NEWPORT BEACH, Calif.,
May 9, 2011 /PRNewswire/ --
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 third quarter ended March 31, 2011.
Operational and Financial Highlights:
- Net service revenues increased 17% in this year's third quarter
to a record $12.6 million (excluding
product sales of $263,000), driven
primarily by a 21% increase in coin service revenues to
$8.8 million from $7.3 million in the prior year third quarter.
The increase in coin service revenues was primarily the
result of a $1.2 million or 40%
increase in modern coin grading revenues and a $0.5 million or 206% increase in world coin
grading revenues in the quarter.
- The gross profit margin for this year's third quarter,
excluding product sales, was 63% of revenues, compared to 61% for
the third quarter of last year, reflecting the increased percentage
of higher margin coin revenues in this year's third quarter and
operating leverage in our business.
- Operating income increased by 31% in this year's third quarter
to a record $3.3 million from
$2.5 million in the third quarter of
last year. Our operating margin was 26% of revenues in the current
third quarter, compared with 23% of revenues in the prior third
quarter.
- Income from continuing operations was $2.0 million, or $0.25 per diluted share, and $4.1 million, or $0.52 per diluted share, for the third quarter
and nine months of fiscal 2011, compared to $2.4 million, or $0.32 per diluted share, and $5.8 million, or $0.76 per diluted share, for the third quarter
and nine months of fiscal year 2010. The current period
results reflect income tax provisions of $1.4 million for the quarter and
$2.7 million for the nine months,
compared to immaterial income tax provisions for the same prior
year periods. The increase in the tax provision for 2011
resulted from the release of valuation allowances against deferred
tax assets at June 30, 2010.
Cash payments for taxes continue to be minimal.
- The Company's cash position at March 31,
2011 was $21.2 million,
compared with $20.3 million at
June 30, 2010. The net cash generated of
$0.9 million in the nine months ended March 31, 2011, comprised of cash generated from
continuing operations of $8.2 million and proceeds received from the
exercise of stock options of $0.9
million, net of payments of $7.4 million for cash dividends paid to
stockholders, $0.5 million for
discontinued operations and $0.3
million for capital expenditures.
- On April 25, 2011, we announced
our quarterly cash dividend of $0.325
per share, to be paid on May 27, 2011
to stockholders of record on May 13,
2011.
Commentary and Outlook
Michael McConnell, Chief
Executive Officer, stated, "We are pleased to report to our
stockholders, record operating results for the third quarter.
Both industry fundamentals and internal efficiencies
contributed to the strong performance. Further, the fourth quarter
has started strongly with a continued high level of submissions
from customers."
Conference Call and Webcast
Collectors Universe will host a conference call to discuss
results on Monday, May 9, 2011 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 May 23,
2011, by dialing 800-406-7325 or 303-590-3030 and entering
access code 4438578#. A live webcast of the conference call
will also be available on the Collectors Universe website,
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 markets. The Company
authenticates and grades collectible coins, trading cards, event
tickets, autographs, memorabilia and stamps ("collectibles").
The Company also compiles and publishes authoritative
information about United States
and world coins, collectible trading cards and sports memorabilia,
collectible stamps, 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.
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 nine months
ended March 31, 2011, making our operating results more
vulnerable to conditions that could adversely affect the precious
metals and coin markets; the risk that general improvement in
economic conditions in the United
States and the high price of gold and silver, will not be
sustainable such that economic conditions may even deteriorate and
prices may decline, which could result in reductions in the demand
for our collectible grading services and, consequently, in our
revenues; the risk that the slow economic recovery 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
strategy to offer new services in our continuing collectibles
markets 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, 2010 filed
with the Securities and Exchange Commission. 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.
Contact:
Joseph Wallace
Chief Financial Officer
Collectors Universe, Inc.
949-567-1245
Email: jwallace@collectors.com
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follow -
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COLLECTORS
UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In
Thousands, except per share
data)
(unaudited)
|
|
|
Three Months
Ended
March
31,
|
|
Nine Months
Ended
March
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net revenues
|
$ 12,818
|
|
$ 10,790
|
|
$ 32,174
|
|
$ 28,971
|
|
Cost of revenues
|
4,907
|
|
4,204
|
|
12,577
|
|
11,576
|
|
Gross profit
|
7,911
|
|
6,586
|
|
19,597
|
|
17,395
|
|
Selling and marketing
expenses
|
1,585
|
|
1,449
|
|
4,426
|
|
3,785
|
|
General and administrative
expenses
|
3,013
|
|
2,602
|
|
8,469
|
|
7,814
|
|
Operating
income
|
3,313
|
|
2,535
|
|
6,702
|
|
5,796
|
|
Interest and other income, net
|
36
|
|
35
|
|
88
|
|
87
|
|
Income before provision for
income taxes
|
3,349
|
|
2,570
|
|
6,790
|
|
5,883
|
|
Provision for income
taxes
|
1,381
|
|
129
|
|
2,735
|
|
54
|
|
Income from continuing
operations
|
1,968
|
|
2,441
|
|
4,055
|
|
5,829
|
|
Net loss from discontinued
operations, net of loss on sales of discontinued
businesses, net of income
taxes
|
-
|
|
(68)
|
|
(35)
|
|
(629)
|
|
Net income
|
$ 1,968
|
|
$ 2,373
|
|
$ 4,020
|
|
5,200
|
|
|
|
|
|
|
|
|
|
|
Net income per basic
share:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 0.25
|
|
$ 0.33
|
|
$ 0.53
|
|
$ 0.78
|
|
Loss from discontinued
operations
|
-
|
|
(0.01)
|
|
(0.01)
|
|
(0.08)
|
|
Net income per basic
shares
|
$ 0.25
|
|
$ 0.32
|
|
$ 0.52
|
|
$ 0.70
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted
share:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 0.25
|
|
$ 0.32
|
|
$ 0.52
|
|
$ 0.76
|
|
Loss from discontinued
operations
|
-
|
|
(0.01)
|
|
-
|
|
(0.08)
|
|
Net income per diluted
shares
|
$ 0.25
|
|
$ 0.31
|
|
$ 0.52
|
|
$ 0.68
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
7,727
|
|
7,420
|
|
7,672
|
|
7,459
|
|
Diluted
|
7,841
|
|
7,676
|
|
7,795
|
|
7,620
|
|
Dividends declared per common
share
|
$ 0.325
|
|
$ 0.25
|
|
$ 0.95
|
|
$ 0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLLECTORS
UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
Thousands, except per share data)
(unaudited)
|
|
|
March
31,
|
|
June
30,
|
|
ASSETS
|
2011
|
|
2010
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 21,259
|
|
$ 20,321
|
|
Accounts receivable, net of
allowance of $69 at March 31, 2011 and
$75 at June 30,
2010
|
1,852
|
|
1,246
|
|
Inventories, net
|
1,159
|
|
708
|
|
Prepaid expenses and other
current assets
|
893
|
|
919
|
|
Refundable income
taxes
|
65
|
|
335
|
|
Deferred income tax
assets
|
1,654
|
|
4,365
|
|
Notes receivable from sale of
net assets of discontinued operations
|
50
|
|
96
|
|
Current assets of discontinued
operations
|
28
|
|
52
|
|
Total
current assets
|
26,960
|
|
28,042
|
|
|
|
|
|
|
Property and equipment,
net
|
1,176
|
|
1,145
|
|
Goodwill
|
2,826
|
|
2,826
|
|
Intangible assets,
net
|
1,860
|
|
2,184
|
|
Deferred income tax
assets
|
3,807
|
|
3,807
|
|
Notes receivable from sale of
net assets of discontinued operations
|
132
|
|
170
|
|
Other assets
|
225
|
|
330
|
|
Non-current assets of
discontinued operations
|
182
|
|
182
|
|
|
$ 37,168
|
|
$ 38,686
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$ 1,194
|
|
$ 1,434
|
|
Accrued liabilities
|
1,451
|
|
1,495
|
|
Accrued compensation and
benefits
|
1,961
|
|
1,804
|
|
Income taxes payable
|
184
|
|
197
|
|
Deferred revenue
|
2,538
|
|
1,926
|
|
Current liabilities of
discontinued operations
|
785
|
|
923
|
|
Total
current liabilities
|
8,113
|
|
7,779
|
|
|
|
|
|
|
Deferred rent
|
381
|
|
321
|
|
Non-current liabilities of
discontinued operations
|
2,670
|
|
2,974
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock, $.001 par
value; 3,000 shares authorized, none issued or
outstanding
|
-
|
|
-
|
|
Common stock, $.001 par value;
20,000 shares authorized; 7,896
and 7,693 issued and
outstanding at March 31, 2011 and at June 30, 2010,
respectively
|
8
|
|
8
|
|
Additional paid-in
capital
|
69,861
|
|
68,134
|
|
Accumulated deficit
|
(43,865)
|
|
(40,530)
|
|
Total
stockholders' equity
|
26,004
|
|
27,612
|
|
|
$ 37,168
|
|
$ 38,686
|
|
|
|
|
|
|
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SOURCE Collectors Universe, Inc.