Fri, 20 May 2022

Envela Reports First Quarter 2022 Financial Results

ACCESSWIRE
12 May 2022, 06:13 GMT+10

Quarterly Net Income Up 32% Year-over-Year to $2.65 Million

DALLAS, TX / ACCESSWIRE / May 11, 2022 / Envela Corporation (NYSE American:ELA) ('Envela' or the 'Company'), the North American re-commerce leader, today reported financial results for its first quarter ended March 31, 2022.

Management Commentary

'The Company's robust first-quarter performance affirms our strategic decision to expand and diversify within the re-commerce space. The momentum we saw throughout 2021 continued to build in the first quarter of 2022, with both revenue and bottom line exceeding our expectations,' said John Loftus, Chairman and CEO of Envela. 'Against this backdrop, we plan to proceed with our proven approach-investing in our businesses and employees to build sustainable long-term value.'

Envela Corporation, Wednesday, May 11, 2022, Press release picture

First Quarter 2021 Financial Results

Total revenue for the first quarter of 2022 was $47.4 million compared to $25.5 million in the same year-ago period.

Revenue related to continuing operations of the Company's DGSE subsidiary for the first quarter of 2021 was $35.8 million (75.5% of total revenue), compared to $18.9 million in the same year-ago period. DGSE's resale revenue, including bullion, jewelry, watches, and rare coins, was $33.7 million (94% of DGSE total sales), compared to $17.3 million (92% of DGSE total sales) in the same year-ago period. DGSE's recycled-material sales were $2.1 million (6% of DGSE total sales), compared to $1.6 million (8% of DGSE total sales) in the same year-ago period.

Revenue related to the Company's ECHG subsidiary for the first quarter of 2021 was $11.6 million (24.5% of total revenue), compared to $6.6 million in the same year-ago period. ECHG's resale revenue was $9.6 million (82% of ECHG total sales), compared to $4.7 million (72% of ECHG total sales) in the same year-ago period. ECHG's recycled-material sales were $2.1 million (18% of ECHG total sales), compared to $1.9 million (28% of ECHG total sales) in the same year-ago period.

Consolidated gross profit for the first quarter of 2022 was $9.7 million, compared to $6.3 million in the same year-ago period.

  • DGSE's gross profit was $4.2 million, compared to $2.8 million in the same year-ago period.
    • DGSE's resale gross profit was $3.7 million, compared to $2.5 million in the same year-ago period.
    • DGSE's recycled-materials gross profit was $0.5 million, compared to $0.4 million in the same year-ago period.
  • ECHG's gross profit was $5.5 million, compared to $3.5 million in the same year-ago period.
    • Resale gross profit was $4.6 million, compared to $2.6 million in the same year-ago period.
    • Recycled-material gross profit was $0.9 million, compared to $0.9 million in the same year-ago period.

Net income for the first quarter of 2022 was $2.65 million, or $0.10 per basic and diluted share, compared to $2.0 million, or $0.07 per basic and diluted share, in the same year-ago period.

About Envela

Envela is the North American re-commerce leader, enabling a better world through the circular economy. It empowers buyers and sellers to extend the useful lives of specialty and durable goods, and to seizes retail, recycling, and reverse-logistics supply-chain opportunities. 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 of 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

These financials are to be viewed with Form 10-Q and accompanying notes filed with the Securities and Exchange Commission on May 11, 2022. The accompanying notes to Form 10-Q are an integral part of these consolidated financial statements.

Envela Corporation
Condensed Consolidated Balance Sheets

These financials are to be viewed with Form 10-Q and accompanying notes filed with the Securities and Exchange Commission on May 11, 2022. The accompanying notes to Form 10-Q are an integral part of these consolidated financial statements.

Envela Corporation
Condensed Consolidated Statement of Cash Flows

These financials are to be viewed with Form 10-Q and accompanying notes filed with the Securities and Exchange Commission on May 11, 2022. The accompanying notes to Form 10-Q are an integral part of these consolidated financial statements.

SOURCE: Envela Corporation



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https://www.accesswire.com/700968/Envela-Reports-First-Quarter-2022-Financial-Results

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