DGSE Companies, Inc. Announces Revenues of $6,717,812 for the Fiscal First Quarter of 2005; Operating Income Per Share of $.06; Income from Continuing Operations $.03 Per Share.DALLAS -- DGSE Companies DGSE Companies Inc. are a leading precious stones and metals wholesaler and retailer in the Southwestern United States, headquartered in Dallas, Texas.[1][2] Originally known as American Pacific Mint Inc. , Inc. (Nasdaq:DGSE DGSE Direccion General de Seguridad y Emergencias DGSE Direction Générale de Sécurité Extérieure (French Equivalent of MI6 and CIA) DGSE Director General Spectrum Engineering Branch (Canada) ), which wholesales, retails and auctions fine watches, jewelry, diamonds and precious metal and rare coin products via traditional and Internet channels, today announced operating results for the year ended March 31, 2005. Earnings --Basic and diluted operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the fiscal first quarter were $.03 versus $.04 per share in the equivalent period in fiscal 2004. During the first quarter of 2005 reported earnings include a direct expense for substantially all of the start-up costs of the opening of two addition locations for our Pay Day loan activities in New Mexico. --Operating income before discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. was $299,252. In fiscal 2004 the Company reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $401,893. Revenues --Total Revenues for the Fiscal First Quarter of 2005 were $6,717,812.Revenues for the equivalent quarter of 2004 was $6,799,082. Performance Metrics & Liquidity --The Company's operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 4.5 percent of revenues for the quarter ended March 31, 2005 compared to 5.9 percent for 2004. The change in operating margin reflects an increase in the company's precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. component which has a lower margin than the Company's jewelry business and other businesses. --EBITDA (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
--Shareholders equity at the end of the first quarter of 2005 was $5,741,150 or $1.17 per share. This represents an increase of 2.2 percent versus $5,618,244 or $1.14 per share. "The fiscal first quarter marked important developments for DGSE," noted William H. Oyster, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of DGSE Companies, Inc. Mr. Oyster continued, "We expanded our activities in the Pay Day loan area and now have three stores in New Mexico. We expect to continue to expand this operation in States with permissive legislation and will function as a direct lender. Additionally, we have materially increased the capabilities of USBullionExchange.com and our customers can now enter and execute orders in precious metals products online. The rare coin business continues to enjoy robust growth and we have high expectations about the future. We continue to explore interesting opportunities in the Pawn business. We expect 2005 to see expansion of our revenues and further growth in higher margin business components." DGSE Companies, Inc. wholesales and retails jewelry, diamonds, fine watches and precious metal bullion products and rare coins to domestic and international customers through its Dallas Gold and Silver Exchange and Charleston Gold and Diamond Exchange subsidiaries and 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, the Company operates live Internet auctions which can be accessed at www.dgse.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. The Company is headquartered in Dallas, Texas and its common stock trades on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (R) 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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.
SUMMARY OF OPERATIONS
THREE MONTHS ENDED
MARCH 31,
2005 2004
---- ----
REVENUE $ 6,717,812 $ 6,799,082
NET INCOME 150,565 185,699
EARNINGS PER SHARE .03 .04
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,913,290 4,913,290
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