-
Fourth Quarter GMV of $159.1 million – Revenue of $78.5 million –
Net GAAP Loss of $53.8 million - Non-GAAP Adjusted EBITDA of $(0.7) million
-
Fiscal Year GMV of $642.1 million – Revenue of $316.5 million – Net
GAAP Loss of $59.9 million - Non-GAAP Adjusted EBITDA of $3.7 million
-
Net GAAP Loss includes $19.0 million goodwill impairment and $35.8
million income tax valuation allowance charge -
IronDirect.com marketplace targeting construction vertical launched
on new LiquidityOne e-commerce platform
WASHINGTON–(BUSINESS WIRE)–Nov. 17, 2016–
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 announced financial
results for the fourth quarter and fiscal year 2016 ended September 30,
2016. Q4-16 results were within the company’s guidance range for GMV and
above the guidance range for Non-GAAP Adjusted EBITDA and Non-GAAP
Adjusted Diluted EPS. As a result of a non-cash goodwill impairment and
a valuation allowance on deferred tax assets, GAAP Net Income and GAAP
Diluted EPS were below the guidance range.
“We delivered solid financial results during Q4-16 with better than
expected bottom line results driven by improved pricing in our scrap and
energy marketplaces and higher service revenues,” said Bill Angrick,
Chairman and CEO of Liquidity Services. “Compared to the prior year, our
energy marketplace (NetworkIntl.com)
GMV was up 45%, our municipal government business (GovDeals.com)
GMV was up 13%, and our retail (Liquidation.com)
and industrial (Go-Dove.com)
marketplaces experienced growth within key client accounts. Our DoD
marketplace (GovLiquidation.com)
GMV was down 12% reflecting lower volumes and a less favorable product
mix. We expanded the scope of our e-commerce offerings by launching our
new IronDirect marketplace in September which enables global fleet
customers and end users to purchase new heavy equipment, attachments,
undercarriage parts and accessories from proven suppliers in the global
construction industry. With the deployment of our first marketplace on
our new e-commerce platform in Q4-16, we have continued to advance our
LiquidityOne transformation initiative and demonstrated the potential of
our platform investments to capture new market opportunities. We expect
to deploy our next marketplace in the spring of FY17 followed by phased
rollouts thereafter,” continued Mr. Angrick.
“Our strategy remains focused on the long term growth of our commercial
and municipal government marketplaces on a global scale. Our ongoing
investment in top talent and the deployment of our new LiquidityOne
platform will enable us to deliver more value to more customers and
scale more efficiently. We expect to resume organic top line growth in
our commercial and municipal government marketplaces in FY17 fueled by
growth in our buyer network, investments in our sales channels,
expansion of our service offerings, and the phased release of our new
e-commerce platform,” Mr. Angrick continued. “Our near term outlook
reflects the normalization of our DoD programs under new contract
pricing, investments to deploy our LiquidityOne platform, and new
go-to-market programs for our commercial and municipal government
businesses, including in new areas such as IronDirect. We expect these
investments will drive long term growth and that our results will
strengthen over the course of FY17 as we grow our business.”
Fourth Quarter Operating and Earnings Results
The company reported Q4-16 GMV, an operating measure of the total sales
value of all merchandise sold through our marketplaces during the given
period, of $159.1 million, a decrease of 6.8% from the prior year’s
comparable period. Revenue for Q4-16 was $78.5 million, a decrease of
1.0% from the prior year’s comparable period. Net GAAP loss for Q4-16
was $53.8 million, which resulted in diluted loss per share of $1.75
based on a weighted average of 30.7 million diluted shares outstanding,
representing a decrease of 23.0% and 20.2% respectively from the prior
year’s comparable period. The net loss reflects a goodwill impairment
charge of $19.0 million and a valuation allowance charge against the
deferred tax assets of $35.8 million. The goodwill impairment was due to
updated assumptions used in the fair value calculation. The valuation
allowance is attributable to recent losses.
Non-GAAP adjusted net income decreased to $(0.6) million from $2.0
million in the prior year’s comparable period. Adjusted diluted earnings
per share decreased to $(0.02) from $0.07 in the prior year’s comparable
period. Non-GAAP adjusted EBITDA, which excludes stock-based
compensation, acquisition costs, impairment of goodwill and long-lived
assets, and gains or losses from business dispositions, decreased to
$(0.7) million from $1.9 million in the prior year’s comparable period.
We exited Q4-16 with $134.5 million in cash and a debt free balance
sheet.
Comparative financial results reflect the sale of Jacobs Trading, the
significant downturn in commodity prices which have reduced prices and
volume from our DoD scrap contract, the transition to the new DoD
Surplus contract with higher product cost terms, and increased
investment in our LiquidityOne transformation plan.
Fiscal Year Operating and Earnings Results
The company reported FY-16 GMV of $642.1 million, a decrease of 19.6%
from the prior year’s comparable period. Revenue for FY-16 was $316.5
million, a decrease of 20.3% from the prior year’s comparable period.
Net GAAP loss for FY-16 was $59.9 million, which resulted in diluted
loss per share of $1.96 based on a weighted average of 30.6 million
diluted shares outstanding, representing increases of 42.8% and 44.0%,
respectively, from the prior year’s comparable period. The net loss
reflects the goodwill impairment charge and valuation allowance charge
taken in Q4-FY16.
Non-GAAP adjusted net income decreased to $(0.6) million from $18.1
million in the prior year’s comparable period. Adjusted diluted earnings
per share decreased to $(0.02) from $0.60 in the prior year’s comparable
period. Non-GAAP adjusted EBITDA was $3.7 million, a decrease of 88.9%
from the prior year’s comparable period.
Additional Fourth Quarter and Fiscal Year 2016 Operational Results
-
Registered Buyers — At the end of FY-16,
registered buyers totaled approximately 2,986,000, representing an
approximately 5% increase over the approximately 2,845,000 registered
buyers at the end of FY-15. -
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 2,417,000 in FY-16, an
approximately 3% decrease over the approximately 2,483,000 auction
participants in FY-15. -
Completed Transactions — Completed
transactions increased to approximately 574,000, an approximately 1%
increase for FY-16 from the approximately 567,000 completed
transactions in FY-15.
GMV and Revenue Mix —The table below
summarizes GMV and revenue by pricing model.
|
GMV Mix |
|||||||||
| Q4-FY16 | Q4-FY15 | FY16 | FY15 | ||||||
| Consignment Model: | |||||||||
| GovDeals | 38.0% | 31.3% | 35.3% | 24.9% | |||||
| Commercial | 30.8% | 31.5% | 29.3% | 34.8% | |||||
|
Total Consignment |
68.8% | 62.8% | 64.6% | 59.7% | |||||
| Purchase Model: | |||||||||
| Commercial | 14.0% | 18.8% | 17.7% | 20.4% | |||||
| Surplus Contract | 11.6% | 11.5% | 12.7% | 12.3% | |||||
| Total Purchase | 25.6% | 30.3% | 30.4% | 32.7% | |||||
| Other: | 5.6% | 6.9% | 5.0% | 7.6% | |||||
| Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||
|
Revenue Mix |
|||||||||
| Q4-FY16 | Q4-F15 | FY16 | FY15 | ||||||
| Consignment Model: | |||||||||
| GovDeals | 7.3% | 7.1% | 7.2% | 5.2% | |||||
| Commercial | 14.9% | 12.5% | 13.7% | 11.9% | |||||
| Total Consignment | 22.2% | 19.6% | 20.9% | 17.1% | |||||
| Purchase Model: | |||||||||
| Commercial | 35.4% | 40.7% | 37.9% | 39.4% | |||||
| Surplus Contract | 23.6% | 24.7% | 25.8% | 24.7% | |||||
| Total Purchase | 59.0% | 65.4% | 63.7% | 64.1% | |||||
| Other: | 18.8% | 15.0% | 15.4% | 18.8% | |||||
| Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||
Business Outlook
FY17 results are expected to benefit from growth in our commercial and
municipal government marketplaces. Profitability for the year will be
impacted by the normalization of our DoD programs under new contract
pricing and investments to deploy our new LiquidityOne e-commerce
platform and go-to-market programs for our commercial and municipal
government marketplaces, including in new areas such as IronDirect. We
anticipate completing the second phase of our marketplace rollout onto
the new platform in the spring of 2017 followed by a tiered rollout of
the remaining marketplaces which will carry over into 2018.
The following forward-looking statements reflect the following trends
and assumptions for Q1-FY17:
| (i) |
continued investment spending under our LiquidityOne transformation initiative; |
|||
| (ii) |
increased cost of sales and lower volume and margins under our new DoD Surplus contract; |
|||
| (iii) |
seasonally lower volumes in our municipal government marketplace and steady year-over-year growth expected; |
|||
| (iv) |
continued signs of improved liquidity in our energy marketplace but continuing lower than average sales prices and margins; |
|||
| (v) |
strong deal flow in our commercial capital assets marketplaces related to both underwritten and consignment programs; |
|||
| (vi) |
investments in our sales teams to further accelerate new and expanded client relationships; |
|||
| (vii) | growth in core accounts in our retail business; | |||
| (viii) | growth in core accounts in our IronDirect marketplace; and | |||
| (ix) |
increased cost of sales and lower margins under our new DoD Scrap contract, and continued variability in commodities pricing, volumes received, and mix of meta |
ls. | ||
For Q1-17 our guidance is as follows:
GMV – We expect GMV for Q1-17 to range from
$150 million to $170 million.
GAAP Net Loss – We expect GAAP Net Income
Loss for Q1-17 to range from $(13.0) million to $(10.0) million.
GAAP Diluted EPS – We expect GAAP diluted
Loss Per Share for Q1-17 to range from $(0.41) to $(0.31).
Non-GAAP Adjusted EBITDA –We estimate
non-GAAP Adjusted EBITDA for Q1-17 to range from $(8.5) million to
$(5.5) million.
Non-GAAP Adjusted Diluted EPS – We estimate
non-GAAP Adjusted Loss Per Diluted Share for Q1-17 to range from $(0.31)
to $(0.22). This guidance assumes that we have diluted weighted average
number of shares outstanding for the quarter of 31.8 million and that we
will not repurchase shares with the approximately $10.1 million
available under the share repurchase program.
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 (loss)
income plus interest and other expense, net; benefit for income taxes;
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 |
|||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| (In thousands) | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Net loss | $ | (53,755 | ) | $ | (43,695 | ) | $ | (59,926 | ) | $ | (104,815 | ) | ||||||
| Interest and other (income) expense, net | (975 | ) | 86 | (1,217 | ) | 171 | ||||||||||||
| Provision (Benefit) from income taxes | 29,463 | (19,415 | ) | 27,025 | (39,571 | ) | ||||||||||||
| Depreciation and amortization | 1,554 | 1,994 | 6,502 | 9,235 | ||||||||||||||
| EBITDA | (23,713 | ) | (61,030 | ) | (27,616 | ) | (134,980 | ) | ||||||||||
| Stock compensation expense | 4,019 | 3,494 | 12,247 | 12,405 | ||||||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
18,998 | 51,176 | 19,037 | 147,414 | ||||||||||||||
| Business realignment expense | — | 273 | — | 273 | ||||||||||||||
| Business disposition loss | — | 7,963 | — | 7,963 | ||||||||||||||
| Adjusted EBITDA | $ | (696 | ) | $ | 1,876 | $ | 3,668 | $ | 33,075 | |||||||||
Adjusted Net (Loss) 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 (Loss)
Income. For Q4-16 and FY16, the tax rate used to tax effect stock
compensation expense, amortization of contract intangibles and
acquisition costs was 24.7% which is the FY16 tax rate adjusted
exclusive of the impact of the valuation allowance.
| Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| (Unaudited) (Dollars in thousands, except per share data) | |||||||||||||||||
| Net loss | $ | (53,755 | ) | $ | (43,695 | ) | $ | (59,926 | ) | $ | (104,815 | ) | |||||
| Stock compensation expense (net of tax) | 3,026 | 2,537 | 9,222 | 9,006 | |||||||||||||
| Amortization of contract intangibles (net of tax) | — | — | — | 879 | |||||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets (net of tax) |
14,305 | 37,154 | 14,335 | 107,023 | |||||||||||||
| Business realignment expense (net of tax) | — | 198 | — | 198 | |||||||||||||
| Business disposition loss (net of tax) | — | 5,781 | — | 5,781 | |||||||||||||
| Valuation allowance | 35,786 | — | 35,786 | — | |||||||||||||
| Adjusted net (loss) income | $ | (638 | ) | $ | 1,975 | $ | (583 | ) | $ | $18,072 | |||||||
| Adjusted basic (loss) earnings per common share | $ | (0.02 | ) | $ | 0.07 | $ | (0.02 | ) | $ | $0.60 | |||||||
| Adjusted diluted (loss) earnings per common share | $ | (0.02 | ) | $ | 0.07 | $ | (0.02 | ) | $ | $0.60 | |||||||
| Basic weighted average shares outstanding | 30,740,977 | 30,026,223 | 30,638,163 | 29,987,985 | |||||||||||||
| Diluted weighted average shares outstanding | 30,740,977 | 30,026,223 | 30,638,163 | 29,987,985 | |||||||||||||
Conference Call
The Company will host a conference call to discuss the fourth quarter
and fiscal year 2016 results at 10:30 a.m. Eastern Time today. Investors
and other interested parties may access the teleconference by dialing
(844) 795-4614 or (661) 378-9639 and providing conference identification
number 8864712. 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 17, 2017 at 11:59 p.m. ET. An audio replay of the
teleconference will also be available until November 24, 2016 at 11:59
p.m. ET. To listen to the replay, dial (855) 859-2056 or (404) 537-3406
and provide conference identification number 8864712. 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 generally accepted accounting principles (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. Adjusted net income is used to arrive at EBITDA and adjusted
EBITDA calculations, and adjusted EPS is the result of our adjusted net
income and diluted shares outstanding.
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 GAAP, 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 GAAP, 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, including prospects for its new IronDirect
platform, plans to increase investments in technology infrastructure,
the Company’s proprietary e-commerce marketplace platform, product
development and marketing initiatives, expected investment in, benefits
of and timing of completion of the LiquidityOne transformation
initiative, the supply and mix of inventory under the DoD Surplus and
Scrap Contracts, expected future commodity prices, expected sales prices
and margins in the Company’s energy marketplaces, expected future
effective tax rates, and trends and assumptions about future periods,
including the first quarter FY-17. 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; variability in mix and volume of supply due to project
based activity; variability in business related to mix, timing, and
volume of supply; timing and speed of recovery in the energy sector
macro conditions and commodity market prices; intense competition in our
lines of business; 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 develop and grow our new
business ventures such as IronDirect and our retail TruckCenter channel;
our ability to attract and retain key employees; our ability to raise
additional capital as and when required; the success of our recent
business realignment in which we balance management time and resource to
run our business with migrating our marketplaces to the new LiquidityOne
platform; and the success of our LiquidityOne transformation initiative,
including training and education of customers to adopt our new
LiquidityOne platform. 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 (NASDAQ: LQDT) employs innovative e-commerce
marketplace solutions to manage, value and sell inventory and equipment
for business and government clients. The company operates a network of
leading e-commerce marketplaces that enable buyers and sellers to
transact in an efficient, automated environment offering over 500
product categories. 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 commerce
solutions. Visit us at LiquidityServices.com.
| Liquidity Services, Inc. and Subsidiaries | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (Dollars in Thousands) | ||||||||||
| September 30, | ||||||||||
| 2016 | 2015 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 134,513 | $ | 95,465 | ||||||
|
Accounts receivable, net of allowance for doubtful accounts of $718 and $471 in 2016 and 2015, respectively |
10,355 | 6,194 | ||||||||
| Inventory | 27,610 | 25,510 | ||||||||
| Tax refund receivable | 1,205 | 33,491 | ||||||||
| Prepaid and deferred taxes | 2,166 | 19,903 | ||||||||
| Prepaid expenses and other current assets | 9,063 | 7,826 | ||||||||
| Total current assets | 184,912 | 188,389 | ||||||||
| Property and equipment, net | 14,376 | 13,356 | ||||||||
| Intangible assets, net | 2,650 | 4,051 | ||||||||
| Goodwill | 45,134 | 64,073 | ||||||||
| Deferred long-term tax assets | 1,021 | 5,871 | ||||||||
| Other assets | 12,016 | 12,748 | ||||||||
| Total assets | $ | 260,109 | $ | 288,488 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 9,732 | $ | 9,500 | ||||||
| Accrued expenses and other current liabilities | 45,133 | 27,350 | ||||||||
| Profit-sharing distributions payable | 1,722 | 2,512 | ||||||||
| Customer payables | 28,901 | 29,802 | ||||||||
|
Total current liabilities |
85,488 | 69,164 | ||||||||
| Long-term liabilities | 12,010 | 3,322 | ||||||||
| Total liabilities | 97,498 | 72,486 | ||||||||
| Stockholders’ equity: | ||||||||||
|
Common stock, $0.001 par value; 120,000,000 shares authorized; |
29 | 29 | ||||||||
| Additional paid-in capital | 220,192 | 210,712 | ||||||||
| Accumulated other comprehensive loss | (8,571 | ) | (5,626 | ) | ||||||
| Retained earnings | (49,039 | ) | 10,887 | |||||||
| Total stockholders’ equity | 162,611 | 216,002 | ||||||||
| Total liabilities and stockholders’ equity | $ | 260,109 | $ | 288,488 | ||||||
| Liquidity Services, Inc. and Subsidiaries | |||||||||||||||||
| Unaudited Consolidated Statements of Operations | |||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | |||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| (Unaudited) | |||||||||||||||||
| Revenue | $ | 55,195 | $ | 63,513 | $ | 233,828 | $ | 315,668 | |||||||||
| Fee revenue | 23,318 | 15,780 | 82,626 | 81,457 | |||||||||||||
|
Total revenue |
78,513 | 79,293 | 316,454 | 397,125 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of goods sold (excluding amortization) | 37,025 | 33,195 | 143,127 | 166,009 | |||||||||||||
| Profit-sharing distributions | 3,688 | 4,588 | 11,214 | 28,093 | |||||||||||||
| Technology and operations | 23,379 | 23,334 | 93,405 | 99,743 | |||||||||||||
| Sales and marketing | 8,995 | 10,027 | 37,570 | 41,465 | |||||||||||||
| General and administrative | 10,141 | 10,040 | 39,717 | 41,418 | |||||||||||||
| Depreciation and amortization | 1,554 | 1,994 | 6,502 | 9,235 | |||||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
18,998 | 51,176 | 19,037 | 147,414 | |||||||||||||
| Business disposition loss | — | 7,963 | — | 7,963 | |||||||||||||
| Total costs and expenses | 103,780 | 142,317 | 350,572 | 541,340 | |||||||||||||
| Loss from operations | (25,267 | ) | (63,024 | ) | (34,118 | ) | (144,215 | ) | |||||||||
| Interest and other income (expense), net | 975 | (86 | ) | 1,217 | (171 | ) | |||||||||||
| Loss before provision (benefit) for income taxes | (24,292 | ) | (63,110 | ) | (32,901 | ) | (144,386 | ) | |||||||||
| Provision (benefit) for income taxes | 29,463 | (19,415 | ) | 27,025 | (39,571 | ) | |||||||||||
| Net loss | $ | (53,755 | ) | $ | (43,695 | ) | $ | (59,926 | ) | $ | (104,815 | ) | |||||
| Basic loss per common share | $ | (1.75 | ) | $ | (1.46 | ) | $ | (1.96 | ) | $ | (3.50 | ) | |||||
| Diluted loss per common share | $ | (1.75 | ) | $ | (1.46 | ) | $ | (1.96 | ) | $ | (3.50 | ) | |||||
| Basic weighted average shares outstanding | 30,740,977 | 30,026,223 | 30,638,163 | 29,987,985 | |||||||||||||
| Diluted weighted average shares outstanding | 30,740,977 | 30,026,223 | 30,638,163 | 29,987,985 | |||||||||||||
| Liquidity Services, Inc. and Subsidiaries | |||||||||||||||||||
| Unaudited Consolidated Statements of Cash Flows | |||||||||||||||||||
| (Dollars In Thousands) | |||||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
|
Operating activities |
|||||||||||||||||||
|
Net loss |
$ | (53,755 | ) | $ | (43,695 | ) | $ | (59,926 | ) |
$ |
(104,815 |
) | |||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||||||||
| Depreciation and amortization | 1,554 | 1,994 | 6,502 | 9,235 | |||||||||||||||
| Loss on asset disposition | — | 7,963 | — | 7,963 | |||||||||||||||
| Stock compensation expense | 4,019 | 3,494 | 12,247 | 12,405 | |||||||||||||||
| Provision (benefit) for inventory allowance | 624 | (3,771 | ) | 2,676 | (575 | ) | |||||||||||||
| Provision (benefit) for doubtful accounts | 21 | (1,925 | ) | 247 | 1,109 | ||||||||||||||
| Deferred tax expense (benefit) | 28,615 | 15,863 | 26,177 | (6,282 | ) | ||||||||||||||
| Impairment of good will and long-lived assets | 18,998 | 51,176 | 18,998 | 147,414 | |||||||||||||||
| Incremental tax benefit from exercise of common stock options | 91 | 7 | 229 | 38 | |||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||
| Accounts receivable | (1,411 | ) | 4,038 | (4,408 | ) | 12,651 | |||||||||||||
| Inventory | (2,405 | ) | 8,491 | (4,776 | ) | 43,101 | |||||||||||||
| Prepaid and deferred taxes | (6,881 | ) | (34,165 | ) | 27,057 | (38,545 | ) | ||||||||||||
| Prepaid expenses and other assets | 1,759 | (761 | ) | (160 | ) | (1,499 | ) | ||||||||||||
| Accounts payable | 1,220 | (5,657 | ) | 232 | (4,534 | ) | |||||||||||||
| Accrued expenses and other | 9,244 | 1,878 | 17,151 | (18,895 | ) | ||||||||||||||
| Profit-sharing distributions payable | 208 | (174 | ) | (790 | ) | (2,228 | ) | ||||||||||||
| Customer payables | (116 | ) | (881 | ) | (901 | ) | (11,742 | ) | |||||||||||
| Other liabilities | 7,972 | 71 | 7,838 | (1,310 | ) | ||||||||||||||
| Net cash provided by operating activities | 9,757 | 3,946 | 48,393 | 43,491 | |||||||||||||||
|
Investing activities |
|||||||||||||||||||
| Cash paid in divestiture | — | (2,372 | ) | — | (2,372 | ) | |||||||||||||
| Increase in intangibles and cash paid for acquisitions | (16 | ) | (125 | ) | (62 | ) | (137 | ) | |||||||||||
| Purchases of property and equipment | (1,503 | ) | (1,941 | ) | (6,090 | ) | (7,312 | ) | |||||||||||
| Net cash used in investing activities | (1,519 | ) | (4,438 | ) | (6,152 | ) | (9,821 | ) | |||||||||||
|
Financing activities |
|||||||||||||||||||
| Proceeds from exercise of common stock options (net of tax) | 9 | (1 | ) | 9 | 106 | ||||||||||||||
| Incremental tax benefit from exercise of common stock options | (91 | ) | (7 | ) | (229 | ) | (38 | ) | |||||||||||
| Net cash provided by (used in) financing activities | (82 | ) | (8 | ) | (220 | ) | 68 | ||||||||||||
| Effect of exchange rate differences | (3,508 | ) | (223 | ) | (2,973 | ) | (871 | ) | |||||||||||
| Net increase (decrease) in cash and cash equivalents | 4,648 | (723 | ) | 39,048 | 32,867 | ||||||||||||||
| Cash and cash equivalents at beginning of the period | 129,865 | 96,188 | 95,465 | 62,598 | |||||||||||||||
|
Cash and cash equivalents at end of period |
$ | 134,513 | $ | 95,465 | $ | 134,513 |
$ |
95,465 |
|||||||||||
|
Supplemental disclosure of cash flow information |
|||||||||||||||||||
| Cash paid (received) for income taxes | $ | 35 | $ | (691 | ) | $ | (33,966 | ) |
$ |
5,678 |
|||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161117005457/en/
Source: Liquidity Services
Liquidity Services
Julie Davis, 202-467-6868 ext. 2234
Senior
Director, Investor Relations
[email protected]
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