Envela Corporation reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance across its two operating segments: Consumer and Commercial.
For the third quarter of 2024, Envela achieved sales of $46.9 million, a significant increase of 27.2% from $36.9 million in the same period of 2023. The Consumer segment contributed $33.8 million, up 25.6% from $26.9 million, while the Commercial segment saw sales rise by 31.5% to $13.1 million from $10.0 million. However, for the nine months ended September 30, 2024, total sales decreased by 4.2% to $132.1 million from $137.8 million in 2023, primarily due to a 9.0% decline in the Consumer segment, which reported $94.0 million in sales.
Gross margin for the third quarter increased to $11.5 million (24.4% of sales) from $9.7 million (26.4% of sales) in the prior year. For the nine-month period, gross margin improved to $33.2 million (25.1% of sales) compared to $31.9 million (23.2% of sales) in 2023. Operating income for Q3 2024 was $2.0 million, slightly up from $1.9 million in Q3 2023, while net income decreased marginally to $1.7 million from $1.7 million year-over-year. For the nine months, net income fell to $5.2 million from $5.8 million in 2023.
The company’s selling, general, and administrative expenses rose significantly, with Q3 2024 expenses totaling $9.0 million, up 21.3% from $7.4 million in Q3 2023. This increase was driven by higher operational costs associated with new store openings in Arizona and Texas. The Consumer segment's SG&A expenses surged by 51.7% to $3.9 million, while the Commercial segment's SG&A expenses increased by 5.0% to $5.1 million.
Envela completed the acquisition of Steven Kretchmer, Inc. for $100,000, with additional liabilities of $50,000, which contributed to a $300,000 decrease in goodwill during the reporting period. The company also repurchased 147,195 shares for $728,510 in Q3 2024, bringing total repurchases for the nine months to 500,624 shares at an average price of $4.69.
As of September 30, 2024, total assets increased to $77.4 million from $73.5 million at the end of 2023, while total stockholders' equity rose to $51.1 million from $48.3 million. The company reported a net cash position of $3.9 million, up from $2.9 million at the end of the previous fiscal year.
About Envela Corp
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