Collectors Universe acquires Long Beach, Santa Clara Expos

Halfsense · July 11, 2006 10:27PM

The news release below was issued this morning, Wednesday, July 12, by Collectors Universe, Inc. There is also an Investor Relations announcement at:

Collectors Universe, Inc. Investor Relations news release

-donn-
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For immediate release
July 12, 2006

Collectors Universe Acquires Long Beach & Santa Clara Expos

(Newport Beach, Calif.) – Publicly-held Collectors Universe, Inc. (NASDAQ: CLCT), Newport Beach, California, has acquired Expos Unlimited L.L.C., Santa Barbara, California, owners and managers of the popular Long Beach and Santa Clara Coin, Stamp & Collectibles Expos. Expos General Chairman, Ronald J. Gillio, and his Santa Barbara-based tradeshow team will continue to manage the Northern and Southern California collectibles shows for at least five years.

There are three annual Long Beach events and two annual Santa Clara shows that each attracts thousands of collectors and dealers.

Collectors Universe is the parent company of Professional Coin Grading Service (PCGS) and other corporate divisions that certify bank notes, stamps, sports-related items, autographs and diamonds.

“Our strategic acquisition of Expos underscores our mission to enable and facilitate transactions in our targeted collectibles markets. The Long Beach Expo is one of the most important shows in the coin business, and this acquisition secures this venue for the future,” said David Hall, President of Collectors Universe.

“The Long Beach show is an institution in the coin market. I went to my first coin show in 1966, and it was the Long Beach show! With this acquisition, we help secure this important coin market venue for future collectors and dealers,” Hall explained.

“The Long Beach Expo has been one of the most important collectibles shows in the world for over 40 years, and it is the only private, for-profit large convention of its kind. By acquiring Expos Unlimited, we believe we can both build on the success of this show in the coin business and also expand and add other collectibles categories, such as stamps and sports.”

Collectors Universe paid $2.4 million in cash at closing for Expos Unlimited. The total consideration for Expos also includes certain contingent payments up to an aggregate of $750,000 which depend on the financial performance of Expos over the next five years.

“I’m excited for Expos to become a Collectors Universe company,” said Gillio.

“I’ve known CEO Michael Haynes and Collectors Universe co-founders, David Hall and Van Simmons, for many years. PCGS’s participation at the shows as a table holder, numismatic consultant and on-site grader, has significantly contributed to the success of our shows. PCGS was the first corporate sponsor of the Long Beach show in 1996, and the list of sponsors has grown to include such outstanding companies as eBay,” said Gillio.

“By teaming up with Collectors Universe, we foresee additional opportunities to make the Long Beach and Santa Clara Expos even more vital to the collecting interests of our core coin and stamp enthusiasts and dealers. In addition, we plan to explore the possibilities for leveraging Collectors’ deep relationships and expertise in other high-value asset classes, such as autographs and sports memorabilia, to create new and exciting exhibition opportunities for our venues.”

Heritage Auction Galleries, Dallas, Texas, is the official numismatic auctioneer for the Long Beach Expos, and Superior Galleries, Beverly Hills, California, is the official numismatic auctioneer for the Santa Clara Expo.

The next Long Beach Coin, Stamp & Collectibles Expo will be held September 14 – 16, 2006 in the Long Beach, California Convention Center. The next Santa Clara Expo will be conducted November 16 – 19 in the Santa Clara, California Convention Center.

For additional information, contact the Expo office, 8 West Figueroa St., Santa Barbara, CA 93101. Phone: (805) 962-9939. Online at www.LongBeachShow.com and www.SantaClaraExpo.com.

Collectors Universe, Inc. is a leading provider of value added services to the high-value collectibles and diamond markets. The company authenticates and grades collectible coins, sports cards, autographs, stamps, currency and diamonds. The company also compiles and publishes authoritative information about United States and world coins, collectible sports cards and sports memorabilia, collectible stamps and diamonds. The information is accessible to collectors and dealers at the company’s web site, www.collectors.com, and is also published in print.

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cointagious · July 11, 2006 10:33PM

<< ...and it is the only private, for-profit large convention of its kind. >>

I guess Baltimore is off of their radar.

kranky · July 11, 2006 11:20PM

Any thoughts what the benefit is to CU to run these shows? I read what the press release said but it's vague.

tmot99 · July 11, 2006 11:40PM

Very interesting. I wonder how that will change the market. Will they allow their competitors into the show? Will NGC, ANACS, ICG, SEGS, and others be allowed to have booths?

robertpr · July 11, 2006 11:42PM

<< Any thoughts what the benefit is to CU to run these shows? I read what the press release said but it's vague. >>

It's a profitable show, and they will get more exposure. Basically, $$$

Michigan · July 11, 2006 11:49PM

<< Very interesting. I wonder how that will change the market. Will they allow their competitors into the show? Will NGC, ANACS, ICG, SEGS, and others be allowed to have booths? >>

I would guess yes. It would be bad PR to just kick them out because they were competitors.

F&M (Krause) allows Coin World to have a booth at the shows that they run although I do remember one
time when Coin World was stuck way in the back of the convention hall and not easily visable.
Coincidence?

IndianHeadMan · July 11, 2006 11:52PM

kind of stinky.

oreville · July 12, 2006 2:57AM

Interesting. Long Beach shows have been hurting a bit the last couple of years while the Santa Clara show has been on the ascent.

Being that both shows were in PCGS's backyard it did make some sense to acquire these shows first.

I wonder if more shows will be acquired and these acquisitions be made a part of a separate division of CLCT rather than PCGS being directly involved?

At the very least, I see no conflict of interest in this new acquisition with PCGS.

oreville · July 12, 2006 2:59AM

A better question:

Does this mean that Collectors Universe members will get complimentary passes to these shows?

PhillyJoe · July 12, 2006 3:15AM

Sounds like a win-win; may mean more frequent shows or they may split the shows up and hold seperate coin, stamp, sports and collectible shows. If they have been charging people to get in, that might change also.

Joe

tmot99 · July 12, 2006 3:42AM

<< A better question:

Does this mean that Collectors Universe members will get complimentary passes to these shows? >>

That's good. This belongs in the thread about coin jokes.

MrEureka · July 12, 2006 4:20AM

So much for CU focusing on their core competency.

WTCG · July 12, 2006 4:32AM

It has been known that Expos Unlimited had been wanting to sell the Long Beach and Santa Clara shows for a while now.

Perhaps this new ownership will reduce the number of disgruntled bourse table holders who had been vocally complaining about the policies of the previous owners. Attendance at both Long Beach and Santa Clara Expos has been on a decline for the last few years, and perhaps a new perspective will boost attendance and relevance for those two shows.

Michigan · July 12, 2006 5:03AM

Could the ANA conventions be sold to a private operator like CU?

Would there be any advantage to the ANA to do this? Could it still be called an ANA convention
if run by CU?

I'm just throwing this out there as a "what if" that is all.

Michigan · July 12, 2006 5:07AM

<< It has been known that Expos Unlimited had been wanting to sell the Long Beach and Santa Clara shows for a while now.

Perhaps this new ownership will reduce the number of disgruntled bourse table holders who had been vocally complaining about the policies of the previous owners. Attendance at both Long Beach and Santa Clara Expos has been on a decline for the last few years, and perhaps a new perspective will boost attendance and relevance for those two shows. >>

CU should have an open forum at the ANA convention where dealers and collectors can give their input
into how the Long Beach and Santa Clara shows can be improved. It would be to the mutual benefit of both CU and collectors/dealers to improve the show in various ways if needed.

WTCG · July 12, 2006 5:10AM

<< Could the ANA conventions be sold to a private operator like CU?

Would there be any advantage to the ANA to do this? Could it still be called an ANA convention
if run by CU?

I'm just throwing this out there as a "what if" that is all. >>

If operations can be streamlined and changes result in better attendance numbers and happier dealers, then outsourcing a convention such as the ANA's could be beneficial.

Elcontador · July 12, 2006 5:15AM

I think this is good news. I remember Long Beach shows fifteen years ago where there was no vacant space in the hall. I've been seeing more empty booths in the last few years, as well as people selling Hawaiian shirts, and pornographic flapper post cards (from the 1920s).

tmot99 · July 12, 2006 5:24AM

<< 

<< It has been known that Expos Unlimited had been wanting to sell the Long Beach and Santa Clara shows for a while now.

Perhaps this new ownership will reduce the number of disgruntled bourse table holders who had been vocally complaining about the policies of the previous owners. Attendance at both Long Beach and Santa Clara Expos has been on a decline for the last few years, and perhaps a new perspective will boost attendance and relevance for those two shows. >>

CU should have an open forum at the ANA convention where dealers and collectors can give their input
into how the Long Beach and Santa Clara shows can be improved. It would be to the mutual benefit of both CU and collectors/dealers to improve the show in various ways if needed. >>

Nah, they know it all.

291fifth · July 12, 2006 5:40AM

The real question may be, "Can anyone really make a show work in California?" The money is there but so are the state regulations/taxes. It will be interesting to see what develops.

Tarmac · July 12, 2006 5:40AM

I've been seeing more empty booths in the last few years, as well as people selling Hawaiian shirts, and pornographic flapper post cards (from the 1920s).

Or how about the guy a few years back selling 8" beetles and kockroaches [with a "c" but CU won't allow that word] in little wooden boxes? One guy from Superior actually bought 2 them as a "gift"!!

CarlWohlforth · July 12, 2006 5:43AM

Interesting. I'll attend both locations so see if I notice any changes. They might not change much at first -- it looks like the same managment will continue.

I thought there were three SC shows? The press release only mentioned 2...

oreville · July 12, 2006 5:45AM

<< So much for CU focusing on their core competency. >>

I am not sure I agree with this comment. A separate division should be set up to manage this business and besides there is a 5 year agreement for Gillion to continue to manage these shows. This lengthy transtition period might be a good thing as this gives CLCT plenty to time to learn the business of running coin shows!

tmot99: Hey, I was serious!!!!!!!!!!!!!! Free passes for all would perk up the attendance on the non dealer days!!!

tmot99 · July 12, 2006 5:55AM

<< tmot99: Hey, I was serious!!!!!!!!!!!!!! Free passes for all would perk up the attendance on the non dealer days!!! >>

I didn't say it was a bad idea. I just don't think it would ever happen.

rgl1345 · July 12, 2006 6:02AM

<< Very interesting. I wonder how that will change the market. Will they allow their competitors into the show? Will NGC, ANACS, ICG, SEGS, and others be allowed to have booths? >>

There is really other grading companies????

WTCG · July 12, 2006 7:31AM

<< Interesting. I'll attend both locations so see if I notice any changes. They might not change much at first -- it looks like the same managment will continue.

I thought there were three SC shows? The press release only mentioned 2... >>

The third show last year was added solely due to the ANA being held in San Francisco.

MrEureka · July 12, 2006 8:21AM

<< So much for CU focusing on their core competency. >>

I am not sure I agree with this comment.

Although this may surprise you, I actually believe that grading coins is CU's core competency. And remember, it's not that long ago that CU shed many divisions so they could focus on the grading biz. Funny how a hot market and a big pile of cash changes one's thinking.

ScarsdaleCoin · July 12, 2006 8:36AM

there was or I should say is a large Antique show that is held in AC....you may have seen ads for it in the coin newspapers...anyway a large publisher bought the show from the promoter and it has been going downhill since....not blaming the new owner...I think that ebay and computers play a part...but promoting a coin show is a major undertaking that takes more than bucks...you need the know how to do it.....

morgannut2 · July 12, 2006 9:22AM

Good point on the "Atlantique" show going downhill. PCGS theoretically could be be able to

reverse the downhill trend of Long Beach. They could offer free admission to CU members/registry owners

have promotions/exhibits. To get dealers back, a limited 20 coin discount walk through with one day guarantee

might entice a lot more more dealers to set up. But they may not be good promoters also, so who knows.

Michigan · July 12, 2006 9:47AM

<< there was or I should say is a large Antique show that is held in AC....you may have seen ads for it in the coin newspapers...anyway a large publisher bought the show from the promoter and it has been going downhill since....not blaming the new owner...I think that ebay and computers play a part...but promoting a coin show is a major undertaking that takes more than bucks...you need the know how to do it..... >>

The "Atlantique" show is owned by F&M Publications (Krause) who publishes Numismatic News etc.

I'm sujrprised that F&M doesn't know what they are doing with the show, sounds like they need some professional
management for it. AFAIK they do a good job with the coin shows they own.

BlindedByEgo · July 12, 2006 9:49AM

So do NGC, ICG and ANACS go to the nosebleed section?

STEWARTBLAYNUMIS · July 12, 2006 10:05AM

Collectors Universe has to make up for their lost revenue because of their inability or their lack of desire to grade "Red Copper".

Stewart

oreville · July 15, 2006 1:17PM

I am now convinced that CLCT bought the shows/expos as a defensive strategy move as opposed to expanding thier business "reach."

It had been well known that these shows were for sale.

MrEureka · July 15, 2006 3:15PM

I am now convinced that CLCT bought the shows/expos as a defensive strategy move as opposed to expanding thier business "reach."

Oreville - I don't get it. Please explain.

Trime · July 16, 2006 3:31AM

So the motivation for the purchase is?:

The table fees?
The auction rights?
The promotion of gradings services and fees?
Public relations and enhanced market visibility?
Anti-competition?
All of the above?
Some other reason that is obvious to you but not me?

majorbigtime · July 16, 2006 5:58AM

The LB show has gone downhill since run by Sam Lopresto (sp?), IMO

MrEureka · July 16, 2006 5:59AM

The LB show has gone downhill since run by Sam Lopresto (sp?), IMO

Perhaps, but I'll bet it's more profitable now.

MrEureka · July 12, 2008 3:25AM

So now that a couple of years have passed, what do you think of this deal?

I still don't get it.

tradedollarnut · July 12, 2008 3:27AM

<< Collectors Universe has to make up for their lost revenue because of their inability or their lack of desire to grade "Red Copper".

Stewart >>

IGWT · July 12, 2008 3:44AM

I missed that part of the interview.

hrlaser · July 12, 2008 5:59AM

<< The LB show has gone downhill since run by Sam Lopresto (sp?), IMO

Perhaps, but I'll bet it's more profitable now. >>

yeah.. the parking in the garage under the LBCC went up from $7.00 a day (with no in'n'out priveleges).. to $100.00 an hour.. (and i've been to a dozen Long Beach shows over the years and have never and i mean NEVER seen so much as ONE security guard patrolling that parking garage.. ever.. ) .. and a hot dog and a Coke at the concession stand inside that Zeppelin hanger-sized hall is only $27.50.. other than that, the January show i went to didn't look much different than in previous years.. and they STILL can't or won't carpet the bourse to cut down on the ridiculous noise in there thanks to the concrete floors and a few thousand people talking at once..

the only reason i'm posting this is to see why a two year-old thread was dredged up again.. so after scrolling to the bottom, i felt the burning urge to put in my two cent piece..

Harv

illini420 · July 12, 2008 7:42AM

I just went to the Long Beach show for my first time at the end of May. Parking at the garage at the convention center was only $10. Didn't try any of the food there. I was very disappointed that I paid $4 to get in on Saturday only to quickly learn that about 25% of the dealers didn't even show up for that day and probably another 25% packed up and left by noon. The place was totally dead by 3pm. I understand that some dealers need to catch flights, etc. However, surely I can't be the only one in the L.A. area that actually works a full time job and that can't really take a vacation day for a coin show. Now that I know the Saturday part of the show doesn't really provide full value, I probably won't go back unless I have absolutely no other plans. This should be an event that I would calendar each time and look forward to, but it's definitely not...

MrEureka · February 2, 2009 11:51AM

ttt

MrEureka · October 11, 2009 12:58PM

I am now convinced that CLCT bought the shows/expos as a defensive strategy move as opposed to expanding thier business "reach."

Oreville - I don't get it. Please explain.

I'm still waiting...

oreville · October 11, 2009 4:06PM

MrEureka:

When I stated:

<< I am now convinced that CLCT bought the shows/expos as a defensive strategy move as opposed to expanding thier business "reach." >>

I was merely stating that PCGS probably was trying to defensively protect their "home turf" on the West Coast and giving them the ability to maintain current their bourse tables in the most prominent location vis a vis the other grading services.

When I mentioned defensive, I was trying to be subtle in that by buying these shows they were preventing other entities from buying the same shows possibly impairing PCGS bourse table locations, etc.

I made the comment that the strategy made SOME sense, not TOTAL sense.

Collectors Universe acquires Long Beach, Santa Clara Expos

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