BOCA RATON, Fla., Aug. 20, 2009 (GLOBE NEWSWIRE) -- Money4Gold Holdings, Inc. (OTCBB:MFGD), the leading public company offering cash to consumers for unwanted gold and precious metal jewelry, is pleased to report financial results for the second quarter ended June 30, 2009.
During the second quarter, Money4Gold continued to provide consumers with an easy and convenient way for them to convert unwanted jewelry to cash. Through increased online and television advertising, direct marketing and its mail-order system, Money4Gold was able to increase its purchases of unwanted items containing precious metals from the public at scrap prices. Through an exclusive relationship with a strategic refinery partner, Money4Gold is able to refine these items into a pure state and sell them at spot prices for favorable gross margins.
For the quarter ended June 30, 2009, Money4Gold generated $1,490,560 in revenues from sales of gold and silver and realized a gross profit of $859,703. Gross profit margin was 58% for the second quarter 2009, an increase over the 54% gross margin for the first quarter of 2009. For the six months ended June 30, 2009, Money4Gold generated $2,676,002 in revenues and realized a gross profit of $1,499,575 reflecting a gross profit margin of 56%.
For the quarter ended and six months ended June 30, 2009, Money4Gold incurred a net loss of $1,716,539 and $3,072,231, respectively, which resulted largely from increased marketing activities during the end of the period, as well as the investment in the start up costs associated with the Canadian and United Kingdom operations. While the operating loss increased from the previous quarter, management views the increase as a necessary investment in the future as marketing costs, based on the Company's revenue cycle, typically do not translate into sales until 30 to 60 days after they are incurred. These additional marketing activities are anticipated to favorably impact the Company's third quarter financial result.
According to Money4Gold CEO Douglas Feirstein, "This quarter was dedicated to the successful integration of Money4Gold and My Gold Envelope, as well as a focused effort to penetrate international markets. We are excited about the smooth integration of our operations and marketing efforts. While revenue of $1.49 million is a meaningful improvement over our first quarter sales numbers, our efficiencies and international expansions are only now beginning to become impactful. In fact, I am pleased to report that in only the first six weeks of this current quarter, we have already surpassed second quarter revenue numbers. We expect a minimum of 100% growth in sales in this current quarter compared to the second quarter ended June 30, 2009. As we continue our international expansion and increase our ad spending, we expect to see rapid growth in the coming quarters."
The complete second quarter report, including management's discussion and analysis, financial statements, and footnotes can be found on the Securities and Exchange Commission's website at www.sec.gov.
About Money4Gold Holdings, Inc.
The Company's mission is to increase shareholder value by producing gold, platinum and silver in increasing quantity, and without the risks of mining, large capital costs or the attendant environmental and political hazards. Management believes Money4Gold can offer the upside potential of the thriving international precious metals markets by the broad-scale acquisition, recycling and production of gold, platinum and silver, while concurrently providing a new level of service and payout to individuals and groups wanting to sell their precious metals. Through Money4Gold's consumer websites, including www.Dollars4Gold.com, www.Dollars4Gold.ca, www.MyGoldEnvelope.com and www.money4golduk.com, the company strives to provide the most convenient, efficient and secure method for individuals to recycle items containing precious metals. For more corporate information, please visit www.Money4Gold.com.
Safe Harbor
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") including expectations regarding increases in revenues, growth, continued international expansion and ad spending and integration of our accounting systems. Additionally, words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the impact of competition, the future prices of gold and other precious metals, future economic conditions, and the condition of the global credit and capital markets and our having the necessary staffing to integrate our accounting systems. Further information on Money4Gold's risk factors is contained in its filings with the Securities and Exchange Commission, including the Form 10-K filed on April 15, 2009. Money4Gold does not undertake any duty nor does it intend to update the results of these forward-looking statements.