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DGSE Companies Inc. Reports Operating Results (10-Q)

November 13, 2012 | About:
10qk

10qk

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DGSE Companies Inc. (DGSE) filed Quarterly Report for the period ended 2012-09-30.

Dgse Companies, Inc. has a market cap of $90.47 million; its shares were traded at around $0 with a P/E ratio of 17.28 and P/S ratio of 0.6.

Highlight of Business Operations:

Sales. Sales decreased by $15,039,586, or 34%, during the three months ended September 30, 2012 to $28,975,063, as compared to $44,014,649 during the same period in 2011. The decrease was primarily driven by a decrease in sales of bullion, with moderate decreases also across other segments. In addition, revenue from discontinued operations for Superior Galleries, Inc. (“Superior Galleries”) were excluded in the amount of $59 and $3,513,557 for the periods ended September 30, 2012 and 2011, respectively. These decreases were partially offset by the acquisition of SBT, Inc. (“SBT”) in September 2011, which added revenues of $7,824,759 during the three months ended September 30, 2012, an increase of $4,537,538 over the same period in 2011.

Cost of Sales. For the three months ended September 30, 2012, cost of sales decreased by $17,007,853, or 43% to $22,787,722, as compared to $39,795,575 during the same period in 2011, driven by lower sales. Cost of sales as a percentage of revenue decreased from 90.4% in 2011 to 78.6% in 2012 primarily due to the higher margins on the newly-acquired SBT business, as well as reduced sales of bullion which carry significantly lower margins than other categories.

Sales. Sales decreased by $7,253,309, or 7.4%, to $90,374,423 during the nine months ended September 30, 2012, as compared to $97,627,732 during the same period in 2011. This decrease was primarily due to the decrease in sales of scrap, bullion and rare coins, offset by the revenues from the acquisition of SBT. Overall, SBT added revenue of $22,247,355 for the nine months ended September 30, 2012 compared to $3,287,222 in the same period of the prior year.

Cost of Sales. For the nine months ended September 30, 2012, cost of sales decreased by $14,293,272, or 16.3%, to $73,447,142, as compared to $87,740,414 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 the higher margins on the newly acquired SBT business, as well as reduced sales of bullion, which carry significantly lower margins than other categories.

Read the The complete Report

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