NEWPORT BEACH, Calif.,
Nov. 7, 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 first quarter of fiscal 2012.
Operational and Financial Highlights:
- Service revenues of $11.9 million
and operating income of $2.5 million
for this year's first quarter compared favorably with the expected
revenues of $11.6 million and
operating income of $2.35 million,
announced on September 15, 2011.
- Service revenues increased 23% in this year's first quarter,
compared to the same quarter of the prior year, driven primarily by
a 32% increase in coin service revenues. Notably, the average
service fee earned, per coin, increased by 24% to $14.89, and coin units increased by 7%, compared
to last year's first quarter.
- The service gross profit margin for this year's first quarter
was 62% of revenues consistent with the 62% earned in the first
quarter of the prior year.
- Operating income at $2.5 million
for this year's first quarter was up 36%, compared to the first
quarter of fiscal 2011. Operating income increased to 21% of
revenues in the quarter, compared to 19% of revenues in the first
quarter of the prior year.
- Income from continuing operations was $1.5 million, or $0.19 per diluted share, for this year's first
quarter, compared to $1.1 million, or
$0.14 per diluted share, for last
year's first quarter.
- The Company's cash position at September
30, 2011 was $20.6 million,
compared with $21.9 million at
June 30, 2011. Net cash used of
$1.3 million for the quarter was
comprised of cash generated from continuing operations of
$1.9 million (which included
payments of annual incentive compensation of $0.9 million) and proceeds received from the
exercise of stock options of $0.4
million, offset by cash payments of $2.6 million of dividends to stockholders,
$0.5 million for the purchase of
Coinflation.com, $0.4 million for
capital expenditures and $0.1 million
used in our discontinued operations.
- On October 24, 2011, we announced
our quarterly cash dividend of $0.325
per share, which will be paid on November
25, 2011 to stockholders of record on November 11, 2011.
Commentary and Outlook
Michael McConnell, Chief
Executive Officer, stated, "We are encouraged by the 10th
consecutive year-over-year quarterly increase in revenue and
operating income (before a non-cash impairment charge in the fourth
quarter of fiscal 2011). Our strategic focus on international
markets, technologies to enhance the customer value proposition and
digital offerings that deliver additional revenue streams are
working. Specifically, the Paris operation, PCGS Secure Plus and web-site
advertising and subscription fees continue to augment our core
business of grading and authentication. Looking forward, this
year's second quarter has started strongly and backlog remains
significantly above the prior year. Additionally, the
integration of Coinflation has gone well, and the acquisition is
meeting our financial expectations."
Conference Call and Webcast
Collectors Universe will host a conference call to discuss
results on Monday, November 7, 2011
at 4:30 p.m. Eastern
Time/1:30 p.m. Pacific Time.
Interested parties may participate in the conference call by
dialing 877-941-1466 or 480-629-9821, five to ten minutes prior to
the initiation of the call. A replay of the conference call
will be available through November 21,
2011, by dialing 800-406-7325 or 303-590-3030 and entering
access code 4486388#. A live webcast of the conference call
will also be available on the Collectors Universe website,
www.collectors.com under Investor Relations: Events and
Presentations. 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 both the year ended
June 30, 2011 and the first quarter
of fiscal 2012, making our operating results more vulnerable to
conditions that could adversely affect the precious metals and coin
markets ; the risk that the hoped for improvement in economic
conditions in the United States
may not materialize or increases in the prices of gold and silver,
may slow or even decline, either of which could result in
reductions in the demand for our collectibles authentication or
grading services and, consequently, in our revenues; the risk
that the economic downturn from 2008 to 2010 and the anemic
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 strategies of offering new services and
expanding our collectibles authentication and grading business into
new geographic areas, such as Europe 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, 2011 filed
with the Securities and Exchange Commission on August 26, 2011. 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.
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Contact:
Joseph Wallace
Chief Financial
Officer
Collectors Universe
949-567-1245
Email:
jwallace@collectors.com
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- tables to follow -
COLLECTORS
UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In
Thousands, except per share data)
(unaudited)
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Three Months
Ended
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September
30,
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2011
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2010
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Net revenue:
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Grading, authentication and
related services
|
11,901
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9,688
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Product sales
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171
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67
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12,072
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9,755
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Cost of revenues:
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Grading, authentication and
related services
|
4,539
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3,707
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Product sales
|
186
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67
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4,725
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3,774
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Gross
profit
|
7,347
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5,981
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Operating Expenses:
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Selling and marketing
expenses
|
1,650
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1,524
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General and administrative
expenses
|
3,204
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2,618
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Total operating
expenses
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4,854
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4,142
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Operating income
|
2,493
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1,839
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Interest and other income, net
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20
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24
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Income before provision for
income taxes
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2,513
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1,863
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Provision for income
taxes
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1,019
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745
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Income from continuing
operations
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1,494
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1,118
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Loss from discontinued
operations, net of loss on sales of discontinued
businesses,
net of income
taxes
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(18)
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(13)
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Net income
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$ 1,476
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$ 1,105
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Net income per basic
share:
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Income from continuing
operations
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$ 0.19
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$ 0.15
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Loss from discontinued
operations
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-
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-
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Net income
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$ 0.19
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$ 0.15
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Net income per diluted
share:
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Income from continuing
operations
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$ 0.19
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$ 0.14
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Loss from discontinued
operations
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-
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-
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Net income
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$ 0.19
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$ 0.14
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Weighted average shares
outstanding:
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Basic
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7,854
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7,502
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Diluted
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7,965
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7,725
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Dividends declared per common
share
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$ 0.325
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$ 0.30
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COLLECTORS
UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
Thousands, except per share data)
(unaudited)
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September
30,
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June
30,
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ASSETS
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2011
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2011
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Current assets:
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Cash and cash
equivalents
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$ 20,647
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$ 21,926
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Accounts receivable, net of
allowance of $62 at September 30, 2011 and $66
at June 30,
2011
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1,675
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1,534
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Refundable income
taxes
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60
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60
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Inventories, net
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2,271
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1,442
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Prepaid expenses and other
current assets
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983
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959
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Deferred income tax
asset
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762
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1,769
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Notes receivable from sale of
net assets of discontinued operations
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50
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50
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Current assets of discontinued
operations
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27
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27
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Total
current assets
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26,475
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27,767
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Property and equipment,
net
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1,487
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1,301
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Goodwill
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2,083
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2,083
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Intangible assets,
net
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1,878
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1,145
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Deferred income tax
asset
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2,956
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2,956
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Notes receivable from sale of
net assets of discontinued operations, less current
portion
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138
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135
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Other assets, including coin
inventory of $750 at June 30, 2011
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192
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942
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Non-current assets of
discontinued operations
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182
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182
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$ 35,391
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$ 36,511
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LIABILITIES AND STOCKHOLDERS'
EQUITY
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Current liabilities:
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Accounts payable
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$ 1,317
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$ 1,390
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Accrued liabilities
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1,522
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1,415
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Accrued compensation and
benefits
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1,511
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2,383
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Income taxes payable
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125
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125
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Deferred revenue
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2,426
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2,417
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Current liabilities of
discontinued operations
|
747
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743
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Total
current liabilities
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7,648
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8,473
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Deferred rent
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415
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396
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Non-current liabilities of
discontinued operations
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2,473
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2,572
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Commitments and
contingencies
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Stockholders' equity:
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Preferred stock, $.001 par
value; 3,000 shares authorized;
no shares
issued or outstanding
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-
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-
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Common stock, $.001 par value;
20,000 shares authorized 8,086
and 7,943 issued and
outstanding at September 30, 2011
and June 30, 2011,
respectively
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8
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8
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Additional paid-in
capital
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71,282
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70,402
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Accumulated deficit
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(46,435)
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(45,340)
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Total
stockholders' equity
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24,855
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25,070
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$ 35,391
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$ 36,511
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SOURCE Collectors Universe, Inc.