DGSE Companies, Inc. Announces Operating Results for 2009 Fiscal Year
March 31 2010 - 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 fiscal 2009.
Earnings and Revenues
- Operating income before
discontinued operations was $1,099,366 (basic and diluted of $.11
per share) for fiscal 2009 versus ($3,620,089) basic and diluted
($.37) for fiscal 2008.
- Basic and diluted net earnings
per share for the fiscal year after discontinued operations was
($.03) versus ($.80) basic and diluted in the equivalent period in
fiscal 2008. Net Earnings were ($313,694) for the fiscal year
versus ($7,851,207) for the equivalent 2008 period. Fiscal 2009
includes a charge for discontinued operations of $803,848 and
non-cash charges relating to the amortization of options and
approximately $223,000 from the revaluation of deferred tax
benefits. 2008 includes impairment and discontinued operations
charges in the amount of $7,333,443. Basic shares outstanding
during the 2009 fiscal were 9,863,635 versus 9,833,635 (basic) for
2008.
- Total Revenues for the fiscal
year were $85,369,679. Revenues for the equivalent period of 2008
were $101,224,082. During 2009 DGSE sold its pawnshop operations.
2008 Revenues included the results of the discontinued segment of
Superior Galleries business.
Performance Metrics & Liquidity
- EBITDA (earnings before
interest, taxes, depreciation and amortization) was $1,510,204 for
2009, $.15 per basic share versus ($3,223,317) ($.33) per basic
share in the equivalent period of 2008.
- Shareholders’ equity at the end
of 2008 was $12,396,559 or $1.27 per basic share.
Significant Events
In the later part of January 2010, the Company reached an
agreement with the Stanford Receiver in the matter of Stanford
Financial to acquire all of the equity registered in the name of
Stanford International Bank (SIB), to convert and retire all debt
owed by Superior to SIB and to cancel all agreements between the
parties. The Agreements call for a closing of that transaction on
or before May 14, 2010.
During the month of April, DGSE will launch two new websites
Charleston Gold & Diamond Exchange (CGDE.com) and Superior Gold
& Diamond Exchange (SGDE.com) The websites will be followed by
a new website for Dallas Gold & Silver Exchange (DGSE.com). All
of the websites will reflect substantial available inventories
across all of our platforms. All of the websites were developed
internally with our programming operation in Argentina (GruppoIT).
During the second quarter we will launch a standalone Treasure Hunt
site and will launch a precious metals iPhone application.
“Restraint in consumer discretionary spending continues to have
an impact on our retail activities,” noted William H. Oyster,
President and Chief Operating Officer of DGSE Companies, Inc. Mr.
Oyster continued, “We are confident that if we remain disciplined
and focus on our strengths, DGSE will negotiate the difficult
current environment and end the year stronger and more successful.
During 2009 the company elected to take what are believed to be the
last non-recurring losses related to our acquisition of Superior
Galleries, Inc. These non cash losses materially affect our
reported earnings but are one time charges.”
DGSE Companies, Inc. wholesales retails and auctions jewelry,
diamonds, fine watches, and precious metal bullion and rare coins
products to domestic and international customers through its Dallas
Gold and Silver Exchange, Charleston Gold and Diamond Exchange,
Superior Galleries and National Jewelry Exchange subsidiaries and
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 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 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. SUMMARY OF OPERATIONS
Year ended December 31, Quarter ended December 31, 2009 2008
2009 2008 Revenue $85,369,679 101,224,802 22,115,641
24,969,658 Net income from continuing operations
$480,617
(5,680,031 ) (1,089,928 ) (6,705,251 ) Net income
($313,694
) (7,851,207 ) (1,502,455 ) (8,984,172 ) Earnings per share
($0.03
) (0.80 ) (0.15 ) (0.91 )
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