DALLAS, TX / ACCESSWIRE / August 6, 2020 / Envela Corporation (NYSE American:ELA) ("Envela" or the "Company") today announced its financial results for the quarter ending June 30, 2020, which included $20.5 million in revenue; $566,174 in net income; and $.02 earnings per basic and diluted share.
The health, social and economic impacts of the past quarter have been unparalleled and unprecedented. Nevertheless, our earnings in this environment demonstrate the strength in our strategy and the power of our diversified business model.
Financial Highlights for Q2 2020
- Total Revenue was $20,545,607 for the period ending June 30, 2020.
- Net Income was $566,174 for the period ending June 30, 2020.
- Earnings per share for the period ending June 30, 2020 was $.02 which is unchanged compared to the same quarter last year.
- Consolidated Gross Profit Margin increased 1.3% to 21.8% from the previous quarter ending March 31, 2020.
- Consolidated Gross Profit was $4,471,258 for the three months ended June 30, 2020.
- DGSE Gross Profit was $1,614,765; Resale Gross Profit was $1,444,814 and Recycled Gross Profit was $169,951.
- ECHG Gross Profit was $2,856,493; Resale Gross Profit was $2,022,090 and Recycled Gross Profit was $834,403.
- Revenues related to DGSE's continuing operations were $14,349,029.
- Resale revenue, such as bullion, jewelry, watches, and rare coins was $13,421,969 or 93.5% of total sales.
- Recycled-material sales were $927,060 or 6.5% of total sales.
- Revenues related to ECHG for the three months ended June 30, 2020 were $6,196,578.
- Resale revenue at ECHG accounted for 11% of its total sales at $4,257,032
- Recycled-material sales at ECHG accounted for 89% of its total sales at $1,939,546
"Despite the negative impact of the temporary COVID-19-related restrictions on the sale of non-essential luxury goods for approximately half of the quarter, the company was able to reduce the lost business by expanding our sales online which allowed our deal flow to remain strong. Looking ahead, we believe we're well positioned to succeed after the environment surrounding COVID-19 accelerated our omnichannel retail program and vastly improved our digital capabilities," said John Loftus, Envela's Chairman and CEO. "We will continue doing what we do best-grow, diversify, and maintain disciplined operations. We remain committed to our expansion strategy and see encouraging performance across both business segments," added Loftus.
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. Together, we believe our communities and businesses will emerge even more resilient and hopeful.
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 operates at the 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.
This press release includes statements that may constitute "forward-looking" statements, including statements regarding the impacts that the COVID-19 pandemic may have on our future operations, the Company's potential future growth, and the success of its 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:
Head of Investor Relations
13022 Preston Rd Dallas, TX 75240
SOURCE: Envela Corporation