DGSE Companies, Inc. Announces Fourth Quarter and Full Year 2010 Financial Results and Plans to Open Two DGSE Bullion Express locations
DALLAS--(April 15, 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 December 31, 2010 was approximately $26.9 million, an 21% increase from the revenue reported for the three months ended December 31, 2009 of approximately $ 22.1 million.
Net income for the three months ended December 31, 2010 was $10,000 or $.00 per common share on both a basic and diluted basis as compared to net loss of $(1,502,465) or $(.15) per common share on both a basic and diluted basis for the three months ended December 31, 2009. Reported earnings for the three months ended December 31, 2010 include one-time non-cash adjustments in the amount of approximately $518,000 or approximately $.05 per share.
“I am very pleased to announce a strong finish to a pivotal year for DGSE,” stated William Oyster, President and COO of DGSE. “The fourth quarter marks the second consecutive quarter of meaningful progress and performance across all of our primary business segments since we successfully closed the transaction involving the Receiver for Stanford International Bank. This performance has been driven by an improving retail environment, robust consumer and investor interest in precious metals and our ongoing efforts to capitalize on our relationship with NTR Metals, all of which are continuing in a positive manner. During the second quarter of 2011 , we will be opening two DGSE Bullion Express locations (Woodland Hills and Dallas). DGSE Bullion Express will provide immediate delivery of all precious metals products in transactions facilitated by our refining partner. It is our expectation that the success of the initial locations will lead to a nationwide rollout of these unique precious metals centers. In 2011, we will continue to focus on growing the business and taking advantage of the enormous opportunities before us through both maximizing the potential of our current channels as well as expanding our presence in targeted markets.”
The Company has been advised that NTR has notified DGSE’s Chairman of its intention to exercise its option to purchase 1,000,000 shares of common stock at $6.00 per share. The finalization of the exercise is subject to negotiations between the parties.
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 Galleries 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 Galleries' website at www.sgbh.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.
Summary of Operations
Periods ended December 31,
Year ended Quarter ended
2010 2009 2010 2009
Revenue $82,567,921 85,369,679 26,366,391 22,115,641
Net income (loss) $5,663,374 (313,694) 10,083 (1,502,455)
Earnings per share:
Basic $ .57 (.03) -- (.15)
Diluted .55 (.03) -- (.15)