This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

DGSE Reports Restated Financials For Fiscal 2010, Consolidated Financials For Fiscal 2011, And Financial Results For First And Second Quarter 2012

Stocks in this article: DGSE

SG&A expenses increased by $3.5 million to $5.6 million, an increase of 175 percent, compared to $2 million during the same period in 2011, primarily due to $2 million related to the addition of the SBT stores. The opening of four new non-SBT stores added $645,000, due to increased advertising costs, salaries, payroll taxes, building rent and other costs. In addition, the Company incurred $365,000 in professional fees associated with the restatement of our financial statements, and the related SEC investigation.

In March 2012, current management decided to discontinue the operations of the Company’s Superior Galleries subsidiary due to the lack of profitability and our belief that it was unlikely that profitability would be reached in the foreseeable future. The Company officially discontinued operations in June of 2012 but recognized losses in the first and second quarter of 2012 as discontinued operations. In the first quarter of 2012, the discontinued operations of Superior generated a net loss of $461,000.

Prior to the charge to discontinued operations, the Company had income from continuing operations of $959,000 for the first quarter of 2012. Net income after discontinued operations for the quarter was $497,000.

Second Quarter 2012 Results

For the three months ended June 30, 2012, sales decreased by $2.1 million, or 7 percent, to $28.6 million, as compared to $30.6 million during the same period in 2011. The decrease was primarily due to a decrease in sales of bullion, jewelry and rare coins. These decreases were partially offset by the acquisition of SBT in September 2011 which added revenues of $6.6 million for the quarter, and were not present in the same period in 2011. Revenue from discontinued operations for Superior was excluded in the amount of $1.1 million and $2.6 million for the periods ended June 30, 2012 and 2011, respectively.

4 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,444.11 +56.90 0.33%
S&P 500 2,031.10 +1.55 0.08%
NASDAQ 4,705.1710 +23.6740 0.51%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs