DALLAS, TX / ACCESSWIRE / May 12, 2020 / Envela Corporation (NYSE American:ELA) ("Envela" or the "Company") today announced its financial results for the quarter ending March 31, 2020, which included $25.8 million in revenue; $1,174,149 in net income; and $.04 earnings per basic and diluted share.
Financial Highlights for Q1 2020
- Total Revenue increased over $9.8 million to $25.8 million, up 61.2% from the prior-year first quarter.
- Gross Profit increased to $5.3 million from $2.2 million, compared to the same quarter last year.
- Net income for the quarter was $1.17 million, or $0.04 per basic and diluted share, compared to $354,000 or $0.01 per basic and diluted share in the same period last year.
- Consolidated Gross Profit Margin was 20.5% compared to 13.8% for the same period last year.
- Revenues related to DGSE's operations increased by $4.3 million or 27% to $20.4 million, as compared to $16.0 million during the same period last year.
- Resale revenue at DGSE, such as bullion, jewelry, watches, and rare coins, increased $3.7 million, or 25% compared to the same period last year.
- Recycled-material sales at DGSE increased 50% to $1.8 million compared to the same period last year.
- Revenues related to ECHG's operations for the three months ended March 31, 2020 were $5.5 million.
- Resale revenue at ECHG accounted for 65% of its total sales at $3.5 million.
- Recycled-material sales at ECHG accounted for 35% of its total sales at $2.0 million.
Management Commentary
"Our business got off to a strong start in 2020, resulting in one of the biggest quarters in Envela's history. We continued to execute our expansion strategy and saw strong performance across both of our business segments," said John Loftus, Envela's Chairman and CEO.
COVID-19 Community Efforts
The COVID-19 pandemic has affected us all, but we are greatly inspired by the selfless efforts of healthcare providers, businesses employees and other essential workers getting us through this challenge. We are particularly moved by the countless teachers who have shown unwavering commitment to educating their students, even from miles away. Since many kids lack computers or internet service, however, they risk missing out on learning opportunities. To help with this obstacle, shortly after schools began closing their doors and shifting to remote learning, Envela designed and custom-minted 10 oz silver bars, the proceeds of which were donated to local schools. "We're pleased to play a part in the heartening, collective effort to meet the challenges posed by coronavirus," added Loftus.
About Envela
Envela and its subsidiaries engage in diverse business activities within the recommerce sector. These include recommercializing luxury hard assets, consumer electronics and IT equipment; and end-of-life recycling solutions. Envela assesses its inventory of recommerce purchases for their potential to be refurbished and resold as whole goods, or to be recycled for component parts or precious-metal value. Envela also offers comprehensive recycling solutions for a variety of other companies seeking responsibly to dispose of end-of-life products. Envela operates primarily via two business segments. Through DGSE, LLC the Company recommercializes luxury hard assets via Dallas Gold and Silver Exchange, Charleston Gold & Diamond Exchange, and Bullion Express brands. Through ECHG, LLC, the Company operates Echo Environmental Holdings, ITAD USA Holdings, and Teladvance, which recommercialize primarily consumer electronics and IT equipment, and provide end-of-life recycling services for various companies across many industries. Envela conducts its recommerce operations at retail and wholesale levels, through distributors, resellers, dedicated stores and online. Envela is a Nevada corporation, headquartered in Dallas, Texas.
Additional information about Envela is available at its investor-relations website, Envela.com.
Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, including statements regarding the impacts that the novel COVID-19 pandemic may have on our future operations, and the Company's potential future growth, and success of business lines and strategies. 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, market conditions and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.
Investor Relations Contact:
David Vadala
Head of Investor Relations
Envela Corporation
13022 Preston Rd Dallas, TX 75240
972.587.4030
SOURCE: Envela Corporation
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