Envela (US:ELA)2019-05-20 19:31Revenue Performance - Revenues for the three months ended March 31, 2019, increased by $1,963,658 or 14% to $16,019,530 compared to $14,055,872 in the same period in 2018[63] - Bullion/rare coin sales increased by 41%, contributing an additional $2,884,395 in revenue, while jewelry sales decreased by 14% due to gold price volatility[63] - The market for buying and selling scrap gold has been negative, impacting revenue and profitability, which the company aims to address through its marketing strategy[59] Profitability - Gross profit for the three months ended March 31, 2019, decreased by $283,524 to $2,218,482, with the gross margin declining to 13.8% from 17.8% in the prior year[64] Expenses - Selling, General and Administrative (SG&A) expenses decreased by $267,327 or 13% to $1,741,340 compared to $2,008,667 in the same period in 2018[65] - Interest expense decreased by $12,333 or 26% to $34,549 due to the continual pay down of accounts payable[67] Cash Flow and Operating Activities - Cash flows used in operating activities increased by $678,366 to $960,206 for the three months ended March 31, 2019, driven by a reduction in accounts payable and an increase in inventories[68] Capital Expenditures and Financial Condition - Capital expenditures are expected to total approximately $85,000 over the next twelve months, primarily for the new point-of-sale system and the buildout of additional space in Charleston, South Carolina[72] - The company has no off-balance sheet arrangements that could materially affect its financial condition[74] Inventory Management - The company plans to adjust inventory levels to meet seasonal demand and working capital requirements, with potential loans available if needed[73]