– Revenue of $58.0 million down 19% – Gross Merchandise Volume (GMV) of $90.6 million down 13% – Record adjusted EBITDA of $8.9 million up 9% –WASHINGTON, Aug 04, 2009 (BUSINESS WIRE) — Liquidity Services, Inc. (NASDAQ:LQDT; www.liquidityservicesinc.com)
today reported its financial results for its fiscal third quarter
(Q3-09) ended June 30, 2009. Liquidity Services, Inc. provides business
and government clients and buying customers transparent, innovative and
effective online marketplaces and integrated services for surplus assets.
Liquidity Services, Inc. (LSI or the Company) reported consolidated
Q3-09 revenue of $58.0 million, a decrease of approximately 19% from the
prior year’s comparable period. Adjusted EBITDA for Q3-09 was a record
$8.9 million, an increase of approximately 9% from the prior year’s
comparable period. Q3-09 GMV, the total sales volume of all merchandise
sold through the Company’s marketplaces, was $90.6 million, a decrease
of approximately 13% over the prior year’s comparable period.
Net income in Q3-09 was $3.4 million or $0.12 diluted earnings per
share. Adjusted net income in Q3-09 was $4.3 million, or $0.16 adjusted
diluted earnings per share. LSI generated $7.1 million of cash flow from
operations during Q3-09.
“LSI generated a sharp improvement in profitability in Q3-FY09 as we
continued to gain market share and grow our transaction volume while
managing through a very challenging economic environment and the
start-up of a major new contract with the DoD. We believe our continued
focus on driving operational efficiencies, investing in innovation and
enhancing value for our clients and buying customers positions us well
for long term profitable growth and continued market leadership,” said
Bill Angrick, Chairman and CEO of LSI.
Overall, LSI grew consolidated adjusted EBITDA during Q3-FY09 by 9% over
the prior year’s comparable period and 64% sequentially, despite a 41%
decline in our scrap business from the prior year due to a decrease in
scrap metal prices, which appear to have stabilized. Our adjusted EBITDA
growth was driven by improved operating margins, resulting in record
adjusted EBITDA margins, equal to 15.4% of revenues and 9.9% of GMV. Our
buyer marketplace continues to deliver strong results for our sellers as
we ended the quarter with over 1,152,000 registered buyers, which is up
approximately 22% over the prior year period, illustrating that our
marketplace is increasingly attractive to buyers in a down economy.
“We are pleased with the momentum in our commercial business, both in
driving operational efficiencies and enhancing the quality of our new
business pipeline in a difficult economic environment. Our commercial
business during Q3-09 was impacted by delays in commencing recently
signed new programs and the current economic downturn has impacted GMV
as retailers have reduced the volume and prices of goods sold due to
continued weak consumer spending. Even with these economic headwinds we
expanded the size of our new business pipeline and grew commercial
transaction volume by 23% during Q3-FY09 versus the prior year’s
comparable period. Our UK business suffered during Q3-09 due to the
reorganization of one of our major UK clients which led to a material
decrease in volume. Progress is underway to replace this volume. Overall
margins in our commercial business improved during the quarter driven by
superior operational throughput and improved buyer participation
compared to the same period last year. We believe the strength of our
leading B2B buyer marketplace, www.liquidation.com,
and the launch of new value added services will enable us to further
increase our market share with a world class roster of commercial
clients moving forward,” stated Angrick.
GMV in our DoD surplus business was impacted during Q3-09 as a result of
a significant inflow of property received during the quarter due to a
backlog of DoD surplus property created by the delay in the commencement
of the new contract. The high level of startup property flow constrained
our ability to launch auctions during the most recent quarter, as we
allocated additional resources to receiving product, thus slowing
down sales lotting activities.
Our GovDeals business performed well during Q3-09 recording records in
GMV, number of active sellers and completed transactions. The rollout of
our financial settlement services with municipal government agencies has
been very successful resulting in a higher overall take rate for our
auction services and improved profitability. However, GMV results were
impacted during Q3-09 by lower prices on heavy equipment and rolling
stock versus the prior year period.
Business Outlook
While we are pleased with our recent progress, our overall outlook
remains cautious due to the economic environment and its impact on the
retail supply chain. We are in a period of economic uncertainty and
unprecedented market volatility which makes it more difficult for us to
forecast business trends and the timing of selected new programs,
resulting in a wider than usual guidance range. In the short term, we
believe changes in consumer spending patterns may reduce the overall
supply of goods in the reverse supply chain and the volume and value of
goods sold in our commercial marketplace. In the longer term, we expect
our business 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 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 and demonstrated financial
strength. As we relentlessly improve operating efficiencies and service,
we expect our competitive position to strengthen.
The following forward looking statements reflect the following trends
and assumptions for the next quarter and FY 2009:
| (i) |
reduced commodity prices, which will continue to result in decreases to the GMV and profit realized in our scrap business compared to fiscal year 2008; |
||||
| (ii) |
lower average sales prices realized in our commercial, state and local government marketplaces compared to fiscal year 2008; |
||||
| (iii) |
new business rules under our new DoD Surplus Contract, which will remove selected items from the product pool that we have historically handled and sold, resulting in lower GMV in our surplus business; |
||||
| (iv) |
upfront costs associated with launching our new DoD Surplus Contract, including the hiring of new staff and the opening of two new warehouses totaling 665,000 square feet in Columbus, Ohio and Oklahoma City, Oklahoma; |
||||
| (v) |
our expectation that we will continue to achieve less than optimal sales volumes under our new Surplus Contract in the fourth quarter of fiscal 2009, as we continue to process the initial surge of property; |
||||
| (vi) |
the continued sale throughout the fourth quarter of property issued, prior to December 18, 2008, under our original Surplus Contract; |
||||
| (vii) |
improved operations and service levels in our commercial business which we expect will continue to improve margins during the fourth quarter; |
||||
| (viii) |
our expectation that we will achieve less than optimal results in our U.K. business in the near term as we replace the lost volume from one of our major U.K. clients, which restructured their business; and |
||||
| (ix) |
an increase in our expected effective income tax rate from 43% in fiscal year 2008 to 46% for fiscal year 2009 as a result of non-deductible stock based compensation costs increasing in proportion to our U.S. based taxable income. |
Our results may also be materially affected by changes in business
trends and our operating environment, and by other factors, such as,
investments in infrastructure and value-added services to support new
business in both commercial and public sector markets.
Our Scrap Contract with the DoD 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 earned approximately
$975,000 under this incentive feature for the 12 months ended June 30,
2009 and we recorded this amount in the quarter ended June 30, 2009.
GMV – We expect GMV for fiscal
year 2009 to range from $350 million to $360 million, which is down from
our previous estimate of $355 million to $370 million. We expect GMV for
Q4-09 to range from $86 million to $96 million.
Adjusted EBITDA – We expect
Adjusted EBITDA for fiscal year 2009 to range from $23.0 million to
$24.5 million, which is within the range of our previous estimate. We
expect Adjusted EBITDA for Q4-09 to range from $6.5 million to $8.0
million.
Adjusted Diluted EPS – We estimate
Adjusted Earnings Per Diluted Share for fiscal year 2009 to range from
$0.38 to $0.40, which is down from our previous estimate of $0.45 to
$0.47. For Q4-09, we estimate Adjusted Earnings Per Diluted Share to be
$0.10 to $0.13. This guidance reflects the impact of higher than
anticipated depreciation in the second half of FY09 due to recent
investments made in our technology infrastructure and online
marketplaces, lower than anticipated interest income compared to the
previous guidance and our stock repurchase program under which we
repurchased 707,462 shares for approximately $3.9 million, during the
second quarter; however it does not assume that we will continue to
repurchase shares with the approximately $6.1 million yet to be expended
under the program.
Our guidance adjusts EBITDA and Diluted EPS for the effects of FAS
123(R), which we estimate to be approximately $1.6 million to $1.7
million for the fourth quarter.
Key Q3-09 Operating Metrics
Registered Buyers — At the end of
Q3-09, registered buyers totaled approximately 1,152,000, representing a
22% increase over the approximately 948,000 registered buyers at the end
of Q3-08.
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), increased to approximately 548,000 in Q3-09, an approximately 10%
increase over the approximately 499,000 auction participants in Q3-08.
Completed Transactions — Completed
transactions increased to a record approximately 121,000, an
approximately 12% increase for Q3-09 from the approximately 108,000
completed transactions in Q3-08.
GMV and Revenue Mix — GMV and
revenue continue to diversify, as a result, the percentage of GMV and
revenue derived from our DoD Contracts during Q3-09 decreased to 34.9%
and 54.4%, respectively, compared to 42.6% and 62.2%, respectively, in
the prior year period. The table below summarizes GMV and revenue by
pricing model.
|
GMV Mix |
Q3-09 | Q3-08 | ||
| Profit-Sharing Model: | ||||
| Original Surplus Contract | 6.3% | 20.4% | ||
| Scrap | 15.2% | 22.2% | ||
| Total Profit Sharing | 21.5% | 42.6% | ||
| Consignment Model: | ||||
| GovDeals | 23.1% | 20.0% | ||
| Commercial – US | 20.3% | 17.7% | ||
|
Total Consignment |
43.4% | 37.7% | ||
| Purchase Model: | ||||
| Commercial – US | 18.0% | 15.3% | ||
| New Surplus Contract | 13.4% | — | ||
| Commercial – International | 2.7% | 2.8% | ||
| Total Purchase | 34.1% | 18.1% | ||
| Other | 1.0% | 1.6% | ||
| Total | 100.0% | 100.0% | ||
|
Revenue Mix |
||||
| Profit-Sharing Model: | ||||
| Original Surplus Contract | 9.8% | 29.8% | ||
| Scrap | 23.7% | 32.4% | ||
| Total Profit Sharing | 33.5% | 62.2% | ||
| Consignment Model: | ||||
| GovDeals | 2.9% | 2.1% | ||
| Commercial – US | 8.3% | 5.9% | ||
| Total Consignment | 11.2% | 8.0% | ||
| Purchase Model: | ||||
| Commercial – US | 28.1% | 22.3% | ||
| New Surplus Contract | 20.9% | — | ||
| Commercial – International | 4.2% | 4.1% | ||
| Total Purchase | 53.2% | 26.4% | ||
| Other | 2.1% | 3.4% | ||
| Total | 100.0% | 100.0% | ||
Liquidity Services, Inc.
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 less (a) interest income and other income, net; plus
(b) provision for income taxes; (c) amortization of contract
intangibles; and (d) depreciation and amortization. Our definition of
Adjusted EBITDA differs from EBITDA because we further adjust EBITDA for
stock based compensation expense.
|
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (in thousands) (unaudited) | ||||||||||||||||
| Net income | $ |
3,400 |
$ | 3,847 | $ | 5,077 | $ | 8,857 | ||||||||
| Interest income and other income, net | (32 | ) | (292 | ) | (359 | ) | (1,402 | ) | ||||||||
| Provision for income taxes | 2,896 | 2,672 | 4,325 | 6,176 | ||||||||||||
| Amortization of contract intangibles | 203 | 203 | 610 | 610 | ||||||||||||
| Depreciation and amortization | 828 | 584 | 2,144 | 1,436 | ||||||||||||
| EBITDA | 7,295 | 7,014 | 11,797 | 15,677 | ||||||||||||
| Stock compensation expense | 1,652 | 1,177 | 4,702 | 3,440 | ||||||||||||
| Adjusted EBITDA | $ | 8,947 | $ | 8,191 | $ | 16,499 | $ | 19,117 | ||||||||
To the extent we discuss Adjusted EBITDA margin, we calculated this
margin by dividing Adjusted EBITDA into Revenue for the period discussed.
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 plus
tax effected stock compensation expense. Adjusted basic and diluted
earnings per share are determined using Adjusted Net Income.
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| (Unaudited) (Dollars in thousands, except per share data) | ||||||||||||
| Net income | $ | 3,400 | $ | 3,847 | $ | 5,077 | $ | 8,857 | ||||
| Stock compensation expense (net of tax) | 892 | 695 | 2,539 | 2,030 | ||||||||
| Adjusted net income | $ | 4,292 | $ | 4,542 | $ | 7,616 | $ | 10,887 | ||||
| Adjusted basic earnings per common share | $ | 0.16 | $ | 0.16 | $ | 0.28 | $ | 0.39 | ||||
| Adjusted diluted earnings per common share | $ | 0.16 | $ | 0.16 | $ | 0.28 | $ | 0.39 | ||||
| Basic weighted average shares outstanding | 27,464,177 | 27,964,662 | 27,755,997 | 27,953,526 | ||||||||
| Diluted weighted average shares outstanding | 27,556,616 | 28,237,150 | 27,851,652 | 28,201,988 | ||||||||
Conference Call
The Company will host a conference call to discuss the third quarter
fiscal 2009 results at 5 p.m. Eastern Time today. Investors and other
interested parties may access the teleconference by dialing 866-831-6247
or 617-213-8856 and providing the participant pass code 98315163. A live
web cast of the conference call will be provided on the Company’s
investor relations website at http://www.liquidityservicesinc.com.
A replay of the web cast will be available on the Company’s website for
30 calendar days ending September 4, 2009 at 11:59 p.m. ET. An audio
replay of the teleconference will also be available until September 4,
2009 at 11:59 p.m. ET. To listen to the replay, dial 888-286-8010 or
617-801-6888 and provide pass code 30295723. Both replays will be
available starting at 8:00 p.m. 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 non-GAAP measures included in
this press release, to the most directly comparable GAAP measures, can
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. 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; and our ability to successfully complete the integration of
any acquired companies into our existing operations. 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 LSI
LSI enables buyers and sellers to transact in an efficient, automated
online auction environment. The Company’s marketplaces provide
professional buyers access to a global, organized supply of wholesale
surplus and salvage assets presented with digital images and other
relevant product information. Additionally, LSI enables its corporate
and government sellers to enhance their financial return on excess
assets by providing a liquid marketplace and value-added services that
are integrated into a single offering. The Company organizes its
products into categories across major industry verticals such as
consumer electronics, general merchandise, apparel, scientific
equipment, aerospace parts and equipment, technology hardware, and scrap
metals. The Company’s online auction marketplaces are www.liquidation.com,
www.govliquidation.com,
www.govdeals.com
and www.liquibiz.com.
LSI also operates a wholesale industry portal, www.goWholesale.com,
that connects advertisers with buyers seeking products for resale and
related business services.
| Liquidity Services, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Dollars in Thousands) | ||||||||
| June 30, | September 30, | |||||||
| 2009 | 2008 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 39,454 | $ | 51,954 | ||||
| Short-term investments | 21,879 | 11,244 | ||||||
|
Accounts receivable, net of allowance for doubtful accounts of $465 and $519 at June 30, 2009 and September 30, 2008, respectively |
3,724 | 4,658 | ||||||
| Inventory | 13,333 | 13,327 | ||||||
| Prepaid expenses, deferred taxes and other current assets | 10,014 | 7,653 | ||||||
| Total current assets | 88,404 | 88,836 | ||||||
| Property and equipment, net | 5,979 | 4,730 | ||||||
| Intangible assets, net | 4,327 | 5,561 | ||||||
| Goodwill | 33,839 | 34,696 | ||||||
| Other assets | 3,647 | 3,344 | ||||||
| Total assets | $ | 136,196 | $ | 137,167 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,656 | $ | 8,303 | ||||
| Accrued expenses and other current liabilities | 15,666 | 10,314 | ||||||
| Profit-sharing distributions payable | 3,238 | 10,312 | ||||||
| Customer payables | 6,217 | 8,841 | ||||||
| Current portion of capital lease obligations | 53 | 22 | ||||||
| Total current liabilities | 30,830 | 37,792 | ||||||
| Capital lease obligations, net of current portion | 99 | 44 | ||||||
| Deferred taxes and other long-term liabilities | 3,219 | 2,961 | ||||||
| Total liabilities | 34,148 | 40,797 | ||||||
| Stockholders’ equity: | ||||||||
|
Common stock, $0.001 par value; 120,000,000 shares authorized; 28,210,965 shares issued and 27,503,503 shares outstanding at June 30, 2009; 28,023,361 shares issued and outstanding at September 30, 2008 |
28 | 28 | ||||||
| Additional paid-in capital | 71,684 | 65,973 | ||||||
| Treasury stock, at cost | (3,874 | ) | — | |||||
| Accumulated other comprehensive loss | (2,953 | ) | (1,717 | ) | ||||
| Retained earnings | 37,163 | 32,086 | ||||||
| Total stockholders’ equity | 102,048 | 96,370 | ||||||
| Total liabilities and stockholders’ equity | $ | 136,196 | $ | 137,167 | ||||
| Liquidity Services, Inc. and Subsidiaries | ||||||||||||||||
| Unaudited Consolidated Statements of Operations | ||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Revenue | $ | 58,045 | $ | 71,473 | $ | 173,363 | $ | 193,579 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of goods sold (excluding amortization) | 20,688 | 19,552 | 61,980 | 51,117 | ||||||||||||
| Profit-sharing distributions | 8,094 | 24,200 | 34,231 | 67,636 | ||||||||||||
| Technology and operations | 11,413 | 10,411 | 35,019 | 30,689 | ||||||||||||
| Sales and marketing | 4,398 | 4,469 | 13,303 | 12,519 | ||||||||||||
| General and administrative | 6,158 | 5,827 | 17,033 | 15,941 | ||||||||||||
| Amortization of contract intangibles | 203 | 203 | 610 | 610 | ||||||||||||
| Depreciation and amortization | 828 | 584 | 2,144 | 1,436 | ||||||||||||
| Total costs and expenses | 51,782 | 65,246 | 164,320 | 179,948 | ||||||||||||
| Income from operations | 6,263 | 6,227 | 9,043 | 13,631 | ||||||||||||
| Interest income and other income, net | 33 | 292 | 359 | 1,402 | ||||||||||||
| Income before provision for income taxes | 6,296 | 6,519 | 9,402 | 15,033 | ||||||||||||
| Provision for income taxes | (2,896 | ) | (2,672 | ) | (4,325 | ) | (6,176 | ) | ||||||||
| Net income | $ | 3,400 | $ | 3,847 | $ | 5,077 | $ | 8,857 | ||||||||
| Basic earnings per common share | $ | 0.12 | $ | 0.14 | $ | 0.18 | $ | 0.32 | ||||||||
| Diluted earnings per common share | $ | 0.12 | $ | 0.14 | $ | 0.18 | $ | 0.32 | ||||||||
| Basic weighted average shares outstanding | 27,464,177 | 27,964,662 | 27,755,997 | 27,953,526 | ||||||||||||
| Diluted weighted average shares outstanding | 27,556,616 | 28,237,150 | 27,851,652 | 28,201,988 | ||||||||||||
| Liquidity Services, Inc. and Subsidiaries | ||||||||||||||||
| Unaudited Consolidated Statements of Cash Flows | ||||||||||||||||
| (In Thousands) | ||||||||||||||||
|
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Operating activities | ||||||||||||||||
| Net income | $ | 3,400 | $ | 3,847 | $ | 5,077 | $ | 8,857 | ||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
| Depreciation and amortization | 1,031 | 787 | 2,754 | 2,046 | ||||||||||||
| Stock compensation expense | 1,652 | 1,177 | 4,702 | 3,440 | ||||||||||||
| Provision for doubtful accounts | 265 | 100 | (54 | ) | (64 | ) | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (308 | ) | (146 | ) | 988 | 1,846 | ||||||||||
| Inventory | (249 | ) | 1,598 | (7 | ) | 1,304 | ||||||||||
| Prepaid expenses and other assets | (1,957 | ) | (156 | ) | (2,664 | ) | (1,975 | ) | ||||||||
| Accounts payable | (213 | ) | 1,354 | (2,647 | ) | 3,200 | ||||||||||
| Accrued expenses and other | 5,115 | 33 | 5,352 | (4,537 | ) | |||||||||||
| Profit-sharing distributions payable | (1,295 | ) | (1,494 | ) | (7,074 | ) | 1,096 | |||||||||
| Customer payables | (709 | ) | (1,534 | ) | (2,623 | ) | 1,358 | |||||||||
| Other liabilities | 377 | (65 | ) | 257 | 8 | |||||||||||
| Net cash provided by operating activities | 7,109 | 5,501 | 4,061 | 16,579 | ||||||||||||
| Investing activities | ||||||||||||||||
| Purchases of short-term investments | (6,741 | ) | (557 | ) | (20,655 | ) | (25,307 | ) | ||||||||
| Proceeds from the sale of short-term investments | 4,615 | 21,755 | 10,015 | 46,043 | ||||||||||||
| Increase in goodwill and intangibles | (75 | ) | (18 | ) | (161 | ) | (41 | ) | ||||||||
| Cash paid for acquisitions, net of cash acquired | — | (16,238 | ) | — | (25,627 | ) | ||||||||||
| Purchases of property and equipment | (984 | ) | (488 | ) | (2,764 | ) | (1,242 | ) | ||||||||
| Net cash (used in) provided by investing activities | (3,185 | ) | 4,454 | (13,565 | ) | (6,174 | ) | |||||||||
| Financing activities | ||||||||||||||||
| Principal repayments of capital lease obligations and debt | (3 | ) | — | (13 | ) | (46 | ) | |||||||||
|
Proceeds from exercise of common stock options and warrants (net of tax) |
767 | 14 | 949 | 107 | ||||||||||||
| Incremental tax benefit from exercise of common stock options | 20 | 15 | 59 | 18 | ||||||||||||
| Repurchases of common stock | — | — | (3,874 | ) | — | |||||||||||
| Net cash provided by (used in) financing activities | 784 | 29 | (2,879 | ) | 79 | |||||||||||
| Effect of exchange rate differences on cash and cash equivalents | 542 | 195 | (116 | ) | 184 | |||||||||||
| Net increase (decrease) in cash and cash equivalents | 5,250 | 10,179 | (12,499 | ) | 10,668 | |||||||||||
| Cash and cash equivalents at beginning of the period | 34,204 | 40,443 | 51,954 | 39,954 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 39,454 | $ | 50,622 | $ | 39,454 | $ | 50,622 | ||||||||
| Supplemental disclosure of cash flow information | ||||||||||||||||
| Cash paid for income taxes | $ | 4,232 | $ | 2,245 | $ | 7,128 | $ | 9,384 | ||||||||
| Cash paid for interest | 11 | 11 | 40 | 20 | ||||||||||||
| Assets acquired under capital leases | 100 | — | 100 | — | ||||||||||||
SOURCE: Liquidity Services, Inc.
Liquidity Services, Inc.
Julie Davis
Director, Investor Relations
202-558-6234
[email protected]
Comments are closed.