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NEWPORT BEACH, Calif.,
Sept. 15, 2011 /PRNewswire/ -- Collectors Universe, Inc. (NASDAQ: CLCT), a leading provider of value-added authentication and grading services to dealers and collectors of high-value collectibles, today announced that it has purchased the assets of Coinflation.com, for cash of
$550,000 and stock of
$200,000 for total consideration of approximately
Coinflation.com is an informational website providing precious metal values and the intrinsic values of individual coins. The website and related domain names has shown strong revenue growth during the past 12 months, due to the rise in precious metals and has attracted over 600,000 monthly unique visitors. The business plan for the acquisition estimates a payback period of less than three years.
While not a large acquisition, strategically, the combination of Coinflation.com with the various Collectors Universe web properties is expected to create numerous opportunities to drive incremental traffic, incremental advertising dollars and add to the Company's position as a service provider of valuable information and content to coin market participants. Additionally,
Alec Nevalainen, the founder of Coinflation.com, has agreed to join the Company as part of the transaction. Alec will bring valuable skills and experience to the Company in the emerging digital environment. The transaction fits well with the Company's stated strategy of protecting its core businesses and extending pragmatically and prudently, with a particular emphasis on information and digital activities.
Separately, the Company announced that it expects revenues in the range of
$11.4 million to $11.6 million and operating income in the range of
$2.25 million to $2.35 million for the first quarter of fiscal 2012, compared to revenues of
$9.8 million and operating income of
$1.83 million for the first quarter of the fiscal 2011.
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value-added services to the high-value collectibles markets. The Company authenticates and grades collectible coins, trading cards, event tickets, autographs, memorabilia and stamps ("collectibles"). The Company also compiles and publishes authoritative information about
United States and world coins, collectible trading cards and sports memorabilia, collectible stamps, and operates its CCE dealer-to-dealer Internet bid-ask market for certified coins and its Expos trade show and conventions business. This information is accessible to collectors and dealers at the Company's website,
http://www.collectors.com and is also published in print.
Cautionary Statements Regarding Forward-Looking Information
This news release contains statements regarding our expectations, beliefs or views about our future financial performance and trends in our business and in our markets, which constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or future or conditional verbs such as "will," "would," "should," "could," or "may."