NEWPORT BEACH, Calif., Nov. 9 /PRNewswire-FirstCall/ -- Collectors
Universe, Inc. (NASDAQ:CLCT), a leading provider of value-added
authentication and grading services to dealers and collectors of
high-value collectibles, diamonds and colored gemstones, today
announced financial results for its first fiscal quarter of 2008
ended September 30, 2007. For the first fiscal quarter of 2008, the
company reported net revenues of $10.8 million and a loss from
continuing operations of $100,000, or $0.01 per diluted share. This
compares to net revenues of $9.9 million and income from continuing
operations of $383,000, or $0.04 per diluted share, for the first
fiscal quarter of 2007. Operational and Financial Highlights -- A
9% year-over-year increase in net revenues to $10.8 million, a
record for first quarter revenues. -- An 8% increase in coin
revenues on improved trade show units graded. -- A 58% increase in
jewelry grading revenues as we build greater brand recognition and
acceptance in advance of the holiday 2007 selling season. -- A 40%
increase in stamp grading revenues which enabled our stamp business
to earn operating income for the first time. -- An increase in
jewelry promotional activities in support of anticipated increases
in seasonal holiday volume. -- A $0.25 cash dividend per common
share for the quarter ended September 30, 2007, compared to $0.08
per common share for the same year ago quarter. Michael Haynes,
Chief Executive Officer, stated, "Our first quarter of fiscal 2008
improved over the first quarter of fiscal 2007 in every segment
with respect to revenues and our legacy businesses increased their
operating income. Our jewelry segment also achieved an increase in
revenues from the first quarter of the prior fiscal year, although
we are still operating below the breakeven point. Nevertheless, our
jewelry businesses did improve with respect to the immediately
preceding fourth quarter of fiscal 2007, narrowing our loss and the
resulting net investment by approximately $360,000. Unallocated
costs, generally associated with corporate overhead, fell by
approximately 9% in the first quarter of fiscal 2008 as compared to
the first quarter of fiscal 2007." First Fiscal Quarter Operating
Results Net revenues totaled $10.8 million for the three months
ended September 30, 2007, an increase of 9% compared to $9.9
million for the same period of the prior fiscal year. The increase
was attributable to an overall increase in authentication and
grading service fees of 8% and increases in other related service
revenues of 17% compared to the same quarter of the prior year.
Coin revenues accounted for about 56% of first fiscal quarter
revenues which was consistent with the first quarter of last year.
Gross profit margin was 52% in the first fiscal quarter of 2008
compared to 56% in the same quarter of last year. The decrease was
primarily attributable to costs incurred by the Company's early
stage diamond and colored gemstone grading businesses, as the
Company builds grading capacity in support of anticipated increased
revenues in future periods. Operating expenses totaled $6.2 million
for the three months ended September 30, 2007, as compared to $5.4
million for the three months ended September 30, 2006. The
year-over-year increase primarily reflects an increase of $0.7
million in selling and marketing expenses associated with the
higher promotion costs for the jewelry businesses as discussed
above and higher costs incurred at collectibles trade shows for our
currency and autograph businesses. In addition, higher intangibles
amortization costs of $0.1 million were incurred primarily relating
to capitalized software projects. The resulting operating loss was
$611,000 for the three months ended September 30, 2007, as compared
to operating income of $130,000 for the three months ended
September 30, 2006. Income from continuing operations benefited
from interest income of $0.4 million in the current first quarter
compared with $0.6 million in the first quarter of last year. The
reduction in interest income reflects a shift of funds into tax
free investments in the first quarter and lower available cash
balances compared to the first quarter of fiscal 2007 (as we used
cash to pay dividends and to fund capital expenditures and the
purchase of our colored gemstone business in fiscal 2007).
Financial Condition At September 30, 2007, cash and cash
equivalents totaled $37.6 million compared with $42.4 million at
June 30, 2007. Net cash usage was $4.8 million for the first fiscal
quarter of 2008, consisting of net advances on customer notes
receivable for Collectors Finance Corp. of $1.1 million,
expenditures for capital equipment and software of $0.7 million,
cash used in operations of $0.9 million and the payment of cash
dividends to stockholders of $2.1 million. At September 30, 2007,
the Company had working capital of $39.9 million and no long-term
debt. Outlook Haynes continued, "The upcoming December quarter, our
second fiscal quarter, is our most challenging seasonal quarter for
the collectibles group, while it is the best quarter of the year
for the jewelry segment due to the holiday season. We expect that
our jewelry segment will show significant growth in the second
quarter over the prior year's second quarter and a higher growth
rate from the first fiscal quarter of 2008 to the second fiscal
quarter of 2008 than the corresponding periods of fiscal 2007."
Conference Call and Webcast Collectors Universe will host a
conference call to discuss results on Friday, November 9th at 11:00
a.m. Eastern/8:00 a.m. Pacific. Interested parties may participate
in the conference call by dialing 866-249-5225 or 303-262-2142,
five to ten minutes prior to the initiation of the call. A replay
of the conference call will be available through November 23, 2007,
by dialing 800-405-2236 or 303-590-3000 and entering access code
11102145#. A live webcast of the conference call will also be
available on the Collectors Universe website
http://www.collectors.com/ under Investor Relations: Earnings
Conference Calls. 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 and diamond
and colored gemstones markets. The Company authenticates and grades
collectible coins, sports cards, autographs, stamps, currency,
diamonds and colored gemstones. The Company also compiles and
publishes authoritative information about United States and world
coins, collectible sports cards and sports memorabilia, collectible
stamps, diamonds and colored gemstones. This information is
accessible to collectors and dealers at the Company's web site,
http://www.collectors.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, which
constitute "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can 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 is subject, our actual financial performance in
the future 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
risks that our strategy to expand into new collectibles and other
high value asset markets, such as the diamond and colored gemstone
markets, and to offer new services in our existing markets will not
be successful in enabling us to improve our profitability or may
even cause us to incur losses. 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, 2007 which we filed
with the Securities and Exchange Commission on September 13, 2007.
Due to those risks and uncertainties, readers are cautioned not to
place undue reliance on the forward-looking statements contained in
this news release, which speak only as of its date, or to make
predictions about our future performance based solely on historical
financial performance. We also disclaim any obligation to update
forward-looking statements contained in this news release or in our
Annual Report or Quarterly Reports filed with the Securities and
Exchange Commission. Contact: Joe Wallace Chief Financial Officer
Collectors Universe 949-567-1245 Email: Brandi Piacente Investor
Relations The Piacente Group, Inc. 212-481-2050 Email: COLLECTORS
UNIVERSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands, except per share data) (unaudited) September
30, June 30, 2007 2007 ASSETS Current assets: Cash and cash
equivalents $37,577 $42,386 Accounts receivable, net of allowance
for doubtful accounts of $60 1,671 1,276 Refundable income taxes
1,220 1,220 Inventories, net 426 442 Prepaid expenses and other
current assets 1,073 1,060 Customer notes receivable, net of
allowance of $23 3,696 2,536 Net deferred income tax asset 1,050
1,020 Receivables from sale of net assets of discontinued
operations 92 92 Total current assets 46,805 50,032 Property and
equipment, net 4,141 4,081 Goodwill 12,879 12,884 Intangible
assets, net 10,456 10,365 Note receivable from sale of discontinued
operation 206 229 Other assets 514 510 $75,001 $78,101 LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable
$1,106 $1,435 Accrued liabilities 2,130 2,154 Accrued compensation
and benefits 1,448 1,988 Income taxes payable 297 14 Deferred
revenue 1,889 2,233 Current liabilities of discontinued operations
23 - Total current liabilities 6,893 7,824 Deferred rent 464 477
Other long-term liabilities 40 40 Net deferred income tax liability
810 869 Commitments and contingencies - - Preferred stock, $.001
par value; 5,000 shares authorized; no shares issued or outstanding
- - Common stock, $.001 par value; 45,000 shares authorized;
outstanding 8,521 at September 30, 2007 and 8,496 at June 30, 2007
9 9 Additional paid-in capital 77,049 76,737 Accumulated deficit
(10,264) (7,855) Total stockholders' equity 66,794 68,891 $75,001
$78,101 COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per
share data) (unaudited) Three Months Ended September 30, 2007 2006
Net revenues $10,825 $9,898 Cost of revenues 5,200 4,356 Gross
profit 5,625 5,542 Selling and marketing expenses 2,018 1,262
General and administrative expenses 3,948 3,979 Amortization of
intangible assets 270 171 Total operating expenses 6,236 5,412
Operating income (loss) (611) 130 Interest income, net 444 567
Other income 1 4 Income (loss) before provision (benefit) for
income taxes (166) 701 Provision (benefit) for income taxes (66)
318 Income (loss) from continuing operations (100) 383 Income
(loss) from discontinued operations, net of gain on sales of
discontinued businesses (net of income taxes) (10) 11 Net income
(loss) $(110) $394 Net income (loss) per basic share: Income (loss)
from continuing operations $(0.01) $0.05 Income (loss) from
discontinued operations, net of gain on sales of discontinued
businesses (net of income taxes) - - Net income (loss) $(0.01)
$0.05 Net income (loss) per diluted share: Income (loss) from
continuing operations $(0.01) $0.04 Income (loss) from discontinued
operations, net of gain on sales of discontinued businesses (net of
income taxes) - - Net income (loss) $(0.01) $0.04 Weighted average
shares outstanding: Basic 8,463 8,351 Diluted 8,463 8,628 Dividends
declared per common share $0.25 $0.08 DATASOURCE: Collectors
Universe, Inc. CONTACT: Joe Wallace, Chief Financial Officer of
Collectors Universe, Inc., +1-949-567-1245, ; or Investor
Relations, Brandi Piacente of The Piacente Group, Inc.,
+1-212-481-2050, , for Collectors Universe, Inc. Web site:
http://www.collectors.com/
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