Collectors Universe Provides Business Update Regarding the Coronavirus Outbreak and its Anticipated Effects on Future Financial Results

NEWPORT BEACH, Calif., March 25, 2020 (GLOBE NEWSWIRE) -- Collectors Universe, Inc. (NASDAQ: CLCT), a leading provider of value-added authentication and grading services to dealers and collectors of collectibles, is providing the following business update.

On March 19, 2020, the Governor of California, Gavin Newsom, issued a “shelter-in-place” order for the entirety of the State of California.  That order became effective on March 20, 2020 and will, by its terms, continue in effect indefinitely until further notice, except for businesses that engage in essential activities.

In light of the widespread concerns about the spread and the health risks posed by the coronavirus outbreak, on March 20, 2020 we decided to cease our coin, sports card and memorabilia authentication and grading operations in California, at least temporarily, to enable us to listen to any concerns that our employees might have and to determine our options in responding to the coronavirus outbreak.  Those options could include resuming our authentication and grading operations, while at the same time changing the configuration of our grading floor and limiting the number of employees that may be onsite at any time in order to maintain social distancing.

The cessation of our authentication and grading operations in California, even if temporary, will adversely affect our operating results for the month of March 2020.  Also, if we determine that it is necessary to extend the duration of the cessation of those operations to protect the health and wellbeing of our employees and community, there is likely to be a greater adverse impact on our operating results for our fourth quarter, and for our full fiscal year, ending June 30, 2020.

As we previously reported in our second quarter earnings release issued on February 4, 2020, our operations in China have also been adversely impacted by the coronavirus outbreak there.  However, due to the recent slowing of that epidemic and the relaxing of quarantine restrictions in China, we have resumed limited authentication and grading operations in China and Hong Kong.

As we closely monitor the impact of the coronavirus pandemic and consider our options, our top priority will be to maintain the health and safety of our employees and our community.  The situation is evolving and, as a result, we intend to provide updates during our next earnings call, or possibly sooner by press release, as events dictate.