NEW YORK, March 16 /PRNewswire/ --
Escala Group (Nasdaq: ESCL) today announced that auctions held in January and February of the fiscal 2006 third quarter continue to demonstrate a strong market in stamps and coins. At its four-day auction in January, Heinrich Koehler Wiesbaden achieved aggregate sales of US$2.65 million, exceeding its pre-sale estimate of US$1.79 million by 48%. Also in stamps, John Bull, the Company's Hong Kong-based auction house, conducted an auction in February that generated aggregate sales of US$1.25 million on pre-sale estimates of US$1 million, a 25% increase. Auctentia Subastas in Madrid conducted a smaller auction in February of stamps from Spain and its former colonies that grossed US$220,000 in aggregate sales in line with expectations.
The high-end coin auction house Bowers and Merena in the Company's numismatic division realized aggregate sales of US$2.1 million at its Beverly Hills Rarities Sale on February 4. While Bowers and Merena does not publish pre-sale estimates, the auction house recorded strong sales, including US$71,300 for a 1917-S Reverse Mintmark Walking Liberty Half Dollar, a 123% increase over an independent estimated value of US$32,000 in the Certified Coin Dealer Newsletter dated February 3, 2006; US$35,650 for a 1927-S Walking Liberty Half Dollar, a 138% increase over an independent estimated value of US$15,000 in the Certified Coin Dealer Newsletter dated February 3, 2006; US$77,050 for a 1799 Draped Bust Silver Dollar, a 36% increase over an independent estimated value of US$56,500 in The Coin Dealer Newsletter Quarterly II dated November 11, 2005; and US$13,225 for an 1894-O Morgan Silver Dollar, or 66% above an independent estimated value of US$7,950 in The Coin Dealer Newsletter Quarterly II dated November 11, 2005.
Teletrade, Escala Group's Internet auction company, sold a 1931 US$20 Saint Gaudens for US$88,480, a Teletrade record for a gold coin transaction. Teletrade also set a market record of US$16,240 for a 1971-S US$1 Eisenhower PCGS Proof. In January 2006, Teletrade experienced a 20% growth in first-time bidders to 177, compared with 148 for January 2005, and February 2006 saw a 30% jump in first-time bidders to 184 from 141 in February 2005.
Commenting on these auction results, Jose Miguel Herrero, chief executive officer of Escala Group, stated: "In January and February, the Company continued to build on the momentum established in auctions during the first half of fiscal 2006. From July 1, 2005, through December 31, aggregate sales grew 27.5% in North America and Asia from US$26.7 million to US$34.0 million compared with the same period in 2004; 19% in Europe from US$32.6 million to US$41.1 million; and a very impressive 60% in Internet and catalogue auctions from US$8.4 million to US$13.5 million. Collectively, these figures demonstrate the strength of the current market which contributed to our 33% overall growth in aggregate sales during the first half of fiscal 2006 compared with the same period in fiscal 2005.
"The strong increase in aggregate sales in North America and Asia reflects our focus on building organic growth as well as acquisition growth from Greg Martin Auctions in San Francisco," Mr. Herrero continued. "The increases in Europe and in Internet and catalogue auctions are the result of robust organic growth. In particular, Teletrade's growth comes from new collectors entering the market, a higher proportion of fresh material offered at auction, and the vibrancy in the coin market related to rising gold prices."
For the remainder of the current quarter, Escala Group has an active line-up of auctions in stamps and coins. In particular, Greg Manning Auctions has its "Collections of the World" scheduled on March 18; and H.R. Harmer, Inc. will have three auctions: "The Don Gaspar Roca Postal History Collection" on March 21, "The Georgetown Collection" on March 22, and "The United States & Worldwide Stamps and Postal History" on March 29 and 30. Within the coin division, Bowers and Merena is currently conducting several auctions as part of the March 2006 Baltimore Coin and Currency Convention.
About Escala Group, Inc.
Escala Group is a global network of leading companies in the collectibles market with operations in North America, Europe and Asia as well as on the Internet. The company operates through a number of subsidiaries that specialize in various sectors of the collectibles markets, and is comprised of three business areas: auctions, merchant/dealer operations and trading.
Escala Group's North American auction operations include Greg Manning Auctions division, Ivy & Manning Philatelic Auctions, Greg Manning Galleries, Greg Martin Auctions, Teletrade, Nutmeg Stamp Sales, Superior Sports, Bowers and Merena Auctions, North American Certified Trading, and H.R. Harmer. In Europe, the leading auction houses affiliated with the network are Auctentia Subastas (Afinsa Auctions) of Madrid, Spain; Corinphila Auktionen of Zurich, Switzerland; and the Koehler group of auction companies of Berlin and Wiesbaden, Germany. In Asia, Escala Group's auction operations are conducted through John Bull Stamp Auctions, Ltd, the oldest philatelic auction house in Hong Kong.
Merchant/dealer activities are conducted through Greg Manning Auctions and Central de Compras Coleccionables, S.L. of Madrid, which act as exclusive suppliers of collectibles -- primarily stamps and coins -- on a worldwide basis to Afinsa Bienes Tangibles, S.A. of Madrid, Spain, and through Spectrum Numismatics International, one of the largest wholesalers of rare coins in the U.S. Afinsa is Escala Group's majority shareholder.
The trading activities of Escala Group are conducted through A-Mark Precious Metals, one of the largest private sellers of bullion coins and bullion gold, silver and platinum to the wholesale marketplace.
SAFE HARBOR STATEMENT
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Factors that may cause such differences include changes in market conditions, changes in economic environment, competitive factors and the other factors discussed in the "forward-looking information" or "risk factors" sections included in Escala Group's filings with the Securities and Exchange Commission, including Escala Group's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, prospectuses and other documents that Escala Group has filed with the Commission. In particular, any statement related to Escala Group's expected revenues or earnings or Escala Group's being well positioned for future profitability and growth are forward-looking statements.
The words "should," "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan" and similar expressions and variations thereof identify certain of such forward- looking statements, which speak only as of the dates on which they were made. Additionally, any statements related to future improved performance and estimates of revenues and earnings per share are forward-looking statements. Escala Group undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.
Perry Hall, Escala Group, +1-212-421-9400, phall@escalgroup.com
