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 March 31, 2005

	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 April, 22, 2005
	Common Stock $.001 Par Value	8,601,112

COLLECTORS UNIVERSE, INC.

QUARTERLY REPORT

ON FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2005

TABLE OF CONTENTS

PART I	Financial Information		Page
	Item 1.	Financial Statements:
		Condensed Consolidated Balance Sheets as of March 31, 2005 (unaudited) and June 30, 2004	1

		Condensed Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2005 and 2004 (unaudited)	2

		Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2005 and 2004 (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 Information	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	20

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21

	Item 4.	Controls and Procedures	21

PART II	Other Information
	Item 6.	Exhibits	22

SIGNATURES			S-1

INDEX TO EXHIBITS			E-1

EXHIBITS

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

(in thousands, except per share data)

	March 31,			June 30,
	2005 (unaudited)			2004
ASSETS
Current assets:
Cash and cash equivalents	$	63,632		$	21,454
Short-term investments		2,294			-
Accounts receivable, net of allowance for doubtful accounts of $62 (March) and $30 (June)		918			790
Note receivable		242			-
Inventories, net		399			452
Prepaid expenses and other current assets		789			781
Refundable income taxes		-			13
Deferred income taxes		1,174			1,174
Receivables from sale of net assets of discontinued operations		68			1,611
Current assets of discontinued operations held for sale		415			1,267
Total current assets		69,931			27,542
Property and equipment, net		876			1,045
Deferred income taxes		3,256			5,205
Intangible and other assets		275			165
Non-current assets of discontinued operations held for sale		65			117
	$	74,403		$	34,074
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	823		$	455
Accrued liabilities		1,655			1,351
Accrued compensation and benefits		807			936
Deferred revenue		1,248			1,225
Current liabilities of discontinued operations held for sale		54			276
Total current liabilities		4,587			4,243
Deferred rent and other long-term liabilities		537			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 8,601 at March 31, 2005 and 6,338 at June 30, 2004		9			6
Additional paid-in capital		78,493			42,215
Accumulated deficit		(8,202	)		(11,834	)
Treasury stock, at cost (125 shares)		(1,021	)		(1,021	)
Total stockholders' equity		69,279			29,366
	$	74,403		$	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				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2005		2004		2005		2004
Net revenues	$	8,955	$	6,896	$	25,132	$	18,661
Cost of revenues		3,263		2,597		9,087		7,495
Gross profit		5,692		4,299		16,045		11,166
Selling and marketing expenses		876		788		2,581		2,316
General and administrative expenses		2,588		2,135		7,167		6,298
Settlement of lawsuit		-		-		500		-
Total operating expenses		3,464		2,923		10,248		8,614
Operating income		2,228		1,376