News Column

Spectrum Group International, Inc. Announces Fiscal Second Quarter 2014 Financial Results

March 8, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Spectrum Group International, Inc. (OTCQB:SPGZ) announced financial results for its second quarter of fiscal year 2014, which ended December 31, 2013. Highlights for the Three and Six Months Ended December 31, 2013: Total revenue of $1.51 billion and $3.04 billion for the three and six months ended December 31, 2013.

Trading segment revenue of $1.48 billion and $2.98 billion for the three and six months ended December 31, 2013

Collectibles segment revenue of $25.4 million and $68.1 million for the three and six months ended December 31, 2013

Gross profit of $11.4 million and $24.7 million for the three and six months ended December 31, 2013

Pre-tax loss from continuing operations of $2.8 million and $1.2 million for the three and six months ended December 31, 2013

Revenues for the three months ended December 31, 2013, decreased $226.8 million, or 13.1%, to $1.51 billion from $1.74 billion in 2012. Revenues for the six months ended December 31, 2013, decreased $356.8 million, or 10.5%, to $3.04 billion from $3.40 billion in 2012. Our Trading segment revenues decreased $204.5 million, or 12.1%, for the three months ended December 31, 2013, and decreased $326.0 million, or 9.9%, for the six months ended December 31, 2013. Our Collectibles segment revenues decreased $22.2 million, or 46.6%, for the three months ended December 31, 2013, and decreased $30.8 million, or 31.1%, for the six months ended December 31, 2013.

Our gross profit for the three months ended December 31, 2013, decreased $0.1 million, or 0.4%, to $11.4 million, or a gross profit margin of 0.8%, from $11.5 million, or a gross profit margin of 0.7% in 2012. We experienced an increase in gross profit of $1.5 million, or 23.2%, to $8.0 million, or a gross profit margin of 0.5%, in our Trading segment, while our Collectibles segment gross profit decreased by $1.6 million, or 31.6%, to $3.4 million, or a gross profit margin of 13.3%, for the three months ended December 31, 2013. Our gross profit for the six months ended December 31, 2013, increased $3.1 million, or 14.3%, to $24.7 million, or a gross profit margin of 0.8%, from $21.6 million, or a gross profit margin of 0.6% in 2012.

General and administrative expenses increased $2.2 million, or 43.2%, to $7.3 million in the three months ended December 31, 2013, from $5.1 million in 2012. For the six months ended December 31, 2013 general and administrative expenses increased $2.5 million, or 24.2%, to $12.7 million from $10.2 million in 2012. The increase in both periods is primarily attributable to additional professional fees and outside consultant expenses incurred in connection with our proposed spin-off transaction, as disclosed in Note 20 of our Form 10-Q as well as IT costs incurred in the period to implement a new ERP system.

Net loss attributable to SGI increased $4.6 million, to $4.4 million in the three months ended December 31, 2013, from a net income of $0.2 million in 2012. For the six months ended December 31, 2013, net loss attributable to SGI increased $2.1 million, or 153.0%, to $3.4 million from a loss of $1.4 million in 2012. The increase in net loss for the three months ended December 31, 2013, is due primarily to decreased operating income in our Collectibles segment of $1.5 million and increases in corporate operating expenses of $1.6 million. The increase in net loss for the six months ended December 31, 2013, is due primarily to increases in corporate operating expenses of $1.6 million and reduced interest income of $1.5 million.

Basic earnings (loss) per share from continuing operations decreased $0.15 to $(0.14) for the three months ended December 31, 2013, from $0.01 in 2012, and diluted earnings per share from continuing operations decreased $0.15 to $(0.14) from $0.01 in 2012. For the six months ended December 31, 2013, basic earnings per share from continuing operations decreased $0.09 to $(0.11) from a loss of $(0.02) while diluted earnings per share from continuing operations decreased by $0.09 to $(0.11) from a loss of $(0.02) in 2012. The change in both basic and diluted earnings per share was primarily due to the increase in our net loss from the factors mentioned above.

Keywords for this news article include: Finance, Spectrum Group International Inc.

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Source: Investment Weekly News


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