Texas-Based ECHG Subsidiary Doubled Revenues in 2020

SEATTLE (Scrap Monster): Dallas, Texas-based Envela Corporation reported financial results for the fourth quarter and full year ended December 31, 2020. The company owns the Dallas Gold and Silver Exchange (DGSE) and the Echo Consolidated Holdings Group (ECHG) subsidiaries. The ECHG subsidiary operates three Carrolton-based companies, an e-waste recycling firm, an ITAD service provider and a device remarketing company.

The ECHG subsidiary posted revenue of $5.9 million, accounting for 21% of total revenue, during Q4 2020. The revenues remained more or less flat. The ECHG resale revenue surged from $3.6 million a year before to $3.8 million during the quarter. However, the recycled material sales dropped from $2.3 million to $2.1 million. The recycled materials gross profit recorded marginal decline from $0.7 million to $0.6 million.

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For the full year 2020, the revenue related to ECHG subsidiary was $28.3 million, nearly double of prior year’s $14.5 million. The subsidiary’s resale revenue and recycled-material sales were $19.4 million and $8.9 million respectively. The ECHG gross profit surged higher considerably from $7.3 million in 2019 to $12.7 million in 2020.

John Loftus, Chairman and CEO, Envela Corporation said that the company finished the year with strong financial results and continued service improvement, despite challenges posed by the pandemic.