Collectors Universe Announces Financial Results For Second Fiscal Quarter.Business Editors NEWPORT BEACH Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , Calif.--(BUSINESS WIRE)--Feb. 3, 2000 Collectors Universe Inc. (Nasdaq:CLCT CLCT Calcite (lithological term) ) Thursday Thursday: see week. announced financial results for the second fiscal quarter and six months ended Jan. 1, 2000. Net revenues for the second quarter rose to $9,762,000, an increase of 133% over net revenues of $4,194,000 for the second quarter of the prior fiscal year. Grading and authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. revenues increased to $5,736,000 and auction revenues increased to $4,026,000 in the second quarter, an increase of 58% and 613%, respectively, over the prior year's second quarter. Net income of $509,000, or $0.02 per share, was recorded for the current second quarter compared with a net loss of $62,000, or $0.00 per share, for the comparable period last year. Net income for the second quarter, excluding charges for amortization of goodwill, was $672,000, or $0.03 per share, compared with a net loss of $54,000, or $0.00 per share, in the second quarter of the prior fiscal year. For the second quarter of the current fiscal year, the company provided for income taxes at a 47.3% rate. For the prior fiscal year, the Company was taxed as an S Corporation and provided for income taxes at a 1.5% rate. For the six months ended Jan. 1, 2000, net revenues increased 130% to $18,727,000, from $8,151,000 reported for the corresponding prior year period. Grading and authentication revenues increased to $11,670,000 and auction revenues rose to $7,057,000 for the current six month period, an increase of 64% and 577%, respectively, over the prior year's comparable six month period. Net income for the current six-month period advanced to $454,000, or $0.02 per share, from $151,000, or $0.01 per share, for the prior year period. Net income for the six months ended Jan. 1, 2000, excluding charges for amortization of goodwill, was $769,000, or $0.03 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared with net income, excluding charges for amortization of goodwill, of $167,000, or $0.01 per share, in the prior fiscal year's comparable period. For the six-month period of the current fiscal year, the company provided for income taxes at a 51.6% rate. For the prior fiscal year, the company was taxed as an S Corporation and provided for income taxes at a 1.5% rate. &uot;We see tremendous opportunity to leverage our leading position in authentication and grading to become an integrated, multi-service provider for the collectibles market,&uot; said David Hall David Hall may refer to:
&uot;As part of this strategy, we have recently commenced stamp grading, which we believe could become a significant portion of our overall grading business within a few years. Additionally, with our proprietary synthetic DNA-tagging system, we are able to offer an improved method by which dealers and collectors can verify (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. the authenticity The correct attribution of origin such as the authorship of an e-mail message or the correct description of information such as a data field that is properly named. Authenticity is one of the six fundamental components of information security (see Parkerian Hexad). of sports memorabilia The term sports memorabilia usually refers to anything that can be directly connected to a sports event or personality. These items are generally gathered by fans of the particular sport, athlete or team that the item signifies or by collectors who find value in the rarity they sell and purchase, which we believe will reduce the incidence of fraud in the sale of sports memorabilia. &uot;The NFL NFL abbr. National Football League NFL (US) n abbr (= National Football League) → Fußball-Nationalliga selected our PSA/DNA division to use this DNA-tagging system to 'mark' all the footballs used in Super Bowl XXXIV Super Bowl XXXIV was the 34th championship game of the modern National Football League (NFL). The game was played on January 30, 2000, at the Georgia Dome in Atlanta, Georgia, following the 1999 regular season. ; and Major League Baseball "MLB" and "Major Leagues" redirect here. For other uses, see MLB (disambiguation) and Major Leagues (disambiguation). Major League Baseball (MLB) is the highest level of play in North American professional baseball. used our DNA-tagging system to 'mark' baseballs and bases used in the 1999 World Series. We believe these represent exciting revenue growth opportunities for our Company and will become part of a 'suite' of services offered to the collectibles market,&uot; concluded Hall. Collectors Universe is a leading provider of value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. to collectors and dealers of coins, sportscards, sports memorabilia, rare currency and rare records. Since 1986, the company has authenticated au·then·ti·cate tr.v. au·then·ti·cat·ed, au·then·ti·cat·ing, au·then·ti·cates To establish the authenticity of; prove genuine: a specialist who authenticated the antique samovar. and graded over 8.2 million collectible collectible An asset of limited supply that is sought for a variety of reasons including, it is hoped, an increase in value. Stamps, antiques, coins, and works of art are among the many things usually classified as collectibles. coins and sportscards with a declared value of over $9.3 billion. The company also conducts high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. collectible auctions in a multi-venue format including Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , telephone and in-person adj. 1. undertaken by an individual in person; as, an in-person appearance s>. Adj. 1. in-person - an appearance carried out personally in someone else's physical presence; "he carried out the negotiations in person"; "a bidding. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including, but not limited to: our company's limited operating history, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, grading submission rates submission rate percentage of cows in a herd which come on heat and which are mated during a specified period, usually a month; the difference, i.e. those which come on heat and are not mated, are the deferred mating group. for rare coins and sportscards, realized average grading fees, competition, a possible decline in the popularity of some high-end collectibles, current and projected losses in our auction business segment, inability to increase auction revenues, the limited availability When customers of the PSTN make telephone calls, they commonly make use of a telecommunications network called a switched-circuit network. In a switched-circuit network, devices known as switches are used to connect the caller to the callee. of high-end collectibles and the risk that Internet based e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. providers could make exclusive arrangements with our competitors or other service providers. Certain of these risks and uncertainties, in addition to other risks, are more fully described in our Prospectus dated Nov. 4, 1999, which was part of our Registration Statement on Form S-1 filed with the Securities and Exchange Commission and the company's Form 10-Q Form 10-Q See 10-Q. for the first fiscal quarter ended Oct. 2, 1999.
COLLECTORS UNIVERSE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
Jan. 1, Dec. 31, Jan. 1, Dec. 31,
2000 1998 2000 1998
Net revenues $ 9,762 $ 4,194 $ 18,727 $ 8,151
Cost of revenues 4,255 1,515 8,292 2,852
Gross profit 5,507 2,679 10,435 5,299
Operating expenses:
Selling, general
and administrative
expenses 4,556 2,729 9,320 5,099
Amortization of
intangibles 199 8 394 16
Stock-based
compensation 18 -- 33 --
Total operating
expenses 4,773 2,737 9,747 5,115
Operating income
(loss) 734 (58) 688 184
Interest income,
net 232 7 250 13
Minority interest -- (12) -- (44)
Income (loss)
before income
taxes 966 (63) 938 153
Provision (benefit)
for income taxes 457 (1) 484 2
Net income (loss) $ 509 $ (62) $ 454 $ 151
Net income (loss)
per share, basic
and diluted $ 0.02 $ (0.00) $ 0.02 $ 0.01
Weighted average
shares outstanding:
Basic 22,914 16,097 21,622 16,095
Diluted 24,376 16,097 22,872 16,095
Results excluding
amortization of
goodwill (see
Note 1 below):
Operating income
(loss), excluding
amortization of
goodwill $ 933 $ (50) $ 1,082 $ 200
Net income (loss),
excluding
amortization of
goodwill $ 672 $ (54) $ 769 $ 167
Net income (loss)
per share,
excluding
amortization of
goodwill
Basic $ 0.03 $ (0.00) $ 0.04 $ 0.01
Diluted $ 0.03 $ (0.00) $ 0.03 $ 0.01
Weighted average
shares outstanding
used in computation
of net income (loss),
excluding
amortization of
goodwill, per share
Basic 22,914 16,097 21,622 16,095
Diluted 24,376 16,097 22,872 16,095
Note 1: Results for the three and six months period ended Jan. 1, 2000
and Dec. 31, 1998 are presented for informational purposes
only and are not prepared in accordance with general accepted
accounting principles. These results present the operating
results of Collectors Uninverse Inc., excluding charges of
$199,000 and $8,000 for the three month period and $394,000
and $16,000 for the six month period ended Jan. 1, 2000 and
Dec. 31, 1998, respectively, relating to the amortization of
goodwill.
COLLECTORS UNIVERSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
January 1, June 30,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 22,267 $ 1,852
Accounts receivable, net 2,324 2,026
Inventories, net 4,096 3,148
Prepaid expenses and other 802 514
Deferred taxes 218 218
Total current assets 29,707 7,758
Fixed assets, net 1,435 1,201
Notes receivable from related party 168 178
Other assets 362 167
Goodwill, net 5,505 5,599
Deferred taxes 637 637
$ 37,814 $ 15,540
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,666 $ 2,430
Accrued liabilities 1,002 856
Accrued compensation and benefits 498 524
Deferred revenue 1,895 1,616
Income taxes payable 501 16
Total current liabilities 5,562 5,442
Shareholders' equity:
Common stock 24 20
Additional paid-in capital 33,281 11,586
Retained earnings (deficit) (1,053) (1,508)
Total shareholders' equity 32,252 10,098
$ 37,814 $ 15,540
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