Exhibit 99.1
COLLECTORS UNIVERSE, INC. ANNOUNCES $10 MILLION STOCK BUYBACK PROGRAM
NEWPORT BEACH, Calif., Dec. 6 /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 and
diamonds, today announced that that its Board of Directors has approved a $10
million stock buyback program. The program authorizes the Company to make up to
$10 million of stock repurchases in open market or private transactions, in
accordance with applicable Securities Exchange Commission rules, when
opportunities to make such repurchases, at attractive prices, become available.
"The adoption of the stock buyback program reflects our continued financial
strength, our confidence about the Company's future financial performance, and
our desire to enhance stockholder value," stated Michael R. Haynes, Chief
Executive Officer. "Important factors in the decision to adopt the stock buyback
program were the belief that, at recent market prices, the Company's shares
represent an attractive investment and good use of our available funds and the
confidence that, even after setting aside funds for the stock buyback program,
the Company will still have sufficient cash resources to fund its growth
strategy," added Mr. Haynes.
The Company is under no obligation to repurchase any shares under the stock
buyback program and the timing, actual number and value of shares that may be
repurchased under this program will depend on a number of factors, including the
Company's future financial performance; the Company's available cash resources
and competing uses for the cash that may arise in the future; prevailing market
prices of the Company's common stock; and the number of shares that become
available for sale at prices that the Company believes are attractive. For these
reasons, as well as others, there can be no assurance that the Board of
Directors will not subsequently decide to suspend purchases of shares under the
stock buyback program or terminate the program altogether.
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value added services to the
high-value collectibles and diamond markets. The Company authenticates and
grades collectible coins, sports cards, autographs, stamps currency and
diamonds. The Company also compiles and publishes authoritative information
about United States and world coins, collectible sports cards and sports
memorabilia, collectible stamps and diamonds. This information is accessible to
collectors and dealers at the Company's web site, www.collectors.com, and is
also published in print.
Forward Looking Information
This press 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 that are set forth in the forward looking statements
contained in this press 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 even cause us to incur losses; the risk that our strategy to
expand into new collectibles and other high value asset markets, such as the
diamond market, primarily through business acquisitions, will not be successful
in enabling us to improve our profitability; and the risks that we will be
unable to successfully integrate the businesses that we acquire into our
operations, or that those businesses will not gain market acceptance, or that
our business expansion may result in a costly diversion of management time and
resources and increase our operating expenses and possibly cause us to incur
losses. 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
SOURCE Collectors Universe, Inc.
-0- 12/06/2005
/CONTACT: Joe Wallace, Chief Financial Officer of Collectors Universe,
+1-949-567-1245, jwallace@collectors.com; or Investor Relations, Brandi
Piacente of The Piacente Group, Inc., +1-212-481-2050,
brandi@thepiacentegroup.com, for Collectors Universe, Inc./
/Web site: http://www.collectors.com /
(CLCT)