Gross profit for the three months ended December 31, 2012 increased $1.5 million, or 15.2%, to $11.5 million, or a gross profit margin of 0.7%, from $9.9 million, or a gross profit margin of 0.5% in 2011. Trading segment gross profit decreased by $0.7 million, or 9.6%, to $6.5 million, or a gross profit margin of 0.39% for the three months ended December 31, 2012. The decrease was due primarily to less price volatility and a decrease in volumes. Collectibles segment gross profit increased by $2.2 million, or 80.3%, to $4.9 million from $2.7 million. The increase was due primarily to sales of a higher percentage of higher margin numismatic materials. Gross profit for the six months ended December 31, 2012 decreased $6.3 million to $21.6 million, or a gross profit margin of 0.6%, from $28.0 million, or a gross profit margin of 0.6% in 2011. Trading and Collectibles segments contributed to this decrease, with individual decreases of $4.0 million and $2.3 million, respectively, during this period.

Pre-tax income from continuing operations for the three months ended December 31, 2012 was $0.5 million, as compared with pre-tax loss of $1.1 million for the comparable quarter in the prior fiscal year. Pre-tax loss for the six months ended December 31, 2012 was $0.1 million, compared to pre-tax income of $5.7 million for the six months ended December 31, 2011. Included in operating expenses for the three and six months ended December 31, 2011 was a $2.1 million reserve in connection with the claim against M.F. Global, Inc., of which settlement in the second quarter of fiscal 2013 resulted in a $0.7 million recovery of the reserve, or an increase of $2.8 million in pre-tax income. The increase to pre-tax income in the three-month period is primarily due to this increase as well as the increase in gross profit of $1.5 million described above and the impact of a $1.1 million decrease in general and administrative expenses. The decrease in general and administrative expenses is due to an effort to reduce spending in our Collectibles segment. For the six-month period, the decrease in pre-tax income is due to a $2.2 million decrease in interest income primarily from our Trading segment’s lending business, and the impact of unrealized gain (loss) on foreign currency, which declined by $4.7 million gain to $1.5 million loss.