Collectors Universe Delays Earnings, Says Loss Widens

Collectors Universe will delay the filing of its annual report for its fiscal year ended June 30, 2008, but warned that preliminary data showed that its annual operating and pre-tax loss had increased.

The grading services provider said in a statement released on Tuesday that preliminary information showed its annual operating loss and pre-tax loss had widened to $6.5 million and $5.4 million respectively for fiscal 2008, from a loss of $2.9 million and $0.8 million respectively in fiscal 2007.

For the fourth quarter Collectors Universe noted a decrease in operating loss to $1.7 million from a loss of $1.8 million in 2007, and an increase in pre-tax loss to $1.5 million from $1.3 million.

The company said the decrease in its fourth-quarter operating loss, before including a possible impairment charge, was primarily due to lower trade show coin revenues being offset by higher revenues in its other businesses and lower operating expenses, while the increased pre-tax loss reflected lower interest income.

Collectors Universe, which is the parent of GCAL and AGL, decided to delay filing its annual report as it is conducting a valuation to determine the amount of a non-cash impairment charge related to its jewelry businesses’ assets and the associated income tax provision.