Collectors Universe (CLCT) has reported 18.13 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $1.58 million, or $0.18 a share in the quarter, compared with $1.93 million, or $0.23 a share for the same period last year.     

Revenue during the quarter grew 7.73 percent to $15.75 million from $14.62 million in the previous year period. Gross margin for the quarter contracted 377 basis points over the previous year period to 61.02 percent. Total expenses were 82.39 percent of quarterly revenues, up from 78.14 percent for the same period last year. That has resulted in a contraction of 424 basis points in operating margin to 17.61 percent.

Operating income for the quarter was $2.77 million, compared with $3.20 million in the previous year period.

Robert Deuster, chief executive officer, stated, "The first quarter of FY 2017 started with 8% top line growth over last year, with solid gains in both our coin and sports card businesses. The real strength was in our international operations where revenues increased by 64% to 9% of our total revenues. Consistent with our growth strategy we continued to invest in our China operations, in order to handle the expected increased demand from a recently awarded Guojin contract. This action did moderate our operating income performance somewhat this quarter, but was necessary to prepare us for what we believe will be a stronger overall FY2017.

The company has spent $0.57 million cash to meet investing activities during the quarter as against cash outgo of $0.41 million in the last year period.

The company has spent $2.98 million cash to carry out financing activities during the quarter as against cash outgo of $3.05 million in the last year period.

Cash and cash equivalents stood at $10.34 million as on Sep. 30, 2016, down 29.46 percent or $4.32 million from $14.66 million on Sep. 30, 2015.

Working capital drops significantly
Collectors Universe has witnessed a decline in the working capital over the last year. It stood at $4.74 million as at Sep. 30, 2016, down 52.93 percent or $5.33 million from $10.06 million on Sep. 30, 2015. Current ratio was at 1.38 as on Sep. 30, 2016, down from 1.87 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 2 days for the quarter from 9 days for the last year period. Days sales outstanding went up to 17 days for the quarter compared with 16 days for the same period last year.

Days inventory outstanding has decreased to 16 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding went down to 35 days for the quarter from 37 for the same period last year.