(Mark
One)
|
|
ý
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarter ended March 31, 2008
|
|
OR
|
|
q
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED]
|
For
the transition period from _______ to _____
|
|
Commission
file number 0-27887
|
|
COLLECTORS
UNIVERSE, INC.
(Exact
name of Registrant as specified in its
charter)
|
Delaware
|
33-0846191
|
(State
or other jurisdiction of
|
(I.R.S.
Employer Identification No.)
|
Incorporation
or organization)
|
|
1921
E. Alton Avenue, Santa Ana, California 92705
|
|
(address of principal executive
offices and zip code)
|
|
Registrant's
telephone number, including area code: (949)
567-1234
|
Large
accelerated filer o
|
Accelerated
filer ý
|
Non-accelerated
filer o
|
Class
|
Outstanding at April 24,
2008
|
||
Common
Stock $.001 Par Value
|
8,451,495
|
||
PART
I
|
Financial
Information
|
Page
|
|
Item
1.
|
|||
1
|
|||
2
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|||
3
|
|||
4
|
|||
6
|
|||
Item
2.
|
20
|
||
20
|
|||
20
|
|||
21
|
|||
22
|
|||
24
|
|||
24
|
|||
30
|
|||
32
|
|||
Item
2A.
|
34
|
||
Item
3
|
34
|
||
PART
II
|
Other
Information
|
||
Item
1
|
35
|
||
Item
1A.
|
35
|
||
Item
2.
|
36
|
||
Item
6.
|
36
|
||
S-1
|
|||
E-1
|
|||
EXHIBITS
|
|||
Certifications
of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of
2002
|
|||
Certifications
of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of
2002
|
|||
Chief
Executive Officer Certification Under Section 906 of the Sarbanes-Oxley
Act of 2002
|
|||
Chief
Financial Officer Certification Under Section 906 of the Sarbanes-Oxley
Act of 2002
|
March
31,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash and cash
equivalents
|
$ | 28,167 | $ | 42,386 | ||||
Accounts receivable, net of
allowance of $74 at March 31, 2008 and $60 at June 30,
2007
|
1,744 | 1,276 | ||||||
Refundable income
taxes
|
1,100 | 1,220 | ||||||
Inventories, net
|
1,073 | 442 | ||||||
Prepaid expenses and other current
assets
|
1,380 | 1,060 | ||||||
Customer notes receivable, net of
allowance of $28 at March 31, 2008 and $23 at June 30,
2007
|
3,985 | 2,536 | ||||||
Net deferred income tax
asset
|
2,921 | 1,020 | ||||||
Receivable from sale of net assets
of discontinued operations
|
92 | 92 | ||||||
Total current
assets
|
40,462 | 50,032 | ||||||
Property
and equipment, net
|
4,544 | 4,081 | ||||||
Goodwill
|
13,038 | 12,884 | ||||||
Intangible
assets, net
|
10,181 | 10,365 | ||||||
Note
receivable from sale of discontinued operations
|
160 | 229 | ||||||
Other
assets
|
565 | 510 | ||||||
$ | 68,950 | $ | 78,101 | |||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts payable
|
$ | 1,434 | $ | 1,435 | ||||
Accrued
liabilities
|
1,994 | 2,154 | ||||||
Accrued compensation and
benefits
|
1,486 | 1,988 | ||||||
Income taxes
payable
|
289 | 14 | ||||||
Deferred revenue
|
2,530 | 2,233 | ||||||
Current liabilities of
discontinued operations held for sale
|
4 | - | ||||||
Total current
liabilities
|
7,737 | 7,824 | ||||||
Deferred
rent and other long-term liabilities
|
554 | 517 | ||||||
Net
deferred income tax liability
|
1,118 | 869 | ||||||
Stockholders’
equity:
|
||||||||
Preferred stock, $.001 par value;
5,000 shares authorized; no shares issued or outstanding
|
- | - | ||||||
Common stock, $.001 par value;
45,000 shares authorized; 8,451 shares outstanding at
March 31, 2008 and 8,496 at June 30, 2007
|
8 | 9 | ||||||
Additional paid-in
capital
|
76,481 | 76,737 | ||||||
Accumulated
deficit
|
(16,948 | ) | (7,855 | ) | ||||
Total stockholders'
equity
|
59,541 | 68,891 | ||||||
$ | 68,950 | $ | 78,101 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
March
31,
|
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
Revenues:
|
||||||||||||||||
Grading, authentication and
related services
|
$ | 10,875 | $ | 11,068 | $ | 30,757 | $ | 29,629 | ||||||||
Product sales
|
21 | 13 | 928 | 143 | ||||||||||||
10,896 | 11,081 | 31,685 | 29,772 | |||||||||||||
Cost
of Revenues:
|
||||||||||||||||
Grading, authentication and
related services
|
5,977 | 5,130 | 17,153 | 13,753 | ||||||||||||
Product sales
|
20 | 8 | 841 | 108 | ||||||||||||
5,997 | 5,138 | 17,994 | 13,861 | |||||||||||||
Gross
profit
|
4,899 | 5,943 | 13,691 | 15,911 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Selling and marketing
expenses
|
2,164 | 2,411 | 6,043 | 5,106 | ||||||||||||
General and administrative
expenses
|
3,960 | 3,729 | 11,637 | 11,389 | ||||||||||||
Amortization of intangible
assets
|
317 | 219 | 873 | 577 | ||||||||||||
Total operating
expenses
|
6,441 | 6,359 | 18,553 | 17,072 | ||||||||||||
Operating
loss
|
(1,542 | ) | (416 | ) | (4,862 | ) | (1,161 | ) | ||||||||
Interest
income, net
|
239 | 511 | 979 | 1,624 | ||||||||||||
Other
income
|
1 | 2 | 4 | 8 | ||||||||||||
Income
(loss) before income taxes
|
(1,302 | ) | 97 | (3,879 | ) | 471 | ||||||||||
Provision
(benefit) for income taxes
|
(336 | ) | 165 | (1,364 | ) | 336 | ||||||||||
Income
(loss) from continuing operations
|
(966 | ) | (68 | ) | (2,515 | ) | 135 | |||||||||
Income
(loss) from discontinued operations, net of gains on sales of
discontinued
businesses (net of income taxes)
|
- | 99 | (4 | ) | 190 | |||||||||||
Net
income (loss)
|
$ | (966 | ) | $ | 31 | $ | (2,519 | ) | $ | 325 | ||||||
Net
income (loss) per basic share:
|
||||||||||||||||
Income (loss) from continuing
operations
|
$ | (0.11 | ) | $ | (0.01 | ) | $ | (0.30 | ) | $ | 0.02 | |||||
Income from discontinued
operations, net of gains on
sales of
discontinued
businesses (net of income taxes)
|
- | 0.01 | - | 0.02 | ||||||||||||
Net
income (loss)
|
$ | (0.11 | ) | $ | - | $ | (0.30 | ) | $ | 0.04 | ||||||
Net
income (loss) per diluted share:
|
||||||||||||||||
Income (loss) from continuing
operations
|
$ | (0.11 | ) | $ | (0.01 | ) | $ | (0.30 | ) | $ | 0.02 | |||||
Income from discontinued
operations, net of gains on
sales of
discontinued
businesses (net of income taxes)
|
- | 0.01 | - | 0.02 | ||||||||||||
Net
income (loss)
|
$ | (0.11 | ) | $ | - | $ | (0.30 | ) | $ | 0.04 | ||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
8,470 | 8,381 | 8,475 | 8,346 | ||||||||||||
Diluted
|
8,470 | 8,587 | 8,475 | 8,612 | ||||||||||||
Dividends
declared per common share
|
$ | 0.25 | $ | 0.12 | $ | 0.75 | $ | 0.28 |
Common
Stock
|
Additional
Paid-in
|
Accumulated
|
Treasury
Stock
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Shares
|
Amount
|
Total
|
||||||||||||||||||||||
Balance
at June 30, 2005
|
8,610 | $ | 9 | $ | 78,594 | $ | (7,016 | ) | (125 | ) | $ | (1,021 | ) | $ | 70,566 | |||||||||||||
Exercise
of stock options
|
47 | - | 243 | - | - | - | 243 | |||||||||||||||||||||
Stock-based
compensation expense
|
- | - | 670 | - | - | - | 670 | |||||||||||||||||||||
Tax
benefit on exercise of stock options
|
- | - | 29 | - | - | - | 29 | |||||||||||||||||||||
Shares
repurchased and cancelled under
the
Stock Repurchase Plan
|
(182 | ) | (1 | ) | (2,627 | ) | - | - | - | (2,628 | ) | |||||||||||||||||
Net
income
|
- | - | - | 3,700 | - | - | 3,700 | |||||||||||||||||||||
Dividends
paid to common stockholders
|
- | - | - | (674 | ) | - | - | (674 | ) | |||||||||||||||||||
Balance
at June 30, 2006
|
8,475 | 8 | 76,909 | (3,990 | ) | (125 | ) | (1,021 | ) | 71,906 | ||||||||||||||||||
Exercise
of stock options
|
161 | 1 | 275 | - | - | - | 276 | |||||||||||||||||||||
Stock-based
compensation expense
|
- | - | 726 | - | - | - | 726 | |||||||||||||||||||||
Issuance
of restricted shares
|
57 | - | 164 | - | - | - | 164 | |||||||||||||||||||||
Tax
benefit on exercise of stock options
|
- | - | 633 | - | - | - | 633 | |||||||||||||||||||||
Shares
repurchased and cancelled
under the Stock Repurchase
Plan
|
(72 | ) | - | (949 | ) | - | - | - | (949 | ) | ||||||||||||||||||
Net
loss
|
- | - | - | (515 | ) | - | - | (515 | ) | |||||||||||||||||||
Retirement
of treasury shares
|
(125 | ) | - | (1,021 | ) | - | 125 | 1,021 | - | |||||||||||||||||||
Dividends
paid ($0.40 per share)
|
- | - | - | (3,350 | ) | - | - | (3,350 | ) | |||||||||||||||||||
Balance
at June 30, 2007
|
8,496 | 9 | 76,737 | (7,855 | ) | - | - | 68,891 | ||||||||||||||||||||
Cumulative
effect of adoption of
FIN
48 (see note 8)
|
- | - | - | (170 | ) | - | - | (170 | ) | |||||||||||||||||||
Exercise
of stock options
|
76 | - | 242 | - | - | - | 242 | |||||||||||||||||||||
Issuance
of restricted shares
|
21 | - | 255 | - | - | - | 255 | |||||||||||||||||||||
Stock-based
compensation expense
|
- | - | 575 | - | - | - | 575 | |||||||||||||||||||||
Shares
repurchased and cancelled
under
the Stock Repurchase Plan
|
(142 | ) | (1 | ) | (1,328 | ) | - | - | - | (1,329 | ) | |||||||||||||||||
Dividends
paid ($0.75 per share)
|
- | - | - | (6,404 | ) | - | - | (6,404 | ) | |||||||||||||||||||
Net
loss
|
- | - | - | (2,519 | ) | - | - | (2,519 | ) | |||||||||||||||||||
Balance
at March 31, 2008
|
8,451 | $ | 8 | $ | 76,481 | $ | (16,948 | ) | - | $ | - | $ | 59,541 |
Nine
Months Ended
March
31,
|
||||||||
2008
|
2007
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net income
(loss)
|
$ | (2,519 | ) | $ | 325 | |||
Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities:
|
||||||||
Depreciation and
amortization
|
1,797 | 1,332 | ||||||
Loss on disposal of fixed
assets
|
(1 | ) | - | |||||
Interest on note
receivable
|
(7 | ) | - | |||||
Stock-based compensation
expense
|
830 | 661 | ||||||
Tax benefit from exercising of
stock options
|
- | 623 | ||||||
Provision for bad debts and
credits
|
34 | 33 | ||||||
Provision for inventory write
down
|
10 | 1 | ||||||
Discontinued
operations
|
4 | (190 | ) | |||||
Deferred income
taxes
|
(1,434 | ) | (201 | ) | ||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
(495 | ) | 213 | |||||
Inventories
|
(641 | ) | (21 | ) | ||||
Prepaid expenses and other
current assets
|
(320 | ) | (602 | ) | ||||
Refundable income
taxes
|
120 | - | ||||||
Income taxes
payable
|
2 | (579 | ) | |||||
Other assets
|
(64 | ) | (80 | ) | ||||
Accounts
payable
|
(1 | ) | 365 | |||||
Accrued
liabilities
|
(162 | ) | (44 | ) | ||||
Deferred rent and other
long-term liabilities
|
40 | 74 | ||||||
Accrued compensation and
benefits
|
(502 | ) | 133 | |||||
Deferred
revenue
|
297 | 295 | ||||||
Net cash provided by (used in)
operating activities
|
(3,012 | ) | 2,338 | |||||
Net
cash provided by operating activities of discontinued
businesses
|
- | 65 | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital
expenditures
|
(1,436 | ) | (2,590 | ) | ||||
Proceeds
from sale of property and equipment
|
63 | - | ||||||
Purchase
of businesses, net of cash acquired
|
- | (6,316 | ) | |||||
Advances
on customer notes receivable
|
(5,343 | ) | (3,052 | ) | ||||
Proceeds
from collection of customer notes receivable
|
3,896 | 4,784 | ||||||
Purchase
of patents and other intangible assets
|
(20 | ) | (352 | ) | ||||
Capitalized
software
|
(943 | ) | (1,184 | ) | ||||
Cash
received on sale of discontinued businesses
|
67 | 324 | ||||||
Net
cash used in investing activities
|
(3,716 | ) | (8,386 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from exercise of stock
options
|
242 | 229 | ||||||
Payments for repurchase and
retirement of common stock
|
(1,329 | ) | (949 | ) | ||||
Dividends paid to common
stockholders
|
(6,404 | ) | (2,332 | ) | ||||
Net
cash used in financing activities
|
(7,491 | ) | (3,052 | ) | ||||
Net
decrease in cash and cash equivalents
|
(14,219 | ) | (9,035 | ) | ||||
Cash
and cash equivalents at beginning of period
|
42,386 | 52,110 | ||||||
Cash
and cash equivalents at end of period
|
$ | 28,167 | $ | 43,075 | ||||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Interest paid
|
$ | 15 | $ | 15 | ||||
Income taxes
paid
|
$ | 18 | $ | 868 |
Nine
Months Ended
March
31,
|
||||||||
2008
|
2007
|
|||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (CONTINUED) | ||||||||
Effective
July 1, 2006, the Company acquired Expos Unlimited, LLC (Expos) in a
transactionsummarized as follows:
|
||||||||
Fair value of net liabilities
assumed
|
$ | - | $ | (385 | ) | |||
Intangible
assets
|
- | 1,810 | ||||||
Goodwill
|
- | 1,001 | ||||||
Purchase price, net of $49 cash
acquired
|
$ | - | $ | 2,426 | ||||
Effective
August 18, 2006, the Company acquired American Gemological Laboratories,
Inc.(AGL) in a transaction summarized as follows:
|
||||||||
Fair value of net liabilities
assumed
|
$ | 2 | $ | (42 | ) | |||
Deferred tax liability
recognized at acquisition
|
110 | (1,205 | ) | |||||
Intangible
assets
|
(274 | ) | 3,030 | |||||
Goodwill
|
162 | 2,083 | ||||||
Purchase price, net of $81
cash acquired
|
$ | - | $ | 3,866 |
Business
|
Acquisition
Date
|
Purchase
Price
|
Expos
Unlimited, LLC
|
July
1, 2006
|
$2.5
million
|
American
Gemological Laboratories, Inc.
|
August
18, 2006
|
$3.9
million
|
Three
Months Ended
March
31,
(in
thousands)
|
Nine
Months Ended
March
31,
(in
thousands)
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Included
in:
|
||||||||||||||||
Cost
of revenues
|
$ | 101 | $ | 77 | $ | 223 | $ | 229 | ||||||||
Selling
and marketing expenses (1)
|
- | 3 | (7 | ) | 6 | |||||||||||
General
and administrative expenses(2)
|
217 | 161 | 614 | 426 | ||||||||||||
Pre-tax
stock-based compensation expense
|
$ | 318 | $ | 241 | $ | 830 | $ | 661 |
|
(1)
|
Includes
$8,000 related to a forfeiture of stock options during the nine months
ended March 31, 2008.
|
|
(2)
|
Includes
$88,000 and $255,000 in the three and nine months ended March 31, 2008,
respectively, and $66,000 and $104,000 in the three and nine months ended
March 31, 2007, respectively, for amortization of compensation expense
related to issuance of restricted
stock.
|
Three
Months Ended
March
31
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Dividend
yield
|
- | 3.4 | % | 6.9 | % | 2.5 | % | |||||||||
Expected
volatility
|
- | 49.0 | % | 48.4 | % | 51.1 | % | |||||||||
Risk-free
interest rate
|
- | 4.7 | % | 3.9 | % | 4.6 | % | |||||||||
Expected
lives
|
- |
5.1
yrs.
|
6.0
yrs
|
5.1
yrs.
|
Shares
|
Weighted
Average Exercise Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
||||||||||
Options:
|
|||||||||||||
Outstanding
at June 30, 2007
|
912,000 | $ | 12.98 |
6.4
yrs.
|
$ | 3,280,000 | |||||||
Granted
|
30,200 | 14.50 | |||||||||||
Exercised
|
(76,200 | ) | 4.22 | ||||||||||
Forfeited
or cancelled
|
(23,100 | ) | 14.35 | ||||||||||
Outstanding
at March 31, 2008
|
842,900 | $ | 13.79 |
5.8
yrs.
|
$ | 649,000 | |||||||
Exercisable
at March 31, 2008
|
604,700 | $ | 13.74 |
5.2
yrs.
|
$ | 648,000 | |||||||
Unvested
at March 31, 2008
|
238,200 | $ | 13.91 |
7.2
yrs.
|
$ | 2,000 | |||||||
Expect
to vest at March 31, 2008
|
209,000 | $ | 13.91 |
7.2
yrs.
|
$ | 2,000 |
Non-Vested
Shares:
|
Shares
|
Weighted
Average
Grant-Date
Fair
Value
|
||||||
Non-vested
at June 30, 2007
|
50,230 | $ | 13.68 | |||||
Granted
|
21,359 | 14.12 | ||||||
Vested
|
(17,680 | ) | 13.68 | |||||
Forfeited or
Cancelled
|
- | - | ||||||
Non-vested
at March 31, 2008
|
53,909 | $ | 13.86 |
Fiscal
Year Ending June 30,
|
Amount
|
|||
2008
|
$ | 237,000 | ||
2009
|
592,000 | |||
2010
|
251,000 | |||
2011
|
116,000 | |||
2012
|
14,000 | |||
$ | 1,210,000 |
|
Concentrations
|
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenue
|
$ | 10,896 | $ | 11,081 | $ | 31,685 | $ | 29,979 | ||||||||
Operating
loss
|
(1,542 | ) | (416 | ) | (4,862 | ) | (1,161 | ) | ||||||||
Interest
income, net
|
239 | 511 | 979 | 1,603 | ||||||||||||
Other
income
|
1 | 2 | 4 | 8 | ||||||||||||
Income
(loss) before provision for income taxes
|
(1,302 | ) | 97 | (3,879 | ) | 450 | ||||||||||
Provision
(benefit) for income taxes
|
(336 | ) | 165 | (1,364 | ) | 321 | ||||||||||
Income
(loss) from continuing operations
|
(966 | ) | (68 | ) | (2,515 | ) | 129 | |||||||||
Income
(loss) from discontinued operations
|
- | 99 | (4 | ) | 190 | |||||||||||
Net
income (loss)
|
$ | (966 | ) | $ | 31 | $ | (2,519 | ) | $ | 319 | ||||||
Net
income (loss) per basic share:
|
||||||||||||||||
Income (loss) from continuing
operations
|
$ | (0.11 | ) | $ | (0.01 | ) | $ | (0.30 | ) | $ | 0.02 | |||||
Income from discontinued
operations
|
$ | - | $ | 0.01 | $ | - | $ | 0.02 | ||||||||
Net
income (loss)
|
$ | (0.11 | ) | $ | - | $ | (0.30 | ) | $ | 0.04 | ||||||
Net
income (loss) per diluted share:
|
||||||||||||||||
Income (loss) from continuing
operations
|
$ | (0.11 | ) | $ | (0.01 | ) | $ | (0.30 | ) | $ | 0.02 | |||||
Income from discontinued
operations
|
$ | - | $ | 0.01 | $ | - | $ | 0.02 | ||||||||
Net
income (loss)
|
$ | (0.11 | ) | $ | - | $ | (0.30 | ) | $ | 0.04 |
4.
|
INVENTORIES
|
Inventories
consist of the following:
|
||||||||
(in
thousands)
|
||||||||
March
31,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
Coins
|
$ | 870 | $ | 253 | ||||
Other
collectibles
|
28 | 33 | ||||||
Grading
raw materials consumable inventory
|
277 | 247 | ||||||
1,175 | 533 | |||||||
Less
inventory
reserve
|
(102 | ) | (91 | ) | ||||
Inventories,
net
|
$ | 1,073 | $ | 442 |
Property
and equipment consist of the following:
|
||||||||
(in
thousands)
|
||||||||
March
31,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
Coins
and stamp grading reference sets
|
$ | 643 | $ | 222 | ||||
Computer
hardware and equipment
|
1,823 | 1,664 | ||||||
Computer
software
|
1,035 | 1,027 | ||||||
Equipment
|
3,969 | 3,366 | ||||||
Furniture
and office
equipment
|
1,115 | 1,064 | ||||||
Leasehold
improvements
|
1,586 | 1,452 | ||||||
Trading
card reference
library
|
52 | 52 | ||||||
10,223 | 8,847 | |||||||
Less
accumulated depreciation and amortization
|
(5,679 | ) | (4,766 | ) | ||||
Property
and equipment, net
|
$ | 4,544 | $ | 4,081 |
Accrued
liabilities consist of the following:
|
(in
thousands)
|
|||||||
March
31,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
Warranty
costs
|
$ | 687 | $ | 735 | ||||
Professional
fees
|
88 | 183 | ||||||
Other
|
1,219 | 1,236 | ||||||
$ | 1,994 | $ | 2,154 |
(in
thousands)
|
||||||||
Nine
Months
Ended
March
31,
|
Nine
Months
Ended
March
31,
|
|||||||
2008
|
2007
|
|||||||
Warranty
reserve, beginning of
period
|
$ | 735 | $ | 710 | ||||
Charged
to cost of
revenue
|
1,193 | 288 | ||||||
Payments
|
(1,241 | ) | (268 | ) | ||||
Warranty
reserve, end of
period
|
$ | 687 | $ | 730 |
7.
|
DISCONTINUED
OPERATIONS
|
(in
thousands)
|
(in
thousands)
|
|||||||||||||||
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
revenues
|
$ | 1 | $ | 5 | $ | 18 | $ | 54 | ||||||||
Income
(loss) before income taxes
|
- | 22 | (7 | ) | 63 | |||||||||||
Gain
on sale of discontinued businesses
|
- | 101 | - | 252 | ||||||||||||
- | 123 | (7 | ) | 315 | ||||||||||||
Income
tax (expense) benefit
|
- | (24 | ) | 3 | (125 | ) | ||||||||||
Income
(loss) from discontinued operations
|
$ | - | $ | 99 | $ | (4 | ) | $ | 190 |
8.
|
INCOME
TAXES
|
(in
thousands)
|
(in
thousands)
|
|||||||||||||||
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Income
(loss) from continuing operations
|
$ | (966 | ) | $ | (68 | ) | $ | (2,515 | ) | $ | 135 | |||||
Income
(loss) from discontinued operations, net of gain on
sales
of discontinued businesses
(net
of income taxes)
|
- | 99 | (4 | ) | 190 | |||||||||||
Net
income (loss)
|
$ | (966 | ) | $ | 31 | $ | (2,519 | ) | $ | 325 | ||||||
NET
INCOME PER SHARE–BASIC:
|
||||||||||||||||
Income (loss) from continuing
operations
|
$ | (0.11 | ) | $ | (0.01 | ) | $ | (0.30 | ) | $ | 0.02 | |||||
Income from discontinued
operations, net of gain on
sales
of discontinued businesses (net
of income taxes)
|
- | 0.01 | - | 0.02 | ||||||||||||
Total
|
$ | (0.11 | ) | $ | - | $ | (0.30 | ) | $ | 0.04 | ||||||
NET
INCOME PER SHARE–DILUTED:
|
||||||||||||||||
Income (loss) from continuing
operations
|
$ | (0.11 | ) | $ | (0.01 | ) | $ | (0.30 | ) | $ | 0.02 | |||||
Income from discontinued
operations, net of gain on
sales of
discontinued
businesses (net
of income taxes)
|
- | 0.01 | - | 0.02 | ||||||||||||
Total
|
$ | (0.11 | ) | $ | - | $ | (0.30 | ) | $ | 0.04 | ||||||
WEIGHTED
AVERAGE SHARES OUTSTANDING:
|
||||||||||||||||
Basic
|
8,470 | 8,381 | 8,475 | 8,346 | ||||||||||||
Effect of dilutive
shares
|
- | 206 | - | 266 | ||||||||||||
Diluted
|
8,470 | 8,587 | 8,475 | 8,612 |
10.
|
BUSINESS
SEGMENTS
|
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
Net
revenues from external customers:
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Coins
|
$ | 6,154 | $ | 6,793 | $ | 17,720 | $ | 17,279 | ||||||||
Sportscards
|
2,226 | 2,156 | 6,710 | 6,507 | ||||||||||||
Jewelry
|
350 | 270 | 1,264 | 936 | ||||||||||||
Other
|
2,166 | 1,862 | 5,991 | 5,050 | ||||||||||||
Total revenue
|
$ | 10,896 | $ | 11,081 | $ | 31,685 | $ | 29,772 | ||||||||
Amortization
and depreciation:
|
||||||||||||||||
Coins
|
$ | 62 | $ | 72 | $ | 182 | $ | 148 | ||||||||
Sportscards
|
37 | 22 | 84 | 64 | ||||||||||||
Jewelry
|
333 | 190 | 970 | 477 | ||||||||||||
Other
|
113 | 121 | 307 | 408 | ||||||||||||
Total
|
545 | 405 | 1,543 | 1,097 | ||||||||||||
Unallocated amortization and
depreciation
|
87 | 75 | 254 | 235 | ||||||||||||
Consolidated amortization and
depreciation
|
$ | 632 | $ | 480 | $ | 1,797 | $ | 1,332 | ||||||||
Stock-based
compensation:
|
||||||||||||||||
Coins
|
$ | 63 | $ | 55 | $ | 131 | $ | 168 | ||||||||
Sportscards
|
9 | 3 | 18 | 23 | ||||||||||||
Jewelry
|
3 | 2 | 9 | 4 | ||||||||||||
Other
|
40 | 25 | 97 | 76 | ||||||||||||
Total
|
115 | 85 | 255 | 271 | ||||||||||||
Unallocated stock-based
compensation
|
203 | 156 | 575 | 390 | ||||||||||||
Consolidated stock-based
compensation
|
$ | 318 | $ | 241 | $ | 830 | $ | 661 | ||||||||
Operating
loss before unallocated expenses:
|
||||||||||||||||
Coins
|
$ | 1,984 | $ | 2,976 | $ | 4,925 | $ | 7,098 | ||||||||
Sportscards
|
374 | 292 | 1,317 | 1,044 | ||||||||||||
Jewelry
|
(2,138 | ) | (1,845 | ) | (5,830 | ) | (3,387 | ) | ||||||||
Other
|
105 | 186 | 427 | 333 | ||||||||||||
Total
|
325 | 1,609 | 839 | 5,088 | ||||||||||||
Unallocated operating
expenses
|
(1,867 | ) | (2,025 | ) | (5,701 | ) | (6,249 | ) | ||||||||
Consolidated operating
loss
|
$ | (1,542 | ) | $ | (416 | ) | $ | (4,862 | ) | $ | (1,161 | ) |
March
31,
|
June
30,
|
|||||||
Identifiable
Assets:
|
2008
|
2007
|
||||||
Coins
|
$ | 3,748 | $ | 2,622 | ||||
Sportscards
|
825 | 582 | ||||||
Jewelry
|
20,431 | 20,453 | ||||||
Other
|
9,368 | 7,866 | ||||||
Total
|
34,372 | 31,523 | ||||||
Unallocated
assets
|
34,578 | 46,578 | ||||||
Consolidated
assets
|
$ | 68,950 | $ | 78,101 |
March
31,
|
June
30,
|
|||||||
Goodwill:
|
2008
|
2007
|
||||||
Coins
|
$ | 515 | $ | 515 | ||||
Jewelry
|
10,410 | 10,251 | ||||||
Other
|
2,113 | 2,118 | ||||||
Consolidated
assets
|
$ | 13,038 | $ | 12,884 |
11.
|
LINE
OF CREDIT
|
12.
|
LEGAL
MATTERS
|
13.
|
SUBSEQUENT
EVENT
|
ITEM
2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF
OPERATIONS
|
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
revenues
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost
of
revenues
|
55.0 | % | 46.4 | % | 56.8 | % | 46.6 | % | ||||||||
Gross
profit
|
45.0 | % | 53.6 | % | 43.2 | % | 53.4 | % | ||||||||
Operating
expenses:
|
||||||||||||||||
Selling and marketing
expenses
|
19.9 | % | 21.8 | % | 19.1 | % | 17.1 | % | ||||||||
General and administrative
expenses
|
36.3 | % | 33.6 | % | 36.7 | % | 38.3 | % | ||||||||
Amortization of intangible
assets
|
2.9 | % | 2.0 | % | 2.8 | % | 1.9 | % | ||||||||
Total operating
expenses
|
59.1 | % | 57.4 | % | 58.6 | % | 57.3 | % | ||||||||
Operating
loss
|
(14.1 | %) | (3.8 | %) | (15.4 | %) | (3.9 | %) | ||||||||
Interest
income,
net
|
2.2 | % | 4.6 | % | 3.1 | % | 5.5 | % | ||||||||
Other
income
|
- | 0.1 | % | 0.1 | % | - | ||||||||||
Income
(loss) before provision for income
taxes
|
(11.9 | %) | 0.9 | % | (12.2 | %) | 1.6 | % | ||||||||
Provision
(benefit) for income
taxes
|
(3.0 | %) | 1.5 | % | (4.2 | %) | 1.1 | % | ||||||||
Income
(loss) from continuing operations after income taxes
|
(8.9 | %) | (0.6 | %) | (8.0 | %) | 0.5 | % | ||||||||
Income
from discontinued operations, net of gain on sales of
discontinued
businesses (net of income
taxes)
|
- | 0.9 | % | - | 0.6 | % | ||||||||||
Net
income
(loss)
|
(8.9 | %) | 0.3 | % | (8.0 | %) | 1.1 | % |
Units
Processed
Three
Months Ended March 31,
|
Declared
Value (000)
Three
Months Ended March 31,
|
|||||||||||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||||||||||||
Coins
|
484,100 | 54.2 | % | 400,000 | 50.4 | % | $ | 336,683 | 69.6 | % | $ | 365,597 | 83.8 | % | ||||||||||||||||||
Sportscards
|
327,000 | 36.6 | % | 321,600 | 40.6 | % | 25,865 | 5.3 | % | 22,503 | 5.2 | % | ||||||||||||||||||||
Autographs
|
49,000 | 5.5 | % | 39,800 | 5.0 | % | 4,514 | 0.9 | % | 5,488 | 1.3 | % | ||||||||||||||||||||
Stamps
|
12,400 | 1.4 | % | 16,900 | 2.1 | % | 5,321 | 1.1 | % | 3,077 | 0.6 | % | ||||||||||||||||||||
Currency
|
14,400 | 1.6 | % | 9,000 | 1.1 | % | 9,855 | 2.1 | % | 8,201 | 1.9 | % | ||||||||||||||||||||
Diamonds
|
4,900 | 0.5 | % | 5,100 | 0.7 | % | 56,375 | 11.6 | % | 17,661 | 4.0 | % | ||||||||||||||||||||
Colored
Gemstones*
|
1,400 | 0.2 | % | 800 | 0.1 | % | 45,542 | 9.4 | % | 13,924 | 3.2 | % | ||||||||||||||||||||
Total
|
893,200 | 100.0 | % | 793,200 | 100.0 | % | $ | 484,155 | 100.0 | % | $ | 436,451 | 100.0 | % |
Units
Processed
Nine
Months Ended March 31,
|
Declared
Value (000)
Nine
Months Ended March 31,
|
|||||||||||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||||||||||||
Coins
|
1,144,000 | 48.2 | % | 1,162,700 | 50.3 | % | $ | 1,048,444 | 72.3 | % | $ | 1,153,192 | 82.9 | % | ||||||||||||||||||
Sportscards
|
978,500 | 41.2 | % | 938,700 | 40.6 | % | 67,863 | 4.7 | % | 66,666 | 4.8 | % | ||||||||||||||||||||
Autographs
|
143,800 | 6.1 | % | 117,800 | 5.1 | % | 21,148 | 1.5 | % | 20,114 | 1.4 | % | ||||||||||||||||||||
Stamps
|
43,800 | 1.8 | % | 47,200 | 2.0 | % | 17,308 | 1.2 | % | 8,433 | 0.6 | % | ||||||||||||||||||||
Currency
|
36,200 | 1.5 | % | 25,200 | 1.1 | % | 31,783 | 2.2 | % | 24,096 | 1.7 | % | ||||||||||||||||||||
Diamonds
|
24,600 | 1.1 | % | 20,000 | 0.9 | % | 195,002 | 13.4 | % | 74,795 | 5.4 | % | ||||||||||||||||||||
Colored
Gemstones*
|
3,400 | 0.1 | % | 1,000 | - | 67,904 | 4.7 | % | 44,111 | 3.2 | % | |||||||||||||||||||||
Total
|
2,374,300 | 100.0 | % | 2,312,600 | 100.0 | % | $ | 1,449,453 | 100.0 | % | $ | 1,391,407 | 100.0 | % |
Three
Months Ended March 31,
|
||||||||||||||||||||||||
2008
|
2007
|
Increase
(Decrease)
|
||||||||||||||||||||||
Amount
|
%
of Net
Revenues
|
Amount
|
%
of Net
Revenues
|
Amount
|
Percent
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Product
revenues
|
$ | 21 | 0.2 | % | $ | 13 | 0.1 | % | $ | 8 | 61.5 | % | ||||||||||||
Grading
and authentication fees
|
9,007 | 82.7 | % | 9,526 | 86.0 | % | (519 | ) | (5.4 | %) | ||||||||||||||
Other
related services
|
1,868 | 17.1 | % | 1,542 | 13.9 | % | 326 | 21.1 | % | |||||||||||||||
Total
services
|
10,875 | 99.8 | % | 11,068 | 99.9 | % | (193 | ) | (1.7 | %) | ||||||||||||||
Total
net revenues
|
$ | 10,896 | 100.0 | % | $ | 11,081 | 100.0 | % | $ | (185 | ) | (1.7 | %) |
Nine
Months Ended March 31,
|
||||||||||||||||||||||||
2008
|
2007
|
Increase
(Decrease)
|
||||||||||||||||||||||
Amount
|
%
of Net
Revenues
|
Amount
|
%
of Net
Revenues
|
Amount
|
Percent
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Product
revenues
|
$ | 928 | 2.9 | % | $ | 143 | 0.5 | % | $ | 785 | 549.0 | % | ||||||||||||
Grading
and authentication fees
|
25,658 | 81.0 | % | 25,296 | 85.0 | % | 362 | 1.4 | % | |||||||||||||||
Other
related services
|
5,099 | 16.1 | % | 4,333 | 14.5 | % | 766 | 17.7 | % | |||||||||||||||
Total
services
|
30,757 | 97.1 | % | 29,629 | 99.5 | % | 1,128 | 3.8 | % | |||||||||||||||
Total
net revenues
|
$ | 31,685 | 100.0 | % | $ | 29,772 | 100.0 | % | $ | 1,913 | 6.4 | % |
Three
Months Ended March 31,
|
||||||||||||||||||||||||||||||||
2008
|
2007
|
2008
vs. 2007
|
||||||||||||||||||||||||||||||
Increase
(Decrease)
|
||||||||||||||||||||||||||||||||
%
of Net
|
%
of Net
|
Revenues
|
Units
Processed
|
|||||||||||||||||||||||||||||
Amount
|
Revenues
|
Amount
|
Revenues
|
Amount
|
Percent
|
Number
|
Percent
|
|||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||
Product
revenues
|
$ | 21 | 0.2 | % | $ | 13 | 0.1 | % | $ | 8 | 61.5 | % | N/A | N/A | ||||||||||||||||||
Coins
|
6,133 | 56.3 | % | 6,780 | 61.2 | % | (647 | ) | (9.5 | %) | 84 | 21.0 | % | |||||||||||||||||||
Sportscards
|
2,226 | 20.4 | % | 2,156 | 19.5 | % | 70 | 3.2 | % | 5 | 1.7 | % | ||||||||||||||||||||
Other
(1)
|
2,516 | 23.1 | % | 2,132 | 19.2 | % | 384 | 18.0 | % | 11 | 14.7 | % | ||||||||||||||||||||
Net
Revenues
|
$ | 10,896 | 100.0 | % | $ | 11,081 | 100.0 | % | $ | (185 | ) | (1.7 | %) | 100 | 12.6 | % |
Nine
Months Ended March 31,
|
|||||||||||||||||||||||||||||||||
2008
|
2007
|
2008
vs. 2007
|
|||||||||||||||||||||||||||||||
Increase
(Decrease)
|
|||||||||||||||||||||||||||||||||
%
of Net
|
%
of Net
|
Revenues
|
Units
Processed
|
||||||||||||||||||||||||||||||
Amount
|
Revenues
|
Amount
|
Revenues
|
Amount
|
Percent
|
Number
|
Percent
|
||||||||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||||
Product
revenues
|
$ | 928 | 2.9 | % | $ | 143 | 0.5 | % | $ | 785 | 549.0 | % | N/A | N/A | |||||||||||||||||||
Coins
|
16,792 | 53.0 | % | 17,136 | 57.6 | % | (344 | ) | (2.0 | %) | (19 | ) | (1.6 | %) | |||||||||||||||||||
Sportscards
|
6,710 | 21.2 | % | 6,507 | 21.8 | % | 203 | 3.1 | % | 40 | 4.2 | % | |||||||||||||||||||||
Other
(1)
|
7,255 | 22.9 | % | 5,986 | 20.1 | % | 1,269 | 21.2 | % | 41 | 19.2 | % | |||||||||||||||||||||
Net
Revenues
|
$ | 31,685 | 100.0 | % | $ | 29,772 | 100.0 | % | $ | 1,913 | 6.4 | % | 62 | 2.7 | % |
(1)
|
Consists
of autographs, stamps, currency, diamonds and colored gemstones, CCE
subscription business, our CFC dealer financing business, and our
collectibles convention business.
|
Three
Months Ended March 31,
|
Nine
Months Ended March 31,
|
|||||||||||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||||||||||||
Gross
Profit
|
Gross
Profit
|
Gross
Profit
|
Gross
Profit
|
|||||||||||||||||||||||||||||
Amount
|
Margin
|
Amount
|
Margin
|
Amounts
|
Margin
|
Amount
|
Margin
|
|||||||||||||||||||||||||
Gross
profit-products
|
$ | 1 | 4.8 | % | $ | 5 | 38.5 | % | $ | 87 | 9.4 | % | $ | 35 | 24.5 | % | ||||||||||||||||
Gross
profit-services
|
4,898 | 45.0 | % | 5,938 | 53.6 | % | 13,604 | 44.2 | % | 15,876 | 53.6 | % | ||||||||||||||||||||
Gross
profit-totals
|
$ | 4,899 | 45.0 | % | $ | 5,943 | 53.6 | % | $ | 13,691 | 43.2 | % | $ | 15,911 | 53.4 | % |
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Selling
and marketing expenses
|
$ | 2,164,000 | $ | 2,411,000 | $ | 6,043,000 | $ | 5,106,000 | ||||||||
Percent
of net
revenue
|
19.9 | % | 21.8 | % | 19.1 | % | 17.1 | % |
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
General
and administrative expenses
|
$ | 3,960,000 | $ | 3,729,000 | $ | 11,637,000 | $ | 11,389,000 | ||||||||
Percent
of net revenues
|
36.3 | % | 33.6 | % | 36.7 | % | 38.3 | % |
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Amortization
expense
|
$ | 317,000 | $ | 219,000 | $ | 873,000 | $ | 577,000 | ||||||||
Percent
of net revenues
|
2.9 | % | 2.0 | % | 2.8 | % | 1.9 | % |
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
Included
in:
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Cost
of revenues
|
$ | 101,000 | $ | 77,000 | $ | 223,000 | $ | 229,000 | ||||||||
Selling
and marketing expenses
|
- | 3,000 | (7,000 | ) | 6,000 | |||||||||||
General
and administrative expenses
|
217,000 | 161,000 | 614,000 | 426,000 | ||||||||||||
$ | 318,000 | $ | 241,000 | $ | 830,000 | $ | 661,000 |
Fiscal
Year Ending June 30,
|
Amount
|
|||
2008
|
$ | 237,000 | ||
2009
|
592,000 | |||
2010
|
251,000 | |||
2011
|
116,000 | |||
2012
|
14,000 | |||
$ | 1,210,000 |
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Interest
income,
net
|
$ | 239,000 | $ | 511,000 | $ | 979,000 | $ | 1,624,000 | ||||||||
Percent
of net
revenue
|
2.2 | % | 4.6 | % | 3.1 | % | 5.5 | % |
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Provision
(benefit) for income taxes
|
$ | (336,000 | ) | $ | 165,000 | $ | (1,364,000 | ) | $ | 336,000 | ||||||
Percent
of net
revenues
|
(3.0 | %) | 1.5 | % | (4.2 | %) | 1.1 | % |
Three
Months Ended
March
31,
|
Nine
Months Ended
March
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Income
(loss) from discontinued operations, net of gain on sales of discontinued
businesses (net of income taxes).
|
$ | - | $ | 99,000 | $ | (4,000 | ) | $ | 190,000 | |||||||
Percent
of net revenues
|
- | 0.9 | % | - | 0.6 | % |
Fiscal
Year
|
Amount
|
|||
2008(remaining
3 months)
|
$ | 455,000 | ||
2009
|
2,212,000 | |||
2010
|
1,415,000 | |||
2011
|
979,000 | |||
2012
|
985,000 | |||
Thereafter
|
5,066,000 | |||
$ | 11,112,000 |
·
|
changes
in general economic conditions generally or changes in conditions in the
collectibles or high-value assets markets in which we operate, such as a
possible decline in the popularity of some high-value collectibles or
assets, either of which could reduce the volume of authentication and
grading submissions and, therefore, the grading fees we
generate;
|
·
|
a
lack of diversity in our sources of revenues and, more particularly, our
dependence on collectible coin authentication and grading for a
significant percentage of our total revenues, which makes us more
vulnerable to adverse changes in economic conditions, including volatility
in the value of precious metals or recessionary or other conditions that
could lead to reduced coin and other collectibles submissions or trade
show activities that would, in turn, result in reductions in our revenues
and income;
|
·
|
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;
|
·
|
the
fact that for the fiscal year ended June 30, 2007 and the nine months
ended March 31, 2008, our five largest coin authentication and grading
customers accounted, in the aggregate, for approximately 14% and 11% of
our net revenues, respectively, which means that the loss of any of those
customers, or a reduction in their grading submissions to us, would result
in a decline in our revenues and a reduction in our operating
income;
|
·
|
increased
competition from other collectibles’ authentication and grading companies
that could result in reductions in collectibles submissions to us or could
require us to reduce the prices we charge for our services, either of
which could result in reductions in our revenue and
income;
|
·
|
the
risk that we will incur unanticipated liabilities under our authentication
and grading warranties that would increase our operating
expenses;
|
·
|
the
risk that warranty claims will increase to a higher level than in the past
such that we will have to recognize additional warranty accruals in
anticipation of these claims and our ongoing warranty accrual rate will
need to be increased to cover potential higher claims in the
future;
|
·
|
the
risk that new collectibles service offerings and business initiatives,
such as autograph, stamp and paper currency grading services, diamonds and
colored gemstones, and our dealer financing program, will not gain market
acceptance or will be unsuccessful and will, as a result, increase our
operating expenses and reduce our overall profitability or cause us to
incur losses;
|
·
|
the
risks involved in acquiring existing or commencing new authentication and
grading businesses, including the risks that we will be unable to
successfully integrate new businesses into our operations; that our new
businesses (in particular our diamond and colored gemstones businesses)
may not gain market acceptance; that business expansion may result in a
costly diversion of management time and resources from our existing
businesses and increase our operating expenses; that acquisition-related
goodwill and intangible assets may become impaired, which could adversely
impact our financial statements and results of operations; and that we
will not achieve adequate returns on the investments we may make in
acquiring other or establishing new businesses, any of which would harm
our profitability or cause us to incur
losses;
|
·
|
the
risks that we will encounter problems with or failures of our computer
systems that would interrupt our services or result in loss of data that
we need for our business; and
|
·
|
the
potential of increased government regulation of our businesses that could
cause operating costs to increase.
|
ITEM
1.
|
ITEM
1A.
|
(a)
|
(b)
|
(c)
|
(d)
|
|||||||||||||
Monthly
Periods
Through
March 31, 2008
|
Total
Number
of
Shares Purchased
|
Average Price
Paid
per Share
|
Total Number
of
Shares
Purchased
as
Part of Publicly
Announced
Program
|
Approximate
Dollar
Value
of Shares that
May
Yet Be
Purchased
under
the Programs
|
||||||||||||
January
1 to January 31, 2008
|
0 | N/A | N/A | $ | 6,437,372 | |||||||||||
February
1 to February 28, 2008
|
42,865 | $ | 9.62 | 412,450 | $ | 6,024,922 | ||||||||||
March
1 to March 31, 2008
|
99,011 | $ | 9.18 | 908,614 | $ | 5,116,308 | ||||||||||
Total
|
141,876 | $ | 9.31 | 1,321,064 |
ITEM
6.
|
(a)
|
Exhibits:
|
|
Exhibit
31.1
|
Certification
of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of
2002
|
|
Exhibit
31.2
|
Certification
of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of
2002
|
|
Exhibit
32.1
|
Chief
Executive Officer Certification Under Section 906 of the Sarbanes-Oxley
Act of 2002
|
|
Exhibit
32.2
|
Chief
Financial Officer Certification Under Section 906 of the Sarbanes-Oxley
Act of 2002
|
COLLECTORS
UNIVERSE, INC.
|
||
Date: May
9, 2008
|
/s/
MICHAEL R. HAYNES
|
|
Michael
R. Haynes
|
||
Chief
Executive Officer
|
COLLECTORS
UNIVERSE, INC.
|
||
Date: May
9, 2008
|
/s/
JOSEPH J. WALLACE
|
|
Joseph
J. Wallace
|
||
Chief
Financial Officer
|
Number
|
Description
|
Exhibit
31.1
|
Certification
of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of
2002
|
Exhibit
31.2
|
Certification
of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of
2002
|
Exhibit
32.1
|
Chief
Executive Officer Certification Under Section 906 of the Sarbanes-Oxley
Act of 2002
|
Exhibit
32.2
|
Chief
Financial Officer Certification Under Section 906 of the Sarbanes-Oxley
Act of 2002
|