IRVING, TX / ACCESS Newswire / May 7, 2025 / Envela Corporation today announced its financial results for its first quarter ended March 31, 2025. The Company reported quarterly revenue of $48.3 million and quarterly earnings per diluted share of $0.10.
Management Commentary
"As we proudly celebrate our 60th year and mark our Diamond Jubilee, we are pleased to share the first-quarter results for fiscal 2025-marking the beginning of what we anticipate will be one of our most impactful years yet," said John Loftus, CEO of Envela. "Building on strong post-holiday momentum, our consumer segment proudly opened its third San Antonio location-completing our near-term goal and reinforcing our strategy of sustainable expansion. This milestone underscores our commitment to growth while deepening our connection with the communities we serve. As we move forward, our focus shifts to optimizing performance across these new locations, delivering exceptional value and convenience, and setting the stage for even greater opportunities ahead," added Loftus.
"Our commercial segment delivered a strong performance in the first quarter of fiscal 2025, driven by disciplined operational cost management and continued margin improvements. The product returns business continues to perform exceptionally well, and we are actively identifying new opportunities to expand our service delivery model-unlocking even greater value for our clients and driving sustainable growth. As demand for responsible recycling and secure asset management continues to grow, we're excited to build on this momentum and drive further success in the quarters to come," said Loftus.
"Along with today results, we received notice of our clearance to list on the NYSE Texas. This is an exciting development and represents our commitment to promoting the Texas economy. As we complete our listing process and commence trading, we will keep the market abreast of those developments," concluded Loftus.
"Overall, our operating income grew by 33.3% over the prior-year quarter", said John DeLuca, CFO of Envela. "The consumer segment is returning to normal course operations, which has led to reduced overhead costs associated with store openings and improved inventory turns as we were not heavily impacted with the build of multiple new store inventory positions. During the quarter, the business was also favorably impacted by selling scrap grades and bullion into a rising gold spot market along with improved contributions from our stores," added DeLuca, CFO. "Our commercial segment benefited from the performance of its ITAD business, which recognized a high margin settlement along with the aforementioned growth in our services business and solid outbound shipments of electronic scrap grades from our shredders," said DeLuca. "These results allowed Envela to increase its net cash by 10.5% to $7.8 million, compared to $7.1 million on December 31, 2024" concluded DeLuca.
First Quarter 2025 Financial Highlights
Envela will report more complete earnings in its Form 10-Q.
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| Three Months Ended March 31, |
| |||||
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| 2025 |
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| 2024 |
| ||
Sales |
| $ | 48,255,829 |
|
| $ | 39,857,780 |
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Gross margin |
| $ | 11,968,024 |
|
| $ | 10,320,684 |
|
Operating income |
| $ | 3,118,421 |
|
| $ | 2,340,143 |
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Net income |
| $ | 2,493,347 |
|
| $ | 1,907,539 |
|
Diluted earnings per share |
| $ | 0.10 |
|
| $ | 0.07 |
|
Adjusted EBITDA (non-GAAP measure) |
| $ | 3,563,762 |
|
| $ | 2,683,708 |
|
First Quarter 2025 Consolidated Operating Highlights
First quarter revenue was $48.3 million, compared to $39.9 million in the prior-year quarter.
First quarter gross margin decreased to 24.8% of quarterly revenue, compared to 25.9% in the prior-year quarter.
First quarter operating expenses were $8.8 million, compared to $8.0 million in the prior-year quarter.
First quarter operating income was $3.1 million, or 6.5% of revenue, compared to $2.3 million, or 5.9% of revenue in the prior-year quarter.
First quarter net income was $2.5 million, or $0.10 per basic and diluted share, compared to $1.9 million or $0.07 per basic and diluted shared in the prior-year quarter.
First quarter Adjusted EBITDA was $3.6 million or 7.4% of revenue, compared to $2.7 million or 6.7% of revenue in the prior-year quarter.
First Quarter Consumer Division Operating Highlights
Consumer Division revenue was $36.8 million in the first quarter of 2025, compared to $28.2 million in the prior-year quarter
Consumer Division gross margin was 11.5% of revenue in the first quarter of 2025, compared to 12.6% in the prior-year quarter.
Consumer Division operating expenses were $4.1 million in the first quarter of 2025, compared to $3.3 million in the prior-year quarter.
Consumer Division operating income was $0.1 million in the first quarter of 2025, compared to $0.2 million in the prior-year quarter.
Consumer Division net income was $0.1 million in the first quarter of 2025, compared to $0.1 million in the prior-year quarter
First Quarter Commercial Division Operating Highlights
Commercial Division revenue was $11.5 million in the first quarter of 2025, compared to $11.6 million in the prior-year quarter
Commercial Division gross margin was 67.5% of revenue in the first quarter of 2025, compared to 58.2% in the prior-year quarter.
Commercial Division operating expenses were $4.8 million in the first quarter of 2025, compared to $4.6 million in the prior-year quarter.
Commercial Division operating income was $3.0 million in the first quarter of 2025, compared to $2.1 million in the prior-year quarter.
Commercial Division net income was $2.4 million in the first quarter of 2025, compared to $1.8 million in the prior-year quarter.
Balance Sheet, Cash Flow and Liquidity
Cash and cash equivalents was $21.0 million on March 31, 2025, compared to $20.6 million on December 31, 2024.
The Company's long-term debt was $13.2 million on March 31, 2025, compared to $13.5 million on December 31, 2024.
Total shareholders' equity was $55.1 million on March 31, 2025, compared to $52.7 million on December 31, 2024.
For the three months ended March 31, 2025, consolidated operating cash flows totaled $1.1 million.
Share Repurchase Program
For the quarter ended March 31, 2025, the Company repurchased 500 shares of common stock at a cost of $2.6 thousand. Since the beginning of the share repurchase program in March of 2023, Envela has spent more than $4.6 million to purchase 929,430 shares of common stock under the share repurchase program authorized through March 31, 2026.
On March 27, 2025, the Board of Directors authorized the repurchase of an additional 100,000 shares of the Company's common stock, bringing the total authorization under the existing repurchase program to 1,100,000 shares.
Non-GAAP Financial Measures
This press release contains non-United States ("U.S.") Generally Accepted Accounting Principles ("GAAP") financial measures. A "non-U.S. GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with U.S. GAAP in the statements of income, balance sheets or statements of cash flows of the Company.
Adjusted EBITDA is a key performance measure that management uses to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our strategies and for planning purposes. Adjusted EBITDA may not be comparable to similarly titled metrics of other companies. Adjusted EBITDA is defined as the sum of net income (loss) of the Company, adjusted for additions (deductions) of interest expense, other (income) expense, income tax expense (benefit), and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be considered is an alternative to the presentation of net income or any other measure of financial performance calculated and presented in accordance with U.S. GAAP.
The following tables provides a reconciliation of net income to Adjusted EBITDA for the three months ended March 31, 2025 and 2024:
| Three Months Ended March 31, |
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| 2025 |
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| 2024 |
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| Consumer |
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| Commercial |
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| Consolidated |
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| Consumer |
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| Commercial |
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| Consolidated |
| ||||||
Adjusted EBITDA Reconciliation: |
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|
|
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|
|
|
|
|
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| ||||||||
Net income | $ | 69,094 |
|
| $ | 2,424,253 |
|
| $ | 2,493,347 |
|
| $ | 88,476 |
|
| $ | 1,819,063 |
|
| $ | 1,907,539 |
|
Addition (deduction): |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
| 180,632 |
|
|
| 264,709 |
|
|
| 445,341 |
|
|
| 93,676 |
|
|
| 249,889 |
|
|
| 343,565 |
|
Other income |
| (849 | ) |
|
| (204,756 | ) |
|
| (205,605 | ) |
|
| (8,005 | ) |
|
| (230,523 | ) |
|
| (238,528 | ) |
Interest expense |
| 54,047 |
|
|
| 52,274 |
|
|
| 106,321 |
|
|
| 64,401 |
|
|
| 56,453 |
|
|
| 120,854 |
|
Income tax expense |
| 20,073 |
|
|
| 704,285 |
|
|
| 724,358 |
|
|
| 59,151 |
|
|
| 491,127 |
|
|
| 550,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 322,997 |
|
| $ | 3,240,765 |
|
| $ | 3,563,762 |
|
| $ | 297,699 |
|
| $ | 2,386,009 |
|
| $ | 2,683,708 |
|
Net cash is defined as the difference between (i) cash and cash equivalents and (ii) the sum of debt obligations. We believe that presenting net cash is useful to investors as a measure of our liquidity and leverage profile, as cash and cash equivalents can be used, among other things, to repay indebtedness.
|
| March 31, |
|
| December 31, |
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|
| 2025 |
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| 2024 |
| ||
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|
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Total cash |
| $ | 21,028,265 |
|
| $ | 20,609,003 |
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Less: debt obligations |
|
| (13,195,997 | ) |
|
| (13,522,179 | ) |
|
|
|
|
|
|
|
|
|
| $ | 7,832,268 |
|
| $ | 7,086,824 |
| |
Envela periodically provides information for investors on its corporate website, envela.com. This includes press releases, quarterly investor presentations and other information about financial performance, reports filed or furnished with the Securities and Exchange Commission ("SEC"), information on corporate governance, and details related to its annual meeting of shareholders.
About Envela®
Envela Corporation (NYSE American:ELA) is a leading provider of re-commerce services, driving innovation at the forefront of the circular economy. We Reuse, Recycle, and Reimagine to offer consumers alternatives, contribute to environmental sustainability, and maximize product value. As a sustainability-focused company, Envela extends product lifecycles to minimize resource consumption and carbon emissions. By focusing on our core strengths, we create exceptional value and strive to leave the world better than we found it-without attempting to be everything to everyone.
The company operates through two primary business segments: Consumer and Commercial. The Consumer segment includes retail stores and online platforms offering premium brands and luxury hard assets, while the Commercial segment delivers tailored re-commerce solutions to clients, including many Fortune 500 companies.To learn more about our innovative approach, visit Envela.com.
Cautionary Statement Regarding Forward-Looking Information
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995's safe harbor provisions, including statements regarding future events and developments; potential expansions, purchases and acquisitions; potential future success of business lines and strategies; and management's expectations, beliefs, plans, estimates and projections relating to the future. Words such as "believes," "anticipates," "plans," "may," "intends," "will," "should," "expects" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management's then current views and assumptions and, as a result, are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC. 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
ir@envelacorp.com
972-587-4030
SOURCE: Envela Corporation
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/consumer-and-retail-products/envela-reports-first-quarter-2025-financial-results-1024965
