SOURCE: Superior Galleries, Inc.

February 13, 2007 18:00 ET

Superior Galleries, Inc. Announces Results for Second Quarter of 2007

BEVERLY HILLS, CA -- (MARKET WIRE) -- February 13, 2007 -- Superior Galleries, Inc. (OTCBB: SPGR), which wholesales, retails and auctions rare coin products via traditional and Internet channels, today announced operating results for the quarter ending December 31, 2006.

Earnings

--  Basic and diluted net income per share for the fiscal second quarter
    was ($.031) versus ($.023) in the equivalent period in fiscal 2006. Net
    loss increased 34 percent to $1,492,000 from $1,117,000 for the equivalent
    fiscal 2006 quarter.
--  Basic and diluted net income per share for the six months was ($.51)
    versus ($.25) in the equivalent period in fiscal 2006. Net loss increased
    99 percent to $2,430,000 from $1,223,000 for the equivalent 2006 period.
    
Revenues
--  Total Revenues for the Fiscal Second Quarter of 2007 were $5,805,000.
    Revenues for the equivalent quarter of fiscal 2006 were $9,626,000. This
    represents a decline of 40 percent.
--  Total Revenues for the six months ended December 31, 2006 were
    $14,366,000. Revenues for the equivalent period in fiscal 2006 were
    $21,279,000. This represents an decline of 33 percent.
    
"The fiscal second quarter marked a period of great change at Superior," noted William H. Oyster, Interim President and Chief Executive Officer of Superior Galleries, Inc. Mr. Oyster continued, "As Superior prepares for its previously announced acquisition by DGSE Companies, Inc. (DGSE), substantial restructuring is occurring. Inventories are being adjusted, personnel changes are occurring, expenses are being rationalized and a host of other activities are taking place to improve Superior's potential to achieve meaningful growth."

DGSE and Superior expect the acquisition to close late in March 2007, subject to the satisfaction or waiver of the various closing conditions in the acquisition agreement.

                         Superior Galleries, Inc.
                         Statements of Operations
                                (Unaudited)
                  (In thousands, except per share data)



                                     Six Months Ended   Three Months Ended
                                    ------------------  ------------------
                                    December  December  December  December
                                    31, 2006  31, 2005  31, 2006  31, 2005
                                    --------  --------  --------  --------

Net sales                           $ 12,863  $ 20,433  $  5,388  $  9,485
Commission income                      1,503       846       417       141
                                    --------  --------  --------  --------
Total revenue                         14,366    21,279     5,805     9,626

Cost of revenue                       11,663    17,782     4,609     8,440
                                    --------  --------  --------  --------

Gross profit                           2,703     3,497     1,196     1,186

Selling, general and administrative
 expenses                              4,766     4,467     2,505     2,166
                                    --------  --------  --------  --------

Loss from operations                  (2,063)     (970)   (1,309)     (980)
                                    --------  --------  --------  --------

Other expense
  Interest income                        148       214        56       101
  Interest expense                      (514)     (466)     (238)     (238)
                                    --------  --------  --------  --------
    Total other expense                 (366)     (252)     (182)     (137)
                                    --------  --------  --------  --------

Loss before provision for taxes       (2,429)   (1,222)   (1,491)   (1,117)

Income tax provision                       1         1         1         -
                                    --------  --------  --------  --------

Net loss                            $ (2,430) $ (1,223) $ (1,492) $ (1,117)
                                    ========  ========  ========  ========

Net loss per share
  Basic                             $  (0.51) $  (0.25) $  (0.31) $  (0.23)
                                    ========  ========  ========  ========
  Fully diluted                     $  (0.51) $  (0.25) $  (0.31) $  (0.23)
                                    ========  ========  ========  ========

Weighted average number of common
 shares outstanding
                                    ========  ========  ========  ========
  Basic                                4,808     4,820     4,808     4,820
                                    ========  ========  ========  ========
  Fully diluted                        4,808     4,820     4,808     4,820
                                    ========  ========  ========  ========
About Superior Galleries, Inc.

Superior Galleries, Inc. is a publicly traded company, acting as a dealer and auctioneer of rare coins and other fine collectibles. Headquartered in Beverly Hills, California, the firm markets its products through auctions (both live events and on the World Wide Web), its nationwide sales force, its gallery in Beverly Hills and via the company's web site at www.SGBH.com.

Stanford Coins & Bullion is a member of the Stanford Financial Group, an international network of affiliated companies that together form a powerful resource of financial services. Located in Houston, Texas, the company markets its products through its retail sales force and the company's web site.

Safe Harbor for Forward-Looking Statements. Included in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including express and implied statements concerning future revenues, income, results of operations, expansion plans and expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations reflected in such forward-looking statements will prove to have been correct. These forward-looking statements are subject to certain risks and uncertainties, including market and other conditions that may affect Superior's ability to grow its revenues and reduce its operating costs. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors including sales levels, operating costs, distribution and competition trends, consumer preferences and other market factors. Past sales performance may not be indicative of future results. No assurances are given that sales trends or sales performance on behalf of consignors or customers will continue.

Contact Information

  • For further information, please contact:

    William H. Oyster
    Interim Chief Executive Officer
    Superior
    (800) 421-0754