How Much Money Do TPGs Make?

The following is taken from their 10-Q


"decreases of $216,000 and $847,000, respectively, in the operating income of our coin grading business in the three and nine months ended March 31, 2007, due primarily to an increase in costs resulting from the addition of coin grading capacity in anticipation of increased volumes of submissions and to reduce turnaround times, and the fact that our operating results in the nine months ended March 31, 2006 benefited from the reversal of a compensation accrual in the amount of $194,000 due to the termination, during that period, of a long-term employment contract; and (iii) increased infrastructure-related costs of $182,000 and $469,000 in the three and nine months ended March 31, 2007, as we continued to upgrade and expand our internal systems to support increased business and entry into new markets. These, as well as other factors affecting our operating results in the three and nine months ended March 31, 2007, are described in more detail below."

Who do you think they are talking about here-

"Five of our coin authentication and grading customers accounted for approximately 22% and 15% of our total net revenues in the fiscal year ended June 30, 2006 and in the nine months ended March 31, 2007, respectively."

Units Processed
Three Months Ended March 31,
2007 2006
Coins 400,000 50.0 % 474,000 56.0 %

Declared Value (000)
Three Months Ended March 31,
2007 2006
$ 365,597 84.0 % $ 577,693 93.0 %

I am not so sure I would call that "not doing so well" . If you could sell a service, pay all your expenses (workers salaries-including yours , equipment and inventory) And still turn a profit of almost a dollar per unit , Your accountant is not doing his job.
Sounds to me like they hired more help and upgraded or got new equipment in anticipation of more submissions, all of which can be taken as losses from the profits.
If they start losing money they will surely raise their prices like any other company , and the submitters will keep paying the prices as long as their is a market for the slabs.

and hence the problem with TPG that are public....they have to make money to stay in business...when they grade 2 tight, people go to the competition who may be grading loose....