Prior to the charge to discontinued operations, the Company had a loss from continuing operations of $428,000 for the third quarter of 2012. Net loss after discontinued operations for the quarter was $536,000.
Excluding discontinued operations and one-time expenses associated with the restatement of our financial statements the Company would have generated a profit of $1.0 million for the quarter.
Year to Date 2012 Results
For the nine months ended September 30, 2012 sales decreased by $7.2 million, or 7.4%, to $90.4 million, as compared to $97.6 million during the same period in 2011. The decrease was primarily driven by significantly lower sales of bullion, with moderate decreases across other segments. These decreases were partially offset by the acquisition of SBT in September of 2011, which added revenues of $22.3 million during the nine months ended September 30, 2012, an increase of $19.0 million over the same period in 2011.
For the nine months ended September 30, 2012, cost of sales decreased by $14.3 million, or 16.3%, to $73.4 million, as compared to $87.7 million during the same period in 2011. Cost of sales as a percentage of revenue decreased from 89.9% in 2011 to 81.2% in 2012 primarily due to higher margins on the SBT business, as well as reduced sales of bullion, which carry significantly lower margins than other categories.
SG&A expenses increased by $10.3 million, or 134%, to $18.0 million, as compared to $7.7 million during the same period in 2011. $5.4 million of this increase is due to the addition of the SBT stores, while the opening of four new non-SBT stores added $2.2 million in the current year, due to increased advertising, salaries, payroll taxes, building rent and other costs. Year to date, the Company has incurred $2.7 million in professional fees associated with the restatement of our financial statements, and the related SEC investigation.