- GMV of $163.7 million, up from $153.0 million in the prior year
- Revenue of $72.3 million, down from $86.9 million in the prior year
-
GAAP Net Loss of $(8.3) million, down from $(0.9) million in the prior
year -
Non-GAAP Adjusted EBITDA of $(4.4) million, down from $2.9 million in
the prior year - Platform Investments and Long-Term Growth Strategy Remain the Priority
WASHINGTON–(BUSINESS WIRE)–May 4, 2017–
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 second quarter ended March 31, 2017. Q2-17 results were
above the company’s guidance range for GAAP Net Loss, GAAP EPS and
Non-GAAP Adjusted EBITDA, and within the guidance range for GMV and
Non-GAAP Adjusted EPS. The company’s performance reflected an increase
in buyer demand and seller growth in our GovDeals state and local
government marketplace and strong GMV in our Network International
energy marketplace.
“We are pleased with our results this quarter which demonstrate the
advancement of our long-term transformation plan and growth strategy.
Investments in our global sales organization, enhanced service
offerings, and buyer network have resulted in continued organic growth
across our commercial and GovDeals marketplaces. Our Network
International energy marketplace GMV was up 108%, our GovDeals state and
local government marketplace GMV was up 30%, and our retail GMV was up
7% over the prior year period, demonstrating our ability to attract new
clients and expand existing relationships across our entire business,”
said Bill Angrick, chairman and chief executive officer of Liquidity
Services. “Trends in globalization and innovation are driving the need
for our sales channels and services. Moreover, our returns management
solutions are well suited to the rapid growth of online retailing which
is fueling higher product returns. Continued investments in our people,
processes, and platform will enhance the value we bring to clients as
the leading solution provider in the $100 billion reverse supply chain
market.
“Regarding our LiquidityOne transformation initiative,” continued
Angrick, “this is an exciting time as we are on the cusp of delivering a
new, mobile first e-commerce solution that will integrate our business
processes and expand our ability to provide our clients and buyers with
a streamlined user experience, enhanced functionality, and greater
access to buy and sell surplus assets on a global scale. We are busy
preparing the launch of our Network International energy marketplace on
our new e-commerce platform and ERP systems for this summer. As we
dedicate resources to this launch phase while also ramping up efforts
and resources for the subsequent marketplace launches, we anticipate
that our LiquidityOne program expenses in Q3 will exceed our average
spend over the last several quarters. We retain a strong balance sheet
and in addition to funding our platform investments we intend to invest
in new products and services that will enable us to consolidate the
large, fragmented reverse supply chain industry.”
Second Quarter Operating and Earnings Results
The company reported Q2-17 GMV, an operating measure of the total sales
value of all merchandise sold through our marketplaces during the given
period, of $163.7 million, up from $153.0 million in the prior year’s
comparable period. Revenue for Q2-17 was $72.3 million, down from $86.9
million in the prior year’s comparable period. GAAP Net loss for Q2-17
was $(8.3) million, which resulted in a diluted loss per share of
$(0.26) based on a weighted average of 31.4 million diluted shares
outstanding, down from $(0.9) million and $(0.03) respectively, in the
prior year’s comparable period. Non-GAAP adjusted net loss was $(6.6)
million or $(0.21) adjusted diluted loss per share, down from net income
of $1.1 million and $0.04 respectively, in the prior year’s comparable
period. We exited Q2-17 in a strong financial position with $116 million
in cash and a debt free balance sheet.
Non-GAAP adjusted EBITDA, which excludes stock-based compensation,
business realignment, disposal and acquisition costs, was $(4.4)
million, a decrease from the prior year’s comparable period of $2.9
million.
Comparative financial results reflect increased cost of sales and lower
margins under the new Scrap contract, the transition to the new Surplus
contract, under which we pay higher product costs, and the timing of
large sales in our commercial business in the prior year.
Additional Second Quarter Operational Results
-
Registered Buyers — At the end of Q2-17,
registered buyers totaled approximately 3,028,000 representing an
approximately 4% increase over the approximately 2,923,000 registered
buyers at the end of Q2-16. -
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 619,000 in Q2-17, an
approximately 3% decrease over the approximately 636,000 auction
participants in Q2-16. -
Completed Transactions — Completed
transactions decreased to approximately 144,000, an approximately 6%
decrease for Q2-17 from the approximately 153,000 completed
transactions in Q2-16.
GMV and Revenue Mix —The table below
summarizes GMV and revenue by pricing model.
|
GMV Mix |
||||
| Q2-FY17 | Q2-FY16 | |||
| Consignment Model: | ||||
| GovDeals | 39.3% | 32.4% | ||
| Commercial | 28.9% | 23.8% | ||
| Total Consignment | 68.2% | 56.2% | ||
| Purchase Model: | ||||
| Commercial | 17.7% | 24.7% | ||
| Surplus Contract | 9.5% | 14.3% | ||
| Total Purchase | 27.2% | 39.0% | ||
| Other: | 4.6% | 4.8% | ||
| Total | 100.0% | 100.0% | ||
|
Revenue Mix |
||||
| Q2-FY17 | Q2-FY16 | |||
| Consignment Model: | ||||
| GovDeals | 9.2% | 6.1% | ||
| Commercial | 12.6% | 11.4% | ||
| Total Consignment | 21.8% | 17.5% | ||
| Purchase Model: | ||||
| Commercial | 40.5% | 42.8% | ||
| Surplus Contract | 21.4% | 25.1% | ||
| Total Purchase | 61.9% | 67.9% | ||
| Other: | 16.3% | 14.6% | ||
| Total | 100.0% | 100% | ||
Business Outlook
FY17 results are continuing to benefit from growth in our commercial and
state and local government marketplaces as we advance our strategy to
unify our business processes, global sales organization, and e-commerce
marketplace platform. While the commercial businesses are showing
overall improvement, profitability for the year will be impacted by the
new pricing terms in our DoD Surplus and Scrap contracts, lower volumes
in our DoD Surplus contract, continued investments in the deployment of
our energy marketplace onto our new ecommerce platform, and continued
investments in the design and deployment of our new e-commerce platform
across our remaining commercial marketplaces.
Our near-term outlook remains cautious due to the higher cost of goods
sold and variable product mix under our DoD contracts, variability in
the timing of large client projects in our capital assets business,
higher cost of goods sold in selected commercial programs which may be
offset over time by volume growth, and ongoing investments in our
LiquidityOne transformation plan, which we expect to increase during the
upcoming go-live deployments of our marketplaces onto the new platform.
The following forward-looking statements reflect the following trends
and assumptions for Q3-17:
(i) increased investment spending under our LiquidityOne transformation
initiative in conjunction with the go-live deployment of our Network
International energy marketplace and new ERP system this summer;
(ii) increased cost of sales and lower volume and margins under our DoD
Surplus contract;
(iii) continued strength in our state and local government marketplace
and steady year-over-year growth;
(iv) continued signs of improved liquidity in our energy marketplace;
(v) investments in our sales teams to further accelerate the growth of
new and expanded client relationships;
(vi) mix shift to more consignment accounts in our retail business; and
(vii) new pricing under our DoD Scrap contract and continued variability
in commodities pricing, volumes received, and mix of commodities.
For Q3-17 our guidance is as follows:
GMV – We expect GMV for Q3-17 to range from
$170 million to $190 million.
GAAP Net Loss – We expect GAAP Net Loss for
Q3-17 to range from $(10.0) million to $(7.) million.
GAAP Diluted EPS – We expect GAAP diluted
Loss Per Share for Q3-17 to range from $(0.32) to $(0.22).
Non-GAAP Adjusted EBITDA –We expect
non-GAAP Adjusted EBITDA for Q3-17 to range from $(7.0) million to
$(4.0) million.
Non-GAAP Adjusted Diluted EPS – We expect
non-GAAP Adjusted Loss Per Diluted Share for Q3-17 to range from $(0.29)
to $(0.19). This guidance assumes that our diluted weighted average
number of shares outstanding for the quarter of 31.4 million and that we
will not repurchase shares during the quarter 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, and business realignment expense.
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
|
(In thousands) (Unaudited) |
||||||||||||||||
| Net loss | $ | (8,252 | ) | $ | (850 | ) | $ | (16,605 | ) | $ | (6,047 | ) | ||||
| Interest (income) expense and other expense, net | (91 | ) | (390 | ) | (102 | ) | (451 | ) | ||||||||
| (Benefit) provision for income taxes | (53 | ) | (267 | ) | 50 | (2,421 | ) | |||||||||
| Depreciation and amortization | 1,434 | 1,660 | 2,863 | 3,332 | ||||||||||||
| EBITDA | (6,962 | ) | 153 | (13,794 | ) | (5,587 | ) | |||||||||
| Stock compensation expense | 1,399 | 2,724 | 3,899 | 5,144 | ||||||||||||
| Acquisition costs | — | — | — | 39 | ||||||||||||
| Business realignment expenses* | 1,140 | — | 1,140 | — | ||||||||||||
| Adjusted EBITDA | $ | (4,423 | ) | $ | 2,877 | $ | (8,755 | ) | $ | (404 | ) | |||||
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 and acquisition
costs. Adjusted basic and diluted loss per share are determined using
Adjusted Net (Loss) Income. For Q2-17 the tax rate used to tax effect
stock compensation expense and acquisition costs was 33.2% compared to
28.6% used for the Q2-16 results. The 33.2% tax rate excludes the impact
of the charge to our U.S. valuation allowance to provide a better
comparison to the Q2-16 results.
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
|
(In thousands)
(Unaudited) |
|||||||||||||||||
| Net loss | $ | (8,252 | ) | $ | (850 | ) | $ | (16,605 | ) | $ | (6,047 | ) | |||||
| Stock compensation expense (net of tax) | 935 | 1,945 | 2,605 | 3,673 | |||||||||||||
| Acquisition costs (net of tax) | — | — | — | 28 | |||||||||||||
| Business realignment expenses (net of tax)* | 762 | — | 762 | — | |||||||||||||
| Adjusted net income (loss) | (6,555 | ) | 1,095 | (13,238 | ) | (2,346 | ) | ||||||||||
| Adjusted basic earnings per common share | $ | (0.21 | ) | $ | 0.04 | $ | (0.42 | ) | $ | (0.08 | ) | ||||||
| Adjusted diluted earnings per common share | $ | (0.21 | ) | $ | 0.04 | $ | (0.42 | ) | $ | (0.08 | ) | ||||||
| Basic weighted average shares outstanding | 31,361,122 | 30,594,940 | 31,310,816 | 30,542,520 | |||||||||||||
| Diluted weighted average shares outstanding | 31,361,122 | 30,594,940 | 31,310,816 | 30,542,520 | |||||||||||||
*Business realignment expenses are included within the Other
operating expense line item in the Consolidated Statements of Operations.
Conference Call
The Company will host a conference call to discuss the second quarter of
fiscal year 2017 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 9037971. A live web cast of the conference call will be provided
on the Company’s investor relations website at http://investors.liquidityservices.com.
An archive of the web cast will be available on the Company’s website
until May 3, 2018 at 11:59 p.m. ET. An audio replay of the
teleconference will also be available until May 11, 2017 at 11:59 p.m.
ET. To listen to the replay, dial (855) 859-2056 or (404) 537-3406 and
provide conference identification number 9037971. 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.
We are not providing a reconciliation of our guidance for Non-GAAP
Adjusted EBITDA to our guidance for GAAP Net Loss because this
reconciliation would require us to make projections regarding the amount
of stock based compensation expense and benefit for income taxes, which
are reconciling items between net loss and Adjusted EBITDA, as well as
the impact of foreign currency fluctuations. These items will impact net
income and are out of our control and/or cannot be reasonably predicted
due to their high variability and complexity, and inherent uncertainty.
For example, equity compensation expense would be difficult to predict
because it depends on our future hiring and retention needs, as well as
the future fair market value of our common stock, all of which are
subject to constant change. As a result, the reconciliation is not
possible without unreasonable efforts. In addition, we believe such
reconciliations could imply a degree of precision that might be
confusing or misleading to investors. The actual effect of the
reconciling items that we exclude from Adjusted EBITDA, when determined,
may be significant to the calculation of GAAP Net Loss. As a result,
there can be no assurance that such reconciling items will not
materially affect our future GAAP Net Loss.
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; the Company’s proprietary e-commerce
marketplace platform; expected investments in sales teams; expected
investment in, benefits of and timing of completion of the LiquidityOne
transformation initiative; the pricing, the supply and mix of inventory
under the DoD Scrap Contract; expected future commodity prices; expected
future effective tax rates; the timing of large client projects; and
trends and assumptions about future periods, including the third 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; costs and timing of the wind-down
of our Truckcenter business; 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) 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.
The company employs innovative e-commerce marketplace solutions to
manage, value and sell inventory and equipment for business and
government clients. Our superior service, unmatched scale and ability to
deliver results enable us to forge trusted, long-term relationships with
over 10,000 clients worldwide. With nearly $7 billion in completed
transactions, and 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 and Subsidiaries |
||||||||
|
Unaudited Consolidated Balance Sheets |
||||||||
|
(Dollars in Thousands) |
||||||||
| March 31, 2017 | September 30, 2016 | |||||||
| (Unaudited) | ||||||||
|
Assets |
||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 116,110 | $ | 134,513 | ||||
|
Accounts receivable, net of allowance for doubtful accounts of |
12,070 | 10,355 | ||||||
| Inventory | 22,476 | 27,610 | ||||||
| Tax refund receivable | 1,335 | 1,205 | ||||||
| Prepaid taxes | 2,433 | 2,166 | ||||||
|
Prepaid expenses and other current assets ($1.2 million and $2.2 |
9,807 | 9,063 | ||||||
| Total current assets | 164,231 | 184,912 | ||||||
| Property and equipment, net | 16,105 | 14,376 | ||||||
| Intangible assets, net | 1,912 | 2,650 | ||||||
| Goodwill | 44,876 | 45,134 | ||||||
| Deferred long-term tax assets | 1,021 | 1,021 | ||||||
| Other assets | 11,882 | 12,016 | ||||||
| Total assets | $ | 240,027 | $ | 260,109 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 12,570 | $ | 9,732 | ||||
| Accrued expenses and other current liabilities | 34,213 | 45,133 | ||||||
| Distributions payable | 4,738 | 1,722 | ||||||
| Customer payables | 27,847 | 28,901 | ||||||
| Total current liabilities | 79,368 | 85,488 | ||||||
| Deferred taxes and other long-term liabilities | 10,909 | 12,010 | ||||||
| Total liabilities | 90,277 | 97,498 | ||||||
| Commitments and contingencies (Note 11) |
|
|
||||||
| Stockholders’ equity: | ||||||||
|
Common stock, $0.001 par value; 120,000,000 shares authorized; |
29 | 29 | ||||||
| Additional paid-in capital | 224,327 | 220,192 | ||||||
| Accumulated other comprehensive loss | (8,962 | ) | (8,571 | ) | ||||
| Retained earnings (accumulated deficit) | (65,644 | ) | (49,039 | ) | ||||
| Total stockholders’ equity | 149,750 | 162,611 | ||||||
| Total liabilities and stockholders’ equity | $ | 240,027 | $ | 260,109 | ||||
|
Liquidity Services and Subsidiaries |
||||||||||||||||
|
Unaudited Consolidated Statements of Operations |
||||||||||||||||
|
(Dollars in Thousands, Except Per Share Data) |
||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue | $ | 52,415 | $ | 66,423 | $ | 100,395 | $ | 116,608 | ||||||||
| Fee revenue | 19,920 | 20,455 | 42,736 | 36,145 | ||||||||||||
| Total revenue | 72,335 | 86,878 | 143,131 | 152,753 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of goods sold (excluding amortization) | 34,564 | 39,927 | 66,835 | 66,810 | ||||||||||||
| Client distributions | 4,960 | 2,506 | 9,508 | 4,863 | ||||||||||||
| Technology and operations | 21,075 | 24,678 | 42,968 | 47,486 | ||||||||||||
| Sales and marketing | 9,149 | 9,148 | 19,136 | 18,608 | ||||||||||||
| General and administrative | 8,230 | 10,466 | 18,087 | 20,534 | ||||||||||||
| Depreciation and amortization | 1,434 | 1,660 | 2,863 | 3,332 | ||||||||||||
| Acquisition costs | — | — | — | 39 | ||||||||||||
| Total costs and expenses | 79,412 | 88,385 | 159,397 | 161,672 | ||||||||||||
| Other operating expense | 1,319 | — | 391 | — | ||||||||||||
| Loss from operations | (8,396 | ) | (1,507 | ) | (16,657 | ) | (8,919 | ) | ||||||||
| Interest (income) expense and other expense, net | (91 | ) | (390 | ) | (102 | ) | (451 | ) | ||||||||
| Loss before (benefit) provision for income taxes | (8,305 | ) | (1,117 | ) | (16,555 | ) | (8,468 | ) | ||||||||
| (Benefit) provision for income taxes | (53 | ) | (267 | ) | 50 | (2,421 | ) | |||||||||
| Net loss | $ | (8,252 | ) | $ | (850 | ) | $ | (16,605 | ) | $ | (6,047 | ) | ||||
| Basic and diluted loss per common share | $ | (0.26 | ) | $ | (0.03 | ) | $ | (0.53 | ) | $ | (0.20 | ) | ||||
| Basic and diluted weighted average shares outstanding | 31,361,122 | 30,594,940 | 31,310,816 | 30,542,520 | ||||||||||||
|
Liquidity Services and Subsidiaries |
||||||||
|
Unaudited Consolidated Statements of Cash Flows |
||||||||
|
(Dollars In Thousands) |
||||||||
| Six Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (16,605 | ) | $ | (6,047 | ) | ||
|
Adjustments to reconcile net loss to net cash (used) provided by operating activities: |
||||||||
| Depreciation and amortization | 2,863 | 3,332 | ||||||
| Stock compensation expense | 3,899 | 5,144 | ||||||
| Provision for inventory allowance | 4,636 | 1,399 | ||||||
| Provision for doubtful accounts | (150 | ) | 86 | |||||
| Deferred tax benefit | — | (2,421 | ) | |||||
| Incremental tax benefit from exercise of common stock options | — | 213 | ||||||
| Impairment of intangible assets | 142 | — | ||||||
| Change in fair value of financial instruments | (749 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,566 | ) | (1,085 | ) | ||||
| Inventory | 498 | (8,075 | ) | |||||
| Prepaid and deferred taxes | (53 | ) | 34,641 | |||||
| Prepaid expenses and other assets | (204 | ) | (1,509 | ) | ||||
| Accounts payable | 2,838 | (718 | ) | |||||
| Accrued expenses and other current liabilities | (11,299 | ) | 2,866 | |||||
| Distributions payable | 3,016 | (1,008 | ) | |||||
| Customer payables | (1,055 | ) | (2,040 | ) | ||||
| Other liabilities | (564 | ) | (79 | ) | ||||
| Net cash (used) provided by operating activities | (14,353 | ) | 24,699 | |||||
| Investing activities | ||||||||
| Increase in intangibles | (41 | ) | (35 | ) | ||||
| Purchases of property and equipment, including capitalized software | (3,959 | ) | (2,723 | ) | ||||
| Net cash used in investing activities | (4,000 | ) | (2,758 | ) | ||||
| Financing activities | ||||||||
| Proceeds from exercise of common stock options (net of tax) | 79 | — | ||||||
| Incremental tax benefit from exercise of common stock options | — | (213 | ) | |||||
| Net cash provided (used) by financing activities | 79 | (213 | ) | |||||
| Effect of exchange rate differences on cash and cash equivalents | (129 | ) | 335 | |||||
| Net (decrease) increase in cash and cash equivalents | (18,403 | ) | 22,063 | |||||
| Cash and cash equivalents at beginning of period | 134,513 | 95,465 | ||||||
| Cash and cash equivalents at end of period | $ | 116,110 | $ | 117,528 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid (received) for income taxes, net | $ | 193 | $ | (34,652 | ) | |||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170504005514/en/
Source: Liquidity Services
Liquidity Services
Julie Davis, 202.467.6868 ext. 2234
Senior
Director, Investor Relations
[email protected]
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