WEST CALDWELL, N.J.--(BUSINESS WIRE)--June 15, 2007--Escala Group, Inc. (ESCL) today announced that it is undertaking a facilities consolidation plan designed to reduce fixed costs and improve operating efficiency. Under the plan, the Company's North American Philatelic Operations, which is currently operating out of three locations in West Caldwell, NJ, Danbury, CT, and New York City, will be combined under one roof in newly leased facilities in Bethel, CT. In addition, the Company's corporate headquarters will move from New York City to the same Bethel, CT location. The consolidation plan is expected to be fully implemented by October 30, 2007.
According to Matthew M. Walsh, President, Chief Financial Officer and Acting Chief Executive Officer, "The Company projects cost savings from this plan of approximately $1.5 million, after one-time costs. The cost savings will derive from lower personnel costs and lower general and administrative costs such as rent expense, maintenance and repair and utilities expense of the former multiple locations."
Mr. Walsh continued, "The consolidation of our North American philatelic operations under one roof is a sensible initiative that improves more than just our facilities costs. Manpower utilization, communication, material flow, and other work processes will also improve and should result in additional value creation beyond our projected cost savings. In addition, moving the corporate headquarters staff to more cost effective space where we can also better integrate into operations brings our company closer together in more ways than just physical proximity."
About Escala Group, Inc.
Escala Group is a consolidated global collectibles network. The Company is a leading auctioneer of stamps, coins, arms, armor and militaria, and other memorabilia, targeting both collectors and dealers. Escala 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. Escala conducts its operations in two business segments: collectibles and trading.
Escala's Group Companies focused on philately are H.R. Harmer and Nutmeg Stamp Sales, of North America; Corinphila Auktionen of Zurich, Switzerland and the Kohler group of auction companies of Berlin and Wiesbaden, Germany from our European division; and John Bull Stamp Auctions, Ltd, the oldest philatelic auction house in Hong Kong in our Asia division. Escala's Group Companies in its numismatics division include Teletrade, Bowers and Merena Auctions, North American Certified Trading, and Spectrum Numismatics International, one of the largest wholesalers of rare coins in the U.S. Greg Martin Auctions is in the Company's art and antiques division.
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. The Company 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.
CONTACT: Escala Group
Matthew Walsh, 212-421-9400
mwalsh@escalagroup.com
SOURCE: Escala Group, Inc.
