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 Companies, Inc. Reports Fourth Quarter And 2012 Full Year Results

Stocks in this article: DGSE

DGSE Companies, Inc. (NYSE MKT: DGSE) (the “Company”) announced today the filing of its Consolidated Financial Statements for the quarter and year ended December 31, 2012.

James Vierling, Chief Executive Officer and Chairman of the Board stated, “2012 was an important year for DGSE Companies, Inc., where we executed on several key initiatives to regain integrity in our financial disclosures and refocus our efforts on our operational objectives and growth opportunities. We are pleased to announce that income from continuing operations, net of one-time expenses, in the fourth quarter of 2012 was $763,716. This means that in the second half of the year our income from continuing operations, net of one-time expenses, exceeded $1.7 million. During 2012, particular emphasis was placed on improving our financial controls, processes and procedures and I am extremely pleased with the work our new CFO, Brett Burford, and his team have done. We are now confident in our ability to accurately and credibly report our financial condition to current and prospective shareholders.”

Vierling continued, “With most of the distractions and expenses of last year behind us, our expectation is that profitability in 2013 will be significantly improved versus 2012.”

Income from continuing operations, net of one-time expenses, is considered a Non-GAAP Measure, and is reconciled to income from continuing operations in the accompanying table.

2012 Summary

  • Income from continuing operations in second half of year, net of one-time expenses exceeded $1.7 million
  • Restructured entire senior management and accounting group
  • Completed major restatement of the Company’s historical financials
  • Significantly improved the Company’s financial controls, processes and procedures
  • Engaged new independent auditors
  • Regained active trading status with the NYSE MKT exchange
  • Integrated the Southern Bullion Trading (“SBT”) entity into the Company
  • Restructured and increased the Company’s credit line
  • Opened 8 new retail locations while closing 3 historically underperforming locations
  • Converted SBT locations from focusing only on scrap buying activity, to focusing on buying and selling of all DGSE product lines
  • Introduced DGSE manufactured jewelry line, enabling us to better utilize the Company’s diamond inventory while increasing margins on jewelry sales
  • Continued to strengthen the relationship with majority shareholder NTR, now part of Elemetal, LLC

Year End 2012 Results

Revenues decreased by $11,282,376 or 8% in Fiscal 2012, to $127,876,610, compared to $139,158,986 in the prior year. This decrease was primarily the result of an industry-wide reduction in bullion demand, which significantly affected our bullion sales, driving a $7,913,158 or 11% decrease in bullion sales. This decrease was partially offset by additional sales related to the acquisition of SBT stores, which occurred in September of 2011.

1 of 7

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 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

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