Collectors Universe, Inc. Obtains $3.5 Million 5-Year Unsecured Term Loan from California Bank & Trust
September 20 2017 - 09:00AM
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 $3.5 million five year unsecured term loan.
The loan proceeds will be available to fund the Company’s
share of the construction and related facility costs for its new
corporate headquarters and for other general corporate purposes.
Robert Deuster, Collectors Universe’s Chief Executive Officer
noted, “Our new corporate headquarters facility, which we expect to
occupy towards the end of 2017, is being custom built to support
our growth over the next decade and we are taking the opportunity
to upgrade related infrastructure at the same time. The loan
allows us the flexibility to draw down funds for up to twelve
months, at which time the loan becomes fixed and is repayable on a
monthly basis over 48 months. The loan is in addition to the
$10 million line of credit that we obtained from California Bank
& Trust, earlier in the year.”
The Loan Agreement contains financial covenants that require the
Company to maintain a debt service coverage ratio and a funded debt
coverage ratio, and certain other covenants typical for this type
loan, as a condition to the continuance of the loan.
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 current
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 businesses 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 and the risks of
security breaches of our websites or computer systems that could
lead to interruptions in our services or the misappropriation or
theft of confidential personally identifiable information of our
customers.
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, 2017, which we filed with the
Securities and Exchange Commission on August 31, 2017, 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 WallaceChief Financial
OfficerCollectors Universe949-567-1245 Email:
jwallace@collectors.com
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