2021 Revenue Up 24% to Record $140.9M, Drives Net Income Over $10.0M
DALLAS, TX / ACCESSWIRE / March 16, 2022 / Envela Corporation (NYSE American:ELA) ("Envela" or the "Company"), today reported financial results for its fourth quarter and full-year ended December 31, 2021, which included $140.9 million in revenue; $10,048,875 net income; and $0.37 earnings per diluted share.
Management Commentary
"We ended fiscal 2021 on an exceptionally strong note, with robust growth and a significant increase to bottom-line profitability. We continued to advance our strategic initiatives in 2021, investing in our capabilities to better serve our customers and grow profitably," said John Loftus, Envela's Chairman and CEO. We remain extremely confident in the future as we look to build on our momentum and accelerate our progress," added Loftus.
"We are pleased to announce solid financial results for fourth quarter and full-year 2021, including a 55% increase in net income on a year-over-year basis, which is significantly ahead of expectations. These improvements stemmed from strong top-line growth across all major functions of the business," said Bret Pedersen, Envela's CFO.
2021 Operational Highlights
- Envela posted its fifth consecutive annual profit in 2021.
- Subsidiary DGSE, LLC ("DGSE") acquired a new retail store location in Frisco, Texas, as part of the Company's plan to expand its retail footprint.
- Subsidiary ECHG, LLC acquired CExchange in Carrollton, Texas, and Avail Recovery Solutions in Chandler, Arizona, to expand its capabilities.
Fourth Quarter 2021 Financial Results
Total revenue for the fourth quarter of 2021 increased 53% to $44.1 million from $28.7 million in the same year-ago period.
Revenue related to the continuing operations of the Company's DGSE subsidiary for the fourth quarter of 2021 was $29.3 million (67% of total revenue), compared to $22.8 million in the same year-ago period. DGSE's resale revenue, including bullion, jewelry, watches, and rare coins, was $27.5 million (94% of DGSE total sales), compared to $20.7 million (91% of DGSE total sales) in the same year-ago period. DGSE's recycled-material sales were $1.8 million (6% of DGSE total sales), compared to $2.1 million (9% of DGSE total sales) in the same year-ago period.
Revenue related to the Company's ECHG, LLC ("ECHG") subsidiary for the fourth quarter of 2021 was $14.8 million (33% of total revenue), compared to $5.9 million in the same year-ago period. ECHG's resale revenue was $10.9 million (74% of ECHG total sales), compared to $3.8 million (64% of ECHG total sales) in the same year-ago period. ECHG's recycled-material sales were $3.8 million (26% of ECHG total sales), compared to $2.1 million (36% of ECHG total sales) in the same year-ago period.
Consolidated gross profit for the fourth quarter of 2021 was $9.7 million, compared to $6.1 million in the same year-ago period.
- DGSE's gross profit was $3.6 million, compared to $3.0 million in the same year-ago period.
- DGSE's resale gross profit was $3.2 million, compared to $2.6 million in the same year-ago period.
- DGSE's recycled-materials gross profit was $0.4 million, compared to $0.4 million in the same year-ago period.
- ECHG's gross profit was $6.0 million, compared to $3.1 million in the same year-ago period.
- Resale gross profit was $5.5 million, compared to $2.5 million in the same year-ago period.
- Recycled-material gross profit was $0.5 million, compared to $0.6 million in the same year-ago period.
Envela's net income for the fourth quarter of 2021 was $2.8 million, or $0.10 per basic and diluted share, compared to $1.7 million, or $0.06 per basic and diluted share, in the same year-ago period.
Fiscal Year 2021 Financial Results
Total revenue for 2021 increased 24% to $140.9 million from $113.9 million in 2020.
Revenue related to the continuing operations of the Company's DGSE subsidiary for 2021 was $96.7 million (68.6% of total revenue), compared to $85.7 million (75.2% of total revenue) in 2021. DGSE's resale revenue, including bullion, jewelry, watches, and rare coins, was $89.1 million (92.1% of DGSE total sales), compared to $79.8 million (93.1% of DGSE total sales) in 2020. DGSE's recycled-material sales were $7.6 million (7.9% of DGSE total sales), compared to $5.9 million (6.9% of DGSE total sales) in 2020.
Revenue related to the Company's ECHG subsidiary for 2021 was $44.2 million (31.4% of total revenue), compared to $28.3 million (24.8% of total revenue) in 2020. ECHG's resale revenue was $32.5 million (73.5% of ECHG total sales), compared to $19.4 million (68.6% of ECHG total sales) in 2020. ECHG's recycled-material sales were $11.7 million (26.5% of ECHG total sales), compared to $8.9 million (31.4% of ECHG total sales) in 2020.
Consolidated gross profit for 2021 was $31.2 million, compared to $23.1 million in the same year-ago period.
- DGSE gross profit was $12.6 million, compared to $10.4 million in the same year-ago period.
- DGSE resale gross profit was $11.0 million, compared to $9.2 million in the same year-ago period.
- DGSE recycled-materials gross profit was $1.6 million, compared to $1.2 million in the same year-ago period.
- ECHG gross profit was $18.6 million, compared to $12.7 million in the same year-ago period.
- Resale gross profit was $14.6 million, compared to $9.5 million in the same year-ago period.
- Recycled-material gross profit was $4.0 million, compared to $3.2 million in the same year-ago period.
Envela's net income for 2021 was $10.0 million, or $0.37 per basic and diluted share, compared to $6.4 million, or $0.24 per basic and diluted share, in the same year-ago period.
About Envela
Envela is the North American leader in the "re-commerce" business, enabling a better world via the circular economy. It empowers both buyers and sellers to extend the useful life of specialty and durable goods, and to seize retail, recycling, and reverse-logistics opportunities in the supply chain. This financially benefits consumers and manufacturers alike. Envela operates primarily via two re-commerce business segments, DGSE and ECHG. DGSE (Envela's B2C portfolio) operates retail stores and online sites offering luxury hard assets and precious metals, including gold, silver, and diamonds. ECHG (Envela's B2B portfolio) re-commercializes consumer electronics and IT equipment, and also provides end-of-life recycling services for products in a variety of industries. Envela conducts its re-commerce operations at retail and wholesale levels, through distributors, resellers, dedicated stores, and online. Holdings in all Envela's business units have recognized multiple years of growth.
Additional information about Envela is available at its investor-relations site, Envela.com .
Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, including statements regarding acquisitions, and the potential future 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:
Investor Relations
1901 Gateway Drive | Irving, TX 75038
investorrelations@envela.com
Envela Corporation
Condensed Consolidated Statements of Operations
Envela Corporation
Condensed Consolidated Balance Sheets
Envela Corporation
Condensed Consolidated Statement of Cash Flows
SOURCE: Envela Corporation
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