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Collectors Universe, Inc. (CLCT) Significantly Reduces Share Count Through Dutch Auction Tender Offer

Collectors Universe announced the results of its Dutch Auction tender offer that commenced last month. In early June 2009, Collectors Universe announced that it would begin a Dutch auction tender offer and buy from investors up to 1.75 million of its shares at a price between $5.00-5.40 per share.

The company said that 4,691,743 shares were tendered during the offer period, including 3,948,248 shares tendered at a price of $5.00. Collectors Universe will buy back 1,749,828 shares at $5.00 per share for a total cost of $8.75 million. This action will significantly reduce the company’s share count, which stood at 9.158 million shares prior to the tender.

Collectors Universe provides authentication and grading services for collectible items. These items span many different categories of collectibles, including coins, trading cards, stamps, autographs and sports memorabilia. Authentication services certify that the item in question is legitimate, while grading services certify the condition of the item.

Collectors Universe reported revenues of $9.1 million, and income from continuing operations of $0.08 per share in the first quarter of 2009 (ended 3/31/2009). The company recently exited the jewelry grading business, and reports those results as discontinued operations.

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