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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Spectrum Group International Inc (CE) | USOTC:SPGZ | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 21,500.00 | 0.00 | 01:00:00 |
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R
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
(State of Incorporation)
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22-2365834
(IRS Employer I.D. No.)
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
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Exhibits
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Exhibits 31.1
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Certification of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of 2002
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Exhibits 31.2
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Certification of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of 2002
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Exhibits 32.1
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Chief Executive Officer Certification Under Section 906 of the Sarbanes-Oxley Act of 2002
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Exhibits 32.2
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Chief Financial Officer Certification Under Section 906 of the Sarbanes-Oxley Act of 2002
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March 31,
2009 |
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June 30, 2008 (1)
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ASSETS
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(restated)
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|||||
Current assets:
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Cash and cash equivalents
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$
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17,830
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$
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35,860
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Restricted cash
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650
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—
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—
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Short-term investments and marketable securities
|
2,316
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—
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Receivables and secured loans, net — trading operations
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39,298
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25,874
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Accounts receivable and consignor advances, net — collectibles operations
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7,212
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7,014
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Litigation settlement receivable
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—
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5,975
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Inventory, net
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126,266
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130,653
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Deferred income taxes
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—
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189
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Prepaid expenses and other assets
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1,709
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4,355
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Total current assets
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195,281
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209,920
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Long-term inventory, net
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—
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297
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Property and equipment, net
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2,227
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1,767
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Real estate held for sale
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—
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1,640
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Goodwill
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6,525
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6,525
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Other purchased intangibles, net
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8,680
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8,673
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Other assets
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2,539
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108
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Income tax receivables
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1,162
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1,463
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Deferred tax assets
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753
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—
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Total assets
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$
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217,167
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$
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230,393
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable, customer deposits and consignor payables
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$
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27,080
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$
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29,570
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Liability on borrowed metals
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16,613
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18,789
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Accrued expenses, accrued compensation and other current liabilities
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22,766
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15,737
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Accrued litigation settlement
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6,555
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14,995
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Income taxes payable
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6,112
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2,232
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Line of credit
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48,900
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65,747
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Deferred tax liability
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1,821
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—
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Other current liabilities
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499
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454
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Total current liabilities
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130,346
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147,524
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Deferred and other long-term tax liabilities
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545
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1,704
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Total liabilities
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130,891
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149,228
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Minority interests
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9,536
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6,315
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Commitments, contingencies and subsequent events (notes 11 and 17)
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Stockholders’ equity:
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Preferred stock, $.01 par value, authorized 10,000 shares; issued and outstanding: none
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—
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—
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Common stock, $.01 par value, authorized 40,000 shares; issued and outstanding: 28,297 and 28,209 at December 31, 2008 and June 30, 2008, respectively
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283
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282
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Additional paid-in capital
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232,978
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232,123
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Accumulated other comprehensive income
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5,856
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13,141
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Accumulated deficit
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(162,377
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)
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(170,696
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)
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Total stockholders’ equity
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76,740
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74,850
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Total liabilities and stockholders’ equity
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$
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217,167
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$
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230,393
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Three Months Ended
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Nine Months Ended
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||||||||||||
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March 31, 2009
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March 31, 2008
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March 31, 2009
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March 31, 2008
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Revenues:
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Sales of precious metals
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$
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1,041,334
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$
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849,003
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$
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3,020,523
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$
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1,975,246
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Collectibles revenues:
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Sales of inventory
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33,250
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39,981
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97,709
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108,042
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Auction commissions earned
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3,901
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6,927
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12,994
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16,433
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Total revenue
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1,078,485
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895,911
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3,131,226
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2,099,721
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Cost of sales:
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Cost of precious metals sold
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1,027,211
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844,361
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2,983,631
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1,964,482
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Cost of collectibles sold
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31,420
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35,249
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91,905
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92,487
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Total cost of sales
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1,058,631
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879,610
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3,075,536
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2,056,969
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Gross profit
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19,854
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16,301
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55,690
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42,752
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Operating expenses:
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General and administrative
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8,356
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8,177
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21,710
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23,627
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Salaries and wages
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9,766
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6,124
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25,827
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15,491
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Depreciation and amortization
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460
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511
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1,351
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1,380
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||||
Litigation settlement
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—
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—
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—
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9,020
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|
||||
Total operating expenses
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18,582
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|
14,812
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|
48,888
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49,518
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||||
Operating income (loss)
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1,272
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|
1,489
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6,802
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(6,766
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)
|
||||
Interest and other income (expense):
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||||||||
Interest income
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1,543
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|
|
1,129
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3,862
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|
3,172
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|
||||
Interest expense
|
(432
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)
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(973
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)
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(1,892
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)
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(2,913
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)
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||||
Other income (expense), net
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(375
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)
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|
562
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|
359
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|
2,097
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|
||||
Unrealized gain (loss) on foreign currency
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1,769
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(813
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)
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4,740
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(2,439
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)
|
||||
Total interest, other income (expense), foreign currency gain (loss)
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2,505
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(95
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)
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7,069
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(83
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)
|
||||
Income (loss) before provision for income taxes and minority interests
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3,777
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|
1,394
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13,871
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(6,849
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)
|
||||
Provision for income taxes (income tax benefit)
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520
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|
|
339
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|
|
2,331
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|
|
660
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|
||||
Minority interests
|
1,165
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|
|
198
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|
|
3,221
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|
|
369
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|
||||
Net income (loss)
|
$
|
2,092
|
|
|
$
|
857
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|
|
$
|
8,319
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$
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(7,878
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)
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|
||||||||
Basic and diluted income (loss) per share:
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||||||||
Basic
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$
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0.07
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$
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0.03
|
|
|
$
|
0.27
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|
|
$
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(0.28
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)
|
Diluted
|
$
|
0.07
|
|
|
$
|
0.03
|
|
|
$
|
0.26
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|
$
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(0.28
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)
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|
||||||||
Weighted average shares outstanding
|
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|
||||||||
Basic
|
31,616
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|
|
28,136
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|
|
30,748
|
|
|
28,136
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|
||||
Diluted
|
32,089
|
|
|
28,380
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|
|
31,448
|
|
|
28,136
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|
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Common Stock in Shares
|
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Common Stock in ($)
|
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Additional Paid-in Capital
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Accumulated Other Comprehensive Income
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Accumulated Deficit
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Total Stockholders’ Equity
|
|
Comprehensive Income (Loss)
|
|||||||||||||
Balance, June 30, 2008
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28,209
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|
|
$
|
282
|
|
|
$
|
232,123
|
|
|
$
|
13,141
|
|
|
$
|
(169,322
|
)
|
|
$
|
76,224
|
|
|
|
||
Restatement adjustments (note 1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
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(1,374
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)
|
|
(1,374
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)
|
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|
|||||||
Balance, June 30, 2008 (restated)
|
28,209
|
|
|
282
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|
|
232,123
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|
|
13,141
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|
|
(170,696
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)
|
|
74,850
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|
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|
|||||||
Net income
|
—
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|
|
—
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|
|
—
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|
|
—
|
|
|
8,319
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|
|
8,319
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|
|
$
|
8,319
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|
|||||
Unrealized gain on marketable securities, net of tax
|
—
|
|
|
—
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|
|
—
|
|
|
94
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|
|
—
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|
94
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|
|
94
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|
||||||
Change in cumulative foreign currency translation adjustment
|
—
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|
|
—
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|
|
—
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|
|
(7,379
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)
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|
—
|
|
|
(7,379
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)
|
|
(7,379
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)
|
||||||
Comprehensive income
|
—
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|
|
—
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|
|
—
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|
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—
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|
|
—
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—
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$
|
1,034
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|
|||||
Issuance of stock for class action settlement
|
772
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|
8
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|
|
1,437
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|
—
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—
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|
|
1,445
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|||||||
Repurchase of stock issued for class action settlement
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(772
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)
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|
(8
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)
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|
(1,190
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)
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|
—
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|
|
—
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|
|
(1,198
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)
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|
|||||||
Taxes paid in exchange for cancellation of restricted shares
|
—
|
|
|
—
|
|
|
(98
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)
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|
—
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|
|
—
|
|
|
(98
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)
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|
|||||||
Share based compensation
|
—
|
|
|
—
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|
|
707
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|
|
—
|
|
|
—
|
|
|
707
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|
|
|
|||||||
Issuance of common stock for restricted stock grants
|
88
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|
|
1
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(1
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)
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—
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—
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|
|
—
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|
|||||||
Balance, March 31, 2009
|
28,297
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|
|
$
|
283
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|
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$
|
232,978
|
|
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$
|
5,856
|
|
|
$
|
(162,377
|
)
|
|
$
|
76,740
|
|
|
|
|
Nine Months Ended
|
||||||
|
March 31, 2009
|
|
March 31, 2008
|
||||
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|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
8,319
|
|
|
$
|
(7,878
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)
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
1,351
|
|
|
1,380
|
|
||
Provision for bad debts
|
69
|
|
|
620
|
|
||
Provision for inventory reserve
|
1,142
|
|
|
911
|
|
||
Provision (benefit) for deferred taxes
|
97
|
|
|
(921
|
)
|
||
Stock based compensation
|
707
|
|
|
446
|
|
||
Minority interests
|
3,221
|
|
|
369
|
|
||
Gain on sale of marketable securities
|
—
|
|
|
(33
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable and consignor advances
|
(267
|
)
|
|
(4,955
|
)
|
||
Receivables and secured loans
|
(12,899
|
)
|
|
(24,872
|
)
|
||
Litigation settlement receivable
|
5,975
|
|
|
(5,975
|
)
|
||
Inventory
|
5,743
|
|
|
(9,085
|
)
|
||
Prepaid expenses and other assets
|
1,801
|
|
|
2,167
|
|
||
Accounts payable, accrued expenses and other liabilities
|
1,658
|
|
|
18,468
|
|
||
Income taxes
|
4,117
|
|
|
1,341
|
|
||
Accrued litigation settlement
|
(6,995
|
)
|
|
14,995
|
|
||
Net cash provided by (used in) operating activities
|
14,039
|
|
|
(13,022
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures for property and equipment
|
(908
|
)
|
|
(558
|
)
|
||
Cash paid for acquisition, net of cash received
|
(672
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)
|
|
—
|
|
||
Cash paid for other intangibles
|
(39
|
)
|
|
—
|
|
||
Purchases of short term investments
|
(630
|
)
|
|
—
|
|
||
Increase in restricted cash
|
(650
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)
|
|
—
|
|
||
Purchases of marketable securities
|
(1,473
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(4,372
|
)
|
|
(558
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings (repayments) under lines of credit, net
|
(16,847
|
)
|
|
12,698
|
|
||
Borrowings under notes payable
|
—
|
|
|
(2,350
|
)
|
||
Liability on borrowed metals
|
(2,176
|
)
|
|
3,463
|
|
||
Repurchase of shares issued for class action settlement
|
(1,197
|
)
|
|
—
|
|
||
Taxes paid on behalf of employees with respect to vesting of restricted shares
|
(98
|
)
|
|
—
|
|
||
Dividends paid to minority interests
|
—
|
|
|
(588
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)
|
||
Net cash provided by (used in) financing activities
|
(20,318
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)
|
|
13,223
|
|
||
Effects of exchange rates on cash
|
(7,379
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)
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|
3,251
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(18,030
|
)
|
|
2,894
|
|
||
Cash and cash equivalents, beginning of period
|
35,860
|
|
|
21,168
|
|
||
Cash and cash equivalents, end of period
|
$
|
17,830
|
|
|
$
|
24,062
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||
Cash paid during the period:
|
|
|
|
|
|
||
Interest expense
|
$
|
1,467
|
|
|
$
|
2,820
|
|
Income taxes
|
$
|
485
|
|
|
$
|
664
|
|
|
|
|
|
|
|
Nine Months Ended
|
||||||
in thousands
|
|
March 31, 2009
|
|
March 31, 2008
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
8,319
|
|
|
$
|
(7,878
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
||||
Changes in unrealized gain (loss) on marketable securities, net of tax
|
|
94
|
|
|
(33
|
)
|
||
Foreign currency translation adjustment
|
|
(7,379
|
)
|
|
8,443
|
|
||
Comprehensive income (loss)
|
|
$
|
1,034
|
|
|
$
|
532
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
in thousands
|
March 31, 2009
|
|
March 31, 2008
|
|
March 31, 2009
|
|
March 31, 2008
|
||||
|
|
|
|
|
|
|
|
||||
Basic weighted average shares outstanding (1)(2)
|
31,616
|
|
|
28,136
|
|
|
30,748
|
|
|
28,136
|
|
Effect of common stock equivalents — stock options and stock issuable under employee compensation plans
|
473
|
|
244
|
|
|
700
|
|
|
—
|
|
|
Diluted weighted average shares outstanding
|
32,089
|
|
|
28,380
|
|
|
31,448
|
|
|
28,136
|
|
(1)
|
Basic weighted average shares, for the three and nine months ended
March 31, 2009
and 2008 include the effect of vested but unissued restricted stock grants.
|
(2)
|
Basic weighted average shares, for the three and nine months ended
March 31, 2009
and 2008 include the effect of 3,277,777 shares issuable pursuant to the securities class action and shareholder derivative litigation settlement as of the date the settlement agreement was executed. See further discussion in the Legal Proceedings section of the Company's 2009 Annual Report, and in Note 15 to the Notes to the Consolidated Financial Statements in its 2009 Annual Report.
|
2.
|
CUSTOMER CONCENTRATIONS
|
|
Three months ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
March 31, 2009
|
|
March 31, 2008
|
|
March 31, 2009
|
|
March 31, 2008
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||
in thousands
|
in $’s
|
as a %
|
|
in $’s
|
as a %
|
|
in $’s
|
as a %
|
|
in $’s
|
as a %
|
||||||||||||
Total Trading segment revenue
|
$
|
1,041,334
|
|
100.0
|
%
|
|
$
|
849,003
|
|
100.0
|
%
|
|
$
|
3,020,523
|
|
100.0
|
%
|
|
$
|
1,975,246
|
|
100.0
|
%
|
Trading segment customer concentrations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer A
|
$
|
271,393
|
|
26.1
|
%
|
|
$
|
148,199
|
|
17.5
|
%
|
|
$
|
647,269
|
|
21.4
|
%
|
|
$
|
296,096
|
|
15.0
|
%
|
Customer B
|
130,636
|
|
12.5
|
%
|
|
2,200
|
|
0.3
|
%
|
|
156,252
|
|
5.2
|
%
|
|
2,256
|
|
0.1
|
%
|
||||
Total
|
$
|
402,029
|
|
38.6
|
%
|
|
$
|
150,399
|
|
17.7
|
%
|
|
$
|
803,521
|
|
26.6
|
%
|
|
$
|
298,352
|
|
15.1
|
%
|
|
March 31, 2009
|
|
June 30, 2008
|
||||||||||
|
|
|
|
||||||||||
in thousands
|
in $’s
|
|
as a %
|
|
in $’s
|
|
as a %
|
||||||
Trading segment accounts receivable
|
$
|
22,073
|
|
|
100.0
|
%
|
|
$
|
7,835
|
|
|
100.0
|
%
|
Trading segment customer concentrations
|
|
|
|
|
|
|
|
|
|||||
Customer C
|
$
|
3,632
|
|
|
16.5
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Customer D
|
—
|
|
|
—
|
|
|
1,821
|
|
|
23.2
|
|
||
Customer E
|
—
|
|
|
—
|
|
|
1,798
|
|
|
22.9
|
|
||
Total
|
$
|
3,632
|
|
|
16.5
|
%
|
|
$
|
3,619
|
|
|
46.1
|
%
|
|
March 31, 2009
|
|
June 30, 2008
|
||||||||||
|
|
|
|
||||||||||
in thousands
|
in $’s
|
|
as a %
|
|
in $’s
|
|
as a %
|
||||||
Trading segment secured loans
|
$
|
15,244
|
|
|
100.0
|
%
|
|
$
|
10,135
|
|
|
100.0
|
%
|
Trading segment customer concentrations
|
|
|
|
|
|
|
|
||||||
Customer F
|
$
|
1,758
|
|
|
11.5
|
%
|
|
$
|
2,000
|
|
|
19.7
|
%
|
Customer G
|
1,745
|
|
|
11.4
|
|
|
1,750
|
|
|
17.3
|
|
||
Customer H
|
1,571
|
|
|
10.3
|
|
|
1,000
|
|
|
9.9
|
|
||
Customer I
|
1,402
|
|
|
9.2
|
|
|
1,463
|
|
|
14.4
|
|
||
Total
|
$
|
6,476
|
|
|
42.5
|
%
|
|
$
|
6,213
|
|
|
61.3
|
%
|
3.
|
RECEIVABLES
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
|
|
|
|
||||
Customer trade receivables
|
$
|
84
|
|
|
$
|
3,972
|
|
Wholesale trade advances
|
11,783
|
|
|
3,540
|
|
||
Secured loans
|
15,244
|
|
|
10,135
|
|
||
Due from brokers and other
|
10,206
|
|
|
323
|
|
||
Subtotal
|
37,317
|
|
|
17,970
|
|
||
Less: allowance for doubtful accounts
|
(55
|
)
|
|
(30
|
)
|
||
Subtotal
|
37,262
|
|
|
17,940
|
|
||
Derivative assets — futures contracts
|
—
|
|
|
6,336
|
|
||
Derivative assets — open purchase and sales commitments
|
2,036
|
|
|
1,598
|
|
||
Receivables and secured loans, net — trading operations
|
$
|
39,298
|
|
|
$
|
25,874
|
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
|
|
|
|
||||
Auction and trade
|
$
|
7,494
|
|
|
$
|
7,505
|
|
Less: allowance for doubtful accounts
|
(282
|
)
|
|
(491
|
)
|
||
Accounts receivable and consignor advances, net — collectibles operations
|
$
|
7,212
|
|
|
$
|
7,014
|
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
|
|
|
|
||||
Beginning balance
|
$
|
(521
|
)
|
|
$
|
(509
|
)
|
Provision for loss
|
(69
|
)
|
|
(66
|
)
|
||
Charge off to reserve
|
204
|
|
|
132
|
|
||
Foreign currency exchange rate changes
|
49
|
|
|
(78
|
)
|
||
Ending balance
|
$
|
(337
|
)
|
|
$
|
(521
|
)
|
4.
|
INVENTORIES
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
|
|
|
|
||||
Trading segment inventory
|
$
|
97,243
|
|
|
$
|
96,401
|
|
Less: provision for loss
|
(104
|
)
|
|
(104
|
)
|
||
Trading, net
|
$
|
97,139
|
|
|
$
|
96,297
|
|
Collectibles segment inventory
|
$
|
30,364
|
|
|
$
|
45,417
|
|
Less: provision for loss
|
(1,237
|
)
|
|
(10,764
|
)
|
||
Collectibles, net
|
$
|
29,127
|
|
|
$
|
34,653
|
|
Total inventory, gross
|
$
|
127,607
|
|
|
$
|
141,818
|
|
Less: provision for loss
|
(1,341
|
)
|
|
(10,868
|
)
|
||
Net inventory
|
126,266
|
|
|
130,950
|
|
||
Less: current inventory
|
(126,266
|
)
|
|
(130,653
|
)
|
||
Long-term inventory, net
|
$
|
—
|
|
|
$
|
297
|
|
in thousands
|
|
||
Balance, June 30, 2008
|
$
|
(10,868
|
)
|
Provision for loss
|
(1,142
|
)
|
|
Charge off to reserve
|
7,906
|
|
|
Foreign currency exchange rate charges
|
2,763
|
|
|
Balance, March 31, 2009
|
$
|
(1,341
|
)
|
|
|
in thousands
|
June 30, 2008
|
|
Additions and
Adjustments
|
|
Impairments
|
|
March 31, 2009
|
||||||||
Trading
|
$
|
4,884
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,884
|
|
Collectibles
|
1,641
|
|
|
—
|
|
|
—
|
|
|
1,641
|
|
||||
|
$
|
6,525
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,525
|
|
|
|
|
March 31, 2009
|
|
June 30, 2008
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||||
in thousands
|
Estimated Useful Lives (Years)
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Impairment
|
|
Net Book Value
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Impairment
|
|
Net Book Value
|
||||||||||||||||
Trademarks
|
Indefinite
|
|
$
|
2,576
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,576
|
|
|
$
|
2,033
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,033
|
|
Customer lists
|
5 - 15
|
|
9,161
|
|
|
(3,341
|
)
|
|
—
|
|
|
5,820
|
|
|
8,890
|
|
|
(2,854
|
)
|
|
—
|
|
|
6,036
|
|
||||||||
Non-compete and other
|
4 - 15
|
|
2,358
|
|
|
(2,074
|
)
|
|
—
|
|
|
284
|
|
|
2,260
|
|
|
(1,656
|
)
|
|
—
|
|
|
604
|
|
||||||||
Purchased intangibles subject to amortization
|
|
|
11,519
|
|
|
(5,415
|
)
|
|
—
|
|
|
6,104
|
|
|
11,150
|
|
|
(4,510
|
)
|
|
—
|
|
|
6,640
|
|
||||||||
|
|
|
$
|
14,095
|
|
|
$
|
(5,415
|
)
|
|
$
|
—
|
|
|
$
|
8,680
|
|
|
$
|
13,183
|
|
|
$
|
(4,510
|
)
|
|
$
|
—
|
|
|
$
|
8,673
|
|
Periods ending June 30,
|
|
Amount
|
||
2009 (remaining 3 months)
|
|
$
|
308
|
|
2010
|
|
724
|
|
|
2011
|
|
646
|
|
|
2012
|
|
576
|
|
|
2013
|
|
524
|
|
|
Thereafter
|
|
3,326
|
|
|
Total
|
|
$
|
6,104
|
|
6.
|
ACCOUNTS PAYABLE AND CONSIGNOR PAYABLES
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
|
|
|
|
||||
Trade payable to customers and consignor payables
|
$
|
7,337
|
|
|
$
|
13,330
|
|
Advances from customers
|
13,931
|
|
|
6,165
|
|
||
Net liability on margin accounts
|
4,817
|
|
|
7,872
|
|
||
Due to brokers
|
—
|
|
|
844
|
|
||
Other accounts payable
|
471
|
|
|
828
|
|
||
Derivative liabilities — futures contracts
|
524
|
|
|
—
|
|
||
Derivative liabilities — forward contracts
|
—
|
|
|
531
|
|
||
|
$
|
27,080
|
|
|
$
|
29,570
|
|
7.
|
INCOME TAXES
|
8.
|
FINANCING AGREEMENTS
|
9.
|
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
Trading Inventory, net
|
$
|
97,139
|
|
|
$
|
96,297
|
|
Less unhedgable inventory:
|
|
|
|
||||
Commemorative coins
|
(2,201
|
)
|
|
(1,358
|
)
|
||
Inventory reserve
|
104
|
|
|
104
|
|
||
Premium on metals position
|
(723
|
)
|
|
(719
|
)
|
||
Subtotal
|
94,319
|
|
|
94,324
|
|
||
Commitments at market:
|
|
|
|
||||
Open inventory purchase commitments
|
175,543
|
|
|
105,163
|
|
||
Open inventory sale commitments
|
(144,748
|
)
|
|
(49,900
|
)
|
||
Margin sale commitments
|
(9,317
|
)
|
|
(18,714
|
)
|
||
Premiums on open commitment positions
|
1,800
|
|
|
—
|
|
||
Inventory borrowed from suppliers
|
(16,613
|
)
|
|
(18,789
|
)
|
||
Advances on industrial metals
|
1,542
|
|
|
385
|
|
||
Inventory subject to price risk
|
102,526
|
|
|
112,469
|
|
||
Inventory subject to derivative financial instruments:
|
|
|
|
||||
Precious metals forward contracts at market values
|
7,288
|
|
|
30,154
|
|
||
Precious metals futures contracts at market values
|
96,613
|
|
|
82,431
|
|
||
Total market value of derivative financial instruments
|
103,901
|
|
|
112,585
|
|
||
Net inventory subject to price risk
|
$
|
(1,375
|
)
|
|
$
|
(116
|
)
|
10.
|
MINORITY INTERESTS
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
|
|
|
|
||||
Auctentia 20% interest in Spectrum PMI - (Spectrum PMI owns 100% of A-Mark Precious Metals)
|
$
|
8,461
|
|
|
$
|
5,820
|
|
Winter Games Bullion Ventures, LLC 50% outside interest
|
1,075
|
|
|
495
|
|
||
Total
|
$
|
9,536
|
|
|
$
|
6,315
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
in thousands
|
March 31, 2009
|
|
March 31, 2008
|
|
March 31, 2009
|
|
March 31, 2008
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Auctentia 20% interest in Spectrum PMI - (Spectrum PMI owns 100% of A-Mark Precious Metals)
|
$
|
1,049
|
|
|
$
|
198
|
|
|
$
|
2,641
|
|
|
$
|
369
|
|
Winter Games Bullion Ventures, LLC 50% interest
|
116
|
|
|
—
|
|
|
580
|
|
|
—
|
|
||||
Total
|
$
|
1,165
|
|
|
$
|
198
|
|
|
$
|
3,221
|
|
|
$
|
369
|
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
|
|
|
|
||||
Cash
|
$
|
68
|
|
|
$
|
33
|
|
Total Assets
|
$
|
2,515
|
|
|
$
|
1,726
|
|
Members’ equity
|
$
|
2,150
|
|
|
$
|
988
|
|
Total liabilities and members’ equity
|
$
|
2,515
|
|
|
$
|
1,726
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
in thousands
|
March 31, 2009
|
|
March 31, 2008
|
|
March 31, 2009
|
|
March 31, 2008
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Sales
|
$
|
3,705
|
|
|
$
|
—
|
|
|
$
|
39,369
|
|
|
$
|
—
|
|
Cost of products sold
|
3,172
|
|
|
—
|
|
|
37,534
|
|
|
—
|
|
||||
Gross profit
|
533
|
|
|
—
|
|
|
1,835
|
|
|
—
|
|
||||
Operating and other expenses
|
300
|
|
|
—
|
|
|
674
|
|
|
—
|
|
||||
Net income
|
$
|
233
|
|
|
$
|
—
|
|
|
$
|
1,161
|
|
|
$
|
—
|
|
13.
|
STOCKHOLDERS’ EQUITY
|
|
Options
|
|
Weighted Average Exercise Price
|
|
Intrinsic Value (in thousands)
|
|
Weighted Average per share Grant Date Fair Value
|
|||||||
Outstanding at June 30, 2008
|
613,325
|
|
|
$
|
6.14
|
|
|
$
|
114
|
|
|
$
|
4.69
|
|
Granted through stock option plan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Expired
|
(9,000
|
)
|
|
9.57
|
|
|
109
|
|
|
3.56
|
|
|||
Forfeited
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Outstanding at March 31, 2009
|
604,325
|
|
|
$
|
6.09
|
|
|
$
|
5
|
|
|
1.71
|
|
|
Shares exercisable at March 31, 2009
|
604,325
|
|
|
$
|
6.09
|
|
|
$
|
5
|
|
|
$
|
1.71
|
|
Options Outstanding
|
|
Options Exercisable
|
|||||||||||||||||||||
Exercise Price Ranges
|
|
Number of Shares Outstanding
|
|
Weighted Average Remaining Contractual Life
|
|
Weighted Average Exercise Price
|
|
Number of Shares Exercisable
|
|
Weighted Average Exercise Price
|
|||||||||||||
From
|
|
To
|
|
|
|
|
|
||||||||||||||||
$
|
1.00
|
|
|
$
|
5.00
|
|
|
391,250
|
|
|
4.25
|
|
|
$
|
2.28
|
|
|
391,250
|
|
|
$
|
2.28
|
|
5.01
|
|
|
10.00
|
|
|
26,200
|
|
|
4.76
|
|
|
8.96
|
|
|
26,200
|
|
|
8.96
|
|
||||
10.01
|
|
|
15.00
|
|
|
186,875
|
|
|
5.24
|
|
|
13.65
|
|
|
186,875
|
|
|
13.65
|
|
||||
|
|
|
|
604,325
|
|
|
4.58
|
|
|
$
|
6.09
|
|
|
604,325
|
|
|
$
|
6.09
|
|
|
Shares
|
|
Weighted Average share price at grant date
|
|||
Outstanding at June 30, 2008
|
279,892
|
|
|
$
|
2.64
|
|
Shares granted
|
326,548
|
|
|
2.73
|
|
|
Shares issued
|
(88,126
|
)
|
|
2.65
|
|
|
Shares forfeited
|
(34,920
|
)
|
|
2.18
|
|
|
Outstanding at March 31, 2009
|
483,394
|
|
|
2.71
|
|
|
Vested but unissued at March 31, 2009
|
16,578
|
|
|
$
|
2.61
|
|
14.
|
SEGMENT AND GEOGRAPHIC INFORMATION
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
in thousands
|
March 31, 2009
|
|
March 31, 2008
|
|
March 31, 2009
|
|
March 31, 2008
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||||
Trading
|
$
|
1,041,334
|
|
|
$
|
849,003
|
|
|
$
|
3,020,523
|
|
|
$
|
1,975,246
|
|
||
Collectibles:
|
|
|
|
|
|
|
|
||||||||||
Numismatics
|
30,168
|
|
|
36,288
|
|
|
87,176
|
|
|
92,522
|
|
||||||
Philatelic
|
6,385
|
|
|
9,583
|
|
|
22,318
|
|
|
29,423
|
|
||||||
Militaria and other
|
598
|
|
|
1,037
|
|
|
1,209
|
|
|
2,530
|
|
||||||
Total Collectibles
|
37,151
|
|
|
46,908
|
|
|
110,703
|
|
|
124,475
|
|
||||||
Total revenue
|
$
|
1,078,485
|
|
|
$
|
895,911
|
|
|
$
|
3,131,226
|
|
|
$
|
2,099,721
|
|
||
|
|
|
|
|
|
|
|
||||||||||
in thousands
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
|
March 31, 2009
|
|
March 31, 2008
|
|
March 31, 2009
|
|
March 31, 2008
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Revenue by geographic region:
|
|
|
|
|
|
|
|
||||||||||
United States
|
$
|
1,076,880
|
|
|
$
|
891,837
|
|
|
$
|
3,124,178
|
|
|
$
|
2,086,988
|
|
||
Asia Pacific
|
698
|
|
|
544
|
|
|
911
|
|
|
2,016
|
|
||||||
Europe
|
907
|
|
|
3,530
|
|
|
6,137
|
|
|
10,717
|
|
||||||
Total revenue
|
$
|
1,078,485
|
|
|
$
|
895,911
|
|
|
$
|
3,131,226
|
|
|
$
|
2,099,721
|
|
||
|
|
|
|
|
|
|
|
||||||||||
in thousands
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
|
March 31, 2009
|
|
March 31, 2008
|
|
March 31, 2009
|
|
March 31, 2008
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||||
Trading
|
$
|
7,851
|
|
|
$
|
1,852
|
|
|
$
|
20,459
|
|
|
$
|
4,411
|
|
||
Collectibles
|
(3,322
|
)
|
|
4,670
|
|
|
(7,552
|
)
|
|
6,980
|
|
||||||
Corporate expenses
|
(3,257
|
)
|
|
(5,033
|
)
|
|
(6,105
|
)
|
|
(18,157
|
)
|
||||||
Operating income (loss)
|
$
|
1,272
|
|
|
$
|
1,489
|
|
|
$
|
6,802
|
|
|
$
|
(6,766
|
)
|
||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
in thousands
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
|
March 31, 2009
|
|
March 31, 2008
|
|
March 31, 2009
|
|
March 31, 2008
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization:
|
|
|
|
|
|
|
|
||||||||||
Trading
|
$
|
250
|
|
161
|
|
$
|
247
|
|
178
|
|
$
|
747
|
|
|
$
|
741
|
|
Collectibles
|
210
|
|
209
|
|
264
|
|
279
|
|
604
|
|
|
639
|
|
||||
Depreciation and amortization
|
$
|
460
|
|
|
$
|
511
|
|
|
$
|
1,351
|
|
|
$
|
1,380
|
|
in thousands
|
|
March 31, 2009
|
|
June 30, 2008
|
||||
Inventories by segment/geographic region:
|
|
|
|
|
||||
Trading:
|
|
|
|
|
||||
United States
|
|
$
|
97,137
|
|
|
$
|
96,297
|
|
Collectibles:
|
|
|
|
|
||||
United States
|
|
26,904
|
|
|
29,576
|
|
||
Europe
|
|
2,007
|
|
|
4,981
|
|
||
Asia
|
|
218
|
|
|
96
|
|
||
Total Collectibles
|
|
29,129
|
|
|
34,653
|
|
||
Total inventories
|
|
$
|
126,266
|
|
|
$
|
130,950
|
|
in thousands
|
|
March 31, 2009
|
|
June 30, 2008
|
||||
Total assets by segment/geographic region:
|
|
|
|
(restated)
|
||||
Trading:
|
|
|
|
|
||||
United States
|
|
$
|
125,409
|
|
|
$
|
136,638
|
|
Collectibles:
|
|
|
|
|
||||
United States
|
|
68,379
|
|
|
54,360
|
|
||
Europe
|
|
17,222
|
|
|
28,772
|
|
||
Asia
|
|
2,487
|
|
|
2,131
|
|
||
Total Collectibles
|
|
88,088
|
|
|
85,263
|
|
||
Corporate and other
|
|
3,670
|
|
|
8,492
|
|
||
Total assets
|
|
$
|
217,167
|
|
|
$
|
230,393
|
|
in thousands
|
|
March 31, 2009
|
|
June 30, 2008
|
||||
Total long-term assets by segment/geographic region:
|
|
|
|
(restated)
|
||||
Trading:
|
|
|
|
|
||||
United States
|
|
$
|
10,343
|
|
|
$
|
11,808
|
|
Collectibles:
|
|
|
|
|
||||
United States
|
|
7,291
|
|
|
5,325
|
|
||
Europe
|
|
2,083
|
|
|
618
|
|
||
Asia
|
|
146
|
|
|
154
|
|
||
Total Collectibles
|
|
9,520
|
|
|
6,097
|
|
||
Corporate and other
|
|
2,023
|
|
|
2,271
|
|
||
Total long-term assets
|
|
$
|
21,886
|
|
|
$
|
20,176
|
|
in thousands
|
March 31, 2009
|
|
June 30, 2008
|
||||
|
|
|
|
||||
Unrealized income on marketable securities, net of tax
|
$
|
45
|
|
|
$
|
(49
|
)
|
Foreign currency translation gain
|
5,811
|
|
|
13,190
|
|
||
Accumulated other comprehensive income
|
$
|
5,856
|
|
|
$
|
13,141
|
|
16.
|
FAIR VALUE MEASUREMENTS
|
|
|
March 31, 2009
|
||||||||||||||
|
|
Quoted Price in
|
|
|
|
|
|
|
||||||||
|
|
Active Markets for
|
|
Other Significant
|
|
|
|
|
||||||||
|
|
Identical
|
|
Observable
|
|
Significant
|
|
|
||||||||
|
|
Instruments
|
|
Inputs
|
|
Unobservable
|
|
|
||||||||
in thousands
|
|
(Level 1)
|
|
(Level 2)
|
|
Inputs (Level 3)
|
|
Total Balance
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
|
$
|
97,243
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
97,243
|
|
Marketable securities
|
|
829
|
|
|
—
|
|
|
—
|
|
|
829
|
|
||||
Derivative assets — open purchase and sale commitments
|
|
—
|
|
|
2,036
|
|
|
—
|
|
|
2,036
|
|
||||
Total assets valued at fair value
|
|
$
|
98,072
|
|
|
$
|
2,036
|
|
|
$
|
—
|
|
|
$
|
100,108
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Liability on borrowed metals
|
|
$
|
(16,613
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(16,613
|
)
|
Liability on margin accounts
|
|
(4,817
|
)
|
|
—
|
|
|
—
|
|
|
(4,817
|
)
|
||||
Derivative liabilities — futures contracts
|
|
—
|
|
|
(524
|
)
|
|
—
|
|
|
(524
|
)
|
||||
Total liabilities valued at fair value
|
|
$
|
(21,430
|
)
|
|
$
|
(524
|
)
|
|
$
|
—
|
|
|
$
|
(21,954
|
)
|
•
|
Overview.
This section provides a general description of our business, as well as recent significant transactions and events that we believe are important in understanding the results of operations, as well as to anticipate future trends in those operations.
|
•
|
Results of operations.
This section provides an analysis of our results of operations presented in the accompanying condensed consolidated statements of operations by comparing the results for the
three
and
nine
months ended
March 31, 2009
and
2008
.
|
•
|
Financial condition and liquidity and capital resources.
This section provides an analysis of our cash flows, as well as a discussion of our outstanding debt that existed as of
March 31, 2009
. Included in the discussion of outstanding debt is a discussion of the amount of financial capacity available to fund our future commitments, as well as a discussion of other financing arrangements.
|
•
|
Critical accounting estimates.
This section discusses those accounting policies that both are considered important to our financial condition and results, and require significant judgment and estimates on the part of management in their application. In addition, all of our significant accounting policies, including critical accounting policies, are summarized in Note 1 to the accompanying condensed consolidated financial statements.
|
•
|
Recent accounting pronouncements.
This section discusses new accounting pronouncements, dates of implementation and impact on our accompanying condensed consolidated financial statements, if any.
|
|
|
|
% of
|
|
|
|
% of
|
|
increase
|
|
% of increase
|
|||||||||
in thousands
|
2009
|
|
revenue
|
|
2008
|
|
revenue
|
|
(decrease)
|
|
(decrease)
|
|||||||||
Revenue
|
$
|
1,078,485
|
|
|
100.0
|
%
|
|
$
|
895,911
|
|
|
100.0
|
%
|
|
$
|
182,574
|
|
|
20.4
|
%
|
Gross profit
|
19,854
|
|
|
1.8
|
|
|
16,301
|
|
|
1.8
|
|
|
3,553
|
|
|
21.8
|
|
|||
General and administrative expenses
|
8,356
|
|
|
0.8
|
|
|
8,177
|
|
|
0.9
|
|
|
179
|
|
|
2.2
|
|
|||
Salaries and wages
|
9,766
|
|
|
0.9
|
|
|
6,124
|
|
|
0.7
|
|
|
3,642
|
|
|
59.5
|
|
|||
Depreciation and amortization
|
460
|
|
|
—
|
|
|
511
|
|
|
0.1
|
|
|
(51
|
)
|
|
(10.0
|
)
|
|||
Operating income
|
1,272
|
|
|
0.1
|
|
|
1,489
|
|
|
0.2
|
|
|
(217
|
)
|
|
(14.6
|
)
|
|||
Interest income
|
1,543
|
|
|
0.1
|
|
|
1,129
|
|
|
0.1
|
|
|
414
|
|
|
36.7
|
|
|||
Interest expense
|
(432
|
)
|
|
—
|
|
|
(973
|
)
|
|
(0.1
|
)
|
|
(541
|
)
|
|
(55.6
|
)
|
|||
Other income (expense), net
|
(375
|
)
|
|
—
|
|
|
562
|
|
|
0.1
|
|
|
(937
|
)
|
|
(166.7
|
)
|
|||
Unrealized gain (loss) on foreign exchange
|
1,769
|
|
|
0.2
|
|
|
(813
|
)
|
|
(0.1
|
)
|
|
2,582
|
|
|
317.6
|
|
|||
Income before income taxes and minority interest
|
3,777
|
|
|
0.4
|
|
|
1,394
|
|
|
0.2
|
|
|
2,383
|
|
|
170.9
|
|
|||
Income taxes
|
520
|
|
|
—
|
|
|
339
|
|
|
—
|
|
|
181
|
|
|
53.4
|
|
|||
Minority interests
|
1,165
|
|
|
0.1
|
|
|
198
|
|
|
—
|
|
|
967
|
|
|
488.4
|
|
|||
Net income
|
$
|
2,092
|
|
|
0.2
|
%
|
|
$
|
857
|
|
|
0.1
|
%
|
|
$
|
1,235
|
|
|
144.1
|
%
|
|
|
|
|
|
|
|
|
|
increase/
|
|
% of increase/
|
||||||
|
2009
|
|
|
|
2008
|
|
|
|
(decrease)
|
|
(decrease)
|
||||||
Basic and diluted income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.07
|
|
|
|
|
$
|
0.03
|
|
|
|
|
$
|
0.04
|
|
|
NM
|
Diluted
|
$
|
0.07
|
|
|
|
|
$
|
0.03
|
|
|
|
|
$
|
0.04
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
31,616
|
|
|
|
|
28,136
|
|
|
|
|
|
|
|
||||
Diluted
|
32,089
|
|
|
|
|
28,380
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NM - not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
% of
|
|
increase/
|
|
% of increase/
|
|||||||||
in thousands
|
2009
|
|
revenue
|
|
2008
|
|
revenue
|
|
(decrease)
|
|
(decrease)
|
|||||||||
Revenue
|
$
|
3,131,226
|
|
|
100.0
|
%
|
|
$
|
2,099,721
|
|
|
100.0
|
%
|
|
$
|
1,031,505
|
|
|
49.1
|
%
|
Gross profit
|
55,690
|
|
|
1.8
|
|
|
42,752
|
|
|
2.0
|
|
|
12,938
|
|
|
30.3
|
|
|||
General and administrative expenses
|
21,710
|
|
|
0.7
|
|
|
23,627
|
|
|
1.1
|
|
|
(1,917
|
)
|
|
(8.1
|
)
|
|||
Salaries and wages
|
25,827
|
|
|
0.8
|
|
|
15,491
|
|
|
0.7
|
|
|
10,336
|
|
|
66.7
|
|
|||
Depreciation and amortization
|
1,351
|
|
|
—
|
|
|
1,380
|
|
|
0.1
|
|
|
(29
|
)
|
|
(2.1
|
)
|
|||
Litigation settlement
|
—
|
|
|
—
|
|
|
9,020
|
|
|
0.4
|
|
|
(9,020
|
)
|
|
(100.0
|
)
|
|||
Operating income (loss)
|
6,802
|
|
|
0.2
|
|
|
(6,766
|
)
|
|
(0.3
|
)
|
|
13,568
|
|
|
(200.5
|
)
|
|||
Interest income
|
3,862
|
|
|
0.1
|
|
|
3,172
|
|
|
0.2
|
|
|
690
|
|
|
21.8
|
|
|||
Interest expense
|
(1,892
|
)
|
|
(0.1
|
)
|
|
(2,913
|
)
|
|
(0.1
|
)
|
|
(1,021
|
)
|
|
(35.0
|
)
|
|||
Other income (expense), net
|
359
|
|
|
—
|
|
|
2,097
|
|
|
0.1
|
|
|
(1,738
|
)
|
|
82.9
|
|
|||
Unrealized gain (loss) on foreign exchange
|
4,740
|
|
|
0.2
|
|
|
(2,439
|
)
|
|
(0.1
|
)
|
|
7,179
|
|
|
294.3
|
|
|||
Income (loss) before income taxes and minority interests
|
13,871
|
|
|
0.4
|
|
|
(6,849
|
)
|
|
(0.3
|
)
|
|
20,720
|
|
|
(302.5
|
)
|
|||
Provision for income taxes
|
2,331
|
|
|
0.1
|
|
|
660
|
|
|
—
|
|
|
1,671
|
|
|
253.2
|
|
|||
Minority interests
|
3,221
|
|
|
0.1
|
|
|
369
|
|
|
—
|
|
|
2,852
|
|
|
772.9
|
|
|||
Net income (loss)
|
$
|
8,319
|
|
|
0.3
|
%
|
|
$
|
(7,878
|
)
|
|
(0.4
|
)%
|
|
$
|
16,197
|
|
|
205.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
increase/
|
|
% of increase/
|
||||||
|
2009
|
|
|
|
2008
|
|
|
|
(decrease)
|
|
(decrease)
|
||||||
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.27
|
|
|
|
|
$
|
(0.28
|
)
|
|
|
|
$
|
0.55
|
|
|
NM
|
Diluted
|
$
|
0.26
|
|
|
|
|
$
|
(0.28
|
)
|
|
|
|
$
|
0.54
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
30,748
|
|
|
|
|
28,136
|
|
|
|
|
|
|
|
||||
Diluted
|
31,448
|
|
|
|
|
28,136
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NM - not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
% of
|
|
$
|
|
%
|
|||||||||
In thousands
|
|
2009
|
|
revenue
|
|
2008
|
|
revenue
|
|
increase/(decrease)
|
|
increase/(decrease)
|
|||||||||
Trading revenues
|
|
$
|
1,041,334
|
|
|
100.0
|
%
|
|
$
|
849,003
|
|
|
100.0
|
%
|
|
$
|
192,331
|
|
|
22.7
|
%
|
Gross profit
|
|
14,123
|
|
|
1.4
|
|
|
4,642
|
|
|
0.5
|
|
|
9,481
|
|
|
204.2
|
|
|||
General and administrative expenses
|
|
772
|
|
|
0.1
|
|
|
909
|
|
|
0.1
|
|
|
(137
|
)
|
|
(15.1
|
)
|
|||
Salaries and wages
|
|
5,250
|
|
|
0.5
|
|
|
1,634
|
|
|
0.2
|
|
|
3,616
|
|
|
221.3
|
|
|||
Depreciation and amortization
|
|
250
|
|
|
—
|
|
|
247
|
|
|
—
|
|
|
3
|
|
|
1.2
|
|
|||
Operating income
|
|
$
|
7,851
|
|
|
0.8
|
%
|
|
$
|
1,852
|
|
|
0.2
|
%
|
|
$
|
5,999
|
|
|
323.9
|
%
|
|
|
|
|
% of
|
|
|
|
% of
|
|
$
|
|
%
|
|||||||||
In thousands
|
|
2009
|
|
revenue
|
|
2008
|
|
revenue
|
|
Increase/(decrease)
|
|
Increase/(decrease)
|
|||||||||
Trading revenues
|
|
$
|
3,020,523
|
|
|
100.0
|
%
|
|
$
|
1,975,246
|
|
|
100.0
|
%
|
|
$
|
1,045,277
|
|
|
52.9
|
%
|
Gross profit
|
|
36,892
|
|
|
1.2
|
|
|
10,764
|
|
|
0.5
|
|
|
26,128
|
|
|
242.7
|
|
|||
General and administrative expenses
|
|
2,082
|
|
|
0.1
|
|
|
2,142
|
|
|
0.1
|
|
|
(60
|
)
|
|
(2.8
|
)
|
|||
Salaries and wages
|
|
13,604
|
|
|
0.5
|
|
|
3,470
|
|
|
0.2
|
|
|
10,134
|
|
|
292.0
|
|
|||
Depreciation and amortization
|
|
747
|
|
|
—
|
|
|
741
|
|
|
—
|
|
|
6
|
|
|
0.8
|
|
|||
Operating income
|
|
$
|
20,459
|
|
|
0.7
|
%
|
|
$
|
4,411
|
|
|
0.2
|
%
|
|
$
|
16,048
|
|
|
363.8
|
%
|
|
|
March 31, 2009
|
|
March 31, 2008
|
|
$
|
|
%
|
|||||||||||||
in thousands
|
|
$
|
|
% to total
|
|
$
|
|
% to total
|
|
Increase/(decrease)
|
|
Increase/(decrease)
|
|||||||||
Collectibles revenues
|
|
$
|
37,151
|
|
|
100.0
|
%
|
|
$
|
46,908
|
|
|
100
|
%
|
|
$
|
(9,757
|
)
|
|
(20.8
|
)%
|
Revenues by Collectible Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Philatelic
|
|
$
|
6,385
|
|
|
17.2
|
%
|
|
$
|
9,583
|
|
|
20.4
|
%
|
|
$
|
(3,198
|
)
|
|
(33.4
|
)%
|
Numismatics
|
|
30,168
|
|
|
81.2
|
|
|
36,288
|
|
|
77.4
|
|
|
(6,120
|
)
|
|
(16.9
|
)
|
|||
Militaria and other
|
|
598
|
|
|
1.6
|
|
|
1,037
|
|
|
2.2
|
|
|
(439
|
)
|
|
(42.3
|
)
|
|||
|
|
$
|
37,151
|
|
|
100.0
|
%
|
|
$
|
46,908
|
|
|
100.0
|
%
|
|
$
|
(9,757
|
)
|
|
(20.8
|
)%
|
|
|
March 31, 2009
|
|
March 31, 2008
|
|
$
|
|
%
|
|||||||||||||
in thousands
|
|
$
|
|
% to total
|
|
$
|
|
% to total
|
|
Increase/(decrease)
|
|
Increase/(decrease)
|
|||||||||
Collectibles revenues
|
|
$
|
110,703
|
|
|
100.0
|
%
|
|
$
|
124,475
|
|
|
100.0
|
%
|
|
$
|
(13,772
|
)
|
|
(11.1
|
)%
|
Revenues by Collectible Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Philatelic
|
|
$
|
22,318
|
|
|
20.2
|
%
|
|
$
|
29,423
|
|
|
23.6
|
%
|
|
$
|
(7,105
|
)
|
|
(24.1
|
)%
|
Numismatics
|
|
87,176
|
|
|
78.7
|
|
|
92,522
|
|
|
74.3
|
|
|
(5,346
|
)
|
|
(5.8
|
)
|
|||
Militaria and other
|
|
1,209
|
|
|
1.1
|
|
|
2,530
|
|
|
2.0
|
|
|
(1,321
|
)
|
|
(52.2
|
)
|
|||
|
|
$
|
110,703
|
|
|
100.0
|
%
|
|
$
|
124,475
|
|
|
100.0
|
%
|
|
$
|
(13,772
|
)
|
|
(11.1
|
)%
|
|
|
|
|
% of
|
|
|
|
% of
|
|
$
|
|
% of
|
|||||||||
in thousands
|
|
2009
|
|
revenue
|
|
2008
|
|
revenue
|
|
Increase/(decrease)
|
|
Increase/(decrease)
|
|||||||||
Collectibles revenue
|
|
$
|
37,151
|
|
|
100.0
|
%
|
|
$
|
46,908
|
|
|
100.0
|
%
|
|
$
|
(9,757
|
)
|
|
(20.8
|
)%
|
Gross profit
|
|
5,731
|
|
|
15.4
|
|
|
11,659
|
|
|
24.9
|
|
|
(5,928
|
)
|
|
(50.8
|
)
|
|||
General and administrative expenses
|
|
5,183
|
|
|
14.0
|
|
|
2,746
|
|
|
5.9
|
|
|
2,437
|
|
|
88.7
|
|
|||
Salaries and wages
|
|
3,660
|
|
|
9.9
|
|
|
3,979
|
|
|
8.5
|
|
|
(319
|
)
|
|
(8.0
|
)
|
|||
Depreciation and amortization
|
|
210
|
|
|
0.6
|
|
|
264
|
|
|
0.6
|
|
|
(54
|
)
|
|
(20.5
|
)
|
|||
Operating income (loss)
|
|
$
|
(3,322
|
)
|
|
(8.9
|
)%
|
|
$
|
4,670
|
|
|
10.0
|
%
|
|
$
|
(7,992
|
)
|
|
(171.1
|
)%
|
|
|
|
|
% of
|
|
|
|
% of
|
|
$
|
|
% of
|
|||||||||
in thousands
|
|
2009
|
|
revenue
|
|
2008
|
|
revenue
|
|
Increase/(decrease)
|
|
Increase/(decrease)
|
|||||||||
Collectibles revenue
|
|
$
|
110,703
|
|
|
100.0
|
%
|
|
$
|
124,475
|
|
|
100.0
|
%
|
|
$
|
(13,772
|
)
|
|
(11.1
|
)%
|
Gross profit
|
|
18,798
|
|
|
17.0
|
|
|
31,988
|
|
|
25.7
|
|
|
(13,190
|
)
|
|
(41.2
|
)
|
|||
General and administrative expenses
|
|
15,535
|
|
|
14.0
|
|
|
13,545
|
|
|
10.9
|
|
|
1,990
|
|
|
14.7
|
|
|||
Salaries and wages
|
|
10,211
|
|
|
9.2
|
|
|
10,824
|
|
|
8.7
|
|
|
(613
|
)
|
|
(5.7
|
)
|
|||
Depreciation and amortization
|
|
604
|
|
|
0.5
|
|
|
639
|
|
|
0.5
|
|
|
(35
|
)
|
|
(5.5
|
)
|
|||
Operating income (loss)
|
|
$
|
(7,552
|
)
|
|
(6.8
|
)%
|
|
$
|
6,980
|
|
|
5.6
|
%
|
|
$
|
(14,532
|
)
|
|
(208.2
|
)%
|
in thousands
|
|
2009
|
|
2008
|
||||
|
|
|
|
|
||||
Cash provided by (used in) operating activities
|
|
$
|
14,039
|
|
|
$
|
(13,022
|
)
|
Cash used in investing activities
|
|
$
|
(4,372
|
)
|
|
$
|
(558
|
)
|
Cash provided by (used in) financing activities
|
|
$
|
(20,318
|
)
|
|
$
|
13,223
|
|
Exhibit 31.1
|
|
Certification of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Exhibit 31.2
|
|
Certification of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Exhibit 32.1
|
|
Chief Executive Officer Certification Under Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Exhibit 32.2
|
|
Chief Financial Officer Certification Under Section 906 of the Sarbanes-Oxley Act of 2002
|
Date:
|
June 25, 2012
|
SPECTRUM GROUP INTERNATIONAL, INC.
|
|
||
|
|
By:
|
/s/ Gregory N. Roberts
|
|
|
|
|
|
Name:
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Gregory N. Roberts
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Title:
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President and Chief Executive Officer
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Signatures
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Title(s)
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Date
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/s/ Gregory N. Roberts
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President, Chief Executive Officer and Director
(Principal Executive Officer)
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June 25, 2012
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Gregory N. Roberts
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/s/ Paul Soth
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Chief Financial Officer and Executive Vice President (Principal Financial Officer)
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June 25, 2012
|
Paul Soth
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1 Year Spectrum (CE) Chart |
1 Month Spectrum (CE) Chart |
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