Collectors Universe Q4 Loss Drops to $13.1 mln
October 02, 08Collectors Universe posted a $13.1 million net loss in its fourth fiscal quarter ending June 30, 2008, as earnings were weighed down by higher impairment charges, the grading services provider said in a statement.
Collectors Universe, which is the parent of GCAL and AGL, warned in September it would post an increase in its operating and pre-tax loss. It had posted a loss of $878,000 in the year earlier quarter.
Total operating expenses in the fourth quarter rose 148 percent to $17.4 million from $7 million a year ago underpinned by a non-cash impairment of $11.2 million to goodwill and other assets of the company’s jewelry businesses.
Collectors Universe’s fourth quarter revenues fell 3.6 percent to $10.3 million from $10.7 million the previous year. The company noted that its revenues were weighed down by a 14 percent decrease in coin revenues, but said that a 10 percent increase in non-coin revenues, and in particular from jewelry, helped offset the drop in earnings.
"Our jewelry division operating results improved as compared to the fourth quarter of the prior fiscal year ended June 30, 2007 and although the annual growth is slower than anticipated in part as a result of this macro-economic environment, we are seeing steady progress in this new market for the company,” Michael Haynes, chief executive of Collectors Universe said in the statement.
Jewelry grading revenues increased by 24 percent quarter-over-quarter and by 35 percent year-over-year driven by unit volume increases.
For the full fiscal year, Collectors Universe said its net loss had sunk to $15.6 million from $515,000 the previous year. Net revenues were slightly higher at $41.98 million from $40.45 million, while total operating expenses had widened to $35.98 million from $24.09 million.
"Our core business in the Collectibles Group is fundamentally healthy with large market shares and positive cash flows and with the recently implemented operational improvements to lower costs and increase efficiencies, we expect to realize improvement of operating margins,” Haynes said.