DGSE Companies, Inc. Announces First Quarter 2011 Financial Results
Revenue and Net Income up Significantly from Year Ago Levels
DALLAS--(May 5, 2011)-- DGSE Companies, Inc. (NYSE Amex: DGSE), which buys and sells jewelry, fine watches, diamonds, rare coins and precious metals products via traditional and internet channels reported that revenue for the three months ended March 31, 2011 was approximately $24.7 million, a 43 % increase from the revenue reported for the three months ended March 31, 2010 of approximately $ 17.3 million.
Net income for the three months ended March 31, 2010 was $302,612 or $.03 per common share on both a basic and diluted basis as compared to a net loss of $(130,151) or ( $.01) per common share on both a basic and diluted basis for the three months ended March 31, 2010.
“I am again very pleased to report that DGSE experienced a strong quarter of progress and performance across all of our primary business segments,” stated William Oyster, President and COO of DGSE. “Revenue and net income from continuing operating activities were facilitated by continuing improvements in our retail channels and strong consumer and investor interest in all aspects of our precious metals related businesses.”
“We continue to focus on growth oriented initiatives that will leverage our unique business model and positioning in the precious metals markets and our relationship with NTR metals. Our first two DGSE Bullion Express locations in Woodland Hills, California and Dallas, Texas are scheduled to open during the current quarter and are expected to positively impact revenue and profitability as we progress through the year. DGSE Bullion Express will provide immediate delivery of all precious metals products to consumers which is becoming increasing difficult for many dealers and traditional outlets. Success at these initial locations will lead to a nationwide rollout of these unique precious metals centers in various cities across the Country.”
“In summary, the strong momentum we began to achieve in the second half of 2010 has continued into the first quarter of 2011. The trend continued and accelerated as we entered the start of the second quarter with April revenues representing the largest non-Christmas month in our history. Our outlook for the balance of the year remains strong.”
DGSE Companies, Inc. wholesales retails and auctions jewelry, diamonds, fine watches, and precious metal bullion and rare coin products to domestic and international customers through its Dallas Gold and Silver Exchange, Charleston Gold and Diamond Exchange, Superior Gold and Diamond Exchange operations as well as through the internet. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities in Dallas and Euless, Texas, Charleston, South Carolina and Woodland Hills, California, the Company operates internet websites which can be accessed at www.dgse.com and through Superior Gold and Diamond Exchange’s website at www.sgde.com and Charleston Gold & Diamond Exchange at www.cgdeinc.com. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE web site at www.USBullionExchange.com. Wholesale customers can access our full vintage watch inventory through the restricted site at www.FairchildWatches.com. DGSE also purchases precious metals, rare coins, watches, diamonds and jewelry through www.Americangoldandsilverexchange.com , and over 900 supporting websites. DGSE also operates an independent website at www.dgsetreausurehunt.com that allows consumers to purchase one of a kind items collected throughout its system.
The Company is headquartered in Dallas, Texas and its common stock trades on NYSE Amex Exchange under the symbol “DGSE”.
This press release includes statements which may constitute 'forward-looking" statements, usually containing the words "believe", "estimate", 'project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. In addition to the results presented in accordance with Generally Accepted Accounting Principles throughout this press release, DGSE has presented non-GAAP financial measures such as EBITDA. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company's reported GAAP results, provide useful information to investors because they are an integral part of the Company's internal evaluation of operating performance. In addition, they are measures that DGSE uses to evaluate management's effectiveness. DGSE’s non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.
DGSE Companies, Inc.
William H. Oyster, 972-484-3662
Chairman and CEO