DGSE Companies, Inc. Announces Fiscal Third Quarter 2009 Results
November 16 2009 - 5:30PM
Business Wire
DGSE Companies, Inc. (NYSE Amex: DGSE), which wholesales,
retails and auctions fine watches, jewelry, diamonds and precious
metal and rare coin products via traditional and Internet channels,
today announced operating results for the quarter ended September
30, 2009.
Earnings
- Basic and diluted net income per
share for the fiscal third quarter of 2009 was $.03 versus $.02 in
the equivalent period in fiscal 2008. Net income from continuing
operations was $309,901 in the quarter versus $201,393 in the
equivalent 2008 quarter. Basic shares outstanding during the second
quarter of 2009 were 9,833,635 versus 9,498,729 in the 2008
quarter. Fully diluted shares outstanding for the quarter were
9,833,635 versus 10,344,363 for the equivalent 2008 quarter.
- Basic and diluted net income per
share for the nine-months ending September 30, 2009 was $.12 (after
loss from discontinued operations of $.04) versus $.11 in the
equivalent period in fiscal 2008. Net income from continuing
operations was $1,570,545 for the nine-months versus $1,132,965 in
the equivalent 2008 period. Basic shares outstanding during the
period of 2009 were 9,833,635 versus 9,666,182 in the 2008 period.
Fully diluted shares outstanding for the period were 9,833,635
versus 10,344,363 for the equivalent 2008 quarter
- Total Revenues for the Fiscal
Third Quarter of 2009 were $16,280,397. Revenues for the equivalent
quarter of 2008 were $23,491,946. Revenues for the nine-months were
$63,254,038 versus $80,249,402 in the equivalent 2008 period.
Performance Metrics & Liquidity
- EBITDA (earnings before
interest, taxes, depreciation and amortization) was $769,091 in the
Third Quarter of 2009 ($.08 per basic share) versus $508,318 ($.05
per basic share) in the equivalent period of 2008.
- EBITDA (earnings before
interest, taxes, depreciation and amortization) for the nine-months
was $2,423,532 versus $2,285,883 in the equivalent 2008
period.
- Shareholders’ equity at the end
of the Third Quarter of 2009 was $13,882,642 or $ 1.40
- per basic share.
“The retail environment remains challenging but we are beginning
to see increased activity as we move into the important Christmas
selling season,” noted William H. Oyster, President and Chief
Operating Officer of DGSE Companies, Inc. Mr. Oyster continued,
“While revenues have been lower for the first nine months of the
fiscal year our operating results have improved significantly.
Revenue comparisons reflect the current retail environment as well
as the discontinuance of an important segment of Superior
Galleries, Inc.'s business. The refocus of that business lead to,
what we believe, is a short term decline in revenue in the
supporting businesses. As we move into the final quarter of the
year, the refocused business activity is growing faster than any
other component of our business and we expect it to be a material
contributor to our overall business in the fourth quarter and in
fiscal 2010.”
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.
Summary of operations
Three months ended September
30,
Nine months ended September 30, 2009 2008 2009
2008 Revenue $ 16,280,397 23,491,946 63,254,038 80,249,402 Net
income $ 269,741 165,786 1,188,761 1,132,965 Earnings per share $
.03 .02 .12 .11
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