EXHIBIT 99.1
COLLECTORS UNIVERSE REPORTS METRICS FOR FIRST QUARTER OF FISCAL YEAR 2006
13% INCREASE IN TOTAL UNITS AUTHENTICATED AND GRADED OVER COMPARABLE PRIOR
YEAR QUARTER
NEWPORT BEACH, Calif., Oct. 18 /PRNewswire-FirstCall/ -- Collectors
Universe, Inc. (Nasdaq: CLCT), a leading provider of value-added authentication
and grading services to dealers and collectors of high-value collectibles, today
reported its unit performance metrics for first fiscal quarter of 2006. The
Company reports the number of units which it authenticates, grades and ships, on
a quarterly basis, for coins, sports cards, autographs, stamps and currency
which comprise its principal authentication and grading markets. The Company's
brands in those markets include: Professional Coin Grading Service (PCGS) for
coins, Professional Sports Authenticator (PSA) for sports cards, PSA/DNA
Authentication Services (PSA/DNA) for autographs, Professional Stamp Experts
(PSE) for stamps and PCGS Currency for paper money.
Total Units
Total units authenticated and graded grew by approximately 13% to 751,000
units in the quarter ended September 30, 2005 from 663,000 units in the quarter
ended September 30, 2004.
PCGS Units
Coins authenticated and graded by PCGS increased by approximately 7% in the
first quarter of fiscal year 2006 to 395,000 units, or 53% of the aggregate
units authenticated and graded, from 371,000 units in the same period in 2004.
PSA Units
PSA units authenticated and graded grew by approximately 7% to 283,000 units
in the quarter ended September 30, 2005, or 38% of the aggregate units
authenticated and graded, from 265,000 in the same period in 2004
PSA/DNA Units
Units authenticated by PSA/DNA increased by approximately 150% to 55,000
units, or 7% of the aggregate units authenticated and graded, in the first
quarter of fiscal year 2006 from 22,000 in the same period in fiscal year 2005.
PSE Units
PSE units authenticated and graded grew by approximately 80% to 9,000, or 1%
of the aggregate units authenticated and graded in the first quarter of fiscal
year 2006 from 5,000 units in the same period of fiscal year 2005.
PCGS - Currency Units
PCGS - Currency authenticated and graded 9,000 units or 1% of the aggregate
units authenticated and graded in the first quarter of fiscal year 2006. PCGS -
Currency did not begin authenticating and grading until the third quarter of
fiscal year 2005.
Chief Executive Officer of Collectors Universe, Michael Haynes commented,
"We continue to see increased demand for our services across our core markets in
coins and sportscards although our coin market growth was dampened by challenges
associated with our only customer that previously comprised 10% or more of our
revenue. We saw increased growth in unit volume in our autograph business, due
in large part to increased demand for authentication and grading of single
signed baseballs, a service we initiated in the first quarter of fiscal 2005.
The stamp business and currency business showed increases in unit volume,
increasing market share and brand preference. Similar to our launch of
authentication and grading of single signed baseballs, we continue to develop
new programs to diversify and grow our core business in our existing markets."
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value added services to
the high-value collectibles markets. The Collectors Universe brands are among
the strongest and best known in their respective markets. The Company
authenticates and grades collectible coins, sports cards, autographs and stamps.
The Company also compiles and publishes authoritative information about
collectible sports cards and sports memorabilia, United States and world coins,
and entertainment memorabilia. This information is accessible to collectors and
dealers at the Company's web site, http://www.collectors.com, and is also
published in print.
Forward Looking Information
This news release contains statements regarding our expectations about our
future financial performance which are "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by the use of words such as "believe," "expect,"
"anticipate," "intend," "plan," "estimate," "project," or future or conditional
verbs such as "will," "would," "should," "could," or "may."
Our financial performance in the future may differ, possibly significantly,
from our current expectations about our future financial performance as set
forth in the forward looking statements contained in this news release due to a
number of risks and uncertainties. Those risks and uncertainties include, but
are not limited to: the possibility of changes in general economic conditions or
conditions in the collectibles markets, such as a possible decline in the
popularity of some high-value collectibles, which could result in reductions in
the volume of authentication and grading submissions and, therefore, the fees we
are able to generate; a lack of diversity in our sources of revenues and our
dependence on coin authentication and grading for a significant percentage of
our total revenues, which makes us more vulnerable to adverse changes in
economic and market conditions, including declines in the value of precious
metals or recessionary conditions, that could lead to reduced coin and other
collectibles submissions, with a resultant reduction in our revenues and in our
income; the fact that five of our customers accounted for approximately 27% of
our net revenues during fiscal 2005, which means that our operating result could
decline if any of those customers were to terminate or significantly reduce the
business that they conduct with us; our dependence on certain key executives and
collectibles experts, the loss of the services of any of which could adversely
affect our ability to obtain authentication and grading submissions and,
therefore, could harm our operating results; increased competition from other
collectibles services companies that could result in reductions in collectibles
submissions to us or could require us to reduce the prices we charge for our
services; the risk that we will incur unanticipated liabilities under our
authentication and grading warranties that would increase our operating
expenses; the risk that new service offerings and business initiatives that we
may undertake will not gain market acceptance or will increase our operating
expenses or reduce our overall profitability or cause us to incur losses; the
risk that our strategy to exit the collectibles sales business and focus
substantially all of our resources on our authentication and grading businesses
will not be successful in enabling us to improve our profitability over the
longer term or to grow our existing businesses or expand into new collectibles
or high value asset markets; and if we grow our business by acquiring any
existing or commencing any new authentication and grading businesses, the risks
that we will be unable to successfully integrate those businesses into our
operations, that those businesses will not gain market acceptance; and that
business expansion may result in a costly diversion of management time and
resources and increase our operating expenses. Additional information regarding
these and other risks and uncertainties to which our business is subject is
contained in our Annual Report on Form 10-K for our fiscal year ended June 30,
2005 which we filed with the Securities and Exchange Commission on September 13,
2005.
Due to the above-described risks and uncertainties and those described in
that Annual Report, readers are cautioned not to place undue reliance on the
forward-looking statements contained in this news release, which speak only as
of its date, or to make predictions about future performance based solely on
historical financial performance. We also disclaim any obligation to update
forward-looking statements contained in this news release.
Contacts:
Joe Wallace Brandi Piacente
Chief Financial Officer Investor Relations
Collectors Universe The Piacente Group, Inc.
949-567-1245 212-481-2050
Email: jwallace@collectors.com Email: brandi@thepiacentegroup.com