Collectors Universe, Inc.
Feb 8, 2011
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Collectors Universe Reports Results for Second Quarter Ended December 31, 2010

NEWPORT BEACH, Calif., Feb. 8, 2011 /PRNewswire via COMTEX/ -- 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 second quarter ended December 31, 2010.

Operational and Financial Highlights:

Commentary and Outlook

Michael McConnell, Chief Executive Officer, stated, "We are pleased with the performance of the Company through the second quarter. The combination of our incremental growth initiatives and attention to costs and efficiencies is working well. Looking forward, Q3 is typically our strongest quarter and results are encouraging through the end of the first week of February."

Conference Call and Webcast

Collectors Universe will host a conference call to discuss results on Tuesday, February 8, 2011 at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may participate in the conference call by dialing 800-762-8908 or 480-629-9772, five to ten minutes prior to the initiation of the call. A replay of the conference call will be available through February 22, 2011, by dialing 800-406-7325 or 303-590-3030 and entering access code 4409864#. 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 six months ended December 31, 2010, making our operating results more vulnerable to conditions that could adversely affect the precious metals and coin markets ; the risk that economic conditions in the United States will not improve for some time and may even deteriorate further, which could result in reductions in the demand for our collectible grading services and, consequently, in our revenues; the risk that the economic recession and sluggishness of the 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 and our Form10-Q, for the second quarter ended December 31, 2010, which we filed with the Securities and Exchange Commission today. 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

 
 

tables to follow -

COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except per share data)

(unaudited)

 

Three Months Ended

December 31,


Six Months Ended

December 31,

 
 

2010

 

2009

 

2010

 

2009

 

Net revenues

$ 9,600

 

$ 8,883

 

$ 19,355

 

$ 18,181

 

Cost of revenues

3,895

 

3,633

 

7,669

 

7,372

 

Gross profit

5,705

 

5,250

 

11,686

 

10,809

 

Selling and marketing expenses

1,317

 

1,141

 

2,841

 

2,336

 

General and administrative expenses

2,837

 

2,644

 

5,456

 

5,212

 

Operating income

1,551

 

1,465

 

3,389

 

3,261

 

Interest and other income, net

28

 

12

 

52

 

52

 

Income before provision for income taxes

1,579

 

1,477

 

3,441

 

3,313

 

Provision (benefit) for income taxes

609

 

(202)

 

1,354

 

(75)

 

Income from continuing operations

970

 

1,679

 

2,087

 

3,388

 

Loss from discontinued operations, net of loss on sales of discontinued

businesses, net of income taxes

(22)

 

(508)

 

(35)

 

(561)

 

Net income

$ 948

 

$ 1,171

 

$ 2,052

 

$ 2,827

 
                 

Net income per basic share:

               

Income from continuing operations

$ 0.13

 

$ 0.23

 

$ 0.27

 

$ 0.45

 

Loss from discontinued operations

(0.01)

 

(0.07)

 

-

 

(0.07)

 

Net income per basic share

$ 0.12

 

$ 0.16

 

$ 0.27

 

$ 0.38

 
                 

Net income per diluted share:

               

Income from continuing operations

$ 0.12

 

$ 0.22

 

$ 0.27

 

$ 0.45

 

Loss from discontinued operations

-

 

(0.07)

 

(0.01)

 

(0.08)

 

Net income per diluted share

$ 0.12

 

$ 0.15

 

$ 0.26

 

$ 0.37

 
                 

Weighted average shares outstanding:

               

Basic

7,732

 

7,404

 

7,650

 

7,478

 

Diluted

7,820

 

7,555

 

7,772

 

7,592

 

Dividends declared per common share

$ 0.325

 

$ 0.25

 

$ 0.625

 

$ 0.25

 

 
               

COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, except per share data)

(unaudited)

 
 

December 31,

 

June 30,

 

ASSETS

2010

 

2010

 

Current assets:

       

Cash and cash equivalents

$ 18,955

 

$ 20,321

 

Accounts receivable, net of allowance of $88 at December 31, 2010 and

$75 at June 30, 2010

1,491

 

1,246

 

Inventories, net

1,329

 

708

 

Prepaid expenses and other current assets

904

 

919

 

Refundable income taxes

65

 

335

 

Deferred income tax asset

3,036

 

4,365

 

Notes receivable from sale of net assets of discontinued operations

50

 

96

 

Current assets of discontinued operations

33

 

52

 

Total current assets

25,863

 

28,042

 
         

Property and equipment, net

1,268

 

1,145

 

Goodwill

2,826

 

2,826

 

Intangible assets, net

1,953

 

2,184

 

Deferred income tax asset

3,807

 

3,807

 

Notes receivable from sale of net assets of discontinued operations

178

 

170

 

Other assets

250

 

330

 

Non-current assets of discontinued operations

182

 

182

 
 

$ 36,327

 

$ 38,686

 

LIABILITIES AND STOCKHOLDERS' EQUITY

       

Current liabilities:

       

Accounts payable

$ 1,324

 

$ 1,434

 

Accrued liabilities

1,360

 

1,495

 

Accrued compensation and benefits

1,318

 

1,804

 

Income taxes payable

184

 

197

 

Deferred revenue

1,981

 

1,926

 

Current liabilities of discontinued operations

732

 

923

 

Total current liabilities

6,899

 

7,779

 
         

Deferred rent

364

 

321

 

Non-current liabilities of discontinued operations

2,804

 

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 December 31, 2010 and at June 30, 2010,

respectively

8

 

8

 

Additional paid-in capital

69,585

 

68,134

 

Accumulated deficit

(43,333)

 

(40,530)

 

Total stockholders' equity

26,260

 

27,612

 
 

$ 36,327

 

$ 38,686

 

 

SOURCE Collectors Universe, Inc.