Downsizing?

Comments

• 291fifth Posts: 24,709 ✭✭✭✭✭

  September 19, 2003 7:31AM

  Interesting. I always wondered how they could afford to produce those elaborate catalogs and still make money. Perhaps they couldn't.
  

  All glory is fleeting.

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• Mark Posts: 3,583 ✭✭✭✭✭

  September 19, 2003 7:55AM

  Here is CU's announcement of the sale:
  
  Collectors Universe, Inc. (CLCT), the leading provider of value-added grading and authentication services and auction services to dealers and collectors of high-end collectibles, today announced that it has sold its currency auction business, operated by its wholly owned subsidiary, Lyn Knight Currency Auctions, Inc., to Collectible Properties, Inc., a private company owned by Lyn F. Knight who, until the sale, had served as President of that subsidiary and had managed that business for Collectors Universe. During the nine months ended March 31, 2003 and the fiscal year ended June 30, 2002, the currency auction business accounted for $2,062,000, or 5%, and $2,585,000, or 6%, respectively, of Collectors Universe's net sales in those periods.
  
  In that transaction, Collectors Universe sold all of the assets of that business other than approximately $2,200,000 of collectible currencies and approximately $2,500,000 of accounts receivable, which Collectors Universe retained and plans to liquidate through customary channels. Collectors Universe will receive a purchase price for the assets sold to Collectible Properties based on its future sales revenues. In addition, Collectible Properties has assumed certain outstanding contractual obligations of the currency business. Collectors Universe does not expect to incur a loss on the sale.
  
  "The decision to sell the currency auction business was based on an assessment of the expected future growth and prospects of that business, the costs of continuing to operate that business, particularly in light of the lack of opportunities to realize increases in economies of scale, and the resources that would be needed to achieve the level of growth we deemed acceptable for that business," stated Michael Haynes, Chief Executive Officer of Collectors. "We wish Lyn Knight much future success with the business and appreciate his hard work and efforts during his tenure with Collectors Universe."
  
  
  Mark
  

  Mark
  
  
  

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• Bear Posts: 18,953 ✭✭✭

  September 19, 2003 9:46AM

  Sounds like a proper move to be followed, I expect ,by other sales to
  
  get PCGS back on a sound income and cash flow basis.
  
  The name of the game in town is COINS.

  There once was a place called
  Camelot

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