COLLECTORS UNIVERSE INC - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarter ended December 31, 2004

	OR

q	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

	For the transition period from _______ to _____
Commission file number 0-27887

COLLECTORS UNIVERSE, INC. (Exact name of Registrant as specified in its charter)

Delaware	33-0846191
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
Incorporation or organization)

1921 E. Alton Avenue, Santa Ana, California 92705
(address of principal executive offices and zip code)


Registrant's telephone number, including area code: (949) 567-1234

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ü No ___

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ___ No ü .

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

	Class	Outstanding at January 26, 2005
	Common Stock $.001 Par Value	6,267,321

COLLECTORS UNIVERSE, INC.

QUARTERLY REPORT

ON FORM 10-Q

FOR THE QUARTER ENDED DECEMBER 31, 2004

TABLE OF CONTENTS

PART I	Financial Information		Page
	Item 1.	Financial Statements:
		Condensed Consolidated Balance Sheets as of December 31, 2004 and June 30, 2004 (unaudited)	1
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended December 31, 2004 and 2003 (unaudited)	2
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2004 and 2003 (unaudited)	3
		Notes to Condensed Consolidated Financial Statements (unaudited)	4

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	11
		Forward Looking Statements	11
		Our Business	11
		Critical Accounting Policies and Estimates	12
		Factors That Can Affect Our Financial Position and Operating Results	14
		Results of Operations	15
		Liquidity and Capital Resources	18
		Risks and Uncertainties That Could Affect Our Future Financial Performance	19

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20

	Item 4.	Controls and Procedures	21

PART II	Other Information
	Item 1	Legal Proceedings	22

	Item 4	Submission on Matters to a Vote of Security Holders	22

	Item 6.	Exhibits	23

SIGNATURES			S-1

INDEX TO EXHIBITS			E-1

EXHIBITS
Exhibit 10.99		2005 Management Bonus Plan

Exhibit 31.1		Certifications of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 31.2		Certifications of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1		Chief Executive Officer Certification of Periodic Report Under Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit 32.2		Chief Financial Officer Certification of Periodic Report Under Section 906 of the Sarbanes-Oxley Act of 2002

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

as of December 31, 2004 and June 30, 2004

(in thousands, except per share data)

(unaudited)

	December 31,			June 30,
	2004			2004
ASSETS
Current assets:
Cash and cash equivalents	$	21,739		$	21,454
Short-term investments		4,125			-
Accounts receivable, net of allowance for doubtful accounts of $35 (December) and $30 (June)		803			790
Note receivable		1,696			-
Inventories, net		385			452
Prepaid expenses and other current assets		1,016			781
Refundable income taxes		-			13
Deferred income taxes		1,174			1,174
Receivables from sale of net assets of discontinued operations		542			1,611
Current assets of discontinued operations held for sale		586			1,267
Total current assets		32,066			27,542
Property and equipment, net		904			1,045
Deferred income taxes		4,034			5,205
Other assets		182			165
Non-current assets of discontinued operations held for sale		103			117
	$	37,289		$	34,074
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	412		$	455
Accrued liabilities		2,180			1,351
Accrued compensation and benefits		775			936
Deferred revenue		1,358			1,225
Current liabilities of discontinued operations held for sale		64			276
Total current liabilities		4,789			4,243
Deferred rent and other long-term liabilities		514			465
Commitment and contingencies
Stockholders' equity:
Preferred stock, $.001 par value; 5,000 shares authorized; no shares issued or outstanding		-			-
Common stock, $.001 par value; 45,000 shares authorized; issued 6,388 at December 31, 2004 and 6,338 at June 30, 2004		6			6
Additional paid-in capital		42,672			42,215
Accumulated deficit		(9,671	)		(11,834	)
Treasury stock, at cost (125 shares)		(1,021	)		(1,021	)
Total stockholders' equity		31,986			29,366
	$	37,289		$	34,074

See accompanying notes to condensed consolidated financial statements.

COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three Months Ended				Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2004		2003		2004		2003
Net revenues	$	7,982	$	5,753	$	16,177	$	11,765
Cost of revenues		2,998		2,349		5,824		4,898
Gross profit		4,984		3,404		10,353		6,867
Selling and marketing expenses		748		690		1,705		1,528
General and administrative expenses		2,292		2,235		4,579		4,163
Settlement of lawsuit		500		-		500		-
Total operating expenses		3,540		2,925		6,784		5,691
Operating income		1,444		479		3,569		1,176<