Tacoma Art Museum’s ‘Ornament as Art’ offers look at jewelry
Allow yourself plenty of time to look at “Ornament as Art.” The exhibition of the art tiffanys jewelry collection of Helen Williams Drutt, which opened at Tacoma Art Museum last month, is near-exhausting, with 307 works ranging over 50 years and three continents. But this show is not just the chance to see one of the biggest art jewelry collections in the world: It’s also a highly-organized visual delight.
On a national tour of which Tacoma is the last stop, “Ornament as Art: Avant-Garde Jewelry from the Helen Williams Drutt Collection” comes more or less direct from the Museum of Fine Arts, Houston. The MFAH, which acquired the collection from renowned jewelry collector Helen Williams Drutt in 2002, even sent along its own installation crew and most of the display cases, and in adapting the show to TAM’s large space Rock Hushka also has kept the original groupings of works, just adding the tangerine entry wall and box bases to highlight dominant colors.
The set-up works admirably. What could easily be an overwhelming multitude of pieces becomes a narrative of art history and jewelry trends. A walk through from left to right takes you from the elaborately stylized curves of the 1960s through the alternative materials and techniques of the ’70s, the exploration of the ’80s and the politicization, personal narrative and minimalism of the last two decades. It’s a graceful sweep, with a pleasing break-up of cases and large wall pieces, and splashes of color from Peter Chang’s famous spiky orange acrylic bracelet to Gijs Bakker’s bloody PVC flower to the case filled with beaten gold.
On the side are interesting explorations such as the effects of art movements on jewelry, and a series of pen-and-pencil studies that show how radically materials determine aesthetic. (Claus Bury’s 1974 silver, gold and copper “Brooch” jumps out of his meticulously-notated drawings like something alive.)
But what’s really engaging about the Drutt show isn’t the organization. It’s that it tackles head-on the most basic question about art Money Clips jewelry: If it’s wearable, is it really art? It’s not just a question of wearable art getting a bad rap, although it does. It’s the tension between detailed observation and staring at someone’s bustline, between a beautiful object and a very human model, between form and actual physical wearability. “Ornament as Art” comes directly to grips with this polarity.
Some of this jewelry is eminently wearable: the confining neck pieces of painted sticks by Lam de Wolf and Marjorie Schick, Tone Vigeland’s sparkling bracelets of beaten nails, or the delicate social jibes of Manfred Bischoff (narcissistic coral skulls and Quixotic headless figures,) or Caroline Broadhead’s diaphanous shroud of white nylon filament.
Others, though, are just too weighty (Sharon Church’s sensually curved, navel-pointing antlers), too precious (the Pijanowskis’ imperious woven gold cord breast-plate) or too visually complex (the narrative collages of metal, photos, hourglasses and coins by Americans like Nancy Worden and Betsy King.) These works have way too much to say to be passed casually by at a party. Highly sculptural, highly formal, they demand the kind of attention that no wearer would ever want, the kind of scrutiny nobody could ever stand up to.
The aesthetic of jewelry as art reaches its logical end-point on the far right wall. Vigeland, moving on from her twisted, beaten silver nails, now creates wall-installations like this one of 420 steel rods, two feet long, drooping gently out from the wall due to the beaten lead bulbs at their tips. It’s a metal waterfall, a breastplate for a giant, completely dwarfing any human viewer. It’s cufflinks jewelry totally transformed into sculpture.
“Ornament as Art” achieves quite a lot of things — it provides a visual history of art jewelry, it puts local artists like Nancy Worden into an international context, it highlights the quality of TAM’s own substantial jewelry collection. But it also grapples with art’s basic dualities of function and form, using 307 stunning works as both argument and answer.
India’s resurgence in jewelry
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Jul. 19–Ever since Asia and Egypt were a major influence in the Art Deco movement in the late 1920′s and 1930′s, India became a source of inspiration for Western tiffanys jewelry. During those years, Cartier and Van Cleef & Arpels used old Indian materials and stones to create unique jewelry pieces. In fact, Pierre Cartier’s first contact with Indian jewelry happened in 1901 when he made a necklace for Queen Alexandra, empress of India and wife of Edward VII, to wear with gowns sent to her by the wife of the viceroy of India. Cartier played a major role in introducing Indian design into the Western jewelry world. Nowadays, thanks to its growing importance as a global power India’s influence has also spread to clothes and design. India has never been so fashionable, and even the super rich are turning to its bespoke products, particularly jewelry.
Undoubtedly, the Mumbai-based Viren Bhagat is the most exclusive Indian jeweler. His superb pieces are sought by connoisseurs all around the world. The Bhagat Jewelry House creates no more than 70 pieces every year, and most of them sell, even before the sketches are complete. Bhagat insists that his clients visit their Mumbai office and secondly he refuses to customize:
“I request my clients not to add a leaf here or a flower there in my designs.”
The Gujarati jeweler whose ancestors hail from Lathi village insists that his cufflinks jewelry is not ethnic. An intricate platinum choker studded with 150 rose-cut diamonds and thousands of small diamonds was inspired by an antique Indian anklet. The choker, like most of the pieces designed by Bhagat, is flexible and lightweight and definitely easier to wear than the anklet.
Bhagat is known for his patience and strong determination, he spent 10 years searching for 24 Burmese cabochon rubies weighing 146 carats. He also bought a unique 17th century Mogul jewel and spend the following three years buying 28 emerald beads that match the center stone in color, quality and shape:
“I love older stones, they have a different subtle charm, more like a whisper than a shout” says the fourth generation artist-jeweler who only works with old Indian gemstones and diamonds. Bhagat’s pieces are mainly sold through auction at Christies. These Mogul-inspired masterpieces of exquisite craftsmanship are works of art collected by international jewelry aficionados.
“You look at it, and you know Viren made it,” says Rahul Kadakia, head of jewelry at Christie’s New York, where a pair of Bhagat earrings composed of diamonds cut to resemble lotus petals came up for sale at the end of 2007. Estimated at $50,000, they sold for $85,000.
Considered by some experts to be the best jeweler in the world, Bhagat is happy with the new attitude to the art of the jewel: “There has been a very clear shift in the way in which people perceive my work. I now attract serious collectors and they buy my jewels as art objects, not as status symbols or pure physical adornment. Many collectors are toying with the idea of starting their own museums of contemporary jewelry. It is music to my ears.”
Mogul jewelry which dates back to the 16th through 18th centuries, it is characterized by enamel and gem set stones such as table or rose-cut diamonds. Women today are rediscovering the cutting of rose and cushion diamonds and traditional Indian shapes like bells and chandeliers have influenced contemporary designers. India has a unique culture of jewelry and its influence on design is even greater than the Romans, the Chinese and ancient Egypt. According to Rahul Kadakia, India’s resurgence particularly in Money Clips jewelry “will be around for a long time to come”.
James Avery Brings New Store, Jewelry to Birmingham
James Avery, a family-owned Tiffany jewellery retailer, announces the mid-August opening of their 52nd store at The Summit in Birmingham, Alabama. Located in the newest phase of The Summit, the new store will feature an extensive selection of predominantly hand-crafted jewelry, offering designs in sterling silver, 14k gold and gemstones.
The Summit Birmingham location will be the company’s first store in Alabama. Chris Avery, chief executive officer, comments: “We are excited to be a part of this great community. The core values and philosophy of our company seem to be a good fit with the Birmingham market, so we are encouraged and look forward to all the new relationships. Our mission as a company is to share life, love and faith through the beauty of design, and we are hopeful that our jewelry will resonate with this new market.”
James Avery offers not only unique bangles jewelry and designs but also a personal experience for each and every customer. James Avery stores are meant to give customers the feeling of being in a comfortable living room, so even the display cases that showcase the jewelry are specially made by James Avery craftspeople. The quality of materials and attention to detail extends well beyond the jewelry itself. Chris Avery explains: “We believe in the total customer experience and that begins with the details. Our hope is that each extra detail that we put into our stores creates a unique experience for each of our customers to share. We want each and every customer to feel welcome and at home in our store.”
With the addition of The Summit store, James Avery will operate a total of 52 stores across Texas, Oklahoma, Colorado, Louisiana, Georgia and now Alabama. Birmingham customers are invited to learn more about James Avery and the new store at The Summit by going online to: www.jamesavery.com/thesummit.
About James Avery – Established in 1954, James Avery is a family-owned jeweler that offers high quality, hand-crafted rings jewelry in sterling silver, gold and gemstones. From a one man endeavor in his mother-in-law’s garage, James Avery has grown into a team of 1,400 designers, craftsmen, sales associates and support staff offering unique designs to customers throughout the nation. James Avery maintains over 1,100 designs in the active product line. Each design is originated by skilled men and women in the James Avery design studio and then finely crafted and produced by skilled artisans predominantly in the Texas Hill Country. James Avery jewelry is available at retail stores and online at www.jamesavery.com.
Man nabbed in 220G jewelry-store heist
Police yesterday announced the arrest of a Strawberry Mansion man charged in connection with Tiffany jewellery a robbery last month that netted about $220,000 worth of watches from an upscale Center City men’s store.
Nathaniel Williams, 19, of Page Street near 31st, was arrested near his home Wednesday night at 31st and Berks streets, police said.
He was charged with robbery, conspiracy and related offenses for allegedly being one of the frank gehry four men who robbed Govberg’s Jewelry Store inside Boyd’s on Chestnut Street near 18th, police said.
The armed robbers entered the store about 2:15 p.m. on June 4, said Lt. Richard Brown, of Central Detectives.
Lt. Frank Vanore, a police spokesman, said that Williams and another man subdued a security guard and several store employees with pepper spray while the other two smashed display cases and swiped high-end watches.
“It was well-executed,” Brown said of the robbery. “From the time they entered the store to the time they left took all of about 30 seconds.”
Cops said the thieves escaped by driving a getaway car through the parking lot on Chestnut to Ranstead Street.
Those who were hit with pepper spray didn’t require hospitalization, and no paloma picasso jewelry one else was injured during the crime, police said.
Store surveillance video helped police track down Williams, Vanore said.
Asked if Williams was helping police to find the other suspects, Vanore said only that “the investigation is ongoing.”
‘Inspired’ Jewelry Website Settles Suit with David Yurman, Van Cleef & Arpels, Cartier, Gucci, and Bulgari; By Sheila Kurtz
Originally filed in 2007 at the U.S. District Court for the Southern District of New York in Manhattan by Tiffany Yurman Studio Inc., the lawsuit against OverStockJeweler.com was expanded to include Cartier, Van Cleef & Arpels, Bulgari, and Gucci. As a result of this lengthy litigation, OverStockJeweler.com, along with its owner, Elena Castaneda, agreed to no longer use the trademark names of David Yurman, Cartier, Van Cleef & Arpels, Bulgari, and Gucci on the website under the terms of the agreement that was revealed last week, as reported by Women’s Wear Daily. According to court filings both parties also agreed to settle the suit after Ms. Castaneda and the website agreed to remove several collection names that included “Albion”, “Alhambra” “Love”, “The Cable Collection,” “The Thoroughbred Collection”, “Silver Ice”, among other names. According to plaintiffs, a confidential and “substantial cash component,” was paid to them by OverStockJeweler.com.
However, OverStockJeweler.com does not appear to have experienced a major setback from the resulting agreement as the website continues to offer thousands of unique designs for sale. A nine-year veteran of the e-commerce industry, OverStockJeweler.com is based in New York City. In addition to the existing disclaimer on its website that states that “we respect the intellectual property rights of third parties, it is OverStockJeweler.com’s policy to suspend the sale of any item claimed to be infringing, provided the third party owner offers reasonable substantiation of such claim”, it has recently issued a published public apology on the its homepage. Paul F. Millus of Snitow Kanfer Holtzer & Millus Attorney for OverStockJeweler.com has noted on behalf bracelets of the company that “the dispute was amicably resolved.”
Nevertheless, it appears that customers are still flocking to the “Inspired,” jewelry website by taking advantage of the huge 50% off sale on all its top quality cufflinks sterling silver cable jewelry from Taxco Mexico – a wonderful bargain in light of the economic climate. Are consumers affected by this settlement, you be the judge?
Authorities also find stolen jewelry at their home
Two local teenagers were charged with dealing Ecstasy, cocaine and marijuana Tiffany jewellery Thursday.
They were also charged with possessing stolen goods believed to be heisted during a home break-in earlier in the week.
In all, roommates Koran R. Smith, who turned 19 one week ago, and 18-year-old Tyler Smith each face five felonies following the Kinston Department of Public Safety’s search warrant execution at their 505 West Washington Avenue residence: possession with intent to sell or distribute 30 Ecstasy pills, crack cocaine, marijuana, maintaining a dwelling for the sale of controlled substances and possession of stolen goods.
“The drug investigation had been going on for a couple of weeks,” Maj. Greg Thompson said, bangles adding neighbors had complained about drugs being sold from the home. “During the search, we located crack cocaine, Ecstasy pills and marijuana. … We were able to identify the stolen jewelry from a break-in that happened two days before.
“It wasn’t a large amount of crack cocaine and marijuana, but it was packaged in such a way that it could be quickly sold.”
Smith and Adams were each taken to Lenoir County Jail, where they tiffany christmas tree were held in lieu of $25,000 bonds.
Justin Schoenberger can be reached at (252) 559-1075 or jschoenberger@freedomenc.com.
Sales offer big discounts on jewelry and more
You know how everyone keeps saying now’s a great time to buy a house? Judging from all the sales going on it’s apparently also a great time to buy jewelry, which may be even better because it’s cheaper, doesn’t involve a 30-year commitment and looks shiny and pretty when you put it on.
OK, so maybe there’s not the return on investment potential there,Tiffany jewellery but the instant gratification of buying something beautiful and cheap might make up for that.
If you’re worried about not having enough extra cash for a jewelry-buying spree, your dollars may get you a lot more than you bargained for at Kingoff’s Jewelers Front Street store, which is selling its entire inventory down to the walls in preparation for its move to Hanover Center in October after 90 years in downtown Wilmington.
The store’s owners are calling it the “sale of the century” because items are marked down to what they call “ridiculously low prices” and “pennies on the dollar,” including giftware. The savings started last week and will continue as moving day draws closer, so the sooner you shop the better selection you’ll find. Kingoff’s is closed on Sunday.
On the Web: www.kingoffs.com
Another shiny sale
Speaking of jewelry, just a couple of blocks from Kingoff’s another big sale is going on, but this one’s not due to the closing of a store but the closing of a season.
JP Jewelry & Accessories, 248-1 N. Front St., is having an “End of Summer Sale” with up to 50 percent off items through September. Stop by to browse the selection and register to win a Tiffany necklace to be given away in an Aug. 31 drawing.
On the Web: www.jpjewelryonline.com
Brides get something back
Getting hitched soon? Both Wilmington Belk locations, Independence Mall and Mayfaire bangles Town Center, are having an In-store Wedding Expo 1-5 p.m. Sunday.
Start or add to your wedding registry with the help of certified bridal consultants while getting information from other local wedding businesses that can help with planning the big day of your dreams. It’s free and open to the public. If you register as a result of the expo, you’ll receive a $25 gift card to be used with a minimum purchase of $75 through Oct. 4.
On the Web: www.belk.com
Supplies savings
The sales tax holiday is over, but you can still get some great back-to-school deals to get the kids ready for the first day and beyond. Walmart has a special bargain collection that includes the following items for $9 each: an elementary school supplies basics bundle, lunch kits, notebooks, a flash drive, a scientific calculator, socks and underwear packs, backpacks, sneakers, eyeglass frames, tops and tees. And Walmart will match the price of any local competitor’s printed ad for an identical product.
On the Web: www.walmart.com
Great buy for going green
Think buying green materials for your home is out of your price range? Before you write off the rings environmentally friendly route, check out Sapona Green Building Center’s Marmoleum click-on flooring sale through Aug. 31. The sustainable and natural floating floor in select colors with easy, glueless installation is discounted to $3.95 per square foot from $5.99. The material is the first floor covering to be certified by the Asthma and Allergy Foundation of America as asthma- and allergy-friendly and comes with a 25-year warranty.
On the Web: www.saponagreen.com
A winning deal
You could be next! Jessica Worriax, Hanover Center’s first Shopping Made Easy Raffle winner, recently arrived at stores with her guests in a chauffeur-driven limousine, where she spent $150 in shopping money she won as part of the contest. The limo, from Above the Rest, came with champagne and goody bags. Hanover Center will choose a winner monthly from those who fill out the online form found at the “Shopping Made Easy” link, so start clicking!
On the Web: www.hanovercenter.com
Taste and see
Spectrum Art & Jewelry, 1125-H Military Cutoff Road, is having an open house and wine tasting 6-8 p.m. Friday. Featured artist Sarah James, a glass beadmaker, has a collection of popular jewelry that will be on display.
On the Web: www.spectrumartandjewelry.com
New arrivals for “Project Runway” fans
Are you a “Project Runway” fan? The designs of former contestant Carol Hannah are arriving at Ziabird Studio Inspired Jewelry & Accessories in Lumina Station, and the shop is celebrating from 4 to 7 p.m. Wednesday.
On the Web: www.ziabird.com; www.carol-hannah.com
Read Judy Royal’s column weekly for great deals and fun finds at local shops. Send tips to Judy.Royal@StarNewsOnline.com.
PreciousPlatinum.com Unveils Fresh New Look Now Featuring More Platinum Bridal and Fashion Jewelry
PreciousPlatinum.com knows 81 percent of pre-engaged women desire platinum for their bridal Tiffany jewellery (Conde Nast Bridal Group), so it compiled the “best of the best” in platinum design from today’s top jewelry designers. A new, easy-to-navigate virtual “art gallery” walks visitors through each room where a different jewelry category is exhibited from platinum engagement rings and wedding bands to men’s platinum watches and everyday fashion jewelry. Within the “gallery,” visitors can explore special collections ranging in styles and price points and can learn more about why platinum is preferred among many brides and grooms.
For those who like to do their homework, the new PreciousPlatinum.com is also an educational site offering style advice, budget and planning tips, and a customizable guide that explains why platinum is considered the finest precious metal. It also addresses some of the most popular questions including why choose platinum over other metals, is it the best choice for my lifestyle and how does one care for platinum.
Searching for platinum jewelry has never been easier with PreciousPlatinum.com’s enhanced search criteria. The Design Gallery now offers searches by Jewelry Type, Occasion, Stone, Setting, and Finish. http://www.preciousplatinum.com/en-US/design-gallery.aspx
And because brides, grooms, and stylish consumers have favorite designers and want to know who’s behind the brand, PreciousPlatinum.com has added Designer Profiles – a behind the scenes look at your favorite platinum jewelry designers. http://www.preciousplatinum.com/EN-US/design-gallery/designers-glossary.aspx
Another discovery PreciousPlatinum.com made when speaking with its current users was the desire to see platinum jewelry in the media – in fashion magazines, on television and worn by today’s hottest celebrities. The new Media Center showcases all of this and more including the hottest bridal and fashion trends and who’s saying what. Visitors can also watch educational videos for a more in-depth look at platinum jewelry. http://www.preciousplatinum.com/en-US/media-center/pt-news.aspx necklaces
The new Hints & Tips section informs inquisitive shoppers about platinum and what makes it the finest precious metal. It provides a host of information about platinum, platinum jewelry, diamonds, settings, finishes, and styles – and viewers can now customize an educational PDF file with answers to their top questions about platinum. http://www.preciousplatinum.com/en-US/hints-tips.aspx
Lastly, PreciousPlatinum.com now houses an exciting new feature called, “My Platinum Dream List” – because all of us can dream! The “Dream List” enables viewers to save their favorite platinum jewelry pieces in one place for safe keeping or send them to friends, family or significant others to “drop the hint.” http://www.preciousplatinum.com/EN-US/login.aspx
Platinum is celebrated for its durability, rarity, prestige and beauty and the new PreciousPlatinum.com frank gehry offers today’s brides, grooms and style-seekers valuable information to help guide them through the purchase process. Along the way, consumers can learn insights into emerging trends in the jewelry and gain an opportunity to discover the many reasons why platinum is the clear choice for momentous occasions.
Hello Kitty to Make Rare Personal Appearance at Cooper Jewelers Showcasing New Kimora Lee Simmons for Hello Kitty Jewelry Collections
As part of the unveiling of the luxurious, upscale Cooper Tiffany jewellery store tomorrow morning, Hello Kitty herself will be on hand, adoringly greeting the public in celebration of the store’s arrival. Everyone’s favorite icon, who is celebrating her 35th Anniversary herself this year, will be displaying her personal favorite accessory collection, Kimora Lee Simmons by Hello Kitty Jewelry, a fine jewelry and watch collection defined by exquisite jewelry in 18k gold, diamonds and select gemstones (see also <http://www.newsrx.com/library/topics/Simmons-Jewelry-Co..html> Simmons Jewelry Co.).
This season’s Collection features stunning pink sapphire ombre pieces, the “big rocks” 35th Anniversary Collection and elegant watchpieces.
Come meet Hello Kitty Saturday, August 8th at 11 am to view Cooper rings Jewelry’s Kimora Lee Simmons for Hello Kitty jewelry collections (Cooper Jewelry is at 136-20 38th Avenue, Flushing, NY 11354-4233). Cooper carries a full range of fine jewelry from Cartier, Chopard to Chanel.
Gift bags will be given out to those who attend and a sneak peak of the Kimora Lee Simmons for Hello Kitty Collection is available to view on simmonsjewelryco.com
Keywords: Simmons bracelets Jewelry Co., Simmons Jewelry Co.
Results Reflect Jewelry Grading Businesses as Discontinued Operations
Continuing Operations Fourth Quarter and Fiscal Year 2009
For the fourth fiscal quarter of 2009, the Company reported net service revenues of $9.7 million, Tiffany jewellery operating income of $1.2 million and after tax income from continuing operations of $1.4 million, or $0.15 per diluted share. This compares to net service revenues of $9.5 million, operating income of $497,000 and an after tax loss from continuing operations of $648,000, or $0.07 per diluted share for the fourth quarter of 2008.
For the year ended June 30, 2009, the Company’s net service revenues were $35.5 million, operating income was $2.1 million and after tax income from continuing operations was $1.2 million, or $0.13 per diluted share. This compares to net service revenues of $38.5 million, operating income of $1.3 million and after tax income from continuing operations of $0.3 million, or $0.03 per diluted share, for fiscal year 2008.
The above results were achieved despite a non cash impairment loss of $649,000 recognized in the fourth quarter and fiscal 2009 associated with a write down of capitalized software costs for the Company’s autograph business.
Discontinued Fourth Quarter and Fiscal Year 2009
For the three months and fiscal year ended June 30, 2009, losses from discontinued operations were $1.3 million, or $0.14 per diluted share, and $18.1 million, or $1.98 per diluted share, respectively, as compared to losses from discontinued operations, net of taxes, of $12.5 million or $1.34 per diluted share and $15.9 million or $1.69 per diluted share, respectively, for the corresponding periods of fiscal 2008. Our discontinued operations are discussed in more detail below.
Net Income for the Fourth Quarter and Loss for Fiscal Year 2009
The resulting net income for the fourth quarter ended June 30, 2009 was $87,000, or $0.01 per diluted share and the net loss for fiscal year 2009 was $16.9 million or $1.85 per diluted share as compared to a net loss of $13.1 million, or $1.41 per diluted share and $15.6 million or $1.66 per diluted share for the fourth quarter and fiscal year ended June 30, 2008, respectively.
Operational and Financial Highlights:
– The total service revenues increase of 2% in the current fourth quarter bracelets
compared to the same quarter of last year, included a 14% increase in
coin total service revenues.
– The Company’s operating income for the current fourth quarter was
$1.2 million or 13% of revenues compared with $497,000 or 5% of revenues
in the fourth quarter of last year, due primarily to cost reductions
implemented and operational efficiencies achieved in fiscal 2009.
– The loss from discontinued operations of $1.3 million in the current
fourth quarter included an additional reserve of $0.9 million associated
with New York lease obligations of the Company’s former jewelry
businesses, due to the continued softness in the New York commercial
real estate market.
– Cash and cash equivalents at June 30, 2009 were $23.9 million, up from
$20.8 million at March 31, 2009.
– On July 10, 2009 the Company completed a modified Dutch Auction Tender
offer and accepted for purchase 1,749,828 shares at $5 per share for
$8,749,140 cash.
Michael McConnell, Chief Executive Officer, stated, “We’re encouraged by the Company’s financial performance during the quarter. The results demonstrate a commitment by all of our employees to both tactical initiatives to drive revenue as well as a keen focus on cost controls throughout the Company.”
Results of Operations of our Continuing Businesses
The 2% increase in net service revenues in the current fourth quarter compared to the same quarter of the prior year was comprised of a $0.2 million or 8% increase in related services with grading and authentication fees at approximately the same level as in the prior fourth quarter. Grading and authentication fees comprised an increase $0.6 million or 12% in coins offset by declines of 16% in cards and autographs and 46% in stamps. The increase in other related services included increases in advertising and collector club memberships.
Net service revenues for fiscal year 2009 declined by 8% compared to fiscal 2008 and comprised a $2.9 million or 9% decline in grading and authentication fees with other related services substantially the same as fiscal 2008. The decline in grading and authentication fees was comprised of $1.2 million or 6% in coins, $1.2 million or 12% in cards and autographs and the balance of $0.5 million or 34% for stamps.
The gross profit margin on service revenues increased to 58% and 56% in the fourth quarter and fiscal 2009 respectively compared with 52% and 53% for the same periods of the prior year, when the prior year is adjusted for the unusually large coin warranty claims of $822,000 recognized in the second quarter of that period. The increased gross profit margin was due to cost savings resulting from a cost reduction program implemented in the current fiscal year.
Operating expenses for the fourth quarter and fiscal 2009 before the impairment of $649,000 were down to $3.8 million and $16.8 million, respectively, compared to $4.4 million and $18.4 million for the same periods of the prior year. The $0.6 million and $1.6 million reductions in our operating expenses was attributable to reductions in both selling and marketing expenses and general and administrative (“G&A) expenses as a result of the cost reduction programs in fiscal 2009. The fiscal 2009 G&A expense reduction was achieved despite a severance cost of $0.4 million related to the departure of the Company’s former chief executive officer.
Income Taxes
The income tax expense of $1.2 million for fiscal 2009 represented an increase in a non-cash valuation allowance established against deferred tax assets, due to uncertainty as to their realization, partially offset by a tax benefit of $0.1 million recognized in the current fourth quarter, due to the resolution of some of the Company’s uncertain tax positions. For fiscal 2008, the income tax expense reflected the effective tax rate for those periods and a valuation allowance established in the fourth quarter of fiscal 2008 for California Enterprise Zone Credits due to uncertainty of realization.
Discontinued Operations
Losses from discontinued operations for the fourth quarter and fiscal 2009 totaled $1.3 million and $18.1 million, respectively. The 2009 fourth quarter loss of $1.3 million included the $0.9 million recognized for the New York lease obligations, costs associated with operating Gemprint through June 2009 and other exit costs. For fiscal year 2009, the loss from discontinued operations of $18.1 million comprised (i) losses of $5.1 million from the operations of the jewelry, currency grading businesses and Gemprint through the respective dates of sale or closure, (ii) losses of $5.3 million recognized in the third and fourth quarters, resulting from the discontinuance of primarily the jewelry grading businesses and was inclusive of $4.0 million for the New York rings lease obligations and (iii) non-cash impairment losses recognized in the second quarter of fiscal 2009, totaling $7.7 million, attributable to the write-off of goodwill and other long-lived assets of the jewelry businesses.
The losses from discontinued operations of $12.5 million and $15.9 million in the fourth quarter and fiscal 2008 respectively, comprised losses from the then on-going operations of our jewelry and currency businesses, net of taxes and impairment losses of $11.2 million recognized in the fourth quarter of fiscal 2008.
Financial Condition
At June 30, 2009, cash and cash equivalents totaled $23.9 million compared with $20.8 million at March 31, 2009 and $23.3 million at June 30, 2008. Net cash generated in fiscal 2009 of $0.5 million included cash generated from continuing operations of $5.8 million and from the net repayment of CFC notes receivable of $3.3 million reduced by net cash used in discontinued operations of $5.8 million, the payment of dividends to stockholders of $2.1 million, the net buyback of shares of $0.3 million and capital expenditures of $0.4 million. At June 30, 2009, the Company had working capital of $21.4 million.
Outlook
McConnell continued, “Looking forward into 2010, our focus is to build upon the solid performance achieved in the current quarter.”
Conference Call and Webcast
Collectors Universe will host a conference call to discuss results on Thursday, August 27, 2009 at 5:00 p.m. Eastern/2:00 p.m. Pacific. Interested parties may participate in the conference call by dialing 888-549-7750 or 480-629-9867, five to ten minutes prior to the initiation of the call. A replay of the conference call will be available through September 11, 2009, by dialing 800-406-7325 or 303-590-3030 and entering access code 4148865#. A live webcast of the conference call will also be available on the Collectors Universe website, www.collectors.com, under Investor Relations: Earnings Conference Calls. The webcast will be archived for 12 months.
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value added services to the high-value collectibles markets. The Company authenticates and grades collectible coins, sports cards, autographs and stamps. The Company also compiles and publishes authoritative information about United States and world coins, collectible trading cards and sports memorabilia and collectible stamps and operates its CCE dealer-to-dealer Internet bid-ask market for certified coins and its Expos trade show and conventions business. This information is accessible to collectors and dealers at the Company’s web site, www.collectors.com, and is also published in print.
Cautionary Statements Regarding Forward Looking Information
This news release contains statements regarding our expectations, beliefs or views about our future financial performance, which constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Due to a number of risks and uncertainties to which our business is subject, our future financial performance may differ, possibly significantly, from our expected financial performance as set forth in the forward looking statements contained in this news release. Information regarding those risks and uncertainties, and their possible impact on our future financial performance, include, but are not limited to, the risk that economic conditions in the United States will not improve for some time and may even deteriorate further, which could result in further reductions in the demand for our collectible grading services and, consequently, in our revenues; the risk that the current economic recession and credit crisis will lead to longer term changes in the spending habits of consumers and in the availability and use of credit by of smaller businesses, such as collectibles dealers, to fund purchases of collectibles, which could lead to longer term declines in collectibles commerce and, therefore, in the demand for our services; the risk that our strategy to offer new services in our continuing collectibles markets will not be successful in enabling us to improve our profitability or may even cause us to incur significant losses; and the risk that the commercial real estate market in New York City will deteriorate further, in which case we may not be able to sublease the offices and laboratory facilities in New York City formerly occupied by our jewelry businesses within the time periods and for the rents currently expected, causing our rental payment obligations to be significantly higher than currently expected which could lead to reductions in cash flows and cause us to incur additional losses from discontinued operations in future periods.
Additional information regarding these risks and information regarding other risks and uncertainties to which our business is subject is contained in our Annual Report on Form 10-K for our fiscal year ended June 30, 2008 and our Quarterly Report on Form 10-Q for the third quarter ended March 31, 2009 filed with the Securities and Exchange Commission, which will be supplemented and updated by the discussion of risk factors in our on Annual Report on Form 10-K for our fiscal year ended June 30, 2009. Due to these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or in our Annual Reports, which speak only as of their respective dates. We also disclaim any obligation to update or revise any of the forward-looking statements as a result of new information, future events or otherwise, except as may be required by law or NASDAQ rules.