NEWPORT BEACH, Calif., May 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 third fiscal quarter of 2008
ended March 31, 2008. For the third fiscal quarter of 2008, the
Company reported net revenues of $10.9 million and a loss from
continuing operations of $966,000, or $0.11 per diluted share. This
compares to net revenues of $11.1 million and a loss from
continuing operations of $68,000 or $0.01 per diluted share, for
the third fiscal quarter of 2007. Results for the third quarter of
fiscal 2008 reflect lower coin trade show revenues of approximately
$950,000, reflecting one less trade show and more challenging
conditions for trade show gold coin submissions in the quarter, due
primarily to the rapid increase in gold bullion prices. Operational
and Financial Highlights for the third quarter: -- Despite a 10%
decrease in coin revenues quarter-over-quarter, total revenues
decreased by only 2% reflecting an 18% increase in our non coin and
sportscards revenues. -- Jewelry revenues increased 30%
quarter-over-quarter driven by colored gemstone volume increases.
-- Reduced investment in diamond and gemstone grading business
sales and marketing programs as we enter a more focused marketing
phase. -- Reduced expenses in corporate general and administrative
by 8% in 2008 March quarter compared to 2007 March quarter. -- A
$0.25 cash dividend per common share for the quarter ended March
31, 2008, compared to $0.12 per common share for the same year ago
quarter. Michael Haynes, Chief Executive Officer, stated, "The coin
revenues were down in our trade show business and not totally
offset by increased revenues in our vintage and modern sectors. The
trade shows business was adversely impacted by the considerable
increase in gold prices, as a significant portion of the trade show
business is associated with gold coins that trade with modest
premiums over gold content. All other business segments, including
our developing business segment in jewelry, reported higher
revenues in the quarter as compared to the same quarter in the
previous year. In addition, we began realizing increased operating
efficiency in our corporate group which success we intend to expand
into all of our operations." Third Fiscal Quarter Operating Results
Net revenues totaled $10.9 million for the three months ended March
31, 2008, a decrease of 2% compared to $11.1 million for the same
period of the prior fiscal year, due to a decrease in
authentication and grading service fees of 5% that was largely
offset by an increase in other related service revenues of 21%.
Services gross profit margin was 45% in the third fiscal quarter of
2008 compared to 54% in the same quarter of last year. The decrease
was primarily attributable to a lower gross margin earned on coins
grading services due primarily to the aforementioned reduction in
coin trade show revenues (on which we earn a higher average service
fees and therefore a higher gross profit margin, because show
customers request faster turnaround times), and higher costs
incurred in support of our coin grading activities. In addition,
the Company's early stage diamond and colored gemstone grading
businesses incurred higher direct costs, as the Company builds
grading capacity in support of anticipated increased revenues in
future periods. Operating expenses of $6.4 million for the three
months ended March 31, 2008 were consistent with the level of
operating expenses incurred in the three months ended March 31,
2007. For the current quarter there was a decrease in sales and
marketing expenses due to the lower costs incurred for the jewelry
businesses as discussed above, higher general and administrative
expenses incurred to support our colored gemstone business and
higher intangibles amortization expense relating to capitalized
software projects. The resulting operating loss was $1.5 million
for the three months ended March 31, 2008, as compared to an
operating loss of $0.4 million for the three months ended March 31,
2007. Interest income totaled $0.2 million in the current third
quarter, compared with $0.5 million in the third quarter of last
year. That reduction was the result of a shift of funds into tax
free investments, lower available cash balances and lower interest
rates compared to the third quarter of fiscal 2007. Year to Date
Comparison Net revenues totaled $31.7 million for the nine months
ended March 31, 2008, an increase of 6%, compared to $29.8 million
for the same period of the prior fiscal year. Excluding product
revenues, service revenues increased by 4% over the prior year's
nine-month period, as a result of increases in authentication and
grading service fees of 1% and increases in other related service
revenues of 18%. Product revenues are sales of collectible coins
acquired by us under the terms of our coin grading warranty and are
not considered to be an integral part of our main revenue
generating activities and are not expected to generate any
meaningful profit. Services gross profit margin was 44% in nine
months ended March 31, 2008 compared to 54% in the same period last
year. The decrease was attributable mainly to the same issues that
caused the decline in gross profit margin in the third quarter;
however, in addition, our coin business recognized increased
warranty costs of $822,000 in the second quarter related to an
unusually large number of grading warranty claims. Operating
expenses totaled $18.6 million for the nine months ended March 31,
2008, as compared to $17.1 million for the comparable year ago
period. The increase reflects (i) an increase of $0.9 million in
selling and marketing expenses primarily associated with the higher
promotion costs for the jewelry businesses and higher costs
incurred by our collectibles businesses at trade shows and for
business development purposes (ii) an increase of $0.3 million in
general and administrative expenses reflecting our ownership of our
colored gemstone business for the full nine months in fiscal 2008
compared with seven and a half months in the nine month period to
March 31, 2007 and increased stock-based compensation due to the
issuance of restricted stock, and (iii) higher intangibles
amortization expenses of $0.3 million incurred primarily relating
to capitalized software projects and intangible assets acquired in
the purchase of the Company's colored gemstone business. The
resulting operating loss was $4.9 million for the nine months ended
March 31, 2008, as compared to an operating loss of $1.2 million
for the nine months ended March 31, 2007. Interest income totaled
$1.0 million in the nine months ended March 31, 2008 compared with
$1.6 million in the same year ago period. That reduction reflects a
shift of funds into tax free investments, lower available cash
balances and lower interest rates compared the same period of the
prior year. Financial Condition At March 31, 2008, cash and cash
equivalents totaled $28.2 million compared with $42.4 million at
June 30, 2007. Net cash usage was $14.2 million for the first nine
months of fiscal 2008, primarily comprised of cash dividends to
stockholders of $6.4 million, payments for the repurchase and
retirement of common stock of $1.3 million, expenditures for
capital equipment and software of $2.4 million, net advances made
to collectibles dealers by Collectors Finance Corp. of $1.4 million
and cash used in operations of $3.0 million. At March 31, 2008, the
Company had working capital of $32.7 million and no long-term debt.
Outlook Haynes continued, "The development continued in the 2008
March quarter for our jewelry business, specifically with increases
in revenue driven by increases in units from our colored gemstone
business and higher average fees and supported by the increase in
the average declared value of the diamonds submitted. The continued
growth of our Certified Diamond Exchange along with our discussions
with customers and potential customers in the market show that we
have been successful with our marketing investment in brand
awareness and consequently, we are shifting our efforts to the next
marketing phase, a more focused, unit-driven plan. The seasonality
of the jewelry segment places us in the early stages of service
selection for the upcoming 2008 holiday selling season and
accordingly, we are aggressively pursuing new business
relationships and distribution for our services. As we complete
this fiscal year, we will be implementing new procedures and
processes taking better advantage of our investments in technology
and we expect that our operating costs will be reduced and
efficiencies increased in each of our businesses, including our
corporate overhead, so that we right size our operations for the
short and intermediate term." Conference Call and Webcast
Collectors Universe will host a conference call to discuss results
on Friday, May 9, 2008 at 5:00 p.m. Eastern/2:00 p.m. Pacific.
Interested parties may participate in the conference call by
dialing 800-366-7417 or 303-262-2139, five to ten minutes prior to
the initiation of the call. A replay of the conference call will be
available through May 23, 2008, by dialing 800-405-2236 or
303-590-3000 and entering access code 11114122#. 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: Joseph Wallace Brandi Piacente Chief
Financial Officer Investor Relations Collectors Universe The
Piacente Group, Inc. 949-567-1245 212-481-2050 Email: Email: -
tables to follow - COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except per share data) (unaudited) Three Months Ended Nine Months
Ended March 31, March 31, 2008 2007 2008 2007 Net Revenues:
Grading, authentication and related services $10,875 $11,068
$30,757 $29,629 Product sales 21 13 928 143 10,896 11,081 31,685
29,772 Cost of Revenues: Grading, authentication and related
services 5,977 5,130 17,153 13,753 Product sales 20 8 841 108 5,997
5,138 17,994 13,861 Gross profit 4,899 5,943 13,691 15,911
Operating expenses: Selling and marketing expenses 2,164 2,411
6,043 5,106 General and administrative expenses 3,960 3,729 11,637
11,389 Amortization of intangible assets 317 219 873 577 Total
operating expenses 6,441 6,359 18,553 17,072 Operating loss (1,542)
(416) (4,862) (1,161) Interest income, net 239 511 979 1,624 Other
income 1 2 4 8 Income (loss) before income taxes (1,302) 97 (3,879)
471 Provision (benefit) for income taxes (336) 165 (1,364) 336
Income (loss) from continuing operations (966) (68) (2,515) 135
Income from discontinued operations, net of gains on sales of
discontinued businesses (net of income taxes) - 99 (4) 190 Net
income (loss) $(966) $31 $(2,519) $325 Net income (loss) per basic
share: Income (loss) from continuing operations $(0.11) $(0.01)
$(0.30) $0.02 Income from discontinued operations, net of gains on
sales of discontinued businesses (net of income taxes) - 0.01 -
0.02 Net income (loss) $(0.11) $- $(0.30) $0.04 Net income (loss)
per diluted share: Income (loss) from continuing operations $(0.11)
$(0.01) $(0.30) $0.02 Income from discontinued operations, net of
gains on sales of discontinued businesses (net of income taxes) -
0.01 - 0.02 Net income (loss) $(0.11) $- $(0.30) $0.04 Weighted
average shares outstanding: Basic 8,470 8,381 8,475 8,346 Diluted
8,470 8,587 8,475 8,612 Dividends declared per common share $0.25
$0.12 $0.75 $0.28 COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per
share data) (unaudited) March 31, June 30, 2008 2007 ASSETS Current
assets: Cash and cash equivalents $28,167 $42,386 Accounts
receivable, net of allowance of $74 at March 31, 2008 and $60 at
June 30, 2007 1,744 1,276 Refundable income taxes 1,100 1,220
Inventories, net 1,073 442 Prepaid expenses and other current
assets 1,380 1,060 Customer notes receivable, net of allowance of
$28 at March 31, 2008 and $23 at June 30, 2007 3,985 2,536 Net
deferred income tax asset 2,921 1,020 Receivable from sale of net
assets of discontinued operations 92 92 Total current assets 40,462
50,032 Property and equipment, net 4,544 4,081 Goodwill 13,038
12,884 Intangible assets, net 10,181 10,365 Note receivable from
sale of discontinued operations 160 229 Other assets 565 510
$68,950 $78,101 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $1,434 $1,435 Accrued liabilities
1,994 2,154 Accrued compensation and benefits 1,486 1,988 Income
taxes payable 289 14 Deferred revenue 2,530 2,233 Current
liabilities of discontinued operations held for sale 4 - Total
current liabilities 7,737 7,824 Deferred rent and other long-term
liabilities 554 517 Net deferred income tax liability 1,118 869
Stockholders' equity: Preferred stock, $.001 par value; 5,000
shares authorized; no shares issued or outstanding - - Common
stock, $.001 par value; 45,000 shares authorized; 8,451 shares
outstanding at March 31, 2008 and 8,496 at June 30, 2007 8 9
Additional paid-in capital 76,481 76,737 Accumulated deficit
(16,948) (7,855) Total stockholders' equity 59,541 68,891 $68,950
$78,101 DATASOURCE: Collectors Universe, Inc. CONTACT: Joseph
Wallace, Chief Financial Officer of Collectors Universe, Inc.,
+1-949-567-1245, ; or Brandi Piacente, Investor Relations of The
Piacente Group, Inc., +1-212-481-2050, , for Collectors Universe,
Inc. Web site: http://www.collectors.com/
Copyright
Collectors Universe (NASDAQ:CLCT)
Historical Stock Chart
From May 2024 to Jun 2024
Collectors Universe (NASDAQ:CLCT)
Historical Stock Chart
From Jun 2023 to Jun 2024