- DGSE announced in early October the grand opening of its third Bullion Express (“BE”) location in the highly trafficked Galleria Area of Dallas. Store traffic and revenues continue to exceed expectations at each respective location. The fourth BE location is scheduled to open in Arlington, Texas in early December. Leases have recently been signed for 2 additional BE locations in the upscale Highland Park area of Chicago and the Buckhead area of Atlanta. The Highland Park location is scheduled to open in mid-December, and the Buckhead location in January 2012. These two locations will represent DGSE’s initial presence in large new markets and will be larger than previous BE stores, allowing for expanded retail displays of unique one-of-a-kind jewelry pieces, diamonds, fine watches and rare coins in addition to providing immediate delivery of all precious metals products.
- DGSE completed its acquisition of 100 percent of Southern Bullion Trading, LLC (“SBT”), one of the largest precious-metals chains in the Southeast. In the coming quarters, DGSE plans to continue opening new SBT locations in targeted markets and enhancing SBT’s historical operations from a primary focus on purchasing used jewelry and scrap to offering two way markets in precious metals products and retail offerings of its product lines creating significant new revenue channels.
- On October 25, DGSE entered into a Debt Cancellation Agreement with NTR Metals, LLC, a Texas limited liability company, ("NTR"), whereby NTR agreed to forgive $2.5 million of intercompany bullion transaction related debt owed to NTR by DGSE in consideration for the grant of options to purchase 5,000,000 shares of DGSE common stock at an exercise price of $15.00 per share.
- Effective November 1, Dr. L.S. Smith voluntarily resigned from the positions of Chairman of the Board and Chief Executive Officer of DGSE for health reasons and entered into an Employment Agreement, pursuant to which Dr. Smith will provide consulting and advisory services to the Company. William H. Oyster, who has served as a member of DGSE’s Board of Directors and as President and Chief Operating Officer since January of 1990, was appointed to serve as Chairman of the Board and Chief Executive Officer immediately upon Dr. Smith's resignation. Since his election as a director and appointment as President and Chief Operating Officer in January 1990, Mr. Oyster has overseen the day-to-day operations of the Company.
DGSE Companies, Inc. wholesales retails and auctions jewelry, diamonds, fine watches, and precious metal bullion and rare coin products to domestic and international customers through its Dallas Gold and Silver Exchange, Charleston Gold and Diamond Exchange, Superior Gold & Diamond Exchange operations as well as through the internet. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities in Dallas and Euless, Texas, Charleston, South Carolina and Woodland Hills, California, the Company operates internet websites which can be accessed at www.dgse.com and through Superior Gold & Diamond Exchange website at www.sgde.com and Charleston Gold & Diamond Exchange at www.cgdeinc.com. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE web site at www.USBullionExchange.com. Wholesale customers can access our full vintage watch inventory through the restricted site at www.FairchildWatches.com. DGSE also purchases precious metals, rare coins, watches, diamonds and jewelry through www.AmericanGoldandSilverExchange.com, and over 900 supporting websites. DGSE also operates an independent website at www.dgsetreasurehunt.com that allows consumers to purchase one of a kind items collected throughout its system. DGSE BullionExpress are specialty precious metals stores currently located in Dallas, Texas and Woodland Hills, California.The Company is headquartered in Dallas, Texas and its common stock trades on NYSE Amex Exchange under the symbol “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. In addition to the results presented in accordance with Generally Accepted Accounting Principles throughout this press release, DGSE has presented non-GAAP financial measures such as EBITDA. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company's reported GAAP results, provide useful information to investors because they are an integral part of the Company's internal evaluation of operating performance. In addition, they are measures that DGSE uses to evaluate management's effectiveness. DGSE’s non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.
|Summary of Operations|
|3 Months Ended||3 Months Ended||9 Months Ended||9 Months Ended|
|September 30, 2011||September 30, 2010||September 30, 2011||September 30, 2010|
|Basic earnings per share||$||0.01||$||0.01||$||0.10||$||0.57|
|Diluted earnings per share||$||0.01||$||0.01||$||0.09||$||0.54|