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Collectors Universe Reports Results for First Quarter Ended September 30, 2012

(November 08, 2012)

NEWPORT BEACH, Calif., Nov. 8, 2012 (GLOBE NEWSWIRE) -- Collectors Universe, Inc. (Nasdaq:CLCT), a leading provider of value-added authentication and grading services to dealers and collectors of high-value collectibles, today announced financial results for its first quarter of fiscal 2013.



Operational and Financial Highlights:




  • Service revenues of $10.7 million and operating income of $1.3 million for this year's first quarter were consistent with the preliminary revenues of $10.7 million and operating income of $1.2 million, announced on October 5, 2012.

     


  • Service revenues were down 10% to $10.7 million in this year's first quarter, compared to $11.9 million in the same quarter of the prior year. The decline was driven by a $1.5 million, or a 19% decrease in coin service revenues, partially offset by increases of $0.3 million, primarily in cards and autographs service revenues. 

     


  • The services gross profit margin for this year's first quarter was down $1.0 million to 59% of service revenues, compared with the 62% in the first quarter of the prior year and primarily reflects the decline in revenues in the quarter. 

     


  • Operating income at $1.3 million for this year's first quarter decreased by $1.2 million from $2.5 million in last year's first quarter.  Operating expenses in this year's first quarter included $0.3 million incurred for our Hong Kong activities and $0.2 million in CEO transition costs. Those cost increases were partially offset by lower costs incurred on incentive programs, due to the lower revenues and operating income in the quarter.

     


  • Income from continuing operations was $0.8 million, or $0.10 per diluted share, for this year's first quarter, compared to $1.5 million, or $0.19 per diluted share, for last year's first quarter.

     


  • The Company's cash position at September 30, 2012 was $19.6 million, compared with $21.2 million at June 30, 2012.  Net cash used of $1.6 million in the quarter was comprised of cash generated from continuing operations of $1.6 million, offset by cash payments of $2.9 million of dividends to stockholders, $0.2 million for capital expenditures and $0.1 million used in our discontinued operations.

     


  • On October 31, 2012, we announced our quarterly cash dividend of $0.325 per share, which will be paid on November 30, 2012 to stockholders of record on November 16, 2012.



Commentary and Outlook


Robert Deuster, Chief Executive Officer, stated, "Our first quarter results indicate a continuing softer demand for grading of coins and, as such, the results for our coin division are down year over year. This is primarily due to gold prices and lower dealer and consumer demand. Show grading continues to be robust. While we do expect market variability, we have responded to this by adjusting our cost structure, reducing expenses by $1.1 million annually, until coin market conditions improve.




The results from our sports card, autograph and online businesses continue to improve year over year and partially offset the softening in our coin business.



While we are currently in our seasonally slowest quarter of the year, overall, we remain optimistic about our collectibles business prospects worldwide and continue to invest in and enhance our company's capabilities in the US, Europe and Asia."



Conference Call and Webcast



Collectors Universe will host a conference call to discuss results on Thursday, November 8, 2012 at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may participate in the conference call by dialing 877-941-8610 or 480-629-9820, five to ten minutes prior to the initiation of the call. A replay of the conference call will be available through November 22, 2012 by dialing 800-406-7325 or 303-590-3030 and entering access code 4181738#. A live webcast of the conference call will also be available on the Collectors Universe website, www.collectors.com under Investor Relations: Events and Presentations. The webcast will be archived for 12 months.



About Collectors Universe



Collectors Universe, Inc. is a leading provider of value-added services to the high-value collectibles markets. The Company authenticates and grades collectible coins, trading cards, event tickets, autographs and memorabilia ("collectibles"). The Company also compiles and publishes authoritative information about United States and world coins, collectible trading cards and sports memorabilia ("collectibles"), and operates its CCE dealer-to-dealer Internet bid-ask market for certified coins and its Expos trade show and conventions business. This information is accessible to collectors and dealers at the Company's website, http://www.collectors.com and is also published in print.



The Collectors Universe, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11345   



Cautionary Statements Regarding Forward Looking Information



This news release contains statements regarding our expectations, beliefs or views about our future financial performance and trends in our business and in our markets, which constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements can often be identified by the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or future or conditional verbs such as "will," "would," "should," "could," or "may."



Due to a number of risks and uncertainties to which our business and our markets are subject, our future financial performance may differ, possibly significantly, from our expected financial performance as set forth in the forward-looking statements contained in this news release. Information regarding those risks and uncertainties, and their possible impact on our future financial performance, include, but are not limited to, the following: our continued dependence on our coin business which generated more than 60% of our consolidated revenues and a substantial portion of our operating income in the year ended June 30, 2012, making our operating results more vulnerable to conditions that could adversely affect or cause stagnation in the prices of  precious metals and collectible coins; the risks that the economic recovery may remain sluggish or stall, that economic conditions may deteriorate as a result of events outside of our control, including the European sovereign debt crisis, concerns regarding the United States deficit or international tensions that could cause a slowing in the growth or even a decline in gold and silver prices, any of which could result in reductions in the demand for our collectibles authentication and grading services and, consequently, in our revenues and operating results; the risk that the economic recession from 2008 to 2010 and the anemic economic recovery in the United States will lead to longer-term changes in the spending habits of consumers and in the availability and use of credit by smaller businesses, such as collectibles dealers, to fund purchases of collectibles, which could lead to longer-term declines in collectibles commerce and, therefore, in the demand for our services; the risk that our strategies of offering new services and expanding our collectibles authentication and grading business into new geographic areas, such as Europe and Asia will not be successful in enabling us to improve our profitability or may even cause us to incur significant losses; the risk that it may become necessary for us to reduce the amount of, or suspend or discontinue the payment of cash dividends in the future, due to conditions or circumstances outside of our control, such as adverse economic or market conditions, as well as our future financial performance and the cash needs of our business in the future; and the risk that our continuing financial obligations with respect to two facilities in New York City, which we had leased for our subsequently discontinued jewelry businesses, will lead to reductions in cash flows and additional losses from discontinued operations in future periods.



Additional information regarding these risks and information regarding other risks and uncertainties to which our business is subject is contained in our Annual Report on Form 10-K for our fiscal year ended June 30, 2012 filed with the Securities and Exchange Commission on August 30, 2012. Due to these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or in our Annual or Quarterly Reports, which speak only as of their respective dates. We also disclaim any obligation to update or revise any of the forward-looking statements as a result of new information, future events or otherwise, except as may be required by law or NASDAQ rules.







































































































































































































































COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except per share data)

(Unaudited)

 

 

 

 

Three Months Ended

 

September 30,

 

2012

2011

Net revenues

 

 

Grading, authentication and related services

$10,680

$11,901

Product sales

550

171

 

11,230

12,072

Operating Expenses:

 

 

Grading, authentication and related services

4,340

4,539

Product sales

550

186

 

4,890

4,725

 

 

 

Gross profit

6,340

7,347

 

 

 

Operating Expenses:

 

 

Selling and marketing expenses

1,815

1,650

General and administrative expenses

3,234

3,204

Total operating expenses

5,049

4,854

 

 

 

Operating income

1,291

2,493

 

 

 

Interest and other income, net 

62

20

Income before provision for income taxes

1,353

2,513

Provision for income taxes

535

1,019

Income from continuing operations

818

1,494

Loss from discontinued operations, net of income taxes

(12)

(18)

Net income

$806

$1,476

 

 

 

Net income per basic share:

 

 

Income from continuing operations

$0.10

$0.19

Loss from discontinued operations

--

--

Net income

$0.10

$0.19

 

 

 

Net income per diluted share:

 

 

Income from continuing operations

$0.10

$0.19

Loss from discontinued operations

--

--

Net income

$0.10

$0.19

 

 

 

Weighted average shares outstanding:

 

 

Basic

8,029

7,854

Diluted

8,085

7,965

Dividends declared per common share

$0.325

$0.325


 



























































































































































































































COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, except per share data)

(Unaudited)

 

 

September 30,

June

30,

ASSETS

2012

2012

Current assets:

 

 

Cash and cash equivalents

$ 19,555

$ 21,214

Accounts receivable, net of allowance of $37 at September 30, 2012 and $70 at June 30, 2012

1,774

1,794

Inventories, net

1,858

2,273

Prepaid expenses and other current assets

818

813

Deferred income tax assets

1,146

1,177

Notes receivable from sale of net assets of discontinued operations

150

148

Current assets of discontinued operations

27

27

Total current assets

25,328

27,446

 

 

 

Property and equipment, net

1,818

1,795

Goodwill

2,083

2,083

Intangible assets, net

1,767

1,788

Deferred income tax assets

2,982

2,982

Other assets

218

169

Non-current assets of discontinued operations

182

182

 

$ 34,378

$ 36,445

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

Current liabilities:

 

 

Accounts payable

$ 1,552

$ 1,625

Accrued liabilities

2,087

1,917

Accrued compensation and benefits

1,520

2,463

Income taxes payable

635

191

Deferred revenue

2,477

2,322

Current liabilities of discontinued operations

784

804

Total current liabilities

9,055

9,322

 

 

 

Deferred rent

455

447

Non-current liabilities of discontinued operations

2,031

2,145

Commitments and contingencies

 

 

 

 

 

Stockholders' equity:

Preferred stock, $.001 par value; 3,000 shares authorized; no shares issued or outstanding

--

--

Common stock, $.001 par value; 20,000 shares authorized; 8,111 and 8,107 issued and outstanding at September 30, 2012 and June 30, 2012, respectively

 

8



8

Additional paid-in capital

73,847

73,683

Accumulated deficit

(51,018)

(49,160)

Total stockholders' equity

22,837

24,531

 

$ 34,378

$ 36,445

CONTACT: Joseph Wallace
Chief Financial Officer
Collectors Universe
949-567-1245
Email: jwallace@collectors.com



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