Collectors Universe, Inc. Obtains $10 Million Unsecured Line of Credit from California Bank & Trust
January 12 2017 - 8:00AM
Collectors Universe, Inc. (NASDAQ:CLCT), a leading provider of
value-added authentication and grading services for high-value
collectibles, today announced that it has entered into a Loan
Agreement with California Bank & Trust, which provides the
Company with a $10 million three year unsecured revolving
credit line.
Robert Deuster, Collectors Universe’s Chief
Executive Officer noted, “Working closely with California Bank
& Trust, we were able to arrange this unsecured credit line to
meet our specific needs in a way that augments our already strong
balance sheet. The Loan Agreement is flexible and has
competitive interest rates, and will enable us to draw funds on an
as-needed basis for our business and other general corporate
purposes and to support our growth over the next three years.”
The Loan Agreement contains a financial covenant
that requires the Company to maintain a funded debt coverage ratio,
and certain other covenants typical for this type of credit
line. The Company’s ability to borrow under the credit line
is subject to its compliance with those covenants on an ongoing
basis.
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.collectorsuniverse.com and is also
published in print.
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 expectations
regarding our future financial performance that are expressed in,
or that may be implied or inferred from the discussion of our
operating results in this news release. 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 historically has
generated more than 60% of our consolidated revenues and a
substantial portion of our operating income, 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 stall,
or that domestic or international economic conditions may
deteriorate as a result of events outside of our control, that
could lead to reductions in the demand for our collectibles
authentication and grading services and, consequently, in our
revenues and operating results; the risk that the weakness or
volatility of economic conditions in the United States and
worldwide 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 risks that claims under our coin and trading card
authentication and grading warranties will increase substantially
and that the warranty reserves we maintain for such claims, will,
prove to be inadequate, which could cause our gross margin and
operating results to decline or cause us to incur operating losses;
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 risks and added complexity of
conducting business overseas; 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.
Additional information regarding these risks and
other risks and uncertainties to which our business is subject is
contained in Item 1A, entitled “Risk Factors”, in our Annual Report
on Form 10-K for our fiscal year ended June 30, 2016, which we
filed with the Securities and Exchange Commission on August 30,
2016, and readers of this news release are urged to review the
discussion of those risks and uncertainties in that Report.
Also, our actual financial results in the future may differ from
those currently expected due to additional risks and uncertainties
of which we are not currently aware or which we do not currently
view as, but in the future may become, material to our business or
operating results. 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 filed with the Securities and Exchange
Commission, which speak only as of their respective dates. We
also disclaim any obligation to update or revise any of the
forward-looking statements contained in this news release or in our
Annual Report on Form 10-K, as a result of new information, future
events or otherwise, except as may be required by law or NASDAQ
rules.
Contact:
Joseph Wallace
Chief Financial Officer
Collectors Universe
949-567-1245
Email: jwallace@collectors.com
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