A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q2 2024 Results Conference Call February 6, 2024 4:30 PM ET

Company Participants

Greg Roberts - Chief Executive Officer

Kathleen Simpson Taylor - Chief Financial Officer

Thor Gjerdrum - President

Conference Call Participants

Mike Baker - D.A. Davidson

Lucas Pipes - B. Riley Securities

Andrew Scutt - ROTH MKM

Greg Gibas - Northland Securities

Brandon Coffin - Praetorian Capital

Sy Jacobs - Jacobs Asset Management.

Operator

Good afternoon, and welcome to the A-Mark Precious Metals Conference Call for the Fiscal Second Quarter ended December 31, 2023. My name is Paul, and I will be your operator this afternoon.

Before this call, A-Mark issued its results for the fiscal second quarter 2024 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 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.

Greg Roberts

Thank you, Paul, and good afternoon, everyone. Thank you for joining our call today. Our second quarter results demonstrate the strength of our fully integrated platform to generate profitable results. We delivered $0.57 per diluted share and generated $25.1 million of non-GAAP EBITDA during the quarter, underscoring our ability to manage less favorable market conditions while still delivering solid results.

During the quarter, we successfully repaid our notes payable for $100 million on our asset-backed securitization and continued to enhance shareholder value by increasing our share repurchase program by buying back an additional 440,000 shares of our common stock for approximately $12 million. This morning, we announced that we entered into a non-binding letter of intent with AMS Holdings, a leading multichannel marketer of vintage and modern coins, which provided for three transactions.

The most significant of these transactions is our planned acquisition of LPM Group Limited, one of Asia's largest fabricated precious metals dealers. This strategic acquisition is an important step in growing A-Mark's international presence in Asia and reflects our commitment to expanding A-Mark's global reach. With access to A-Mark's inventory and resources, we expect that LPM will be able to secure larger purchase orders and will be able to provide their customers with a broader set of product offerings. We are hopeful that our proven wholesale and e-commerce expertise and our portfolio of products and ancillary services such as storage and fulfillment will assist LPM in its planned growth strategy.