A-Mark Precious Metals - Earnings Call - Q3 2019
May 9, 2019
Transcript
Speaker 0
Good afternoon, and welcome to the A Precious Metals Conference Call for Fiscal Third Quarter twenty nineteen Ended March 3139. My name is Chantel, and I will be your operator this afternoon. Before this call, A Mark issued its results for the fiscal third quarter twenty nineteen in a press release, which was 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 bottom of the homepage. Joining us for today's call are A Mark's CEO, Greg Roberts President, Thor Gerdrum and CFO, Kerry Dickson.
Following their remarks, we will open the call to your questions. Then before we conclude the call, I'll provide the results. I and will be made available for replay via a link available in the Investor Relations section of A website. Now I would like to turn the call over to A Mark's CEO, Mr. Greg.
Go ahead, please.
Speaker 1
Thanks, Chantal, and good afternoon, everyone. Thank you for joining our third quarter earnings call. It was a busy and productive quarter for A Mark. From a macro standpoint, as expected, Q3 was another period of modest volatility in the precious metals market. We saw gold spot prices rise to a high of $13.45 dollars per ounce, which is the highest level in about nine months before closing at just under $1,300 per ounce at quarter end.
On the other hand, the spot price of silver topped $16 per ounce for the time in more than six months, but closed down for the quarter at $15.13 As you follow our company and evaluate the broader precious metals market, it's important to keep in mind that A Mark hedges all of its positions. Volatility has a positive effect on our business as we benefit from the increased levels of activity and ounces sold, which allow us to widen our premium spreads. As I've talked about on prior calls, we strategically structured our business to capitalize on market volatility and demand for physical metals, while continuing to systematically build and scale our business for the long term. The third quarter was no different. During Q3, we were able to leverage our diversified platform and long standing customer relationships.
Our success operationally in the third quarter is evidenced by the improvement of certain key financial metrics, most notably gross profit, net income and silver ounces sold. While it's encouraging to see the sequential improvement in our numbers, it's perhaps more telling to look at the improving trend line on our business over the nine months of the fiscal year, where we've seen solid increases in nearly all of our key financial metrics. This not only reflects the improved market conditions we experienced in Q2 and Q3, but also the benefits of our business model. This model is characterized by multiple income streams that streamline our financial profile and provide predictability over the long term. Before I talk more about our platform business segments and growth opportunities, I will turn the podium over to our CFO, Kerry Dickson, who will walk you through our financial performance for fiscal Q3 and the first nine months of twenty nineteen.
Kerry, take it away.
Speaker 2
Thank you, Greg, and good afternoon, everyone. Turning to our financial results for the fiscal third quarter and the nine months ended March 3139. Our revenues for fiscal Q3 twenty nineteen decreased 36% to $1,270,000,000 from $1,990,000,000 in the same year ago quarter. For the nine months of the year, our revenues decreased 33% to $3,930,000,000 from $5,840,000,000 in the same period last year. The decrease for both the fiscal third quarter and the first nine months of twenty nineteen were mainly due to lower forward sales and lower gold and silver prices, which were offset by an increase in the total amount of silver ounces sold in the quarter, and gold and silver ounces sold in the nine months.
Gross profit for the fiscal third quarter of twenty nineteen increased 17% to $8,700,000 or 0.69% of revenue from $7,400,000 or 0.37 percent of revenue in Q3 of last year. For the nine month period, our gross profit increased 8% to 25,500,000.0 or 0.65% of revenue from $23,600,000 or 0.4% of revenue in the same year ago period. The increase in gross profit for both the third quarter and the first nine months of twenty nineteen compared to the prior periods were primarily related to improved gross profits for the Wholesale Trading and Ancillary segment and the Direct Sales segment. Turning to our expenses. Selling, general and administrative expenses for the fiscal third quarter of twenty nineteen decreased 12% to $8,300,000 from $9,400,000 in Q3 of last year.
The decrease was primarily due to lower operating expenses incurred by the Direct Sales segment of $1,400,000 which were partially offset by increased overall compensation costs of 500,000.0 For the first nine months of twenty nineteen, SG and A decreased 6% to $24,100,000 from $25,700,000 in the same year ago period. The decrease was primarily due to lower operating expenses incurred by the direct sales segment of 2,000,000, lower investigatory acquisition costs of 700,000.0, and lower legal costs of 300,000.0, which were partially offset by increased overall compensation costs of 1,400,000.0. Interest income. For the first fiscal third quarter of twenty nineteen, our interest income increased 18% to 4,800,000.0 from 4,100,000.0 in the same year ago quarter. For the nine month period ended March 3138, our interest income increased 33% to $14,000,000 from $10,500,000 in the same year ago period.
The increase in interest income in the third quarter of twenty nineteen was driven primarily by an increase in interest income from the Secured Lending segment of $200,000 and an increase in other finance product income of 400,000.0 The increase in interest income during the nine month period was driven primarily by increase in interest income from the secured lending segment of 700,000.0 and an increase in other finance product income of 2,100,000.0. Interest expense for the fiscal Q3 twenty nineteen increased 16% to 4,200,000.0 from 3,600,000.0 in the same year ago quarter. The increase was primarily due to the recently issued notes payable related to the Secured Lending segment as well as an increase in liability on borrowed metals. These increases were partially offset by reductions of interest expense from product financing arrangements and the repayment of the Goldline credit facility. For the nine months, interest expense increased 28% to 12,400,000 from $9,700,000 in the same year ago period.
The increase is primarily due to the recently issued notes payable in our Secured Lending segment and an increase in liability on borrowed metals, which was partially offset by a reduction in interest expense related to product financing arrangements and the repayment of the Goldline credit facility. In comparison to the same year ago period, interest expense increased $2,800,000 related to the recently issued notes payable and $800,000 related to the liability on borrowed metals. This was partially offset by a decrease of $400,000 related to product financing arrangements and $200,000 related to the repayment of the Goldline credit facility. Net income for the fiscal third quarter of twenty nineteen totaled 1,000,000 or $0.14 per diluted share as compared to a net loss of 600,000.0 or $09 per diluted share in the same year ago quarter. For the nine month period, our net income totaled $3,000,000 or $0.43 per diluted share as compared to a net loss of $400,000 or $05 per diluted share in the same year ago period.
On a reportable segment basis for the fiscal third quarter of twenty nineteen, our direct sales segment had a $500,000 pre tax loss, our secured lending segment had a pre tax profit of 500,000.0 while our Wholesale Trading and Ancillary Services segment had a $1,300,000 pre tax profit. For the nine month period, our Direct Sales segment had a $2,600,000 pre tax loss. Our secured lending segment had a pre tax profit of 1,600,000.0, while our wholesale trading and ancillary services segment had a 5,200,000.0 pre tax profit. Shifting gears to our balance sheet. At quarter end, we had 4,700,000.0 of cash compared to 6,300,000.0 at the end of fiscal eighteen.
Our tangible net worth at the end of fiscal Q3 totaled $58,100,000 which compares to $53,400,000 at the end of fiscal twenty eighteen. Also during the quarter, we renewed our existing $260,000,000 credit facility, which consists of a 200,000,000 revolving credit facility with a 50,000,000 accordion feature. The renewal became effective on March 29 and matures on 03/27/2020. The renewal of our credit facility reflects the continued support of our growth strategy by our lending partners and provides us with enough liquidity to capitalize on attractive trading opportunities. With this $260,000,000 credit facility dedicated to our Wholesale Trading segment, along with 100,000,000 asset backed securitization for our Secured Lending segment, we have impactful and cost effective financing vehicles in place to more aggressively expand both areas of our business to new levels.
That completes my summary. Now I will turn the call over to Thor, who will provide an update on our key performance metrics. Thor?
Speaker 3
Thank you, Carey. Turning to our key operational metrics for the fiscal third quarter of twenty nineteen. We sold 474,000 ounces of gold during the quarter, which is up 8% from the prior quarter, but down 23% from fiscal Q3 of last year. For the nine months of the year, we sold 1,400,000 ounces, which is up 9% from 1,300,000 in the comparable prior year period. Turning to silver, we sold 16,800,000 ounces, which is down 16% from the prior quarter, but up 47% from Q3 of last year.
For the nine month period, silver ounces sold increased 45% to 55,100,000 ounces from 37,900,000 in the comparable prior year period. Looking at our key our key metric, wholesale trading ticket volume decreased 6% to 30,956 tickets from the prior quarter and increased 7% from Q3 of last year. The key metric we evaluate is inventory turn, defined as the cost of sales during the period divided by the average inventory during the period. In the third quarter, our inventory turn ratio was 4.6%, which is up 18% from 3.9% in the prior quarter and down 4% from 4.8% in Q3 of last year. And finally, the number of secured loans at the end of the quarter totaled 2,568, which was up 33% from the prior quarter and down 18% from the comparable prior year period.
This decrease was due to lower metals prices in the first quarter of fiscal twenty nineteen, which lowered the customer's collateral value and led to loan liquidations. As of March 3139, the dollar value of our CFC loan portfolio totaled $111,200,000 which was up 6.2% from the prior quarter and up 1.6% year over year. That concludes my prepared remarks. I will now turn it back over to Greg to talk about the progress we've been making on our key operational initiatives. Greg?
Speaker 1
Thanks, Thor. We've seen some solid improvement in our KPIs for the nine months of this fiscal year. If we step back and take a look at our business more broadly, it's clear we're taking advantage of the operating momentum we've established as well as capitalizing on our expansive platform of offerings, which we believe is the most robust in our industry. We are continuing to plan and judiciously invest in our business as well as strategic growth areas to further our competitive position and grow our business. This means further scaling of our business both operationally and financially with expanded new offerings and increasing the predictability and profitability of our model.
At the center of A Mark's ecosystem is A Mark Global Logistics. For those newer to our company, AM Global Logistics is our full service 17,000 square foot facility in Las Vegas that provides end to end logistics services to e commerce leaders as well as IRA storage and precious metal and numismatic storage solutions to a growing customer base. What's attractive about this business is the inherent cross sell opportunities it provides our broader platform. As I've communicated on previous calls, AMG is actively pursuing initiatives to increase our gross profit and service offerings. Leading these initiatives is our new VP of Logistics, Chris Hart, who has done a great job leveraging data to improve our processes and efficiencies at the facility.
Building from the successes of world class online retailers, we recently launched a program to streamline our customer deposit and returns process. While it's still in its early days, the new program has expedited the overall process, improved the customer experience and product quality as well as reduced our shipping and packaging costs. Moving on to our secure lending segment, notably Collateral Finance Corp or CFC serves a great customer generation tool for new business. We continue to see this segment contribute to the bottom line profits of the entire organization. During fiscal Q3, we grew our loan book by 33% sequentially to 2,568 loans at quarter end.
Steve Reiner and his team are working diligently to introduce new and innovative products such as our online portal, which has been very well received by the market and opened new doors to customers and partnerships. A key theme at A Mark is technology. As we announced last quarter, we appointed Armik Zakian to the position of Chief Information and Digital Transformation Officer. Serving in senior technology roles at global enterprises like AT and T, DIRECTV and Transamerica, Amik has brought tremendous experience and insight to our organization. Her multiyear mandate is to dramatically enhance A Mark's business value through technology and data.
Armik is actively evaluating the application of impactful technologies across our platform that will quantifiably expand our global reach, operational efficiency and cross selling opportunities. While it's certainly a tall order to transform what many consider an old world business into a technology driven business, Armeek is undoubtedly capable of achieving the task. Along that line, in our direct sales segment, we are implementing initiatives to leverage technology to further enhance the customer experience more effectively and more effectively acquire new customers, improve efficiencies and drive profitable revenue growth. There are several exciting developments we're working on and I look forward to sharing more about them in the quarters ahead. Meanwhile, thanks to Thor Gerdrum's efforts, the financial performance of our direct sales segment continues to improve.
We saw improvement in the segment's P and L in Q3 compared to the same year ago quarter, highlighted by improved gross profit, substantially reduced selling, general and administrative expenses and continued trajectory towards profitability. SilverTowne Mint, which is part of our Wholesale Trading and Ancillary Services segment, continued to perform well in Q3. A Mark's vertically integrated structure and our minting capabilities through Silvertowne Mint provide us a key and sustainable competitive advantage, enabling us to meet surges in demand that we experienced in Q2. The capital investments we've made in the mint over the last nine months continue to improve production efficiency. In fact, we recently acquired new die production technology and equipment, which we house in a facility in Nevada.
In addition, we recently retained two exceptional designers and engineers to run the operations. We're grateful they're now part of the A Mark team. With this asset purchase and related new hires, Silvertowne Mint has substantially enhanced the quality of its production capabilities, allowing it to capitalize on broader market offerings in the marketplace. Overall, this serves as another example of how we are continuing to improve and enhance our capabilities across the organization. Looking ahead, we remain optimistic about our long term prospects and believe the macro environment is aligning favorably with our business strategy to drive organic growth and enhance our model.
In the near term, we will continue to systematically build our platform to capture market share while acting opportunistically to capitalize on attractive near term trading opportunities and strategically scale our business for long term success. Now with that, we're ready to open the call for your questions. Operator, please provide the appropriate instructions.
Speaker 0
Thank you. We'll now begin the question and answer session. If you're using speakerphone, please pick up your handset before pressing any keys. To withdraw your question, you may press star then 2. We will pause Your question comes from Sarkis Sebastian.
Go ahead please.
Speaker 4
Hey, good afternoon and thanks for taking my question here.
Speaker 1
Sure. Thanks for asking.
Speaker 4
off, I just wanted to, ask on the the granularities behind the gross profit trend. It looks like sequentially, silver ounces sold were a little bit lower. Just wanted to see if you can maybe give us some some levers on, you know, the profitability metrics for the business.
Speaker 1
Sure. I think the silver ounces sold, although they were down a little bit in this quarter, the actual premium we were able to charge for silver ounces was up. And that was due to some volatility in Q2 as well as some demand that carried over into Q3. But in particular, silver premiums per ounce on our SilverTowne product as well as our U. S.
Mint products, we were able to carry a slightly higher premium in Q3. And that's why the gross profit is up, but the actual ounces were down a little bit.
Speaker 4
Yeah. That's super helpful. Can you maybe talk about the premium trends you're seeing, both for the products from the US Mint, as well as, you know, currently kind of the SilverTowne premiums you're able to earn?
Speaker 1
Yes. I think in Q3, we were coming off of a very strong demand period in Q2, most of which happened December when we had some issues and some volatility in the equities markets. We were fortunate enough that some other producers of silver products that compete with SilverTown had some production lapses and that allowed us to increase our premiums a little bit. The U. S.
Mint also ran into some production issues as well as they ran out of silver products in the quarter for a period of time. And that translated into us being able to raise premiums across some of our other products. I would say that in the beginning, the say, forty five days of Q4, the premiums have come back down a little bit as the demand has subsided a little bit. We seem to be back into a fairly robust equities market the last six weeks, although the last few days are favorable to us. But the premiums have come back down a little bit as demand has decreased slightly over the last, say, to six weeks.
But we're still very happy. I would say, in general, our Silvertown premiums are up 0.2 to $30 an ounce over where they probably were a year ago. So we're very pleased and we have been able to increase our market share with SilverTowne products in the last two quarters. So I believe we've taken some market share and we've developed some new customers that are very receptive to the SilverTowne product.
Speaker 4
Thanks for that color. And I think if we kind of switch gears here to the direct sales segment, it seems like you had a $05,000,000 pretax loss, if I heard the comments correctly, and you're kind of on the pathway to achieve profitability. Can you maybe give us some color or updated thoughts around when you would think you would maybe breakeven on that segment of the business?
Speaker 1
Sure. We look at that business in a number of different ways. On a pure standalone segment basis, I would say we've made some great improvements in our OpEx. We had a fairly strong quarter top line as it relates to what Goldline was able to sell both ounces and we were very happy with the product mix. We look at Goldline a little more broadly in that when we look at it from a management perspective, we also factor in profits that we generate at Goldline from the trading desk on products that A Mark supplies Goldline, as well as storage and logistics profits, as well as CFC loan and interest income, which is growing at what we feel is a nice pace.
So depending on how we define breakeven or how we define profitability, we would say that Q3, which we're reporting on here, Goldline was we consider profitable if you factor in all the different revenue streams the company captures. As it relates to Goldline as a stand alone, I would say that we're still probably three to six months away from that stand alone profitability number. We did make some further reductions in OpEx last week at Goldline, and we're very happy with some further reductions that Thor was able to institute. And, you know, there were some associated severance costs with that, which will be captured in q four. But we're we really feel like we have our arms around this and that this is this is a quickly you know, in the last thirty to sixty days is is we're we're seeing some some real good numbers that we like.
Speaker 2
Next question?
Speaker 0
Thank you. Your next question comes from Chris Saki. Go ahead please.
Speaker 5
Hi, everyone. Just a question regarding, I guess, things as though silver ounces sold is has has grown more than the gold ounce sold. I wanted to hear your guys' thinking on that. Why has silver been more demanded than gold?
Speaker 1
That's that's a good question, but a difficult answer to pinpoint exactly why. It has a lot to do with the macro macroeconomic numbers and who's actually buying the product. Generally when our gold ounces rise and grow quicker than the silver ounces, it has to do with more institutional buying and more bigger buyers that buy gold where when silver ounces increase or decrease, it's generally more affected by the small retail buyers. So a high quantity of $1,000 silver buyers at the retail level will affect our silver ounces sold differently than a small number of multimillion dollar purchases from a bank or an institution. I think that it also has a little bit to do with our SilverTowne Mint production.
We are SilverTowne has product available or when A Mark has SilverTowne product available, but there's a shortage from other private mints or even sovereign mints, our silver ounces can go up. It can be the same amount of silver being purchased in the marketplace, but our sales will go up because we have product when other people don't. So that's about as much as I can say on specifics why you'll see that. But a lot of times it just depends on we're the cheapest in the marketplace and we have product, either it's silver or it's gold, and we get that market share. I do believe if we go back to Q2, we were fortunate enough to buy a very large position of 1 ounce gold coins from a sovereign mint.
And when we're looking quarter over quarter, that may have had played a part in our gold ounces sold being up last quarter and maybe down a little bit this quarter. But there's a number of factors that can affect those two metrics.
Speaker 5
Okay. Thanks. And then for the Goldline business, I guess you were just commenting on it would you see it profitable in three to six months. So my question is, I guess, when it becomes profitable, I mean, much is it going to contribute to the earnings per share?
Speaker 1
Well, I wish you could give you the answer to that. We are very optimistic about this platform and this distribution machine that Goldline is. I think we are very well positioned in a bull market in precious metals or a crisis situation macro that Goldline is going to outperform our other business platforms in the right environment. I hate to try to guess how much we're gonna make in that business because if you can't tell me exactly the dynamic that caused the environment to change or the dynamics, it's hard for me to say what exactly the bottom line number is going to be. I will say that Goldline has historically had months where it's sold 10,000,000 to $20,000,000 a month retail in precious metals.
I think we're at a position and and the breakeven point at that time may have been in the 8,000,000 to $10,000,000 range for sales. I will say that Goldline today is positioned to breakeven or make money at the 3,000,000 to $4,000,000 a month top line sales numbers. So I think we're very efficient right now and it doesn't take much if we get back to the numbers that Goldline has produced historically, the profits would be very favorable. Unless I kind of had a crystal ball and I could tell exactly what what the environment was, it's hard for me to to pinpoint exactly what their potential is. We we just believe the customer base is strong.
We believe the customer base is one of the best in the business. We're doing a great job right now at acquiring new customers and new business through our association with Glenn Beck. His leads that he's generating for Goldline are very, very high quality. We feel good about where Goldline is positioned today and in what has been for their model, a fairly negative environment with some headwinds.
Speaker 5
Okay. Thanks.
Speaker 1
Sure.
Speaker 0
Thank you. I will take the opportunity from everyone to register for Your next question comes from Mitch Almey. Go ahead, please.
Speaker 6
Good afternoon, Greg.
Speaker 2
Hello, Mitch.
Speaker 1
I'm doing great. How are you doing?
Speaker 6
Super, thank you. I just have one question. It has to do with the loan book. Are you at liberty and does it make sense to give us the absolute size of the loan book at quarter end? And if it does, would you be open to disclosing them on a quarterly basis going forward?
Speaker 2
The CFC loan book.
Speaker 1
Yeah. I think it's disclosed as secured loans on our balance sheet.
Speaker 6
Okay. On the CFC portion?
Speaker 2
So Even on the even on the the press release, you'll see it in the in the balance sheet.
Speaker 6
Yeah. But his point is Okay. So that's them. So
Speaker 1
the secured loans on the balance sheet and and in the release are specifically specifically CFC. So there is some other lending and some other loans on our balance sheet, but we the secured lending segment is CFC. And at quarter end, we were at $111,000,000 versus about $110,000,000 at 06/30/2018 in CFC. I will say that what we've talked about before and discussed on previous calls is when silver dipped in the, I would say, Q1 of this fiscal year, which was the July, August, September period, we had a big drop in silver. We lost about $20,000,000 in loans or maybe a little more, 27,000,000, I think it was, just due to margin calls.
So if you look what happened between June 3038 and March 3139, it looks like we're only up like $1,000,000 but we had a fairly significant drop off right when we were closing our ABS facility. And then we've been able to build that back up. And I think I can just say on this call that the book is up closer to $120,000,000 as of today, up from March 31. So we have, over the last few weeks, achieved, I think, two consecutive weeks of record number our overall book.
Speaker 6
I would also If I understand it correctly I oh, go ahead.
Speaker 1
Thor Thor had one thing to add.
Speaker 3
I was gonna add, miss, you know, people always ask us about our controls and the fact that we never had a loan loss in that period where we had over $20,000,000 in margin calls. All calls were met, and all liquidations were handled orderly with no loan losses. Our systems continue to perform very well in regard to managing the collateral and managing loan to value when we see market volatility.
Speaker 6
That's great. Thanks for adding that.
Speaker 1
I understand Did answer the question or could I is there something I missed?
Speaker 6
Absolutely. Yes. No, no, no. I'm just trying to calculate the net interest margin on your portfolio going And with the asset backed facility, the incremental amount that you can issue is in $50,000,000 increments, correct?
Speaker 1
We had some discussions on that this morning. I wouldn't lock into the idea of a $50,000,000 number. I think we could do 25,000,000 tomorrow if we needed to, but I think the larger the tranche to do a new one, the better pricing we're going to get. And so that's a consideration. I think the one thing that we talked about this morning, which I think Thor is working on with Carrie, is I think we're looking at potentially a warehouse facility that we would like to be able to to put loans into specifically while we're building up to to get to a a little bit larger next next,
Speaker 5
know,
Speaker 1
the the the b tranche or whatever it is. So I I think there's ways we can we can do this. I think that, you know, one of the real negative aspects was from a timing perspective, which we've now really worked through is that is that when we close the ABS, it was so important to us to get the one done and building this brand and being out in the marketplace with this security that we were probably a little bit short of the $100,000,000 when we closed the one. And we anticipated that we would need to put some inventory in the ABS, which is allowed for the documents. And what that did was any inventory we have in there is we're probably paying a slightly higher rate than we would normally.
The timing of the ABS closing was also coincided with what I just talked about, which was the period when silver prices dropped and we had some liquidations and some margin calls. So what you saw in Q2 and a little bit in Q1 was that we started the ABS instead of starting it with $100,000,000 with $10,000,000 in loans in reserve starting on the next tranche, we actually closed the ABS and started with maybe 60,000,000 or $70,000,000 in loans. And we had to augment the rest of it with inventory, which wasn't the best economic that wasn't the most desirable economic event in our Q2 and Q1. So what we want to try to do in the future is make sure we have a buildup of loans that we can move into the ABS and move them when the best opportunity is there for us. So whether that's $40,000,000 $30,000,000 $60,000,000 whatever the next tranche is, it's really important to us since we're fixing the interest rate for a period of five years, we want to make sure that we can strike wherever the best interest rate is with loans that are where we can fill 100% of the ABS with loans because that's the best outcome for us economically.
We're tweaking
Speaker 2
this a
Speaker 1
little bit. We're looking at it. We're also looking at a number of other ways for us to finance these loans at a cheaper rate. We're this is a as this grows, as the number grows and the loans become bigger and bigger, every 10 basis points or every 20 basis points on our cost of funds is very important. I hope that answers your question.
Speaker 6
It does. It also begs one more sort of associated question, which in the previous Q and A, you mentioned you had brought the breakeven at Goldline down to 3,000,000 to $4,000,000 in a
Speaker 1
good margin, you 10,000,000
Speaker 6
to $12,000,000 of revenue. In the same way that we've seen the size of your loan book move with the volatility in a much better market of, say, one with crisis and volatility, what would the rate at which you could grow that loan book be ideally?
Speaker 1
Well, that's interesting. That's another great question that we are very focused on. This Goldline thing, although it's been had certainly its bumps in the road and it's had some issues, we think we're really right sized with it right now. It has opened our eyes up to another, I guess what I would call loan originator for CFC and for the business we're talking about. And we've seen a great deal of acceptance on Goldline's ability to add to their ticket count or what their customer is willing to spend by adding on some leverage and being able to purchase more than they initially thought they could by using leverage.
Up until about three weeks ago, Goldline was specifically selling a silver product and it only creating leverage for customers that had existing metal that customers needed to send to Las Vegas, get checked in, and then they were able to do some add on purchasing and buy some more metal using the existing original metal as collateral. All of and and we got Goldline is up to about $13,000,000, I believe, as of now in loans originated. And so you're talking about maybe 2,000,000 a month there that they're able to do on small silver products, which generally the size of these loans are maybe 25,000 to $30,000 Within the last few weeks, we've introduced a new gold product that is now the exclusive gold product for CFC loans at Goldline. And we're anticipating that just the buyer of gold usually buys more than the buyer of silver. And we're also offering this as a product that if you're coming in as a new client and you're making your purchase, you can do that with CFC and this new gold product.
So I think we've seen some really good results. We're really curious as to we'll have the silver going at the same time, but now we're going to introduce a gold product that can be turned into a CFC loan. So I would say ask this question again next quarter and we might even have a little bit more information you know, help
Speaker 6
Thanks for
Speaker 1
the clarity. That's great. Clear this up. I'll hop up to guys. Thor Thor had a follow on.
Speaker 3
The other thing that we've done live with, and, again, we don't have much data on it yet, we we we officially launched a Goldline branded ecommerce site just this past Monday. So we we we're starting with a handful of products that are exclusively available from Goldline. So we're we're, you know, in combination with our our new technology group and, you know, really refocusing on technology transformation, we are offering a an ecommerce store to go after really those those smaller order sizes online to further supplement Goldline's revenue trajectory.
Speaker 6
Is that part of goldline.com or is that a separate It's
Speaker 1
a goldline.com. Goldline.com. Okay. And
Speaker 6
there is
Speaker 3
a shop online button on the top.
Speaker 1
Shop online button. So we and and that site is specifically you know, we've worked on it for seven months now, I think, and it's specifically geared towards smaller purchases. So I think that the way we have it set up is that if you want to purchase under $7,500 you can do it online and you can buy the Goldline exclusive products and there's a very limited amount of products available. But if you choose to spend $25,000 you'll then get connected or you'll get contacted by a live representative of Goldline, a salesperson. So it's actually we're using it as a lead generator.
And then it's a way to kind of sift through some of the smaller orders that maybe don't need the attention of a live broker. Then we'll if it's a bigger order, we'll give you that extra customer service or that extra tender loving care that a bigger customer might need. So it's we're pretty excited about both of these new additions to Goldline, the website and the CFC financing.
Speaker 6
Super. Well, again, thanks for the clarity. You've given me a lot of time. Thanks. Okay, great.
Speaker 0
Thank you. This concludes our question and answer session. I would now like to turn the call back to Mr. Roberts for closing remarks.
Speaker 1
Thank you, everyone, for joining our call today. Just to let everybody know, we plan on presenting at the B. Riley Conference on May 23 and the LD Micro Invitational in early June. If you don't see us at one of those events, we look forward to talking to you on our next fiscal year end call in September. As always, we appreciate your interest and continued support being our partners here at A Mark.
Thank you and goodbye for now.
Speaker 0
Before we conclude today's call, I would like to provide Aimark's safe harbor statement that includes important cautions regarding forward looking statements made during this call. During today's call, there were forward looking statements made regarding future events. Statements that relate to A Mark's future plans, objectives, expectations, performance, events and the likes are forward looking statements within the meaning of the Private Securities Litigation Reform Act of, sorry, of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties individually or in the aggregate could cause actual results 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 as planned greater than anticipated costs incurred to execute the strategy, changes in the current domestic and international political climate, increased competition for A Mark'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 general risks of doing business in the commodity markets and other business, economic, financial and governmental risks as described in the company's public filings with the Securities and Exchange Commission.
The words should, believe, estimate, expect, intend, anticipate, foresee, plan, and similar expressions and variations thereof identity sorry, identify certain of such forward looking statements, which speak only as of the dates on which they were made. Additionally, any statements related to future improvement, performance and estimates of revenues and earnings per share are forward looking statements. 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. Finally, I would like to remind everyone that a recording of today's call will be available for replay via a link in the Investors section of the company's website.
Thank you for joining us today for A Mark's fiscal third quarter of twenty nineteen earnings call. You may now disconnect.