A-Mark Precious Metals, Inc.

Good afternoon and welcome to AMARC's Precious Metals conference call for the fourth quarter and fiscal year ended June 30, 2022. My name is John and I will be your operator this afternoon. Before this call, AMARC issued its results for the fourth quarter and fiscal year 2022 in a press release, which is available in the investor relations section of the company's website at www.amarc.com. Find the link to the investor relations section at the top of the homepage. Joining us for today's call are AMARC's CEO, Greg Roberts, President, Thor Jerdrum, 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 will be made available for replay via a link available in the investor relations section of AMARC's website. Now, I would like to turn the call over to AMARC's CEO, Mr. Greg Roberts. Sir, please proceed.

Thank you, John, and good afternoon to everyone. Thank you again for joining our call today. We reported our fiscal fourth quarter and full fiscal year 2021 results this afternoon, which continue to demonstrate the strength of our fully integrated precious metals platform. For the full year, our revenues exceeded $8.1 billion, and gross profit and non-GAAP-adjusted net income grew 25% and 8% year-over-year, respectively, contributing to a return on equity of 27%. demonstrating the strong financial results our business model is capable of generating. Our direct-to-consumer or DTC segment contributed over half of our gross profit and pre-tax income during fiscal 2022. I'm very pleased with the progress AMARC has made integrating JM Bullion during the full year post-acquisition, as well as launching the CyberMetals platform. Over the past year, AMARC grew its DTC total customer base by 13% to 2 million customers and its active customer base by 270%, demonstrating our commitment to expanding the DTC business. Following the commercial launch of CyberMetals during Q4 of fiscal 22, we have continued to see interest from both existing JM customers as well as new customers unique to CyberMetals. leading to our assets under management of 3.7 million at June 30th, 22. Nearly 6,000 customers were added during the quarter. We are happy with the progress so far and have several key initiatives planned to continue to expand our marketing efforts and continue to grow the cyber metals business. Our minting business continues to generate impressive results. It is worth noting that fiscal 22 was our first year of 100% ownership in the Silvertown Mint, and combined with our strategic partner at the Sunshine Mint, we benefited greatly throughout the year from a steady source of product during what turned out to be industry-wide supply constraints. Silvertown produced an impressive 11.4 million ounces of silver during fiscal 22. Q4, which was more than the mint produced in any recent fiscal year. Additionally, weekly productions in the fiscal fourth quarter increased 35% year over year, allowing us to continue to provide a reliable source of supply to our wholesale customers as well as our DTC customers. Now, I'll turn it over to our CFO, Kathleen Simpson-Taylor, to walk you through our financials in more detail. Then our president, Thor Jerdam, will discuss our operating metrics. Afterwards, I will provide a further update on our business growth and strategy. Kathleen?

Thank you, Greg, and good afternoon, everyone. Our revenues for fiscal Q4 2022 decreased 4% to $2.1 billion from $2.2 billion in Q4 of last year. The decrease was attributable to a decrease in gold ounces sold and lower average selling prices of silver offset by an increase in silver ounces sold and forward sales and higher average selling prices of gold. The DTC segment contributed 23% and 30% of the consolidated revenue in fiscal Q4 2022 and Q4 of last year, respectively. Revenue contributed by JMB represented 21% of the consolidated revenues for Q4 of 2022 compared to 28% in Q4 of last year. For the full fiscal year, our revenues increased 7% to $8.2 billion from $7.6 billion last fiscal year. The increase was attributable to an increase in silver ounces sold higher average selling prices of gold and higher forward sales, offset by a decrease in gold ounces sold and lower average selling prices of silver. The DTC segment contributed 26% and 11% of the consolidated revenue in fiscal years 2022 and 2021, respectively. The increase in revenue from the DTC segment reflects the acquisition of JMB in March 2021 and the growth of the segment's customer base. Revenue contributed by JMB represented 24% of the consolidated revenues for fiscal year 2022 compared to 9% in the prior year. Gross profit for fiscal Q4 2022 decreased 22% to $67.8 million or 3.24% of revenue from $87.1 million or 4.0% of revenue in Q4 of last year. The decrease in gross profit was due to lower gross profits earned from the wholesale sales and ancillary services and DTC segments. Gross profit contributed by the DTC segment represented 57% of the consolidated gross profit in fiscal Q4 2022 compared to 50% in the same year-ago period. Gross profit contributed by JMB represented 46% of the consolidated gross profit in fiscal Q4 2022 compared to 43% in Q4 of last year. For the full fiscal year, gross profit increased 25% to $261.8 million or 3.21% of revenue from $210.2 million or 2.76% of revenue in the prior fiscal year. The increase in gross profit was due to higher gross profits earned from the DTC segment offset by lower gross profits earned from the wholesale sales and ancillary services segment. Gross profit contributed by the DTC segment represented 56% of the consolidated gross profit in fiscal 2022, compared to 34% in the prior fiscal year. JMB contributed 46% to the consolidated gross profit for fiscal year 2022, compared with 22% in the prior year, since JMB's results were included beginning only in March of the prior year after its acquisition. SG&A expenses for fiscal Q4 2022 increased 24% to $20.7 million from $16.7 million in Q4 of last year. The increase was primarily due to an increase of $2.2 million of expenses incurred by JMB, higher insurance costs of $1.7 million, and increased compensation expense, including performance-based accruals, of $1.0 million. This was partially offset by lower computer-related costs of $0.6 million. For the full fiscal year, SG&A expenses increased 60% to $76.6 million from $48 million in fiscal year 2021. The increase was primarily due to an increase of $21.6 million of expenses incurred by JMV, increased compensation expense, including performance-based accruals of $3.7 million, higher insurance costs of $2.6 million, and increased consulting and professional fees of $1.5 million. This was partially offset by lower computer-related costs of $0.6 million. Depreciation and amortization expense for fiscal Q4 2022 decreased 61%. to $3.2 million from $8.3 million in Q4 of last year. The decrease in depreciation and amortization expense was primarily due to a $5.1 million decrease in amortization of acquired intangibles related to JMB. For the full fiscal year, depreciation and amortization expense increased 153 percent to $27.3 million from $10.8 million in the prior year. The increase was primarily due to $16.4 million of higher amortization of acquired intangibles related to J&B. Interest income for fiscal Q4 2022 increased 8% to $5.7 million from $5.2 million in Q4 of last year. The aggregate increase in interest income was primarily due to higher interest income earned by our secured lending segment that was partially offset by lower other finance product income. For the full fiscal year, interest income increased 18% to $21.8 million from $18.5 million in fiscal 2021. The increase was primarily due to higher interest income earned by our secured lending segment and higher other finance product income. Interest expense for fiscal Q4 2022 increased 10% to $5.7 million from $5.2 million in Q4 of last fiscal year. The increase in interest expense was primarily driven by $0.6 million increase associated with our trading credit facility and notes payable, including amortization of debt issuance costs, and a $0.5 million increase related to product financing arrangements. This was offset by $0.6 million of lower interest costs from liabilities on borrowed metals. For the full fiscal year, interest expense increased 11% to $22 million from $19.9 million in fiscal 2021. The increase in interest expense was primarily driven by an increase of $1.3 million associated with our trading credit facility and notes payable, including amortization of debt issuance costs, $1.2 million related to product financing arrangements, $0.5 million of loan servicing fees, and this was offset by a decrease of $0.9 million associated with liabilities on borrowed metals. Earnings from equity method investments in Q4 2022 increased 57% to 2.6 million from 1.6 million in the same year-ago quarter. The increase reflects our higher percentage ownership in our equity method investments in comparison to the prior year. For the full fiscal year, earnings from equity method investments decreased 56% to 6.9 million from $15.5 million in fiscal 2021. The net decrease of $8.6 million includes an $11.7 million decrease related to JMV, a former equity method investment, which is now reported by the company as a wholly owned subsidiary, offset by increased earnings of $3.1 million from our other equity method investments. Net income attributable to the company for the fourth quarter of fiscal 2022 totaled $37.3 million or $1.52 per diluted share. This compares to net income attributable to the company of $51 million or $2.14 per diluted share in Q4 of last year. The prior year per share number has been adjusted for the effect of the two-for-one stock split in June 2022. Our diluted EPS for the fiscal fourth quarter of 2022 is based on the weighted average diluted shares outstanding of 24.5 million, compared with 23.8 million weighted average diluted shares outstanding during the fourth quarter of last year. This has also been adjusted for the effect of the two-for-one stock split that occurred in June 2022. Adjusted net income before provision for income taxes, a non-GAAP financial measure, which excludes free measurement gain, acquisition expenses, amortization, and depreciation for Q4 fiscal 2022, totaled $50.6 million. compared to $72.3 million in the same year-ago quarter. EBITDA, a non-GAAP liquidity measure for Q4 fiscal 2022, totaled $50.3 million compared to $72.3 million in Q4 fiscal 2021. For the full fiscal year, net income attributable to the company totaled $132.5 million or $5.45 per diluted share. This compares to net income attributable to the company of $159.6 million or $8.90 per diluted share in the prior year. Prior year net income attributable to the company included a one-time 26.3 million remeasurement gain on the company's pre-existing equity interest in JMB in connection with its acquisition. Excluding this remeasurement gain in fiscal year 2021, net income attributable to the company decreased 0.8 million compared to the prior fiscal year. It is important to note that our diluted EPS for fiscal 2022 is based on weighted average diluted shares outstanding of 24.3 million compared to 17.9 million weighted average diluted shares outstanding in the prior fiscal year. And that prior year number has been adjusted for the effect of the two-for-one stock split in June 2022. Adjusted net income before provision for income taxes a non-GAAP financial measure for the full fiscal year totals $195 million, an increase of $15.1 million compared to $179.9 million in the prior year. EBITDA, a non-GAAP liquidity measure for fiscal 2022, totals $193.9 million compared to $205 million in the prior fiscal year. Now turning to our balance sheet. At fiscal year-end, we had $37.8 million of cash compared to $101.4 million at the end of the prior year. Our fiscal year-end 2021 cash balances were high due to our significant planned precious metals purchases in the first few days of July 2021, specifically due in part to the U.S. Mint's release of a new bullion coin design on July 1st. Our tangible net worth at the end of the fiscal year was $321.6 million, up from $169.4 million at the end of the prior fiscal year. Finally, as we announced in our earnings release, AMARC's Board of Directors has declared a non-recurring special cash dividend of $1 per common share, which will be paid on September 26, 2022, to stockholders of record as of September 12, 2022. Additionally, our Board of Directors has adopted a regular quarterly cash dividend policy of 20 cents per common share or 80 cents per share on an annual basis. The initial quarterly cash dividend under the policy will be paid in October 2022. The declaration of regular cash dividends in the future is subject to the determination each quarter by the Board of Directors based on a number of factors, including the company's financial performance, available cash resources, cash requirements, and alternative uses of cash, and applicable bank covenants. That completes my financial summary. Now I will turn the call over to Thor, who will provide an update on our key operating metrics. Thor?