DALLAS, TX / ACCESSWIRE / November 8, 2023 / Envela Corporation(NYSE American:ELA) ("Envela" or the "Company") today reported financial results for its third quarter ended September 30, 2023. The Company posted revenue for the third quarter of $36.3 million, and quarterly earnings per diluted share of $0.06.
John Loftus, Chairman and CEO of Envela said, "During the quarter we made progress advancing our long-term growth strategy, particularly on the consumer side of our business where we executed a key strategic acquisition and added additional strength to our management team. Revenue decreased in the quarter primarily due to the timing of certain recycling orders from major electronics companies as well as reduced sales of lower margin goods on the consumer side of our business. That said, margins improved sequentially reflecting both a deliberate focus on revenue mix and cost discipline.
"We believe that success should be measured by the value created for shareholders over the long term, and we are committed to investing prudently but aggressively to grow our infrastructure, brand, and customer base as we build a stronger business with enhanced scale. To that end, we are diversifying our retail portfolio, with our robust balance sheet enabling the acquisition of jewelry manufacturer Steven Kretchmer, Inc. during the quarter which broadens our offerings in the luxury jewelry space. We are targeting the addition of four new stores in 2024. We do not expect our growth to be linear, but our end markets have strong tailwinds, and we are optimistic about the long-term growth opportunity for Envela."
Third Quarter 2023 Consolidated Operating Highlights
Consumer Division Operating Highlights
Commenting on the Consumer Division, Mr. Loftus stated, "I'm confident that our retail expansion will generate strong returns for our investors over time, particularly given the uncertain economy and unprecedented levels of consumer debt driving more consumers to sell their unwanted jewelry and bullion products. The new store we opened up in Frisco, TX a few years ago has performed exceptionally well, and our goal is to replicate its performance at the new stores planned for the Phoenix market. Furthermore, we continue to methodically expand our online presence with increased SKUs during the quarter primarily for bullion, and over time we plan to expand SKUs for our pre-owned jewelry as well as our exclusive jewelry lines."
Commercial Division Operating Highlights
Commenting on the Commercial Division, Mr. Loftus stated, "Our Commercial Division has long-term relationships with some of the leading technology companies in the world. Although we see fluctuations in volumes -- particularly given we are still a relatively small company -- our long-term outlook remains positive given strong industry tailwinds. The global e-waste problem continues to worsen due to the shortening life cycles for electronics and the push for new technologies with increased efficiency. In turn, this provides a tremendous opportunity for Envela to continue to be a re-commerce partner of choice."
Balance Sheet,Cash Flow and Liquidity
Share Repurchase Program
During the quarter ended September 30, 2023, the Company repurchased 197,210 shares of common stock at an average cost of $5.70. Since the beginning of the share repurchase program in March of 2023, Envela has spent more than $1.3 million to purchase 224,631 shares of common stock under the 1,000,000 share repurchase program authorized through March 31, 2026.
About Envela
Envela a leading provider of re-commerce services at the forefront of the circular economy. The company is comprised of primarily two key business segments: Consumer and Commercial. The Consumer segment operates retail stores and online sites that offer premium brands and luxury hard assets, while the Commercial segment provides personalized re-commerce solutions to meet the needs of various clients, including Fortune 500 companies. At Envela, we execute with passion, and with meticulous attention to detail, trying not to be all things to all people, but remaining focused on what we know best.
At Envela, we Reuse, Recycle, and Reimagine. To learn more, visit Envela.com and follow our social media channels on Twitter, Instagram, Facebook, and LinkedIn.
Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, including statements regarding acquisitions, financial outlook, and the potential future success of business lines and strategies. 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, market conditions and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.
Investor Relations Contact:John Nesbett/ Jennifer Belodeauir@envelacorp.com972-587-4030
Envela CorporationCondensed Consolidated Statements of Operations
The accompanying notes are an integral part of these condensed consolidated financial statements.
Envela CorporationCondensed Consolidated Balance Sheets
The accompanying notes are an integral part of these condensed consolidated financial statements.
Envela CorporationCondensed Consolidated Statement of Cash Flows
The accompanying notes are an integral part of these condensed consolidated financial statements.
SOURCE: Envela Corporation
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