Collectors Universe Reports Record Financial Results for Fiscal 2005 Tuesday September 13, 3:54 pm ET Net Revenues From Continuing Operations Up 27% to New Record; Earnings Up 178% to New Record
I would think a lot of that profit is from Collector's Club fees that we are all now forced to pay in order to have PSA grade our cards.
The viability of PSA is good for everyone involved, without question. Perhaps some extra grades can now be included with each renewal, now that CU is back to profitability?
If you read the release, it looks like most of the profits came from the coin division. The higher gold and silver prices seems to be driving demand in that market. Then the authentication business is second.
Face it, we card collectors are the red-headed stepchild of the business.
"...Collectors Universe Reports Record Financial Results for Fiscal 2005 Tuesday September 13, 3:54 pm ET Net Revenues From Continuing Operations Up 27% to New Record; Earnings Up 178% to New Record..."
Well glad to see revenues are up! I guess they didn't make big profits in the "insanely high" shipping costs on their PSA storage boxes after all?
You see, they pay the mail room clerk $875,000 per year!
There is one statement in there that really tells it all. It is for this reason that I submit cards only to PSA.
"... our dependence on coin authentication and grading for a significant percentage of our total revenues"
PSA could not exist without the coin grading, as it seems like would not be possible to operate a substantial, perpetual business that relies solely on card grading as it's primary source of revenue based on all the financial reports I've read from CU in the past as well as this one. Years into the future, it seems clear that PSA will be the respected brand, and will continually dominate the market share for vintage card grading. GAI will not be able to sustain much longer. Unless something amazing happens in collectors attitudes, Beckett will be limited to modern cards, as they are now. SGC, even though an individual entity, is still tied to their coin grading, which would be able to bail out the card grading if it ever came to that, but their holders just don't get the same respect as PSA among the majority of collectors.
Comments
The viability of PSA is good for everyone involved, without question. Perhaps some extra grades can now be included with each renewal, now that CU is back to profitability?
Face it, we card collectors are the red-headed stepchild of the business.
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Very true. Maybe they are going to outsource it to India?
Tuesday September 13, 3:54 pm ET
Net Revenues From Continuing Operations Up 27% to New Record; Earnings Up 178% to New Record..."
Well glad to see revenues are up! I guess they didn't make big profits in the "insanely high" shipping costs on their PSA storage boxes after all?
You see, they pay the mail room clerk $875,000 per year!
rbd
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"... our dependence on coin authentication and grading for a significant percentage of our total revenues"
PSA could not exist without the coin grading, as it seems like would not be possible to operate a substantial, perpetual business that relies solely on card grading as it's primary source of revenue based on all the financial reports I've read from CU in the past as well as this one. Years into the future, it seems clear that PSA will be the respected brand, and will continually dominate the market share for vintage card grading. GAI will not be able to sustain much longer. Unless something amazing happens in collectors attitudes, Beckett will be limited to modern cards, as they are now. SGC, even though an individual entity, is still tied to their coin grading, which would be able to bail out the card grading if it ever came to that, but their holders just don't get the same respect as PSA among the majority of collectors.