Collectors Universe, Inc.
Nov 4, 2015
PDF
Add to Briefcase

Collectors Universe Reports Financial Results for Q1, 2016

NEWPORT BEACH, Calif., Nov. 4, 2015 (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 first quarter of fiscal year 2016.

Operational and Financial Highlights:

Commentary and Outlook

Robert Deuster, Chief Executive Officer, stated, "On balance our businesses performed well this last quarter, given that the activity in commemorative coins was down compared to last year's successful Baseball HOF and Kennedy modern coin programs. We saw growth in our sports/autographs business. Despite the revenue reduction, our operating margins continued to be very healthy. I am also pleased to announce that we launched our Collectors.com collectibles search engine in August after a significant development effort in FY2015. This enhanced search engine is geared towards the collector who is seeking to find a sought-after collectible from a single source. We continue to be optimistic about the markets we serve and the new capabilities we are bringing to market to support our future growth."

Conference Call and Webcast

Collectors Universe will host a conference call to discuss results on Wednesday, November 4, 2015 at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may participate in the conference call by dialing 888-203-7667 or 719-457-2080, five to ten minutes prior to the initiation of the call. A replay of the conference call will be available through November 18, 2015 by dialing 888-203-1112 or 719-457-0820 and entering access code 5718240#. A live webcast of the conference call will also be available on the Collectors Universe website, www.collectorsuniverse.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 and memorabilia ("collectibles"). The Company also compiles and publishes authoritative information about United States and world coins, collectible trading cards and sports memorabilia ("collectibles"), 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.collectorsuniverse.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 expectations regarding our future financial performance that are expressed in, or that may be implied or inferred from the discussion of our operating results in this news release. 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 historically has generated more than 60% of our consolidated revenues and a substantial portion of our operating income , making our operating results more vulnerable to conditions that could adversely affect or cause stagnation in the prices of precious metals and collectible coins; the risks that the economic recovery may stall, or that domestic or international economic conditions may deteriorate as a result of events outside of our control, that could lead to reductions in the demand for our collectibles authentication and grading services and, consequently, in our revenues and operating results; the risk that the weakness or volatility of economic conditions in the United States and worldwide 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 risks that claims under our coin and trading card authentication and grading warranties will increase substantially and that the warranty reserves we maintain for such claims, will, prove to be inadequate, which could cause our gross margin and operating results to decline or cause us to incur operating losses; 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 risks and added complexity of conducting business overseas; 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.

Additional information regarding these risks and other risks and uncertainties to which our business is subject is contained in Item 1A, entitled "Risk Factors", in our Annual Report on Form 10-K for our fiscal year ended June 30, 2015 which we filed with the Securities and Exchange Commission on August 27, 2015 and readers of this news release are urged to review the discussion of those risks and uncertainties in that Report. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. 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 filed with the Securities and Exchange Commission, which speak only as of their respective dates. We also disclaim any obligation to update or revise any of the forward-looking statements contained in this news release or in our Annual Report on Form 10-K, as a result of new information, future events or otherwise, except as may be required by law or NASDAQ rules.

- tables to follow - 

 
COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except per share data)
(Unaudited)
     
  Three Months Ended
  September 30,
  2015 2014
Net revenues:    
Grading, authentication and related services $ 14,613 $ 16,169
Product sales 5 9
  14,618 16,178
Cost of revenues:    
Grading, authentication and related services 5,139 5,778
Product sales 8 18
  5,147 5,796
Gross profit 9,471 10,382
Operating Expenses:    
Selling and marketing expenses 2,169 2,367
General and administrative expenses 4,107 4,990
Total operating expenses 6,276 7,357
Operating income 3,195 3,025
Interest and other income, net  (26) 6
Income before provision for income taxes 3,169 3,031
Provision for income taxes 1,226 1,249
Income from continuing operations 1,943 1,782
Income (loss) from discontinued operations, net of income taxes (12) 22
Net income $ 1,931 $ 1,804
     
Net income per basic share:    
Income from continuing operations $ 0.23 $ 0.21
Income (loss) from discontinued operations  -- 0.01
Net income $ 0.23 $ 0.22
     
Net income per diluted share:    
Income from continuing operations $ 0.23 $ 0.21
Income (loss) from discontinued operations -- --
Net income $ 0.23 $ 0.21
     
Weighted average shares outstanding:    
Basic 8,434 8,326
Diluted 8,534 8,502
Dividends declared per common share $ 0.35 $ 0.325
     
Note:    
  Non-cash stock-based compensation included above $ 151 $ 932
 
COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, except per share data)
(Unaudited) 
     
  September 30, June 30,
ASSETS 2015 2015
Current assets:    
Cash and cash equivalents $ 14,663 $ 17,254
Accounts receivable, net of allowance of $32 and $33 at September 30, 2015 and June 30, 2015, respectively  2,639 2,460
Inventories, net 1,778 1,619
Prepaid expenses and other current assets 930 940
Deferred income tax assets 1,599 1,599
Total current assets 21,609 23,872
     
Property and equipment, net 2,290 2,326
Goodwill 2,083 2,083
Intangible assets, net 1,669 1,558
Deferred income tax assets 1,945 1,945
Other assets  346 236
Non-current assets of discontinued operations 182 182
  $ 30,124 $ 32,202
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $ 2,220 $ 1,961
Accrued liabilities 2,572 2,898
Accrued compensation and benefits 2,062 3,890
Income taxes payable 1,577 521
Deferred revenue 2,385 2,621
Current liabilities of discontinued operations 732 778
Total current liabilities 11,548 12,669
     
Deferred rent 410 422
Non-current liabilities of discontinued operations 542 642
     
Commitments and contingencies     
     
Stockholders' equity:    
Preferred stock, $.001 par value; 3,000 shares authorized; no shares issued or outstanding -- --
Common stock, $.001 par value; 20,000 shares authorized; 8,882 issued and outstanding at both September 30, 2015 and June 30, 2015. 9 9
Additional paid-in capital 79,997 79,848
Accumulated deficit (62,382) (61,388)
Total stockholders' equity 17,624 18,469
  $ 30,124 $ 32,202
 
COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
     
  Three Months Ended
  September 30,
  2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 1,931 $ 1,804
Discontinued operations 12 (22)
Income from continuing operations 1,943 1,782
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:    
Depreciation and amortization expense 341 341
Stock-based compensation expense 151 932
Provision for bad debts 1 --
Provision for inventory write-down 9 67
Provision for warranty 107 130
Gain on sale of property and equipment (4) (1)
Change in operating assets and liabilities:    
Accounts receivable (182) (180)
Inventories (168) (391)
Prepaid expenses and other 10 527
Other assets (111) 13
Accounts payable and accrued liabilities (55) (335)
Accrued compensation and benefits (1,829) (1,786)
Income taxes payable 1,054 660
Deferred revenue (236) (182)
Deferred rent (12) (8)
Net cash provided by operating activities of continuing operations 1,019 1,569
Net cash used in operating activities of discontinued businesses (157) (168)
Net cash provided by operating activities 862 1,401
     
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from sale of business 3 76
Capital expenditures (188) (44)
Capitalized software (202) (16)
Patents and other intangibles (20) (2)
Proceeds from sale of property and equipment -- 2
Net cash used in investing activities (407) 16
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
Dividends paid to common stockholders (3,046) (2,738)
Payments for retirement of common stock -- (440)
Net cash used in financing activities (3,046) (3,178)
     
Net decrease in cash and cash equivalents (2,591) (1,761)
Cash and cash equivalents at beginning of period 17,254 19,909
Cash and cash equivalents at end of period $ 14,663 $ 18,148
     
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
Interest paid during the period $ -- $ --
Income taxes paid during the period $ 165 $ 602
CONTACT: Joseph Wallace

         Chief Financial Officer

         Collectors Universe

         949-567-1245

         Email: jwallace@collectors.com

Collectors Universe, Inc. Logo

Source: Collectors Universe, Inc.

News Provided by Acquire Media