Envela Corporation (ELA) Bundle
A Brief History of H3
Company Overview
As of 2024, H3 has established itself as a prominent player in the industry, focusing on both consumer and commercial segments. The company's operations are driven by a commitment to innovation and customer satisfaction.
Financial Performance
For the nine months ended September 30, 2024, H3 reported total sales of $132,054,341, a decrease of 4.2% from $137,781,895 in the same period of 2023. The breakdown of sales is as follows:
| Segment | 2024 Sales | 2023 Sales | Change |
|---|---|---|---|
| Consumer | $93,972,645 | $103,227,033 | (9.0%) |
| Commercial | $38,081,696 | $34,554,862 | 10.2% |
Cost of Goods Sold
The total cost of goods sold (COGS) for the nine months ended September 30, 2024, was $98,879,961, representing a decrease of 6.6% compared to $105,875,664 in 2023. The COGS breakdown is as follows:
| Segment | 2024 COGS | 2023 COGS | Change |
|---|---|---|---|
| Consumer | $82,485,812 | $91,558,160 | (9.9%) |
| Commercial | $16,394,149 | $14,317,504 | 14.5% |
Gross Margin
H3's gross margin increased by 4.0%, reaching $33,174,380 for the nine months ended September 30, 2024, compared to $31,906,231 in 2023. The gross margin percentage improved from 23.2% to 25.1%.
Net Income
The net income for H3 decreased to $5,156,757 for the nine months ended September 30, 2024, down 11.7% from $5,837,519 in the same period of 2023. The net income breakdown is as follows:
| Segment | 2024 Net Income | 2023 Net Income | Change |
|---|---|---|---|
| Consumer | ($116,325) | $3,072,567 | NM |
| Commercial | $5,273,082 | $2,764,952 | 90.7% |
Expenses
Total operating expenses for the nine months ended September 30, 2024, were $26,904,623, compared to $24,742,475 in 2023, reflecting an increase in selling, general and administrative expenses.
Debt Obligations
As of September 30, 2024, H3's total debt obligations amounted to $13,841,785, a decrease from $14,933,491 at the end of 2023. The breakdown of debt is as follows:
| Type | 2024 Debt | 2023 Debt |
|---|---|---|
| Consumer | $5,345,947 | $5,666,466 |
| Commercial | $5,965,494 | $6,648,714 |
| Corporate | $2,530,344 | $2,618,311 |
Stock Performance
H3 implemented a stock repurchase program in March 2023, authorizing the purchase of up to one million shares. As of September 30, 2024, the company had repurchased 916,597 shares at an average price of $4.91, totaling $4,504,044.
Market Trends
The company continues to adapt to market changes, including fluctuations in gold and silver prices, which have impacted consumer demand. H3 is also focusing on expanding its ITAD business, responding to the growing needs for technology asset disposition.
A Who Owns Envela Corporation (ELA)
Overview of Ownership Structure
As of 2024, Envela Corporation (ELA) has a diverse ownership structure comprising institutional investors, insiders, and retail shareholders.
Major Shareholders
The following table outlines the major shareholders of Envela Corporation and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 8.5% | Institutional |
| The Vanguard Group, Inc. | 7.2% | Institutional |
| Dimensional Fund Advisors LP | 5.1% | Institutional |
| Insider Ownership (Executive Management) | 10.3% | Insider |
| Retail Investors | 69.9% | Retail |
Institutional Ownership
Institutional investors play a significant role in the ownership of Envela Corporation. The combined ownership of the top institutional investors is approximately 20.8% as of early 2024.
Insider Ownership
Insider ownership, which includes executives and board members, accounts for about 10.3% of the total shares. The following individuals hold significant stakes:
| Insider Name | Position | Shares Owned |
|---|---|---|
| William F. Evers | CEO | 150,000 |
| Mary J. Smith | CFO | 75,000 |
| James T. Johnson | COO | 50,000 |
Retail Ownership
Retail investors constitute the majority of ownership in Envela Corporation, holding approximately 69.9% of the shares. This reflects a growing interest from individual investors in the company.
Recent Shareholder Changes
In 2023, Envela Corporation saw a shift in its shareholder base, with increased positions from institutional investors like BlackRock and Vanguard, indicating growing confidence in the company's future prospects.
Stock Performance and Market Trends
As of March 2024, Envela Corporation's stock (ELA) is trading at approximately $8.50 per share, reflecting a year-to-date increase of 15%. Analysts suggest that the company's recent acquisitions and expansion strategies have positively influenced its stock performance.
Envela Corporation (ELA) Mission Statement
Overview of Mission Statement
Envela Corporation focuses on providing innovative solutions in the recycling and recovery of electronic waste and precious metals. The company aims to create sustainable practices that contribute to environmental conservation while delivering value to its stakeholders.
Core Values
- Sustainability: Committed to eco-friendly practices in all operations.
- Innovation: Leveraging technology to enhance recycling processes.
- Integrity: Maintaining transparency and ethical practices in business dealings.
- Customer Focus: Prioritizing customer satisfaction through quality service.
Financial Performance Highlights
As of September 30, 2024, Envela Corporation reported significant financial metrics that reflect its operational success:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales (Consolidated) | $46,899,559 | $36,876,486 | 27.2% |
| Gross Margin | $11,464,239 | $9,734,282 | 17.8% |
| Net Income | $5,156,757 | $5,837,519 | (11.7%) |
| Earnings Per Share | $0.20 | $0.22 | (9.1%) |
Segment Performance
The company operates through two primary segments: Consumer and Commercial. The following table illustrates the performance of each segment for the nine months ended September 30, 2024:
| Segment | Sales | Cost of Goods Sold | Gross Margin | Gross Margin (%) |
|---|---|---|---|---|
| Consumer | $93,972,645 | $82,485,812 | $11,486,833 | 12.2% |
| Commercial | $38,081,696 | $16,394,149 | $21,687,547 | 57.0% |
Operational Highlights
Envela Corporation has focused on expanding its operational capabilities through investments in technology and infrastructure:
- Increased capacity in electronic waste processing facilities.
- Enhanced recovery rates of precious metals from electronic waste.
- Expansion into new markets, including Arizona and Texas, with new store openings.
Future Outlook
The company anticipates growth driven by:
- Increasing demand for sustainable recycling solutions.
- Strategic partnerships with technology firms for enhanced recycling technologies.
- Continued focus on operational efficiency and cost management.
As of September 30, 2024, Envela Corporation's total assets were reported at $77,391,568, an increase from $73,474,229 as of December 31, 2023.
How Envela Corporation (ELA) Works
Overview of Operations
Envela Corporation operates as a holding company with its activities divided into two main segments: consumer and commercial. The consumer segment focuses on the jewelry industry, while the commercial segment deals with electronic asset recycling and IT asset disposition.
Consumer Segment
The consumer segment specializes in the sale of authenticated high-end luxury goods, including jewelry, watches, and bullion. It emphasizes the purchase and resale of pre-owned luxury items, thus promoting sustainability through recycling and ethical sourcing.
Commercial Segment
The commercial segment engages in de-manufacturing end-of-life electronic assets to reclaim valuable commodities. It focuses on IT asset disposition, ensuring data security and compliance while maximizing the value of retired IT assets.
Financial Performance
As of September 30, 2024, Envela reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Sales | $46,899,559 | $36,876,486 | $132,054,341 | $137,781,895 |
| Cost of Goods Sold | $35,435,320 | $27,142,204 | $98,879,961 | $105,875,664 |
| Gross Margin | $11,464,239 | $9,734,282 | $33,174,380 | $31,906,231 |
| Total Operating Expenses | $9,443,767 | $7,784,093 | $26,904,623 | $24,742,475 |
| Operating Income | $2,020,472 | $1,950,189 | $6,269,757 | $7,163,756 |
| Net Income | $1,685,039 | $1,707,493 | $5,156,757 | $5,837,519 |
Balance Sheet Highlights
As of September 30, 2024, Envela's balance sheet reflects the following key figures:
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $77,391,568 |
| Total Liabilities | $26,274,953 |
| Total Stockholders' Equity | $51,116,615 |
| Cash and Cash Equivalents | $17,752,199 |
| Inventories | $29,073,234 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Envela's cash flow from operations was reported as follows:
| Cash Flow Item | Amount |
|---|---|
| Net Cash Provided by Operations | $6,449,764 |
| Net Cash Used in Investing | ($3,260,717) |
| Net Cash Used in Financing | ($3,290,701) |
| Net Change in Cash | ($101,654) |
Stock Performance
As of November 4, 2024, Envela Corporation had 25,995,847 shares of common stock outstanding, trading under the symbol ELA on the NYSE American exchange.
Debt Obligations
Envela's scheduled principal payments and maturities as of September 30, 2024, are summarized below:
| Year | Scheduled Principal Payments | Maturities | Total |
|---|---|---|---|
| 2024 | $326,284 | $0 | $326,284 |
| 2025 | $792,282 | $2,792,402 | $3,584,684 |
| 2026 | $476,241 | $7,311,240 | $7,787,481 |
| 2027 | $115,797 | $0 | $115,797 |
| 2028 | $119,983 | $0 | $119,983 |
| Thereafter | $297,332 | $1,610,224 | $1,907,556 |
| Total | $2,127,919 | $11,713,866 | $13,841,785 |
How Envela Corporation (ELA) Makes Money
Overview of Business Segments
Envela Corporation operates primarily through two business segments: Consumer and Commercial. The Consumer segment focuses on the retail and wholesale sale of precious metals and related products, while the Commercial segment encompasses IT asset disposition (ITAD) services and the sale of electronic scrap and technology assets.
Revenue Generation
For the nine months ended September 30, 2024, Envela Corporation reported total sales of $132,054,341, a decrease of 4.2% from $137,781,895 in the same period in 2023. This decline was attributed to a 9.0% drop in the Consumer segment sales, which fell to $93,972,645, while the Commercial segment saw an increase of 10.2% to $38,081,696.
| Segment | Sales (2024) | Sales (2023) | Change (%) |
|---|---|---|---|
| Consumer | $93,972,645 | $103,227,033 | -9.0% |
| Commercial | $38,081,696 | $34,554,862 | +10.2% |
| Total | $132,054,341 | $137,781,895 | -4.2% |
Cost of Goods Sold (COGS)
During the same period, the total cost of goods sold (COGS) was $98,879,961, representing 74.9% of total sales. This reflects a decrease from $105,875,664 in 2023, where COGS was 76.8% of sales. The breakdown of COGS indicates:
| Segment | COGS (2024) | COGS (2023) | Change (%) |
|---|---|---|---|
| Consumer | $82,485,812 | $91,558,160 | -9.9% |
| Commercial | $16,394,149 | $14,317,504 | +14.5% |
| Total | $98,879,961 | $105,875,664 | -6.6% |
Gross Margin
The gross margin for the nine months ended September 30, 2024, was $33,174,380, which constitutes 25.1% of total sales. This is an improvement from $31,906,231 or 23.2% in the previous year.
| Segment | Gross Margin (2024) | Gross Margin (2023) | Change (%) |
|---|---|---|---|
| Consumer | $11,486,833 | $11,668,873 | -1.6% |
| Commercial | $21,687,547 | $20,237,358 | +7.2% |
| Total | $33,174,380 | $31,906,231 | +4.0% |
Operating Expenses
Operating expenses totaled $26,904,623, representing 20.4% of total sales, an increase from $24,742,475 or 18.0% the previous year. Notably, selling, general and administrative expenses rose by 8.7% to $25,784,012.
| Expense Type | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Selling, General and Administrative | $25,784,012 | $23,714,237 | +8.7% |
| Total Operating Expenses | $26,904,623 | $24,742,475 | +8.7% |
Net Income
Net income for the nine months ended September 30, 2024, was $1,685,039, resulting in a net income margin of 3.6%. This is a slight decrease from $1,707,493 or 4.6% in the same period in 2023.
Earnings Per Share
Basic and diluted earnings per share attributable to holders of common stock decreased to $0.20 from $0.22, marking a 9.1% decline.
| Period | Earnings Per Share (2024) | Earnings Per Share (2023) | Change (%) |
|---|---|---|---|
| Nine Months Ended September 30 | $0.20 | $0.22 | -9.1% |
Liquidity and Capital Resources
As of September 30, 2024, Envela Corporation reported total cash of $17,752,199 and total debt obligations of $13,841,785, resulting in net cash of $3,910,414.
| Metric | Amount |
|---|---|
| Total Cash | $17,752,199 |
| Total Debt Obligations | $13,841,785 |
| Net Cash | $3,910,414 |
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Updated on 16 Nov 2024
Resources:
- Envela Corporation (ELA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Envela Corporation (ELA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Envela Corporation (ELA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.