Collectors Universe, Inc (CLCT) has reported 6.66 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $2.96 million, or $0.35 a share in the quarter, compared with $2.78 million, or $0.32 a share for the same period last year.
Revenue during the quarter grew 7.31 percent to $18.60 million from $17.33 million in the previous year period. Gross margin for the quarter contracted 332 basis points over the previous year period to 60.39 percent. Total expenses were 74.68 percent of quarterly revenues, up from 74.58 percent for the same period last year. That has resulted in a contraction of 10 basis points in operating margin to 25.32 percent.
Operating income for the quarter was $4.71 million, compared with $4.40 million in the previous year period.
Robert Deuster, Chief Executive Officer, stated, “We are very pleased with the performance of our Company this last quarter and the growth in revenue and profit achieved so far this year. The year-to-date growth in our international and modern coin businesses are indicative of our focus on organic growth in segments where brand preference, innovation and presence are important. The momentum in our sports card business reflects the confidence collectors have in graded cards and the rate of card submissions remains very high. Our US businesses during the quarter provided strength to our overall global grading activity, where Asian demand was lower due to seasonal holidays, resulting in another record quarterly performance. Our outlook for 2017 remains very positive.”
Operating cash flow improves significantly
Collectors Universe, Inc has generated cash of $9.40 million from operating activities during the nine month period, up 56.57 percent or $3.40 million, when compared with the last year period. The company has spent $1.59 million cash to meet investing activities during the nine month period as against cash outgo of $1.68 million in the last year period.
The company has spent $8.93 million cash to carry out financing activities during the nine month period as against cash outgo of $8.99 million in the last year period.
Cash and cash equivalents stood at $10.84 million as on Mar. 31, 2017, down 13.87 percent or $1.74 million from $12.58 million on Mar. 31, 2016.
Working capital drops significantly
Collectors Universe, Inc has witnessed a decline in the working capital over the last year. It stood at $4.42 million as at Mar. 31, 2017, down 41.37 percent or $3.12 million from $7.54 million on Mar. 31, 2016. Current ratio was at 1.30 as on Mar. 31, 2017, down from 1.56 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 2 days for the quarter from 10 days for the last year period. Days sales outstanding were almost stable at 14 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 17 days for the quarter compared with 26 days for the previous year period. At the same time, days payable outstanding went down to 30 days for the quarter from 31 for the same period last year.
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