Collectors Universe, Inc., parent company of PSA and PSA/DNA says its revenue from the card and autograph side of its grading and authentication business grew 6 percent during the 2015 fiscal year. In a conference call with shareholders Thursday, CU indicated service revenues increased to a record $61.6 million, up $1.1 million or 2 percent from the previous record set last year.
The increase was driven by an $800,000 (six percent) growth in the card and autograph area of the company’s business.
Coin service revenues were “substantially unchanged” according to a company news release.
- In the fourth quarter of fiscal 2015, service revenues declined by $1.3 million, or 8%, to $15.2 million as compared to $16.5 million in the fourth quarter of fiscal 2014. That decline was driven by a $1.5 million, or 13%, decrease in coin service revenues, resulting from lower revenues earned from the Baseball Hall of Fame modern coin program and a slowing in the coin market. Revenue from cards and autographs increased by 4 percent in this year’s fourth quarter as compared to the same quarter of fiscal 2014, representing the 20th consecutive quarter of quarter-over-quarter revenue growth for that business.
- The services gross profit margin was 59% in the fourth quarter of fiscal 2015 as compared to 64% in the fourth quarter of fiscal 2014, reflecting lower margins earned on the HOF revenues and lower average service fees for the authentication and grading of coins in the quarter. The gross profit margins for both fiscal years 2015 and 2014 were consistent at 63%.
- Operating income in this year’s fourth quarter declined to $2.8 million from $3.8 million in last year’s fourth quarter, reflecting the lower service revenues and related gross profit margin, partially offset by a $0.4 million reduction in operating expenses.
Also Thursday, the company announced the launch of Collectors.com, a site with aggregated collectibles listings for rare coins, paper money, trading cards, autographs and stamps. The site plans on expanding to dozens of other popular collectibles categories with future rollouts.
“Simply stated, the goal of Collectors.com is to list every collectible available anywhere in the world,” said CU’s Don Willis.
As of its launch Thursday, Collectors.com was gathering information about collectibles for sale from more than 542 websites involving a total of 53,684 sellers. The sellers and sites combined for a total of 9.2 million collectibles with an aggregate value of more than $1 billion.