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October 08, 2009

IRVINE, Calif.--(BUSINESS WIRE)--Spectrum Group International, Inc. (SPGZ.PK) today announced financial results for its fiscal year ended June 30, 2009.

For the 2009 fiscal year, the Company's revenues were approximately $4.3 billion, comprising $4.1 billion from its Trading segment and $166.4 million from its Collectibles segment. For the 2008 fiscal year, the Company's revenues were approximately $2.9 billion, comprising $2.7 billion from its Trading segment and $176.0 million from its Collectibles segment. Net income for fiscal year 2009 was $7.1 million, or $0.23 per share, and pre-tax income was $14.3 million, compared with a net loss for fiscal year 2008 of $(14.6) million, or $(0.52) per share, and pre-tax loss of $(12.7) million.

Greg Roberts, President and Chief Executive Officer, commented, "Our Trading operations performed exceptionally well in fiscal 2009, achieving $25.6 million in operating income, as compared to $5.9 million in fiscal 2008. We experienced an increase in revenues in our Trading segment of $1.4 billion, or 53.9%, to $4.1 billion in 2009 from $2.7 billion in 2008. This increase was the result of a number of factors, including higher precious metal prices, precious metals market volatility and increased demand for precious metal products worldwide."

Mr. Roberts continued, "Our Collectibles segment revenues decreased by $9.5 million, or 5.4%, to $166.4 million in fiscal 2009 from $176.0 million in fiscal 2008. This decrease in revenues is primarily attributable to reduced revenues in our North American Philatelic and Arms, Armor and Historical Memorabilia operations, which were affected by the weak economic conditions in fiscal 2009, as well as by management's decision to liquidate a large portion of our North American Philatelic inventory as part of our relocation and centralization efforts. Both divisions have now been relocated to our headquarters in Irvine, California, and are operating under centralized management. Overall, the Collectibles segment experienced an operating loss of $7.6 million in fiscal 2009, as compared to an operating profit of $5.2 million in fiscal 2008."

Mr. Roberts added, "The Company's adjusted pre-tax income (a non-GAAP financial measure) for fiscal 2009 was $17.6 million, as compared to $4.0 million in fiscal 2008."

Executive Chairman Antonio Arenas commented, "We are pleased with the results of our Trading operations in fiscal 2009 and are continuing to work on improving the profitability of our Collectibles operations."

See Appendix B for an explanation of the non-GAAP financial measures used in this release.

More information regarding the Company's financial results for fiscal 2009 is set forth in the Company's Report on Form 10-K, as filed with the Securities and Exchange Commission.

About Spectrum Group International, Inc.

Spectrum Group is a consolidated global collectibles network. The Company is a leading auctioneer of stamps, coins, rare and fine vintage wine, and arms, armor and militaria, targeting both collectors and dealers. Spectrum is also a merchant/dealer of certain collectibles and trader of precious metals. The Company's collectibles offerings span the modest to ultra high-end price spectrum. Spectrum conducts its operations in two business segments: collectibles and trading.

Spectrum Group's collectibles companies focused on philately are auction houses H.R. Harmer of Irvine, California, Corinphila Auktionen of Zurich, Switzerland, Heinrich Köhler Auktionshaus of Wiesbaden, Germany, and John Bull Stamp Auctions, Ltd of Hong Kong. Spectrum Group's collectibles companies in the numismatics field include Bowers and Merena Auctions (rare coin and currency auction house), Ponterio & Associates (world and ancient coins and currency auction house), Teletrade (online coin auctions) and Spectrum Numismatics International (wholesale rare coin dealer), all based in Irvine, California. Spectrum Wine Auctions is engaged in the sale by auction of rare and fine vintage wine. Spectrum Group also owns Greg Martin Auctions, which conducts auction sales of antique arms, armor and militaria.

The trading activities of Spectrum 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. A-Mark's subsidiary Collateral Finance Corporation, which is the Official Numismatic Lender of the American Numismatic Association, provides financing on a wide array of bullion and numismatic products.

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 could cause actual results to differ are identified in our public filings with the Securities and Exchange Commission (SEC), and include the fact that we have disclosed that you should not rely upon our previously published financial statements and the fact that we have not filed all of our reports required by the Securities Exchange Act of 1934. More information about factors that could affect our business and financial results included in our public filings with the SEC, which are available on the SEC's website located at www.sec.gov.

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. We undertake no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Appendix A is attached.

Contact:

Spectrum Group International, Inc.
Thor Gjerdrum
Chief Financial Officer
thor@amark.com
310-587-1414