Thank you for joining our call today. As we reported in our earnings release, fiscal 2023 marked a record year of strong financial and operational performance for A-Mark, further demonstrating the strength of A-Mark's industry-leading, fully integrated precious metals platform.

For the full fiscal year, we reported $156.4 million of net income and diluted EPS of $6.34 per share. Our full year gross profit grew 13% year-over-year, and we delivered record levels of EBITDA of $225 million and generated a 29% return on equity for the year. Our Direct-to-Consumer or DTC segment continues to contribute significantly to our overall financial performance, generating approximately 57% of our consolidated gross profit for the year.

New DTC customers grew by 46% year-over-year, highlighting the success of our strategic acquisitions and organic customer growth, including the acquisitions of BGASC and BullionMax, which further expanded our DTC customer base. During the year, we added minority interests in U.K.-based Atkinsons Bullion & Coin and Texas Precious Metals to our investment portfolios.