Envela Reports Solid Third Quarter 2022 Financial Results

Nov 2, 2022

DALLAS, TX / ACCESSWIRE / November 2, 2022 / Envela Corporation (NYSE American:ELA) (“Envela” or the “Company”), the North American re-commerce leader, today reported financial results for its third quarter ended September 30, 2022. The Company posted a September quarter record revenue of $45.2 million, up 20 percent year over year, and quarterly earnings per diluted share of $0.12.

Management Commentary

“Our momentum continues to build with another quarter of strong results, reflecting our commitment to delivering consistently robust operational performance while working to be good stewards of our world’s resources,” said John Loftus, Chairman and CEO of Envela. “We lead with our values in every decision we make. Through re-commerce, we’re deeply committed to leaving the world better than we found it, while simultaneously delivering value to all stakeholders. And as we head into the holiday season, I also want to recognize our exceptional team of employees who daily bring energy and commitment to our company’s mission.”

“This quarter’s results demonstrate our continued ability to execute effectively and outperform compared to our peers, even in a challenging and volatile macroeconomic backdrop,” said Bret Pedersen, Envela’s Chief Financial Officer. “We continue to invest in our strategic priorities to drive profitability and long-term success in any environment.”

Envela Corporation, Wednesday, November 2, 2022, Press release picture

Third Quarter 2022 Financial Results

Total revenue for the third quarter of 2022 was $45.2 million compared to $37.7 million in the same year-ago period.

Revenue related to continuing operations of the Company’s DGSE subsidiary for the third quarter of 2022 was $30.4 million (67.3% of total revenue), compared to $25.5 million in the same year-ago period. DGSE’s resale revenue, including bullion, jewelry, watches, and rare coins, was $28.2 million (92.6% of DGSE total sales), compared to $23.4 million (91.9% of DGSE total sales) in the same year-ago period. DGSE’s recycled-material sales were $2.3 million (7.4% of DGSE total sales), compared to $2.1 million (8.1% of DGSE total sales) in the same year-ago period.

Revenue related to the Company’s ECHG subsidiary for the third quarter of 2022 was $14.8 million (32.7% of total revenue), compared to $12.2 million in the same year-ago period. ECHG’s resale revenue was $11.5 million (78.0% of ECHG total sales), compared to $8.3 million (68.0% of ECHG total sales) in the same year-ago period. ECHG’s recycled-material sales were $3.3 million (22% of ECHG total sales), compared to $3.9 million (32% of ECHG total sales) in the same year-ago period.

Consolidated gross profit for the third quarter of 2022 was $11.9 million, compared to $8.1 million in the same year-ago period.

  • DGSE’s gross profit was $3.7 million, compared to $3.1 million in the same year-ago period.
    • DGSE’s resale gross profit was $3.3 million, compared to $2.6 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 $8.1 million, compared to $5.1 million in the same year-ago period.
    • Resale gross profit was $6.5 million, compared to $3.5 million in the same year-ago period.
    • Recycled-material gross profit was $1.6 million, compared to $1.6 million in the same year-ago period.

Net income for the third quarter of 2022 was $3.32 million, or $0.12 per basic and diluted share, compared to $3.10 million, or $0.12 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.

At Envela we Reuse, Recycle, and Reimagine. To learn more, visit Envela.com and follow us on Twitter, Instagram, Facebook and LinkedIn.

Forward-Looking Statements

This press release includes statements that may constitute “forward-looking” statements, including statements regarding financial strength, 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
[email protected]

SOURCE: Envela Corporation

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