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DGSE Companies, Inc. Announces Record Revenues of $10,239,803 for Fiscal First Quarter of 2007; Net Income for the Quarter $182,415 or $.04 Per Share

Posted on: Monday, 7 May 2007, 09:00 CDT

DGSE Companies, Inc. (NASDAQ: DGSE), which wholesales, retails and auctions fine watches, jewelry, diamonds, precious metal and rare coin products via traditional and Internet channels, today announced operating results for the quarter ended March 31, 2007.

Earnings

 --  Basic and diluted earnings per share for the first quarter of 2007     were $.04 versus basic and diluted earnings per share of $.03 per share in     the first quarter of 2006. Operating income increased to $383,627 versus     $301,576 in 2006.      

Revenues

 --  Total Revenues for first quarter of 2007 were $10,239,803. This     represents a 5.3 percent increase over Fiscal 2006 first quarter revenues     of $9,720,997.      

Performance Metrics & Liquidity

 --  EBITDA (earnings before interest, taxes, depreciation and     amortization) was $433,407 or $.09 per share in the First Quarter of 2007.     This represents a 27.1 percent increase over $340,876 or $.07 per share in     the equivalent quarter of 2006.      --  Shareholders' equity at the end of the First Quarter of 2007 was     $6,859,775 or $1.40 per share. This represents an increase of 10.2 percent     versus $6,226,482 or $1.27 per share in the equivalent quarter of 2006.      

"The First Quarter of 2007 was eventful for DGSE," noted William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, "On January 6, 2007 we, subject to a management agreement, took over operational control of Superior Galleries, Inc. (OTCBB: SPGR). This step was taken to facilitate the anticipated closing of the acquisition of the company after the shareholders of both enterprises vote on the transaction on May 22, 2007. Our earnings continue to expand in our core operations despite the increased infrastructure costs required to handle the significantly higher levels of activity anticipated for the balance of the fiscal year. We continue to explore additional interesting opportunities for expanding our core businesses. Our financial metrics continue to improve with shareholders' equity growing, revenues expanding and our revenue sources continuing to diversify."

DGSE Companies, Inc. wholesales and retails jewelry, diamonds, fine watches and precious metal bullion products and rare coins to domestic and international customers through its Dallas Gold and Silver Exchange and Charleston Gold and Diamond Exchange subsidiaries as well as through the Internet. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities, the Company operates live Internet auctions which can be accessed at www.dgse.com. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE web site at www.USBullionExchange.com. Wholesale customers can access our full vintage watch inventory through the restricted site at www.FairchildWatches.com.

The Company is headquartered in Dallas, Texas and its common stock trades on The Nasdaq Stock Market(R) under the symbol "DGSE."

This press release includes statements which may constitute "forward-looking" statements, usually containing the words "believe,""estimate,""project,""expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. In addition to the results presented in accordance with Generally Accepted Accounting Principles throughout this press release, DGSE has presented non-GAAP financial measures as EBITDA. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company's reported GAAP results, provide useful information to investors because they are an integral part of the Company's internal evaluation of operating performance. In addition, they are measures that DGSE uses to evaluate management's effectiveness. DGSE's non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.

                       DGSE COMPANIES, INC.                      Summary of Operations                     Quarter ended March 31,                            2007                 2006 Revenue                $ 10,239,803          $ 9,720,997 Net Income               $  182,415            $ 148,480 Basic and Diluted Earnings Per Share            $ .04                $ .03 

 For further information, please contact:  William H. Oyster President and COO DGSE (800) 527-5307  

SOURCE: DGSE Companies, Inc.

Source: MARKET WIRE

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