Collectors Universe (CLCT) has reported 195.45 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $2.92 million, or $0.34 a share in the quarter, compared with $0.99 million, or $0.12 a share for the same period last year.
Revenue during the quarter surged 41.36 percent to $17.86 million from $12.64 million in the previous year period. Gross margin for the quarter expanded 340 basis points over the previous year period to 63.75 percent. Total expenses were 74.75 percent of quarterly revenues, down from 86.63 percent for the same period last year. This has led to an improvement of 1189 basis points in operating margin to 25.25 percent.
Operating income for the quarter was $4.51 million, compared with $1.69 million in the previous year period.
Robert Deuster, chief executive officer, stated, "I am very pleased with the performance of our Company this last quarter and the first half of fiscal 2017. Our results and year to date momentum reflects our customers continued preference for our authentication and grading services and indicates very positive results from our investments in China and our capacity to serve customers in the US, across all our businesses. As I look forward to the second half of our fiscal year, I continue to see a positive market environment due to the recent release of the 2017 coins in the US and in China and due to our expanded capacity to serve customers, as well as maintaining our leadership position in authenticating and grading vintage collectibles.”
Operating cash flow improves significantlyCollectors Universe has generated cash of $5.18 million from operating activities during the first half, up 131.24 percent or $2.94 million, when compared with the last year period. The company has spent $1.09 million cash to meet investing activities during the first six months as against cash outgo of $0.68 million in the last year period.
The company has spent $5.96 million cash to carry out financing activities during the first six months as against cash outgo of $6.02 million in the last year period.
Cash and cash equivalents stood at $10.10 million as on Dec. 31, 2016, down 21.08 percent or $2.70 million from $12.79 million on Dec. 31, 2015.
Working capital drops significantly
Collectors Universe has witnessed a decline in the working capital over the last year. It stood at $4.60 million as at Dec. 31, 2016, down 40.80 percent or $3.17 million from $7.76 million on Dec. 31, 2015. Current ratio was at 1.34 as on Dec. 31, 2016, down from 1.68 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 2 days for the quarter from 13 days for the last year period. Days sales outstanding went up to 18 days for the quarter compared with 17 days for the same period last year.
Days inventory outstanding has decreased to 17 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 37 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
