DGSE Companies, Inc. Announces Fiscal Third Quarter 2009 Results

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.

Contacts:

DGSE Companies, Inc., Dallas
William H. Oyster, 972-484-3662