DALLAS, TX / ACCESSWIRE / March 20, 2024 / Envela Corporation(NYSE American:ELA) ("Envela" or the "Company"), today reported financial results for its fourth quarter and full year ended December 31, 2023. The Company reported annual revenue of $171.7 million and annual earnings per diluted share of $0.27. For the quarter ended December 31, 2023, the Company reported revenue of $36.7 million and quarterly earnings per diluted share of $0.05.
Management Commentary
Consumer Division
"Despite a significant decline in global bullion demand in the latter half of 2023, our performance was exceptional, highlighting Envela's capability to adjust swiftly to a changing market landscape. The Company's results demonstrate the strength of our business model and the adaptability of our operating entities in managing a fluctuating market, enabling us to remain profitable in slower market conditions," said John Loftus, Envela's CEO.
"In 2023, we made considerable progress strengthening Envela's position as a leading provider of re-commerce solutions to both businesses and consumers. During the year, we further invested in our business in anticipation of our 2024 store expansion. As a result, operating expenses increased, including for recruiting and training specialized staff for upcoming store launches. Demand for jewelry continues to be strong, and we anticipate our Consumer Division will see an improved bottom line in 2024, driven by the opening of new stores," Loftus added.
"As we move into 2024, our excitement builds as we anticipate connecting with new customers through the Company's strategic retail expansion. Announced last year, we planned to open at least 3 new retail locations in at least 2 new metro areas and double our current footprint from 7 to 14 stores by the end of 2024. The opening of three new Arizona stores marks the launch of this strategy and keeps us on track for 7 new stores by year's end," Loftus remarked.
"We believe in great value and providing our customers with comprehensive information and complete transparency. This engenders loyalty, which is key to our business success. And our expansion underscores Envela's commitment to providing a next-level experience to our customers, recognizing that many prefer visiting a physical store for personalized advice before selling their luxury preowned items," concluded Loftus.
Commercial Division
"In 2023, we maintained our close partnerships with some of the world's largest multinational corporations and many of America's leading retailers and technology companies to meet their re-commerce requirements. With our focus on building lasting customer relationships, we are optimistic about Envela's role as an essential partner for our clients as their needs evolve. Our dedication to the circular economy-prioritizing the reuse, repair, refurbishment, and recycling of materials and products-guides our mission. By extending products' lives, we not only aid the environment but also enable consumers to purchase goods at more affordable prices," said Loftus.
"Envela is actively exploring investment opportunities to expand its geographical footprint and market penetration. We believe the Company is well positioned to take advantage of rising trends that are fueling demand for preowned goods," added Loftus.
Fourth Quarter and Full Year 2023 Financial Highlights
Envela will report more complete earnings in its Form 10-K
Fourth Quarter and Full Year 2023 Consolidated Operating Highlights
Fourth Quarter Consumer Division Operating Highlights
Fourth Quarter Commercial Division Operating Highlights
Balance Sheet, Cash Flow and Liquidity
Share Repurchase Program
During the quarter ended December 31, 2023, the Company repurchased 191,342 shares of common stock at a cost of $837 thousand. Since the beginning of the share repurchase program in March of 2023, Envela has spent more than $2.1 million to purchase 415,973 shares of common stock under the 1,000,000 share repurchase program authorized through March 31, 2026.
About EnvelaEnvela 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. We execute with passion and meticulous attention to detail, focusing on our strengths rather than trying to be everything to everyone.
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.
Cautionary Statement Regarding Forward-Looking Information
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995's safe harbor provisions, including statements regarding future events and developments; potential expansions, purchases and acquisitions; potential future success of business lines and strategies; and management's expectations, beliefs, plans, estimates and projections relating to the future. Words such as "believes," "anticipates," "plans," "may," "intends," "will," "should," "expects" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management's then current views and assumptions and, as a result, are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC. 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
SOURCE:Envela Corporation
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