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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

This press release includes statements which may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. 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, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

DGSE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
     
December 31,
  2011     2010  
As Restated
ASSETS
Current Assets:
Cash and cash equivalents $ 6,069,392 $ 732,449
Trade receivables 1,582,092 715,382
Inventories 11,635,225 7,977,228
Prepaid expenses   98,455     28,473  
Total current assets 19,385,164 9,453,532
 
Marketable securities-available for sale - 7,500
Property and equipment, net 4,705,551 4,342,556
Intangible assets, net 3,397,367 41,352
Other assets   160,491     21,492  
Total assets $ 27,648,573   $ 13,866,432  
 
LIABILITIES
Current Liabilities:
Line of credit $ 2,999,887 $ 3,499,887
Current maturities of long-term debt 451,674 734,267
Current maturities of capital leases 21,184 -
Convertible debt, net of debt discount - 147,999
Accounts payable-trade 1,501,057 1,477,980
Accrued expenses 3,044,393 1,076,266
Customer deposits and other liabilities   1,836,748     2,800,763  
Current liabilities related to continuing operations 9,854,943 9,737,162
 
 
Long-term debt, less current maturities 2,471,226 2,901,363
Capital leases, less current maturities 30,914 -
Accrued expenses, less current maturities   -     1,829,663  
Total liabilities 12,357,083 14,468,188
 
Commitments and contingencies
 
STOCKHOLDERS' EQUITY
Common stock 121,639 104,117
Additional paid-in capital 33,942,579 19,080,390
Accumulated deficit   (18,772,728 )   (19,786,263 )
Total stockholders' equity (deficit) 15,291,490 (601,756 )
   
Total liabilities and stockholders' equity $ 27,648,573   $ 13,866,432  

DGSE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
       
For the Year Ended

December 31,

  2011   2010  
As Restated
Revenue:
Sales $ 149,627,353 $ 82,567,921
 
Costs and expenses:
Cost of goods sold 128,243,735 70,162,747
Selling, general and administrative expenses 14,977,359 11,703,653
Depreciation and amortization   429,481   414,142  
143,650,575 82,280,542
 
Operating income   5,976,778   287,379  
 
Other expense (income) :
Loss on settlement of debt with related party 4,360,713 -
Gain on settlement of debt and other liabilities - (10,845,049 )
Other expense (income), net 29,315 (17,443 )
Interest expense   573,215   383,994  
  4,963,243   (10,478,498 )
 
Income before income taxes 1,013,535 10,765,877
 
Income tax expense - 24,675
   
Net income $ 1,013,535 $ 10,741,202  
 
Earnings per common share:
Basic $ 0.09 $ 1.04  
Diluted $ 0.09 $ 0.96  
 
Weighted-average number of common shares
Basic 10,831,971 10,335,794
Diluted 10,201,196 11,216,158

DGSE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
     
March 31, December 31,
  2012     2011  
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 3,354,378 $ 5,976,928
Trade receivables 576,256 1,578,892
Inventories 11,458,174 10,717,291
Prepaid expenses   111,250     84,971  
Current assets related to continuing operations 15,500,058 18,358,082
 
Assets related to discontinued operations   1,030,368     1,311,929  
 
Total current assets   16,530,426     19,670,011  
 
Marketable securities-available for sale 113,112 -
Property and equipment, net 4,611,976 4,420,704
Intangible assets, net 3,340,485 3,397,367
Other assets   145,310     160,491  
Total assets $ 24,741,309   $ 27,648,573  
 
LIABILITIES
Current Liabilities:
Line of credit $ 2,999,887 $ 2,999,887
Current maturities of long-term debt 444,171 451,674
Current maturities of capital leases 25,349 21,184
Accounts payable-trade 996,361 1,497,492
Accrued expenses 833,236 3,017,394
Customer deposits and other liabilities   1,001,879     1,836,748  
Current liabilities related to continuing operations 6,300,883 9,824,379
 
Liabilities related to discontinued operations   175,810     54,454  
 
Total current liabilities   6,476,693     9,878,833  
 
Long-term debt, less current maturities 2,369,395 2,447,336
Capital leases, less current maturities   21,174     30,914  
Total liabilities 8,867,262 12,357,083
 
Commitments and contingencies
 
STOCKHOLDERS' EQUITY
Common stock 121,755 121,639
Additional paid-in capital 34,027,769 33,942,579
Accumulated deficit   (18,275,477 )   (18,772,728 )
Total stockholders' equity 15,874,047 15,291,490
   
Total liabilities and stockholders' equity $ 24,741,309   $ 27,648,573  

DGSE COMPANIES, INC. AND SUBSIDIARIES    
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
   
Three Months Ended

March 31,

  2012     2011  
As Restated
Revenue:
Sales $ 32,814,664 $ 22,970,462
 
Costs and expenses:
Cost of goods sold 26,087,151 20,423,414
Selling, general and administrative expenses 5,609,294 2,042,757
Depreciation and amortization   152,427     87,691  
31,848,872 22,553,862
 
Operating income   965,792     416,600  
 
Other expense (income) :
Other expense (income), net (83,925 ) (2,245 )
Interest expense   90,714     98,606  
  6,789     96,361  
 
Income from continuing operations before income taxes 959,003 320,239
 
Income tax expense   -     -  
 
Income from continuing operations 959,003 320,239
 
Discontinued operations:
Loss from discontinued operations, net of taxes of $0 (461,752 ) (124,933 )
   
Net income $ 497,251   $ 195,306  
 
Basic net income per common share:
Income from continuing operations $ 0.08 $ 0.03
Loss from discontinued operations   (0.04 )   (0.01 )
Net income per share $ 0.04   $ 0.02  
 
Diluted net income per common share:
Income from continuing operations $ 0.08 $ 0.03
Loss from discontinued operations   (0.04 )   (0.01 )
Net income per share $ 0.04   $ 0.02  
 
Weighted-average number of common shares
Basic 12,174,689 10,379,119
Diluted 12,544,143 11,222,041

DGSE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
     
June 30, December 31,
  2012     2011  
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 1,726,760 $ 5,976,928
Trade receivables 1,151,517 1,578,892
Inventories 12,917,775 10,717,291
Prepaid expenses   184,159     84,971  
Current assets related to continuing operations 15,980,211 18,358,082
 
Assets related to discontinued operations   40,605     1,311,929  
 
Total current assets   16,020,816     19,670,011  
 
Marketable securities-available for sale 113,112 -
Property and equipment, net 4,790,192 4,420,704
Intangible assets, net 3,283,603 3,397,367
Other assets   150,922     160,491  
Total assets $ 24,358,645   $ 27,648,573  
 
LIABILITIES
Current Liabilities:
Line of credit $ 2,999,887 $ 2,999,887
Current maturities of long-term debt 412,140 451,674
Current maturities of capital leases 26,667 21,184
Accounts payable-trade 1,760,050 1,497,492
Accrued expenses 1,047,354 3,017,394
Customer deposits and other liabilities   2,155,339     1,836,748  
Current liabilities related to continuing operations 8,401,437 9,824,379
 
Liabilities related to discontinued operations   193,400     54,454  
 
Total current liabilities   8,594,837     9,878,833  
 
Long-term debt, less current maturities 2,274,316 2,447,336
Capital leases, less current maturities   14,037     30,914  
Total liabilities 10,883,190 12,357,083
 
Commitments and contingencies
 
STOCKHOLDERS' EQUITY
Common stock 121,755 121,639
Additional paid-in capital 34,036,711 33,942,579
Accumulated deficit   (20,683,011 )   (18,772,728 )
Total stockholders' equity 13,475,455 15,291,490
   
Total liabilities and stockholders' equity $ 24,358,645   $ 27,648,573  

DGSE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
         
Three Months Ended

June 30,

Six Months Ended

June 30,

  2012     2011     2012     2011  
As Restated As Restated
Revenue:
Sales $ 28,584,697 $ 30,642,620 $ 61,399,360 $ 53,613,083
 
Costs and expenses:
Cost of goods sold 24,572,269 27,521,425 50,659,420 47,944,839
Selling, general and administrative expenses 5,989,724 2,568,011 11,599,018 4,610,768
Depreciation and amortization   143,496     72,402     295,923     160,094  
30,705,489 30,161,838 62,554,361 52,715,701
 
Operating (loss) income   (2,120,792 )   480,782     (1,155,001 )   897,382  
 
Other expense (income) :
Other expense (income), net (4,320 ) 500 (88,244 ) (1,745 )
Interest expense   90,406     164,987     181,119     263,593  
  86,086     165,487     92,875     261,848  
 
(Loss) income from continuing operations before income taxes (2,206,878 ) 315,295 (1,247,876 ) 635,534
 
Income tax expense   -     -     -     -  
 
(Loss) income from continuing operations (2,206,878 ) 315,295 (1,247,876 ) 635,534
 
Discontinued operations:
Loss from discontinued operations, net of taxes of $0 (200,654 ) (77,326 ) (662,406 ) (202,259 )
       
Net (loss) income $ (2,407,532 ) $ 237,969   $ (1,910,282 ) $ 433,275  
 
Basic net (loss) income per common share:
(Loss) income from continuing operations $ (0.18 ) $ 0.03 $ (0.10 ) $ 0.06
Loss from discontinued operations   (0.02 )   (0.01 )   (0.06 )   (0.02 )
Net (loss) income per share $ (0.20 ) $ 0.02   $ (0.16 ) $ 0.04  
 
Diluted net (loss) income per common share:
(Loss) income from continuing operations $ (0.18 ) $ 0.03 $ (0.10 ) $ 0.06
Loss from discontinued operations   (0.02 )   (0.01 )   (0.06 )   (0.02 )
Net (loss) income per share $ (0.20 ) $ 0.02   $ (0.16 ) $ 0.04  
 
Weighted-average number of common shares
Basic 12,175,136 10,372,570 12,175,136 10,372,570
Diluted 12,175,136 11,409,259 12,175,136 11,409,259




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