Collectors Universe Reports Preliminary Operating Results for the Second Quarter of Fiscal 2021

NEWPORT BEACH, Calif., Jan. 20, 2021 (GLOBE NEWSWIRE) -- Collectors Universe, Inc. (NASDAQ: CLCT) (“Collectors Universe” or the “Company”), a leading provider of value-added authentication and grading services to dealers and collectors of collectibles, today announced preliminary financial results for the second quarter ended December 31, 2020.

The Company expects second quarter revenues to be approximately $35.4 million. For the same period, gross margin is expected to be approximately 64% and operating income is expected to be approximately $10.0 million, after transaction costs of approximately $3.0 million and non-cash stock-based compensation costs of approximately $1.8 million. These preliminary results are subject to change, and are expected to be finalized in early February 2021, as the Company progresses through its normal quarter-end processes.

Joseph J. Orlando, President and Chief Executive Officer, said, “Collectors Universe achieved strong second quarter operating results. Our second quarter performance was largely attributable to an increase in top-tier services performed by our PSA division. These smaller batch, rapid turnaround services have resulted in an average selling price, or ASP, that is 35% higher than the prior quarter and approximately 65% higher than the average ASP currently reflected in our backlog. As noted during our Q1 2021 earnings call, the average ASP in PSA can fluctuate due to changes in submission mix and overall market conditions. Our forecast for fiscal year 2022 and beyond remains unchanged in light of expected downward pressure on ASP as we work through our sizable backlog.”

Tender Offer

In a separate press release issued today, Collectors Universe announced that it has entered into an amended and restated merger agreement under which Cards Acquisition Inc., an affiliate of the investor group led by Nat Turner, D1 Capital Partners L.P., and Cohen Private Ventures, LLC, has increased its offer to acquire all of the outstanding shares of Collectors Universe to $92.00 per share in cash. The “best and final” offer represents an approximately 32% premium to Collectors Universe’s unaffected share price on November 25, 2020, the last full trading day before the transaction was announced, and a premium of 18% to the Company’s closing share price on January 19, 2021. The tender offer commenced on December 17, 2020 and has been extended to February 3, 2021.