– Revenue of $102.9 million – GMV of $189.4 million – Adjusted EBITDA
of $8.6 million
-Investments in LiquidityOne Transformation Program and Long Term
Commercial Growth Strategy Remain the Priority
WASHINGTON–(BUSINESS WIRE)–May 7, 2015–
Liquidity Services (NASDAQ: LQDT; www.liquidityservices.com),
a global solution provider in the reverse supply chain with the world’s
largest marketplace for business surplus, today reported its financial
results for its second quarter of fiscal year 2015 (Q2-15) ended March
31, 2015. Liquidity Services is a global solution provider in the
reverse supply chain with the world’s largest marketplace for business
surplus.
Consistent with previous disclosures, Liquidity Services’ current period
results reflect lower sales and profitability due to the loss of the
rolling stock contract with the Department of Defense (DoD) and the
termination of our Jacobs Trading subsidiary’s Walmart contract.
Liquidity Services reported consolidated Q2-15 revenue of $102.9
million, a decrease of approximately 19.8% from the prior year’s
comparable period. Adjusted EBITDA, which excludes stock-based
compensation, acquisition costs including changes in acquisition earn
out payment estimates, and impairment of goodwill and long-lived assets,
for Q2-15 was $8.6 million, a decrease of approximately 48.4% from the
prior year’s comparable period. Q2-15 GMV, the total sales volume of all
merchandise sold through the Company’s marketplaces, was $189.4 million,
a decrease of 16.6% from the prior year’s comparable period.
Net income in Q2-15 was $1.4 million or $0.05 diluted earnings per
share. Adjusted net income, which excludes stock-based compensation,
acquisition costs including changes in acquisition earn out payment
estimates, and impairment of goodwill and long-lived assets – net of
tax, in Q2-15 was $2.4 million or $0.08 adjusted diluted earnings per
share based on 30.0 million fully diluted shares outstanding, a decrease
of approximately 71.7% and 69.2%, respectively, from the prior year’s
comparable period. Q2-15 Adjusted Net Income and Adjusted EPS benefitted
from our 22.8% tax rate due to the tax benefit realized from goodwill
impairment in Q1-15. After FY15, we would expect our future tax rate to
range between 38% to 40%.
“Q2 results were at the midpoint of our GMV guidance and above our
Adjusted EBITDA guidance, led by strong performance in our municipal
government and retail industry vertical marketplaces and better than
expected property mix in our DoD business. Results in our capital assets
business were dampened by macro weakness in our energy and industrial
verticals which impacted asset pricing,” said Bill Angrick, chairman and
chief executive officer of Liquidity Services. “During the quarter, we
saw significant improvements in our retail supply chain business as we
benefitted from efficiencies implemented over the past 12 months and the
development of a diversified portfolio of retail and OEM clients. We
continue to invest heavily in our sales and marketing function and
signed over 50 new clients during Q2 that will contribute to our results
in FY-16. Our entire team is also pleased and excited to have externally
launched our new Liquidity Services brand which unifies our client
facing message and better positions our value proposition for managing
and selling surplus assets. We also continue to make progress on the
technology component of our LiquidityOne transformation plan,
achieving internal milestones during Q2 for defining common lead
generation processes and business process alignment for our new unified
marketplace platform. The continued build out and heavy investment in
our technology and operational platform, and further marketing
initiatives will depress our growth and earnings results in the near
term but are critical to building a superior customer experience and
sustainable, long term growth and value for our shareholders.”
Business Outlook
In the near term, it is difficult for us to forecast the sales and
margins of our business in FY-15 as our DoD business has seen
significant changes in the volume and mix of property we handle, which
has reduced sales values and increased costs. As we previously
announced, our current contract with the DoD will be in effect through
FY15. We are awaiting the final specifications and timing of the work we
will be performing under the new DoD surplus contract, which would
affect our FY16 operating results. Global economic conditions have
improved, however our overall outlook remains cautious regarding our
commercial capital assets business due to volatility in capital spending
patterns and macroeconomic trends. In addition, the mix of property
received under selected retail client programs is unpredictable,
resulting in margin pressure and actions on our part to improve the
terms under which we do business. Lastly, we plan to further allocate
management time and resources to accomplish our LiquidityOne
transformation program which may result in reduced productivity and
growth during FY-15 that is difficult to forecast.
In the longer term, we expect our business to continue to benefit from
the following trends: (i) as consumers trade down and seek greater
value, we anticipate stronger buyer demand for the surplus merchandise
sold in our marketplaces; (ii) as corporations and public sector
agencies focus on reducing costs, improving transparency, compliance and
working capital flows by outsourcing reverse supply chain activities, we
expect our seller base to increase; and (iii) as corporations and public
sector agencies increasingly prefer service providers with a proven
track record, innovative scalable solutions and the ability to make a
strategic impact in the reverse supply chain, we expect our seller base
to increase.
The following forward-looking statements reflect trends and assumptions
for the third quarter FY 2015:
| (i) | stable commodity prices in our scrap business; | ||
| (ii) |
stable average sales prices realized in our commercial capital assets marketplaces; |
||
| (iii) | improved margins in our commercial capital assets marketplaces; | ||
| (iv) | an effective income tax rate of 22.8%; and | ||
| (v) |
improved operations and service levels in our retail goods marketplaces. |
||
Our Scrap Contract with the Department of Defense includes an incentive
feature, which can increase the amount of profit sharing distribution we
receive from 23% up to 25%. Payments under this incentive feature are
based on the amount of scrap we sell for the DoD to small businesses
during the preceding 12 months as of June 30th of each year.
We are eligible to receive this incentive in each year of the term of
the Scrap Contract and have assumed for purposes of providing guidance
regarding our projected financial results for third quarter of fiscal
year 2015 that we will again receive this incentive payment.
GMV – We expect GMV for Q3-15 to range from
$175 million to $200 million.
Adjusted EBITDA –We expect Adjusted EBITDA
for Q3-15 to range from $4.0 million to $6.0 million.
Adjusted Diluted EPS – We estimate Adjusted
Earnings Per Diluted Share for Q3-15 to range from $0.05 to $0.10. This
guidance assumes that we have an average fully diluted number of shares
outstanding for the quarter of 30.2 million, and that we will not
repurchase shares with the approximately $5.1 million yet to be expended
under the share repurchase program.
Our third quarter guidance adjusts EBITDA and Diluted EPS for stock
based compensation costs, which we estimate to be approximately $3.5
million to $4.0 million. These stock based compensation costs are
consistent with fiscal year 2014.
Key Q2-FY15 Operating Metrics
Registered Buyers — At the end of Q2-15,
registered buyers totaled approximately 2,688,000, representing a 6.5%
increase over the approximately 2,524,000 registered buyers at the end
of Q2-14.
Auction Participants — Auction
participants, defined as registered buyers who have bid in an auction
during the period (a registered buyer who bids in more than one auction
is counted as an auction participant in each auction in which he or she
bids), decreased to approximately 640,000 in Q2-15, an approximately
3.8% decrease over the approximately 665,000 auction participants in
Q2-14.
Completed Transactions — Completed
transactions increased to approximately 146,000, an approximately 10.6%
increase for Q2-15 from the approximately 132,000 completed transactions
in Q2-14.
GMV and Revenue Mix —The table below
summarizes GMV and revenue by pricing model.
|
GMV Mix |
||||||
| Q2-15 | Q2-14 | |||||
| Profit-Sharing Model: | ||||||
| Scrap Contract | 8.0% | 7.2% | ||||
| Total Profit Sharing | 8.0% | 7.2% | ||||
| Consignment Model: | ||||||
| GovDeals | 23.8% | 17.1% | ||||
| Commercial | 31.8% | 35.6% | ||||
| Total Consignment | 55.6% | 52.7% | ||||
| Purchase Model: | ||||||
| Commercial | 22.3% | 23.1% | ||||
| Surplus Contract | 14.1% | 17.0% | ||||
| Total Purchase | 36.4% | 40.1% | ||||
| Total | 100.0% | 100.0% | ||||
|
Revenue Mix |
||||||
| Q2-15 | Q2-14 | |||||
| Profit-Sharing Model: | ||||||
| Scrap Contract | 14.7% | 12.8% | ||||
| Total Profit Sharing | 14.7% | 12.8% | ||||
| Consignment Model: | ||||||
| GovDeals | 4.5% | 3.2% | ||||
| Commercial | 10.0% | 11.0% | ||||
| Total Consignment | 14.5% | 14.2% | ||||
| Purchase Model: | ||||||
| Commercial | 40.2% | 37.3% | ||||
| Surplus Contract | 26.0% | 30.1% | ||||
| Total Purchase | 66.2% | 67.4% | ||||
| Other | 4.6% | 5.6% | ||||
| Total | 100.0% | 100.0% | ||||
Liquidity Services
Reconciliation of GAAP to Non-GAAP Measures
EBITDA and Adjusted EBITDA. EBITDA
is a supplemental non-GAAP financial measure and is equal to net income
(loss) plus interest and other expense, net; provision (benefit) for
income taxes; amortization of contract intangibles; and depreciation and
amortization. Our definition of Adjusted EBITDA differs from EBITDA
because we further adjust EBITDA for stock based compensation expense,
acquisition costs including changes in earn out estimates, and
impairment of goodwill and long-lived assets.
|
Three Months Ended March 31, |
Six Months Ended March 31, |
||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| (In thousands) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Net income (loss) | $ | 1,381 | $ | 5,631 | $ | (62,735 | ) | $ | 12,724 | ||||||||
| Interest and other expense , net | 39 | 79 | 77 | 100 | |||||||||||||
| Provision (benefit) for income taxes | 2,391 | 3,753 | (18,527 | ) | 8,482 | ||||||||||||
| Amortization of contract intangibles | — | 2,272 | 1,211 | 4,679 | |||||||||||||
| Depreciation and amortization | 1,994 | 1,973 | 3,986 | 3,977 | |||||||||||||
| EBITDA | 5,805 | 13,708 | (75,988 | ) | 29,962 | ||||||||||||
| Stock compensation expense | 2,810 | 2,908 | 5,412 | 6,567 | |||||||||||||
|
Acquisition costs and related fair value adjustments and |
— | 85 | 96,238 | 180 | |||||||||||||
| Adjusted EBITDA | $ | 8,615 | $ | 16,701 | $ | 25,662 | $ | 36,709 | |||||||||
Adjusted Net Income and Adjusted Basic and Diluted
Earnings Per Share. Adjusted net income is a supplemental
non-GAAP financial measure and is equal to net income (loss) plus tax
effected stock compensation expense, amortization of contract-related
intangible assets associated with the Jacobs Trading acquisition,
acquisition costs including changes in earn out estimates, and
impairment of goodwill and long-lived assets. Adjusted basic and diluted
earnings per share are determined using Adjusted Net Income. Q2 Adjusted
Net Income and Adjusted EPS benefitted from our 22.8% tax rate due to
the tax benefit realized from goodwill impairment. We expect our future
tax rate to range between 38% to 40%.
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| (Unaudited) (Dollars in thousands, except per share data) | |||||||||||||||||
| Net income | $ | 1,381 | $ | 5,631 | $ | (62,735 | ) | $ | 12,724 | ||||||||
| Stock compensation expense (net of tax) | 1,029 | 1,745 | 4,178 | 3,940 | |||||||||||||
| Amortization of contract intangibles (net of tax) | — | 1,090 | 935 | 2,180 | |||||||||||||
| Acquisition costs (net of tax) | — | 51 | 74,296 | 108 | |||||||||||||
| Adjusted net income | $ | 2,410 | $ | 8,517 | $ |
16,674 |
$ | 18,952 | |||||||||
| Adjusted basic earnings per common share | $ | 0.08 | $ | 0.26 | $ |
0.56 |
$ | 0.59 | |||||||||
| Adjusted diluted earnings per common share | $ | 0.08 | $ | 0.26 | $ |
0.56 |
$ | 0.58 | |||||||||
| Basic weighted average shares outstanding | 29,998,324 | 32,231,011 | 29,957,298 | 31,187,038 | |||||||||||||
| Diluted weighted average shares outstanding | 29,988,324 | 32,321,482 | 29,957,298 | 32,489,776 | |||||||||||||
Conference Call
The Company will host a conference call to discuss the second quarter
fiscal year 2015 results at 10:30 a.m. Eastern Time today. Investors and
other interested parties may access the teleconference by dialing
800-237-9752 or 617-847-8706 and providing the participant pass code
46867722. A live web cast of the conference call will be provided on the
Company’s investor relations website at http://investors.liquidityservices.com.
An archive of the web cast will be available on the Company’s website
until May 7, 2016 at 11:59 p.m. ET. An audio replay of the
teleconference will also be available until May 14, 2015 at 11:59 p.m.
ET. To listen to the replay, dial 888-286-8010 or 617-801-6888 and
provide pass code 24271858. Both replays will be available starting at
2:30 p.m. ET on the day of the call.
Non-GAAP Measures
To supplement our consolidated financial statements presented in
accordance with GAAP, we use certain non-GAAP measures of certain
components of financial performance. These non-GAAP measures include
earnings before interest, taxes, depreciation and amortization (EBITDA),
Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share.
These non-GAAP measures are provided to enhance investors’ overall
understanding of our current financial performance and prospects for the
future. We use EBITDA and Adjusted EBITDA: (a) as measurements of
operating performance because they assist us in comparing our operating
performance on a consistent basis as they do not reflect the impact of
items not directly resulting from our core operations; (b) for planning
purposes, including the preparation of our internal annual operating
budget; (c) to allocate resources to enhance the financial performance
of our business; (d) to evaluate the effectiveness of our operational
strategies; and (e) to evaluate our capacity to fund capital
expenditures and expand our business.
We believe these non-GAAP measures provide useful information to both
management and investors by excluding certain expenses that may not be
indicative of our core operating measures. In addition, because we have
historically reported certain non-GAAP measures to investors, we believe
the inclusion of non-GAAP measures provides consistency in our financial
reporting. These measures should be considered in addition to financial
information prepared in accordance with generally accepted accounting
principles, but should not be considered a substitute for, or superior
to, GAAP results. A reconciliation of all historical non-GAAP measures
included in this press release, to the most directly comparable GAAP
measures, may be found in the financial tables included in this press
release.
Supplemental Operating Data
To supplement our consolidated financial statements presented in
accordance with GAAP, we use certain supplemental operating data as a
measure of certain components of operating performance. We review GMV
because it provides a measure of the volume of goods being sold in our
marketplaces and thus the activity of those marketplaces. GMV and our
other supplemental operating data, including registered buyers, auction
participants and completed transactions, also provide a means to
evaluate the effectiveness of investments that we have made and continue
to make in the areas of customer support, value-added services, product
development, sales and marketing and operations. Therefore, we believe
this supplemental operating data provides useful information to both
management and investors. In addition, because we have historically
reported certain supplemental operating data to investors, we believe
the inclusion of this supplemental operating data provides consistency
in our financial reporting. This data should be considered in addition
to financial information prepared in accordance with generally accepted
accounting principles, but should not be considered a substitute for, or
superior to, GAAP results.
Forward-Looking Statements
This document contains forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. These statements are
only predictions. The outcome of the events described in these
forward-looking statements is subject to known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to differ materially
from any future results, levels of activity, performance or achievements
expressed or implied by these forward-looking statements. These
statements include, but are not limited to, statements regarding the
Company’s business outlook, plans to increase investments in technology
infrastructure, our proprietary e-commerce marketplace platform, product
development and marketing initiatives, the supply and mix of inventory
under the DoD Surplus Contract, expected future effective tax rates, and
trends and assumptions about future periods, including the third quarter
FY 2015 and the full year FY 2015. You can identify forward-looking
statements by terminology such as “may,” “will,” “should,” “could,”
“would,” “expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” “potential,” “continues” or the negative of
these terms or other comparable terminology. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance or achievements.
There are a number of risks and uncertainties that could cause our
actual results to differ materially from the forward-looking statements
contained in this document. Important factors that could cause our
actual results to differ materially from those expressed as
forward-looking statements are set forth in our filings with the SEC
from time to time, and include, among others, our dependence on our
contracts with the DoD for a significant portion of our revenue and
profitability; our ability to successfully expand the supply of
merchandise available for sale on our online marketplaces; our ability
to attract and retain active professional buyers to purchase this
merchandise; the timing and success of upgrades to our technology
infrastructure; our ability to successfully complete the integration of
any acquired companies into our existing operations and our ability to
realize any anticipated benefits of these or other acquisitions; the
success of our business realignment and LiquidityOne integration
and enhancement initiative. There may be other factors of which we are
currently unaware or deem immaterial that may cause our actual results
to differ materially from the forward-looking statements.
All forward-looking statements attributable to us or persons acting on
our behalf apply only as of the date of this document and are expressly
qualified in their entirety by the cautionary statements included in
this document. Except as may be required by law, we undertake no
obligation to publicly update or revise any forward-looking statement to
reflect events or circumstances occurring after the date of this
document or to reflect the occurrence of unanticipated events.
About Liquidity Services
Liquidity Services is a global solution provider in the reverse supply
chain with the world’s largest marketplace for business surplus. We
partner with global Fortune 1000 corporations, middle market companies,
and government agencies to intelligently transform surplus assets and
inventory from a burden into a liquid opportunity that fuels the
achievement of strategic goals. Our superior service, unmatched scale,
and ability to deliver results enable us to forge trusted, long-term
relationships with over 7,000 clients worldwide. With approximately $1
billion in annual sales proceeds, and nearly 3 million buyers in almost
200 countries and territories, we are the proven leader in delivering
smart surplus solutions. Let us build a better future for your surplus.
Visit us at www.LiquidityServices.com.
|
Liquidity Services, Inc. and Subsidiaries Consolidated Balance Sheets (Dollars in Thousands) |
||||||||||
| March 31, | September 30, | |||||||||
| 2015 | 2014 | |||||||||
| Assets | (Unaudited) | |||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 86,231 | $ | 62,598 | ||||||
|
Accounts receivable, net of allowance for doubtful accounts of $2,247 and $1,042 at March 31, 2015 and September 30, 2014, respectively |
14,525 | 21,688 | ||||||||
| Inventory | 51,695 | 78,478 | ||||||||
| Prepaid and deferred taxes | 15,679 | 16,777 | ||||||||
| Prepaid expenses and other current assets | 4,774 | 5,156 | ||||||||
| Total current assets | 172,904 | 184,697 | ||||||||
| Property and equipment, net | 14,327 | 12,283 | ||||||||
| Intangible assets, net | 3,812 | 17,099 | ||||||||
| Goodwill | 121,835 | 209,656 | ||||||||
| Deferred long-term tax assets | 28,305 | 6,160 | ||||||||
| Other assets | 2,022 | 1,823 | ||||||||
| Total assets | $ | 343,205 | $ | 431,718 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 15,686 | $ | 15,994 | ||||||
| Accrued expenses and other current liabilities | 28,094 | 44,484 | ||||||||
| Profit-sharing distributions payable | 5,025 | 4,740 | ||||||||
| Customer payables | 30,695 | 41,544 | ||||||||
| Total current liabilities | 79,500 | 106,762 | ||||||||
| Deferred taxes and other long-term liabilities | 6,986 | 7,973 | ||||||||
| Total liabilities | 86,486 | 114,735 | ||||||||
| Stockholders’ equity: | ||||||||||
|
Common stock, $0.001 par value; 120,000,000 shares authorized; 29,994,582 shares issued and outstanding at March 31, 2015; 29,668,150 shares issued and outstanding at September 30, 2014 |
29 | 28 | ||||||||
| Additional paid-in capital | 210,287 | 204,704 | ||||||||
| Accumulated other comprehensive loss | (6,564 | ) | (3,451 | ) | ||||||
| Retained earnings | 52,967 | 115,702 | ||||||||
| Total stockholders’ equity | 256,719 | $ | 316,983 | |||||||
| Total liabilities and stockholders’ equity | $ | 343,205 | $ | 431,718 | ||||||
|
Liquidity Services, Inc. and Subsidiaries Unaudited Consolidated Statements of Operations (Dollars in Thousands, Except Share and Per Share Data) |
||||||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||
|
2015 |
2014 |
2015 | 2014 | |||||||||||||||||
| Revenue | $ | 83,286 | $ | 102,920 | $ | 181,449 | $ | 196,390 | ||||||||||||
| Fee revenue | 19,657 | 25,409 | 46,637 | 53,887 | ||||||||||||||||
| Total revenue | 102,943 | 128,329 | 228,086 | 250,277 | ||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Cost of goods sold (excluding amortization) | 42,661 | 54,273 | 96,976 | 101,983 | ||||||||||||||||
| Profit-sharing distributions | 7,558 | 8,299 | 17,150 | 18,429 | ||||||||||||||||
| Technology and operations | 24,747 | 29,070 | 51,625 | 54,691 | ||||||||||||||||
| Sales and marketing | 10,798 | 10,459 | 21,183 | 20,290 | ||||||||||||||||
| General and administrative | 11,374 | 12,435 | 20,902 | 24,742 | ||||||||||||||||
| Amortization of contract intangibles | — | 2,272 | 1,211 | 4,679 | ||||||||||||||||
| Depreciation and amortization | 1,994 | 1,973 | 3,986 | 3,977 | ||||||||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
— | 85 | 96,238 | 180 | ||||||||||||||||
| Total costs and expenses | 99,132 | 118,866 | 309,271 | 228,971 | ||||||||||||||||
| Income (loss) from operations | 3,811 | 9,463 | (81,185 | ) | 21,306 | |||||||||||||||
| Interest and other expense, net | (39 | ) | (79 | ) | (77 | ) | (100 | ) | ||||||||||||
| Income (loss) before provision for income taxes | 3,772 | 9,384 | (81,262 | ) | 21,206 | |||||||||||||||
| (Provision) benefit for income taxes | (2,391 | ) | (3,753 | ) | 18,527 | (8,482 | ) | |||||||||||||
| Net income (loss) | $ | 1,381 | $ | 5,631 | $ | (62,735 | ) | $ | 12,724 | |||||||||||
| Basic earnings (loss) per common share | $ | 0.05 | $ | 0.17 | $ | (2.09 | ) | $ | 0.39 | |||||||||||
| Diluted earnings (loss) per common share | $ | 0.05 | $ | 0.17 | $ | (2.09 | ) | $ | 0.39 | |||||||||||
| Basic weighted average shares outstanding | 29,988,324 | 32,231,011 | 29,957,298 | 32,187,038 | ||||||||||||||||
| Diluted weighted average shares outstanding | 29,988,324 | 32,321,482 | 29,957,298 | 32,489,776 | ||||||||||||||||
|
Liquidity Services, Inc. and Subsidiaries Unaudited Consolidated Statements of Cash Flows (Dollars In Thousands) |
||||||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||
| 2015 | 2014 |
2015 |
2014 | |||||||||||||||||
| Operating activities | ||||||||||||||||||||
| Net income | $ | 1,381 | $ | 5,631 | $ | (62,735 | ) | $ | 12,724 | |||||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||||||
| Depreciation and amortization | 1,994 | 4,244 | 5,197 | 8,655 | ||||||||||||||||
| Stock compensation expense | 2,810 | 2,908 | 5,412 | 6,567 | ||||||||||||||||
| Benefit (provision) for inventory allowance | (2,415 | ) | — | (2,463 | ) | 291 | ||||||||||||||
| Provision for doubtful accounts | 1,084 | 148 | 1,205 | 91 | ||||||||||||||||
| Deferred tax benefit | (22,145 | ) | — | |||||||||||||||||
| Impairment of goodwill and long-lived assets | — | — | 96,238 | — | ||||||||||||||||
| Incremental tax (loss) benefit from exercise of common stock options | 98 | (414 | ) | (65 | ) | (3,296 | ) | |||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||
| Accounts receivable | 4,610 | 1,364 | 5,957 | (3,096 | ) | |||||||||||||||
| Inventory | 21,108 | (35,869 | ) | 29,246 | (42,670 | ) | ||||||||||||||
| Prepaid and deferred taxes | 874 | (8,136 | ) | 1,164 | (7,750 | ) | ||||||||||||||
| Prepaid expenses and other assets | (476 | ) | (1,484 | ) | 182 | 1,305 | ||||||||||||||
| Accounts payable | 551 | 1,308 | (308 | ) | 5,358 | |||||||||||||||
| Accrued expenses and other | (8,856 | ) | 32,224 | (16,390 | ) | 29,543 | ||||||||||||||
| Profit-sharing distributions payable | 677 | 178 | 285 | 337 | ||||||||||||||||
| Customer payables | (7,034 | ) | 2,380 | (10,849 | ) | 2,619 | ||||||||||||||
| Acquisition earn out payables | — | 86 | — | 175 | ||||||||||||||||
| Other liabilities | (526 | ) | (453 | ) | (987 | ) | (1,796 | ) | ||||||||||||
| Net cash provided by operating activities | 15,880 | 4,115 | 28,944 | 9,057 | ||||||||||||||||
| Investing activities | ||||||||||||||||||||
| Increase in goodwill and intangibles | (6 | ) | — | (9 | ) | — | ||||||||||||||
| Purchases of property and equipment | (3,483 | ) | (2,272 | ) | (5,095 | ) | (4,950 | ) | ||||||||||||
| Net cash used in investing activities | (3,489 | ) | (2,272 | ) | (5,104 | ) | (4,950 | ) | ||||||||||||
| Financing activities | ||||||||||||||||||||
| Proceeds from exercise of common stock options (net of tax) | 36 | 1,762 | 107 | 2,231 | ||||||||||||||||
| Purchase of treasury stock | — | (3,057 | ) | — | (3,057 | ) | ||||||||||||||
| Incremental tax (loss) benefit from exercise of common stock options | (98 | ) | 414 | 65 | 3,296 | |||||||||||||||
| Net cash (used in) provided by financing activities | (62 | ) | (881 | ) | 172 | 2,470 | ||||||||||||||
| Effect of exchange rate differences on cash and cash equivalents | (320 | ) | (687 | ) | (379 | ) | 80 | |||||||||||||
| Net increase in cash and cash equivalents | 12,009 | 275 | 23,633 | 6,657 | ||||||||||||||||
| Cash and cash equivalents at beginning of the period | 74,222 | 101,491 | 62,598 | 95,109 | ||||||||||||||||
| Cash and cash equivalents at end of period | $ | 86,231 | $ | 101,766 | $ | 86,231 | $ | 101,766 | ||||||||||||
| Supplemental disclosure of cash flow information | ||||||||||||||||||||
| Cash paid for income taxes | $ | 1,864 | $ | 11,513 | $ | 2,453 | $ | 12,974 | ||||||||||||
Source: Liquidity Services, Inc.
Liquidity Services, Inc.
Julie Davis
Senior Director, Investor
Relations
202.467.6868 ext. 2234
[email protected]
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