Collectors Universe, Inc.
May 9, 2012
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Collectors Universe Reports Results for Third Quarter Ended March 31, 2012

NEWPORT BEACH, Calif., May 9, 2012 (GLOBE NEWSWIRE) -- 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 of fiscal 2012.

Operational and Financial Highlights:

Commentary and Outlook

Michael McConnell, Chief Executive Officer, stated, "The quarter ended March 31, 2012 marked the best revenue quarter in our Company's 26-year history. I am proud of our team and commitment to continually enhance our services and embrace geographic expansion. Specifically, during the quarter, we invested in the development and launch of our Asian platform, and we expect the initiative to be a source of future growth for our company. Looking ahead, our coin business, and in particular our modern coin business, has started the fourth quarter with slower momentum than this time last year. Notably, year-to-date sales of Silver and Gold Eagles from the US Mint are down approximately 24% and 44%, respectively, as compared to the same period last year. This general market decline is impacting our customers who submit modern coins to us."

Conference Call and Webcast

Collectors Universe will host a conference call to discuss results on Wednesday, May 9, 2012 at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may participate in the conference call by dialing 800-762-8779 or 480-629-9722, five to ten minutes prior to the initiation of the call. A replay of the conference call will be available through May 23, 2012, by dialing 800-406-7325 or 303-590-3030 and entering access code 4537973#. 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.

The Collectors Universe, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11345

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 nine months of fiscal 2012, making our operating results more vulnerable to conditions that could adversely affect the precious metals and coin markets ; the risks that the economic recovery may remain sluggish or stall, that economic conditions may deteriorate as a result of events outside of our control, including the European sovereign debt crisis, concerns regarding the United States deficit or international tensions that could cause oil prices to increase or that the increases in gold and silver prices may slow or even decline, any 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 recession 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 and Asia 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.

         
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,
  2012 2011 2012 2011
Net Revenues:        
Grading, authentication and related services $ 13,003 $ 12,555 $ 36,210 $ 31,630
Product sales 79 263 416 544
  13,082 12,818 36,626 32,174
Cost of revenues:        
Grading, authentication and related services 4,989 4,623 14,019 12,186
Product sales 75 284 486 391
  5,064 4,907 14,505 12,577
         
Gross profit 8,018 7,911 22,121 19,597
         
Operating expenses:        
Selling and marketing expense 1,869 1,585 5,087 4,426
General and administrative expenses 3,235 3,013 9,732 8,469
Total operating expenses 5,104 4,598 14,819 12,895
         
Operating income 2,914 3,313 7,302 6,702
         
Interest income and other expense, net  26 36 63 88
Income before provision for income taxes 2,940 3,349 7,365 6,790
Provision for income taxes 1,209 1,381 3,024 2,735
Income from continuing operations 1,731 1,968 4,341 4,055
Income (loss) from discontinued operations, net of income taxes  7 -- (43) (35)
Net income  $ 1,738 $ 1,968 $ 4,298 $ 4,020
         
Net income per basic share:        
Income from continuing operations $ 0.22 $ 0.25 $ 0.55 $ 0.53
Income (loss) from discontinued operations -- -- (0.01) (0.01)
Net income per basic shares $ 0.22 $ 0.25 $ 0.54 $ 0.52
         
Net income per diluted share:        
Income from continuing operations $ 0.22 $ 0.25 $ 0.54 $ 0.52 
Income (loss) from discontinued operations -- -- -- --
Net income per diluted shares $ 0.22 $ 0.25 $ 0.54 $ 0.52
         
Weighted average shares outstanding:        
Basic 7,922 7,727 7,893 7,672
Diluted 8,020 7,841 7,993 7,795
Dividends declared per common share $ 0.325 $ 0.325 $ 0.975 $ 0.95
         

 

     
COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, except per share data)
(unaudited)
     
  March 31, June 30,
ASSETS 2012 2011
Current assets:    
 Cash and cash equivalents $ 20,456 $ 21,926
 Accounts receivable, net of allowance of $68 at March 31, 2012 and $66 at June 30, 2011 2,542 1,534
 Refundable income taxes 60 60
 Inventories, net 2,289 1,442
 Prepaid expenses and other current assets 1,250 959
 Deferred income tax assets 739 1,769
 Notes receivable from sale of net assets of discontinued operations 145 50
 Current assets of discontinued operations 27 27
 Total current assets 27,508 27,767
     
 Property and equipment, net 1,868 1,301
 Goodwill 2,083 2,083
 Intangible assets, net 1,887 1,145
 Deferred income tax assets 2,187 2,956
 Notes receivable from sale of net assets of discontinued operations, less current portion -- 135
 Other assets, including coin inventory of $750 at June 30, 2011 167 942
 Non-current assets of discontinued operations 182 182
  $ 35,882 $ 36,511
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
 Accounts payable $ 1,558 $ 1,390
 Accrued liabilities 1,595 1,415
 Accrued compensation and benefits 2,311 2,383
 Income taxes payable 111 125
 Deferred revenue 2,672 2,417
 Current liabilities of discontinued operations 786 743
 Total current liabilities 9,033 8,473
     
Deferred rent 440 396
Non-current liabilities of discontinued operations 2,258 2,572
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; 8,107 and 7,943 issued and outstanding at March 31, 2012 and at June 30, 2011, respectively  
 
8
 
 
8
 Additional paid-in capital 72,902 70,402
 Accumulated deficit (48,759) (45,340)
 Total stockholders' equity 24,151 25,070
  $ 35,882 $ 36,511
CONTACT: Joseph Wallace

         Chief Financial Officer

         Collectors Universe

         949-567-1245

         Email: jwallace@collectors.com

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Source: Collectors Universe, Inc.

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