Envela, the parent company of ITAD company Echo and others, reported higher revenue and operating costs in the third quarter of the year, thanks to a new client.
In its third-quarter report, Envela noted that its commercial division revenue was $13.1 million, an increase of 31.5% year over year and an improvement on Q2’s softer pricing. The commercial segment includes ITAD companies Echo Environmental, ITAD USA, Teladvance, CEX and Avail.
Texas-headquartered Envela is a publicly traded company that also has a consumer segment performing retail sales of jewelry and other luxury items.
“Revenues strengthened on the continued performance of our ITAD business and incrementally from the sale of personal technology assets and shredded electronic scrap grades and associated recoveries,” the company stated in a press release. “Specific to ITAD, sales benefited from the intake of assets from a new client that we were able to recognize outbound sales on.”
The commercial division’s gross margin decreased to 57.4% from 61.5% in the prior-year quarter, due to a higher mix of lower margin electronic scrap grades sold, and operating expenses increased 4.8% to $5.4 million. Its pre-tax operating income was $2.4 million, an increase of 111.3%.
Tommy McGuire, head of the commercial division, said “fundamentals remain good as we observed solid operational performance across our footprint.”
“Underpinned by our commitment to offering tailored solutions to our clients, we are enthusiastic about the strong demand for our fee-for-service offerings as we diversify our revenue by expanding the variety of services we provide,” he added. “Our core recycling and ITAD businesses remain strong, and we believe the underlying near- and long-term demand fundamentals will continue to be robust based on customer conversations.”
Overall, Envela reported a Q3 revenue of $46.9 million.
