DGSE Companies, Inc. Announces Third Quarter 2010 Financial Results
Strong Investor Interest in Precious Metals Products Driving Increased Activity and Revenues
DALLAS--(November 15, 2010)-- 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 September 30, 2010 was approximately $18.1 million, an 11% increase from the revenue reported for the three months ended September 30, 2009 of approximately $ 16.3 million.
Net income for the three months ended September 30, 2010 was $138,509 or $.01 per common share on both a basic and diluted basis as compared to net income of $309,901 or $.03 per common share on both a basic and diluted basis for the three months ended September 30, 2009.
EBITDA (earnings before interest, taxes, depreciation and amortization) was $409,173 in the third Quarter of 2010 ($.04 per basic share) versus $769,091 ($0.08 per basic share) in the equivalent period of 2009.
Net income and EBITDA were affected in the third quarter of 2010 by costs related to the redeployment of resources to prepare for higher anticipated revenues including filling advertising pipelines. The third quarter also reflects what are expected to be the final expenses related to the Stanford International Bank transaction.
“The third quarter of 2010 marks the first full quarter since we successfully closed the transaction involving the Receiver for Stanford International Bank and commenced our new and expanded relationship with NTR Metals” stated William Oyster, President and COO of DGSE. “We are extremely pleased to report that we are seeing positive trends across all of our primary business segments and our activity and plans with NTR continue to progress . Strong interest in all aspects of our precious metals related businesses contributed to the increased revenues versus the year ago period and bode well for the balance of the year and beyond. Store traffic and sales are increasing month to month, internet related revenue is up and growing and our recently launched IPhone and IPad applications are experiencing a growing number of downloads and driving traffic to our web sites. Revenue increased sequentially month to month during the third quarter and this trend has continued into our seasonally strong fourth quarter with October revenues exceeding $8 million, a monthly high for the year.”
“We are pleased with the progress and performance of the Company year to date. We are developing momentum, are enjoying a very favorable environment and are in a strong position to capitalize on the opportunities before us as we finish out the year and progress into 2011.”
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 live Internet auctions which can be accessed at www.dgse.com and through Superior Galleries' website at www.sgbh.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 , www.SuperiorEstateBuyers.com and over 900 supporting websites. Through www.SuperiorPreciousMetals.com ,we provide precious metals and rare coin investing and trading opportunities all across the United States.
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