– Fourth Quarter Revenue of $79.3 million – GMV of $170.7 million –
Adjusted EBITDA of $1.9 million
– Fiscal Year Revenue of $397.1 million – GMV of $799.0 million –
Adjusted EBITDA of $33.1 million
– Long Term Commercial Growth Strategy Remains the Priority,
LiquidityOne Platform Beta Testing Launched
WASHINGTON–(BUSINESS WIRE)–Nov. 19, 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 that gross
merchandise volume (GMV) for the quarter ended September 30, 2015 was
$170.7 million, a decrease of 23.8% from the prior year’s comparable
period. Revenue for the quarter was $79.3 million, adjusted EBITDA,
which excludes stock-based compensation, acquisition costs, impairment
of goodwill and long-lived assets, business realignment expenses, and
gains or losses from business dispositions, was $1.9 million and
adjusted net income was $2.0 million or $0.07 adjusted diluted earnings
per share. Q4-FY15 results were within the company’s guidance range for
both GMV and adjusted EBITDA and above the guidance range for adjusted
EPS.
“Our focus remains on building the most innovative services and
capabilities in the global reverse supply chain industry in response to
what our customers want and need to improve their own performance,” said
Bill Angrick, chairman and chief executive officer of Liquidity
Services. “Our customers are playing an active role in the development
and testing of our new LiquidityOne platform and the initial feedback is
very positive. Our significant investment in delivering the next
generation of cloud based marketplace, analytics and returns management
solutions will transform how the world’s largest organizations capture
value in their supply chain and leverages our unique insights from
transacting over $6 billion in surplus goods. As our business undergoes
this critical transformation, we are excited by the new opportunities
and long-term value we are creating.”
Q4-FY15 results were led by our state and municipal government
marketplace and our industrial capital assets marketplace which both
experienced double digit growth driven by an increase in the number of
sellers and transaction volume in these verticals. The company
experienced a decline in the availability of supply in our consumer
electronics vertical and unfavorable industry trends in our energy
vertical which impacted pricing and transaction volume during the
quarter. During the quarter, we also signed over 40 new commercial
accounts and our registered buyer base and number of completed
transactions grew 9% and 4%, respectively, over the prior year period.
Q4-15 capped off a productive year serving multinational clients. Our
Asia Pacific region grew over 100% annually as more international
customers leveraged the superior service, scale, and results of our
marketplace solution. Our state and municipal government marketplace
also achieved record annual results with impressive growth in the U.S.
and a successful expansion into Canada. We exited FY-15 in a strong
financial position with $95.5 million in cash and a debt free balance
sheet, not including the significant cash benefit from our recent sale
of the Jacobs Trading business.
Comparative financial results reflect the re-set of our base business
following the loss of our Department of Defense (DoD) rolling stock
program, the removal of our Walmart-Jacobs Trading program, and ramp up
of our LiquidityOne investment program. Our Q4-FY15 revenue and adjusted
EBITDA decreased 33.0% and 79.3%, respectively, from the prior year’s
comparable period, and adjusted net income and adjusted diluted earnings
per share decreased 50.3% and 46.1%, respectively, from the prior year’s
comparable period. Net GAAP loss for Q4-15 was $43.7 million, which
resulted in a $1.46 diluted loss per share based on 30.0 million fully
diluted shares outstanding. The net loss included an impairment of
goodwill of $51.2 million, based on the Company’s assessment that
included the Company’s trading value during the quarter. The net loss
also included an $8.0 million loss on the sale of the Jacobs Trading
business on September 30, 2015. The Jacobs Trading business sale is
expected to result in a $33.5 million cash benefit from prior year
income taxes and a $7.0 million cash-tax benefit for 2015.
For FY-15, Liquidity Services reported revenue of $397.1 million, a
decrease of 19.9% from the prior year’s comparable period, and adjusted
EBITDA for FY-15 of $33.1 million, a decrease of 47.5% from the prior
year’s comparable period. FY-15 GMV was $799.0 million, a decrease of
14.2% from the prior year’s comparable period. Net GAAP loss in FY-15
was $104.8 million or $3.50 diluted loss per share. Adjusted net income
in FY-15 was $18.1 million or $0.60 adjusted diluted earnings per share
based on 30.0 million fully diluted shares outstanding, a decrease of
44.1% and 41.7%, respectively, from the prior year’s comparable period.
FY-15 and Q4-15 adjusted net income and adjusted EPS benefitted from our
effective tax rate benefit of 27.4% and 30.8%, respectively, which was
lower due to the adverse effects of the goodwill impairments in Q1-15
and Q4-15.
Business Outlook
In the near term it remains difficult to forecast the sales and margins
of our business, 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. Our new surplus contract with the DoD commenced
operations in October and is still undergoing contract negotiations. We
are also operating an extension of the wind-down period of our prior DoD
contract which will maintain the pricing terms of that contract for
those volumes. As we transition the contracts, the product mix and
volume we receive and sell under each contract will include a mix of
both the old and new surplus contracts during FY-16.
During the next 18 months our organization is responsible for
maintaining the ‘as-is’ business while investing in the development of
an integrated global business and marketplace platform. Our costs during
this transition process will be elevated and we will also face a drag on
productivity as we teach and implement new ways of doing business. We
will have uneven periods of financial performance as we execute our
strategy. However, what will emerge will be a much more scalable and
capable organization that is able to focus entirely on growth activities
in the global reverse supply chain.
Our FY-16 outlook remains cautious due to the changing mix and volume of
supply in our DoD and commercial business, in part due to lower
commodity prices and macro weakness in the energy and industrial
sectors. While we anticipate a benefit to earnings in FY-16 compared to
FY-15 from the sale of the Jacobs Trading business, client engagements
and the mix of property received under select retail client programs are
unpredictable. We also plan to further allocate management time and
resources to accomplish our LiquidityOne transformation program, which
may result in reduced productivity and growth that is difficult to
forecast. We anticipate incremental spending in Q1-16 for LiquidityOne
to be approximately $1 million to $2 million, with project spending
levels varying quarterly.
In the longer term, we expect our business to benefit from: (i)
innovative new service capabilities and more efficient business
operations from our LiquidityOne investment program; (ii) improved
monetization of our buyer base through the deployment of our new
integrated marketplace system and data warehouse; (iii) increased
outsourcing of reverse supply chain activities in response to our new
model and the rise of e-commerce and sustainability programs; and (iv)
increased brand recognition as a market leader due to our proven track
record, innovative scalable solutions and the ability to make a
strategic impact in the reverse supply chain.
The following forward-looking statements reflect trends and assumptions
for Q1-16:
| (i) |
increased investment spending under our LiquidityOne Transformation initiative; |
|
| (ii) |
increased costs in our DoD business which commenced operation of our new surplus contract; |
|
| (iii) |
steady results and year-over-year growth from our state and local government sector marketplace; |
|
| (iv) |
lower than average sales prices and margins realized in our energy marketplace; |
|
| (v) |
variability in the timing of large asset sales in our commercial capital assets marketplaces related to both underwritten and consignment programs; |
|
| (vi) |
lower volume in our retail goods marketplaces, including from the disposition of Jacobs Trading; and |
|
| (vii) | soft commodity prices affecting our Scrap business. | |
GMV – We expect GMV for Q1-16 to range from
$140 million to $160 million.
Adjusted EBITDA –We expect Adjusted EBITDA
for Q1-16 to range from ($2.0) million to $2.0 million.
Adjusted Diluted EPS – We estimate Adjusted
Earnings Per Diluted Share for Q1-16 to range from ($0.09) to zero. This
guidance assumes that we have an average fully diluted number of shares
outstanding for the quarter of 30.1 million and that we will not
repurchase shares with the approximately $5.1 million yet to be expended
under the share repurchase program.
Our first 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 2015.
Key Q4 and FY15 Operating Metrics
Registered Buyers — At the end of FY-15,
registered buyers totaled approximately 2,845,000, representing an
approximately 9% increase over the approximately 2,615,000 registered
buyers at the end of FY-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 2,483,000 in FY-15, an approximately
2% decrease over the approximately 2,538,000 auction participants in
FY-14. Auction participants decreased to approximately 601,000 in Q4-15,
an approximately 2% decrease over the approximately 615,000 auction
participants in Q4-14.
Completed Transactions — Completed
transactions increased to approximately 567,000, an approximately 4%
increase for FY-15 from the approximately 547,000 completed transactions
in FY-14. Completed transactions of 139,000 in Q4-15 remained flat
compared to Q4-14.
GMV and Revenue Mix —The table below
summarizes GMV and revenue by pricing model.
|
GMV Mix |
||||||||
| FY-15 | FY-14 | Q4-15 | Q4-14 | |||||
| Profit-Sharing Model: | ||||||||
| Scrap Contract | 7.6% | 7.7% | 6.9% | 7.5% | ||||
| Total Profit Sharing | 7.6% | 7.7% | 6.9% | 7.5% | ||||
| Consignment Model: | ||||||||
| GovDeals | 24.9% | 18.4% | 31.3% | 20.0% | ||||
| Commercial | 34.8% | 39.3% | 31.1% | 38.7% | ||||
| Total Consignment | 59.7% | 57.7% | 62.4% | 58.7% | ||||
| Purchase Model: | ||||||||
| Commercial | 20.4% | 20.3% | 19.2% | 20.4% | ||||
| Surplus Contract | 12.3% | 14.3% | 11.5% | 13.4% | ||||
| Total Purchase | 32.7% | 34.6% | 30.7% | 33.8% | ||||
| Total | 100.0% | 100.0% | 100.0% | 100.0% | ||||
|
Revenue Mix |
||||||||
| FY-15 | FY-14 | Q4-15 | Q4-14 | |||||
| Profit-Sharing Model: | ||||||||
| Scrap Contract | 15.3% | 14.4% | 14.8% | 14.2% | ||||
| Total Profit Sharing | 15.3% | 14.4% | 14.8% | 14.2% | ||||
| Consignment Model: | ||||||||
| GovDeals | 5.2% | 3.6% | 7.1% | 3.9% | ||||
| Commercial | 11.9% | 12.2% | 12.5% | 12.6% | ||||
| Total Consignment | 17.1% | 15.8% | 19.6% | 16.5% | ||||
| Purchase Model: | ||||||||
| Commercial | 39.4% | 37.2% | 40.7% | 38.1% | ||||
| Surplus Contract | 24.7% | 26.8% | 24.7% | 25.4% | ||||
| Total Purchase | 64.1% | 64.0% | 65.4% | 63.5% | ||||
| Other | 3.5% | 5.8% | 0.2% | 5.8% | ||||
| Total | 100.0% | 100.0% | 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,
acquisition costs, impairment of goodwill and long-lived assets,
business realignment expenses, and gains or losses from business
dispositions.
|
Three Months |
Twelve Months |
||||||||||||||
| 2015 |
2014 |
2015 |
2014 | ||||||||||||
|
(In thousands) |
|||||||||||||||
| Net (loss) income | $ | (43,695 | ) | $ | (707 | ) | $ | (104,815 | ) | $ | 30,390 | ||||
| Interest and other expense, net | 86 | 73 | 171 | 370 | |||||||||||
| (Benefit) provision for income taxes | (19,415 | ) | 1,157 | (39,571 | ) | 19,657 | |||||||||
| Amortization of contract intangibles | — | 1,816 | 1,211 | 7,265 | |||||||||||
| Depreciation and amortization | 1,994 | 1,847 | 8,024 | 9,330 | |||||||||||
| EBITDA | (61,030 | ) | 4,186 | (134,980 | ) | 67,012 | |||||||||
| Stock compensation expense | 3,494 | 3,088 | 12,405 | 12,605 | |||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
51,176 | — | 147,414 | (18,384) | |||||||||||
| Business realignment expense | 273 | 1,780 | 273 | 1,780 | |||||||||||
| Business disposition loss | 7,963 | — | 7,963 | — | |||||||||||
| Adjusted EBITDA | $ | 1,876 | $ | 9,054 | $ | 33,075 | $ | 63,013 | |||||||
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. For 2015, the tax rate
used to tax effect these items is our current rate of 27.4%. Adjusted
basic and diluted earnings per share are determined using Adjusted Net
Income.
|
Three Months Ended September |
Twelve Months Ended September |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (Unaudited) (Dollars in thousands, except per share data) | ||||||||||||||||
| Net (loss) income | $ | (43,695 | ) | $ | (707 | ) | $ | (104,815 | ) | $ | 30,390 | |||||
| Stock compensation expense (net of tax) | 2,537 | 2,164 | 9,006 | 7,654 | ||||||||||||
| Amortization of contract intangibles (net of tax) | — | 1,273 | 879 | 4,412 | ||||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
37,154 | — | 107,023 | (11,163 | ) | |||||||||||
| Business realignment expense (net of tax) | 198 | 1,248 | 198 | 1,081 | ||||||||||||
| Business disposition loss (net of tax) | 5,781 | — | 5,781 | — | ||||||||||||
| Adjusted net income | $ | 1,975 | $ | 3,978 | $ | 18,072 | $ | 32,374 | ||||||||
| Adjusted basic earnings per common share | $ | 0.07 | $ | 0.13 | $ | 0.60 | $ | 1.04 | ||||||||
| Adjusted diluted earnings per common share | $ | 0.07 | $ | 0.13 | $ | 0.60 | $ | 1.03 | ||||||||
| Basic weighted average shares outstanding | 30,026,223 | 29,664,259 | 29,987,985 | 31,243,932 | ||||||||||||
| Diluted weighted average shares outstanding | 30,026,223 | 29,664,259 | 29,987,985 | 31,395,301 | ||||||||||||
Conference Call
The Company will host a conference call to discuss the fourth quarter
and fiscal year 2015 results at 10:30 a.m. Eastern Time today. Investors
and other interested parties may access the teleconference by dialing
(866) 840-8225 or (704) 908-0457 and providing conference identification
number 14647162. 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 November 19, 2016 at 11:59 p.m. ET. An audio replay of the
teleconference will also be available until November 26, 2015 at 11:59
p.m. ET. To listen to the replay, dial (855) 859-2056 or (404) 537-3406
and provide conference identification number 14647162. Both replays will
be available starting at 1:30 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 LiquidityOne Transformation
program, the supply and mix of inventory under the DoD Surplus Contract,
expected future effective tax rates, expected future tax benefits as a
result of the sales of the Jacobs Trading business, and trends and
assumptions about future periods, including the fourth quarter FY-15 and
the full year FY-15. 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 8,000 clients worldwide. With nearly $6 billion
in completed transactions, and approximately 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 LiquidityServices.com.
|
Liquidity Services, Inc. and Subsidiaries |
|||||||
| September 30, | |||||||
| 2015 | 2014 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 95,465 | $ | 62,598 | |||
|
Accounts receivable, net of allowance for doubtful accounts of respectively |
6,194 | 21,688 | |||||
| Inventory | 25,510 | 78,478 | |||||
| Prepaid and deferred taxes | 53,394 | 16,777 | |||||
| Prepaid expenses and other current assets | 7,826 | 5,156 | |||||
| Total current assets | 188,389 | 184,697 | |||||
| Property and equipment, net | 13,356 | 12,283 | |||||
| Intangible assets, net | 4,051 | 17,099 | |||||
| Goodwill | 64,073 | 209,656 | |||||
| Deferred long-term tax assets | 5,871 | 6,160 | |||||
| Other assets | 12,748 | 1,823 | |||||
| Total assets | $ | 288,488 | $ | 431,718 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 9,500 | $ | 15,994 | |||
| Accrued expenses and other current liabilities | 27,350 | 44,484 | |||||
| Profit-sharing distributions payable | 2,512 | 4,740 | |||||
| Customer payables | 29,802 | 41,544 | |||||
| Total current liabilities | 69,164 | 106,762 | |||||
| Deferred taxes and other long-term liabilities | 3,322 | 7,973 | |||||
| Total liabilities | 72,486 | 114,735 | |||||
| Stockholders’ equity: | |||||||
|
Common stock, $0.001 par value; 120,000,000 shares authorized;
outstanding at September 30, 2015; 29,668,150 shares issued and 2014 |
29 | 28 | |||||
| Additional paid-in capital | 210,712 | 204,704 | |||||
| Accumulated other comprehensive loss | (5,626 | ) | (3,451 | ) | |||
| Retained earnings | 10,887 | 115,702 | |||||
| Total stockholders’ equity | 216,002 | 316,983 | |||||
| Total liabilities and stockholders’ equity | $ | 288,488 | $ | 431,718 | |||
|
Liquidity Services, Inc. and Subsidiaries |
||||||||||||||||
|
Three Months Ended September |
Twelve Months Ended September |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenue | $ | 63,513 | $ | 91,974 | $ | 315,668 | $ | 388,671 | ||||||||
| Fee revenue | 15,780 | 26,445 | 81,457 | 106,990 | ||||||||||||
| Total revenue | 79,293 | 118,419 | 397,125 | 495,661 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of goods sold (excluding amortization) | 33,195 | 55,139 | 166,009 | 211,659 | ||||||||||||
| Profit-sharing distributions | 4,588 | 8,372 | 28,093 | 35,055 | ||||||||||||
| Technology and operations | 23,334 | 26,829 | 99,743 | 108,940 | ||||||||||||
| Sales and marketing | 10,027 | 11,000 | 41,465 | 41,951 | ||||||||||||
| General and administrative | 10,040 | 12,893 | 41,418 | 49,428 | ||||||||||||
| Amortization of contract intangibles | — | 1,816 | 1,211 | 7,265 | ||||||||||||
| Depreciation and amortization | 1,994 | 1,847 | 8,024 | 9,330 | ||||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
51,176 | — | 147,414 | (18,384 | ) | |||||||||||
| Business disposition loss | 7,963 | — | 7,963 | — | ||||||||||||
| Total costs and expenses | 142,317 | 117,896 | 541,340 | 445,244 | ||||||||||||
| (Loss) income from operations | (63,024 | ) | 523 | (144,215 | ) | 50,417 | ||||||||||
| Interest and other expense, net | 86 | 73 | 171 | 370 | ||||||||||||
|
(Loss) income before (benefit) provision for income taxes |
(63,110 | ) | 450 | (144,386 | ) | 50,047 | ||||||||||
| (Benefit) provision for income taxes | (19,415 | ) | 1,157 | (39,571 | ) | 19,657 | ||||||||||
| Net income (loss) | $ | (43,695 | ) | $ | (707 | ) | $ | (104,815 | ) | $ | 30,390 | |||||
| Basic earnings (loss) per common share | $ | (1.46 | ) | $ | (0.02 | ) | $ | (3.50 | ) | $ | 0.97 | |||||
| Diluted earnings (loss) per common share | $ | (1.46 | ) | $ | (0.02 | ) | $ | (3.50 | ) | $ | 0.97 | |||||
| Basic weighted average shares outstanding | 30,026,223 | 29,664,259 | 29,987,985 | 31,243,932 | ||||||||||||
| Diluted weighted average shares outstanding | 30,026,223 | 29,664,259 | 29,987,985 | 31,395,301 | ||||||||||||
|
Liquidity Services, Inc. and Subsidiaries |
||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Operating activities | ||||||||||||||||
| Net (loss) income | $ | (43,695 | ) | $ | (707 | ) | $ | (104,815 | ) | $ | 30,390 | |||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
| Depreciation and amortization | 1,994 | 3,664 | 9,235 | 16,595 | ||||||||||||
| Loss on asset disposition | 7,963 | — | 7,963 | — | ||||||||||||
| Gain on early extinguishment of debt | — | — | — | — | ||||||||||||
| Change in fair value of earn out liability | — | — | — | (18,390 |
) |
|||||||||||
| Stock compensation expense | 3,494 | 3,088 | 12,405 | 12,605 | ||||||||||||
| Provision (benefit) for inventory allowance | (3,771 | ) | 49 | (8,453 | ) | 271 | ||||||||||
| Provision (benefit) for doubtful accounts | (1,925 | ) | 7 | (571 | ) | 151 | ||||||||||
| Deferred tax expense (benefit) | 15,863 | 828 | (6,282 | ) | 828 | |||||||||||
| Impairment of good will and long-lived assets | 51,176 | — | 147,414 | — | ||||||||||||
| Incremental tax benefit from exercise of common stock options | 7 | (249 | ) | 38 | (3,805 | ) | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | 4,038 | 2,612 | 14,331 | 2,211 | ||||||||||||
| Inventory | 8,491 | (9,138 | ) | 50,979 | (49,488 | ) | ||||||||||
| Prepaid and deferred taxes | (34,165 | ) | (1,130 | ) | (38,545 | ) | (2,829 | ) | ||||||||
| Prepaid expenses and other assets | (761 | ) | 1,316 | (1,499 | ) | 2,735 | ||||||||||
| Accounts payable | (5,657 | ) | 229 | (4,534 | ) | (545 | ) | |||||||||
| Accrued expenses and other | 1,878 | (5,975 | ) | (18,895 | ) | 9,659 | ||||||||||
| Profit-sharing distributions payable | (174 | ) | 1,108 | (2,228 | ) | 425 | ||||||||||
| Customer payables | (881 | ) | 9,829 | (11,742 | ) | 12,046 | ||||||||||
| Other liabilities | 71 | 1,231 | (1,310 | ) | (1,003 | ) | ||||||||||
| Net cash provided by operating activities | 3,946 | 6,762 | 43,491 | 11,856 | ||||||||||||
|
Investing activities |
||||||||||||||||
| Cash paid in divestiture | (2,372 | ) | — | (2,372 | ) | — | ||||||||||
| Increase in goodwill and intangibles and cash paid for acquisitions | (125 | ) | (102 | ) | (137 | ) | (141 | ) | ||||||||
| Purchases of property and equipment | (1,941 | ) | (1,045 | ) | (7,312 | ) | (7,539 | ) | ||||||||
| Net cash used in investing activities | (4,438 | ) | (1,147 | ) | (9,821 | ) | (7,680 | ) | ||||||||
|
Financing activities |
||||||||||||||||
| Repurchases of common stock | — | — | — | (44,873 | ) | |||||||||||
| Proceeds from exercise of common stock options (net of tax) | (1 | ) | 140 | 106 | 4,146 | |||||||||||
| Incremental tax benefit from exercise of common stock options | (7 | ) | 249 | (38 | ) | 3,805 | ||||||||||
| Net cash provided by (used in) financing activities | (8 | ) | 389 | 68 | (36,922 | ) | ||||||||||
| Effect of exchange rate differences | (223 | ) | (354 | ) | (871 | ) | 235 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (723 | ) | 5,650 | 32,867 | (32,511 | ) | ||||||||||
| Cash and cash equivalents at beginning of the period | 96,188 | 56,948 | 62,598 | 95,109 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 95,465 | $ | 62,598 | $ | 95,465 | $ | 62,598 | ||||||||
|
Supplemental disclosure of cash flow information |
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| Cash (refunded) paid for income taxes | $ | (691 | ) | $ | 1,458 | $ | 5,678 | $ | 18,108 | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151119005426/en/
Source: Liquidity Services
Liquidity Services
Julie Davis, 202-467-6868 ext. 2234
Senior
Director, Investor Relations
[email protected]
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