Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Entity Registrant Name | COLLECTORS UNIVERSE INC | |
Entity Central Index Key | 1089143 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 8,878,476 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $17,329,000 | $19,909,000 |
Accounts receivable, net of allowance of $29 and $26 at March 31, 2015 and June 30, 2014, respectively | 2,370,000 | 2,118,000 |
Inventories, net | 2,239,000 | 1,888,000 |
Prepaid expenses and other current assets | 904,000 | 1,367,000 |
Deferred income tax assets | 1,719,000 | 1,719,000 |
Total current assets | 24,561,000 | 27,001,000 |
Property and equipment, net | 2,428,000 | 2,466,000 |
Goodwill | 2,083,000 | 2,083,000 |
Intangible assets, net | 1,448,000 | 1,272,000 |
Deferred income tax assets | 2,205,000 | 2,204,000 |
Other assets | 256,000 | 380,000 |
Non-current assets of discontinued operations | 182,000 | 182,000 |
Total Assets | 33,163,000 | 35,588,000 |
Current liabilities: | ||
Accounts payable | 1,570,000 | 2,062,000 |
Accrued liabilities | 2,738,000 | 2,817,000 |
Accrued compensation and benefits | 3,534,000 | 4,139,000 |
Income taxes payable | 1,255,000 | 851,000 |
Deferred revenue | 2,848,000 | 2,645,000 |
Current liabilities of discontinued operations | 842,000 | 849,000 |
Total current liabilities | 12,787,000 | 13,363,000 |
Deferred rent | 436,000 | 461,000 |
Non-current liabilities of discontinued operations | 741,000 | 1,124,000 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value; 3,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $.001 par value; 20,000 shares authorized; 8,880 and 8,861 issued and outstanding at March 31, 2015 and June 30, 2014, respectively. | 9,000 | 9,000 |
Additional paid-in capital | 79,310,000 | 78,011,000 |
Accumulated deficit | -60,120,000 | -57,380,000 |
Total stockholders’ equity | 19,199,000 | 20,640,000 |
Total liability and stockholders’ equity | $33,163,000 | $35,588,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Accounts receivable, allowance | $29,000 | $26,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 8,880,000 | 8,861,000 |
Common stock, shares outstanding (in shares) | 8,880,000 | 8,861,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenues | $15,987,000 | $16,308,000 | $46,313,000 | $44,024,000 |
Cost of revenues | 5,875,000 | 6,084,000 | 16,738,000 | 16,620,000 |
Gross profit | 10,112,000 | 10,224,000 | 29,575,000 | 27,404,000 |
Operating expenses: | ||||
Selling and marketing expenses | 2,285,000 | 2,465,000 | 6,799,000 | 6,779,000 |
General and administrative expense | 4,155,000 | 4,046,000 | 13,433,000 | 11,958,000 |
Total operating expenses | 6,440,000 | 6,511,000 | 20,232,000 | 18,737,000 |
Operating income | 3,672,000 | 3,713,000 | 9,343,000 | 8,667,000 |
Interest income and other Income (expense), net | -40,000 | 3,000 | -42,000 | 27,000 |
Income before provision for income taxes | 3,632,000 | 3,716,000 | 9,301,000 | 8,694,000 |
Provision for income taxes | 1,450,000 | 1,581,000 | 3,670,000 | 3,663,000 |
Income from continuing operations | 2,182,000 | 2,135,000 | 5,631,000 | 5,031,000 |
Loss from discontinued operations, net of income taxes | -12,000 | -16,000 | -3,000 | -61,000 |
Net income | $2,170,000 | $2,119,000 | $5,628,000 | $4,970,000 |
Net income per basic share: | ||||
Income from continuing operations (in dollars per share) | $0.26 | $0.26 | $0.68 | $0.62 |
Loss from discontinued operations (in dollars per share) | ($0.01) | ($0.01) | ||
Net income per basic share (in dollars per share) | $0.26 | $0.26 | $0.67 | $0.61 |
Net income per diluted share: | ||||
Income from continuing operations (in dollars per share) | $0.26 | $0.26 | $0.66 | $0.61 |
Loss from discontinued operations (in dollars per share) | ($0.01) | ($0.01) | ||
Net income per diluted share (in dollars per share) | $0.25 | $0.26 | $0.66 | $0.60 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 8,353 | 8,186 | 8,339 | 8,149 |
Diluted (in shares) | 8,531 | 8,274 | 8,517 | 8,219 |
Dividends declared per common share (in dollars per share) | $0.35 | $0.33 | $1 | $0.98 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $5,628,000 | $4,970,000 |
Discontinued operations | 3,000 | 61,000 |
Income from continuing operations | 5,631,000 | 5,031,000 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization expense | 974,000 | 907,000 |
Stock-based compensation expense | 1,803,000 | 1,398,000 |
Provision for bad debts | 5,000 | 19,000 |
Provision for inventory write-down | 184,000 | 53,000 |
Provision for warranty | 380,000 | 587,000 |
Gain on sale of property and equipment | -1,000 | -2,000 |
Loss on sale of business | 1,000 | |
Change in operating assets and liabilities: | ||
Accounts receivable | -261,000 | -493,000 |
Inventories | -536,000 | -218,000 |
Prepaid expenses and other | 463,000 | -220,000 |
Other assets | 125,000 | -4,000 |
Accounts payable and accrued liabilities | -904,000 | 300,000 |
Accrued compensation and benefits | -605,000 | 647,000 |
Income taxes payable | 404,000 | 148,000 |
Deferred revenue | 204,000 | 390,000 |
Deferred rent | -25,000 | -5,000 |
Net cash provided by operating activities of continuing operations | 7,842,000 | 8,538,000 |
Net cash used in operating activities of discontinued businesses | -471,000 | -429,000 |
Net cash provided by operating activities | 7,371,000 | 8,109,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of business | 80,000 | 15,000 |
Purchase of business | -200,000 | 0 |
Capital expenditures | -624,000 | -1,125,000 |
Capitalized software | -250,000 | -110,000 |
Patents and other intangibles | -40,000 | -14,000 |
Proceeds from sale of property and equipment | 2,000 | 7,000 |
Net cash used in investing activities | -1,032,000 | -1,227,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid to common stockholders | -8,415,000 | -8,046,000 |
Payments for retirement of common stock | -504,000 | -156,000 |
Proceeds from exercise of stock options | 292,000 | |
Net cash used in financing activities | -8,919,000 | -7,910,000 |
Net decrease in cash and cash equivalents | -2,580,000 | -1,028,000 |
Cash and cash equivalents at beginning of period | 19,909,000 | 18,711,000 |
Cash and cash equivalents at end of period | 17,329,000 | 17,683,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid during the period | 0 | 0 |
Income taxes paid during the period | $3,264,000 | $3,479,000 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Significant Accounting Policies [Text Block] | 1 | SUMMARY OF Significant Accounting Policies | |||||||||||||||
Principles of Consolidation | |||||||||||||||||
The accompanying unaudited interim condensed consolidated financial statements include the accounts of Collectors Universe, Inc. and its operating subsidiaries (the “Company”, “we”, “management”, “us”, “our”). At March 31, 2015, our operating subsidiaries were Certified Asset Exchange, Inc. (“CAE”), Collectors Universe (Hong Kong) Limited, Collectors Universe (Shanghai) Limited, and Expos Unlimited, Inc. (“Expos”), all of which are ultimately 100% owned by Collectors Universe, Inc. All significant intercompany transactions and accounts have been eliminated in consolidation. | |||||||||||||||||
Unaudited Interim Financial Information | |||||||||||||||||
The accompanying interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, and Condensed Consolidated Statements of Cash Flows for the periods presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Operating results for the three and nine months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending June 30, 2015 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014, as filed with the SEC (our “Fiscal 2014 10-K”). Amounts related to disclosure of June 30, 2014 balances within these interim condensed consolidated financial statements were derived from the aforementioned audited consolidated financial statements and the notes thereto. | |||||||||||||||||
Reclassification | |||||||||||||||||
s | |||||||||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. | |||||||||||||||||
Revenue Recognition Policies | |||||||||||||||||
We record revenue at the time of shipment of the authenticated and graded collectible to the customer, net of any taxes collected. Due to the insignificant delay between the completion of our grading and authentication services and the shipment of the collectible or high-value asset back to the customer, the time of shipment corresponds to the completion of our authentication and grading services. We recognize revenue for the sale of special coin inserts at the time the customer takes legal title to the insert. Many of our authentication and grading customers prepay our authentication and grading fees when they submit their collectibles to us for authentication and grading. We record those prepayments as deferred revenue until the collectibles have been authenticated and graded and shipped back to them. At that time, we record the revenues from the authentication and grading services we have performed for the customer and deduct this amount from deferred revenue. For certain dealers to whom we extend open account privileges, we record revenue at the time of shipment of the authenticated and graded collectible to the dealer. With respect to our Expos trade show business, we recognize revenue from each show in the period in which it takes place. | |||||||||||||||||
A portion of our net revenues are comprised of subscription fees paid by customers for one year memberships in our Collectors Club. Those membership subscription fees entitle members to access our on-line and printed publications and, in some cases, to receive limited life vouchers for free grading services. We recognize revenue attributable to free grading vouchers on a specific basis and classify those revenues as part of grading and authentication fees. The balance of the membership fee is recognized over the life of the membership on a time-apportioned basis. | |||||||||||||||||
We recognize product sales when items are shipped to customers. Product revenues consist primarily of collectible coins that we purchase pursuant to our coin authentication and grading warranty program. However, those sales are not considered an integral part of the Company’s ongoing revenue generating activities. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results from continuing and discontinued operations could differ from results expected on the basis of those estimates, and such differences could be material to our future results of operations and financial condition. Examples of such estimates that could be material include determinations made with respect to the capitalization and recovery of software development costs, the valuation of stock-based compensation awards and the timing of the recognition of related stock-based compensation expense, the valuation of coin inventory, the amount and assessment of goodwill for impairment, the sufficiency of warranty reserves, the provision or benefit for income taxes and related valuation allowances, and adjustments to the fair value of remaining lease obligations for our discontinued jewelry businesses. These estimates are discussed in more detail in these notes to Condensed Consolidated Financial Statements and in the Critical Accounting Policies and Estimates section of Item 2, | |||||||||||||||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||||||||
, | |||||||||||||||||
contained elsewhere in this Report and in our Fiscal 2014 10-K. | |||||||||||||||||
Goodwill and Other Long-Lived | |||||||||||||||||
Assets | |||||||||||||||||
We evaluate the carrying value of goodwill and indefinite-lived intangible assets at least annually, or more frequently if facts and circumstances indicate that impairment may have occurred. Qualitative factors are considered in performing our goodwill impairment assessment, including the significant excess of fair value over carrying value in prior years, and any material changes in the estimated cash flows of the reporting unit. We also evaluate the carrying values of all other tangible and intangible assets for impairment if circumstances arise in which the carrying values of these assets may not be recoverable on the basis of future undiscounted cash flows. Management has determined that no impairment of goodwill or other long-lived assets had occurred as of March 31, 2015. | |||||||||||||||||
Foreign Currency | |||||||||||||||||
The Company has determined that the U.S. Dollar is the functional currency for its French branch office and its Hong Kong and China subsidiaries. Based on this determination, the Company’s foreign operations are re-measured by reflecting the financial results of such operations as if they had taken place within a U.S. dollar-based economic environment. Fixed assets and other non-monetary assets and liabilities are re-measured from foreign currencies to U.S. dollars at historical exchange rates; whereas cash, accounts receivable and other monetary assets and liabilities are re-measured at current exchange rates. Gains and losses resulting from those re-measurements, which are included in income for the current periods, were not material. | |||||||||||||||||
Stock-Based Compensation Expense | |||||||||||||||||
Stock-based compensation expense is measured at the grant date of an equity-incentive award, based on its estimated fair value, and is recognized as expense over the employee or non-employee director’s requisite service period, which is generally the vesting period of the award. However, if the vesting of a stock-based compensation award is subject to satisfaction of a performance requirement or condition, the stock-based compensation expense is recognized if, and when, management determines that the achievement of the performance requirement or condition (and therefore the vesting of the award) has become probable. If stock-based compensation is recognized due to such a determination, and management subsequently determines that the performance condition was not met and will not be met in future periods, then all expense previously recognized with respect to the performance condition would be reversed. | |||||||||||||||||
Stock Options | |||||||||||||||||
No stock options were granted during the three and nine months ended March 31, 2015 and 2014 and all remaining outstanding options were exercised in the three months ended December 31, 2014. The following table presents information relative to the stock options outstanding under all equity incentive plans as of June 30, 2014 and stock option activity during the nine months ended March 31, 2015. The closing price of our common stock as of June 30, 2014 was $19.59. | |||||||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||||||
Intrinsic | |||||||||||||||||
Value | |||||||||||||||||
Options: | (In | (yrs.) | (In Thousands) | ||||||||||||||
T | |||||||||||||||||
housands) | |||||||||||||||||
Outstanding at June 30, 2014 | 50 | $ | 17.82 | 0.43 | $ | 88 | |||||||||||
Exercised | -38 | $ | 17.82 | - | - | ||||||||||||
Cancelled | -12 | $ | 17.82 | - | - | ||||||||||||
Outstanding at March 31, 2015 | - | ||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
As previously reported, through June 30, 2014 the Company had issued 523,378 shares (net of forfeitures) under the Company’s Long-Term Incentive Plan (“LTIP”) with a grant date fair value of approximately $6,700,000. Based on the level of operating income before stock-based compensation ("OI") achieved in fiscal 2014, a determination was made that the Company had achieved the Threshold Performance Goal and the Intermediate Goal #1 and therefore in accordance with the terms of the LTIP up to 25% of the LTIP shares will vest, of which 12.5% vested upon the determination that the goals had been achieved and 12.5% will vest on June 30, 2015, assuming continuous service by the LTIP participants. Through March 31, 2015, $1,557,000 of expense has been recognized related to the Threshold Performance Goal and Intermediate Goal #1 and an additional $113,000 will be recognized through June 30, 2015 assuming continuous service, such that by June 30, 2015, $1,670,000 of expense will have been recognized related to those performance goals. | |||||||||||||||||
At September 30, 2014, based on the significantly improved level of operating income before stock based compensation in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014, we concluded that it was probable that the Company will achieve the Performance Goal #2 by June 30, 2015. | |||||||||||||||||
In the three months ended December 31, 2014, an additional 18,957 restricted shares with a grant date fair value of $400,000 were issued, with a service inception date of November 19, 2014. The vesting of those shares is conditioned on the Company’s achievement of the same levels of OI as the LTIP participants through June 30, 2018, as indicated in the following table: | |||||||||||||||||
Percent of LTIP | |||||||||||||||||
Shares Vesting | |||||||||||||||||
If in any fiscal year during the term of the Program: | |||||||||||||||||
Intermediate Performance Goal #2 is Achieved | 20% | ||||||||||||||||
Intermediate Performance Goal #3 is Achieved | 25% | ||||||||||||||||
The Maximum Performance Goal is Achieved | 55% | ||||||||||||||||
In the third quarter of fiscal 2015, the Company continued to recognize expense on the assumption it was probable that the Company will achieve Performance Goal #2 by June 30, 2015. Therefore, the Company recognized stock-based compensation expense of approximately $169,000 and $991,000 in three and nine months ended March 31, 2015, respectively, related to that performance goal, representing the expense required to be recognized from the respective service inception dates through March 31, 2015. | |||||||||||||||||
Through March 31, 2015 total stock based compensation recognized for the LTIP shares, since inception of the LTIP program, was approximately $2,549,000. | |||||||||||||||||
At this time it is not considered probable that the Company will achieve additional Performance Goals beyond Performance Goal #2 in fiscal 2015 or future periods. Management will continue to reassess at each reporting date whether any additional stock-based compensation expense should be recognized based on the probability of achieving additional milestones under the LTIP, and the period over which such stock-based compensation expense should be recognized. | |||||||||||||||||
Concentrations | |||||||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. | |||||||||||||||||
Financial Instruments and Cash Balances. | |||||||||||||||||
At March 31, 2015, we had cash and cash equivalents totaling approximately $17,329,000, of which approximately $14,048,000 was invested in money market accounts, and the balance of $3,281,000 was in non-interest bearing bank accounts for general day-to-day operations. Cash in overseas bank accounts was approximately $883,000. | |||||||||||||||||
Substantially all of our cash is deposited at two FDIC insured financial institutions. We maintained cash due from banks, inclusive of cash in overseas accounts, in excess of the banks’ FDIC insured deposit limits of approximately $16,820,000 at March 31, 2015. | |||||||||||||||||
Accounts Receivable. | |||||||||||||||||
A substantial portion of accounts receivable are due from collectibles dealers. Two individual customers accounts receivable balances accounted for 10% of the Company’s total gross accounts receivable balances at March 31, 2015, whereas one customer receivable exceeded 10% of the Company’s total gross amounts receivable balance at June 30, 2014. Management performs an analysis of the expected collectability of accounts receivable based on several factors, including the age and extent of significant past due accounts and economic conditions or trends that may adversely affect the ability of debtors to pay their account receivable balances. Based on that review, management establishes an allowance for doubtful accounts, when deemed necessary. The allowance for doubtful accounts receivable was $29,000 and $26,000 at both March 31, 2015 and June 30, 2014, respectively. Ultimately, management will write-off accounts receivable balances when it is determined that there is no possibility of collection. | |||||||||||||||||
Coin Revenues | |||||||||||||||||
. The authentication, grading and sales of collectible coins, related services and product sales accounted for approximately 69% of our net revenues for both the three and nine months ended March 31, 2015, and 71% and 69% of our net revenues for the three and nine months ended March 31, 2014. | |||||||||||||||||
Customers. | |||||||||||||||||
Five of our coin authentication and grading customers accounted, in the aggregate, for approximately 17% and 13% of our total net revenues in the nine months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||
Inventories | |||||||||||||||||
Our inventories consist primarily of (i) our coin collectibles inventories primarily consisting of coins which we purchased pursuant to our coin authentication and grading program and (ii) consumable supplies and special inserts that we use in our continuing authentication and grading businesses. Coin collectibles inventories are recorded at the lower of cost or estimated market value using the specific identification method. Consumable supplies are recorded at the lower of cost (using the first-in first-out method) or market. Inventories are periodically reviewed to identify slow-moving items, and an allowance for inventory loss is recognized, as considered necessary. It is possible that our estimates of market value of collectible coins in inventory could change due to market conditions in the various collectibles markets served by the Company, which could require us to increase that allowance. | |||||||||||||||||
Capitalized Software | |||||||||||||||||
We capitalize certain costs incurred in the development and upgrading of our software, either from internal or external sources, as part of intangible assets and amortize these costs on a straight-line basis over the estimated useful life of the software of three years. In the three and nine months ended March 31, 2015 we capitalized approximately $217,000 and $250,000, respectively, of software development cost compared with $53,000 and $110,000 in the three and nine months ended March 31, 2014, respectively. In the three and nine months ended March 31, 2015, approximately $20,000 and $98,000, respectively, was recorded as amortization expense for capitalized software compared to $29,000 and $81,000 in the three and nine months ended March 31, 2014, respectively. Planning, training, support and maintenance costs incurred either prior to or following the implementation phase are recognized as expense in the period in which they occur. Management evaluates the carrying value of capitalized software to determine if the carrying value is impaired, and, if necessary, an impairment loss is recorded in the period in which any impairment is determined to have occurred. | |||||||||||||||||
Warranty Costs | |||||||||||||||||
We offer a limited warranty covering the coins and trading cards that we authenticate and grade. Under the warranty, if any collectible coin or trading card that was previously authenticated and graded by us is later submitted to us for re-grading and either (i) receives a lower grade upon that re-submittal or (ii) is determined not to have been authentic, we will offer to purchase the collectible or, in the alternative, at the customer’s option, pay the difference in value of the item at its original grade, as compared with its lower grade. However, this warranty is voided if the collectible, upon re-submittal to us, is not in the same tamper-resistant holder in which it was placed at the time we last graded it. We accrue for estimated warranty costs based on historical trends and related experience. We monitor the adequacy of our warranty reserves on an ongoing basis and significant claims resulting from resubmissions receiving lower grades, or deemed not to be authentic, could result in a material adverse impact on our results of operations. Effective July 1, 2014, the Company reduced its warranty accrual rate on coins and cards based upon a review of the overall level of warranty reserve and the trend in warranty payments over an extended period of time. | |||||||||||||||||
Dividends | |||||||||||||||||
In accordance with the Company’s then quarterly dividend policy, we paid quarterly cash dividends of $0.325 per share of common stock in the first and second quarters of fiscal 2015. In the third quarter of fiscal 2015, the Board of Directors approved an increase in the Company’s quarterly cash dividend to $0.35 per share of common stock, effective in the third quarter of fiscal 2015. The declaration of cash dividends in the future is subject to final determination each quarter by the Board of Directors based on a number of factors, including the Company’s financial performance and its available cash resources, its cash requirements and alternative uses of cash that the Board may conclude would represent an opportunity to generate a greater return on investment for the Company. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, FASB issued an Accounting Standards Update (ASU) No. 2014-09, | |||||||||||||||||
Revenue from Contracts with Customers: Topic 606 | |||||||||||||||||
that affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, | |||||||||||||||||
Revenue Recognition, | |||||||||||||||||
and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, | |||||||||||||||||
Revenue Recognition—Construction-Type and Production-Type Contracts. | |||||||||||||||||
In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, | |||||||||||||||||
Property, Plant, and Equipment, | |||||||||||||||||
and intangible assets within the scope of Topic 350, | |||||||||||||||||
Intangibles—Goodwill and Other) | |||||||||||||||||
are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. | |||||||||||||||||
The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should: identify the contract(s) with a customer, i | |||||||||||||||||
dentify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. | |||||||||||||||||
For public companies, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is evaluating the potential impact of adoption of this ASU on its consolidated financial statements. | |||||||||||||||||
In May 2014, FASB issued an Accounting Standards Update No, 2014-12 on the Accounting for Share-Based Payments when the term of an award provide that a performance target could be achieved after the requisite service period. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period, be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, | |||||||||||||||||
Compensation – Stock Compensation, | |||||||||||||||||
as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award, if the performance target is achieved. | |||||||||||||||||
The updated guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s Condensed Consolidated Financial Statements. | |||||||||||||||||
In August 2014, FASB issued an Accounting Standards Update No. 2014-15 which addresses management’s responsibility in connection with preparing financial statements for each annual and interim reporting period, and requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The update provides guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure. The guidance is effective for the annual period ending after | |||||||||||||||||
December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements and related disclosures. |
Note_2_Inventories
Note 2 - Inventories | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Inventory Disclosure [Text Block] | 2 | INVENTORIES | |||||||
Inventories consist of the following (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 201 | ||||||||
4 | |||||||||
Coins | $ | 600 | $ | 552 | |||||
Other collectibles | 120 | 230 | |||||||
Grading raw materials consumable inventory | 1,990 | 1,392 | |||||||
2,710 | 2,174 | ||||||||
Less inventory reserve | (471 | ) | (286 | ) | |||||
Inventories, net | $ | 2,239 | $ | 1,888 | |||||
The estimated value of coins can be subjective and can vary depending on market conditions for precious metals, the number of qualified buyers for a particular coin and the uniqueness and special features of a particular coin. |
Note_3_Property_and_Equipment
Note 3 - Property and Equipment | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 3 | PROPERTY AND EQUIPMENT | |||||||
Property and equipment consist of the following (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Coins and stamp grading reference sets | $ | 281 | $ | 282 | |||||
Computer hardware and equipment | 2,254 | 2,307 | |||||||
Computer software | 1,105 | 1,098 | |||||||
Equipment | 4,452 | 3,943 | |||||||
Furniture and office equipment | 1,064 | 1,015 | |||||||
Leasehold improvements | 1,007 | 999 | |||||||
Trading card reference library | 52 | 52 | |||||||
10,215 | 9,696 | ||||||||
Less accumulated depreciation and amortization | (7,787 | ) | (7,230 | ) | |||||
Property and equipment, net | $ | 2,428 | $ | 2,466 |
Note_4_Business_Combination
Note 4 - Business Combination | 9 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Business Combination Disclosure [Text Block] | 4 | BUSINESS COMBINATION |
In November 2014, we acquired the tradename, software and related assets (historical data and a non-compete with the previous owner) of Intelliquote (“IQ”), a brand name for pricing for the numismatic community, for cash of $200,000. The acquisition of IQ will enhance the Company’s CCE Quickprice offering and add to the Company’s positon as a leading service provider of valuable information and content to coin market participants. | ||
Due to the immateriality of the consideration paid, no formal purchase price allocation was conducted although we attribute most of the value to the IQ tradename. Based on this preliminary evaluation, the amount of $200,000 has been classified as intangible assets in the accompanying condensed consolidated balance sheet at March 31, 2015. | ||
Acquisition related costs of $3,000 were incurred and have been included in general and administrative expenses in the nine months ended March 31, 2015. | ||
Approximately $21,000 and $26,000 in IQ revenue is included in net revenues for the three and nine months ended March 31, 2015, representing the revenues earned since the date of acquisition. |
Note_5_Accrued_Liabilities
Note 5 - Accrued Liabilities | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 5 | ACCRUED LIABILITIES | |||||||
Accrued liabilities consist of the following (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Warranty reserves | $ | 1,550 | $ | 1,569 | |||||
Other | 1,188 | 1,248 | |||||||
$ | 2,738 | $ | 2,817 | ||||||
The following table presents the changes in the Company’s warranty reserve during the nine months ended March 31, 2015 and 2014 (in thousands): | |||||||||
Nine Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Warranty reserve beginning of period | $ | 1,569 | $ | 1,155 | |||||
Provision charged to cost of revenues | 380 | 587 | |||||||
Payments | (399 | ) | (298 | ) | |||||
Warranty reserve, end of period | $ | 1,550 | $ | 1,444 |
Note_6_Discontinued_Operations
Note 6 - Discontinued Operations | 9 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 6 | DISCONTINUED OPERATIONS |
During fiscal 2009, the Board of Directors authorized the divesture and sale of the jewelry businesses and the currency grading business, the remaining assets and liabilities of which have been reclassified as assets and liabilities of discontinued operations on the Condensed Consolidated Balance Sheets as of March 31, 2015 and June 30, 2014. | ||
The operating results of the discontinued businesses that are included in the accompanying Condensed Consolidated Statements of Operations were not material. | ||
The remaining balance of our lease related obligations in connection with the fiscal 2009 disposal of our jewelry business was $1,380,000 at March 31, 2015, of which $639,000 was classified as a current liability, and $741,000 was classified as a non-current liability in the accompanying condensed consolidated balance sheet at March 31, 2015. We will continue to review and, if necessary, make adjustments to the lease obligation accruals on a quarterly basis. |
Note_7_Income_Taxes
Note 7 - Income Taxes | 9 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Income Tax Disclosure [Text Block] | 7 | INCOME TAXES |
In the nine months ended March 31, 2015 and 2014, we recognized provisions for income taxes based upon estimated annual effective tax rates of approximately 39% and 42%, respectively and such provisions include valuation allowances established against losses of foreign subsidiaries and in the nine month ended March 31, 2014, a discrete amount of $42,000 related to prior year estimated taxes. |
Note_8_Net_Income_Per_Share
Note 8 - Net Income Per Share | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Earnings Per Share [Text Block] | 8 | NET INCOME PER SHARE | |||||||||||||||
The following table presents the changes in the Company’s weighted average shares outstanding for the three and nine months ended March 31, 2015 and 2014 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 20 | 2015 | 2014 | ||||||||||||||
14 | |||||||||||||||||
Weighted average shares outstanding: Basic | 8,353 | 8,186 | 8,339 | 8,149 | |||||||||||||
Dilutive effect of stock options | - | 19 | 2 | 19 | |||||||||||||
Dilutive effect of restricted shares | 178 | 69 | 176 | 51 | |||||||||||||
Weighted average shares outstanding: Diluted | 8,531 | 8,274 | 8,517 | 8,219 | |||||||||||||
A total of 75,000 options to purchase shares of common stock and unvested restricted shares of common stock for the nine months ended March 31, 2014 were excluded from the computation of diluted income per share as they would have been anti-dilutive. There were no anti-dilutive options or restricted shares of common stock for the three and nine months ended March 31, 2015. | |||||||||||||||||
In addition, approximately 262,000 and 473,000 unvested performance-based restricted shares of common stock were excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and 2014, respectively, because we had not achieved the related performance goals at those dates. |
Note_9_Business_Segments
Note 9 - Business Segments | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | 9 | BUSINESS SEGMENTS | |||||||||||||||
Operating segments are defined as the components or “segments” of an enterprise for which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker, or decision-making group, in deciding how to allocate resources to and in assessing performance of those components or “segments”. The Company’s chief operating decision-maker is its Chief Executive Officer. The Company’s operating segments are organized based on the respective services that they offer to customers. Similar operating segments have been aggregated to reportable operating segments based on having similar services, types of customers, and other criteria. | |||||||||||||||||
For our continuing operations, we operate principally in three reportable service segments: coins, trading cards and autographs and other collectibles. Services provided by these segments include authentication, grading, publications, advertising and commission earned subscription-based revenues and product sales. The other collectibles segment is comprised of CCE, Coinflation.com and our collectibles conventions business. | |||||||||||||||||
We allocate operating expenses to each service segment based upon each segment’s activity level. The following tables set forth on a segment basis, including a reconciliation with the condensed consolidated financial statements, (i) external revenues, (ii) amortization and depreciation, (iii) stock-based compensation expense, and (iv) operating income for the three and nine months ended March 31, 2015 and 2014, respectively. Net identifiable assets are provided by business segment as of March 31, 2015 and June 30, 2014 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
20 | 20 | 2015 | 2014 | ||||||||||||||
15 | 14 | ||||||||||||||||
Net revenues from external customers: | |||||||||||||||||
Coins (including product sales) | $ | 11,008 | $ | 11,659 | $ | 31,891 | $ | 30,420 | |||||||||
Trading cards and autographs | 3,671 | 3,505 | 11,154 | 10,464 | |||||||||||||
Other | 1,308 | 1,144 | 3,268 | 3,140 | |||||||||||||
Consolidated total revenue | $ | 15,987 | $ | 16,308 | $ | 46,313 | $ | 44,024 | |||||||||
Amortization and depreciation: | |||||||||||||||||
Coins | $ | 121 | $ | 138 | $ | 373 | $ | 346 | |||||||||
Trading cards and autographs | 51 | 41 | 151 | 93 | |||||||||||||
Other | 84 | 80 | 251 | 243 | |||||||||||||
Total | 256 | 259 | 775 | 682 | |||||||||||||
Unallocated amortization and depreciation | 47 | 79 | 199 | 225 | |||||||||||||
Consolidated amortization and depreciation | $ | 303 | $ | 338 | $ | 974 | $ | 907 | |||||||||
Stock-based compensation: | |||||||||||||||||
Coins | $ | 93 | $ | 95 | $ | 354 | $ | 209 | |||||||||
Trading cards and autographs | 41 | 60 | 197 | 136 | |||||||||||||
Other | 29 | 42 | 136 | 96 | |||||||||||||
Total | 163 | 197 | 687 | 441 | |||||||||||||
Unallocated stock-based compensation | 275 | 345 | 1,116 | 957 | |||||||||||||
Consolidated stock-based compensation | $ | 438 | $ | 542 | $ | 1,803 | $ | 1,398 | |||||||||
Operating income: | |||||||||||||||||
Coins | $ | 3,879 | $ | 3,997 | $ | 10,515 | $ | 9,850 | |||||||||
Trading cards and autographs | 708 | 533 | 2,235 | 1,623 | |||||||||||||
Other | 394 | 330 | 805 | 961 | |||||||||||||
Total | 4,981 | 4,860 | 13,555 | 12,434 | |||||||||||||
Unallocated operating expenses | (1,309 | ) | (1,147 | ) | (4,212 | ) | (3,767 | ) | |||||||||
Consolidated operating income | $ | 3,672 | $ | 3,713 | $ | 9,343 | $ | 8,667 | |||||||||
March | June 30, | ||||||||||||||||
31, | |||||||||||||||||
201 | 2014 | ||||||||||||||||
5 | |||||||||||||||||
Identifiable Assets: | |||||||||||||||||
Coins | $ | 6,707 | $ | 6,636 | |||||||||||||
Trading cards and autographs | 1,427 | 1,475 | |||||||||||||||
Other | 2,680 | 2,378 | |||||||||||||||
Total | 10,814 | 10,489 | |||||||||||||||
Unallocated assets | 22,349 | 25,099 | |||||||||||||||
Consolidated assets | $ | 33,163 | $ | 35,588 | |||||||||||||
Goodwill: | |||||||||||||||||
Coins | $ | 515 | $ | 515 | |||||||||||||
Other | 1,568 | 1,568 | |||||||||||||||
Consolidated goodwill | $ | 2,083 | $ | 2,083 |
Note_10_Relatedparty_Transacti
Note 10 - Related-party Transactions | 9 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Related Party Transactions Disclosure [Text Block] | 10 | RELATED-PARTY TRANSACTIONS |
During the three and nine months ended March 31, 2015, an adult member of the immediate family of Mr. David Hall, the President of the Company, paid grading and authentication fees to us of $179,000 and $828,000, compared with $218,000 and $930,000 for the three and nine months ended March 31, 2014. At March 31, 2015, the amount owed to the Company for these services was approximately $200,000, compared with $79,000 at June 30, 2014. | ||
An associate of Richard Kenneth Duncan Sr., who as of October 3, 2014 was the beneficial owner of 6% of our outstanding shares, paid us grading and authentication fees of $208,000 and $748,000 in the three and nine months ended March 31, 2015, as compared to $281,000 and $870,000 in the same three and nine months of fiscal 2014. At March 31, 2015, the amount owed to the Company for these services was approximately $19,000, compared to $68,000 at June 30, 2014. | ||
In each case, these authentication and grading fees were comparable in amount to the fees which we charge, in the ordinary course of our business, for similar services authentication and grading services we render to unaffiliated customers. | ||
Note_11_Contingencies
Note 11 - Contingencies | 9 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Contingencies Disclosure [Text Block] | 11 | CONTINGENCIES |
The Company is named from time to time, as a defendant in lawsuits and disputes that arise in the ordinary course of business. Management believes that none of the lawsuits or disputes currently pending against the Company is likely to have a material adverse effect on the Company’s financial position or results of operations. |
Note_12_Subsequent_Events
Note 12 - Subsequent Events | 9 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Subsequent Events [Text Block] | 12 | SUBSEQUENT EVENTS |
On April 23, 2015, the Company announced that, in accordance with its dividend policy the Board of Directors had approved a fourth quarter cash dividend of $0.35 per share of common stock and such dividend will be paid on May 29, 2015 to stockholders of record on May 15, 2015. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation | ||||||||||||||||
The accompanying unaudited interim condensed consolidated financial statements include the accounts of Collectors Universe, Inc. and its operating subsidiaries (the “Company”, “we”, “management”, “us”, “our”). At March 31, 2015, our operating subsidiaries were Certified Asset Exchange, Inc. (“CAE”), Collectors Universe (Hong Kong) Limited, Collectors Universe (Shanghai) Limited, and Expos Unlimited, Inc. (“Expos”), all of which are ultimately 100% owned by Collectors Universe, Inc. All significant intercompany transactions and accounts have been eliminated in consolidation. | |||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | Unaudited Interim Financial Information | ||||||||||||||||
The accompanying interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, and Condensed Consolidated Statements of Cash Flows for the periods presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Operating results for the three and nine months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending June 30, 2015 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014, as filed with the SEC (our “Fiscal 2014 10-K”). Amounts related to disclosure of June 30, 2014 balances within these interim condensed consolidated financial statements were derived from the aforementioned audited consolidated financial statements and the notes thereto. | |||||||||||||||||
Reclassification, Policy [Policy Text Block] | Reclassification | ||||||||||||||||
s | |||||||||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Policies | ||||||||||||||||
We record revenue at the time of shipment of the authenticated and graded collectible to the customer, net of any taxes collected. Due to the insignificant delay between the completion of our grading and authentication services and the shipment of the collectible or high-value asset back to the customer, the time of shipment corresponds to the completion of our authentication and grading services. We recognize revenue for the sale of special coin inserts at the time the customer takes legal title to the insert. Many of our authentication and grading customers prepay our authentication and grading fees when they submit their collectibles to us for authentication and grading. We record those prepayments as deferred revenue until the collectibles have been authenticated and graded and shipped back to them. At that time, we record the revenues from the authentication and grading services we have performed for the customer and deduct this amount from deferred revenue. For certain dealers to whom we extend open account privileges, we record revenue at the time of shipment of the authenticated and graded collectible to the dealer. With respect to our Expos trade show business, we recognize revenue from each show in the period in which it takes place. | |||||||||||||||||
A portion of our net revenues are comprised of subscription fees paid by customers for one year memberships in our Collectors Club. Those membership subscription fees entitle members to access our on-line and printed publications and, in some cases, to receive limited life vouchers for free grading services. We recognize revenue attributable to free grading vouchers on a specific basis and classify those revenues as part of grading and authentication fees. The balance of the membership fee is recognized over the life of the membership on a time-apportioned basis. | |||||||||||||||||
We recognize product sales when items are shipped to customers. Product revenues consist primarily of collectible coins that we purchase pursuant to our coin authentication and grading warranty program. However, those sales are not considered an integral part of the Company’s ongoing revenue generating activities. | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results from continuing and discontinued operations could differ from results expected on the basis of those estimates, and such differences could be material to our future results of operations and financial condition. Examples of such estimates that could be material include determinations made with respect to the capitalization and recovery of software development costs, the valuation of stock-based compensation awards and the timing of the recognition of related stock-based compensation expense, the valuation of coin inventory, the amount and assessment of goodwill for impairment, the sufficiency of warranty reserves, the provision or benefit for income taxes and related valuation allowances, and adjustments to the fair value of remaining lease obligations for our discontinued jewelry businesses. These estimates are discussed in more detail in these notes to Condensed Consolidated Financial Statements and in the Critical Accounting Policies and Estimates section of Item 2, | |||||||||||||||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||||||||
, | |||||||||||||||||
contained elsewhere in this Report and in our Fiscal 2014 10-K. | |||||||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Long-Lived | ||||||||||||||||
Assets | |||||||||||||||||
We evaluate the carrying value of goodwill and indefinite-lived intangible assets at least annually, or more frequently if facts and circumstances indicate that impairment may have occurred. Qualitative factors are considered in performing our goodwill impairment assessment, including the significant excess of fair value over carrying value in prior years, and any material changes in the estimated cash flows of the reporting unit. We also evaluate the carrying values of all other tangible and intangible assets for impairment if circumstances arise in which the carrying values of these assets may not be recoverable on the basis of future undiscounted cash flows. Management has determined that no impairment of goodwill or other long-lived assets had occurred as of March 31, 2015. | |||||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency | ||||||||||||||||
The Company has determined that the U.S. Dollar is the functional currency for its French branch office and its Hong Kong and China subsidiaries. Based on this determination, the Company’s foreign operations are re-measured by reflecting the financial results of such operations as if they had taken place within a U.S. dollar-based economic environment. Fixed assets and other non-monetary assets and liabilities are re-measured from foreign currencies to U.S. dollars at historical exchange rates; whereas cash, accounts receivable and other monetary assets and liabilities are re-measured at current exchange rates. Gains and losses resulting from those re-measurements, which are included in income for the current periods, were not material. | |||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Expense | ||||||||||||||||
Stock-based compensation expense is measured at the grant date of an equity-incentive award, based on its estimated fair value, and is recognized as expense over the employee or non-employee director’s requisite service period, which is generally the vesting period of the award. However, if the vesting of a stock-based compensation award is subject to satisfaction of a performance requirement or condition, the stock-based compensation expense is recognized if, and when, management determines that the achievement of the performance requirement or condition (and therefore the vesting of the award) has become probable. If stock-based compensation is recognized due to such a determination, and management subsequently determines that the performance condition was not met and will not be met in future periods, then all expense previously recognized with respect to the performance condition would be reversed. | |||||||||||||||||
Stock Options | |||||||||||||||||
No stock options were granted during the three and nine months ended March 31, 2015 and 2014 and all remaining outstanding options were exercised in the three months ended December 31, 2014. The following table presents information relative to the stock options outstanding under all equity incentive plans as of June 30, 2014 and stock option activity during the nine months ended March 31, 2015. The closing price of our common stock as of June 30, 2014 was $19.59. | |||||||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||||||
Intrinsic | |||||||||||||||||
Value | |||||||||||||||||
Options: | (In | (yrs.) | (In Thousands) | ||||||||||||||
T | |||||||||||||||||
housands) | |||||||||||||||||
Outstanding at June 30, 2014 | 50 | $ | 17.82 | 0.43 | $ | 88 | |||||||||||
Exercised | -38 | $ | 17.82 | - | - | ||||||||||||
Cancelled | -12 | $ | 17.82 | - | - | ||||||||||||
Outstanding at March 31, 2015 | - | ||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
As previously reported, through June 30, 2014 the Company had issued 523,378 shares (net of forfeitures) under the Company’s Long-Term Incentive Plan (“LTIP”) with a grant date fair value of approximately $6,700,000. Based on the level of operating income before stock-based compensation ("OI") achieved in fiscal 2014, a determination was made that the Company had achieved the Threshold Performance Goal and the Intermediate Goal #1 and therefore in accordance with the terms of the LTIP up to 25% of the LTIP shares will vest, of which 12.5% vested upon the determination that the goals had been achieved and 12.5% will vest on June 30, 2015, assuming continuous service by the LTIP participants. Through March 31, 2015, $1,557,000 of expense has been recognized related to the Threshold Performance Goal and Intermediate Goal #1 and an additional $113,000 will be recognized through June 30, 2015 assuming continuous service, such that by June 30, 2015, $1,670,000 of expense will have been recognized related to those performance goals. | |||||||||||||||||
At September 30, 2014, based on the significantly improved level of operating income before stock based compensation in the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014, we concluded that it was probable that the Company will achieve the Performance Goal #2 by June 30, 2015. | |||||||||||||||||
In the three months ended December 31, 2014, an additional 18,957 restricted shares with a grant date fair value of $400,000 were issued, with a service inception date of November 19, 2014. The vesting of those shares is conditioned on the Company’s achievement of the same levels of OI as the LTIP participants through June 30, 2018, as indicated in the following table: | |||||||||||||||||
Percent of LTIP | |||||||||||||||||
Shares Vesting | |||||||||||||||||
If in any fiscal year during the term of the Program: | |||||||||||||||||
Intermediate Performance Goal #2 is Achieved | 20% | ||||||||||||||||
Intermediate Performance Goal #3 is Achieved | 25% | ||||||||||||||||
The Maximum Performance Goal is Achieved | 55% | ||||||||||||||||
In the third quarter of fiscal 2015, the Company continued to recognize expense on the assumption it was probable that the Company will achieve Performance Goal #2 by June 30, 2015. Therefore, the Company recognized stock-based compensation expense of approximately $169,000 and $991,000 in three and nine months ended March 31, 2015, respectively, related to that performance goal, representing the expense required to be recognized from the respective service inception dates through March 31, 2015. | |||||||||||||||||
Through March 31, 2015 total stock based compensation recognized for the LTIP shares, since inception of the LTIP program, was approximately $2,549,000. | |||||||||||||||||
At this time it is not considered probable that the Company will achieve additional Performance Goals beyond Performance Goal #2 in fiscal 2015 or future periods. Management will continue to reassess at each reporting date whether any additional stock-based compensation expense should be recognized based on the probability of achieving additional milestones under the LTIP, and the period over which such stock-based compensation expense should be recognized. | |||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations | ||||||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. | |||||||||||||||||
Financial Instruments and Cash Balances. | |||||||||||||||||
At March 31, 2015, we had cash and cash equivalents totaling approximately $17,329,000, of which approximately $14,048,000 was invested in money market accounts, and the balance of $3,281,000 was in non-interest bearing bank accounts for general day-to-day operations. Cash in overseas bank accounts was approximately $883,000. | |||||||||||||||||
Substantially all of our cash is deposited at two FDIC insured financial institutions. We maintained cash due from banks, inclusive of cash in overseas accounts, in excess of the banks’ FDIC insured deposit limits of approximately $16,820,000 at March 31, 2015. | |||||||||||||||||
Accounts Receivable. | |||||||||||||||||
A substantial portion of accounts receivable are due from collectibles dealers. Two individual customers accounts receivable balances accounted for 10% of the Company’s total gross accounts receivable balances at March 31, 2015, whereas one customer receivable exceeded 10% of the Company’s total gross amounts receivable balance at June 30, 2014. Management performs an analysis of the expected collectability of accounts receivable based on several factors, including the age and extent of significant past due accounts and economic conditions or trends that may adversely affect the ability of debtors to pay their account receivable balances. Based on that review, management establishes an allowance for doubtful accounts, when deemed necessary. The allowance for doubtful accounts receivable was $29,000 and $26,000 at both March 31, 2015 and June 30, 2014, respectively. Ultimately, management will write-off accounts receivable balances when it is determined that there is no possibility of collection. | |||||||||||||||||
Coin Revenues | |||||||||||||||||
. The authentication, grading and sales of collectible coins, related services and product sales accounted for approximately 69% of our net revenues for both the three and nine months ended March 31, 2015, and 71% and 69% of our net revenues for the three and nine months ended March 31, 2014. | |||||||||||||||||
Customers. | |||||||||||||||||
Five of our coin authentication and grading customers accounted, in the aggregate, for approximately 17% and 13% of our total net revenues in the nine months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||
Inventory, Policy [Policy Text Block] | Inventories | ||||||||||||||||
Our inventories consist primarily of (i) our coin collectibles inventories primarily consisting of coins which we purchased pursuant to our coin authentication and grading program and (ii) consumable supplies and special inserts that we use in our continuing authentication and grading businesses. Coin collectibles inventories are recorded at the lower of cost or estimated market value using the specific identification method. Consumable supplies are recorded at the lower of cost (using the first-in first-out method) or market. Inventories are periodically reviewed to identify slow-moving items, and an allowance for inventory loss is recognized, as considered necessary. It is possible that our estimates of market value of collectible coins in inventory could change due to market conditions in the various collectibles markets served by the Company, which could require us to increase that allowance. | |||||||||||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | Capitalized Software | ||||||||||||||||
We capitalize certain costs incurred in the development and upgrading of our software, either from internal or external sources, as part of intangible assets and amortize these costs on a straight-line basis over the estimated useful life of the software of three years. In the three and nine months ended March 31, 2015 we capitalized approximately $217,000 and $250,000, respectively, of software development cost compared with $53,000 and $110,000 in the three and nine months ended March 31, 2014, respectively. In the three and nine months ended March 31, 2015, approximately $20,000 and $98,000, respectively, was recorded as amortization expense for capitalized software compared to $29,000 and $81,000 in the three and nine months ended March 31, 2014, respectively. Planning, training, support and maintenance costs incurred either prior to or following the implementation phase are recognized as expense in the period in which they occur. Management evaluates the carrying value of capitalized software to determine if the carrying value is impaired, and, if necessary, an impairment loss is recorded in the period in which any impairment is determined to have occurred. | |||||||||||||||||
Standard Product Warranty, Policy [Policy Text Block] | Warranty Costs | ||||||||||||||||
We offer a limited warranty covering the coins and trading cards that we authenticate and grade. Under the warranty, if any collectible coin or trading card that was previously authenticated and graded by us is later submitted to us for re-grading and either (i) receives a lower grade upon that re-submittal or (ii) is determined not to have been authentic, we will offer to purchase the collectible or, in the alternative, at the customer’s option, pay the difference in value of the item at its original grade, as compared with its lower grade. However, this warranty is voided if the collectible, upon re-submittal to us, is not in the same tamper-resistant holder in which it was placed at the time we last graded it. We accrue for estimated warranty costs based on historical trends and related experience. We monitor the adequacy of our warranty reserves on an ongoing basis and significant claims resulting from resubmissions receiving lower grades, or deemed not to be authentic, could result in a material adverse impact on our results of operations. Effective July 1, 2014, the Company reduced its warranty accrual rate on coins and cards based upon a review of the overall level of warranty reserve and the trend in warranty payments over an extended period of time. | |||||||||||||||||
Stockholders' Equity, Policy [Policy Text Block] | Dividends | ||||||||||||||||
In accordance with the Company’s then quarterly dividend policy, we paid quarterly cash dividends of $0.325 per share of common stock in the first and second quarters of fiscal 2015. In the third quarter of fiscal 2015, the Board of Directors approved an increase in the Company’s quarterly cash dividend to $0.35 per share of common stock, effective in the third quarter of fiscal 2015. The declaration of cash dividends in the future is subject to final determination each quarter by the Board of Directors based on a number of factors, including the Company’s financial performance and its available cash resources, its cash requirements and alternative uses of cash that the Board may conclude would represent an opportunity to generate a greater return on investment for the Company. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, FASB issued an Accounting Standards Update (ASU) No. 2014-09, | |||||||||||||||||
Revenue from Contracts with Customers: Topic 606 | |||||||||||||||||
that affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, | |||||||||||||||||
Revenue Recognition, | |||||||||||||||||
and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, | |||||||||||||||||
Revenue Recognition—Construction-Type and Production-Type Contracts. | |||||||||||||||||
In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, | |||||||||||||||||
Property, Plant, and Equipment, | |||||||||||||||||
and intangible assets within the scope of Topic 350, | |||||||||||||||||
Intangibles—Goodwill and Other) | |||||||||||||||||
are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. | |||||||||||||||||
The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should: identify the contract(s) with a customer, i | |||||||||||||||||
dentify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. | |||||||||||||||||
For public companies, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is evaluating the potential impact of adoption of this ASU on its consolidated financial statements. | |||||||||||||||||
In May 2014, FASB issued an Accounting Standards Update No, 2014-12 on the Accounting for Share-Based Payments when the term of an award provide that a performance target could be achieved after the requisite service period. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period, be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, | |||||||||||||||||
Compensation – Stock Compensation, | |||||||||||||||||
as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award, if the performance target is achieved. | |||||||||||||||||
The updated guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s Condensed Consolidated Financial Statements. | |||||||||||||||||
In August 2014, FASB issued an Accounting Standards Update No. 2014-15 which addresses management’s responsibility in connection with preparing financial statements for each annual and interim reporting period, and requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The update provides guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure. The guidance is effective for the annual period ending after | |||||||||||||||||
December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements and related disclosures. |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate | |||||||||||||
Intrinsic | |||||||||||||||||
Value | |||||||||||||||||
Options: | (In | (yrs.) | (In Thousands) | ||||||||||||||
T | |||||||||||||||||
housands) | |||||||||||||||||
Outstanding at June 30, 2014 | 50 | $ | 17.82 | 0.43 | $ | 88 | |||||||||||
Exercised | -38 | $ | 17.82 | - | - | ||||||||||||
Cancelled | -12 | $ | 17.82 | - | - | ||||||||||||
Outstanding at March 31, 2015 | - | ||||||||||||||||
Schedule of Cumulative Percent of Shares Vested [Table Text Block] | Percent of LTIP | ||||||||||||||||
Shares Vesting | |||||||||||||||||
If in any fiscal year during the term of the Program: | |||||||||||||||||
Intermediate Performance Goal #2 is Achieved | 20% | ||||||||||||||||
Intermediate Performance Goal #3 is Achieved | 25% | ||||||||||||||||
The Maximum Performance Goal is Achieved | 55% |
Note_2_Inventories_Tables
Note 2 - Inventories (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Inventory, Current [Table Text Block] | March 31, | June 30, | |||||||
2015 | 201 | ||||||||
4 | |||||||||
Coins | $ | 600 | $ | 552 | |||||
Other collectibles | 120 | 230 | |||||||
Grading raw materials consumable inventory | 1,990 | 1,392 | |||||||
2,710 | 2,174 | ||||||||
Less inventory reserve | (471 | ) | (286 | ) | |||||
Inventories, net | $ | 2,239 | $ | 1,888 |
Note_3_Property_and_Equipment_
Note 3 - Property and Equipment (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Property, Plant and Equipment [Table Text Block] | March 31, | June 30, | |||||||
2015 | 2014 | ||||||||
Coins and stamp grading reference sets | $ | 281 | $ | 282 | |||||
Computer hardware and equipment | 2,254 | 2,307 | |||||||
Computer software | 1,105 | 1,098 | |||||||
Equipment | 4,452 | 3,943 | |||||||
Furniture and office equipment | 1,064 | 1,015 | |||||||
Leasehold improvements | 1,007 | 999 | |||||||
Trading card reference library | 52 | 52 | |||||||
10,215 | 9,696 | ||||||||
Less accumulated depreciation and amortization | (7,787 | ) | (7,230 | ) | |||||
Property and equipment, net | $ | 2,428 | $ | 2,466 |
Note_5_Accrued_Liabilities_Tab
Note 5 - Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | March 31, | June 30, | |||||||
2015 | 2014 | ||||||||
Warranty reserves | $ | 1,550 | $ | 1,569 | |||||
Other | 1,188 | 1,248 | |||||||
$ | 2,738 | $ | 2,817 | ||||||
Schedule of Product Warranty Liability [Table Text Block] | Nine Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Warranty reserve beginning of period | $ | 1,569 | $ | 1,155 | |||||
Provision charged to cost of revenues | 380 | 587 | |||||||
Payments | (399 | ) | (298 | ) | |||||
Warranty reserve, end of period | $ | 1,550 | $ | 1,444 |
Note_8_Net_Income_Per_Share_Ta
Note 8 - Net Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 20 | 2015 | 2014 | ||||||||||||||
14 | |||||||||||||||||
Weighted average shares outstanding: Basic | 8,353 | 8,186 | 8,339 | 8,149 | |||||||||||||
Dilutive effect of stock options | - | 19 | 2 | 19 | |||||||||||||
Dilutive effect of restricted shares | 178 | 69 | 176 | 51 | |||||||||||||
Weighted average shares outstanding: Diluted | 8,531 | 8,274 | 8,517 | 8,219 |
Note_9_Business_Segments_Table
Note 9 - Business Segments (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | ||||||||||||||||
20 | 20 | 2015 | 2014 | ||||||||||||||
15 | 14 | ||||||||||||||||
Net revenues from external customers: | |||||||||||||||||
Coins (including product sales) | $ | 11,008 | $ | 11,659 | $ | 31,891 | $ | 30,420 | |||||||||
Trading cards and autographs | 3,671 | 3,505 | 11,154 | 10,464 | |||||||||||||
Other | 1,308 | 1,144 | 3,268 | 3,140 | |||||||||||||
Consolidated total revenue | $ | 15,987 | $ | 16,308 | $ | 46,313 | $ | 44,024 | |||||||||
Amortization and depreciation: | |||||||||||||||||
Coins | $ | 121 | $ | 138 | $ | 373 | $ | 346 | |||||||||
Trading cards and autographs | 51 | 41 | 151 | 93 | |||||||||||||
Other | 84 | 80 | 251 | 243 | |||||||||||||
Total | 256 | 259 | 775 | 682 | |||||||||||||
Unallocated amortization and depreciation | 47 | 79 | 199 | 225 | |||||||||||||
Consolidated amortization and depreciation | $ | 303 | $ | 338 | $ | 974 | $ | 907 | |||||||||
Stock-based compensation: | |||||||||||||||||
Coins | $ | 93 | $ | 95 | $ | 354 | $ | 209 | |||||||||
Trading cards and autographs | 41 | 60 | 197 | 136 | |||||||||||||
Other | 29 | 42 | 136 | 96 | |||||||||||||
Total | 163 | 197 | 687 | 441 | |||||||||||||
Unallocated stock-based compensation | 275 | 345 | 1,116 | 957 | |||||||||||||
Consolidated stock-based compensation | $ | 438 | $ | 542 | $ | 1,803 | $ | 1,398 | |||||||||
Operating income: | |||||||||||||||||
Coins | $ | 3,879 | $ | 3,997 | $ | 10,515 | $ | 9,850 | |||||||||
Trading cards and autographs | 708 | 533 | 2,235 | 1,623 | |||||||||||||
Other | 394 | 330 | 805 | 961 | |||||||||||||
Total | 4,981 | 4,860 | 13,555 | 12,434 | |||||||||||||
Unallocated operating expenses | (1,309 | ) | (1,147 | ) | (4,212 | ) | (3,767 | ) | |||||||||
Consolidated operating income | $ | 3,672 | $ | 3,713 | $ | 9,343 | $ | 8,667 | |||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March | June 30, | |||||||||||||||
31, | |||||||||||||||||
201 | 2014 | ||||||||||||||||
5 | |||||||||||||||||
Identifiable Assets: | |||||||||||||||||
Coins | $ | 6,707 | $ | 6,636 | |||||||||||||
Trading cards and autographs | 1,427 | 1,475 | |||||||||||||||
Other | 2,680 | 2,378 | |||||||||||||||
Total | 10,814 | 10,489 | |||||||||||||||
Unallocated assets | 22,349 | 25,099 | |||||||||||||||
Consolidated assets | $ | 33,163 | $ | 35,588 | |||||||||||||
Goodwill: | |||||||||||||||||
Coins | $ | 515 | $ | 515 | |||||||||||||
Other | 1,568 | 1,568 | |||||||||||||||
Consolidated goodwill | $ | 2,083 | $ | 2,083 |
Note_1_Summary_of_Significant_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 36 Months Ended | 33 Months Ended | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2013 | |
Rate | |||||||||||
Goodwill, Impairment Loss | $0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | 0 | |||||||
Allocated Share-based Compensation Expense | 438,000 | 542,000 | 1,803,000 | 1,398,000 | |||||||
Cash and Cash Equivalents, at Carrying Value | 17,329,000 | 17,683,000 | 17,329,000 | 17,683,000 | 19,909,000 | 17,329,000 | 18,711,000 | ||||
Money Market Funds, at Carrying Value | 14,048,000 | 14,048,000 | 14,048,000 | ||||||||
Other Cash Equivalents, at Carrying Value | 3,281,000 | 3,281,000 | 3,281,000 | ||||||||
Cash | 883,000 | 883,000 | 883,000 | ||||||||
Cash, Uninsured Amount | 16,820,000 | 16,820,000 | 16,820,000 | ||||||||
Allowance for Doubtful Accounts Receivable, Current | 29,000 | 26,000 | 29,000 | 26,000 | 29,000 | 26,000 | |||||
Capitalized Computer Software, Additions | 217,000 | 53,000 | 250,000 | 110,000 | |||||||
Capitalized Computer Software, Amortization | 20,000 | 29,000 | 98,000 | 81,000 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $0.35 | $0.33 | |||||||||
Coins [Member] | Sales Revenue, Services, Net [Member] | |||||||||||
Concentration Risk, Percentage | 69.00% | 71.00% | 69.00% | 69.00% | |||||||
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | Five Customers [Member] | |||||||||||
Concentration Risk, Percentage | 17.00% | 13.00% | |||||||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | |||||||||
LTIP [Member] | Restricted Stock [Member] | Intermdiate Performance Goal 1 Achieved [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||
LTIP [Member] | Restricted Stock [Member] | June 30th Following Fiscal Year [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | ||||||||||
LTIP [Member] | Restricted Stock [Member] | Goals Achieved [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | ||||||||||
LTIP [Member] | Restricted Stock [Member] | If in any Fiscal Year During the Term of the Program, Intermediate Performance Goal #1 Is Achieved [Member] | |||||||||||
Allocated Share-based Compensation Expense | 1,557,000 | ||||||||||
LTIP [Member] | Restricted Stock [Member] | If in any Fiscal Year During the Term of the Program, Intermediate Performance Goal #2 Is Achieved [Member] | |||||||||||
Allocated Share-based Compensation Expense | 169,000 | 991,000 | |||||||||
LTIP [Member] | Restricted Stock [Member] | Scenario, Forecast [Member] | |||||||||||
Allocated Share-based Compensation Expense | 113,000 | 1,670,000 | |||||||||
LTIP [Member] | Restricted Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 18,957 | 523,378 | 18,957 | ||||||||
Allocated Share-based Compensation Expense | 2,549,000 | ||||||||||
LTIP [Member] | |||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 6,700,000 | $400,000 | |||||||||
Computer Software, Intangible Asset [Member] | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years |
Note_1_Summary_of_Significant_3
Note 1 - Summary of Significant Accounting Policies - Stock Options Outstanding and Stock Option Activity (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 |
Outstanding (in shares) | 50 | |
Outstanding (in dollars per share) | $17.82 | |
Outstanding | 156 days | |
Outstanding | $88 | |
Exercised (in shares) | -38 | |
Exercised (in dollars per share) | $17.82 | |
Cancelled (in shares) | -12 | |
Cancelled (in dollars per share) | $17.82 |
Note_1_Summary_of_Significant_4
Note 1 - Summary of Significant Accounting Policies - Vesting Conditions and Percentage of Remaining Restricted Shares (Details) | 9 Months Ended |
Mar. 31, 2015 | |
If in any Fiscal Year During the Term of the Program, Intermediate Performance Goal #2 Is Achieved [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% |
If in any Fiscal Year During the Term of the Program, Intermediate Performance Goal #3 Is Achieved [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% |
If in any Fiscal Year During the Term of the Program, the Maximum Performance Goal is Achieved [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 55.00% |
Note_2_Inventories_Inventories
Note 2 - Inventories - Inventories (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Inventory, gross | $2,710,000 | $2,174,000 |
Less inventory reserve | -471,000 | -286,000 |
Inventories, net | 2,239,000 | 1,888,000 |
Coins [Member] | ||
Inventory, gross | 600,000 | 552,000 |
Other Collectibles [Member] | ||
Inventory, gross | 120,000 | 230,000 |
Grading Raw Materials Consumable [Member] | ||
Inventory, gross | $1,990,000 | $1,392,000 |
Note_3_Property_and_Equipment_1
Note 3 - Property and Equipment - Property and Equipment (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Property and equipment, gross | $10,215 | $9,696 |
Less accumulated depreciation and amortization | -7,787 | -7,230 |
Property and equipment, net | 2,428 | 2,466 |
Coins and Stamp Reference Sets [Member] | ||
Property and equipment, gross | 281 | 282 |
Computer Equipment [Member] | ||
Property and equipment, gross | 2,254 | 2,307 |
Computer Software [Member] | ||
Property and equipment, gross | 1,105 | 1,098 |
Equipment [Member] | ||
Property and equipment, gross | 4,452 | 3,943 |
Furniture and Office Equipment [Member] | ||
Property and equipment, gross | 1,064 | 1,015 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 1,007 | 999 |
Trading Card Reference Library [Member] | ||
Property and equipment, gross | $52 | $52 |
Note_4_Business_Combination_De
Note 4 - Business Combination (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2015 | Nov. 30, 2014 | Jun. 30, 2014 | |
Intangible Assets, Net (Excluding Goodwill) | $1,448,000 | $1,448,000 | $1,272,000 | |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 21,000 | 26,000 | ||
Intelliquote [Member] | ||||
Intangible Assets, Net (Excluding Goodwill) | 200,000 | 200,000 | ||
Payments to Acquire Businesses, Gross | 200,000 | |||
Business Combination, Acquisition Related Costs | $3,000 |
Note_5_Accrued_Liabilities_Acc
Note 5 - Accrued Liabilities - Accrued Liabilities (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Warranty reserves | $1,550 | $1,569 |
Other | 1,188 | 1,248 |
$2,738 | $2,817 |
Note_5_Accrued_Liabilities_War
Note 5 - Accrued Liabilities - Warranty Reserve Activity (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Warranty reserve beginning of period | $1,569 | $1,155 |
Provision charged to cost of revenues | 380 | 587 |
Payments | -399 | -298 |
Warranty reserve, end of period | $1,550 | $1,444 |
Note_6_Discontinued_Operations1
Note 6 - Discontinued Operations (Details Textual) (Jewelry Businesses [Member], USD $) | Mar. 31, 2015 |
Jewelry Businesses [Member] | |
Total Accrual Related to Remaining Lease Obligations | $1,380,000 |
Accrued Rent, Current | 639,000 |
Accrued Rent, Noncurrent | $741,000 |
Note_7_Income_Taxes_Details_Te
Note 7 - Income Taxes (Details Textual) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent | 39.00% | 42.00% |
Tax Adjustments, Settlements, and Unusual Provisions | $42,000 |
Note_8_Net_Income_Per_Share_De
Note 8 - Net Income Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | |
Stock Options and Unvested Restricted Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 75,000 | |
Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 262,000 | 473,000 |
Note_8_Computation_of_Basic_an
Note 8 - Computation of Basic and Diluted Net Loss per Common Share (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Weighted average shares outstanding: Basic (in shares) | 8,353 | 8,186 | 8,339 | 8,149 |
Weighted average shares outstanding: Diluted (in shares) | 8,531 | 8,274 | 8,517 | 8,219 |
Employee Stock Option [Member] | ||||
Dilutive effect of stock options (in shares) | 19 | 2 | 19 | |
Restricted Stock [Member] | ||||
Dilutive effect of stock options (in shares) | 178 | 69 | 176 | 51 |
Note_9_Business_Segments_Detai
Note 9 - Business Segments (Details Textual) | 9 Months Ended |
Mar. 31, 2015 | |
Number of Reportable Segments | 3 |
Note_9_Business_Segments_Segme
Note 9 - Business Segments - Segment Reporting Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net revenues from external customers: | ||||
Net revenues | $15,987,000 | $16,308,000 | $46,313,000 | $44,024,000 |
Amortization and depreciation: | ||||
Depreciation and amortization expense | 303,000 | 338,000 | 974,000 | 907,000 |
Stock-based compensation: | ||||
Stock-based compensation | 438,000 | 542,000 | 1,803,000 | 1,398,000 |
Operating income: | ||||
Operating income | 3,672,000 | 3,713,000 | 9,343,000 | 8,667,000 |
Operating Segments [Member] | Coins [Member] | ||||
Net revenues from external customers: | ||||
Net revenues | 11,008,000 | 11,659,000 | 31,891,000 | 30,420,000 |
Amortization and depreciation: | ||||
Depreciation and amortization expense | 121,000 | 138,000 | 373,000 | 346,000 |
Stock-based compensation: | ||||
Stock-based compensation | 93,000 | 95,000 | 354,000 | 209,000 |
Operating income: | ||||
Operating income | 3,879,000 | 3,997,000 | 10,515,000 | 9,850,000 |
Operating Segments [Member] | Trading Cards and Autographs [Member] | ||||
Net revenues from external customers: | ||||
Net revenues | 3,671,000 | 3,505,000 | 11,154,000 | 10,464,000 |
Amortization and depreciation: | ||||
Depreciation and amortization expense | 51,000 | 41,000 | 151,000 | 93,000 |
Stock-based compensation: | ||||
Stock-based compensation | 41,000 | 60,000 | 197,000 | 136,000 |
Operating income: | ||||
Operating income | 708,000 | 533,000 | 2,235,000 | 1,623,000 |
Operating Segments [Member] | Other Segments [Member] | ||||
Net revenues from external customers: | ||||
Net revenues | 1,308,000 | 1,144,000 | 3,268,000 | 3,140,000 |
Amortization and depreciation: | ||||
Depreciation and amortization expense | 84,000 | 80,000 | 251,000 | 243,000 |
Stock-based compensation: | ||||
Stock-based compensation | 29,000 | 42,000 | 136,000 | 96,000 |
Operating income: | ||||
Operating income | 394,000 | 330,000 | 805,000 | 961,000 |
Operating Segments [Member] | ||||
Amortization and depreciation: | ||||
Depreciation and amortization expense | 256,000 | 259,000 | 775,000 | 682,000 |
Stock-based compensation: | ||||
Stock-based compensation | 163,000 | 197,000 | 687,000 | 441,000 |
Operating income: | ||||
Operating income | 4,981,000 | 4,860,000 | 13,555,000 | 12,434,000 |
Segment Reconciling Items [Member] | ||||
Amortization and depreciation: | ||||
Depreciation and amortization expense | 47,000 | 79,000 | 199,000 | 225,000 |
Stock-based compensation: | ||||
Stock-based compensation | 275,000 | 345,000 | 1,116,000 | 957,000 |
Operating income: | ||||
Operating income | ($1,309,000) | ($1,147,000) | ($4,212,000) | ($3,767,000) |
Note_9_Reconciliation_of_Asset
Note 9 - Reconciliation of Assets to Consolidated from Segment (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Identifiable Assets: | ||
Identifiable Assets, by segment | $33,163,000 | $35,588,000 |
Goodwill: | ||
Goodwill | 2,083,000 | 2,083,000 |
Operating Segments [Member] | Coins [Member] | ||
Identifiable Assets: | ||
Identifiable Assets, by segment | 6,707,000 | 6,636,000 |
Goodwill: | ||
Goodwill | 515,000 | 515,000 |
Operating Segments [Member] | Trading Cards and Autographs [Member] | ||
Identifiable Assets: | ||
Identifiable Assets, by segment | 1,427,000 | 1,475,000 |
Operating Segments [Member] | Other Segments [Member] | ||
Identifiable Assets: | ||
Identifiable Assets, by segment | 2,680,000 | 2,378,000 |
Goodwill: | ||
Goodwill | 1,568,000 | 1,568,000 |
Operating Segments [Member] | ||
Identifiable Assets: | ||
Identifiable Assets, by segment | 10,814,000 | 10,489,000 |
Segment Reconciling Items [Member] | ||
Identifiable Assets: | ||
Identifiable Assets, by segment | $22,349,000 | $25,099,000 |
Note_10_Relatedparty_Transacti1
Note 10 - Related-party Transactions (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Oct. 03, 2014 | |
Mr. Hall's Immediate Family Member [Member] | Grading and Authentication Fees [Member] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $179,000 | $218,000 | $828,000 | $930,000 | ||
Accounts Receivable, Related Parties, Current | 200,000 | 200,000 | 79,000 | |||
Associate of Richard Kenneth Duncan Sr [Member] | Grading and Authentication Fees [Member] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 208,000 | 281,000 | 748,000 | 870,000 | ||
Accounts Receivable, Related Parties, Current | $19,000 | $19,000 | $68,000 | |||
Associate of Richard Kenneth Duncan Sr [Member] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6.00% |
Note_12_Subsequent_Events_Deta
Note 12 - Subsequent Events (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 23, 2015 | |
Common Stock, Dividends, Per Share, Declared | $0.35 | $0.33 | $1 | $0.98 | |
Subsequent Event [Member] | |||||
Dividends Payable, Date Declared | 23-Apr-15 | ||||
Dividends Payable, Date to be Paid | 29-May-15 | ||||
Dividends Payable, Date of Record | 15-May-15 | ||||
Common Stock, Dividends, Per Share, Declared | $0.35 |