PSA Grading Fewer Low Value Sports Cards

Collectors Universe, parent company of sports card grader PSA reported a decrease of just under $1 million in net revenue from a year ago.

The company's first quarter 2009 fiscal report shows CU's revenue from the grading and authentication of sports cards fell by $91,000 (5%) from the same quarter in 2008. In a conference call with shareholders Monday, the company attributed the small decrease to fewer cards being submitted for review, primarily lower value cards. The loss was offset by an increase in the average service fee for the units graded in the quarter.

CU handles coins, stamps, jewelry and other collectibles in addition to its sports card grading business. It reported a $1 million decrease in authentication and grading fees overall.

Michael Haynes, Chief Executive Officer, stated, "Our legacy coin and sports card grading businesses are in the process of adjusting capacity to meet current demand levels and we expect to see improvements in these businesses operating results over the next several quarters. Although coin grading revenues were lower in the first quarter of fiscal 2009 over the prior year period, due to decreases in the volume of coin show and modern coin grading submissions, our core vintage coin grading business increased during the quarter, both in unit volume and revenue. The jewelry segment continues to improve year over year, generating higher revenues while achieving reductions in its operating costs, continuing a trend of improved results in this segment that began in the previous quarter."

CU reported net company revenues of $9.7 million with a loss from operations of $1.3 million. Operating expenses were $5.9 million compared to $6.2 million last year. CU's Haynes also said the company had working capital of $23 million with no long-term debt.

"With our balance sheet consisting of almost 50% cash and no debt, coupled with our operating improvements and market share in our various collectibles businesses, we believe we will be able to effectively navigate the company through this period of challenging economic conditions and position ourselves to achieve further growth and improvements in our operating results as economic conditions begin to improve."