0001437749-15-016678.txt : 20150901 0001437749-15-016678.hdr.sgml : 20150901 20150901124232 ACCESSION NUMBER: 0001437749-15-016678 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20150827 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150901 DATE AS OF CHANGE: 20150901 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLLECTORS UNIVERSE INC CENTRAL INDEX KEY: 0001089143 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 330846191 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34240 FILM NUMBER: 151086800 BUSINESS ADDRESS: STREET 1: 1921 E. ALTON AVENUE CITY: SANTA ANA STATE: CA ZIP: 92705 BUSINESS PHONE: 9495671234 MAIL ADDRESS: STREET 1: 1921 E. ALTON AVENUE CITY: SANTA ANA STATE: CA ZIP: 92705 8-K 1 clct20150831_8k.htm FORM 8-K clct20150831_8k.htm

  



 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 27, 2015

 

COLLECTORS UNIVERSE, INC. 

(Exact name of registrant as specified in its charter)

 

Delaware

0-27887

33-0846191

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

 

 

1921 E. Alton Avenue, Santa Ana, California

92705

(Address of principal executive offices)

(Zip Code)

  

Registrant’s telephone number, including area code: (949) 567-1234

 

N/A 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



  

 
 

 

 

Item 2.02

Results of Operations and Financial Condition

 

On August 27, 2015, Collectors Universe, Inc. (the “Company”) issued a press release announcing its consolidated financial results for its fourth quarter and fiscal year 2015, which ended on June 30, 2015. A copy of that press release is attached as Exhibit 99.1, and by this reference is incorporated into, this Current Report on Form 8-K.

 

Item 7.01

Regulation FD Disclosure

 

On August 27, 2015 the Company issued a press release announcing the launch of its Collectibles Aggregation Service, Collectors.com. A copy of that press release is attached as Exhibit 99.2, and by this reference is incorporated into, this Current Report on Form 8-K.

 

In accordance with General Instruction B.2 of Form 8-K, information in Item 2.02 and Item 7.01 of this Report, and Exhibits  99.1 and 99.2 hereto, are being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information or such Exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”).

 

Item 9.01

Financial Statements and Exhibits.

 

(d)     Exhibits.

 

Exhibit No.

 

Description

     

99.1

 

Press release issued August 27, 2015 by the Company, Inc. announcing its consolidated financial results for its fourth quarter and fiscal year ended June 30, 2015.

     

99.2

 

Press release issued August 27, 2015 by the Company announcing the launch of its Collectibles Aggregator Service, Collectors.com.

  

 
 2

 

 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  

  

COLLECTORS UNIVERSE, INC.

 

 

 

   

  

  

 

 

Dated: September 1, 2015

By:

 /s/ JOSEPH J. WALLACE

 
       
 

  

Joseph J. Wallace, Chief Financial Officer

 
       

  

 
 S-1

 

 

EXHIBIT INDEX

 

 

Exhibit No.

 

Description

     

99.1

 

Press release issued on August 27, 2015 by the Company announcing its consolidated financial results for its fiscal 2015 fourth quarter and fiscal year ended June 30, 2015.

     

99.2

 

Press release issued August 27, 2015 by the Company announcing the launch of its Collectibles Aggregator Service, Collectors.com.

 

 

 

E-1

EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

 

 

Exhibit 99.1

 

 

Collectors Universe Reports Financial Results for FY 2015

 

Record Service Revenues generated for the year 

 

NEWPORT BEACH, CA – August 27, 2015 — 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 fourth quarter and fiscal year 2015.

 

Operational and Financial Highlights:

 

 

For fiscal year 2015, services revenues increased by $1.1 million or 2% to a record $61.6 million from the previous record of $60.5 million established in fiscal year 2014. That increase was driven by a $0.8 million or 6% growth in our cards and autographs business. Coin service revenues for the year were substantially unchanged as compared to fiscal year 2014.

 

 

In the fourth quarter of fiscal 2015, service revenues declined by $1.3 million, or 8%, to $15.2 million as compared to $16.5 million in the fourth quarter of fiscal 2014. That decline was driven by a $1.5 million, or 13%, decrease in coin service revenues, resulting from lower revenues earned from the Baseball Hall of Fame modern coin program (“HOF”) and a slowing in the coin market. Our cards and autographs revenues increased by 4% in this year’s fourth quarter as compared to the same quarter of fiscal 2014, representing the 20th consecutive quarter of quarter-over-quarter revenue growth for that business.

 

 

Coin service revenues generated by our overseas operations increased to 8% and 7% of service revenues in the fourth quarter and fiscal year 2015, respectively, as compared to 5% and 6%, of service revenues in the corresponding periods of fiscal year 2014, respectively.

 

 

The services gross profit margin was 59% in the fourth quarter of fiscal 2015 as compared to 64% in the fourth quarter of fiscal 2014, reflecting lower margins earned on the HOF revenues and lower average service fees for the authentication and grading of coins in the quarter. The gross profit margins for both fiscal years 2015 and 2014 were consistent at 63%.

 

 

Operating income in this year’s fourth quarter declined to $2.8 million from $3.8 million in last year’s fourth quarter, reflecting the lower service revenues and related gross profit margin, as discussed above, partially offset by a $0.4 million reduction in operating expenses. Operating income for fiscal year 2015 was $12.1 million as compared to $12.5 million in fiscal year 2014, reflecting higher non-cash stock based compensation of $0.3 million and higher litigation related legal costs of $0.4 million.

 

 

Income from continuing operations in the fourth quarter of fiscal 2015 was $1.8 million or $0.21 per diluted share as compared to $2.4 million or $0.29 per diluted share in the fourth quarter of fiscal 2014. In both fiscal years 2015 and 2014, income from continuing operations was $7.4 million and represented $0.87 per diluted share in fiscal year 2015 as compared $0.90 per diluted share, in fiscal year 2014.

 

 

The Company’s cash position as of June 30, 2015 was $17.3 million compared to $19.9 million as of June 30, 2014. Net cash used of $2.6 million in fiscal year 2015 included $11.2 million of cash generated from continuing operations and $11.4 million of cash used to pay dividends to stockholders. The cash generated from continuing operations in fiscal year 2015 was $1.5 million lower than the $12.7 million in fiscal 2014, primarily reflecting the payment of higher annual incentives earned in fiscal 2014 but paid in fiscal year 2015.

  

 
 

 

Collectors Universe, Inc.

Page 2 of 6

 

 

 

On July 28, 2015, we announced our quarterly cash dividend of $0.35 per share, which will be paid on August 28, 2015 to stockholders of record on August 14, 2015.

 

Commentary and Outlook

 

Robert Deuster, Chief Executive Officer, stated, “ While we did not see the revenue benefit from US Mint issues like the Baseball HOF program this fourth quarter and the coin market moderated slightly in the US, primarily due to gold and silver pricing, our grading business expanded internationally and our sports business continued its growth trend producing another record revenue year. Operating margins overall for the Company remained strong as we continue our focus on operational efficiency and increased investments in online tools for customers in our marketplace. We enter FY2016 with similar market conditions in the US, but remain positive about the international programs we have in place.”

 

Conference Call and Webcast

 

Collectors Universe will host a conference call to discuss results on Thursday, August 27, 2015 at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may participate in the conference call by dialing 888-329-8893 or 719-325-2484, five to ten minutes prior to the initiation of the call. A replay of the conference call will be available through September 10, 2015 by dialing 888-203-1112 or 719-457-0820 and entering access code 8526589#. 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 recent trends in 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 of the 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, as a result 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.

 

 
 

 

Collectors Universe, Inc.

Page 3 of 6

  

 

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 today 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.

 

Contact:

Joseph Wallace

Chief Financial Officer

Collectors Universe

949-567-1245

Email: jwallace@collectors.com

 

 

 

- tables to follow - 

 

 
 

 

Collectors Universe, Inc.

Page 4 of 6

  

COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except per share data)

(Unaudited)

 

   

Three Months Ended

June 30,

   

Year Ended

June 30,

 
   

2015

   

2014

   

2015

   

2014

 

Net revenues:

                               

Authentication, grading and related services

  $ 15,248     $ 16,512     $ 61,552     $ 60,468  

Product Sales

    123       35       132       103  
      15,371       16,547       61,684       60,571  

Cost of revenues:

                               

Authentication, grading and related services

    6,209       6,007       22,901       22,541  

Product sales

    106       49       152       122  
      6,315       6,056       23,053       22,663  

Gross profit

    9,056       10,491       38,631       37,908  

Operating expenses:

                               

Selling and marketing expenses

    2,094       2,325       8,896       9,106  

General and administrative expenses

    4,197       4,357       17,627       16,326  

Total operating expenses

    6,291       6,682       26,523       25,432  

Operating income

    2,765       3,809       12,108       12,476  

Interest income and other expense, net

    (1 )     12       (42 )     39  

Income before provision for income taxes

    2,764       3,821       12,066       12,515  

Provision for income taxes

    1,012       1,418       4,682       5,081  

Income from continuing operations

    1,752       2,403       7,384       7,434  

Income (loss) from discontinued operations, net of income taxes

    20       (15 )     17       (75 )

Net income

  $ 1,772     $ 2,388     $ 7,401     $ 7,359  
                                 

Net income per basic share:

                               

Income from continuing operations

  $ 0.21     $ 0.29     $ 0.88     $ 0.91  

Income (loss) from discontinued operations

    -       -       0.01       (0.01 )

Net income per basic share

  $ 0.21     $ 0.29     $ 0.89     $ 0.90  
                                 

Net income per diluted share:

                               

Income from continuing operations

  $ 0.21     $ 0.29     $ 0.87     $ 0.90  

Loss from discontinued operations

    -       -       -       (0.01 )

Net income per diluted share

  $ 0.21     $ 0.29     $ 0.87     $ 0.89  
                                 

Weighted average shares outstanding:

                               

Basic

    8,361       8,223       8,345       8,167  

Diluted

    8,519       8,334       8,518       8,247  

Dividends declared per common share

  $ 0.35     $ 0.325     $ 1.35     $ 1.30  
                                 

Note:

                               

Non-cash stock-based compensation included above

  $ 436     $ 549     $ 2,239     $ 1,946  

 

 
 

 

Collectors Universe, Inc.

Page 5 of 6

  

COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, except per share data)

(Unaudited)

 

   

June 30,

 

 

 

2015

   

2014

 
ASSETS            

Current assets:

               

Cash and cash equivalents

  $ 17,254     $ 19,909  

Accounts receivable, net of allowance of $33 in 2015 and $26 in 2014

    2,460       2,118  

Inventories, net

    1,619       1,888  

Prepaid expenses and other current assets

    940       1,367  

Deferred income tax assets

    1,599       1,719  

Total current assets

    23,872       27,001  
                 

Property and equipment, net

    2,326       2,466  

Goodwill

    2,083       2,083  

Intangible assets, net

    1,558       1,272  

Deferred income tax assets

    1,945       2,204  

Other assets

    236       380  

Non-current assets of discontinued operations

    182       182  
    $ 32,202     $ 35,588  

LIABILITIES AND STOCKHOLDERS’ EQUITY

               

Current liabilities:

               

Accounts payable

  $ 1,961     $ 2,062  

Accrued liabilities

    2,898       2,817  

Accrued compensation and benefits

    3,890       4,139  

Income taxes payable

    521       851  

Deferred revenue

    2,621       2,645  

Current liabilities of discontinued operations

    778       849  

Total current liabilities

    12,669       13,363  
                 

Deferred rent

    422       461  

Non-current liabilities of discontinued operations

    642       1,124  
                 

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; shares outstanding:

8,882 in 2015 and 8,861 in 2014

    9       9  

Additional paid-in capital

    79,848       78,011  

Accumulated deficit

    (61,388 )     (57,380 )

Total stockholders’ equity

    18,469       20,640  
    $ 32,202     $ 35,588  

  

 
 

 

Collectors Universe, Inc.

Page 6 of 6 

  

COLLECTORS UNIVERSE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

   

Year Ended June 30,

 
   

2015

   

2014

 

CASH FLOWS FROM OPERATING ACTIVITIES:

               

Net income

  $ 7,401     $ 7,359  

Adjustments to reconcile net income to net cash provided by operating activities:

               

(Income) loss from discontinued operations

    (17 )     75  

Depreciation and amortization expense

    1,293       1,256  

Stock-based compensation expense

    2,239       1,946  

Provision for bad debts

    8       25  

Provision for inventory write-down

    336       94  

Provision for warranty

    535       791  

Loss on sale of property and equipment

    19       4  

Changes in operating assets and liabilities:

               

Accounts receivable

    (391 )     (95 )

Inventories

    (67 )     (326 )

Prepaid expenses and other

    427       (402 )

Deferred income taxes

    533       (272 )

Other assets

    146       15  

Accounts payable and accrued liabilities

    (604 )     379  

Accrued compensation and benefits

    (249 )     1,459  

Income taxes payable

    (327 )     90  

Deferred revenue

    (24 )     300  

Deferred rent

    (39 )     (13 )

Net cash provided by operating activities of continuing operations

    11,219       12,685  

Net cash used in operating activities of discontinued operations

    (615 )     (569 )

Net cash provided by operating activities

    10,604       12,116  
                 

CASH FLOWS FROM INVESTING ACTIVITIES:

               

Capital expenditures

    (777 )     (1,166 )

Proceeds from sale of property and equipment

    19       7  

Patents and other intangibles

    (57 )     (23 )

Proceeds from sale of business

    116       18  

Capitalized software development costs

    (441 )     (191 )

Purchase of business

    (200 )     -  

Net cash used in investing activities

    (1,340 )     (1,355 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES:

               

Proceeds from exercise of stock options

    -       1,354  

Payments for retirement of common stock

    (558 )     (186 )

Dividends paid to common stockholders

    (11,361 )     (10,731 )

Net cash used in financing activities

    (11,919 )     (9,563 )

Increase (decrease) in cash and cash equivalents

    (2,655 )     1,198  

Cash and cash equivalents at beginning of year

    19,909       18,711  

Cash and cash equivalents at end of year

  $ 17,254     $ 19,909  
                 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

               

Income taxes paid during the period

  $ 4,556     $ 5,217  
EX-99.2 3 ex99-2.htm EXHIBIT 99.2 ex99-2.htm

Exhibit 99.2

 

 

Collectors Universe Launches

Collectibles Aggregator Service, Collectors.com

 

NEWPORT BEACH, Calif., August 27, 2015 -- Collectors Universe, Inc. (NASDAQ: CLCT), a leading provider of value-added authentication and grading services for high-value collectibles, today announced the launch of Collectors.com (patent pending) at www.Collectors.com. At its launch, the new website provides information on the availability of more than 9 million collectibles currently offered for sale by 53,268 sellers from listings on 542 websites, with an aggregate value, based on their list prices, of $1,011,000,000.

 

“Collectors.com is a scalable website that we have designed to rapidly grow beyond its current $1 billion in listings given its aggregator technology,” said Robert Deuster, Chief Executive Officer of Collectors Universe.

 

Given its cloud-based computing power, the website will enable users to access millions of listings, giving them unparalleled reach for finding new collectibles. Collectors.com allows users to find collectibles using a wide range of filters including price, seller and condition.

 

Collectors.com launched with aggregated collectibles listings for rare coins, paper money, trading cards, autographs and stamps. The site plans on expanding to dozens of other popular high value collectibles categories with future rollouts.

 

The system is leveraging the power of Amazon’s AWS cloud infrastructure.

 

“According to publicly available information, Amazon is the leading provider of cloud services, with more applications deployed than any other cloud provider, and Amazon was the industry leader in uptime in 2014 with a 99.9974% uptime. By leveraging Amazon’s infrastructure, not only are we able to process large amounts of data at high speed, we will also be able to archive that data to build an extensive and comprehensive database of collectibles pricing and value information. If it’s out there, Collectors.com will help you find it,” said Deuster.

 

Collectors.com was created because of the frustration collectors often face at having to individually log on and search through dozens of websites, one-at-a-time, to find collectibles.

 

Don Willis, President of the Professional Coin Grading Service division of Collectors Universe, explained the website’s origins: “Everyone collects something. As an avid collector, I used to spend hours every week searching websites and marketplaces for items I was collecting. I tried using traditional search tools but they returned volumes of disorganized results that were not helpful in finding what I was searching for. My searches were time consuming and typically ended in frustration. The need for a collectibles aggregator was obvious.”

 

"We assembled a superb technical team who, combined with the decades of collectibles experience found within Collectors Universe, Inc., created this value-added aggregator. We have been beta testing Collectors.com for the past 8 months within the PCGS (coins) and PSA (cards) divisions of Collectors Universe Inc., and in the process of developing it we have discovered many new and exciting applications that we believe will benefit both buyers and sellers. Our objective is to add those applications as well as additional collectible categories to our website over time.” said Willis.

 

“Collectors.com does not buy or sell collectibles. It simply facilitates collectibles purchase and sale transactions between buyers and sellers. For the serious collector, Collectors.com is a powerful search tool that actively monitors the Internet. For the curious Collectors.com offers an exciting opportunity to discover items of potential interest. For sellers, Collectors.com adds a new platform where thousands of potential buyers can easily find their products and quickly link to their websites for purchase,” he explained.

 

 
 

 

Collectors Universe, Inc.

Page 2 of 3

 

 

In the competitive hunt for collectibles, our objective is to give our users the best chance to “Find it First,” emphasized Willis while using the website’s tagline.

 

An informative video, which explains the simple-to-use Collectors.com system, can be viewed on the home page, www.Collectors.com.

 

Collectors.com, patent pending, is a wholly-owned business unit of Collectors Universe, Inc. (NASDAQ:CLCT), the parent company of Professional Coin Grading Service (PCGS) and Professional Sports Authenticator (PSA), among other leading collecting-based services.

 

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 recent trends in 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 of the 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, as a result 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 today 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.

 

 
 

 

Collectors Universe, Inc.

Page 3 of 3

 

 

Contact:

Joseph Wallace

Chief Financial Officer

Collectors Universe

949-567-1245

Email: jwallace@collectors.com

 

 

 

 

 

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